Canadian Solar Battery Storage Guidance Jumps 21% on Data Center Demand

Canadian Solar

Canadian Solar battery storage shipments guidance for 2025 surged 21% as the renewable energy company capitalizes on growing demand from data centers and cryptocurrency mining operations. The company now expects utility-scale battery energy storage system (BESS) deliveries to reach 7-9 GWh in 2025, reflecting strong market fundamentals despite challenging industry conditions.

Data Centers Drive Battery Storage Market Growth

Canadian Solar battery storage business benefits from accelerating digitalization trends requiring reliable backup power solutions. Data centers and cryptocurrency mining facilities increasingly demand large-scale energy storage to ensure operational continuity and manage power costs. The company's revised guidance includes approximately 1 GWh designated for its own renewable energy projects.

Meanwhile, Canadian Solar secured a significant contract with Chilean utility Colbún in April. The deal involves supplying a 228MW/912MWh lithium iron phosphate BESS in Chile's Atacama Region. This project demonstrates the company's ability to compete for major utility-scale installations in key Latin American markets.

Industry Headwinds Impact Financial Performance

However, Canadian Solar faces mounting challenges affecting profitability across its operations. Geopolitical uncertainty reduces business visibility while oversupply and fierce competition pressure margins throughout the renewable energy sector. These factors contributed to deteriorating financial results in the first quarter.

Therefore, the company reported a $76.6 million net loss in Q1 2025, contrasting sharply with $36.2 million net income in the prior year period. Seasonally lower BESS sales and trade-related duties further compressed margins during the quarter.

Q2 Recovery Expected Despite Market Pressures

Canadian Solar battery storage shipments totaled 0.8 GWh in Q1 but management expects significant improvement ahead. The company projects 2.4-2.6 GWh in BESS deliveries during the second quarter, indicating strong sequential growth momentum.

As a result, Canadian Solar positions itself to benefit from structural demand growth in energy storage markets. The company's focus on utility-scale projects and strategic partnerships with major utilities supports its optimistic 2025 outlook despite near-term profitability challenges.

The Metalnomist Commentary

Canadian Solar's upgraded BESS guidance reflects the energy storage sector's rapid evolution driven by digital infrastructure expansion and grid modernization needs. While the company navigates challenging market conditions including oversupply and trade tensions, its strategic positioning in high-growth segments like data center storage creates compelling long-term value propositions for investors and industry stakeholders.

Rio Tinto expands solar capacity at Kennecott with tellurium-linked panels

Rio Tinto, Solar

Rio Tinto expands solar capacity at Kennecott by adding 25MW of new generation at its Utah copper site. Rio Tinto expands solar capacity at Kennecott on top of a 5MW solar plant completed in 2023. As a result, Rio Tinto expands solar capacity at Kennecott to a total of 30MW, targeting a 6% cut in Scope 2 emissions.

The new solar build started in late 2024 and reached completion in October before it energized in December. Meanwhile, the project ties decarbonization to local byproduct value. The solar plant uses about 71,000 panels that incorporate tellurium produced at Kennecott during copper refining.

How the Kennecott solar project reduces Scope 2 emissions and power risk

The Kennecott solar expansion targets electricity-related emissions that sit in Scope 2 accounting. Therefore, a 30MW on-site solar asset can shave grid exposure and improve emissions intensity. However, solar output varies by season and time of day, so Kennecott still needs grid power or firming solutions for round-the-clock operations.

The construction timeline also shows industrial renewables moving from pilot scale to repeatable deployments. Meanwhile, miners increasingly prioritize projects that deliver measurable emissions cuts without disrupting throughput. This approach supports customer demands for lower-carbon copper supply chains.

Why tellurium matters for photovoltaics and byproduct monetization

Tellurium turns a refining byproduct into a strategic input for thin-film solar technology. As a result, Kennecott links copper refining to downstream clean-energy manufacturing. The material flows from Kennecott to Canadian firm 5N Plus for thin-film semiconductor materials and then to US firm First Solar for panel manufacturing.

This loop strengthens a North American critical materials chain around solar components. However, byproduct markets remain small and price sensitive, so long-term offtake and qualification matter. Therefore, integrating tellurium into a captive use case at the mine site can improve resilience and visibility for both producers and buyers.

The Metalnomist Commentary

This project signals a smarter decarbonization play that also upgrades byproduct strategy. However, the real advantage comes if Rio Tinto pairs renewables with reliability tools like storage and demand management. Mines that connect emissions cuts to critical-material loops will win premium customers.

5N Plus Poised for Increased Tellurium Orders from First Solar Amid China Export Controls

5N Plus

US Solar Panel Giant May Boost Spot Demand as 5N Plus Expands Non-Chinese Supply and Space Solar Capacity

5N Plus Expects Surge in Tellurium Spot Sales from First Solar

Canadian semiconductor materials producer 5N Plus anticipates additional spot tellurium orders from US-based solar panel leader First Solar, as the latter moves to diversify its supply chain away from China. The shift comes after Beijing imposed new export controls on tellurium, following similar restrictions on gallium and germanium.

First Solar uses cadmium telluride (CdTe) in its thin-film solar panels and partners with 5N Plus to refine tellurium by-product sourced from Rio Tinto’s Kennecott mine in Utah. 5N Plus already has a minimum-volume supply agreement, which was increased by 50% for the next two years, effectively tripling the contract volume compared to 2022.

According to CEO Gervais Jacques, First Solar is “most likely to request more than the minimum,” signaling robust demand as the U.S. seeks to reduce reliance on Chinese critical minerals.

5N Plus Expands Non-Chinese Supply Chains and Space Solar Production

While First Solar evaluates potential disruptions from China’s export policy, 5N Plus has strengthened sourcing of key materials. It procures germanium from Europe and Canada, while maintaining a stable bismuth supply outside of China. These measures are part of a broader strategy to insulate the company from geopolitical supply risks.

Additionally, 5N Plus is scaling up its space solar division, which manufactures advanced germanium substrates used in high-efficiency satellite applications. These substrates are layered with materials such as AlInGaP, AlGaAs, and InGaAs. The company expects this business to grow by 30% in 2024, with capacity expansions ongoing through Q4.

Bismuth Chemicals to See Steady Demand from Health Sector

Beyond semiconductors, 5N Plus projects continued bismuth demand growth driven by pharmaceutical and healthcare markets, in line with global GDP trends. The company’s Lübeck, Germany facility is positioned to support this growth, supplying high-purity bismuth chemicals used in medical applications.

U.S. Solar Power Hits Record Growth in 2024 Despite Policy Uncertainty

Wood Mackenzie

Utility-scale solar leads capacity surge as residential segment contracts; industry braces for regulatory headwinds in 2025.

The U.S. solar sector added nearly 50,000 MWdc of capacity in 2024, setting a new record and growing 21% year-over-year, according to a joint report by the Solar Energy Industries Association (SEIA) and Wood Mackenzie. Solar energy accounted for 66% of all new power generation, surpassing its previous high of 56% set in 2023.

This marks the fourth consecutive year solar has held the largest share of new U.S. generation, driven by Inflation Reduction Act (IRA) incentives, resilient supply chains, and strong demand from utilities and corporations.

Utility-Scale Leads Surge, But Residential Slumps

Utility-scale solar led the boom, adding 41,100 MWdc—a 33% increase from 2023. However, 2025 may see a 2% contraction in this segment due to policy uncertainty.

The residential solar market declined 31% to 4,700 MWdc, hit by high financing costs and lower demand. Still, 9% growth is expected in 2025, especially in California, where market stabilization is underway.

Commercial installations rose 8% to 2,100 MWdc, fueled by projects under California’s NEM 2.0, but are expected to drop 11% in 2025. Developers face federal compliance hurdles related to wage and apprenticeship rules tied to tax credits.

Growth in Community Solar, But Headwinds Ahead

Community solar jumped 35% to nearly 1,750 MWdc, though 2025 growth could fall 15% due to interconnection issues and saturation in mature states.

While demand remains strong, looming policy risks threaten momentum. These include:

• Tariff hikes on Canadian and Mexican imports set for April 2

• A 60-day freeze on permitting for federal land projects

• A shift in federal focus toward thermal and hydro energy

Despite these risks, SEIA and Wood Mackenzie forecast a minimum of 43,000 MWdc per year through 2035, pushing cumulative capacity beyond 730,000 MWdc. However, that pace could slow by 25% if key IRA tax incentives are removed or diluted.

5N Plus Semiconductor Materials Demand Rises as Germanium Refining Gains Strategic Value

5N Plus

5N Plus semiconductor materials demand remains strong despite rising input and operating cost pressure expected in 2026. The Canadian materials producer sees continued demand from solar, artificial intelligence, defense, and high-purity specialty semiconductor markets.

The company expects geopolitical uncertainty and broader economic factors to increase costs this year. However, 5N Plus semiconductor materials remain well positioned because AI-related power demand is supporting the solar sector and strengthening demand for advanced materials used in high-performance applications.

5N Plus reported strong 2025 results, with revenue rising 35pc year on year to $391mn. Its specialty semiconductors segment grew 41pc to $285mn, while performance materials revenue increased 22pc to $106mn. Profit more than tripled to $50.6mn, highlighting strong operating momentum despite a more complex cost environment.

Solar and Defense Demand Support Specialty Materials Growth

Solar remains a key demand driver for 5N Plus. The company expects its Germany-based solar cell producer Azur Space to expand production capacity by another 25pc in 2026. This follows capacity increases of 35pc in 2024 and 30pc in 2025.

This expansion shows how specialty solar materials are gaining value as AI, data centres, satellites, and power-sensitive applications increase demand for reliable energy technologies. Even with US policy shifts, 5N Plus expects solar-related demand to remain strong because underlying electricity needs continue to rise.

Defense is also becoming a more important opportunity. Several large defense companies have shown interest in 5N Plus’ ability to refine and recycle strategic minerals. This reflects a wider industrial shift in which high-purity materials, recycling capability, and secure domestic supply are becoming central to defense procurement.

Germanium Refining Expands US Critical Materials Capability

Germanium refining is emerging as a strategic growth area for 5N Plus. The US Department of Defense awarded the company $18.1mn in January to scale germanium refining capacity at its St George facility in Utah.

The project will gradually increase the company’s ability to recycle and recover metal from industrial waste. 5N Plus aims to produce 20 metric tonnes per year of high-purity germanium through 2030, strengthening US access to a critical material used in semiconductors, infrared systems, fiber optics, solar cells, and defense technologies.

The company expects the germanium expansion to have very little impact on 2026 revenue because commercial benefits will take at least a year to emerge. Still, the project has strategic value because it connects recycling, refining, and secure supply of high-purity materials in North America.

The Metalnomist Commentary

5N Plus shows how specialty materials companies are becoming strategic infrastructure for AI, defense, and energy transition supply chains. The near-term challenge is cost inflation, but the long-term opportunity is high-purity refining and recycling for materials that governments increasingly view as security-critical.

Canada’s NextSource Sets Sights on $280 Million Graphite Plant in Saudi Arabia

Canada’s NextSource

NextSource Materials, a Canadian mining company, has unveiled ambitious plans to establish a state-of-the-art battery anode facility in Saudi Arabia, dedicated to producing graphite for electric vehicles (EVs). According to a technical study released on Thursday, the proposed plant is set to produce 20,000 tonnes per year of graphite anode active material within the first 16 months of operation. This initiative is part of NextSource's broader strategy to develop an anode processing hub over the next five years, aiming for a total production capacity of up to 100,000 tonnes per year of coated spheronised purified graphite.

Last June, NextSource commenced the production of graphite concentrate at its Molo mine in southern Madagascar. The output supplies leading EV manufacturers such as Tesla and Toyota. The company is targeting a phase 1 nameplate capacity of 17,000 tonnes per year of graphite concentrate by next month.

Looking ahead, the company has set a phase 2 production guidance to reach 150,000 tonnes per year of graphite within two years, a significant increase from the current 45,000 tonnes per year reported in September. Notably, NextSource's 4GWh solar and battery hybrid power plant at the Molo site achieved full operational status in October, capable of supplying one-third of the plant’s power needs.

In April, NextSource signed a long-term lease agreement to construct a second graphite plant in the Freeport Zone of Port-Louis, Mauritius. This facility will initially have a nameplate capacity of 3,600 tonnes per year of battery-grade graphite, with plans to scale up to 14,400 tonnes per year by next year, pending successful negotiations with the government.

The company is also exploring potential expansion into the UAE and North America, as part of its strategic effort to diversify global supply chains for battery-grade graphite anodes. According to trade data, China accounted for over 80 million kilograms of flake graphite imports last year, representing 83% of global imports and underscoring the critical need for diversified sources of this essential raw material for natural graphite anodes.

Global Germanium Demand Soars as Buyers Seek New Supply and Alternatives

The U.S. Department of Defense (DoD)

With rising demand for germanium in defense and advanced computing, global consumers are seeking alternatives as China’s export restrictions have tightened supply. Germanium’s applications in artificial intelligence (AI) and autonomous vehicles have driven increased consumption, especially for its use in high-performance computing and infrared optics. AI systems benefit from silicon-germanium's ability to operate at higher frequencies and lower power, making it critical in modern technological advancements.

Germanium Supply Chain Concerns and Strategic Moves

The U.S. Department of Defense (DoD) is actively working to secure a sustainable germanium supply. The DoD has teamed up with LightPath Technologies to replace germanium in some of its applications, especially in optics, in a bid to reduce supply chain vulnerabilities. Meanwhile, other initiatives focus on increasing germanium consumption for defense purposes. The DoD is investing $14.4 million in 5N Plus, a Canadian semiconductor materials firm, to expand its capacity for producing germanium wafers for solar cells, ensuring continued supply for defense and satellite industries.

Producers are also responding to the supply crunch. Companies in Australia and Canada are exploring germanium-rich mining projects, while Hong Kong Sinomine Rare Metals is pushing to commercialize germanium production at its copper smelting line in Namibia. Belgium’s Umicore, meanwhile, has secured a deal with STL1 in the Democratic Republic of Congo to optimize domestic refining of germanium, further diversifying its global supply.

The rising price of germanium is likely to drive more refining and recycling initiatives, unless alternative materials become more widely adopted in its key applications.

VanadiumCorp Electrolyte Approved for CellCube Vanadium Flow Batteries

VanadiumCorp

VanadiumCorp Resource, a Canadian critical minerals producer, has achieved a significant milestone as its high-purity electrolyte has been approved for use in CellCube’s vanadium flow batteries (VFBs). This development underscores the growing collaboration between VanadiumCorp and Austria-based energy storage system manufacturer CellCube, aimed at enhancing the efficiency and scalability of vanadium flow battery technology.

Collaboration and Production Expansion

Following the approval, the two companies plan to test larger quantities of VanadiumCorp’s electrolyte with CellCube’s VFBs, further strengthening their partnership. This collaboration is crucial as the demand for sustainable energy storage solutions rises globally.

To support this growing demand, VanadiumCorp is scaling up its production capabilities. Currently, the company produces 250,000 liters per year at its pilot plant in Quebec, which is sufficient to supply 4.75MWh of energy storage in VFB installations. However, this is only the beginning of a more ambitious expansion plan.

VanadiumCorp is in the early stages of developing a second plant in Quebec, with a planned initial production capacity of 4 million liters per year. The first phase of the C$20 million ($14.4 million) project is expected to significantly boost the company’s output. By 2028, VanadiumCorp aims to reach an annual production capacity of 26 million liters, enabling 500MWh of energy storage for vanadium flow batteries.

Addressing the Global ESS Market

The collaboration between VanadiumCorp and CellCube positions the companies as key players in the energy storage system (ESS) supply chain. Vanadium flow batteries are gaining traction as a preferred solution for large-scale energy storage due to their long cycle life, scalability, and ability to store energy efficiently from renewable sources like wind and solar.

VanadiumCorp has also announced its intent to seek external investment to solidify its role in the VFB supply chain, a strategic move that aligns with the increasing demand for sustainable and efficient energy storage technologies.

Future Outlook

As the energy storage industry expands, the partnership between VanadiumCorp and CellCube represents a significant step forward in meeting global renewable energy storage needs. With ambitious plans for production growth, VanadiumCorp is poised to play a central role in the evolving market for vanadium-based energy storage solutions.

Cleveland-Cliffs rare earths strategy targets US critical minerals security

Cleveland-Cliffs

Cleveland-Cliffs rare earths strategy is emerging as the company’s next upstream growth pillar amid rising US-China trade tensions. The US integrated steelmaker now sees rare earths exploration as strategic insurance for American manufacturing supply chains. As a result, Cleveland-Cliffs rare earths strategy is tightly linked to national security and industrial resilience.

Cleveland-Cliffs rare earths strategy starts in Michigan’s mining footprint

Cleveland-Cliffs rare earths strategy builds on geological surveys of ore bodies and tailings at two legacy sites. The company has identified indicators of rare earth mineralisation in Michigan’s upper peninsula and in Minnesota. However, it will prioritise the Michigan site first, where state relations are more cooperative.

This first step allows Cleveland-Cliffs to test resource quality and economics before committing major capital. It also keeps the Cleveland-Cliffs rare earths strategy aligned with US policy goals for domestic critical mineral supply. If commercially viable deposits are proven, the firm could leverage existing mining expertise to accelerate development.

Meanwhile, the company is open to cross-border cooperation. Management signalled that Cleveland-Cliffs could work with Canadian partners on rare earths projects. Such collaboration would extend the Cleveland-Cliffs rare earths strategy into a broader North American critical minerals corridor.

Trade tensions push Cleveland-Cliffs rare earths strategy up the agenda

Escalating trade frictions with China are amplifying the urgency behind Cleveland-Cliffs rare earths strategy. China remains the dominant supplier of rare earths, and is tightening export controls on production, processing and foreign trade. At the same time, Washington is threatening sharply higher tariffs on Chinese imports, further destabilising supply expectations.

Rare earths are essential for EV motors, semiconductors, and wind and solar technologies. Therefore, any disruption in Chinese supply could quickly hit US industrial output. Cleveland-Cliffs’ chief executive framed the move as a contribution to reducing reliance on “any foreign nation” for key minerals.

The shift also reflects Cliffs’ roots as an ore producer before its acquisitions of AK Steel and ArcelorMittal USA. By adding rare earths to its portfolio, the group can reconnect its mining heritage with downstream steelmaking and advanced manufacturing demand. This integrated approach could appeal to US policymakers seeking reliable, traceable domestic supply chains.

The Metalnomist Commentary

Cleveland-Cliffs is reading the geopolitical map correctly: processing and ownership of critical minerals matter more than raw tonnage alone. The real question is whether US permitting, capital costs and technology can deliver competitive rare earth output at scale. If it succeeds, Cliffs could become a flagship model for legacy steel producers pivoting into strategic materials.