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.

UCB Power BESS Production Gains Tax Support in Brazil

UCB Power

UCB Power BESS production will receive tax support as Brazil seeks to expand domestic manufacturing of battery energy storage systems. The Brazilian battery producer will benefit from reduced import tariffs on foreign components used in production.

UCB Power BESS production adds another industrial layer to Brazil’s growing energy storage market. The incentives will be administered through the Manaus Free Trade Zone framework, although specific tariff reductions have not been disclosed.

UCB Power BESS production also has implications for critical mineral demand. Lithium-ion storage systems require materials including lithium, nickel, cobalt, manganese, graphite, copper and aluminium across cells, electrical systems and enclosures.

The policy therefore supports more than battery assembly. It could help Brazil gradually build a domestic energy storage ecosystem around renewable power, grids and industrial electricity management.

Tax Incentives Strengthen Domestic Battery Manufacturing

Brazil’s Manaus Free Trade Zone provides tax incentives intended to encourage industrial production in the country’s northern region.

UCB Power will gain lower import costs for foreign components required in BESS manufacturing. This can improve the competitiveness of domestic production while Brazil develops more local supply capability.

The incentives remain subject to standard requirements within the Manaus framework, including environmental and research obligations.

Battery storage manufacturing remains dependent on imported cells, materials and electronic components in many emerging markets. Lower tariffs can therefore reduce the cost disadvantage faced by local manufacturers during the early stages of industry development.

UCB already operates battery factories in Manaus and Extrema, Minas Gerais. The company says its portfolio represents more than 7.8GWh of installed capacity.

That existing manufacturing base gives UCB a stronger position to expand into grid-scale and industrial energy storage as Brazilian electricity demand evolves.

BESS Growth Could Create New Critical Mineral Demand

Battery energy storage is becoming increasingly important as power systems integrate more intermittent renewable generation.

BESS installations can store electricity when supply is abundant and discharge it when demand rises, improving grid flexibility and helping industrial users manage electricity costs.

Lithium-ion technology currently dominates the market, creating demand across a broad range of battery materials.

For Brazil, this creates an opportunity to connect domestic battery manufacturing with its substantial mineral resource base. The country has resources across lithium, nickel, manganese and other materials relevant to energy storage.

However, mineral availability alone will not create an integrated battery industry. Brazil will need refining, active materials production, cell manufacturing and recycling capacity if it wants to capture more of the value chain.

Supporting BESS assembly is therefore an early step toward a broader industrial ecosystem rather than the endpoint.

The Metalnomist Commentary

Brazil has the mineral resources and renewable power base to build a larger battery industry, but the missing link remains downstream processing and cell production. UCB’s expansion can help create domestic demand that makes those investments more commercially attractive.

GM Redwood Battery Storage Project Extends EV Battery Value Chain

BESS

GM Redwood battery storage project will deploy repurposed electric vehicle battery packs at a General Motors plant in Michigan, extending the useful life of batteries before final recycling.

GM Redwood battery storage project will combine 100 reused EV battery packs into a 1.5MW/7.2MWh battery energy storage system. The installation will provide dispatchable power and help reduce electricity costs at the manufacturing site.

GM Redwood battery storage project is significant because it connects battery manufacturing, vehicle use, second-life energy storage and materials recovery within one supply chain. Redwood estimates the system will save more than $3mn in electricity costs over its operating life.

The project also shows how retired EV batteries can remain economically valuable even after they no longer meet automotive performance requirements.

Second-Life Batteries Add Value Before Recycling

EV batteries typically retain significant usable capacity when they are removed from vehicles. That remaining energy storage capability can support stationary applications where weight and space are less restrictive than in automotive use.

Repurposing packs for BESS applications can therefore delay recycling while extracting additional economic value from the battery.

For industrial facilities, storage systems can help manage peak electricity demand, provide backup power and shift energy consumption toward lower-cost periods.

The Michigan installation gives GM a direct opportunity to reduce plant electricity costs using batteries already linked to its own vehicle ecosystem.

This model also reduces the need for newly manufactured cells in some stationary storage applications. That can lower incremental demand for lithium, nickel, cobalt, graphite and other battery materials.

However, second-life systems still require testing, battery management and safety controls because used packs can have different degradation histories and performance characteristics.

Redwood Builds Closed-Loop Battery Supply Chain With GM

Redwood's relationship with GM extends across multiple stages of the battery lifecycle. The recycler handles manufacturing scrap, end-of-life EV packs and now second-life energy storage deployment.

Redwood has already received more than 28,000t of material from GM, with another 10,000 EV battery packs expected to enter the pipeline.

The company also works with Ultium Cells, GM's joint venture with LG Energy Solution, to recycle battery production scrap from facilities in Ohio and Tennessee.

This creates a more integrated materials loop. Manufacturing scrap can return quickly to recycling, while vehicle batteries can first enter stationary storage before eventually being processed for material recovery.

The approach could become increasingly important as EV battery volumes grow. Recycling alone captures raw materials, but second-life deployment can add another revenue stage before final recovery.

For automakers, that can improve battery economics while strengthening access to recycled lithium, nickel, cobalt and copper over the longer term.

The Metalnomist Commentary

GM and Redwood are showing that the battery circular economy does not begin with recycling. Second-life storage can create an additional commercial stage between vehicle use and materials recovery, improving both battery economics and supply-chain efficiency.

Xingtai VRFB Stack Facility Nears Start-Up as Vanadium Storage Demand Rises

Xingtai Meifan Energy Storage

Xingtai VRFB stack facility is nearing commercial start-up in Hebei province as China expands manufacturing capacity for long-duration energy storage. Xingtai Meifan Energy Storage has invested 1.25bn yuan in the 2GW stack production plant.

Xingtai VRFB stack facility development is strategically important because stack production remains one of the largest cost components in vanadium redox flow battery systems. Large-scale domestic manufacturing could further reduce costs and accelerate deployment.

Xingtai VRFB stack facility preparations are close to completion. Cutting lines for proton exchange membranes and carbon felt have entered trial operation, while installation of key equipment on the automated stack production line is in its final stage.

The plant could begin operations around the end of June, adding significant new capacity to China's already fast-growing VRFB manufacturing base.

Localised Stack Production Reduces VRFB Costs

VRFB system economics depend heavily on electrolyte and stack costs. Electrolyte accounts for around 50% of total system cost, stacks for about 30% and other components for the remaining 20%.

Historically, stack costs represented as much as 40% of total system expenditure. Greater localisation and scale in separators, bipolar plates, carbon felt and other core components have gradually reduced that share.

Xingtai Meifan's new facility reinforces this trend. Automated manufacturing and domestic sourcing can lower unit costs while improving consistency and production speed.

China has already developed a fully localised VRFB stack supply chain. Commercial deployment of 100kW-class stacks and the expansion of large energy storage projects are helping the sector move toward industrial-scale production.

This is important because VRFBs compete differently from lithium-ion batteries. They offer long cycle life, high safety and the ability to scale energy capacity separately from power capacity.

These characteristics make VRFBs particularly attractive for grid applications requiring long-duration storage rather than short-duration peak balancing.

Vanadium Demand Gains New Structural Support

Growth in VRFB deployment is creating a new source of vanadium demand outside traditional steelmaking.

China's VRFB sector is expected to consume around 40,000t of V2O5 equivalent in 2026 based on the current pipeline of planned and ongoing projects.

This demand could become increasingly important for vanadium producers. Steel remains the dominant end-use market, but energy storage offers a new structural growth channel.

Electrolyte demand is particularly relevant because VRFB systems use large quantities of dissolved vanadium. Larger storage durations require more electrolyte, meaning vanadium consumption rises with total energy capacity.

The technology's aqueous electrolyte also gives VRFBs an inherent safety advantage for stationary storage. This can be important for utilities, industrial sites and grid operators managing fire risk.

As stack costs decline, electrolyte pricing will become an even larger factor in total system economics. That could strengthen the connection between vanadium prices and the competitiveness of VRFB projects.

The Metalnomist Commentary

China's VRFB expansion is turning vanadium into an energy storage material as well as a steel alloy. If stack costs keep falling, electrolyte demand could become one of the most important new sources of structural vanadium consumption.

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.

BTR Anode Capacity Expansion Strengthens China’s Battery Materials Base

BTR

BTR anode capacity is expanding again as the Chinese battery materials producer starts construction of a new 120,000 t/yr anode material project in Changzhou, Jiangsu province. The project will deepen the city’s role as BTR’s largest anode production hub in China.

BTR anode capacity in Changzhou already includes an 80,000 t/yr facility completed in June 2023. The new project will significantly increase the company’s local production base, although a commissioning timeline has not yet been disclosed.

BTR anode capacity reached 782,500 t/yr in 2025, including 622,500 t/yr in China and 160,000 t/yr in Indonesia. The latest investment shows that the company is continuing to add scale both domestically and overseas.

The expansion comes as Chinese anode material shipments continue to grow, supported by higher new energy vehicle production and rapid battery energy storage deployment.

Changzhou Location Strengthens Links to Battery Customers

BTR selected Changzhou because Jiangsu province hosts several major battery manufacturers, including CATL, CALB and Svolt. Proximity to these customers can lower logistics costs and strengthen supply-chain coordination.

This matters because anode materials are a core component of lithium-ion batteries. Battery manufacturers require consistent chemistry, particle characteristics, coating performance and large-volume supply.

Locating capacity near major cell producers can also shorten qualification and delivery cycles. As battery makers scale output, suppliers that can provide reliable local volumes gain an operational advantage.

China’s anode material market remains large and fast-growing. Domestic research groups estimated shipments of 2.9mn-3.12mn t in 2025 and expect volumes to rise to 3.3mn-3.7mn t in 2026.

That growth reflects demand from both EVs and stationary energy storage. The latter is becoming increasingly important as China and other markets deploy larger battery storage systems for renewable power integration.

Overseas Expansion Broadens BTR’s Supply Footprint

BTR is also expanding outside China. Its Indonesian cathode plant is operational and ramping toward its designed 160,000 t/yr capacity.

The company’s Morocco project remains under construction, with planned cathode capacity of 60,000 t/yr. These investments show that BTR is building a broader international battery materials network alongside its large Chinese production base.

Overseas expansion gives the company access to regional customers and can help manage trade, localization and supply-chain requirements. This is becoming more important as battery markets fragment across Asia, Europe and North America.

At the same time, continued capacity growth raises competition. Chinese anode producers will need to balance scale with utilisation, pricing and product differentiation as more capacity enters the market.

BTR’s Changzhou project therefore reflects both confidence and pressure. Demand is still growing, but success will depend increasingly on customer integration, cost control and international market access.

The Metalnomist Commentary

BTR’s expansion shows that battery materials competition is shifting from simple capacity growth toward location, customer proximity and global footprint. The strongest producers will be those that combine scale in China with regional production in key overseas markets.

China Renewable Energy Plan Supports Metals Demand but Leaves Growth Uncertain

China, Renewable Energy Plan

China renewable energy plan for 2026-30 points to continued structural demand growth for copper, aluminium, lithium, vanadium and rare earths. However, the metals impact will depend on how far wind, solar, storage and grid investment move beyond targets that China is already close to reaching.

China renewable energy plan targets wind and solar at more than 50% of total installed power capacity by 2030 and positions them as the main source of power generation. The wording is important because wind and solar already account for around 48% of China’s installed power capacity.

China renewable energy plan therefore provides policy support but not necessarily a new demand shock. The key issue for metals producers is whether Beijing pushes deployment materially above the 50% threshold and introduces additional incentives for solar, storage and grid infrastructure.

China’s total installed power capacity reached 4,010GW by the end of May. Solar accounted for 1,260GW and wind for 660GW, with both sectors still growing at double-digit rates.

Copper and Aluminium Depend on How Far Renewables Expand

Renewable infrastructure remains a major source of metals consumption. Solar projects require aluminium for frames, mounting systems and electrical applications, while wind turbines consume aluminium, copper, speciality steels and rare earth permanent magnets.

Industry estimates put aluminium consumption at around 13,500t for every 1GW of solar capacity and up to 3,000t for 1GW of wind capacity. Further expansion could therefore create substantial incremental demand.

However, China is already close to the plan’s minimum capacity target. Wind and solar together represent about 48% of total installed capacity, leaving only a modest increase required to exceed 50%.

This has made market participants cautious. If deployment slows after the target is reached, incremental aluminium demand could be weaker than previous renewable investment cycles.

The outcome changes if actual capacity moves toward 55% or higher. Chinese policy targets are often designed with room for overachievement, meaning the final installed share could materially exceed the stated minimum.

Copper has a stronger structural demand case because renewable generation also requires transmission, substations, grid reinforcement and electrical equipment.

Copper demand from China’s wind and solar sectors is expected to reach around 1.85mn t this year, almost three times the 620,000t consumed in 2020. That growth demonstrates how renewable buildout is already reshaping Chinese copper consumption.

Storage and Charging Add Another Critical Metals Demand Layer

The plan extends beyond renewable generation. China is targeting 300GW of new energy storage capacity and 40mn electric vehicle charging units by 2030.

Storage deployment strengthens demand for lithium and other battery materials. Rapid renewable penetration increases the need to balance variable generation, making grid-scale batteries increasingly important to the power system.

Lithium consumption from energy storage could rise substantially over the next decade. However, strong demand growth does not automatically mean higher lithium prices because new mine and processing capacity may expand just as quickly.

Vanadium could also benefit if long-duration flow batteries capture part of China’s storage market. Rare earth demand may gain additional support from wind turbine generators and high-performance electric motors.

Charging infrastructure adds another copper and aluminium demand channel. Millions of additional charging points require cables, connectors, distribution equipment and grid upgrades.

The plan therefore supports a wider metals ecosystem than wind and solar installations alone. Generation, storage, charging and grid reinforcement all add material intensity to China’s energy transition.

The biggest uncertainty is execution. China has already built renewables at enormous scale, so future metals demand will depend on whether policy accelerates deployment beyond current momentum rather than merely formalising existing trends.

The Metalnomist Commentary

China’s new energy plan is supportive for metals, but the 50% wind-and-solar target alone is not the real story because the country is already close to it. The stronger demand signal will come from how aggressively Beijing expands storage, grids and renewable capacity beyond the minimum target.

Brazil Critical Minerals Industry Needs Government Support to Move Downstream

Brazil, Critical Minerals

Brazil critical minerals industry development will depend on stronger government support, infrastructure and long-term capital if the country wants to move beyond raw material extraction. Industry executives at the Energy Summit in Rio de Janeiro argued that mineral wealth alone will not create competitive processing and manufacturing supply chains.

Brazil critical minerals industry has substantial geological potential, but projects face gaps in logistics, technology, processing capacity and financing. Predictable legal and regulatory frameworks will therefore be essential to attract investment with mine-development timelines measured in decades.

Brazil has recently strengthened its national critical minerals framework, with policy focused on domestic processing, transformation and higher-value production rather than exports of raw materials alone.

The industrial opportunity extends beyond individual minerals. Companies can improve project economics by recovering multiple metals and valuable by-products from existing mining and processing streams.

Renewable Power Could Give Brazil a Processing Advantage

Brazil does not need to replicate China’s critical minerals model to become competitive. Its advantage could come from combining mineral resources with abundant renewable electricity and water resources to build a lower-carbon processing base.

This matters because refining and mineral processing are often energy-intensive. Access to competitive renewable power can reduce operating costs and lower the embedded carbon of finished materials.

That advantage could become increasingly valuable as automotive, battery, aerospace and industrial customers demand more traceable and lower-carbon feedstock.

Brazil also needs to capture more value between the mine and final customer. Beneficiation, refining, recycling and advanced materials production create significantly more industrial value than exporting ore or concentrate alone.

Government support can help close the financing gap during this transition. Critical mineral projects typically require large upfront capital commitments and long development periods before generating cash.

The challenge is therefore not simply identifying deposits. Brazil needs infrastructure, technology transfer, skilled labour and stable rules that encourage companies to build processing capacity domestically.

Copper Investment Shows Scale of Industrial Opportunity

Copper illustrates both Brazil’s opportunity and the broader global supply challenge. Electrification, grids, renewable energy, energy storage and artificial intelligence infrastructure are increasing the strategic importance of the metal.

Major new discoveries remain difficult, while existing mines are often facing declining grades and higher development costs. This strengthens the value of large established mineral districts that can support expansions and new processing capacity.

Vale Base Metals is positioning Carajas as one of its main copper growth platforms. The company has outlined multi-billion-dollar copper investment in the region, including $3.5bn of planned spending between 2026 and 2030 alone.

Vale is also pursuing more automated mining technologies and hybrid extraction systems, including electric equipment. These investments could reduce operating emissions while improving productivity.

Copper recovery remains challenging because ore contains relatively small amounts of payable metal compared with total material moved. That makes efficiency, energy costs and by-product recovery increasingly important to project economics.

Brazil’s wider critical minerals strategy will face the same test. Resource scale provides the opportunity, but competitiveness will depend on whether the country can convert geology into processed materials and reliable industrial supply.

The Metalnomist Commentary

Brazil has the resources and renewable power to become more than a mineral exporter, but geology alone will not build a critical materials industry. The decisive step is using policy and capital to pull processing, technology and downstream manufacturing into the country.

Cop 31 Electrification Target Could Reshape Global Power and Metals Demand

Cop 31

Cop 31 electrification target proposed by Turkey would lift electricity’s share of global final energy consumption to 35% by 2035, from around 20% today. The IEA is urging countries to support the goal at the November climate summit in Antalya.

Cop 31 electrification target would place power systems at the centre of the next phase of global decarbonisation. Reaching the target would require substantial investment in generation, grids, storage and end-use electrification across transport, buildings and industry.

Cop 31 electrification target also carries major implications for metals demand. More electricity infrastructure would support long-term consumption of copper, aluminium, electrical steel, battery materials and other inputs used in transmission, storage and renewable generation.

The political challenge is financing. Developing countries warned that higher borrowing costs, limited technology access and weak capital availability could prevent them from participating in the transition at the same pace as wealthier economies.

Grid Investment and Finance Will Determine Delivery

Turkey proposed the 35% electrification goal during climate talks in Bonn. The IEA said the target is achievable and could become a major legacy of Cop 31 if governments reach agreement.

However, expanding electricity use requires far more than adding renewable generation. Countries need transmission lines, distribution networks, transformers, substations, storage systems and digital grid infrastructure.

That creates a significant industrial demand signal. Copper will be central to cables, transformers and electrical equipment, while aluminium will remain critical for transmission conductors and lightweight electrical applications.

Battery storage will also become more important as renewable penetration rises. This supports demand for lithium, graphite, copper and other battery materials, while alternative storage technologies could create additional demand for vanadium, zinc and other metals.

Developing economies face the biggest financing challenge. High borrowing costs can make power projects significantly more expensive even when renewable resources are strong.

Turkey and Australia therefore want finance to sit alongside electrification in the Cop 31 agenda. Ministers from Ethiopia, Colombia and other developing countries also stressed that implementation will depend on better access to capital and technology.

Without that support, electrification could widen industrial inequality. Countries with cheaper financing would build grids and clean power faster, while higher-risk markets could remain dependent on older infrastructure and more expensive energy.

Clean Power Source Will Decide Climate Impact

Electrification alone does not guarantee lower emissions. The climate benefit depends on how the additional electricity is generated.

Civil society groups and governments have warned that rising electricity consumption can still be supplied by coal, gas or other fossil fuels. That means the electrification target must be linked with clean generation expansion and fossil fuel transition policies.

The Powering Past Coal Alliance has called for governments to integrate electrification, clean power build-out and coal transition scenarios. It warned that rapid power demand growth could otherwise lock countries into new coal capacity.

Colombia also argued that faster renewable deployment is not enough without addressing the phase-out of fossil fuels. This debate will remain central to negotiations around the broader transition away from fossil energy.

For industrial supply chains, the distinction matters. A clean electrification pathway creates sustained demand for renewable generation, grids, batteries and low-carbon materials. A fossil-heavy pathway may still increase metals demand, but with a much weaker emissions benefit.

The 35% target therefore represents more than an energy consumption metric. It would influence capital allocation, power infrastructure planning and material demand across multiple sectors for the next decade.

The Metalnomist Commentary

A global electrification target would be a major structural driver for copper, aluminium, electrical steel and storage materials. But without affordable finance and clean generation, electrification could expand electricity demand faster than it reduces emissions.

Adani Green BESS Expansion Makes Khavda a Major Grid Storage Platform

Adani Green Energy

Adani Green BESS capacity has reached 3.37GWh at the Khavda renewable energy park in Gujarat, marking a major step in India’s effort to make large-scale renewable power more reliable and dispatchable. Adani Green Energy added 2GWh to the 1.37GWh installed in March.

Adani Green BESS development at Khavda is significant because the project is now the largest single-location battery storage installation outside China, according to the company. The system is co-located with AGEL’s 30GW renewable energy project, of which 9.9GW is already operational.

Adani Green BESS expansion also signals how India’s clean energy transition is moving beyond generation capacity alone. Solar and wind projects need storage to manage intermittency, stabilise grids and supply power during peak demand periods.

The company plans to scale its storage footprint quickly. It is targeting more than 10GWh of new capacity by March 2027 and aims to reach 50GWh over the next five years.

Khavda Storage Strengthens Renewable Power Dispatchability

The Khavda BESS uses lithium-ion battery technology integrated with advanced energy management systems. This allows faster grid response, better stability and more reliable renewable power delivery.

This matters because India is adding renewable power at scale, but grid flexibility remains a major constraint. Battery storage helps convert variable solar and wind generation into usable power during high-demand periods.

AGEL said the 3.37GWh system can power about 1mn homes for a full day. It can also meet peak electricity demand in cities such as Indore or Chandigarh, or supply the entire state of Goa.

The Khavda project therefore shows how battery storage is becoming core electricity infrastructure. It is no longer only a backup tool or pilot technology.

For India, this type of storage capacity supports energy security, renewable integration and reduced dependence on fossil fuel peaking power. It also strengthens the case for more domestic battery materials, cell manufacturing and power electronics capacity.

Battery Storage Growth Lifts Materials and Supply-Chain Demand

Large BESS projects create demand across several material chains. Lithium-ion batteries require lithium, graphite, copper, aluminium, separators, electrolytes, battery management systems and thermal control technologies.

Copper demand is also supported by cabling, grid connections, transformers and power conversion systems. Aluminium can benefit through enclosures, busbars, structural systems and cooling components.

India’s rapid storage targets could therefore deepen demand for battery raw materials and downstream manufacturing. The country will need reliable supply chains for cells, modules, inverters and grid equipment if it wants to scale from gigawatt-hours to tens of gigawatt-hours.

The Khavda system also highlights the strategic link between renewable energy and industrial policy. Battery storage deployment can create demand signals for local manufacturing, recycling and critical minerals processing.

However, scaling to 50GWh will require capital, land, grid integration, battery procurement and long-term project economics. Storage must become not only technically viable, but also financially repeatable.

Adani Green’s commissioning shows that India is moving quickly. The next challenge is building a domestic ecosystem that can support storage deployment without relying too heavily on imported battery materials and equipment.

The Metalnomist Commentary

Khavda shows that the renewable energy race is becoming a storage race. India’s next clean-energy bottleneck will not be only solar or wind capacity, but the battery materials, grid equipment and financing needed to make renewable power dispatchable.

Energy Security Investment Rises as IEA Sees $3.4 Trillion Global Spend

IEA

Energy security investment is accelerating as the war in the Middle East and the de facto closure of the Strait of Hormuz push governments and companies to diversify supply. The IEA expects global energy investment to reach $3.4 trillion in 2026.

Energy security investment is now shifting strongly toward electricity, grids, storage, renewables, nuclear, low-emissions fuels and efficiency. The IEA expects around $2.2 trillion to flow into these areas, compared with about $1.2 trillion for fossil fuels.

Energy security investment also carries direct metals implications. More spending on grids, storage, solar, wind, nuclear and electrification will support demand for copper, aluminium, electrical steel, lithium, nickel, rare earths and other critical materials.

The IEA described the current crisis as the largest energy security crisis the world has faced. It expects decision-makers to prioritise resilience, diversification and trusted energy partners.

Electricity Spending Becomes the Core Security Response

Electricity-related investment is becoming the dominant theme in global energy spending. The IEA expects investment in electricity supply and infrastructure to reach nearly $1.6 trillion in 2026.

That figure rises to about $2 trillion when end-use electrification is included. This shows that energy security is no longer only about oil and gas supply. It is increasingly about reliable power systems.

Power grids will be central to this shift. Grid expansion, storage deployment and electrification require large volumes of copper, aluminium and electrical equipment.

Renewables will also remain a major investment channel. The IEA expects renewables spending to reach around $665bn in 2026, including $365bn for solar, $200bn for wind and $75bn for hydropower.

Annual renewables spending growth has moderated because of lower technology costs and policy changes in China and the US. However, low-emissions sources still account for more than 70% of global power investment.

The metals signal is clear. Energy security policy is reinforcing the same material demand base already supported by decarbonisation. Grid metals, battery materials and renewable energy inputs remain structurally important.

Fuel Supply Shock Keeps Fossil Investment Alive

Fossil fuel investment is also rising in selected areas. Total fossil fuel supply investment is expected to exceed $1 trillion in 2026, returning to 2024 levels.

Oil investment is expected to fall for a third consecutive year to below $500bn. Long project lead times, supply-chain limits, offshore rig tightness and uncertainty over the duration of the price spike are limiting near-term spending outside the Middle East.

Natural gas investment is moving in the opposite direction. The IEA expects gas investment to reach $330bn, the highest level in a decade, supported by LNG export projects and demand from data centres.

Coal investment is also expected to rise to $180bn, the highest level since 2012. Around 70% of that spending is expected in China, while some Asian countries may keep existing coal-fired power plants running longer to protect energy security.

The IEA said past investments in renewables, nuclear, efficiency and electrification have already improved energy security in major fuel-importing regions. It estimated that China, the EU, Japan, South Korea, southeast Asia and India avoided around $260bn in fossil fuel imports in 2025.

The conflict is also forcing a search for new energy export routes to reduce reliance on the Strait of Hormuz. Repair costs for damaged energy infrastructure are expected to reach tens of billions of dollars.

For industrial markets, the result is a more complex energy outlook. Electricity investment is rising fast, but gas and coal remain part of short-term security planning. That mix will shape metals demand, energy costs and industrial competitiveness.

The Metalnomist Commentary

The IEA’s outlook shows that energy security and electrification are now the same investment story. The winners will be supply chains that can deliver grids, storage, renewables and critical minerals at scale while reducing exposure to fragile fuel routes.

Western Australia Vanadium Battery Plan Targets Grid Storage and Local Supply Chain

Vanadium Battery

Western Australia vanadium battery plans are moving forward as the state government offers A$150mn to support a 50MW battery energy storage system in Kalgoorlie. The project is intended to strengthen energy security in Kalgoorlie and the Eastern Goldfields as the state exits coal-fired power.

Western Australia vanadium battery funding will be awarded through a competitive proposal process. Bids are due by 20 July 2026, with evaluation expected from July and results to be announced later in the year.

Western Australia vanadium battery proposals must also show how they will support the local vanadium supply chain. That condition gives the project industrial significance beyond electricity storage alone.

The plan connects grid reliability, renewable integration and critical minerals development. It also supports Western Australia’s wider Made in WA policy, which aims to build more local manufacturing and clean-energy supply chain capacity.

Kalgoorlie Storage Project Supports Coal Exit

The 50MW Kalgoorlie project is part of Western Australia’s transition away from state-owned coal-fired generation. The government pledged in 2022 to close all state-owned coal plants by 2030.

Several major coal units are already scheduled for closure. Synergy’s Muja C, Muja D and Collie power station will be retired in stages between 2025-26 and 2029-30.

Battery storage is expected to replace part of the capacity and flexibility lost from coal. This is critical because renewable generation requires storage assets that can manage intermittency, stabilise the grid and support peak demand.

Kalgoorlie and the Eastern Goldfields are particularly important because mining regions need reliable electricity. Power disruptions can affect processing plants, mine operations, logistics and regional industrial development.

The government expects more than 1,200MW of new generation and storage to enter the South West Interconnected System in 2025-26 and 2026-27. A further 1,000MW is expected in 2027-28.

The scale of the pipeline shows that Western Australia is not treating storage as a marginal add-on. It is becoming core infrastructure for the state’s post-coal power system.

Vanadium Supply Chain Becomes Part of Energy Policy

The request for proposals is notable because it links battery deployment with local vanadium supply chain investment. This turns the project into both an energy storage initiative and a critical minerals development tool.

Vanadium batteries are attractive for long-duration grid storage because they can offer long cycle life and are suited to stationary applications. They do not compete directly with lithium-ion batteries in every market, but they can serve grid use cases where durability and duration matter.

Western Australia has already invested heavily in battery storage. In 2023, the state awarded A$1bn to support the 500MW Collie battery energy storage system and the 200MW Kwinana battery energy storage system.

The state’s 2025-26 budget also included A$50mn for a local battery manufacturing programme under the Made in WA policy. That aligns with the new vanadium battery proposal, which asks bidders to contribute to regional, economic and community outcomes.

Federal support is also backing Western Australia’s storage buildout. Four lithium-ion battery projects are being partly underwritten through the Capacity Investment Scheme, adding 2.6GWh of storage capacity from late 2027.

This creates a mixed battery landscape. Lithium-ion will remain important for large-scale storage, but vanadium could give Western Australia a route to build a differentiated local supply chain around its own mineral base.

The strategic test will be whether the Kalgoorlie project can move beyond demonstration value. It must prove cost competitiveness, operational reliability and real local supply chain development.

The Metalnomist Commentary

Western Australia is using grid storage procurement to create demand for a local vanadium industry. That is the right industrial logic: critical mineral supply chains need committed end-use demand, not just resource potential.

UK Climate Adaptation Requires £11bn a Year as Infrastructure Risks Intensify

Climate Change Committee

UK climate adaptation must accelerate as the country faces intensifying heat, flood risk, drought and wildfire exposure under a likely 2°C global temperature rise by 2050. The Climate Change Committee warned that UK climate adaptation is now an economic and infrastructure priority, not only an environmental issue.

UK climate adaptation will require around £11bn a year of investment from public and private sources. The committee said those investments could generate returns worth tens of billions of pounds by reducing damage, disruption and cascading economic losses.

The warning is especially relevant for the energy system. Power networks, generation assets, substations and fuel logistics are exposed to flooding, high winds, heat and drought.

Disruptions in electricity supply can spread quickly through the wider economy. That makes grid resilience, water management and infrastructure hardening central to national competitiveness.

Energy Systems and Infrastructure Face Rising Physical Risk

The UK was built for a climate that no longer exists. That assessment captures the scale of the adaptation challenge facing buildings, transport, water systems, agriculture and energy infrastructure.

The Climate Change Committee set out eight priority areas, including extreme heat protection, flood risk management, infrastructure adaptation, food resilience, water security and agricultural planning.

Flood protection offers particularly strong economic returns. The committee said flood adaptation can deliver benefits up to five times the investment required.

Protecting existing infrastructure could deliver benefits up to 10 times the upfront cost. This makes adaptation investment a financial risk-management tool, not only a public spending burden.

For industrial supply chains, the message is clear. Climate resilience will require more investment in grid equipment, water systems, drainage, building materials, heat-resistant infrastructure and emergency power capacity.

That has direct implications for metals demand. Copper, aluminium, steel, electrical steel, zinc coatings, battery storage materials and specialty alloys will all play roles in hardening infrastructure against physical climate risks.

Adaptation Becomes an Industrial Materials Strategy

The UK is legally required to adapt under the 2008 Climate Change Act. But the committee judged the current national adaptation approach inadequate.

The government must submit a new climate change risk assessment to parliament by January 2027. National and devolved governments will then need to set stronger adaptation plans.

This creates an investment timeline for infrastructure suppliers. Flood defences, grid reinforcement, water systems, resilient transport assets and climate-ready buildings could become larger procurement priorities.

The energy system is the most strategic area. Electrification, renewable power and data-centre growth already require more grid capacity. Climate risk adds another requirement: that infrastructure must survive more extreme weather.

This will push utilities and governments toward stronger transmission networks, protected substations, distributed energy storage, backup systems and more resilient materials.

The broader industrial lesson is that decarbonisation and adaptation must move together. Cutting emissions reduces long-term climate risk, but physical resilience is needed now because extreme weather is already affecting economies and infrastructure.

The Metalnomist Commentary

The UK adaptation warning shows that climate policy is moving from emissions targets into physical infrastructure investment. For metals markets, resilience could become a major demand driver as grids, buildings and water systems are rebuilt for a harsher climate.

India Renewable Curtailment Exposes Grid Bottleneck Behind Clean Power Growth

Ember

India renewable curtailment reached around 300GWh in January-March because of transmission constraints, showing that the country’s clean power buildout is now running ahead of grid readiness. The lost generation accounted for nearly two-thirds of India’s total renewable curtailment in the first quarter.

India renewable curtailment was concentrated in renewable-heavy northern and western grid pooling stations, especially Rajasthan and Gujarat. These regions have added large solar and wind capacity, but transmission expansion has not kept pace.

India renewable curtailment is strategically important because wasted clean power weakens project economics, increases peak power costs and delays the energy transition. It also highlights rising demand for grid materials, including copper, aluminium conductors, transformers, electrical steel and battery storage systems.

The curtailed volume represented around 1.5-2% of total renewable generation from interstate transmission system-connected plants in northern and western India. On 30 March alone, India lost 34GWh of renewable output because of insufficient transmission margins.

Transmission Delays Threaten Renewable Project Economics

India has achieved only around 80% of its annual transmission buildout targets over the past five years. That gap is now becoming visible in curtailment, grid connection delays and weaker returns for renewable developers.

One in four interstate transmission schemes scheduled for the 2026-27 fiscal year faces delays of at least one year. Around 20GW of renewable capacity is expected to face grid connectivity delays exceeding four months.

These delays carry direct financial consequences. A six to twelve-month delay in solar projects can reduce internal rates of return by 100-200 basis points because of lost early cash flows and higher financing costs.

The problem also affects India’s fuel import exposure. Curtailed renewable generation could have displaced costly gas-fired power during peak demand periods, reducing reliance on expensive LNG at a time when spot gas prices were elevated by the US-Iran war.

For metals markets, the message is clear. India’s renewable buildout now needs faster transmission investment, which means more demand for aluminium conductor, copper cable, transformers, substations, steel structures and grid equipment.

BESS Deployment Offers Near-Term Relief

Battery energy storage systems could provide a near-term solution at renewable pooling stations. Ember estimates that around 3-4GW of two-hour storage could absorb most curtailed renewable generation.

The economics are becoming more attractive. Stored solar power delivered at 7-8 rupees/kWh would remain below the Rs9-10/kWh many Indian states pay for peak-demand electricity.

This makes BESS deployment more than a technical fix. It is a cost-control tool, a grid-stability tool and a way to protect renewable project returns.

Battery storage demand also has materials implications. BESS deployment supports demand for lithium, phosphate, graphite, copper, aluminium, power electronics and thermal management systems, with lithium iron phosphate likely to remain important for stationary storage.

India’s southern region recorded no transmission-related renewable losses because renewable additions and transmission readiness were better aligned. That contrast shows that curtailment is not inevitable; it is a planning and execution problem.

India’s clean power transition will therefore depend on synchronising generation, transmission and storage investment. Solar and wind additions alone will not deliver energy security if power cannot move from renewable zones to demand centres.

The Metalnomist Commentary

India’s renewable curtailment shows that the energy transition is becoming a grid materials story. The next bottleneck is not only solar panels or wind turbines, but transmission capacity, storage deployment and the metals needed to move clean electricity.

Asian Investor Climate Policy Advocacy Rises as Transition Finance Needs Clearer Rules

AIGCC

Asian investor climate policy advocacy is accelerating as more asset owners and managers push governments for clearer frameworks to support climate investment. The Asia Investor Group on Climate Change said investors across the region are moving beyond broad net zero pledges toward more direct engagement on policy.

Asian investor climate policy advocacy is becoming more important because Asia’s energy transition depends heavily on regulation, project approvals and national transition roadmaps. Markets across the region differ widely in policy maturity, carbon rules, disclosure standards and grid planning.

Asian investor climate policy advocacy now extends beyond emissions targets. Investors are calling for stronger sector transition plans, technology support, physical climate risk frameworks, nature-related disclosures and just transition policies.

The shift matters for metals and industrial supply chains. More investible climate policy can unlock capital for energy storage, renewable power, transmission, low-carbon transport and green infrastructure, all of which require large volumes of copper, aluminium, battery materials, electrical steel and critical minerals.

Energy Storage and Grid Investment Draw More Capital

Energy storage has become one of the clearest winners from stronger climate policy interest. The share of surveyed investors interested in energy storage doubled to 82% in 2025 from 40% in 2023.

This is an important signal for battery metals. Storage growth can support demand for lithium, iron phosphate, graphite, copper, aluminium and power electronics materials, even when electric vehicle growth becomes uneven.

Renewable power generation and transmission are also attracting investor attention. These sectors require long-term policy certainty because projects depend on grid access, permitting, tariff structures and reliable revenue models.

Green infrastructure, low-carbon transport and nature-based solutions are also gaining interest. But capital will move fastest where governments provide clear investment rules, predictable transition pathways and credible national targets.

The report shows that investors are becoming more practical. They are no longer only setting portfolio-level climate targets. They are asking governments to create the conditions needed for real projects to be financed.

Transition Plans Remain the Missing Link

Investor climate commitments are rising, but implementation remains uneven. The share of investors with net zero portfolio pledges increased to 45% in 2025 from 40% in 2024, while 33% have set interim targets.

However, only 22% of investors published a climate transition plan in 2025, unchanged from the previous year. This gap matters because transition plans connect targets with capital allocation, engagement priorities and risk management.

Just transition strategies are even less developed. Only 11% of investors have adopted one, showing that social and regional impacts remain under-integrated in climate finance.

Asia’s transition will require place-based planning. Coal-heavy markets, export-driven manufacturing hubs, emerging economies and advanced financial centres all need different pathways.

For metals producers and industrial companies, this creates both opportunity and scrutiny. Investors will increasingly prefer companies with credible decarbonisation strategies, resilient supply chains and exposure to climate-enabling materials.

The broader message is clear. Climate finance in Asia is moving from ambition toward execution, but policy certainty and transition planning must improve before capital can scale at the speed required.

The Metalnomist Commentary

Asian investors are telling governments that climate capital needs bankable rules, not slogans. For metals markets, the strongest signal is energy storage: policy clarity could turn climate finance into real demand for copper, aluminium, lithium and grid materials.

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.

Hancock Lithium Mine Plan Advances as Spodumene Prices Recover

Hancock Lithium Mine

Hancock lithium mine plans in Western Australia are moving forward as stronger lithium concentrate prices revive confidence in large-scale spodumene development. Hancock Prospecting plans to build the A$1bn Andover mine, targeting production of up to 1.1mn t/yr of lithium concentrate.

Hancock lithium mine construction is scheduled to start in November 2028, with a two-year construction period. The project is planned for a 30-year operating life and would process 6mn t/yr of ore.

Hancock lithium mine development reflects a shift in lithium sentiment after the deep price collapse that forced project delays and suspensions across the sector. Spodumene prices have rebounded as Chinese battery demand improves and supply expectations tighten.

The Andover project is strategically important because Australia remains one of the world’s key hard-rock lithium supply bases. New capacity from Western Australia could support converters, battery producers and electric vehicle supply chains seeking long-term spodumene feedstock.

Andover Adds Scale to Western Australia’s Spodumene Pipeline

The Andover mine would become a major new lithium concentrate source if developed as planned. Annual output of up to 1.1mn t would give the project meaningful weight in the seaborne spodumene market.

The project sits within a broader ownership structure shaped by recent consolidation. Hancock Prospecting and Chilean lithium producer SQM partnered to acquire Azure Minerals in a A$1.7bn deal completed in May 2024 through their jointly owned company, SH Mining.

Andover is 60% owned by Azure, while Croydon Gold, a subsidiary of the Creasy Group, holds the remaining 40%. The involvement of Hancock and SQM gives the project both Australian mining strength and global lithium-market experience.

SQM’s role is especially relevant. The Chilean producer brings downstream lithium market knowledge, while Hancock adds financial capacity and Australian project execution capability.

The planned 30-year mine life also matters. Battery supply chains need long-duration feedstock sources, not only short-cycle spot supply. A project of this scale could support long-term offtake and conversion strategies.

Price Recovery Revives Lithium Project Economics

The Andover plan comes after a sharp recovery in spodumene concentrate prices. Prices rose in April as tighter supply expectations followed Zimbabwe’s introduction of export quotas for lithium concentrate.

Spodumene prices had previously collapsed to $900-1,100/t cif China in January 2024, down 83% after supply growth outpaced demand. That downturn forced many lithium developers to slow, delay or reassess projects.

Prices later began recovering in late 2025 as demand from China’s lithium-ion battery sector improved market sentiment. Stronger pricing has now made large hard-rock projects more attractive again.

However, lithium remains a volatile market. New supply from Australia, Africa, South America and China can quickly change balances if demand growth slows or inventories rebuild.

For Hancock, timing will be critical. Construction is not expected to start until late 2028, meaning the project will enter the market after the current price recovery has already been tested by several more years of battery demand and supply growth.

The strategic value remains clear. If lithium demand continues to rise from electric vehicles and energy storage, Andover could become an important feedstock source for global converters. If supply again expands too quickly, project economics may face renewed pressure.

The Metalnomist Commentary

Hancock’s Andover plan shows that lithium investment confidence is returning, but only for projects with scale, strong sponsors and long-term strategic value. The market has recovered from its deepest downturn, but future winners will still need cost discipline and secure downstream demand.

Global Recycled Metals Output Rises as China and Emerging Regions Expand Capacity

Recycled Metals

Global recycled metals output increased further in 2025 as China maintained its leading position and emerging regions expanded recycling capacity. Production of recycled copper, aluminium, lead and zinc reached about 59.2mn t, up 5.6% from a year earlier.

Global recycled metals output is becoming more important to non-ferrous supply security as mining, processing and trade flows face rising geopolitical and cost pressures. Recycling now provides a larger secondary source of industrial metal units for manufacturers, smelters and battery supply chains.

Global recycled metals output accounted for around 34% of total non-ferrous metal production in 2025. The sector also delivered cumulative savings of about 1.2bn t of primary mineral resources, underlining its growing role in resource conservation.

The growth shows that recycled metals are no longer a secondary environmental story. They are becoming a core part of industrial raw material strategy across copper, aluminium, lead, zinc and battery metals.

China Leads as Regional Recycling Capacity Expands

China remained the world’s largest recycled base metals producer in 2025, with output of 20.57mn t. That represented 34.7% of global production.

The country’s scale gives it a major role in recycled copper, aluminium, lead and zinc supply. It also strengthens China’s position across non-ferrous metals at a time when primary raw material security is under pressure.

Europe produced more than 10mn t of recycled base metals, while the US produced more than 6mn t. India and southeast Asia reached around 6mn t and 4mn t, respectively.

These figures show that recycling capacity is becoming more geographically distributed. Emerging regions are no longer only consumers of recycled raw materials. They are becoming processing centres in their own right.

Battery-related recycling is also growing quickly. Nickel, cobalt and lithium recovery is supporting the new energy industry as electric vehicle and energy storage supply chains look for more secure material sources.

China aims to increase domestic recycled material recovery to 23mn t by 2030 under its next five-year plan. That target implies annual growth of around 7%.

The country is also expected to strengthen recycled product certification and explore the inclusion of recycled materials in carbon trading systems. This could make recycled metal more valuable for customers seeking traceable and lower-carbon supply.

Trade Flows and Technology Move Toward Asia

Global recycled raw material trade is becoming more regional, more Asia-focused and more diversified. Europe and North America remain major exporters of recycled copper and aluminium feedstock.

Europe exports around 2mn t/yr of recycled copper and aluminium feedstock, while North America exports about 4.2mn t/yr. China and India remain the largest importers, with imports exceeding 4mn t and 2mn t, respectively.

Southeast Asia is becoming a key transshipment hub. Regional recycled aluminium feedstock trade reached about 1.3mn t of imports and 900,000t of exports.

Black mass from spent lithium-ion batteries is also increasingly moving toward Asian processing centres. This reflects Asia’s stronger battery materials processing base and growing demand for recovered nickel, cobalt and lithium units.

Technology is improving the recycling value chain. Advances in laser sorting, intelligent dismantling, multi-metal battery recovery and digital process control are raising recovery rates and product quality.

Leading producers have achieved recycling rates above 94% for aluminium and 95% for lithium. These levels show how recycling is moving closer to industrial-grade resource recovery rather than simple scrap handling.

New products are also expanding. High-strength recycled aluminium alloys, high-purity recycled copper and recycled rare-earth permanent magnets are gaining traction.

This matters because recycled metal must meet customer specifications before it can displace primary material. Better sorting, cleaner chemistry and stronger certification will determine how much recycled metal can enter high-value applications.

The Metalnomist Commentary

Recycling is becoming a strategic metals supply pillar, not just a sustainability tool. The next competitive edge will come from producers that can turn complex scrap and battery waste into certified, high-purity and customer-ready materials.