Ford First-Quarter Sales Fell as Aluminium Supply and EV Weakness Hit Deliveries

Ford EV

Ford first-quarter sales fell in January-March as lower F-Series truck deliveries, weaker EV demand, and aluminium supply disruption weighed on the US automaker. Total vehicle sales declined by 8.8% on the year to 457,000 units.

Ford first-quarter sales were affected by production timing as the company worked to recover lost output tied to Novelis outage at its Oswego, New York, aluminium rolling facility. The disruption has exposed how dependent high-volume vehicle platforms are on stable aluminium sheet supply.

Ford first-quarter sales also reflected weaker electric vehicle momentum. Sales of all-electric and hybrid models fell by 35% to 48,000 units, while internal combustion engine vehicle sales declined by 4.3% to around 409,000 units.

F-Series Production Shows Aluminium Supply Chain Vulnerability

Ford’s F-Series truck sales fell by 16% on the year to 160,000 units in the first quarter. F-150 production declined by 11% to 137,700 trucks, while Super Duty output dropped by 17% to 74,900 units.

The decline matters because the F-Series is one of Ford’s most important profit engines. Any production disruption in the truck platform can have an outsized effect on revenue, margins, dealer inventory, and supplier scheduling.

The Novelis Oswego outage remains a key constraint. Ford expects the recovery in vehicle production to be weighted toward the second half of 2026, while warning that Novelis’ restart could be uneven.

Ford previously estimated that temporary aluminium sourcing costs could reach $1.5bn-2.5bn this year because of the Oswego fires. That cost pressure shows how one upstream rolling disruption can flow directly into automotive manufacturing economics.

EV Sales Weakness Adds Pressure to Ford’s Product Mix

Ford first-quarter sales were also hit by the company’s shift away from some EV production and the expiration of EV tax credits. Reduced availability of discontinued models added further pressure to deliveries.

SUV sales fell by 7.8% to 186,000 units, while Mustang sales rose by 50% to 14,000 units. This mixed performance shows that Ford’s portfolio remains uneven as the company balances combustion vehicles, hybrids, EVs, and high-margin trucks.

The EV decline is strategically important because automakers are still trying to manage battery costs, consumer demand, policy incentives, and production discipline. Lower EV volumes can affect demand for battery materials, power electronics, aluminium structures, copper wiring, and rare earth magnet supply chains.

For the wider metals market, the bigger lesson is clear. Automotive demand is not only shaped by consumers, but also by material availability, rolling capacity, battery economics, and policy support.

The Metalnomist Commentary

Ford’s results show that automotive production is now highly exposed to upstream material bottlenecks. The Novelis outage turned aluminium sheet supply into a direct constraint on truck output, while weaker EV sales added another layer of demand uncertainty.

Mercedes Alabama Auto Plant Investment Strengthens US SUV Manufacturing Base

Mercedes Alabama

Mercedes Alabama auto plant investment plans will expand the German automaker’s US production footprint through 2030. Mercedes-Benz announced on 31 March that it would invest $4bn in its Tuscaloosa, Alabama, sport utility vehicle plant.

The investment forms part of a broader $7bn US manufacturing plan. The Alabama facility produces Mercedes SUVs including the GLE, GLS and Maybach GLS, and also assembles the EQE and EQS electric SUVs.

Mercedes Alabama auto plant investment is strategically important because the Tuscaloosa site is already a major export platform. Mercedes exports about 60% of the vehicles produced there, making the plant part of both US manufacturing and global premium SUV supply.

Tuscaloosa Expansion Supports Premium SUV and EV Production

The Tuscaloosa plant has assembled 4.5mn vehicles since opening in 1997. That implies average production of about 160,700 vehicles per year, although Mercedes did not disclose current annual output.

The plant employs 5,800 people and remains one of Mercedes’ most important manufacturing assets outside Germany. The new spending should support capacity, process upgrades and future model flexibility.

Mercedes Alabama auto plant investment also keeps the company positioned in the large SUV segment, where US production offers logistical and market advantages. For electric SUVs, local assembly can also support regional supply-chain strategy and reduce exposure to trade friction.

Automotive Materials Demand Remains Tied to US Assembly Growth

The investment has direct implications for automotive materials demand. SUV production requires large volumes of steel, aluminium, copper, plastics, glass, electronic components and high-performance castings.

Electric SUV production adds another layer. Battery packs, power electronics, motors and charging systems increase exposure to copper, aluminium, lithium, nickel, graphite and rare earth magnets.

For suppliers, the key opportunity is not only higher vehicle output. It is the growing materials intensity of electrified premium vehicles, where lightweight structures, electrical systems and battery platforms carry more value per unit.

The Metalnomist Commentary

Mercedes’ Alabama investment shows that premium automakers still view US manufacturing as a strategic export and electrification base. The materials story will depend on how quickly SUV production shifts toward electric platforms and higher-value lightweight components.

Uber Rivian Robotaxi Partnership Signals New Demand for Lidar Minor Metals

Uber Rivian Robotaxi

Uber Rivian robotaxi partnership plans mark a renewed US push into autonomous vehicle deployment after years of setbacks across the sector. Uber will invest up to $1.25 billion in Rivian to place 50,000 autonomous robotaxis on the Uber platform from 2028, beginning in San Francisco and Miami.

The Uber Rivian robotaxi partnership will start with 10,000 midsize SUVs. The companies can later negotiate up to 40,000 additional vehicles from 2030, with purchases handled by Uber or its fleet partners.

The investment is tied to autonomy milestones, showing that Uber wants exposure to robotaxi growth without rebuilding its own self-driving division. For Rivian, the deal offers potential volume, investor momentum, and a clearer route to monetize its autonomous vehicle technology.

Rivian Autonomy Suite Adds Metals Exposure to Robotaxi Growth

Rivian will supply the robotaxis through its third-generation autonomy suite, launched in December 2025. The system uses cameras, radars, Lidar sensors, and Rivian’s own high-powered inference chips.

This technology stack makes the robotaxi business a materials story as well as a software story. Lidar-rich autonomous platforms increase demand for advanced semiconductors, optics, sensors, and specialty materials.

Minor metals such as gallium, indium, and germanium are especially relevant because they support components used in optoelectronics, power electronics, infrared sensing, and Lidar-related systems. As autonomous driving hardware becomes more complex, these materials gain strategic importance in the EV supply chain.

US Autonomy Push Follows China’s Lidar-Rich EV Trend

Uber’s move reflects a broader return of US interest in autonomous mobility. The company sold its self-driving division in 2020 after high costs and safety problems, but it is now using partnerships to re-enter the market.

Rivian’s use of Lidar places it closer to the hardware trend already visible in China, where carmakers have added Lidar to midrange EVs to differentiate vehicles in a crowded market. That trend has already drawn attention from suppliers expecting stronger demand for gallium, indium, and germanium.

The partnership also arrives as Rivian looks for new growth after deliveries declined last year. Alongside the robotaxi plan, Rivian is pushing its smaller R2 platform and expects to use LG Energy Solution’s 4695 cylindrical cells for future production.

The Metalnomist Commentary

The Uber Rivian robotaxi partnership shows that autonomous vehicles could reopen a new demand channel for specialty metals and sensor materials. If robotaxi fleets scale, the strategic bottleneck may shift from vehicle assembly to Lidar, chips, battery cells, and the minor metals behind advanced sensing systems.

Stellantis Net Loss Shows Cost of Resetting EV Strategy

Stellantis EV

Stellantis net loss reached €22.3bn in 2025 as the global automaker absorbed major charges linked to a strategic reset in electric vehicles. The result highlights how quickly automakers are reassessing electrification plans as customer demand, regulation, pricing, and capital discipline change across the global auto market.

Most of the Stellantis net loss came in the second half of the year, when the company reported a €20.1bn loss. Full-year charges reached €25.4bn, largely tied to what Stellantis described as a profound strategic shift to better match customer demand and regulatory realities.

The company’s brands include Jeep, Peugeot, and Vauxhall. Net revenues fell by 2pc from 2024 to €153.5bn, as foreign exchange pressure and first-half pricing declines outweighed gains from volume and product mix.

EV Supply Chain Resizing Drives Heavy Charges

Stellantis net loss reflects the financial cost of scaling back EV ambitions after earlier expectations proved too aggressive. The company said the charges include product plan changes, EV supply chain resizing, warranty provision adjustments, and previously announced workforce reductions.

The reset shows that automakers are moving from rapid EV expansion toward more flexible technology portfolios. Stellantis now wants to focus on customers’ freedom to choose from a full range of vehicle technologies, rather than relying on a faster linear shift toward battery electric vehicles.

This shift carries major implications for battery materials, power electronics, component suppliers, and EV manufacturing investments. If automakers slow or rebalance EV programs, suppliers exposed to batteries, motors, lightweight materials, and dedicated EV platforms may face weaker demand visibility.

Automakers Rebalance Electrification and Balance Sheet Risk

Stellantis plans to return to profitable growth in 2026 after absorbing the cost of what management called over-estimating the pace of the energy transition. The company will not pay an annual dividend in 2026 and has approved up to €5bn in hybrid bond issuance to protect its balance sheet.

This balance sheet response matters because automakers need capital for multiple technologies at once. Battery EVs, hybrids, combustion platforms, software, emissions compliance, and regional manufacturing all compete for investment. The challenge is no longer simply building EV capacity; it is allocating capital across uncertain demand pathways.

For the wider automotive supply chain, Stellantis’ reset is a warning signal. Electrification remains a long-term direction, but the transition is becoming less uniform, more regional, and more financially disciplined. Suppliers must prepare for a market where hybrid, EV, and combustion demand coexist longer than earlier forecasts suggested.

The Metalnomist Commentary

Stellantis’ 2025 loss shows that the energy transition is entering a harder capital cycle. The winners will not be the companies with the boldest EV targets, but those that manage technology flexibility, supply chain exposure, and balance sheet risk with discipline.

XTC GEM CAM feedstock deal tightens China’s battery materials supply chain

XTC

XTC GEM CAM feedstock deal marks a major step in securing China’s high-end battery materials supply. Under the XTC GEM CAM feedstock deal, XTC New Energy will lock in large volumes of cobalt, nickel and lithium inputs. This XTC GEM CAM feedstock deal supports long-term cathode active material output for NCM, LCO and LFP product lines. As a result, Chinese battery makers gain greater visibility on costs and availability during a volatile raw material cycle.

Long-term CAM feedstock deal anchors XTC’s growth strategy

XTC New Energy agreed to purchase 150,000 t/yr of CAM feedstock from GEM between 2026 and 2028. The package covers cobalt chloride, nickel sulfate, cobalt tetroxide, NCM precursor and lithium salts for large-scale cathode production. This diversified basket reduces single-material risk and helps XTC balance different chemistries across consumer and power batteries. The deal also deepens an existing partnership, signalling confidence in GEM’s ability to deliver consistent quality volumes. Consequently, both companies move closer to a vertically aligned, closed-loop battery materials ecosystem.

XTC has rapidly grown sales of lithium cobalt oxide on the back of device replacement cycles and AI-enabled electronics. Government subsidies that push consumers to upgrade phones and tablets are boosting high-end cobalt-rich cathode demand. Meanwhile, combined sales of NCM and LFP cathodes also rose, reflecting broader growth across energy storage and EV platforms. By locking in feedstock now, XTC can support more aggressive volume and product planning with key OEMs.

China CAM feedstock integration deepens links with global battery OEMs

The agreement reinforces China’s position at the centre of the global CAM and precursor value chain. GEM will channel critical precursors to XTC, which already supplies ATL, Samsung SDI, Murata, LG Chem and BYD. These relationships span mid to high-end consumer devices and extend into power lithium battery producers like CALB and CATL. Therefore, the enhanced feedstock pipeline will indirectly underpin cell production for phones, tablets, EVs and stationary storage worldwide.

Tighter integration between feedstock suppliers and cathode producers can also stabilise pricing and contract structures. Long-term supply deals encourage joint planning on capacity, quality and sustainability metrics, important for global OEM qualification. At the same time, dependence on Chinese CAM feedstock raises questions for western policymakers about diversification and supply security. However, until alternative precursor hubs reach scale, China’s integrated CAM ecosystem will remain a critical anchor for lithium-ion supply chains.

The Metalnomist Commentary

This agreement shows how Chinese CAM producers and recyclers are quietly locking in the next wave of battery growth. As XTC and GEM align on volumes and chemistries, their joint leverage over cobalt, nickel and lithium flows will rise. For non-Chinese OEMs, the deal underscores the urgency of building competitive precursor and CAM capacity outside China.

STMicro targets new sources of silicon chip demand

STMicro

STMicro is betting on new sources of silicon chip demand from AI data centres and advanced EV platforms. The company sees silicon and silicon carbide (SiC) devices as core growth engines, even as it trims some near-term capital spending. As a result, STMicro is repositioning its portfolio toward photonics, high-voltage power electronics and next-generation vehicle systems that can unlock new sources of silicon chip demand across several end markets.

Photonics and AI servers anchor new sources of silicon chip demand

STMicro is using silicon photonics to capture new sources of silicon chip demand from hyperscale AI data centres. In the third quarter, the firm reported rising orders for silicon photonics integrated circuit prototypes from its 300mm fabs. This confirms internal expectations that photonics ICs will become a meaningful revenue driver as AI server build-outs accelerate worldwide.

Meanwhile, the company is tightening its integration into the AI infrastructure ecosystem through the Starlight Consortium. The consortium connects substrate suppliers, device makers and system integrators to develop high-speed optical solutions for data centres, telecoms and automotive. In parallel, STMicro is collaborating with Nvidia on an 800V DC AI data centre architecture that combines SiC, gallium nitride (GaN) and silicon technologies. The firm has also demonstrated a GaN prototype with over 98pc conversion efficiency, underscoring how power density and efficiency now drive silicon chip demand as much as raw compute.

SiC, EV power electronics and a more selective capex strategy

STMicro is broadening SiC usage beyond traction inverters and onboard chargers to new power roles in active suspension inverters. This expands the addressable market in EVs just as advanced driver-assistance systems increase demand for sensors and control chips. However, weaker-than-expected EV programmes in Europe and China have delayed the full impact, forcing the company’s main automotive customer to cut orders.

Therefore STMicro is trimming near-term SiC capex as it transitions production from 150mm to 200mm wafers. The company will slow some investments in SiC conversion while maintaining its 300mm expansion plans in Agrate, Italy, and Crolles, France. These fabs continue to see solid order visibility, particularly for data-centre power modules and optical components. STMicro expects EV growth and SiC restocking to resume in 2026, once inventory drawdowns run their course and regional electrification policies translate into firmer demand.

The Metalnomist Commentary

STMicro’s push into photonics and SiC power devices shows how new sources of silicon chip demand are shifting toward AI infrastructure and complex EV systems. For the wider materials chain, this means sustained pull for high-purity silicon, SiC substrates and GaN epitaxy, even if near-term EV softness delays some projects. Suppliers that align with 300mm and 200mm wafer roadmaps and can support AI-class power densities will be best positioned as these new demand waves crystallise from 2026 onward.

Cyclic VAC US magnet recycling partnership boosts North American circularity

Cyclic Materials

The Cyclic VAC US magnet recycling partnership marks a major step toward a circular rare earth magnet supply chain in North America. Under a new 10-year exclusive deal, Cyclic Materials will recycle swarf from VAC’s Sumter, South Carolina magnet plant. As a result, the Cyclic VAC US magnet recycling partnership links cutting-edge US magnet manufacturing with low-carbon, recycling-based feedstock.

Building a circular rare earth magnet supply in the US

The Cyclic VAC US magnet recycling partnership will capture byproducts from VAC’s US production lines. VAC produces neodymium-iron-boron magnets for automotive, defense, industrial and renewable energy uses. Meanwhile, the Sumter facility will anchor long-term supply for General Motors’ EV platforms under a decade-long agreement.

Cyclic will process the swarf into recycled rare earth raw materials with a reported 75pc lower carbon footprint than mined material. In parallel, Cyclic plans to invest over $20mn in a Mesa, Arizona plant. That facility is designed to process 25,000 t/yr of end-of-life magnet components from early 2026. Together, these projects push US magnet recycling beyond pilots and into industrial scale.

VAC’s US growth links primary offtake and recycling loops

VAC’s US expansion combines primary offtake, federal funding and recycling partnerships into one integrated ecosystem. E-VAC, VAC’s US subsidiary, has secured more than $200mn from the US Defense and Energy departments. These funds support the Sumter plant, which will ramp magnet output through the decade.

At the same time, VAC signed an offtake agreement with Pensana for mixed rare earth carbonate from Angola’s Longonjo project. That deal will support eVAC’s magnet output rising from 2,000 t/yr to 12,000 t/yr by 2029. The Cyclic VAC US magnet recycling partnership adds a second feedstock leg, closing material loops around swarf and, in time, end-of-life magnets. Therefore, VAC’s model blends upstream mining offtake with downstream recycling to reduce dependence on Chinese supply.

The Metalnomist Commentary

This partnership shows how serious US and allied players have become about mine-to-magnet-to-recycle value chains. If Cyclic can scale its Arizona facility as planned, swarf and scrap could evolve from waste streams into strategic feedstock. For OEMs like GM, a resilient US magnet base that mixes primary and recycled material will be central to long-term EV and defense planning.

Stellantis SUV plant shutdown exposes parts shortage risk in US auto supply chains

Stellantis

The Stellantis SUV plant shutdown in Warren highlights growing fragility in US auto supply chains. Stellantis idled its Warren, Michigan truck plant for three weeks because of a continuing parts shortage. As a result, production of Jeep Wagoneer and Grand Wagoneer SUVs will pause during the outage window.

Parts shortages hit Jeep Wagoneer production plans

The shutdown at Warren directly disrupts Jeep Wagoneer and Grand Wagoneer output during a key planning period. The company has not specified whether the Stellantis SUV plant shutdown links to supply issues after the September fire at Novelis' Oswego hot-rolling mill. However, the Oswego facility is a major supplier of automotive-grade aluminium sheet, which remains critical for large SUV platforms. The lack of clarity underscores how opaque component flows can complicate risk management for automakers and suppliers.

Meanwhile, Stellantis still plans to expand its US footprint despite the temporary halt. The group recently announced a $13bn US investment package over four years, targeting a 50pc increase in vehicle production. The plan includes $100mn to retool the Warren plant for a new large SUV that will offer both internal combustion and electric variants. Therefore, the Stellantis SUV plant shutdown sits awkwardly alongside a strategy built on higher output and electrification.

Supply chain stress tests the EV and large SUV strategy

The Warren outage serves as a real-time stress test of Stellantis’ North American manufacturing strategy. Large SUVs are a profit pillar, so any extended Stellantis SUV plant shutdown risks lost margin and dealer inventory imbalances. At the same time, retooling for electric and hybrid large SUVs will likely increase dependence on specialised materials such as aluminium, battery metals and power electronics. These shifts make secure supply of rolled products and critical components even more strategic.

As automakers push for higher utilisation, parts disruptions can cascade quickly across model lines. However, the three-week Warren pause may also give Stellantis and its suppliers time to rebalance flows and rebuild safety stocks. Investors and materials suppliers will watch closely whether the company diversifies key inputs, signs longer-term supply contracts, or localises more upstream capacity after this incident.

The Metalnomist Commentary

The Warren case shows how a single plant outage can ripple through premium SUV and aluminium value chains. For metals producers, it is a reminder that OEM electrification plans mean little without robust, diversified midstream processing. The next phase of the US auto transition will likely favour suppliers that can offer both volume and resilience under stress.

Aludyne Linamar auto parts deal reshapes North American chassis supply

Aludyne

The Aludyne Linamar auto parts deal marks a significant reshaping of North America’s chassis and structures supply chain. Aludyne will sell most of its North American precision casting, machining and manufacturing plants to Linamar for $300mn, with closing expected within 30 days. The transaction transfers a broad footprint of Tier 1 assets at a time when the regional automotive sector faces EV uncertainty and capacity rebalancing. As a result, the Aludyne Linamar auto parts deal strengthens Linamar’s position with OEMs while allowing Aludyne to exit capital-intensive operations.

Linamar deepens chassis portfolio with Aludyne plants

The Aludyne Linamar auto parts deal will fold Aludyne’s US and Mexican plants into Linamar’s structures and chassis division. Linamar gains established North American production of knuckles, subframes, control arms and axle housings, all core safety-critical components. This expansion enhances Linamar’s ability to offer integrated chassis solutions, which helps automakers rationalise suppliers and reduce logistics complexity.

Meanwhile, the Aludyne assets complement Linamar’s recent move into Europe through the purchase of George Fischer’s iron foundry in Leipzig. Together, these acquisitions expand Linamar’s geographic and product reach across cast and machined suspension and structural parts. Therefore, the company positions itself as a global Tier 1 partner able to support multi-platform programmes across internal combustion, hybrid and battery electric vehicles.

EV headwinds force rethink of giga-casting strategy

At the same time, Linamar is trying to divest its aluminium die giga-casting plant in Welland, Ontario, completed in 2024. That facility was originally designed to make large structural castings for EV platforms, targeting long-term supply to major OEMs. However, the end of US EV tax credits under President Donald Trump has weakened demand visibility for high-volume EV structures. This shift explains why the Aludyne Linamar auto parts deal now looks more attractive than betting solely on giga-casting growth.

As a result, Linamar appears to be pivoting back toward a diversified mix of cast and machined chassis parts, with less exposure to a single EV-heavy technology bet. The acquisition balances risk by anchoring the group in essential underbody and suspension components that remain necessary across all powertrains. For automakers, a stronger Linamar could offer greater resilience in North American sourcing, even as EV policy volatility complicates long-term platform planning.

The Metalnomist Commentary

The Aludyne Linamar auto parts deal underlines how policy-driven EV headwinds are reshaping capital allocation in the auto supply chain. Tier 1 suppliers are moving away from single-technology bets toward diversified portfolios of foundational components and regional footprints. For metals suppliers and casting houses, the key will be aligning product mix with flexible, multi-powertrain platforms rather than relying on overly optimistic EV adoption curves.

Neo Estonia rare earth magnet plant anchors Europe’s mine-to-magnet strategy

Neo

Neo Estonia rare earth magnet plant is emerging as a key pillar in Europe’s drive to localise magnet supply. Neo Performance Materials has officially opened the Neo Estonia rare earth magnet plant in Narva, with phase 1 capacity of 2,000 t/yr. The Neo Estonia rare earth magnet plant is designed to scale up to 5,000 t/yr, directly targeting fast-growing EV and industrial demand.

Neo Estonia rare earth magnet plant secures EV-grade offtake and EU support

The new plant has already shipped sintered magnet samples that meet EV traction motor grade standards. Neo produced around 18,000 assembled magnet pieces during initial runs, demonstrating commercial readiness for Europe’s automotive supply chain. As a result, a top European traction motor supplier has committed to buy 35pc of phase 1 output.

The Neo Estonia rare earth magnet plant also benefits from early support under the EU’s Just Transition fund. This political backing signals Brussels’ intent to build strategic magnet capacity closer to European automakers. Meanwhile, the phased design allows Neo to ramp from 2,000 t/yr to 5,000 t/yr as demand for permanent magnets in EVs, wind turbines and industrial motors accelerates.

Neo is building more than a stand-alone factory in Narva. The company already operates a 3,000 t/yr light rare earth separation plant at Silmet, west of Narva. Therefore, the Estonia hub brings Europe closer to an integrated mine-to-magnet route, reducing over-reliance on Chinese rare earth processing and magnet supply.

Bosch deal accelerates Neo’s mine-to-magnet roadmap beyond Estonia

Neo’s newly announced multi-year contract with Bosch significantly strengthens visibility for future magnet volumes. Under the agreement, Neo will reserve “significant annual magnet production capacity” for the German manufacturer. This commitment supports long-term planning and underpins the business case for expanding magnet capacity beyond Estonia.

At the same time, the Bosch agreement hastens the roadmap for Neo’s next magnet plants in Europe or North America. In addition, the deal positions Neo as a strategic partner for Tier 1 auto suppliers seeking secure rare earth magnet sourcing. For OEMs facing tight margins on EV platforms, diversified magnet supply with transparent ESG credentials is becoming a competitive advantage.

Neo’s strategy of combining separation capacity at Silmet with downstream magnet production in Narva aligns with broader mine-to-magnet ambitions in the Atlantic region. While raw material security still depends on upstream feedstock, Europe now gains an important building block in a more resilient rare earth supply chain.

The Metalnomist Commentary

Europe’s long-discussed mine-to-magnet vision is finally moving from PowerPoint to production lines in places like Narva. Neo’s Estonia complex shows how modest-scale, strategically placed magnet plants can de-risk supply for EV and industrial customers. The real test will be whether upstream feedstock, policy support and OEM offtakes scale fast enough to match China’s entrenched dominance.

Heavy rare earth free NdFeB alloy from VAC targets China-independent magnet supply

Vacuumschmelze

Heavy rare earth free NdFeB alloy from VAC marks a major shift in Western magnet strategy. German producer Vacuumschmelze has launched VACODYM 902 TP, a neodymium-iron-boron grade that avoids dysprosium and terbium. As a result, the heavy rare earth free NdFeB alloy offers high performance while reducing exposure to increasingly volatile heavy rare earth markets.

VACODYM 902 TP extends VAC’s family of reduced-HRE NdFeB grades. The new heavy rare earth free NdFeB alloy achieves a remanence of at least 1.40 Tesla and a coercivity of at least 1,190 kA/m. These metrics place it firmly in the high-performance segment for traction motors and industrial drives. Therefore, OEMs gain an alternative to conventional NdFeB magnets that rely on dysprosium and terbium to maintain coercivity at elevated temperatures.

Western buyers have sought heavy rare earth free NdFeB alloy solutions for several years. Dysprosium and terbium production still concentrates overwhelmingly in China, which creates structural supply risk. Meanwhile, policymakers and OEMs push for magnet designs that reduce heavy rare earth intensity without sacrificing performance. VAC’s new grade directly responds to this pressure and is fully produced within Western supply chains.

Export controls and price spikes intensify heavy rare earth risk

China’s export controls on certain rare earths have tightened heavy rare earth availability for Atlantic buyers since April. Spot prices for dysprosium and terbium outside China surged immediately after the controls. European terbium oxide prices rose by 268pc between 1 April and early September, reaching $3,300-3,800/kg cif Europe. As a result, magnet makers now face severe raw material cost volatility and procurement uncertainty.

This environment accelerates the search for alternatives to heavy rare earth dependent NdFeB grades. VAC explicitly cites volatile raw material costs and market uncertainty as major supply chain challenges. Therefore, its new alloy is positioned as a “geopolitically independent alternative” to traditional heavy rare earth based solutions. The goal is clear: decouple magnet performance from a small, politically sensitive set of Chinese-controlled metals.

Other Western players are also moving to build ex-China heavy rare earth capacity. Lynas has started small-scale dysprosium and terbium oxide production in Malaysia. US producer Energy Fuels has produced pilot-scale dysprosium and plans larger-scale dysprosium and terbium output in Utah by late 2026. MP Materials supplies a heavy rare earth concentrate, SEG+, containing dysprosium and terbium for downstream processors.

Western magnet supply chains pivot toward diversified feedstocks

VAC’s launch of a heavy rare earth free NdFeB alloy fits a broader diversification trend. Western magnet producers and their customers want designs that either use fewer heavy rare earths or none at all. This shift complements efforts to develop new mining, separation and recycling capacity outside China. It also supports OEM strategies to meet ESG targets and reduce geopolitical risk in EV and wind supply chains.

VAC emphasises the importance of resilient, regionally anchored magnet value chains. Its new alloy, fully produced in the West, supports that objective. However, performance in real-world motor and generator platforms will ultimately determine adoption. Automotive and industrial customers will test VACODYM 902 TP against existing HRE-containing grades on efficiency, temperature stability and cost.

If performance proves comparable, heavy rare earth free NdFeB alloy families could gain rapid traction. That would gradually reduce Western dependence on Chinese dysprosium and terbium, even as new ex-China projects ramp up. In parallel, recycling and alternative motor topologies may further ease heavy rare earth demand over the next decade.

The Metalnomist Commentary

VAC’s move shows how magnet technology, not only mining, will shape the next phase of the rare earth race. A commercially viable heavy rare earth free NdFeB alloy gives Western OEMs a real lever to hedge against Chinese export controls and price spikes. Market participants should watch qualification timelines closely, because large-scale adoption could materially shift dysprosium and terbium demand forecasts.

Comexport to assemble GM Chinese EVs in Brazil

Comexport

Comexport to assemble GM Chinese EVs marks a major shift in Brazil’s role within global EV supply chains. The Brazilian foreign trade firm will assemble GM’s new Spark EUV, a Chinese electric vehicle sold under the Chevrolet brand, at the former Ford-owned PACE industrial hub. As a result, the Comexport to assemble GM Chinese EVs deal turns a decommissioned plant into a regional platform for imported Chinese SKD units.

The project uses a flexible contract-assembly model rather than an equity partnership or joint venture. Comexport will import semi-knocked-down Spark units from China, already welded, painted and partially manufactured, and then complete final assembly at PACE. Meanwhile, GM will supervise production quality and pay Comexport per unit, ensuring OEM control over standards while limiting capital exposure. Therefore, the Comexport to assemble GM Chinese EVs contract gives GM fast market access with lower fixed costs.

PACE becomes Brazil’s first multi-brand EV assembly hub

PACE will emerge as Brazil’s first and only multi-brand vehicle assembly line once all client negotiations close. The plant, acquired by Comexport in 2024 from the state of Ceara, will serve at least three carmakers, with GM confirmed as the first anchor client. Initially, the facility will operate below its 80,000 vehicle per year capacity and gradually ramp up as the local supply chain matures.

GM plans for all Spark units sold in Brazil to be assembled as SKD imports over time. However, the company will first bring in fully built consumer-ready vehicles while Comexport stabilises processes and tooling. As the supply chain “nationalises”, more Brazilian auto-parts suppliers will enter the platform, supporting localisation targets and potentially unlocking tax and industrial policy incentives. This phased approach reduces ramp-up risk while anchoring long term EV manufacturing in northeastern Brazil.

Chinese EV platforms deepen their footprint in Latin America

The project highlights how Chinese EV platforms penetrate Latin America via global OEM brands and contract assemblers. The Spark is a Chinese-developed model from the joint venture between GM, SAIC and Wuling, sold domestically as the Baojun Yep Plus. Therefore, Brazilian consumers will buy a Chevrolet-badged vehicle that originates from a Chinese EV architecture. PACE will exclusively assemble hybrids and EVs, increasing the likelihood that future clients will also be Chinese or China-linked automakers.

For GM, this structure supports a broader strategy of leveraging Chinese small-EV know-how while maintaining brand control in key emerging markets. For Brazil, the Comexport to assemble GM Chinese EVs model could accelerate EV adoption, technology transfer and supplier upgrading, especially in battery, electronics and lightweight components. However, policymakers and local OEMs will also scrutinise the impact on domestic manufacturers and industrial competitiveness as Chinese-origin platforms gain share.

The Metalnomist Commentary

This deal illustrates how decommissioned legacy plants can be repurposed into EV assembly hubs bound into China-centric technology networks. By combining SKD imports, contract assembly and gradual localisation, Comexport and GM create a flexible template that other brands may copy across Latin America. Market participants should watch how quickly local suppliers move into higher value EV components and how Brazil balances openness to Chinese platforms with support for domestic champions.

Nemak acquires GF Casting Solutions automotive business

Georg Fischer

Nemak acquires GF Casting Solutions automotive business to accelerate its EV strategy and expand globally. The Nemak acquires GF Casting Solutions automotive business deal totals $336mn and adds eight plants. As a result, Nemak acquires GF Casting Solutions automotive business capacity in HPDC for EV structures and chassis.

Strategic rationale: EV push and global reach

Nemak strengthens its EV exposure with premium European and Chinese OEM access. The acquisition covers plants in Austria, China, Romania, and Germany. Meanwhile, Nemak will also control GF’s new Augusta, Georgia facility. The US site targets production start in 2027.

Capacity, customers, and product mix shift

The deal adds high-pressure die casting capacity across aluminum and magnesium. Therefore, Nemak can shift from ICE powertrain parts toward structural and chassis castings. GF Casting Solutions reports 80% of offerings tied to e-mobility and structures. This alignment supports EV battery housings, motor housings, and lightweight subframes.

Nemak gains geographic diversification and scale synergies. The company expects supply chain efficiencies across Europe, China, and North America. Furthermore, the added footprint enhances customer intimacy and program launches. Management plans to integrate technology, quality systems, and program management.

Governance and scope remain clearly defined. The transaction excludes GF’s aerospace and IGT die-casting units. It also excludes the company’s iron foundry operations. Closing is planned for the second half of 2025, subject to approvals.

The Metalnomist Commentary

This move consolidates HPDC leadership as EV platforms demand larger, integrated castings. Watch for Augusta ramp timing and European program wins to drive returns. Synergies will hinge on load balancing, scrap reduction, and multi-alloy flexibility across sites.

GEM Ultra-High Nickel Precursor: Mass Shipments Begin from Jinmen

GEM

GEM ultra-high nickel precursor shipments have started, marking a scale breakthrough in EV battery materials. The company will ship 2,000 t/month from its Jinmen plant. As a result, the GEM ultra-high nickel precursor will supply major international battery makers. The milestone positions the GEM ultra-high nickel precursor at the center of next-gen high-energy cathode supply.

Core–shell design targets energy and safety

GEM launched a 9-series quaternary core–shell precursor at mass scale. The three-layer structure upgrades a traditional single-layer design without changing metal ratios. Therefore, manufacturers can raise energy density, cycle life, and safety. Nickel-rich NCM and NCA lines benefit, while safety has long challenged high-nickel chemistries. Meanwhile, GEM’s 8-series core–shell debuted in 2022, with the 9-series unveiled in April.

Shipments accelerate premium cathode supply chains

GEM will dedicate all 2,000 t/month to leading global firms. This supports gigafactory ramps as EV ranges push higher. Moreover, the material suits solid-state batteries under active development. GEM remains a top cobalt refiner and CAM precursor producer. Ternary precursor shipments reached 189,000t in 2024, up 5pc year over year. Consequently, downstream buyers gain volume and design flexibility without requalifying metal blends.

Ultra-high nickel platforms expand OEM options under cost and tariff pressure. However, qualification, safety validation, and powder morphology control remain critical. As a result, process stability at Jinmen will determine long-run competitiveness. Battery makers will watch swelling, thermal runaway margins, and impurity management.

The Metalnomist Commentary

GEM’s core–shell architecture balances high nickel with durability and safety, which buyers demand. Watch how quickly 9-series wins long-term offtakes beyond pilot lines. If Jinmen sustains quality at volume, rivals must match layered particle engineering, not just nickel content.

Uber Lucid Nuro EV robotaxi to launch in US, scale globally

Uber & Lucid

Uber will deploy a new robotaxi fleet with Lucid and Nuro starting next year. The program launches in a major US city using Lucid Gravity SUVs. The Uber Lucid Nuro EV robotaxi targets scale and lower downtime with a 450-mile range.

Technology, launch, and scale

Lucid, Nuro, and Uber formed an exclusive robotaxi program for Uber's platform. Uber or partners will operate at least 20,000 vehicles over six years. Nuro Driver provides Level 4 autonomy for the Gravity model. The first prototype already operates autonomously at Las Vegas proving grounds.

Lucid selected Gravity to maximize availability with 450 miles per charge. Longer range reduces charging downtime during peak ride demand. Therefore, utilization improves and unit economics may strengthen. However, safety validation and regulatory approvals remain critical gates.

Investment, infrastructure, and supply chain

Uber plans to invest hundreds of millions in Lucid and Nuro. The companies aim to build fast charging and service infrastructure. Meanwhile, Uber Lucid Nuro EV robotaxi deployment could pressure battery supply chains. Demand for high-nickel cathodes and aluminum body materials may rise.

Global rollout hinges on scaling autonomy and local compliance. As a result, deployment will expand beyond the United States in stages. The Uber Lucid Nuro EV robotaxi may catalyze urban fleet electrification. Success could spur similar alliances among automakers and platforms.

The Metalnomist Commentary

This program pairs a long-range EV with mature Level 4 stacks to chase uptime. Watch local permitting, charger density, and service models as scale grows. Procurement discipline will matter if component inflation reappears during the ramp.

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.

Neo rare earth magnet orders expand European EV supply

Neo Performance Materials

European local content and timeline

Neo rare earth magnet orders expand the company’s European footprint. The new contracts cover EV traction motors from a top Tier 1. Neo rare earth magnet orders will be supplied from Narva, Estonia. The plant is already shipping samples to awarded platforms. Commercial deliveries begin in mid-2026.

Neo’s Narva facility is the first operational sintered magnet plant outside Asia. It will serve European and North American customers across EVs, tools, and offshore wind. It starts with 2,000 tonnes per year capacity, scaling to 5,000 tonnes. Initial production targets traction and non-traction applications to meet localized sourcing needs.

Strategic implications for EV supply chains

Localized magnets reduce logistics risk and lead times for European automakers. They also diversify supply away from single-region concentration. Neo rare earth magnet orders deepen customer access ahead of mid-2026 deliveries. Narva’s scale-up will hinge on qualification, yield, and consistent NdFeB performance. Therefore, Tier 1 partners gain a regional option for critical magnet components.

The Metalnomist Commentary

Neo’s Narva plant converts policy tailwinds into bankable contracts. The next catalyst is PPAP-style qualification across multiple platforms. Watch ramp metrics, rare earth pricing, and energy costs as capacity moves toward 5,000 t.

GM to Invest $888M in NY Engine Plant for Sixth-Generation V-8 Production

General Motors

Tonawanda Facility to Support Internal Combustion and EV Manufacturing

GM to invest $888M in NY engine plant to produce its sixth-generation V-8 engines, reaffirming its commitment to high-performance internal combustion powertrains even amid its EV transition. The investment, directed to the Tonawanda Propulsion Plant in Buffalo, New York, is GM’s largest-ever commitment to an engine facility. Production of the new V-8 engines will begin in 2027, while the plant will continue assembling fifth-generation models in the interim.

This investment will fund the installation of new machinery, tools, and production equipment to support GM’s latest truck and SUV engine architecture. The sixth-generation V-8s are expected to power future full-size pickups and sport utility vehicles, key revenue drivers for the automaker. As GM invests $888M in NY engine plant, it underscores a dual-track strategy to sustain its internal combustion portfolio alongside electrification.

Prior EV Commitment Enhances Tonawanda's Strategic Role

The Tonawanda plant is already part of GM’s EV supply chain strategy. In 2023, GM committed $300 million to produce electric drive units at the facility through a deal with the United Auto Workers (UAW). With the new V-8 investment, Tonawanda becomes a hybrid production site, supporting both traditional and electric powertrain technologies. This dual-capability model reflects GM’s effort to balance market demand during a gradual transition from ICE to EV platforms.

As GM invests $888M in NY engine plant, it signals that the company sees continued demand for gasoline-powered vehicles—particularly in North America—while maintaining flexibility to scale EV output.

The Metalnomist Commentary

GM’s record-setting investment at Tonawanda highlights a pragmatic approach to powertrain diversification. By enhancing its ICE engine capabilities while scaling EV drive unit output, GM is hedging against market volatility and regulatory shifts in the U.S. automotive sector.

Lopal and Cornex Sign Landmark LFP Supply Deal to Strengthen China’s Battery Chain

Lopal

Strategic Agreement Secures 150,000t of LFP Through 2029

Lopal and Cornex have signed a major lithium iron phosphate (LFP) supply deal, securing 150,000 tonnes of LFP cathode active material over five years. The Focus Keyphrase "LFP supply deal" reflects a growing trend of long-term procurement strategies across the EV battery value chain.

Under the agreement, Jiangsu Lopal will deliver LFP to three Cornex subsidiaries in Wuhan, Xiaogan, and Yichang between 2025 and 2029. The deal is valued at over 5 billion yuan ($694 million), marking one of China’s largest bilateral LFP commitments to date. This collaboration comes as LFP demand surges in both domestic and export EV markets.

Lopal Expands Production Footprint Across China and Indonesia

Lopal has rapidly scaled its LFP production capabilities following its acquisition of the LFP business from Shenzhen BTR New Energy Material. It now operates multiple LFP plants across Jiangsu, Shandong, Tianjin, Sichuan, and Hubei, giving it geographic reach and production redundancy.

In 2024, Lopal’s LFP output surged to 184,697 tonnes, a 56% increase from the previous year, with sales rising 65% to 178,287 tonnes. Lopal has also begun overseas expansion, completing the first 30,000 t/yr phase of an Indonesian plant, with a second 90,000 t/yr phase in planning. These moves position Lopal as a global LFP leader with diversified supply capabilities.

Term Contracts Signal Confidence from Global OEMs

Lopal has not only secured deals with domestic players but also signed term supply contracts with Ford and LG Energy Solution. These partnerships highlight Lopal’s growing credibility in supplying high-volume, high-quality LFP material for global EV platforms.

Meanwhile, Cornex—formally Chuneng—is increasing battery production in central China, supported by reliable LFP sourcing. The LFP supply deal ensures material stability for future gigafactory-scale battery production, a critical factor amid rising input volatility and tightening market conditions.

The Metalnomist Commentary

The LFP supply deal between Lopal and Cornex reflects the tightening integration of China’s battery supply chain, with long-term contracts emerging as a buffer against future material risk. As global automakers seek cobalt-free alternatives, LFP’s role will only grow, and producers like Lopal are positioning themselves at the center of this transition.

Stellantis Solid-State Battery Progress Advances with Factorial Validation

Factorial Energy

Stellantis solid-state battery progress has reached a major milestone as its partner Factorial Energy successfully validated automotive-scale solid-state battery cells. This development strengthens Stellantis goal of integrating next-generation batteries into vehicles by 2026.

Validated Cells Offer High Energy Density and Fast Charging

The newly validated cells deliver an impressive energy density of 375Wh/kg and can fast charge from 15% to 90% in just 18 minutes. These figures highlight the potential for significant improvements in electric vehicle (EV) range and charging convenience. The validation confirms the scalability of Factorial’s solid-state battery technology for automotive applications.

Stellantis, which invested $75 million in Factorial in 2021, views the collaboration as central to its electrification roadmap. The validated battery cells will power a demonstration fleet by 2026, showcasing the performance and safety of solid-state chemistry over conventional lithium-ion systems.

Design Collaboration Targets Weight and Efficiency Gains

Stellantis and Factorial are also focusing on optimizing battery pack architecture through joint engineering work. The goal is to reduce system weight and enhance efficiency—key factors in improving vehicle range, handling, and energy management.

This partnership exemplifies a growing trend among automakers to co-develop advanced battery platforms with startups. Stellantis is betting on solid-state batteries to gain a competitive edge in EV performance, safety, and manufacturability.

The Metalnomist Commentary

The Stellantis solid-state battery progress marks a turning point in commercializing next-gen EV batteries. With validation secured, the Stellantis–Factorial alliance positions itself among leaders aiming to bring high-density, fast-charging solid-state solutions to market within the decade.