XFH Anode Material Sales Rise as China Battery Demand Expands

Anode Material

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

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

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

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

Suining Complex Expands XFH’s Anode Capacity

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

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

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

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

Energy Storage Growth Supports Anode Demand

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

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

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

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

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

The Metalnomist Commentary

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

XTC New Energy LFP LMFP Capacity Expansion Targets Higher-Density Battery Materials

XTC New Energy

XTC New Energy LFP LMFP capacity will expand in Sichuan as the Chinese battery materials producer adds another 40,000 t/yr of lithium iron phosphate and lithium ferro-manganese phosphate production. The second-phase project will be built in Ya’an city and is expected to start production in June 2028.

XTC New Energy LFP LMFP capacity at the Ya’an plant will reach 80,000 t/yr after both phases are completed. The first phase already provides 40,000 t/yr of LFP capacity, while the new phase will add flexible LFP and LMFP output.

XTC New Energy LFP LMFP capacity expansion reflects China’s continued investment in lower-cost and manganese-enhanced battery chemistries. The project will be operated by subsidiary Ya’an XTC New Energy, with total investment expected at 743mn yuan.

The move comes as Chinese battery material producers position for growing power battery demand and greater interest in manganese-based cathode active materials.

LMFP Gains Momentum as Producers Seek Better Energy Density

LMFP is gaining attention because it can offer higher energy density than conventional LFP. This makes it attractive for battery makers seeking to improve driving range while keeping costs below higher-nickel chemistries.

However, LMFP still faces trade-offs. Batteries using LMFP cathode active material generally have shorter cycle life and lower charge-discharge efficiency than LFP batteries.

This means LMFP is not a simple replacement for LFP. Instead, it is likely to develop as a complementary chemistry for applications where higher energy density is more valuable than maximum cycle life.

The expansion also shows how manganese is becoming more important in battery materials. Manganese-based chemistries can reduce reliance on more expensive or supply-sensitive metals while supporting performance improvements.

For XTC, adding LMFP capacity gives the company more flexibility. It can serve established LFP demand while preparing for customers that want manganese-enhanced phosphate materials.

China’s Cathode Supply Chain Expands Into Manganese-Based Materials

XTC is not alone in expanding LMFP capacity. Several Chinese battery material producers are adding or building manganese-based phosphate projects.

Ningxia Hengchuang Nami began building the first phase of a 30,000 t/yr LMFP plant in Yinchuan in March. Hunan Yuneng, China’s largest LFP producer, is also building an LMFP materials plant.

Jiangxi Greatpower launched the first phase of a 20,000 t/yr LMFP plant in Pingxiang in January. These projects show that China’s battery materials industry is preparing for broader adoption of LMFP.

The trend is strategically important for the cathode supply chain. LFP has already become a major chemistry in electric vehicles and energy storage because of its cost advantage, safety and long cycle life.

LMFP could extend that platform by adding more energy density while preserving some of LFP’s cost and safety benefits. If technical limitations improve, LMFP may become a larger part of China’s battery chemistry mix.

For raw materials, the shift could support manganese demand in battery applications. It also reinforces China’s lead in scaling new cathode chemistries from pilot production to industrial capacity.

The Metalnomist Commentary

XTC’s Ya’an expansion shows that China’s battery materials race is moving beyond simple LFP scale. LMFP is becoming a serious development path because it offers a practical route to higher energy density without fully moving into costlier high-nickel systems.

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.

Huachuang and Cornex Ink Major Lithium-Ion Battery Copper Foil Deal

Copper Foil

Huachuang New Material and Cornex have signed a strategic lithium-ion battery copper foil deal, securing 150,000t of supply over five years. The agreement, finalized on April 27, underlines the accelerating demand for copper foil in China's booming battery and new energy vehicle (NEV) industries. Huachuang, a subsidiary of Huayou Group, will fulfill the order from its three major production bases across China.

Copper Foil Supply Grows with NEV Expansion

China’s lithium-ion battery copper foil deal volume reflects its growing production capacity. The country’s total refined copper foil capacity hit 2.24mn t/yr in 2024, with 1.4mn t/yr dedicated to lithium-ion battery production. Rising NEV output and energy storage battery installations are driving this surge. From January to March 2025, NEV production reached 3.182mn units, a 50% increase year over year.

Cornex Ramps Up as Demand Accelerates

Cornex, though holding just 0.54% of China’s battery installations, is expanding its market role through this copper foil partnership. The deal positions the firm to meet future EV battery demand, where a single vehicle requires up to 38kg of copper foil. Meanwhile, China's total lithium-ion battery copper foil shipments are projected to reach 1.1mn t/yr in 2025.

The Metalnomist Commentary

This lithium-ion battery copper foil deal signals sustained growth in China’s battery supply chain. With copper foil emerging as a critical input, strategic partnerships like Huachuang and Cornex’s will shape regional and global battery material markets in 2025 and beyond.

Hubei STR anode recycling plant will start in March 2026 as China’s battery scrap accelerates

Lithium-Ion Battery

Hubei STR will start the Hubei STR anode recycling plant in March 2026. The project targets 50,000 t/yr of recycled anode materials for lithium-ion batteries. The company began site construction in January 2022. As a result, the facility enters the market as battery recycling volumes rise sharply.

Battery scrap volumes will surge as China’s first NEV wave reaches end-of-life. Lithium-ion batteries usually retire when capacity falls to 80%. The US Advanced Battery Consortium links this threshold to an 8–12 year service life. Therefore, post-2025 retirements should expand the available feedstock for anode material recycling.

China’s EV scale is turning recycling into a supply chain priority

China’s EV scale is making the Hubei STR anode recycling plant strategically timed. China pushed NEV output above one million units in 2018. NEVs reached 40.9% of total auto sales in 2024. Meanwhile, October NEV sales hit 1.72mn units and took 51.6% market share.

Recycling capacity must follow that growth curve. China Association of Automobile Manufacturers forecasts NEV sales near 16mn units in 2025, up from 12.86mn in 2024. China Automotive Engineering Society estimates retired power batteries exceeded 580,000t in 2023. It expects retirements to reach 6mn t by 2030. Consequently, anode recycling becomes a cost, ESG, and security lever for battery makers.

Graphite recovery and copper foil separation define the value capture

Graphite recovery drives much of the anode recycling economics. The lithium-ion battery recycling process starts with dismantling and material separation. Recyclers can recover plastics and the diaphragm from anode-side components. They can also extract aluminium foil from cathode materials.

Graphite recovery then becomes the key upgrade step. Recyclers separate graphite from copper foil in spent anodes. They purify the graphite and sell it back into the battery materials chain. Therefore, the Hubei STR anode recycling plant can support a more circular anode supply. It can also reduce exposure to price swings in battery-grade inputs.

The Metalnomist Commentary

China’s recycling race is shifting from metals recovery to materials performance. Therefore, graphite purity and consistent output will decide who wins long-term contracts. However, recyclers must prove traceability and ESG compliance to unlock premium pricing.

Shidai Ruixiang Launches LMFP Battery Material Plant in Gansu

Baiyin Nonferrous Group

China’s Shidai Ruixiang has launched a new LMFP battery material plant with a production capacity of 20,000 tonnes per year. Located in Baiyin city, Gansu province, this marks the first phase of what will become the world’s largest LMFP facility. Once complete, the site will scale to 100,000 t/yr in lithium ferro-manganese phosphate production for next-generation EV battery applications.

The LMFP battery material plant is operated by Shidai Ruixiang, a joint venture between Gansu Elephent Energy and Baiyin Nonferrous Group, a major Chinese state-owned metals producer. The full project will be developed in three phases, although details for the next stages remain undisclosed. This launch reinforces China’s dominant position in advanced battery cathode material (CAM) supply chains.

China Expands LMFP Footprint in Global EV Market

LMFP materials offer higher energy density and longer driving range than traditional LFP cathodes, while keeping manufacturing costs low. However, they have shorter life cycles and reduced charge-discharge capacity, making them more suitable for mid-range EVs or power tools. Despite this, China’s battery sector is accelerating investment in LMFP research and production.

Other major CAM players such as Hunan Yuneng and Ningbo Ronbay are also expanding LMFP production. Ronbay announced a dual LMFP and sodium-ion CAM plant in Xiantao, Hubei, while Yuneng is constructing a dedicated LMFP facility. These efforts position LMFP as a potential mainstream solution for future battery platforms balancing cost, safety, and range.

Strategic Role of State-Backed Metals Companies in CAM Expansion

The Shidai Ruixiang LMFP battery material plant highlights growing integration between state-backed metals enterprises and energy storage innovation. Baiyin Nonferrous brings decades of expertise in copper and zinc processing—critical metals for battery infrastructure—into the cathode materials space. The partnership reflects China's strategy to leverage existing industrial assets for clean tech scalability.

As battery chemistries diversify in response to cost and performance demands, China’s control over both upstream raw materials and downstream manufacturing provides a distinct competitive edge in the global energy transition economy.

The Metalnomist Commentary

The LMFP battery material plant in Gansu represents a strategic shift toward diversified CAM solutions for scalable EV deployment. As Chinese producers push LMFP into the mainstream, global automakers and battery buyers will need to weigh performance trade-offs against cost and availability.

China’s Jiaozuo Orient to build battery-grade zirconia plant

Jiaozuo Orient, ZrO2 plant

China’s Jiaozuo Orient to build zirconia plant to target fast-growing battery materials demand. China’s Jiaozuo Orient to build zirconia plant with 10,000 t/yr designed capacity for battery-grade, high-purity composite zirconia. As a result, the company positions itself for solid-state battery supply chains.

China’s Jiaozuo Orient to build zirconia plant in Jiaozuo, Henan, after receiving project approval on 5 January. The subsidiary sits under Guangdong Orient Zirconic, China’s largest zirconium producer. Meanwhile, the plan supports a broader downstream expansion strategy across zirconium chemicals and ceramics.

Battery-grade zirconia capacity targets LLZO and solid-state battery adoption

High-purity composite zirconia supports advanced battery materials. LLZO, a lithium lanthanum zirconium oxide electrolyte, uses high-purity zirconium inputs. Therefore, zirconia investments now track solid-state battery pilot lines and future scale-up.

The new site will be built in two phases. Each phase will add a 5,000 t/yr production line. However, the second phase timing will depend on market demand and commercial traction.

Integrated zirconium feedstock chain strengthens cost and quality control

China’s Jiaozuo Orient to build zirconia plant alongside an upstream feedstock buildout. A sister subsidiary plans a 60,000 t/yr battery-grade zirconium oxychloride project. As a result, the group can run an integrated chain from oxychloride to high-purity zirconia.

This integration can lower conversion risk for customers. It can also improve traceability and consistency for battery-grade specifications. Meanwhile, the group reinforces its technology position in zirconium processing.

The project budget totals 300mn yuan, with a 32-month construction period. The scale remains modest versus bulk industrial zirconia. However, battery-grade quality and purification steps often drive higher value per tonne.

The Metalnomist Commentary

Battery-grade zirconia looks like a strategic hedge on LLZO timelines. However, demand could stay lumpy until solid-state batteries move beyond pilot volumes. Producers that integrate feedstock and purification will capture early qualification wins.

China Battery Overcapacity Crackdown Targets Price Wars and Overseas Expansion

China Battery

China battery overcapacity concerns deepened after government authorities held another meeting with leading power and energy storage battery producers on 9 April. The meeting signalled stronger regulatory pressure on disorderly competition, low-price strategies and excessive capacity expansion in the lithium battery sector.

The meeting brought together 16 major battery producers and several industry associations. It was the second such regulatory session since January, showing that Beijing sees battery overcapacity as a structural industrial risk rather than a short-term market adjustment.

China battery overcapacity has grown as domestic and overseas capacity plans have moved far ahead of actual demand. Regulators are now seeking capacity early-warning mechanisms, stronger market-order controls and tighter oversight of aggressive price competition.

Regulators Target Involution-Style Competition

Chinese authorities said the meeting aimed to implement senior government directives against “involution-style” competition. This term refers to excessive internal rivalry that destroys margins, weakens investment discipline and creates unsustainable price wars.

Regulators also discussed a negative list of irrational competitive practices in the power and energy storage battery industry. This would give authorities a clearer tool to identify and restrict behaviour that destabilises the market.

The new focus on the “externalisation of involution” is especially important. It shows that Beijing is now concerned not only about domestic overcapacity, but also about excessive overseas expansion by Chinese battery producers.

Chinese battery companies have accelerated global plant construction to serve overseas demand and reduce exposure to geopolitical restrictions. But if too much capacity is exported abroad, price pressure could spread into global power battery and energy storage markets.

Capacity Mismatch Creates Pressure Across Battery Materials

China’s power and energy storage battery output reached 1,755.6GWh in 2025, up 60.1% from a year earlier. Sales rose by 63.6% to 1,700.5GWh, confirming strong demand growth but also exposing the scale of capacity pressure.

Planned national capacity has climbed close to 5,000GWh. That implies utilisation rates below 40%, which helps explain why regulators are concerned about price wars and weak production discipline.

The issue also matters for battery materials. Overcapacity can pressure cathode active materials, precursors, lithium carbonate, graphite, copper foil, separators and electrolytes if producers chase volumes rather than margins.

Chinese battery firms are also becoming more important abroad. CATL, BYD, Gotion High-Tech, Farasis Energy, SVOLT Energy and CALB recorded 218GWh of overseas power battery installations in 2025, accounting for 47.2% of the global market.

The Metalnomist Commentary

China’s battery crackdown shows that scale alone is no longer enough. The next phase of battery competition will reward disciplined capacity, stronger technology, regional supply-chain positioning and healthier margins over pure volume growth.

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’s Guizhou Kaijin Expands Battery Anode Capacity

Kaijin battery

Expansion Strengthens Position in Lithium-Ion Battery Market

China’s Guizhou Kaijin has expanded its lithium-ion battery anode production capacity to 120,000 tonnes per year. The facility in Tongren city, Guizhou province, began operations in May 2022 with six lines producing 100,000 t/yr. Following upgrades and the installation of two additional lines, trial production for the seventh and eighth lines is set to begin by the end of July.

Kaijin’s sales performance reflects this rapid expansion. Between January and April 2025, the company sold 50,000 tonnes of anode materials, compared with just 10,000 tonnes during the same period in 2023. As a subsidiary of Guangdong Kaijin, one of China’s top five anode producers, the company strengthens its foothold in the global battery supply chain.

NEV Boom Drives Rising Demand for Anode Materials

China’s fast-growing new energy vehicle (NEV) industry is fueling strong demand for lithium-ion battery anode materials. National shipments of anode materials reached 2.12mn tonnes in 2024, up 24% from 2023. This growth aligns with rising NEV production and sales, supported by robust consumer demand and government incentives.

China produced 5.7mn NEVs from January to May 2025, a 45% increase compared with the same period in 2024. Sales also grew by 44% to 5.61mn units. As a result, overall production of power and energy storage batteries rose by 63% year-on-year to 568.1GWh during January-May, according to the China Automotive Battery Innovation Alliance (Cabir).

The Metalnomist Commentary

Guizhou Kaijin’s expansion demonstrates the strategic scaling of China’s battery materials industry in response to surging NEV demand. As global automakers diversify supply chains, Kaijin’s growth reinforces China’s dominance in anode materials. However, international competition and technology shifts, such as LFP adoption, will challenge long-term market positioning.

China Sinopec CATL Investment Accelerates EV Battery Exchange Network Expansion

Sinopec CATL

China Sinopec CATL investment emerged as the state-controlled oil refiner became the largest cornerstone investor in the battery producer's record-breaking Hong Kong IPO. The strategic China Sinopec CATL investment supports the companies' ambitious plan to build 10,000 electric vehicle battery exchange stations nationwide, marking a significant shift for the traditional energy company toward new energy infrastructure as China's EV market continues rapid expansion.

Record IPO Success Validates Strategic Partnership Value

China Sinopec CATL investment positioned the oil refiner as the largest cornerstone investor in CATL's $4.6 billion Hong Kong IPO that became the world's largest listing in 2025. CATL shares surged over 16% in their Hong Kong trading debut on May 20th, closing at HK$306.2 compared to the IPO price of HK$263 per share. The successful market reception demonstrates strong investor confidence in the partnership strategy and China's EV infrastructure development plans.

Meanwhile, the two companies reached an initial agreement in April to build more than 500 EV battery exchange stations nationwide in 2025, with a long-term target of 10,000 stations. This ambitious infrastructure rollout leverages Sinopec's existing network of 30,000 integrated energy charging stations serving 300 million users, including approximately 10,000 EV charging and battery exchange stations already operational across China.

Strategic Project Targets Heavy Vehicle Transportation

However, Sinopec and CATL finalized a specific agreement on May 21st for the Qiji Exchange Station project focused on heavy trucks in Fujian province. The project will serve critical road freight transportation along the coastal route between the Yangtze River Delta and Pearl River Delta using CATL's latest battery exchange system technology. This heavy vehicle focus addresses a key market segment where battery exchange offers significant advantages over traditional charging methods.

Therefore, the heavy truck application demonstrates practical implementation of battery exchange technology for commercial vehicles requiring rapid turnaround times. The coastal corridor route represents one of China's most important freight transportation arteries, making successful deployment here a potential template for nationwide expansion. The project showcases how traditional energy companies can integrate new energy technologies into existing transportation infrastructure.

Traditional Energy Companies Embrace New Energy Transition

Furthermore, Sinopec's investment reflects broader trends among conventional energy companies accelerating investments in new energy markets. State-run energy firm PetroChina launched a "supercharger station" in Shanghai's Yili road area in March, demonstrating industry-wide recognition of EV infrastructure opportunities. These companies leverage existing real estate assets and customer relationships to enter growing new energy segments.

As a result, joint ventures between traditional energy companies and EV technology providers create synergistic opportunities for rapid infrastructure deployment. PetroChina, SAIC, Sinopec, and CATL established the Shanghai JieNeng Zhidui New Energy Technology joint venture in September 2022 to lease EV battery packs and develop battery exchange technology. CATL's construction of a 40 GWh annual capacity factory in Dongying, China's largest oil refining city, further strengthens these traditional energy sector connections.

The Metalnomist Commentary

Sinopec's cornerstone investment in CATL's record-breaking IPO exemplifies how China's traditional energy giants are strategically positioning themselves within the electric vehicle ecosystem, leveraging their existing infrastructure assets to capture new revenue streams in battery exchange services. The partnership's focus on heavy vehicle applications addresses a critical market need where battery exchange technology offers compelling advantages over conventional charging, potentially accelerating commercial EV adoption across China's logistics sectors.

China copper foil supply deal locks in Baijiada CALB copper foil volumes through 2028

Copper Foil

China copper foil supply deal activity is accelerating as battery makers lock in inputs. Shenzhen Baijiada New Energy agreed to supply 373,000 tonnes of copper foil to CALB from 2026 to 2028. Meanwhile, the company also committed to deliver 45,000 tonnes in 2025. China copper foil supply deal structures like this are reshaping procurement strategies across the battery chain.

Baijiada will deliver 58,000 tonnes in 2026, 130,000 tonnes in 2027, and 185,000 tonnes in 2028. The contract signals confidence in long-cycle EV and storage demand. Therefore, Baijiada CALB copper foil volumes now function like an anchor order. That anchor can influence capacity planning, financing, and raw copper sourcing.

Battery output growth pushes battery copper foil demand higher

Battery copper foil demand continues to rise as China expands power and energy storage output. China’s battery industry reported 1,292.5GWh of production in January to October. Installed volume reached 578GWh over the same period. Meanwhile, CALB posted 40.65GWh of installed capacity, or 7% nationally. As a result, battery copper foil demand remains one of the fastest scaling material pull factors.

China also increased new energy vehicle production to 13.015mn units in the first ten months. Sales reached 12.943mn units over the same timeframe. Therefore, the China lithium battery supply chain is preparing for additional downstream growth. CAAM expects domestic sales to approach 16mn units in 2025.

Capacity expansion intensifies competition in China’s copper foil sector

China’s copper foil industry is expanding quickly and raising execution pressure. Industry estimates place refined copper foil capacity at 2.24mn t/yr in 2024. That marks a 34% increase versus the prior year. Meanwhile, Baijiada operates 140,000t of annual capacity today. Its parent group plans to expand total capacity to 300,000t/yr by 2030.

EV copper foil consumption strengthens the demand floor for multi-year contracts. Industry estimates suggest each battery electric vehicle can use up to 38kg of copper foil. Therefore, China copper foil supply deal commitments can de-risk utilization. However, rapid capacity additions can still compress margins. Producers must optimize quality, yield, and delivery reliability.

The Metalnomist Commentary

Long-dated offtake contracts now act as capacity “tickets” in China’s battery materials race. However, the sector must balance scale with pricing discipline as capacity surges. Therefore, operational efficiency and customer stickiness will decide the next winners.

Zabuye lithium project marks major step in China’s brine supply expansion

Zabuye lithium Salt lake

The Zabuye lithium project in Tibet has entered its second phase, expanding China’s brine-based lithium capacity. The Zabuye lithium project now adds sizeable battery-grade output at a time when the global lithium market is tipping into surplus. As a result, the Zabuye lithium project strengthens China’s ability to influence pricing and security of supply across the EV battery chain.

Phase-two expansion lifts Tibet’s brine lithium capacity

China’s Tibet-based producer has started up phase two at Zabuye with 9,600 t/yr of battery-grade lithium carbonate. The new phase also includes 2,400 t/yr of industrial-grade lithium carbonate, adding flexibility across downstream chemical and industrial customers. Commissioning of the second-phase lines began in late 2023, but full launch slipped from a planned June start into late September. However, the first phase, focused on 7,000 t/yr of lithium concentrate, has remained operational and continues to support the overall project. Zabuye draws on one of the world’s largest salt-lake resources, with proven reserves of around 1.84mn t of lithium in brine. This makes it Asia’s largest lithium brine lake and the third-largest globally, underlining its strategic relevance for long-term supply.

Zabuye lithium project scales into a looser global market

The timing of the Zabuye lithium project expansion coincides with strong growth in global brine output. Market forecasts indicate that global lithium brine production will rise by about 24pc in 2025 to above 370,000t LCE. At the same time, total lithium feedstock supply is projected to reach about 1.6mn t LCE in 2025. Meanwhile, demand is expected to come in near 1.5mn t LCE, implying a surplus of roughly 100,000t. Therefore, new brine tonnes from Zabuye will feed into an already better-supplied market, potentially reinforcing price pressure if demand underperforms. Yet high-quality, low-cost brine projects retain strategic importance, especially for integrated Chinese players.

Strategic shareholders reinforce China’s battery value chain

Zabuye’s ownership underscores its role in China’s EV and battery strategy. Major Chinese battery and lithium companies hold significant stakes in the project, tightening the link between upstream brine resources and downstream cathode and cell manufacturing. This integrated structure allows key players to secure battery-grade lithium carbonate volumes under long-term arrangements. In addition, the project’s location in Tibet diversifies China’s domestic resource base beyond traditional hard-rock and other brine hubs. However, higher-altitude operations and logistics can still pose cost and reliability challenges compared with coastal or overseas assets. Even so, the project is positioned as a core pillar in China’s wider lithium industrial ecosystem.

The Metalnomist Commentary

Zabuye’s phase-two launch shows how Chinese brine projects are still scaling even as the market moves into surplus. For global buyers, the combination of growing Chinese brine capacity and integrated ownership by major EV and lithium players suggests continued competitive pressure on higher-cost producers. The medium-term question is how long marginal assets outside China can remain viable if brine-led oversupply persists.

Dongdao Anode Production Expansion Adds More Capacity to China’s Battery Materials Chain

Dongdao Anode Production

Dongdao anode production expansion in Guangdong province shows that China continues to build scale across graphite and next-generation battery materials. Guangdong Dongdao New Material has started construction of two anode processing lines and one silicon-carbon anode line in Zhanjiang.

The two new processing lines will each have 10,000 t/yr of capacity. One line will produce synthetic graphite anode materials, while the other will produce natural graphite anode materials. The silicon-carbon anode line will have 500 t/yr of capacity, giving Dongdao a foothold in higher-performance battery material development.

Dongdao anode production growth matters because anode materials remain a core part of the lithium-ion battery value chain. China already dominates graphite processing, and the company’s latest investment reinforces the country’s ability to expand both conventional and advanced anode supply.

Graphite Anode Capacity Continues to Scale in China

Dongdao already operates 100,000 t/yr of natural graphite anode capacity and 100,000 t/yr of synthetic anode capacity. The new Zhanjiang lines will add more processing flexibility across both major graphite anode routes.

The company is also building much larger synthetic anode projects elsewhere in China. These include 300,000 t/yr of capacity in Leizhou, Guangdong, and 150,000 t/yr in Yilong, Guizhou. This shows that synthetic graphite remains a major investment focus as battery producers seek consistent performance, controlled quality, and scalable supply.

Dongdao’s subsidiary, Zhanjiang Juxin New Energy, also plans to build a 20,000 t/yr spherical graphite facility in Zhanjiang. A commissioning date has not yet been set, but the project would add another processing step that supports natural graphite use in battery anodes.

Silicon-Carbon Line Signals Next-Generation Battery Focus

The planned 500 t/yr silicon-carbon anode line is smaller than the graphite lines, but it carries strategic importance. Silicon-carbon anodes can improve battery energy density and performance, although commercial scaling remains more technically demanding than conventional graphite.

Dongdao’s decision to build this line alongside graphite processing capacity suggests a dual strategy. The company is expanding mainstream anode capacity while preparing for future demand from higher-performance battery chemistries.

All three Zhanjiang lines are scheduled to start operations in December 2027. By then, battery supply chains may be more focused on cost reduction, fast charging, energy density, and material efficiency. Producers with both graphite scale and silicon-carbon development capacity could be better positioned for that transition.

The Metalnomist Commentary

Dongdao’s expansion shows that China is not slowing its grip on the anode materials chain. The strategic issue for global battery supply chains is no longer only graphite availability, but who controls processing scale, qualification, and next-generation material development.

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

XTC

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

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

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

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

China CAM feedstock integration deepens links with global battery OEMs

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

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

The Metalnomist Commentary

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

Ronbay Secures Major Sodium-Ion Battery Cathode Order, Strengthening Market Presence

Ningbo Ronbay

Expanding Sodium-Ion Battery Cathode Production

Ningbo Ronbay, a leading Chinese battery cathode active material (CAM) manufacturer, has secured a 3,000-tonne order for sodium-ion battery cathode material from an undisclosed client. The company announced the deal on January 20, reinforcing its position as a key player in China’s sodium-ion battery market.

Ronbay has been heavily investing in sodium-ion cathode materials, committing 3 billion yuan ($413 million) in September 2023 to construct a 50,000-tonne-per-year production complex, which is set to launch by 2026. This investment aligns with the growing global demand for sodium-ion batteries, expected to reach 23GWh in 2025.

China’s Sodium-Ion Battery Industry Gains Momentum

China’s leading battery manufacturers, including CATL, BYD, and Hithium, have accelerated their sodium-ion battery production. BYD, for example, started construction on a 30 GWh per year sodium-ion battery plant in Xuzhou, Jiangsu province, in early 2024. These expansions indicate increasing market confidence in sodium-ion battery technology, particularly for two-wheeled and three-wheeled vehicles, energy storage, and power applications.

The Chinese government has also actively promoted sodium-ion battery development as part of its 2021-2025 energy strategy, emphasizing the battery’s cost advantages, resource abundance, and environmental benefits compared to lithium-ion batteries. However, despite strong governmental backing, sodium-ion battery shipments in 2024 fell short of earlier expectations due to higher manufacturing costs compared to lithium-ion and lead-acid batteries, according to Chinese research institution EV Tank.

Ronbay’s Role in the Growing Sodium-Ion Market

With this latest order, Ronbay strengthens its leadership in sodium-ion cathode production, ensuring steady market growth despite industry challenges. The company’s large-scale investment and expanding production capacity position it to capitalize on rising sodium-ion battery adoption while supporting China's push for alternative battery technologies.

As demand for low-cost and sustainable energy storage solutions rises, sodium-ion batteries could play a crucial role in diversifying the global battery supply chain, particularly as a viable alternative to lithium-ion technology.

China's LMFP Battery Plant Boosts Cathode Material Market

Battery LFP

China’s LMFP battery materials sector takes a leap forward with Shanxi Tewashi’s 100,000 t/yr plant launch.

China’s Shanxi Tewashi Energy has officially started production at its new 100,000 t/yr lithium ferro-manganese phosphate (LMFP) cathode material plant. Located in Changzhi city, the facility is equipped with 16 fully automated production lines and marks a major investment in next-generation lithium-ion battery technology. The company, formed in late 2023, is a joint venture between Qianyun High-tech Energy and state-owned Shanxi Changgao Zhihui Group.

This launch further underscores China’s strategic focus on expanding domestic LMFP output. LMFP cathode materials offer higher energy density and lower costs compared to traditional lithium iron phosphate (LFP), making them attractive for electric vehicles. However, market analysts note that LMFP’s shorter cycle life and reduced discharge performance remain challenges for widespread adoption. Nevertheless, Chinese firms are doubling down on development. Major players like Hunan Yuneng and Ningbo Ronbay are building large-scale LMFP facilities to capture future market share.

The push into LMFP reflects China’s evolving battery supply chain strategy. As battery manufacturers aim to improve performance and reduce reliance on critical raw materials like nickel and cobalt, LMFP offers a viable alternative. With new LMFP projects launching across Shanxi, Hubei, and Gansu provinces, China is positioning itself as the global leader in diversified cathode active materials. The ramp-up of LMFP output may also influence global pricing dynamics for both LFP and emerging sodium-ion chemistries.

The Metalnomist Commentary

China's aggressive expansion of LMFP cathode production signals a pivot toward alternative battery chemistries. As the global EV sector seeks higher energy density at lower cost, Chinese manufacturers are racing to commercialize LMFP at scale—potentially reshaping the future of EV battery composition.

China LFP Supply Deal Between Wanrun and CATL Secures 1.32 Million Tonnes

Wanrun

China LFP supply deal reached historic proportions as Hubei Wanrun New Energy Technology signed a five-year agreement to deliver 1.32 million tonnes of lithium-iron-phosphate cathode materials to CATL. The massive China LFP supply contract from May 2025 through May 2030 represents one of the largest battery materials procurement agreements in the industry, highlighting CATL's aggressive expansion strategy and LFP technology's growing market dominance.

Strategic Partnership Drives Battery Technology Innovation

China LFP supply partnership extends beyond simple procurement to encompass joint research and development initiatives. Wanrun and CATL agreed to collaborate on high-density LFP product iteration and mass production capabilities while jointly exploring new energy market opportunities. CATL committed to purchasing at least 80% of promised monthly quantities, providing Wanrun with guaranteed revenue streams and production planning certainty.

Meanwhile, Wanrun demonstrated strong operational performance with 2024 LFP production reaching 233,108 tonnes, representing 51% growth from 2023. Sales volumes increased 39% to 228,240 tonnes during the same period, reflecting robust market demand and the company's expanding manufacturing capabilities. This performance trajectory supports the substantial supply commitments made to CATL.

CATL's Market Leadership Drives Demand Growth

However, CATL's explosive growth trajectory necessitates secured raw material supplies for sustained market expansion. The battery giant sold 120 GWh of batteries in Q1 2025, marking 30% year-over-year growth and reinforcing its position as China's largest battery producer. CATL raised $4.6 billion through Hong Kong Stock Exchange share sales on May 20th, specifically targeting global battery market expansion financing.

Therefore, the Wanrun supply agreement aligns perfectly with CATL's international growth strategy and capital deployment plans. The five-year commitment provides production stability while supporting CATL's aggressive capacity expansion across multiple global markets. This strategic partnership model demonstrates how Chinese battery companies integrate vertically to secure critical material supplies.

LFP Technology Gains Global Market Share

Furthermore, lithium-iron-phosphate batteries captured nearly half of the global electric vehicle battery market in 2024 according to the International Energy Agency. LFP technology offers significant advantages including lower manufacturing costs and enhanced safety performance compared to ternary battery alternatives. These benefits drive increasing adoption across automotive manufacturers seeking cost-effective energy storage solutions.

As a result, the Wanrun-CATL partnership positions both companies advantageously within the rapidly expanding LFP segment. China's dominance in LFP production creates competitive advantages for domestic battery manufacturers while supporting the country's electric vehicle industry leadership. The supply agreement reinforces China's integrated approach to battery supply chain control from raw materials through finished products.

The Metalnomist Commentary

The Wanrun-CATL supply agreement exemplifies China's systematic approach to battery supply chain integration, securing critical materials access while driving technology innovation through strategic partnerships. This 1.32 million tonne commitment reflects both companies' confidence in LFP technology's long-term market prospects and China's continued dominance in global battery manufacturing despite increasing international competition.

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

Lopal

Strategic Agreement Secures 150,000t of LFP Through 2029

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

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

Lopal Expands Production Footprint Across China and Indonesia

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

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

Term Contracts Signal Confidence from Global OEMs

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

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

The Metalnomist Commentary

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

China Graphite Spherical Graphite Output Falls as Natural Anode Demand Weakens

China Graphite Group

China Graphite spherical graphite output fell in 2025 as weak demand from the natural graphite anode material sector and existing inventories pressured production. The Hong Kong-listed natural graphite producer produced 2,300t of spherical graphite during the year, down 28% from 2024.

The decline reflects a broader shift in China’s anode materials market. Battery producers are still expanding overall anode consumption, but natural graphite is losing share to artificial graphite because of performance and price competition.

China Graphite spherical graphite output weakness shows that battery material growth does not benefit all feedstock routes equally. Natural graphite remains important, but artificial anode materials are gaining ground because they offer stronger cycling life and rate performance for many lithium-ion battery applications.

Spherical graphite sales also fell in 2025, although less sharply than production. China Graphite sold 5,815t of spherical graphite, down 6.9% from a year earlier, suggesting the company partly relied on existing inventory to meet demand.

Artificial Graphite Competition Pressures Natural Anode Feedstock

China’s anode material shipments rose strongly in 2025, reaching 2.9mn t, up 39% from a year earlier. However, natural graphite anode materials moved in the opposite direction.

Natural graphite anode shipments fell to 210,000t in 2025, down 19% from the previous year. Their share of China’s total anode material shipments dropped to 7.2%, showing that natural graphite is becoming a smaller part of the domestic anode mix.

This matters directly for spherical graphite producers. Spherical graphite is a key processed feedstock for natural graphite anode materials. When natural anode production slows, spherical graphite demand weakens quickly.

China Graphite attributed the decline to price competition and lower output of natural graphite anode materials. The company also pointed to the shorter cycling life and weaker rate performance of natural graphite compared with artificial anode materials.

Artificial graphite has become dominant in China’s battery supply chain because many battery makers prioritise consistency, fast charging performance and long cycle life. These factors are especially important for electric vehicles and energy storage systems.

The result is a margin squeeze for natural graphite processors. Even when total battery demand grows, spherical graphite producers must compete against artificial graphite suppliers that are more closely aligned with mainstream cell performance requirements.

Flake Graphite Output Rises Despite Spherical Graphite Weakness

China Graphite’s upstream natural graphite flake business performed better than its spherical graphite segment. The company produced 57,600t of natural graphite flake in 2025, up 10.8% from a year earlier.

The increase was supported by equipment upgrades, showing that China Graphite improved mining or processing efficiency even as downstream spherical graphite demand weakened. Flake graphite sales also edged higher by 1.3% to 46,020t.

This creates a mixed operating picture. Upstream flake output increased, but downstream spherical graphite production fell sharply. The gap suggests that the company may need to manage feedstock allocation carefully if natural anode demand remains weak.

Natural graphite still has strategic value. It can support lower-cost anode production and remains important for battery supply-chain diversification. However, its competitiveness depends on purification, coating, consistency, performance and customer qualification.

For China Graphite, the next challenge is not only producing more flake graphite. It must defend its position in higher-value downstream graphite products as the anode market shifts toward artificial materials and more demanding battery specifications.

The company’s results also highlight a wider issue for natural graphite markets. Supply growth alone is not enough. Producers need downstream demand from qualified anode makers, battery customers and applications where natural graphite retains a cost or performance advantage.

The Metalnomist Commentary

China Graphite’s results show that battery demand growth is becoming more selective across the graphite value chain. Natural graphite suppliers must improve processing quality and downstream integration if they want to compete against artificial graphite in high-performance batteries.