Brunp Battery Materials Project Expands CATL’s Recycling and LFP Supply Chain

Brunp Battery Materials

Brunp battery materials project development has advanced in Yichang, Hubei province, as Guangdong Brunp Recycling Technology broke ground on a 500,000 t/yr production complex. The project carries total investment of 6.1bn yuan, or about $840 million.

The new plant is designed to produce 300,000 t/yr of iron phosphate, 180,000 t/yr of nickel sulphate and 12,000 t/yr of cobalt sulphate. Construction is scheduled for completion in the second half of 2027.

Brunp battery materials project investment strengthens the upstream materials platform behind China’s battery industry. Brunp is a controlling subsidiary of CATL, the country’s largest battery producer, and focuses on recycling, resources and battery materials.

Yichang Base Builds Scale Across LFP and Recycling

The Yichang base will become a major integrated battery materials hub once the new project is operational. It will have 750,000 t/yr of iron phosphate capacity, 450,000 t/yr of lithium iron phosphate capacity and 500,000 t/yr of battery recycling capacity.

Brunp has already made several investments in Yichang since entering the city in 2021. The company launched a 450,000 t/yr LFP factory in December, reinforcing the site’s role in China’s expanding phosphate-based battery supply chain.

This matters because LFP batteries continue to gain share in electric vehicles and energy storage systems. Large-scale iron phosphate and LFP capacity gives CATL-linked supply chains stronger control over cost, material availability and recycling integration.

Recycling Capacity Deepens China’s Battery Materials Control

Brunp Recycling processed more than 200,000t of power batteries in 2025. The company now plans to raise total recycling and processing capacity to more than 1mn t/yr by 2030.

The strategy reflects a wider shift in battery materials sourcing. Recycling is becoming a strategic source of nickel, cobalt, lithium and other battery inputs, especially as governments and manufacturers seek lower-carbon and more secure supply chains.

The Yichang project also adds nickel sulphate and cobalt sulphate capacity, linking recycling with precursor material production. However, weaker upside in metals prices has limited buyer appetite in China’s black mass market, even as NCM payables edged higher in early March.

The Metalnomist Commentary

Brunp’s Yichang expansion shows how CATL is tightening control over the full battery materials loop, from recycling to LFP and sulphate production. The project also underlines China’s advantage in building scale across both primary materials processing and circular battery supply chains.

Expanding Horizons: Guangdong Brunp's Strategic Growth in LFP Battery Production

Brunp

Brunp's Bold Expansion in Lithium-Iron-Phosphate Capacity

Guangdong Brunp, a leading Chinese manufacturer in battery cathode materials and precursors, has announced plans for a significant expansion of its lithium-iron-phosphate (LFP) production capabilities in Yichang, Hubei Province. The company is set to invest 5 billion yuan ($682 million) to construct a new 450,000 ton per year LFP facility, marking a major step in meeting the growing demand for these batteries.

Details of the Expansion Plan

Scheduled to unfold in two phases, the project's finer details, including construction timelines and launch dates, remain under wraps. This expansion is part of Brunp's broader strategy to strengthen its foothold in the LFP market, a segment that is becoming increasingly vital due to its cost-efficiency in electric vehicle (EV) applications.

The Role of LFP Batteries in the Global Market

With the ownership of a 64.8% stake by Contemporary Amperex Technology (CATL), the world's largest lithium-ion battery manufacturer, Brunp is well-positioned to capitalize on the industry's shifts. China, as the leading battery producer, saw LFP batteries comprising 74.4% of its total production in 2024. These batteries are preferred for their safety and cost advantages, especially following subsidy cuts in China for new energy vehicles.

Merdeka Battery Materials Reports Mixed Nickel Output in Q3 Amid Expansions

Merdeka Battery Materials

Indonesian nickel producer Merdeka Battery Materials (MBMA) reported a mixed production performance for the third quarter of 2023. While the company’s nickel ore output doubled due to favorable weather and increased mining capacity, nickel intermediates production experienced a decline.

Nickel Ore Output Surges, Intermediates Decline

During Q3, MBMA produced 4.74 million wet metric tonnes (wmt) of ore from its Sulawesi Cahaya Mineral (SCM) mine. Limonite and saprolite output reached 3.70 million wmt and 1.04 million wmt, respectively, more than doubling compared to the previous quarter. This growth was attributed to better weather conditions and expanded mining equipment deployment.

In contrast, nickel intermediates saw declines. Nickel pig iron (NPI) and low-grade nickel matte (LGNM) production from MBMA’s rotary kiln electric furnaces (RKEF) smelters fell 6.1% quarter-on-quarter to 20,557 tonnes. High-grade nickel matte (HGNM) output dropped by 3.2% to 12,979 tonnes of nickel.

Despite these quarterly dips, the company maintained its 2024 production guidance at 50,000-55,000 tonnes of HGNM and 80,000-85,000 tonnes of NPI.

Strategic Investments and Growth Plans

MBMA's long-term strategy focuses on bolstering output through strategic investments and partnerships. The SCM mine supplies saprolite ore to MBMA’s RKEF smelters and limonite ore to Huayue Nickel Cobalt’s HPAL plants. A second feed preparation plant (FPP), slated for commissioning by mid-2025, is expected to increase limonite ore processing capacity to over 9 million wmt annually.

The company collaborates with leading battery manufacturers to support its limonite production, targeting over 300,000 tonnes per year of nickel in mixed hydroxide precipitate (MHP). Key partnerships include:

• Green Eco-Manufacture (GEM): Joint development of PT ESG and PT Meiming HPAL plants with capacities of 30,000 t/yr and 25,000 t/yr of nickel in MHP, respectively.
• Brunp: Partnership with the subsidiary of Contemporary Amperex Technology (CATL) to establish a 60,000 t/yr HPAL plant for nickel in MHP.

Outlook for 2024 and Beyond

The company’s production guidance for 2024 remains robust, with saprolite ore projected at 4–5 million wmt and limonite ore at 9.5–10.5 million wmt. With the new FPP in operation by 2025, MBMA aims to significantly scale up production and maintain its competitive edge in the rapidly growing battery materials market.

As global demand for nickel intensifies, MBMA's strategic expansions and partnerships position it as a key player in the supply chain for electric vehicle batteries and renewable technologies.

CMOC's Cobalt and Copper Output Soars in 2024, Boosting China's Supply

CMOC's

Chinese mining giant CMOC has reported a significant surge in its copper and cobalt production for 2024, primarily fueled by increased output from its operations in the Democratic Republic of Congo (DRC).  This production boost has subsequently impacted China's imports of these critical metals.

DRC Operations Drive Record Production

CMOC's cobalt production more than doubled in 2024, reaching 114,165 tonnes (metal equivalent), compared to 55,526 tonnes in 2023. This dramatic increase is attributed to higher output from the company's Tenke Fungurume copper-cobalt mine (TFM) and the newly developed Kisanfu copper-cobalt mine (KFM) in the DRC. KFM commenced production in the first half of 2023.  CMOC acquired a 56% stake in TFM from Freeport-McMoRan in 2016, increasing its ownership to 80% in 2017. The acquisition of KFM was completed in December 2020.  KFM is jointly owned by CMOC (71.25%), Brunp, a subsidiary of Contemporary Amperex Technology (CATL), (23.75%), and DRC's state-owned Gecamines.

The company also saw a substantial rise in copper production, reaching 650,161 tonnes in 2024, a 55% increase year-on-year and 14% above its annual production guidance. This growth is partly due to the three new production lines at its mixed ore project at TFM reaching full capacity in the first half of 2024.  TFM now boasts five production lines with a combined capacity of 450,000 tonnes per year.  The KFM mine has achieved a copper capacity of 150,000 tonnes per year.

Impact on China's Metal Imports

The increased cobalt output from CMOC's DRC operations has significantly impacted China's feedstock imports.  Customs data reveals that China imported 172,580 tonnes of cobalt metal equivalent of intermediate products between January and November, a 74% surge compared to the same period the previous year.  Notably, approximately 98.7% of these imports originated from the DRC, a region where the world's two largest cobalt feedstock producers, CMOC and Glencore, operate copper and cobalt mines.  CMOC also holds a 30% stake in Huayue Nickel Cobalt, a joint venture with Huayou Cobalt and Tsingshan in Indonesia.

Looking ahead, CMOC is pursuing further production expansions as part of its five-year plan starting in 2025. These plans include the West Area project at TFM and the second phase of KFM, both of which are currently in the preliminary exploration stage.