ChargeScape Rivian Partnership Brings Large EV Batteries Into Grid Services

ChargeScape

ChargeScape Rivian partnership will connect Rivian electric vehicles to utility-managed charging programmes, turning large EV batteries into flexible grid assets that can help manage peak electricity demand.

ChargeScape Rivian partnership is strategically important because Rivian vehicles carry some of the largest battery packs in the US passenger EV market. Earlier R1 models offer capacity of up to 141kWh, while newer R2 models carry around 88kWh.

ChargeScape Rivian partnership also creates a newno revenue model for EV owners. Drivers participating in eligible programmes could earn as much as $3,000/yr by allowing utilities to manage charging or sell stored electricity back to the grid during periods of high demand.

The agreement strengthens the convergence between transportation and electricity infrastructure, creating a distributed energy storage network without requiring utilities to build every battery themselves.

Large EV Batteries Become Flexible Grid Assets

Vehicle-grid integration allows utilities to shift EV charging away from peak periods and, where bidirectional charging is available, draw electricity from vehicle batteries when the grid needs additional supply.

This turns parked EVs into distributed storage assets rather than passive electricity consumers.

Rivian's large battery packs make the economics particularly interesting. A single 141kWh vehicle contains significantly more storage than many residential battery systems, creating substantial flexibility when thousands of vehicles participate together.

Utilities can use this capacity to reduce peak demand, absorb excess renewable generation and improve grid stability.

For EV owners, managed charging creates an opportunity to monetise battery capacity while vehicles are parked. The financial value depends on electricity prices, utility programme rules, battery availability and the frequency of grid participation.

ChargeScape already connects automakers with utilities including DTE, Silicon Valley Power and Xcel Energy. Its automotive shareholders include BMW, Ford, Honda and Nissan.

The platform says its existing partnerships provide access to more than 5mn EVs across the US and Canada, giving it the potential to aggregate substantial distributed battery capacity.

Vehicle-to-Grid Growth Could Reshape Battery Economics

The expansion of vehicle-grid integration changes the economic role of EV batteries. Battery packs can generate value not only through transportation but also through electricity markets.

At sufficient scale, connected vehicles can operate similarly to a virtual power plant, combining thousands of distributed batteries into one controllable resource.

This could reduce the need for some dedicated stationary storage while increasing the utilisation of batteries already manufactured for vehicles.

The model also strengthens demand for sophisticated battery management systems, power electronics, bidirectional chargers and grid software.

For battery materials, the impact is more complex. Greater economic value per battery could improve EV ownership economics and support vehicle adoption, strengthening long-term demand for lithium, graphite, nickel, copper and other materials.

At the same time, better utilisation of existing batteries can increase the amount of energy storage available to grids without requiring an equivalent increase in standalone battery installations.

The ChargeScape-Rivian partnership therefore represents a broader shift toward integrating transportation batteries directly into electricity infrastructure.

The Metalnomist Commentary

EV batteries are evolving from transportation components into grid infrastructure. If vehicle-to-grid programmes scale, automakers and utilities could unlock gigawatt-hours of distributed storage without building entirely separate battery fleets.

Colorado Battery Recycling Law Sets Mandatory Lithium Recovery Targets

Colorado Battery Recycling

Colorado battery recycling law introduces mandatory recovery targets for lithium, nickel and cobalt from electric and hybrid vehicle batteries. The measure creates a more structured framework for recovering critical minerals from end-of-life batteries.

Colorado battery recycling law requires recyclers to recover 50% of lithium from spent batteries by 2031 and 80% by 2035. Nickel and cobalt recovery must reach 90% by 2031.

Colorado battery recycling law will also prohibit landfilling of EV batteries from July 2029. This should push more used packs toward reuse, dismantling and materials recovery.

The legislation strengthens the commercial case for domestic battery recycling by creating clearer collection obligations and long-term recovery requirements.

Mandatory Recovery Targets Support Secondary Battery Materials

The Battery Stewardship Act requires battery stewardship organizations to submit plans covering collection, transportation, processing and recycling.

The lithium target is particularly important because recovering lithium economically has historically been more challenging than recovering nickel and cobalt.

A 50% recovery requirement by 2031 gives recyclers time to improve process efficiency before the threshold rises to 80% in 2035.

The 90% recovery requirement for nickel and cobalt sets an even higher standard. Both metals remain valuable inputs for several lithium-ion battery chemistries.

Recovering these materials can reduce dependence on newly mined supply and create more domestic secondary feedstock for battery manufacturers.

The landfill ban reinforces that objective by keeping valuable battery materials inside the industrial supply chain.

Producer Fees Could Improve Battery Collection and Recycling Economics

Battery providers will fund part of the system through fees linked to their share of battery vehicles registered in Colorado.

An initial programme fee will support implementation. Annual payments beginning by July 2030 will cover administration, enforcement and regulatory costs.

This shifts more responsibility for end-of-life batteries toward companies placing battery vehicles into the market.

The framework could also improve feedstock certainty for recyclers. Reliable access to spent batteries remains one of the biggest challenges facing the emerging US battpery recycling industry.

Over time, the legislation may encourage better pack design for dismantling, reuse and materials recovery.

If similar policies spread to other states, US battery recycling could develop around mandatory recovery standards rather than voluntary collection alone.

The Metalnomist Commentary

Colorado is turning battery recycling into a regulated critical minerals supply chain. The most important benefit may be feedstock certainty, because recyclers need predictable battery volumes as much as better recovery technology.

Texas LFP Plant Links Domestic Lithium Supply With Cathode Production

EnergyX

Texas LFP plant development is moving forward after Wildcat Discovery Technologies and EnergyX formed a joint venture to produce lithium iron phosphate cathode active material in Hooks. The project represents more than $230mn of investment and is designed for around 15,000 t/yr of CAM capacity.

Texas LFP plant plans are strategically important because the facility will sit next to EnergyX’s Lonestar lithium project in the Smackover formation. This creates a potential domestic route from lithium extraction and conversion to cathode material production.

Texas LFP plant supply will also benefit from a structured lithium pricing agreement. EnergyX will provide lithium carbonate to the joint venture at commercially favourable terms, including a market discount and price floor and ceiling intended to reduce exposure to lithium price volatility.

The project strengthens US efforts to localise more of the battery value chain, particularly for LFP chemistry used in electric vehicles and stationary energy storage.

Co-Location Reduces Battery Supply Chain Risk

The Hooks facility is designed to produce about 15,000 t/yr of LFP cathode active material, with potential for future expansion.

Its location beside EnergyX’s Lonestar lithium operation is the project’s main industrial advantage. Co-locating lithium supply and cathode production can reduce logistics complexity, shorten supply chains and improve feedstock security.

EnergyX plans to produce 48,500 t/yr of lithium hydroxide at Lonestar by 2030. The first phase is expected to reach 14,250 t/yr by 2028.

The project is targeting operating expenditure of about $3.85/kg, which could strengthen the economics of downstream battery material production if that cost structure is achieved at scale.

The joint venture will initially receive lithium carbonate under a pricing structure that limits exposure to extreme market movements. This gives the cathode operation greater cost visibility during periods of lithium volatility.

For battery materials projects, this kind of feedstock agreement can be as important as plant capacity. Cathode producers need reliable supply, predictable chemistry and manageable pricing to compete with established Asian producers.

LFP Growth Supports US Battery Localization

LFP chemistry is gaining market share because it offers lower cost, strong cycle life and improved thermal stability compared with nickel-rich cathode systems.

It also avoids nickel and cobalt, reducing exposure to two globally concentrated and price-sensitive battery metals. However, LFP still depends heavily on lithium supply and specialised cathode manufacturing capability.

The Wildcat-EnergyX project therefore addresses two major US supply-chain gaps at the same time: domestic lithium production and domestic cathode active material manufacturing.

Stationary energy storage is likely to be an important demand source. Large grid batteries increasingly favour LFP because of its durability, safety characteristics and lower material cost.

EV demand could provide another growth route, particularly as automakers expand lower-cost vehicle platforms using LFP cells.

The project also illustrates a wider shift in US battery strategy. Rather than building isolated mines or chemical plants, developers are increasingly trying to connect extraction, conversion and active material production within regional industrial clusters.

The Metalnomist Commentary

The Wildcat-EnergyX venture is strategically stronger because it links lithium supply directly with LFP cathode production. US battery localization will depend less on individual plants and more on integrated regional chains that control feedstock, processing and pricing risk.

BYD EV Sales Recover in May as Export Demand Offsets China Weakness

BYD

BYD EV sales returned to year-on-year growth in May as surging overseas demand offset continued weakness in China. The company sold 383,453 new energy vehicles during the month, up 0.3% from a year earlier.

BYD EV sales had declined for consecutive months since October 2025 as domestic policy changes, weaker incentives and government pressure against aggressive price competition weighed on China’s automotive market.

BYD EV sales are now increasingly dependent on international markets. Exports jumped to 160,644 units in May from 89,047 a year earlier, showing how rapidly the company is building a global sales base.

The recovery also highlights a broader shift in China’s EV industry. Domestic competition remains intense, while manufacturers are increasingly using overseas markets to absorb expanding production capacity.

Exports Become BYD’s Main Growth Engine

BYD sold 376,990 passenger NEVs in May and another 6,463 commercial vehicles. Battery electric vehicle sales fell by 2.8% year on year to 198,674 units, while plug-in hybrid sales rose by 3.3% to 178,316 units.

The split shows that plug-in hybrids continue to play an important role in BYD’s product mix. PHEVs can appeal to buyers that want electrification without relying entirely on charging infrastructure.

China classifies battery electric vehicles, plug-in hybrids and fuel-cell vehicles as new energy vehicles. For battery material demand, however, the distinction matters because BEVs generally require larger battery packs than PHEVs.

BYD’s January-May NEV sales fell by 20% year on year to 1.4mn units. The decline followed government and industry efforts to reduce destructive price competition in China’s vehicle market.

The rollback of vehicle purchase tax incentives from 1 January also weakened domestic demand. At the same time, major automakers have committed to paying suppliers within 60 days to improve financial stability across the supply chain.

Exports are increasingly compensating for that pressure. Brazil has become one of BYD’s most important international markets and is now the largest destination for Chinese NEV exports.

Easing import restrictions in markets including Canada could provide additional export opportunities. This strengthens the case for Chinese automakers to continue expanding assembly, logistics and distribution networks overseas.

EV Export Growth Supports Battery Materials Demand

Higher oil prices have also improved the relative economics of electric vehicles. Rising crude prices since the escalation of Middle East tensions have increased operating costs for combustion-engine vehicles and strengthened EV competitiveness.

This can support demand for lithium, graphite, copper and other battery materials if EV exports continue to rise. However, the material impact will depend on the mix between BEVs and smaller-battery plug-in hybrids.

BYD’s shift also matters for the wider automotive metals market. Growing EV output supports copper demand through motors, wiring and power electronics, while alu

minium remains important for lightweight structures and battery enclosures.

The company has been fully committed to electrified vehicles since ending production of gasoline-only cars in March 2022. BYD sold 4.626mn NEVs in 2025, up 8.3% from the previous year.

The challenge now is geographic balance. Domestic growth is slowing, while overseas markets are becoming more important to utilisation rates and future production growth.

That shift could accelerate localisation outside China. As export volumes rise, BYD and other Chinese automakers may increasingly invest in overseas assembly and regional supply chains to manage tariffs, logistics and local-content rules.

The Metalnomist Commentary

BYD’s May recovery shows that China’s EV growth story is becoming increasingly export-driven. For battery metals, the key variable is no longer only Chinese vehicle sales, but how quickly Chinese manufacturers can convert overseas demand into sustained BEV and PHEV production growth.

EU Car Emissions Policy Divides States as 2035 and ETS 2 Battles Intensify

EU, ETS

EU car emissions policy is becoming a major fault line between member states as governments debate how much flexibility automakers should receive after 2035 and how quickly carbon pricing should expand into road transport and buildings.

France, Spain and Sweden defended continued electrification, while Poland called for greater flexibility in vehicle CO2 rules and further changes to ETS 2. The European Commission’s current proposal would replace the existing 100% tailpipe-emissions reduction requirement for new cars and vans from 2035 with a 90% reduction, with the remaining emissions compensated through low-carbon steel, e-fuels or biofuels. 

EU car emissions policy increasingly matters for metals markets because the regulatory outcome will influence the pace of EV adoption, internal-combustion vehicle production and material demand across batteries, copper, aluminium and automotive steels.

At the same time, disagreements over ETS 2 show that Europe is still negotiating how quickly consumers and transport markets should absorb the cost of decarbonisation.

2035 Flexibility Could Reshape Automotive Metals Demand

The Commission’s proposed flexibility would allow plug-in hybrids, range extenders, mild hybrids and some internal-combustion vehicles to remain in the market beyond 2035, provided manufacturers meet the wider emissions framework. 

That matters because the automotive material mix changes significantly depending on powertrain.

Battery electric vehicles typically require larger battery packs and more copper-intensive electrical systems. They directly support demand for lithium, graphite and selected nickel and manganese products depending on battery chemistry.

Hybrids require much smaller batteries, reducing battery mineral intensity per vehicle. However, they still consume more copper and electrical components than conventional combustion vehicles.

Continued ICE production would also sustain demand for metals and components linked to traditional powertrains, including speciality steels, aluminium castings and exhaust-system materials.

Low-carbon steel is becoming another strategic element. Under the Commission proposal, EU-made low-carbon steel could contribute to compensating the remaining emissions permitted after 2035. 

This could create a new commercial advantage for European steelmakers investing in lower-carbon production. Automotive decarbonisation would then depend not only on the vehicle powertrain but also on the embedded emissions of its materials.

The industrial argument is therefore becoming more complex than EV versus ICE. Europe is increasingly debating whether decarbonisation should be measured through tailpipe emissions alone or through a broader combination of powertrain, fuels and lower-carbon materials.

ETS 2 Debate Highlights Cost of Europe’s Transition

The political divide extends beyond cars to carbon pricing.

ETS 2 is designed to expand emissions trading to fuels used in buildings, road transport and additional sectors. Its full launch is currently scheduled for 2028, while EU institutions have also been strengthening its market stability reserve to reduce excessive price volatility. 

Poland is pushing for stronger mechanisms to control carbon prices and has argued for further flexibility around implementation.

The issue is important because ETS 2 could eventually increase the carbon cost associated with road fuels and heating. Governments are therefore balancing emissions objectives against household costs, inflation and industrial competitiveness.

For metals and manufacturing, carbon market design has indirect but significant consequences. Faster electrification supports grids, charging infrastructure and electrical metals demand. Slower implementation could extend fossil fuel consumption and delay part of that investment cycle.

Germany has meanwhile focused on the longer-term availability of allowances under the existing ETS, highlighting concern over how rapidly the emissions cap declines as Europe approaches its 2040 climate targets.

These debates show that Europe has broadly agreed on the direction of travel but not on the speed or industrial structure of the transition.

The eventual policy mix will influence where manufacturers invest, which automotive technologies survive and how quickly European material supply chains need to adapt.

The Metalnomist Commentary

Europe’s automotive debate is shifting from a simple ICE-versus-EV argument toward a contest over technology, carbon pricing and material origin. For metals markets, the final policy balance will determine how quickly demand moves toward batteries, copper and low-carbon steel.

Ford Energy BESS Deal With EDF Signals Automaker Push Into Grid Storage

Ford Energy

Ford Energy BESS deal with EDF Power Solutions North America marks a major step in Ford’s move from vehicle batteries into grid-scale energy storage. Ford Energy will supply EDF with 20GWh of battery energy storage systems over five years starting in 2028.

Ford Energy BESS deal gives EDF access to up to 4GWh/yr of DC block systems for utility-scale storage projects across the US. The agreement positions Ford Energy as a key domestic supplier for large energy storage developers.

Ford Energy BESS deal also shows how automakers are repurposing battery manufacturing assets for stationary storage. Ford is investing $2bn to convert its Glendale, Kentucky, battery facility for the BESS market.

The transaction connects three fast-growing demand drivers: grid storage, data centers and US-made battery systems. It also reinforces the strategic role of lithium iron phosphate batteries in stationary applications.

LFP Storage Supports Utilities, Data Centers and Industrial Customers

Ford Energy’s DC Block is a standardized 20ft containerized battery energy storage system. Each unit has 5.45MWh of capacity and uses lithium iron phosphate prismatic cells.

The system is available in two-hour and four-hour discharge configurations. That flexibility allows EDF to deploy storage across different grid services, renewable integration and peak-shifting applications.

LFP batteries are well suited to stationary storage because they offer cost advantages, safety benefits and long cycle life. They also reduce exposure to nickel and cobalt compared with higher-nickel lithium-ion chemistries.

Ford Energy plans to assemble BESS in the US for utilities, data centers, large industrial customers and commercial users. That customer mix reflects how electricity demand is changing.

Data centers are becoming a major new source of power demand. Battery storage can help manage grid congestion, renewable intermittency and backup power requirements.

EDF already has a large platform for deployment. The company has developed 26GW of projects and holds 17GW under service contracts, giving Ford Energy a major channel into the US storage market.

Repurposed Battery Capacity Strengthens US Storage Supply Chain

Ford Energy plans to deploy at least 20GWh/yr of BESS capacity, with first customer deliveries scheduled for late 2027. The EDF agreement will absorb a meaningful share of early output from 2028.

The Glendale investment is strategically important. It shows how battery manufacturing capacity originally linked to vehicle electrification can be redirected toward stationary storage.

This matters because EV demand growth has become less linear, while grid storage demand continues to rise. Automakers with battery manufacturing assets may find BESS a valuable second market.

The deal also strengthens the US energy storage supply chain. Domestic assembly can reduce logistics risk, support local content requirements and improve delivery certainty for infrastructure customers.

For battery materials, the agreement supports demand for lithium, phosphate, graphite, copper, aluminium and battery-grade chemicals tied to LFP cells and storage systems.

The wider implication is clear. Battery demand is no longer only an EV story. Utilities, data centers and industrial customers are becoming major buyers of battery systems as power reliability becomes a strategic constraint.

The Metalnomist Commentary

Ford’s EDF agreement shows that stationary storage is becoming a major outlet for battery manufacturing capacity. The strategic winners will be companies that can combine US assembly, LFP chemistry and long-term supply agreements with grid and data-center customers.

EU EV Transition Faces Energy Cost and Trade Policy Pressure

EU energy

EU EV transition plans are facing growing pressure from high energy costs, tougher global competition and a regulatory model that industry leaders say may be weakening Europe’s automotive position. Speakers at the FT Future of the Car Summit warned that Europe must rethink how it competes with China and other industrial economies.

EU EV transition policy has relied heavily on regulation, including the planned 2035 phase-out of new internal combustion engine car sales. But carmakers and suppliers argue that regulation alone cannot deliver a competitive electric vehicle industry if energy prices, subsidies and supply-chain costs remain unfavourable.

EU EV transition challenges are becoming more visible as Chinese automakers gain share in Europe, southeast Asia and Latin America. Chinese producers have built cost-competitive EV platforms through subsidies, domestic competition, supply-chain control and fast industrial scaling.

The debate matters for metals because slower or more expensive electrification can reshape demand for lithium, nickel, cobalt, manganese, copper, aluminium and rare earth magnets. Automotive materials demand will still grow, but the path may become less direct and more exposed to policy choices.

China’s EV Scale Forces Europe to Rethink Trade Strategy

European automotive suppliers are calling for a more realistic approach to global competition. The industry is facing rivals that operate under different labour, subsidy and industrial policy conditions.

China has become one of the world’s strongest EV exporters. It accounted for around 40% of global EV exports in 2024, while leading Chinese brands have expanded aggressively with lower-cost, technology-rich vehicles.

This creates a competitive problem for European carmakers. Europe has focused on setting strict emissions targets, while China has focused on making EVs cheaper, scalable and export-ready.

Several industry executives now argue that collaboration may become unavoidable. Western manufacturers may need to partner with Chinese or other international competitors that already have a technological lead in EV platforms, batteries, software and power electronics.

This could change European supply chains. Rather than developing every technology internally, carmakers may increasingly combine European assembly and branding with externally sourced EV systems.

That strategy could support faster electrification, but it also creates dependence on imported components, battery materials and processed inputs. It may help automakers compete on cost, but it does not solve Europe’s strategic materials vulnerability.

Energy Costs Could Slow Consumer Adoption and Metals Demand

High charging and energy costs are another major barrier to Europe’s EV push. If consumers face much higher charging costs than drivers in China or other regions, the economic case for EV adoption weakens.

This is critical because EV demand is highly sensitive to total ownership cost. Batteries may become cheaper, but charging costs, highway tariffs and energy price volatility can still shape consumer decisions.

For battery metals, this matters directly. Slower EV adoption would reduce the speed of demand growth for lithium, nickel, cobalt and manganese, especially in full battery electric vehicles with large battery packs.

Copper and aluminium remain better positioned across multiple automotive pathways. EVs require copper for wiring, motors, charging systems and power electronics, while aluminium supports lightweighting, battery enclosures and structural components.

However, Europe’s automotive metals demand will increasingly depend on which technology mix wins. Full BEVs support larger battery metals demand, while hybrids and lower-cost EV platforms could shift consumption toward smaller batteries, more electronics and continued use of conventional automotive materials.

The policy challenge is therefore industrial as much as environmental. Europe must reduce emissions while keeping manufacturing competitive, securing raw materials and lowering energy costs for consumers.

If Europe cannot align regulation, energy prices and trade strategy, its EV transition could become a market for imported vehicles rather than a platform for domestic industrial growth.

The Metalnomist Commentary

Europe’s EV problem is not only about regulation or consumer demand. It is about whether the region can build a cost-competitive industrial system around energy, materials, technology and trade before Chinese EV platforms define the market.

Stellantis Leapmotor Spain BEV Production Plan Signals Localised Chinese EV Strategy

Stellantis

Stellantis Leapmotor Spain BEV production plans could mark a new phase in Europe’s electric vehicle supply chain, as western automakers look to combine local assembly with lower-cost Chinese components. Stellantis and Leapmotor are considering new battery electric vehicle lines at Zaragoza and Villaverde in Spain through their Leapmotor International joint venture.

Stellantis Leapmotor Spain BEV production would move the partnership beyond vehicle imports and toward European manufacturing. That shift matters because local content rules, tariff risk and regional supply security are becoming more important in the EV market.

Stellantis Leapmotor Spain BEV production could also help the companies respond to weaker European affordability conditions. Chinese component sourcing can lower cost, while Spanish assembly may improve regulatory and commercial positioning inside Europe.

The companies have not disclosed production targets, utilisation rates or investment figures. This leaves the scale of the plan uncertain, but the strategic direction is clear.

Spain Could Become a European Platform for Leapmotor Models

Zaragoza could gain a new all-electric SUV line as early as this year. The plant has long been associated with Opel production and could become a base for new BEV output under the joint venture.

Villaverde in Madrid may also become more important to Leapmotor International. The plant faces a production gap after Citroen C4 output ends and may shift entirely to Leapmotor models by 2029.

That potential transition would give Stellantis a way to protect industrial activity at existing Spanish plants while adding lower-cost BEV models to its European portfolio.

The plan reflects a broader industry pattern. European automakers are trying to defend market share against Chinese EV competition while also using Chinese platforms, components and cost structures to improve competitiveness.

Stellantis bought a 21% stake in Leapmotor in 2023 and created a 51-49 joint venture to sell and manufacture Leapmotor vehicles outside China. Spain could now become one of the key production bases for that strategy.

For Spain, the opportunity is industrial. More BEV assembly could support jobs, supplier activity and demand for local logistics, batteries, wiring, aluminium components and electronics integration.

Local Assembly Meets Cost Pressure and Supply-Chain Rules

The move from imports to local production is strategically important. European BEV manufacturing is increasingly shaped by tariffs, local content rules, battery sourcing requirements and political pressure to keep vehicle production inside the region.

Leapmotor brings cost-competitive EV engineering and components. Stellantis brings European plants, distribution, regulatory experience and manufacturing scale.

This combination could help address one of Europe’s biggest EV problems: producing affordable electric vehicles while maintaining regional industrial capacity.

However, the lack of disclosed volumes makes the market impact difficult to judge. Without production targets, it is unclear whether the Spain plans will materially change Stellantis’ European BEV output.

Stellantis needs stronger BEV momentum. Its BEV sales accounted for around 13% of output in the first half of last year, behind Volkswagen and BMW, and the company later reported a major write-down after cutting prices.

Leapmotor is growing much faster. Its EV sales, including plug-in hybrids, more than doubled last year to 596,000 units. That growth gives Stellantis access to a Chinese partner with clear scale momentum.

The industrial implication extends into materials. More European BEV production increases demand for aluminium body and structural parts, copper wiring, electrical steel, battery materials, power electronics and lightweight components.

If the model works, Stellantis and Leapmotor could create a template for Chinese-designed, Europe-built EVs. That would reshape competition not only in vehicles, but also in the upstream materials and component chains that support regional BEV manufacturing.

The Metalnomist Commentary

Stellantis and Leapmotor are not only discussing new Spanish EV lines; they are testing a hybrid supply-chain model for Europe. Local assembly with Chinese components may become a practical route for automakers caught between cost pressure, tariff risk and the need to keep European factories active.

Zhongke Anode Material Sales Surge as Energy Storage Demand Accelerates

Zhongke

Zhongke anode material sales rose sharply in 2025 as China’s lithium-ion battery sector expanded across new energy vehicles and power storage. Hunan Zhongke Electric sold 363,253t of anode materials during the year, up 62% from 2024.

Zhongke anode material sales were supported by strong downstream demand and higher operating rates. The company’s output increased by 66% to 378,469t, reflecting a rapid scale-up in response to battery market growth.

Zhongke anode material sales also lifted revenue. Revenue from anode materials rose by 60% to 7.99bn yuan, broadly in line with the increase in shipment volumes.

The result shows how anode materials remain one of the key beneficiaries of battery expansion. Demand is no longer driven only by electric vehicles. Grid storage, industrial storage and AI-related power demand are becoming increasingly important.

Capacity Utilisation Tightens as China Battery Demand Expands

Zhongke’s anode material capacity reached 348,683 t/yr in 2025, up 46% from a year earlier. The increase followed equipment and technology upgrades across its production base.

Capacity utilisation rose to 108.6% from 95.7% in 2024. This shows that Zhongke was operating above nameplate capacity as demand outpaced available production capability.

The company is now expanding further. A third-phase project at its Zhaotong site in Yunnan province is under construction and will add 100,000 t/yr of anode material capacity by the end of 2026.

Zhaotong has become a key growth platform. The first phase, with 15,000 t/yr of capacity, started production in April 2020. The second phase, with 100,000 t/yr of capacity, began operations in March 2024.

Zhongke is also planning a 300,000 t/yr anode material complex in Luzhou, Sichuan province. This would further strengthen its position in China’s graphite anode supply chain.

The expansion reflects a broader industry trend. Anode producers are adding capacity to serve battery makers that need reliable supply, stable quality and lower-cost materials for high-volume cell production.

Overseas Expansion Targets Storage and Non-China Customers

Zhongke is also building a 100,000 t/yr anode material plant in Tangier, Morocco. The project targets customers outside China and reflects the growing need for regionalised battery material supply chains.

Morocco offers strategic value because it is close to European markets and has become more attractive for battery-related investment. For Chinese anode producers, overseas capacity can help serve customers facing localisation, trade and supply-chain security requirements.

Energy storage is becoming a major long-term demand driver. Global energy storage battery shipments reached 651.5GWh in 2025, up 76.2% from a year earlier. Chinese companies accounted for 614.7GWh, or 94.4% of global shipments.

EV Tank expects global energy storage battery shipments to exceed 2TWh by 2030. If this forecast materialises, anode material demand will continue rising across China and overseas markets.

Policy is also supporting growth. China is moving new energy storage from mandatory allocation toward a more market-oriented system, including capacity pricing support for independent grid-side storage.

AI data centres are adding another demand layer. Rapid growth in electricity consumption from AI infrastructure is increasing the need for power storage, grid stability and backup capacity.

Europe is also expanding storage under energy security strategies. EU member states installed 27.1GWh of new battery energy storage systems in 2025, up 45% from the previous year.

For Zhongke, this demand mix supports a larger and more international anode strategy. The company is positioning itself to serve China’s dominant battery ecosystem while preparing for overseas demand linked to storage, EVs and grid resilience.

The Metalnomist Commentary

Zhongke’s growth shows that anode materials are moving from an EV-driven market into a broader energy infrastructure market. The next competitive phase will depend on overseas localisation, graphite supply security and the ability to serve storage demand outside China.

Lithium-Ion Battery Copper Foil Shipments Surge as Ultra-Thin Products Gain Share

Copper Foil

Lithium-ion battery copper foil shipments rose sharply in 2025 as global battery production expanded and manufacturers shifted toward thinner materials to reduce copper costs. Global shipments reached 1.302mn t, up 41.7% from 2024, according to Chinese research institute EV Tank.

Lithium-ion battery copper foil demand remains closely tied to electric vehicle and energy storage growth. Copper foil is a key current collector in lithium-ion batteries, making it essential to cell performance, energy density and manufacturing cost.

Lithium-ion battery copper foil shipments were dominated by China, which accounted for 82.9% of global deliveries in 2025. EV Tank expects global shipments to reach 2.615mn t by 2030, implying continued expansion as battery output scales.

The product mix changed quickly during the year. The share of 8μm foil declined, while 6μm remained the mainstream product and accounted for more than 70% of total shipments.

Ultra-Thin Foil Gains Momentum on Copper Cost Pressure

Ultra-thin copper foil gained share as battery producers looked for ways to reduce copper input costs. Persistently high global copper prices pushed cell manufacturers to use thinner foil while maintaining battery performance.

The combined share of 5μm and 4.5μm ultra-thin foil rose to 24% in 2025. This is a major shift for a material category that requires tighter production control, better surface quality and stronger consistency.

Thinner copper foil can help reduce battery weight and improve energy density. It also lowers the amount of copper used per cell, which becomes increasingly important when copper prices remain elevated.

EV Tank expects 5μm and thinner foil to become a key material for high-end batteries. This reflects the industry’s move toward lighter, higher-energy-density cell designs.

However, thinner foil also raises manufacturing difficulty. Producers must control pinholes, tensile strength, elongation, surface roughness and coating compatibility more precisely.

That technical barrier could separate higher-end suppliers from lower-cost producers. As battery customers shift toward thinner grades, qualification and process reliability will become more important than simple capacity.

China Leads Supply as Competition Intensifies

China’s 82.9% share of global shipments shows its dominant role in battery copper foil supply. The country has built large-scale capacity around its lithium-ion battery ecosystem, supported by domestic EV, energy storage and cell manufacturing growth.

Competition intensified in 2025 as the market recovered and producers brought earlier-built capacity on line. This created a more fluid ranking among suppliers.

Longdian Wason ranked first with a 12.2% market share. Huachuang New Material followed after capacity ramp-ups lifted output and sales.

Defu Technology and Jiayuan Technology ranked third and fourth, respectively. Seven companies in the top 10 changed positions during the year, showing how quickly capacity, customer access and product mix are reshaping the sector.

Battery makers also increased procurement from second-tier suppliers to improve supply stability. This suggests buyers are trying to diversify supplier bases rather than rely only on leading producers.

For copper markets, the trend is strategically important. Battery copper foil growth creates a direct link between copper demand and battery technology. But the move toward ultra-thin foil also means battery growth will not translate into copper demand on a simple one-to-one basis.

The sector is therefore entering a more technical phase. Volume growth remains strong, but material intensity, foil thickness, supplier qualification and copper price pressure will all shape future demand.

The Metalnomist Commentary

The copper foil market shows how battery growth can lift copper demand while also forcing material thrift. High copper prices are pushing battery makers toward thinner foil, making technology and process control as important as raw capacity.

Europe EV Growth Rises as Incentives Mask Fragile Demand Signals

Europe EV

Europe EV growth accelerated last month as battery electric vehicle sales rose by 41%, supported by tax incentives, fleet buying and carmakers’ efforts to meet emissions targets. The increase looks strong on paper, but the drivers of demand remain uneven across markets.

Battery electric vehicle sales outpaced plug-in hybrid sales, which rose by 32% across the EU, EFTA and UK. Regular hybrid vehicle sales increased by 15%, while petrol and diesel sales continued to decline across major European markets.

Europe EV growth was strongest in large markets such as France, Germany and Italy. Spain again stood out for plug-in hybrid growth, showing that national policy, consumer economics and model availability continue to shape adoption differently.

The headline growth is important for battery metals and automotive supply chains. Higher BEV sales support long-term demand for lithium, nickel, manganese, graphite, copper, aluminium and rare earth magnets.

Incentives and Fleet Orders Drive the Near-Term Recovery

Tax policy remains one of the main engines behind Europe EV growth. Several member states entered the year with revised company car rules, income-linked subsidies or accelerated depreciation schemes for electric vehicles.

These measures have favoured fleet buyers more than private consumers. Corporate fleets can respond faster to tax incentives, depreciation benefits and emissions rules because they buy vehicles in larger volumes and plan replacements more systematically.

France has tightened the link between EV support and income. Germany’s recovery has been supported by targeted incentives reintroduced in January after earlier policy volatility disrupted demand.

This matters because fleet-led growth can be less stable than broad consumer adoption. Fleet orders can lift sales quickly, but private demand is still sensitive to price, charging access, financing costs and residual value concerns.

Carmakers are also working to meet CO₂ limits. This creates another demand driver that is not purely consumer-led. Automakers may use pricing, leasing and fleet channels to push EV registrations when regulatory targets tighten.

For metals markets, the distinction matters. Stable private adoption creates more predictable battery material demand. Incentive-driven fleet demand can be more volatile if policy changes or budget support weakens.

Oil Shock Adds Uncertainty to EV Demand Outlook

Higher oil prices after the US-Iran war have revived the question of whether fuel costs are pushing consumers toward electric vehicles. However, the evidence is not yet clear.

EV demand was already rising in key markets before the oil shock. Early-year growth appears to reflect incentives, fleet orders and emissions compliance more than a direct consumer shift caused by higher fuel costs.

There is also a timing lag. Vehicle orders usually appear in sales data several weeks later, and delivery times vary by model and country. Any clear oil-price effect may not appear until June or July.

This caution is important because monthly EV data can be distorted by local registration patterns. The UK, for example, often sees a March registration spike because of its plate change system.

The broader strategic message remains clear. If Europe wants to reduce exposure to oil shocks, it needs consistent carbon rules, pollution-based taxation, charging infrastructure and long-term industrial policy.

Stop-start subsidies can create temporary sales jumps, but they can also damage market confidence. Stable rules are more useful for automakers, battery producers, charging companies and metals suppliers.

Europe EV growth therefore remains real but fragile. The region is moving away from petrol and diesel, yet the pace still depends heavily on policy design and fleet purchasing behaviour.

The Metalnomist Commentary

Europe EV growth is not yet a clean demand signal for battery metals because incentives and fleet buying are doing much of the work. The stronger long-term signal will come when private buyers adopt EVs without policy volatility or fuel-price panic.

Hedge Funds Metals Exposure Rises as Supply Chain Fragmentation Reshapes Markets

Metals

Hedge funds metals exposure is increasing as geopolitical risk, supply chain fragmentation and commodity-intensive investment cycles draw more financial capital into industrial and precious metals. Panellists at the FT Commodities Global Summit in Lausanne said metals are becoming more attractive to portfolio managers seeking exposure beyond equities, bonds and credit.

The shift reflects a deeper change in global markets. Economic growth is increasingly tied to physical capital expenditure, including power grids, transport systems, storage infrastructure, clean energy assets and industrial manufacturing capacity.

Hedge funds metals exposure is therefore being driven by more than short-term price volatility. Investors are responding to long-term underinvestment in physical infrastructure, tighter supply chains and the growing strategic role of metals in energy transition, defence and industrial policy.

Metals Gain Financial Appeal as Physical Investment Cycles Expand

Commodity markets are attracting more capital because the global economy is becoming more materials-intensive. The energy transition requires copper, aluminium, nickel, lithium, rare earths, silver, steel and specialty metals for grids, batteries, renewables, electric vehicles and data centres.

Supply tightness is also changing investor behaviour. Years of underinvestment in mines, smelters, refineries, logistics and storage have made several metal markets more vulnerable to disruption.

Geopolitical risk adds another layer. Export controls, tariffs, sanctions, stockpiling and regional supply-chain policies are making metals less predictable and more strategic.

This volatility creates opportunities for hedge funds. Metals now offer exposure to electrification, critical minerals, defence demand, AI infrastructure and supply security themes.

The rise in hedge funds metals exposure also shows that commodities are no longer only inflation hedges or cyclical trades. They are becoming a way to invest in physical bottlenecks created by a more fragmented global economy.

Traders Keep Physical Edge While Hedge Funds Scale Data Strategies

Commodity traders still hold a major advantage in physical arbitrage. They understand vessel movements, warehouse flows, regional premiums, logistics constraints and on-the-ground supply conditions.

That physical insight is difficult for financial investors to replicate. Knowing the price difference between one location and another often favours traders with direct market access and operational knowledge.

Hedge funds have different strengths. They are better positioned to analyse large macro themes, such as China’s stationary battery deployment, grid investment, EV adoption and industrial demand shifts.

Artificial intelligence is becoming another differentiator. Some hedge funds are embedding machine learning more deeply into trading, forecasting and risk management.

Commodity traders and energy companies are investing in data and automation, but many still lag hedge funds in systematic technology-driven trading. This gap could narrow as physical traders combine market intelligence with stronger analytics.

The result is a more competitive metals market. Physical traders will keep their logistical edge, while hedge funds may increasingly shape price discovery through capital flows, macro positioning and AI-supported strategies.

The Metalnomist Commentary

Hedge funds metals exposure is rising because metals now sit at the intersection of infrastructure, geopolitics and technology. The next market advantage will belong to firms that can combine physical supply-chain knowledge with faster data, AI and capital allocation.

XFH Anode Material Sales Rise as China Battery Demand Expands

Anode Material

XFH anode material sales increased in 2025 as demand from China’s lithium-ion power battery and energy storage battery industries continued to grow. Shanghai XFH Technology sold 83,885t of anode materials during the year, up 22% from 2024.

XFH anode material sales outpaced production growth, showing stronger downstream offtake from battery manufacturers. The company’s anode material output rose by 11% on the year to 83,426t.

XFH anode material sales also lifted revenue. The company’s anode material revenue rose by 21% to 1.7bn yuan, supported by higher shipment volumes into battery supply chains.

The result reflects continued expansion in China’s battery ecosystem. Power battery shipments exceeded 1,000GWh in 2025, up by more than 50% from a year earlier, while energy storage battery shipments rose by 85% to 630GWh.

Suining Complex Expands XFH’s Anode Capacity

XFH increased anode material production capacity to 114,660 t/yr in 2025, up 27% from the previous year. The increase followed the production launch of its 60,000 t/yr complex in Suining, Sichuan province, at the end of 2025.

The new capacity gives XFH more room to serve fast-growing battery demand. Anode materials are a core input for lithium-ion batteries, influencing charging performance, cycle life, safety and energy density.

China’s rapid growth in power batteries and storage batteries is driving expansion across the anode supply chain. Producers are adding capacity to meet demand from electric vehicles, grid storage, industrial storage systems and consumer battery applications.

The Suining project also strengthens XFH’s position in a market where scale, cost control and customer qualification are critical. Larger capacity can improve operating efficiency, but it also requires stable demand to avoid inventory and pricing pressure.

Energy Storage Growth Supports Anode Demand

Energy storage is becoming an increasingly important driver for China anode materials. Storage battery shipments grew faster than power batteries in 2025, rising by 85% from a year earlier.

This matters because energy storage systems require large volumes of battery materials even when they have different performance priorities from electric vehicles. Cost, cycle life, safety and supply reliability are especially important in storage applications.

Power battery demand remains the largest driver. China’s battery shipments above 1,000GWh show the scale of the domestic EV and battery manufacturing base.

For anode producers, the opportunity is large but competitive. Demand growth supports shipments, but capacity expansion across China can still create margin pressure if supply grows faster than customer orders.

XFH’s stronger sales and output show that qualified anode producers remain tied closely to downstream battery expansion. The next challenge will be maintaining utilisation and profitability as China’s battery materials sector continues to scale.

The Metalnomist Commentary

XFH’s growth shows that China’s battery materials chain is still expanding quickly, especially in anodes. However, rising capacity means producers must compete on qualification, cost and customer access, not only shipment growth.

Global Solid-State Electrolyte Shipments Surge as Semi-Solid Batteries Scale

Solid state electrolyte

Global solid-state electrolyte shipments are rising rapidly as semi-solid batteries move toward vehicle adoption and full solid-state battery commercialisation advances. Chinese research institute EV Tank said shipments reached 4,100t in 2025, more than doubling from a year earlier.

The increase marks an important early-stage signal for the battery materials industry. Electrolytes are one of the core materials that determine the energy density, safety and commercial viability of solid-state batteries.

Global solid-state electrolyte shipments are still small compared with conventional lithium-ion battery materials. However, the growth rate shows that downstream producers are beginning to prepare for larger semi-solid and solid-state battery output.

EV Tank expects global solid-state electrolyte shipments to reach 229,000t by 2030. That would imply a compound annual growth rate of more than 120% from 2025 to 2030, making electrolytes one of the fastest-growing segments in advanced battery materials.

The forecast reflects both technological progress and industrial positioning. Battery producers, automakers and materials companies are now investing ahead of expected demand from electric vehicles, energy storage systems and high-end electronics.

Semi-Solid Batteries Create the First Commercial Demand Base

Semi-solid batteries are likely to provide the first meaningful demand base for solid-state battery electrolytes. EV Tank expects these batteries to begin vehicle adoption from 2026, ahead of full solid-state battery mass production.

This timing matters because semi-solid batteries can act as a bridge technology. They offer improved safety and performance compared with conventional liquid-electrolyte batteries, while avoiding some of the most difficult technical barriers facing all-solid-state cells.

Semi-solid battery growth is already supporting electrolyte shipments. These products still use electrolyte systems that may differ from fully solid-state designs, but they create early commercial demand for sulphide, oxide, polymer, halide and composite electrolyte materials.

Full solid-state batteries are expected to enter small-scale mass production from 2027. That stage will likely remain limited at first because large-scale production still faces technical, cost and qualification challenges.

The market therefore looks likely to develop in phases. Semi-solid batteries will drive early electrolyte consumption, while full solid-state batteries will gradually expand once production processes, interfaces and reliability improve.

Electrolytes are central to this transition. They influence ion conductivity, safety, cycle life, energy density and compatibility with electrodes. Any weakness in electrolyte performance can limit the entire battery system.

This is why electrolyte development is becoming a strategic battleground. Battery makers cannot scale solid-state technology only by changing cell design. They need stable, high-quality electrolyte materials that can be produced consistently at industrial scale.

Capacity expansion is accelerating in response. EV Tank expects producers with annual electrolyte capacity at the thousand-tonne level to emerge within the next one to two years.

That would mark a shift from laboratory and pilot-scale material production toward early industrial supply. It would also create a more competitive market among electrolyte producers seeking qualification with battery manufacturers.

For battery materials suppliers, this creates a new growth category. Electrolytes may become a higher-value segment within the battery chain, especially if producers can meet strict requirements for purity, particle control, stability and conductivity.

For automakers, the key issue is reliability. Vehicle adoption requires materials that can perform under harsh cycling, temperature and safety conditions. This means electrolyte suppliers must pass long qualification cycles before volume demand can fully develop.

Technology Routes and Cost Cuts Shape the Scale-Up

Solid-state battery electrolyte technology remains diversified, especially in semi-solid batteries. Sulphide, oxide, polymer and halide routes are developing in parallel, while both single-electrolyte and composite-electrolyte solutions are being adopted.

This diversity shows that the industry has not yet settled on a single dominant material route. Different technologies offer different advantages in conductivity, stability, manufacturability, cost and safety.

Sulphide electrolytes currently dominate the roadmap for full solid-state batteries. They offer high ionic conductivity and are widely viewed as one of the most promising routes for high-performance battery cells.

However, sulphide systems also face challenges. They require careful handling, moisture control and interface engineering. These factors can raise production complexity and slow commercial scale-up.

Oxide electrolytes offer strong chemical and thermal stability, but they can face processing and interface resistance challenges. Polymer electrolytes offer manufacturing flexibility, but often struggle with conductivity at room temperature. Halide electrolytes are gaining interest because of their electrochemical stability and potential compatibility with high-voltage cathodes.

Composite electrolyte solutions may become increasingly important. By combining material systems, producers can try to balance conductivity, flexibility, stability and manufacturability.

Cost reduction is also becoming a major commercial driver. EV Tank said improvements in material quality and production processes lowered costs across several technology routes in 2025.

Sulphide electrolyte costs fell by more than 35% during the year. This is significant because cost remains one of the biggest obstacles to wider solid-state battery adoption.

Lower electrolyte costs improve the competitiveness of solid-state batteries against conventional lithium-ion technologies. They also make it easier for battery makers to test commercial deployment in premium vehicles, high-performance energy storage and other demanding applications.

Still, cost reduction alone will not guarantee rapid commercialisation. The industry must also solve interface stability, dendrite control, manufacturing yield, pressure management and long-term cycle reliability.

This explains why some major automakers remain cautious. BYD chief scientist Lian Yubo has said solid-state batteries still face core technical bottlenecks and that liquid and solid-state batteries should develop as complementary technologies.

Great Wall Motor also does not expect large-scale commercialisation of all-solid-state batteries in the near term. This caution suggests that the market may grow strongly, but unevenly.

The commercial pathway is therefore not a simple replacement of liquid batteries. Conventional lithium-ion batteries, semi-solid batteries and full solid-state batteries are likely to coexist for years, each serving different cost and performance segments.

This has important implications for materials demand. Solid-state growth could increase demand for lithium metal, high-nickel cathodes, sulphur-based materials, oxides, halides and specialty chemical precursors. But it may not immediately reduce demand for conventional electrolytes, separators or liquid battery components.

The forecast of 229,000t of global solid-state electrolyte shipments by 2030 points to a large materials opportunity. But the final market size will depend on how quickly automakers adopt semi-solid batteries and how successfully full solid-state batteries move from demonstration to reliable mass production.

For supply chains, qualification will be decisive. Battery makers will not buy electrolyte materials only because capacity exists. They will need stable quality, competitive pricing, proven performance and reliable long-term supply.

For policymakers, solid-state batteries are increasingly tied to advanced manufacturing and energy security. Countries that control electrolyte technology and battery production could gain strategic advantage in next-generation electric vehicles and storage systems.

For the metals market, the key point is that battery innovation changes materials demand before full commercial adoption arrives. Producers begin scaling supply years before the technology reaches mass-market vehicles, creating early demand signals and investment cycles.

Global solid-state electrolyte shipments therefore offer a useful indicator of where advanced battery manufacturing is moving. The numbers remain small, but the growth curve is steep enough to attract capital, competition and supply-chain restructuring.

The Metalnomist Commentary

Solid-state electrolyte growth shows that next-generation battery competition is moving upstream into materials engineering. The market will expand quickly, but full solid-state batteries still need technical proof before they can reshape EV and energy storage supply chains at scale.

Hailiang Saudi Copper JV Targets Middle East Processing Growth

Rawas

Hailiang Saudi copper JV plans will give Chinese copper products producer Zhejiang Hailiang a new manufacturing platform in Saudi Arabia. The company plans to form a joint venture with Saudi investment firm Rawas to build a $566mn copper processing plant at the port of Dammam.

The Hailiang Saudi copper JV is planned with 150,000 t/yr of copper processing capacity. The plant will include copper pipes, copper bars, recycled copper and copper foil, giving the project a broad downstream product mix.

The agreement gives Hailiang a 51% stake in the venture, while Rawas will hold 49%. The project still requires approval from the Saudi government and Hailiang’s shareholders before the partners finalise the investment.

The Hailiang Saudi copper JV reflects a wider shift in the copper products industry. Chinese processors are increasingly looking overseas to secure market access, reduce trade exposure and position closer to growth regions in the Middle East, Europe and Africa.

Dammam Plant Adds Copper Foil and Recycling Capacity

The planned Dammam plant will include 30,000 t/yr of copper pipe capacity and 20,000 t/yr of copper bar capacity. These products support construction, cooling systems, power infrastructure, industrial equipment and manufacturing supply chains.

The project also includes 50,000 t/yr of recycled copper capacity. This is strategically important because copper scrap is becoming a more valuable feedstock as concentrate markets tighten and buyers seek lower-carbon copper units.

The planned 50,000 t/yr of copper foil capacity adds a higher-value growth angle. Copper foil is used in batteries, electronics, printed circuit boards and advanced electrical applications. That gives the project relevance beyond traditional copper tube and bar markets.

The product mix suggests Hailiang is not only targeting commodity copper processing. It is building a downstream platform that can serve infrastructure, energy, electronics and battery-related demand from one regional base.

Dammam also offers logistical value. A port location can support raw material imports, finished product exports and access to Gulf, African and European customers. This could help Hailiang build a wider regional distribution network.

Saudi Arabia Gains Value-Added Copper Manufacturing Role

Hailiang said it aims to capitalise on Saudi Arabia’s copper ore resources, energy cost advantages and policy environment. These factors align with Saudi Arabia’s wider ambition to expand industrial manufacturing and mineral value chains.

For Saudi Arabia, the project could support a shift from resource availability toward value-added processing. Copper products are increasingly important for grids, buildings, cooling systems, EV infrastructure, renewable energy and industrial electrification.

The inclusion of recycled copper also fits the growing importance of circular metal supply. If Saudi Arabia can combine scrap collection, energy advantages and downstream manufacturing, it could strengthen its role in regional copper supply chains.

However, the project faces uncertainty. Hailiang said it is closely monitoring Middle East developments and their potential impact on site selection, construction progress, personnel safety and future operations.

The construction timeline has not yet been fixed. The partners will determine the schedule according to market conditions after the joint-venture agreement receives the required approvals.

This cautious approach is important. Middle East industrial projects can offer strong energy and logistics advantages, but geopolitical risk, financing timing, permitting and supply-chain security can still affect execution.

The Metalnomist Commentary

Hailiang’s Saudi venture shows how Chinese copper processors are internationalising downstream capacity, not only exporting products. The project’s real value lies in combining copper foil, recycling and regional market access inside Saudi Arabia’s industrial diversification strategy.

Volkswagen ID.4 Production Halt Shows US EV Demand Pressure

Volkswagen EV

Volkswagen ID.4 production in the US will end as the German automaker shifts its Chattanooga, Tennessee, plant toward higher-volume internal combustion vehicle output. The decision reflects weaker electric vehicle demand in the US and the need to protect North American manufacturing utilisation.

Volkswagen said the EV market continues to challenge the industry and requires measured decisions. The company will stop producing the ID.4 at Chattanooga and begin assembling the all-new second-generation Atlas from mid-April 2026.

Volkswagen ID.4 production has been strategically important because the model is the company’s top-selling EV in the US. However, the ID.4 sold 22,373 units in 2025, far below the Atlas, which sold 71,044 units and remained Volkswagen’s second-best-selling model for the past three years.

The decision shows how automakers are adjusting production footprints as EV adoption slows. US EV sales fell by 27% year on year to 216,300 units in the first quarter, creating pressure on manufacturers to rebalance plant capacity, dealer inventory and product planning.

Chattanooga Shift Prioritises Higher-Volume SUV Demand

The Chattanooga plant will now focus on the second-generation Atlas, a three-row sport utility vehicle with much stronger US sales momentum. This gives Volkswagen a clearer volume base in a market where larger SUVs remain commercially attractive.

The move is not a full retreat from the ID.4. Volkswagen said model-year 2026 ID.4 vehicles will remain available through current inventory, supporting US demand into 2027. The company also plans a future version of the ID.4 for North America, although details have not yet been disclosed.

Still, the production shift is significant. Automakers rarely remove capacity from a model unless demand, margin or manufacturing strategy has changed. In this case, Volkswagen appears to be choosing a higher-volume SUV platform over a slower-moving EV in the near term.

This reflects a wider industry trend. EV demand has become more uneven as consumers respond to vehicle prices, charging access, policy uncertainty and changing incentive structures. Automakers now need more flexible production strategies rather than relying on straight-line EV growth forecasts.

EV Slowdown Could Weigh on Battery Materials Demand

Volkswagen ID.4 production changes also matter for the battery materials supply chain. Lower EV output can reduce near-term demand for lithium, nickel, graphite, manganese, copper, aluminium and rare earth magnet materials linked to electric drivetrains and battery systems.

The effect will not come from Volkswagen alone. The bigger issue is that several automakers are reassessing EV production rates in response to slower consumer adoption. If this pattern continues, battery material demand growth may become more volatile than earlier industry forecasts suggested.

For suppliers, the shift creates a timing problem. Many battery, cathode, anode and recycling investments were planned around rapid EV market expansion. Slower model-level output can leave material producers exposed to weaker offtake, lower utilisation and price pressure.

At the same time, Volkswagen’s decision does not eliminate long-term EV demand. It shows that the transition may move in phases, with automakers balancing EVs, hybrids and combustion vehicles depending on regional demand. North America may therefore remain a more mixed powertrain market than China or parts of Europe.

The Metalnomist Commentary

Volkswagen’s ID.4 decision shows that EV strategy is now being tested by real factory economics. The energy transition is still moving forward, but automakers will increasingly prioritise models that protect utilisation, margins and supply-chain stability.

Ascend Elements Bankruptcy Exposes Pressure in Battery Recycling Market

Ascend Elements

Ascend Elements bankruptcy filing shows how difficult the battery recycling business has become as electric vehicle adoption slows in the US and Europe. The US battery recycler has filed for Chapter 11 bankruptcy and will use the court-supervised process to restructure liabilities while continuing normal operations.

Ascend Elements bankruptcy comes despite major commercial and government-backed support. The company said it had secured more than $2bn in commercial agreements and a $320mn grant from Poland, but these were not enough to overcome longstanding financial issues and outstanding liabilities.

The filing highlights a broader weakness in the battery recycling sector. Recyclers need steady end-of-life battery and production scrap feedstock, but slower EV growth has limited available material and made it harder to sell recovered products into battery supply chains.

Funding and Offtake Deals Failed to Offset Financial Pressure

Ascend had previously planned to develop cathode active material production in Hopkinsville, Kentucky. However, the company and the US Department of Energy agreed in March 2025 to cancel a $164mn grant for that project.

The company later received a $320mn grant from Poland in May 2025 to build a precursor cathode active material plant. That support showed continued policy interest in battery materials localization, especially in Europe.

Ascend also signed a five-year offtake agreement to supply Trafigura with 15,000t of lithium carbonate from 2027 to 2031. The agreement gave the company a future sales channel, but it did not solve its immediate balance-sheet pressure.

Slower EV Growth Weakens Recycling Economics

Ascend Elements bankruptcy reflects the timing problem facing battery recyclers. Many business models were built around rapid EV growth, rising battery scrap availability and strong demand for recycled lithium, nickel, cobalt and cathode materials.

But slower EV adoption has delayed feedstock growth and reduced market confidence. Without sufficient input material and reliable downstream demand, recyclers can struggle to operate at the scale needed to justify large processing and materials investments.

The pressure is not limited to Ascend. Texas-based recycler Ecobat is selling assets in the UK, France, Italy, Germany and Austria to focus on North America, showing that consolidation and retrenchment are spreading across the sector.

The Metalnomist Commentary

Ascend Elements bankruptcy shows that battery recycling is strategically important but commercially unforgiving. The winners will be companies with secured feedstock, disciplined capital spending and customers ready to buy recycled battery materials at scale.