Zangge Mamicuo lithium project secures mining licence in Tibet

Mamicuo Li

Zangge Mamicuo lithium project secured a mining licence in Tibet. The approval clears a path to salt-lake production. Zangge Mamicuo lithium project now targets a 50,000 t/yr first phase. Therefore, Zangge Mamicuo lithium project advances toward near-term construction.

Licence scope and resources

The licence covers 115.36km² and includes lithium, boron, and potassium. Proven resources total 2.1774mn t LCE. Zangge holds a 26.95% stake in the asset. The permit was issued on 15 July and runs to 30 April 2030.

Build plan, power needs, and portfolio moves

Zangge will start constructing a 50,000 t/yr lithium carbonate plant in Q3. Construction should take nine to twelve months. Phase two adds 50,000–80,000 t/yr after full ramp. However, power reliability will determine second-phase timing. Meanwhile, Zangge produces lithium carbonate at Qarhan, with 2024 output of 11,566t. The company plans stakes in Jiezechaka and Longmucuo projects. It will acquire 39% of Tibet Guoneng Mining for 4.68bn yuan. As a result, integrated assets could strengthen China’s battery materials supply.

The Metalnomist Commentary

This licence elevates Tibet’s role in China’s brine-based lithium strategy. Execution now hinges on power stability and brine processing performance. Watch phase-two timing, capex discipline, and offtake alignment with cathode makers.

China zirconium sponge prices set to ease as costs fall and demand slows

Zirconium Sponge

China zirconium sponge prices are likely to fall through the third quarter. Producers see weaker spot buying from acetic acid users. Therefore, China zirconium sponge prices face pressure despite steady contract deliveries.

Producers adjust output and pricing

Liaoning Huagao maintains normal runs to serve long-standing Q3 contracts. The firm expects softer spot values ahead. Meanwhile, Citic Jinzhou sells inventory and keeps output curtailed. Chaoyang Orient lowers run rates and moved small lots at Yn150/kg. It focuses on 2024 nuclear-grade sponge contracts with overseas customers. BaoTi Huashen accepted lower bids recently and sold Q3 tons at Yn155/kg. As a result, China zirconium sponge prices reflect defensive producer strategies.

Downstream softness tightens the market balance

Demand from zirconium mill products remains tepid this year. At the same time, acetic acid sector buying has slowed noticeably. About 65-70pc of zirconium goes to mill products, with 30-35pc to acetic acid. The mix amplifies price sensitivity when either segment weakens. Only a limited group produces sponge in China, concentrating supply dynamics. Operators include Chaoyang Orient, BaoTi Huashen, Citic Jinzhou, and Liaoning Huagao. Therefore, any run-rate changes can move sentiment quickly. China zirconium sponge prices could soften further if Q3 inquiries lag.

The Metalnomist Commentary

The near-term tone stays bearish until acetic acid orders stabilize. Watch producer run-rate guidance and tender frequency for a floor. Contracted nuclear-grade volumes may cushion declines but won’t lift spot alone.

China molybdenum concentrate output rises on alloy demand in 1H

Molybdenum

China molybdenum concentrate output increased in the first half. China molybdenum concentrate output reached 67,568t, up 4.2 percent year on year. Strong ferro-moly purchases by steelmakers supported higher operating rates.

Demand lifts production despite softer steel sentiment

Steelmakers bought 75,000–76,000t of ferro-moly in 1H. That was about 10 percent higher than last year. As a result, producers raised runs and stabilized supply. China molybdenum concentrate output therefore tracked end-use alloy demand. Procurement for stainless and high-strength steels underpinned volumes.

June dip masks regional divergence

June production fell to 10,550t, down month on month and year on year. Planned maintenance at several mines drove the decline. However, Henan limited the pullback with 3,335t in June. Output there slipped 0.8 percent from May but rose 6.3 percent year on year. Meanwhile, Heilongjiang dropped to 891t, sharply lower on both bases. Shaanxi and Inner Mongolia produced 1,208t and 1,530t, also softer year on year.

Outlook: supply steadies as maintenance eases

Producers expect steadier runs as maintenance programs end. Therefore, China molybdenum concentrate output should align with alloy offtake. Watch ferro-moly tender volumes and spot premiums for direction. Substitution risk remains low given performance needs in critical steels.

The Metalnomist Commentary

Moly demand remains tethered to high-spec steel orders, not broad steel cycles. Regional variability matters: Henan’s resilience offsets northern softness. Pricing will track ferro-moly tenders and mine maintenance cadence into Q3.

Chinalco copper anode production rises as Dianzhong smelter adds capacity

Chinalco Copper Mining

Chinalco copper anode production is rising after a second furnace start-up. Chinalco copper anode production expands at the Dianzhong smelter in Yunnan. The upgrade replaces two older furnaces and modernizes operations. The project positions Chinalco for stronger domestic copper supply.

Capacity expansion at Yunnan’s Dianzhong smelter

The smelter will lift anode capacity from 191,700 t/yr to 249,800 t/yr. The first new furnace started in January; the second now enters service. A new refining facility adds 210,000 t/yr of copper cathode capacity. These upgrades enhance reliability and throughput for downstream customers.

Secondary copper strategy and cathode output

Each furnace includes a copper scrap feeding facility for higher recycling rates. This supports cathode output as concentrate supplies remain tight. Scrap supplied nearly 20% of global refined copper in 2024. China encourages more secondary copper use and new recycling capacity. Chinalco copper anode production will benefit from secure scrap sourcing.

The Metalnomist Commentary

Dianzhong’s phased upgrade aligns with China’s push for secondary copper. We expect improved margins from scrap blending and lower TC/RC exposure. Watch scrap import flows and cathode qualification as capacity ramps.

JLM Baotou magnet expansion accelerates global NdFeB supply

Magnetic Metals

JLM Baotou magnet expansion advances phase-3 construction to meet booming demand. JLM Baotou magnet expansion will add 20,000 t/yr of high-performance magnets. JLM Baotou magnet expansion lifts total Baotou capacity to 40,000 t/yr by end-2025.

Capacity and timeline

JLM is investing 1.05bn yuan to build phase-3 in Baotou. The plant targets start-up before the end of 2025. Meanwhile, current Baotou capacity stands at 20,000 t/yr across two phases. Ganzhou adds another 15,000 t/yr of permanent magnets. As a result, group capacity reaches 35,000 t/yr today. The company aims for 60,000 t/yr by 2027.

Demand drivers and export access

China’s NEV boom is stretching magnet supply across platforms. Production reached 6.97 million units in January–June. Sales climbed 40% year on year in the same period. Consequently, magnet demand from NEVs, inverters, and robotics remains strong. Policy support should sustain growth into 2025. JLM also secured permits to ship to the US, Europe, and Southeast Asia. Therefore, Baotou will anchor exports while serving domestic leaders.

The Metalnomist Commentary

Phase-3 cements Baotou as a top NdFeB hub with global reach. Watch qualification lead times, heavy-REE thrift, and yield as volumes scale. Pricing discipline will hinge on EV cadence and competing capacity ramps.

Inner Mongolia rare earth developments accelerate Baotou’s magnet and feedstock dominance

China’s Inner Mongolia Mining

Inner Mongolia rare earth developments accelerate China’s magnet and feedstock capacity in Baotou. Output capacity for rare earth new materials nears 300,000 tonnes per year. As a result, the region becomes China’s largest comprehensive production base. Producers also expand upstream supplies to match downstream investments.

Magnet manufacturing surge in Baotou

Baotou anchors magnet manufacturing scale and technology leadership. Ten of China’s top fifteen magnet plants operate in the city. Combined nameplate exceeds 159,000 tonnes per year. Actual magnet output rose 34.5% to 75,000 tonnes in 2024.

Jinli Magnet adds a third phase, lifting output to 40,000 tonnes per year. It becomes the largest single-site NdFeB producer globally. Grain boundary penetration reduces heavy rare earth consumption below industry averages. JLM supplies BYD and partners strategically with Goldwind. Wolong commissioned China’s largest permanent magnet motor plant in March 2025. It can produce NEV, low-speed high-power, and wind turbine motors. Ande Xinai started a 120,000 tonne refractory plant using 6,000 tonnes of La and Ce.

Feedstock expansion and exchange liquidity

Inner Mongolia rare earth developments also transform feedstock and market infrastructure. The Baotou Rare Earths Exchange traded 77,000 tonnes REO from January to May 2025. Turnover reached 5.8 billion yuan with 1,103 registered enterprises. Northern Rare Earth holds 44.56% and leads integrated expansion.

NRE’s Huamei plant began phase one in October 2024. It adds 106,661 t per year extraction and separation capacity. It processes 198,000 t per year mixed concentrate, or 115,018 t REO equivalent. Precipitation and crystallisation capacity totals 141,070 t per year. Burning capacity reaches 39,600 t per year. NRE starts phase two construction in the second half of 2025. This complex will become the world’s largest rare earth feedstock base.

Therefore, Inner Mongolia rare earth developments underpin magnets, motors, and catalysts growth. Downstream buyers should expect improved availability, yet watch pricing discipline.

The Metalnomist Commentary

Inner Mongolia is building a full-stack advantage from concentrate to motors. Success depends on yield, heavy-REE thrift, and environmental compliance. Watch contract terms and qualification timelines for high-performance magnets.

Hunan lithium resource discovery lifts China’s LCE outlook

Hunan lithium

Revised deposit metrics and strategic context

The Hunan lithium resource discovery adds a 49mn-tonne lepidolite deposit in Linwu. Authorities estimate 1.31mn t lithium oxide, or 3.24mn t LCE. The ore also contains rubidium, tungsten, and tin. Therefore, the Hunan lithium resource discovery broadens China’s battery raw material base.

Revised national resources and project pipeline

China’s lithium resource estimate now stands at 16.5% of global resources. Revisions reflect new finds in Sichuan, Xinjiang, Qinghai, Jiangxi, Inner Mongolia, and Hunan. Meanwhile, officials still rank China second globally, behind Bolivia. As a result, the Hunan lithium resource discovery strengthens supply diversification across provinces.

Dazhong Mining investments and timeline

Inner Mongolia Dazhong Mining is building integrated mining and processing in Hunan. The 16bn-yuan plan includes ore, lithium carbonate, CAM, and battery plants. Phase one targets 10mn t per year ore and 20,000 t per year lithium carbonate in 2026. Additionally, Dazhong owns the Jiada spodumene asset in Sichuan with 1.48mn t LCE.

This discovery could influence lepidolite processing economics and domestic supply security. Granite-type lepidolite requires energy, reagents, and recovery optimization. However, co-products may offset costs and improve project viability. Therefore, downstream cathode producers could hedge against imported feedstock volatility.

The Metalnomist Commentary

Large lepidolite resources can reshape China’s midstream flexibility if recoveries scale competitively. Execution will hinge on beneficiation yields, reagent costs, and ESG standards. Watch Dazhong’s commissioning cadence and LCE conversion routes through 2026.

MMP nickel matte supply to China rises with new East Kalimantan smelter

Mitra Murni Perkasa

MMP nickel matte supply to China will increase after production began on 26 June. Indonesia’s first domestically owned nickel producer started high-grade nickel matte in Kariangau. The RKEF smelter is designed for 28,000 t per year of HGNM. The nickel content exceeds 70 percent, above typical Indonesian grades.

Capacity, technology, and upstream integration

MMP nickel matte supply to China benefits from fully domestic funding and ownership. The project supports Indonesia’s battery supply-chain ambitions and energy transition goals. Chinese EPC firm ENFI built the plant under a 2023 agreement. ENFI is also constructing a 52,000 t per year HGNM project for Posco. Therefore, regional engineering depth should aid reliability and ramp-up.

Market context, pricing, and feedstock choices

China imported about 194,641 t of nickel matte in January–May, up 42 percent year on year. Indonesia supplied roughly 85.6 percent of those volumes. However, offers paused in June amid thin margins, then resumed in early July. Downstream users still view MHP as more cost-effective than HGNM. As a result, smelter premiums will track rival feedstock economics.

MMP nickel matte supply to China could stabilize feed for converters and battery precursors. Meanwhile, higher HGNM grade may improve unit transport and refining economics. Yet pricing must compete with MHP and intermediates tied to sulfate routes. Therefore, offtake terms and sulfuric acid balances will be closely watched.

The Metalnomist Commentary

MMP adds a domestically funded node to Indonesia’s nickel value chain and China’s feed security. The commercial test will be margins versus MHP and contract flexibility. Watch ENFI’s execution, blending strategies, and delivered costs into coastal China.

Huayang aluminium smelter to launch in Shanxi by 2026

Huayang

The Huayang aluminium smelter will start in Yangquan, Shanxi, by September 2026. Huayang will develop the project in two phases totaling 394,000 t per year. Phase one begins construction in September 2025 and launches a year later. The first phase will add 294,000 t per year of new capacity.

Capacity and timeline

The Huayang aluminium smelter expands China’s primary aluminium footprint in a key resource base. Shanxi holds large bauxite reserves and strong alumina output. Therefore, the smelter should access stable feedstock and logistics. Meanwhile, the complete design targets 394,000 t per year across two stages.

Feedstock, technology, and market impact

The Huayang aluminium smelter will adopt 600 kA electrolytic baths. This technology offers high efficiency and lower specific energy use. As a result, unit costs and emissions intensity could improve. Shanxi’s integrated chain should further enhance reliability and working capital.

Regional supply will tighten competition for power and contracts. However, phased commissioning reduces operational risk during ramp-up. Therefore, downstream buyers may secure term volumes early. Market participants will track energy pricing and carbon metrics closely.

The Metalnomist Commentary

Huayang’s phased build balances speed with risk control in a feedstock-rich province. If 600 kA lines deliver as planned, cost and carbon performance should strengthen. Watch power tariffs, carbon policy, and start-up curves through 2026–2027.

Guibao silicon-carbon anode capacity expands with Sichuan second phase

Chengdu Guibao Science

Guibao silicon-carbon anode capacity expands as the firm builds a second phase in Sichuan. The Meishan plant adds 3,000 t per year by December 2025. The first 1,000 t per year phase started in April 2023. Guibao silicon-carbon anode capacity could reach 11,000 t per year with phase three. However, the 7,000 t per year third phase depends on market conditions.

Timeline, scale, and technology

Site construction on phase two began in September 2024. Commissioning is targeted by end-December 2025, pending qualification. Guibao remains Asia’s largest high-end silicone sealant producer. It operates 370,000 t per year of sealant capacity. Therefore, cashflow supports capital spending and start-up risk.

Silicon-carbon anodes promise far higher specific capacity than graphite. Theoretical capacity reaches about 4,200 mAh per gram. This is roughly ten times typical graphite anode capacity. However, swelling and cycle life require careful design and binders. As a result, customer qualification remains the pacing item.

Competitive landscape and demand outlook

Industry demand for silicon anodes could reach 100,000 tonnes by 2030. Large cylindrical cells and high-nickel prismatic formats drive growth. Peer capacity is also rising across China. Beijing Lirr backed a 10,000 t per year Hubei project for 2025. Putailai started trial production in Anhui at 12,100 t per year. That includes 10,000 t silicon-carbon and 2,100 t silicon oxide lines.

Guibao silicon-carbon anode capacity positions the firm for EV and storage demand. Meanwhile, phase three offers optionality if orders accelerate. Therefore, execution must balance cost, yield, and OEM timelines.

The Metalnomist Commentary

Guibao’s staged build limits risk while capturing early silicon-anode adoption. Watch qualification wins with leading cell makers and swelling mitigation progress. Pricing and graphite substitution rates will determine margin durability.

Heungkong Wanji gallium smelter planned in Henan to boost semiconductor supply

Luoyang Heungkong Wanji

Heungkong Wanji gallium smelter will add 60 t per year in Henan. The plant will sit inside a 1.2mn t/yr alumina complex. Local authorities opened an environmental review on 11 June. The company has not announced a commissioning date.

China’s alumina producers are accelerating gallium projects to capture value. Prices jumped in 2022 with EV magnet demand. Export controls since August 2023 also reshaped supply strategies. Therefore, producers see strategic and commercial incentives to scale.

Capacity wave and competitive landscape

A capacity wave is building across Guizhou and beyond. Guizhou Haihao launched 50 t per year in September 2024. Guizhou Huajin added another 50 t per year last November. Guizhou Galuminium started a 40 t per year line in 2022. Guizhou Qiya is adding 20 t per year to reach 60 t. Minor metals producer Vital opened an 80 t per year plant in 2025. Together, these projects signal rising domestic supply.

Market implications and policy context

Rising capacity could pressure prices while improving availability for downstream users. However, export licensing can still influence trade flows. Integrated alumina sites reduce unit costs for gallium recovery. Therefore, the Heungkong Wanji gallium smelter may gain cost advantage. Meanwhile, global buyers seek stable sources for semiconductors and power electronics.

The Metalnomist Commentary

This project adds another pillar to China’s gallium-by-alumina strategy. Execution will hinge on recovery yields, product specs, and permitting pace. Watch how export policy interacts with a fast-rising domestic capacity base.

Ganfeng takes full control of Mali Lithium

Mali Lithium

Deal terms and strategic rationale

Ganfeng takes full control of Mali Lithium after buying the remaining 40% for $342.7mn. The seller was Australia’s Leo Lithium. The move consolidates ownership of the Goulamina lithium mine. Therefore, governance and execution will now follow a single operator. Ganfeng takes full control of Mali Lithium to secure upstream supply.

Ganfeng previously paid $138mn for 55% in September 2023. It added 5% for $65mn in January 2024. As a result, the company now holds 100% equity. This sequence reflects disciplined pacing in volatile lithium markets.

Project status and global supply outlook

The Goulamina resource totals 7.14mn t LCE at 1.37% Li₂O grade. Phase one construction began in 2022 with 506,000 t/y capacity. Production started in December 2024 and continues to ramp. The second phase targets 1mn t/y of spodumene. However, the timeline for phase two remains undisclosed.

Ganfeng completed its first Goulamina concentrate shipment on 24 June. The cargo is en route to China, arriving in early August. Meanwhile, group chemical output reached 130,253 t LCE in 2024. That figure rose 25% year over year.

The portfolio also includes Cauchari-Olaroz in Argentina. Nameplate capacity stands at 40,000 t/y of lithium carbonate. Output jumped to 25,400 t in 2024 from 6,000 t in 2023. It is expected to reach 30,000–35,000 t in 2025.

Ganfeng takes full control of Mali Lithium to align mine, shipping, and conversion. Therefore, integrated volumes should improve cost visibility and contract flexibility. However, execution will still hinge on phase-two clarity and logistics.

The Metalnomist Commentary

Full ownership removes JV complexity and accelerates decision-making at Goulamina. The heavy tilt toward spodumene supply strengthens Ganfeng’s conversion optionality in China. Watch phase-two scheduling, shipping cadence, and carbonate/hydroxide price spreads through 2026.

Ronbay sodium-ion battery cathode project breaks ground in Hubei

Ronbay

Ronbay sodium-ion battery cathode project construction has started in Hubei today. The 6,000 t per year line represents a 1.2bn yuan investment. However, the company has not disclosed a commissioning date.

Ronbay sodium-ion battery cathode project expands a diversified CAM portfolio. The firm already produces NCM, LMFP, and sodium-ion CAM. Meanwhile, high-nickel NCM remains the company’s core product.

Capacity roadmap and demand outlook

Output reached 137,351 t in 2024, up 34% year on year. Ronbay plans 130,000–150,000 t of CAM in 2025. In 2023, it committed 3bn yuan for 50,000 t per year by 2026.

The company booked a 3,000 t sodium-ion cathode order this year. Global sodium-ion demand may reach 23 GWh in 2025. As a result, two- and three-wheelers and storage will drive early volumes.

Commercial implications for sodium-ion batteries

Sodium-ion batteries promise cost and safety advantages versus LMFP. Resource abundance lowers raw-material risk and improves scalability. Therefore, the Ronbay sodium-ion battery cathode project targets mass-market applications.

Hubei offers logistics access and supplier depth for scale-up. However, customer qualification and procurement cycles may slow adoption. Consequently, initial shipments should concentrate on mobility and stationary storage.

The Metalnomist Commentary

The Ronbay sodium-ion battery cathode project signals prudent hedging beyond lithium-based chemistries. Execution will hinge on qualification wins, cost curves, and timely ramp at both 6,000 t and 50,000 t assets.

China blocks stibnite ore shipment disrupts US Antimony supply

China Stibnite

Chinese customs action forced a 50t cargo back to Australia. The China blocks stibnite ore shipment after an 82-day hold in Ningbo-Zhoushan. As a result, US Antimony’s Mexico restart faces fresh feedstock risk. The China blocks stibnite ore shipment halted ore bound for Manzanillo and the Madero smelter.

Supply chain and pricing impact

US Antimony valued the two containers at $715,413, or $14,308/t. Therefore, the China blocks stibnite ore shipment directly removes high-value stibnite from near-term runs. Meanwhile, antimony is vital for flame retardants, defense uses, and lead-acid batteries. Tightness could widen if alternative concentrates lag.

The company operates North America’s only antimony smelters. However, longer hauls and re-booking raise logistics and financing costs. Downstream alloy and chemicals buyers should review safety stocks. Traders may prefer multi-origin tenders to limit single-port risk.

Regulatory and logistics factors

China suspended antimony exports to the US in December. Therefore, transshipment through Chinese ports adds regulatory exposure. Evergreen Shipping routed the cargo through China, triggering the hold. The carrier’s deviation underscores how routing choices shape compliance risk.

Refiners now reassess routing via neutral hubs. In the near term, Mexico feed could rely on direct sailings. Operators should hard-code “no PRC transshipment” clauses. They also should insure for customs detentions and export-control delays.

The Metalnomist Commentary

This episode shows midstream fragility when critical ores transit regulatory chokepoints. Expect tighter contract language, diversified routes, and premiums for assured delivery outside China’s logistics sphere. Buyers should secure multi-origin stibnite supply before peak seasonal demand.

Indonesia-China EV battery joint venture to start output by 2026

PT AnekaTambang

Indonesia-China EV battery joint venture is set to start operations in 2026, marking a milestone in Southeast Asia’s battery industry. PT Aneka Tambang (Antam) and CATL are leading the $5.9bn project, which will significantly expand Indonesia’s role in global EV supply chains. The Indonesia-China EV battery joint venture aims for 15GWh capacity by 2028, supporting up to 300,000 EVs annually.

A $5.9bn integrated ecosystem for battery materials

The joint venture begins with a 6.9GWh capacity, expanding to 15GWh by 2028. Additionally, officials highlighted potential integration with solar panel battery storage, raising capacity to 40GWh. Most of the investment—around $4.7bn—will fund nickel smelters, mining, and precursor plants in North Maluku. Meanwhile, the battery cell project in West Java accounts for $1.2bn of the total budget.

Indonesia’s mineral advantage meets China’s battery expertise

Indonesia holds abundant nickel, cobalt, and manganese, essential for EV batteries, but lacks lithium and advanced technology. Therefore, Antam partnered with CATL to secure the expertise and technology required. By 2026, smelting and hydrometallurgy plants, alongside a nickel-cobalt-manganese precursor facility, are expected to strengthen Indonesia’s midstream value chain. This partnership underscores a growing alignment between Indonesia’s resource base and China’s global battery leadership.

Energy independence and EV market expansion

The Indonesia-China EV battery joint venture could supply batteries for 300,000 EVs annually, potentially reducing fuel imports by 300,000 kilolitres per year. President Prabowo stated that Indonesia could reach full energy self-sufficiency within five to seven years, provided battery production grows to 100GWh annually. As a result, Indonesia is positioning itself not just as a raw material supplier but as an integrated EV hub.

The Metalnomist Commentary

Indonesia’s partnership with CATL cements its role in the global EV battery supply chain. However, success depends on infrastructure, environmental safeguards, and balancing resource nationalism with foreign investment. If executed effectively, Indonesia could become a strategic alternative to China-dominated supply routes.

China Rare Earth Group management changes: CREG defends leadership reshuffle

China Rare Earth Group

China Rare Earth Group management changes drew a rare public defense from CREG. The company said the reshuffle improves governance and retains executives in other roles. However, China Rare Earth Group management changes arrive as Beijing tightens rare earth export controls.

Why the reshuffle matters to global rare earth supply

CREG framed the moves as corporate governance optimization, not disruption. Meanwhile, rumors followed multiple senior resignations in recent months. The firm warned it may pursue action against false market claims. Therefore, China Rare Earth Group management changes seek stability during an industry flashpoint.

Export controls and consolidation reshape market power

China expanded export controls on several medium and heavy rare earths and magnets. As a result, pricing and allocation risks have risen for overseas buyers. CREG and state-owned NRE now oversee most domestic mining quotas. Consequently, China Rare Earth Group management changes intersect with rising state-led consolidation.

CREG emerged in 2021 to concentrate heavy rare earth resources. The group anchors China’s dominant refining capacity across NdPr, Dy, and Tb. Market participants now watch policy, quotas, and magnet supply for signals. Therefore, procurement teams should diversify sources and reinforce strategic inventories.

The Metalnomist Commentary

CREG’s message aims to steady nerves while policy tools tighten market leverage. Governance clarity can temper speculation, but export controls keep risk elevated. Buyers should hedge exposure with multi-region offtakes and recycling initiatives.

Tesla Builds First Grid-Scale Battery Storage Plant in China

Tesla Battery Storage

Tesla Expands Megapack Deployment with China Project

Tesla has announced plans to build its first grid-scale battery storage plant in China, leveraging its advanced Megapack battery system. The project, worth 4bn yuan ($560mn), is a partnership with China Kangfu International Leasing and Shanghai's local government. Once operational, the facility will become China’s largest grid-scale battery storage station.

Tesla began producing Megapacks at its Shanghai gigafactory earlier this year. With an annual capacity of 10,000 units — equal to 40GWh — the plant can support large-scale energy storage demand. Each Megapack stores 3.9MWh, enough to power 3,600 homes for one hour.

Growing Role of China in Tesla’s Energy Strategy

Tesla shipped more than 100 Megapacks from Shanghai in the first quarter, primarily to Europe and Oceania. The Shanghai factory complements its 40 GWh/yr facility in California, reinforcing Tesla’s dual-continent approach to scaling energy storage.

Global demand for energy storage continues to rise, driven by renewable integration and declining costs. According to Chinese research institute EV Tank, shipments of storage batteries are projected to climb to 1,550GWh by 2030. This positions Tesla to capitalize on exponential growth in both the Chinese and international markets.

The Metalnomist Commentary

Tesla’s move to build a grid-scale battery storage plant in China highlights its strategy to dominate global energy storage. By localizing production and deployment, Tesla strengthens its foothold in the world’s largest energy transition market. However, its reliance on China also exposes it to potential policy and geopolitical risks.

Xiamen Tungsten Expands NdFeB Magnet Production in Baotou

Xiamen Tungsten

First Phase Production Begins in Inner Mongolia

Chinese state-owned Xiamen Tungsten has officially started the first phase of production at its neodymium-iron-boron (NdFeB) magnet facility in Baotou, Inner Mongolia. Operated by its subsidiary Baotou Golden Dragon, the 5,000 t/yr facility required an investment of 460mn yuan ($64mn) and is projected to generate annual revenue of around Yn750mn.

The company has ambitious plans to scale output. A second phase, scheduled to be completed by the end of 2027, will add another 15,000 t/yr in capacity. Once the full 20,000 t/yr production is online, Xiamen Tungsten forecasts revenue reaching Yn4bn annually, highlighting the strong growth prospects for high-performance magnet materials.

Expanding Capacity Amid Rising Global Demand

Xiamen Tungsten already operates 12,000 t/yr of rough NdFeB magnet capacity at its Changting facility in Fujian province. The company has steadily expanded its magnet production to meet surging demand from wind turbines, consumer electronics, energy-saving motors, home appliances, and the rapidly growing electric vehicle (EV) sector.

In the first quarter of 2025, Xiamen Tungsten reported revenue of Yn8.38bn, up 1.3pc year on year, though profit fell by 8.5pc to Yn391mn. Its rare earths unit, however, performed strongly, with revenue up 46.4pc to Yn1.33bn and profit surging 65.1pc to Yn66mn. Sales of deep-processing magnetic materials climbed 49pc, driving revenue growth of 35pc in that segment.

The Metalnomist Commentary

Xiamen Tungsten’s decision to scale NdFeB magnet production underscores China’s determination to maintain dominance in the global rare earth and magnet supply chain. With demand rising sharply in EVs and renewable energy, Baotou’s expanded capacity will reinforce China’s strategic position. However, reliance on domestic expansion also highlights growing risks of overcapacity and pricing pressure in the magnet sector.

Dazhong Mining Expands Lithium Resources at Jiada Mine

Dazhong Mining

Lithium Resources at Jiada Mine Increase Significantly

Inner Mongolia Dazhong Mining has revised higher its lithium resource estimates at the Jiada spodumene mine in Sichuan. The mine’s reserves now total 1.4842mn t of lithium carbonate equivalent (LCE) with an average grade of 1.38pc lithium oxide. This upgrade raises Dazhong’s total lithium resources across its assets to 4.72mn t LCE. The company also operates the Jijiaoshan lithium mine in Hunan province, strengthening its domestic lithium footprint.

Dazhong’s Investment in Lithium Supply Chain Expansion

Dazhong is actively expanding into downstream lithium processing and battery production. The firm is building lithium carbonate and cathode active material production lines, alongside lithium-ion battery plants in Hunan, with an investment of 16bn yuan ($2.2bn). It also plans to develop a large-scale complex in Inner Mongolia with 40,000 t/yr lithium carbonate, 40,000 t/yr lithium salts, 250,000 t/yr lithium iron phosphate, 100,000 t/yr artificial graphite anode material, and 10 GWh/yr lithium-ion batteries. These projects highlight China’s ambition to dominate the entire lithium value chain.

Lithium Market Pressures Despite Long-Term Demand

The lithium market remains oversupplied, pushing prices to multi-year lows despite robust long-term demand forecasts. Chinese lithium carbonate prices are currently at Yn59,800-61,000/t ex-works, down 89pc from the November 2022 peak of Yn561,000-576,000/t. Rising supply from Chinese producers, including new capacity expansions like Dazhong’s, has weighed on spot prices. However, strong demand from electric vehicles, energy storage systems, and emerging battery technologies is expected to support recovery in the medium term.

The Metalnomist Commentary

Dazhong Mining’s resource upgrade and heavy downstream investments underline China’s strategy to secure leadership across the lithium supply chain. While today’s oversupply keeps prices depressed, structural demand from EVs and storage solutions suggests that projects like Jiada will be vital in balancing the global market in the next decade.

China’s Guizhou Kaijin Expands Battery Anode Capacity

Kaijin battery

Expansion Strengthens Position in Lithium-Ion Battery Market

China’s Guizhou Kaijin has expanded its lithium-ion battery anode production capacity to 120,000 tonnes per year. The facility in Tongren city, Guizhou province, began operations in May 2022 with six lines producing 100,000 t/yr. Following upgrades and the installation of two additional lines, trial production for the seventh and eighth lines is set to begin by the end of July.

Kaijin’s sales performance reflects this rapid expansion. Between January and April 2025, the company sold 50,000 tonnes of anode materials, compared with just 10,000 tonnes during the same period in 2023. As a subsidiary of Guangdong Kaijin, one of China’s top five anode producers, the company strengthens its foothold in the global battery supply chain.

NEV Boom Drives Rising Demand for Anode Materials

China’s fast-growing new energy vehicle (NEV) industry is fueling strong demand for lithium-ion battery anode materials. National shipments of anode materials reached 2.12mn tonnes in 2024, up 24% from 2023. This growth aligns with rising NEV production and sales, supported by robust consumer demand and government incentives.

China produced 5.7mn NEVs from January to May 2025, a 45% increase compared with the same period in 2024. Sales also grew by 44% to 5.61mn units. As a result, overall production of power and energy storage batteries rose by 63% year-on-year to 568.1GWh during January-May, according to the China Automotive Battery Innovation Alliance (Cabir).

The Metalnomist Commentary

Guizhou Kaijin’s expansion demonstrates the strategic scaling of China’s battery materials industry in response to surging NEV demand. As global automakers diversify supply chains, Kaijin’s growth reinforces China’s dominance in anode materials. However, international competition and technology shifts, such as LFP adoption, will challenge long-term market positioning.