Li-Cycle Signs Exclusive Recycling Agreement with EU EV Manufacturer

Li-Cycle

Li-Cycle Partners with European Luxury EV Maker for Battery Recycling

Canadian lithium-ion battery recycler Li-Cycle has entered into an exclusive recycling agreement with a high-performance luxury electric vehicle (EV) manufacturer in the European Union. While the name of the manufacturer and specific details regarding the agreement remain undisclosed, this collaboration is set to play a crucial role in the circular economy of the electric vehicle industry.

Enhancing Battery Recycling Operations in Germany

The agreement ensures a steady supply of feedstock from the EV production facility located in the European Union to Li-Cycle’s spoke facility in Magdeburg, Germany. Li-Cycle operates a spoke-and-hub network, where used batteries are first shredded into black mass at the spokes. This black mass is then processed at the hubs to extract valuable materials such as lithium, cobalt, and nickel, which are essential for the production of new batteries.

Li-Cycle's expansion into Germany is a significant step in its mission to build a sustainable solution for lithium-ion battery recycling. The company’s innovative process helps recover critical raw materials, ensuring the responsible disposal and reuse of EV batteries in Europe.

A Strong Financial Backing for Growth

In November 2022, Li-Cycle secured a loan of up to $475 million from the US Department of Energy, which was later upsized by $100 million. This funding boosts the company’s ability to expand its operations and facilities globally, including its new venture in Germany. With the growing demand for EVs and the rise in battery recycling needs, Li-Cycle is well-positioned to serve as a key player in the transition to a greener future.

Conclusion: A Key Step in EV Battery Sustainability

Li-Cycle’s exclusive agreement with an EU-based luxury EV manufacturer signals a promising future for battery recycling. The partnership not only contributes to the global push for sustainability but also strengthens Li-Cycle's role in the critical metals supply chain. As the electric vehicle industry continues to grow, so does the demand for sustainable solutions to manage battery waste and recover valuable materials.

Toyota Expands EV Operations in China and the US with New Facilities

Toyota

Toyota, a leading Japanese manufacturer, is setting up a new electric vehicle (EV)

production facility in Shanghai, China. The company aims to strengthen its presence in the growing Chinese EV market by delivering electric vehicles (EVs) and EV batteries to local customers. At the same time, it will begin shipping EV batteries from its newly established North Carolina facility in the United States. These moves are part of Toyota’s broader strategy to boost global EV production, aligning with its goal to sell 1.5 million EVs by 2026.

New Shanghai Facility: Focusing on EVs and Batteries

The new plant in Shanghai will focus on the production of EV batteries as well as the new Lexus brand EVs. Toyota plans to manufacture 100,000 EV units after 2027, though it has not disclosed whether this production will include batteries for models other than the Lexus EVs. Interestingly, Toyota has decided to set up the new Shanghai firm as a wholly-owned subsidiary, a rare move for foreign automobile manufacturers, who typically partner with local companies in China. This suggests that Toyota is committed to delivering new energy vehicles (NEVs) to Chinese customers rapidly, with a strong focus on the domestic market.

North Carolina Facility: EV Battery Production Ramp-Up

Toyota is also investing heavily in its North Carolina facility, which will start delivering EV batteries from April. This facility, with an investment of approximately $14 billion, will feature 10 production lines for batteries catering to EVs and plug-in hybrid electric vehicles (PHEVs), alongside four production lines dedicated to hybrid vehicle batteries. While Toyota has not disclosed the specific production volume for its North Carolina plant, this significant investment underscores its commitment to becoming a major player in the global EV market.

Toyota's EV Sales Strategy and Challenges

Despite these expansions, Toyota's global EV sales remain sluggish, with the company revising its sales forecast downward for the 2024-25 fiscal year. The revised outlook predicts sales of 142,000 EVs and 154,000 PHEVs, which represents a decrease of 11% and 4.9%, respectively, compared to the previous forecast. Toyota’s decision to adjust its expectations for EV and PHEV sales marks two consecutive downward revisions, highlighting the challenges the company faces in meeting its EV targets. Nonetheless, the investments in China and the US represent critical steps in Toyota's ongoing efforts to accelerate its EV production and meet its 1.5 million EV sales goal by 2026.

Vinfast 2024 EV Delivery Target Achieved Amid Widening Losses and Global Expansion Plans

Vinfast Auto

Vietnamese EV manufacturer Vinfast has surpassed its 2024 EV delivery target, reaching 97,399 units—well above its 80,000-unit goal. While the Vinfast 2024 EV delivery target was exceeded, the company reported a significant net loss of $3.2 billion, underscoring the financial strain of rapid global expansion.

Delivery Growth Triples, But Losses Mount

Vinfast tripled its EV deliveries compared to 2023 and more than doubled deliveries in Q4 2024 alone, reaching 53,139 units for the quarter. Despite this growth, the firm’s net loss widened by 28% year-over-year, driven by elevated gross and operating costs. Total revenue increased 58% to $1.8 billion, reflecting strong EV demand but also aggressive investments in scaling production and international presence.

Chairwoman Le Thi Thu Thuy confirmed that Vinfast’s 2025 goal is to at least double global deliveries. The strategy remains flexible in response to macroeconomic shifts, including inflation, tariffs, and market competition.

2025 Product Launches and Market Focus

Vinfast plans to launch four new EV models in 2025: the Herio Green and Nerio Green SUVs in Q2, and the Minio Green minicar and Limo Green MPV in Q3. The company expects 25–30% of total 2025 deliveries to occur in the first half of the year, with peak volumes anticipated in Q4.

Asia will be a key growth region, with Indonesia, the Philippines, and India forecast to contribute significantly to sales. While U.S. tariffs have impacted shipment planning, Vinfast’s exposure to the U.S. remains low—just 4% of total deliveries in 2024. The firm still plans to complete its $2 billion North Carolina factory by 2028, despite a two-year delay from the original 2025 timeline.

The Metalnomist Commentary

Vinfast’s ability to exceed its 2024 EV delivery target highlights its strong execution in high-growth markets. However, rising losses and shifting regulatory landscapes will test its ability to scale sustainably. The next 12 months will be critical as Vinfast balances rapid growth with operational discipline.

Gotion Foresees Lithium-Iron-Phosphate Batteries Dominating Global EV Market

In a significant shift for the electric vehicle (EV) industry, Gotion, a leading Chinese battery manufacturer, predicts that lithium-iron-phosphate (LFP) and lithium-manganese-iron-phosphate (LMFP) battery chemistries will dominate the global EV battery market within the next two to five years. Speaking at the ASEAN Battery Technology Conference in Singapore on August 21, Gotion's Asia-Pacific president, Cheng Qian, projected that these battery types could account for nearly 70 percent of the global market share, with the remainder being held by nickel-cobalt-manganese (NCM) batteries.

Qian emphasized that LFP battery technology is poised to take over the entire energy storage system sector, surpassing even the International Energy Agency's (IEA) forecast of 80 percent dominance. He attributed this trend to advancements in LFP battery range and the increasing demand for faster charging capabilities among EV consumers. NCM batteries, he noted, would be relegated to use in high-performance and ultra-long-range vehicles.

The transition has already begun to impact the nickel market and is gaining momentum among South Korean battery manufacturers. These companies are anticipating strong demand for more affordable EVs, driven by the cost-effectiveness of LFP batteries. Samsung SDI and SK On, for instance, are preparing to launch mass production of LFP batteries by 2026.

Adding to this momentum, LG Energy Solution (LGES) recently secured a contract to supply 39GWh of LFP batteries to Renault's EV division, Ampere, from its largest battery plant in Europe for the period 2025-2030. LGES is also planning to shift to LFP batteries for a U.S. energy storage project after initially supplying NCM batteries.

Expansion into Two-Wheeler Market

Gotion also predicts a significant shift toward LFP and LMFP batteries in the global two-wheeler EV market, which has been predominantly powered by NCM batteries. Cost reductions will be crucial for major two-wheeler markets in the Asia-Pacific region, including India, Indonesia, and Thailand, Qian noted.

India, which experienced a 30 percent surge in two-wheeler EV sales during its fiscal year 2023-24, reaching a record high of 944,126 units, is poised for further growth. Indonesia is similarly ambitious, aiming to deploy 2 million electric motorcycles by 2025, escalating to 13 million by 2030. The nation has introduced a $458 million subsidy program to incentivize electric motorcycle adoption.

The Philippines has also outlined its EV roadmap, emphasizing the lower upfront costs of electric tricycles and motorcycles as key drivers for EV adoption. The country aims to achieve a 50 percent share of electric motorcycles and tricycles by 2030, increasing to 60 percent by 2040.

Vinfast Lowers EV Sales Target, Delays US Plant Production

Vietnamese electric vehicle (EV) manufacturer Vinfast Auto has reduced its 2024 EV delivery goal and postponed the start of production at its North Carolina plant by three years, citing economic challenges.

"We have adopted a more prudent outlook that is carefully calibrated to near-term headwinds, taking into full consideration the realities of market volatility and potential challenges," said Le Thi Thu Thuy, chairwoman of Vinfast's board of directors, on June 12.

Vinfast now aims to deliver 80,000 EVs in 2024, down from the 100,000 units previously set. The company missed its 2023 target of 40,000-50,000 deliveries, with 21,747 units delivered in the first half of the year.

Construction of the $2 billion North Carolina plant, initially scheduled to begin production in 2025, will now start in 2028. Vinfast is also investing $2 billion in a new EV plant in Tamil Nadu, India, set to open in the first half of 2025 with a production capacity of 150,000 units per year.

Global battery and EV sectors are grappling with economic and geopolitical challenges, including high interest rates and market barriers such as tariffs on Chinese EVs by the US and EU, and potential duties in Canada.

SK On Secures $9.6B Loan for US Battery Plants, Boosting EV Production Capacity

BlueOval SK

South Korean battery manufacturer SK On has successfully secured a loan of up to $9.6 billion for the construction of three new battery plants in the United States. The plants, located in Tennessee and Kentucky, will have a combined production capacity of 120 GWh per year, primarily dedicated to supplying batteries for Ford Motor's electric vehicles (EVs), including models under the Ford and Lincoln brands.

Major Investment in EV Battery Production

This loan, the largest ever awarded under the U.S. Department of Energy’s (DOE) Advanced Technology Vehicles Manufacturing Program, is a significant step towards bolstering the country’s position in the rapidly expanding electric vehicle (EV) market. The funds will be used to develop three state-of-the-art battery production facilities, which are set to contribute to Ford’s ambitious EV production goals.

The collaboration between SK On and Ford Motor has already led to the formation of BlueOval SK, a joint venture designed to build the largest EV battery production operation in the U.S. Despite the recent slowdown in the EV industry, which prompted Ford to delay the construction of its second Kentucky plant in October 2023, production at the first two plants is still scheduled to commence in 2025.

Strategic Importance of the DOE Loan

This loan represents a key investment in the future of the U.S. automotive and energy sectors. As the U.S. seeks to meet rising domestic demand for EVs and maintain its leadership in the global electric vehicle market, the DOE's Advanced Technology Vehicles Manufacturing Program plays a vital role in providing financial support for innovative technologies. By securing this funding, SK On ensures it is well-positioned to support Ford’s EV ambitions while contributing to the nation's electrification goals.

With the ongoing growth of Ford's electrified vehicle sales—reaching 257,693 units between January and November 2024, marking a 40% increase from the same period last year—this new production capacity is expected to play a pivotal role in meeting rising demand. SK On’s battery production capabilities have also seen growth, with the company’s installations increasing by 9.5% year-on-year, capturing 4.5% of the global market share, according to SNE Research.

BYD Achieves Record-High EV Production and Sales in 2024, Cementing Market Dominance

BYD

China’s leading new energy vehicle (NEV) manufacturer, BYD, has set a new industry benchmark by exceeding 4 million units in EV production and sales in 2024. With a 41% year-on-year growth, BYD continues to dominate the global NEV market, reinforcing its commitment to battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs).

BYD’s Historic NEV Production and Sales Growth

BYD’s total NEV production for 2024 reached 4.304 million units, marking a 41% increase from 2023. Notably, the company completely ceased production of gasoline-powered vehicles in March 2022, focusing entirely on electric mobility.

• December 2024 Production: 466,441 units, a 41% increase from the previous year.

• BEVs: 189,759 units (+7.6% YoY)
• PHEVs: 270,960 units (more than double YoY)

• Total 2024 Sales: 4.272 million units, accounting for 100% of BYD’s vehicle sales.

• December Sales: 514,809 units (+41% YoY)
• BEV Sales: 207,734 units (+8.9% YoY)
• PHEV Sales: 301,706 units (more than double YoY)

These figures place BYD at the forefront of China’s rapidly expanding NEV industry, which produced 11.345 million units between January and November 2024—a 35% increase compared to the previous year. Industry experts forecast that China’s total NEV sales will surpass 13 million units in 2024, further solidifying the country’s leadership in EV adoption.

BYD’s Power Battery Expansion and Market Position

In addition to its dominance in the EV sector, BYD is also a major player in power and energy storage batteries. The company installed 23.495GWh of power batteries in December and 194.705GWh throughout 2024—a 29% year-on-year increase.

BYD ranks second among China’s top power battery manufacturers:

1. CATL (Contemporary Amperex Technology): 211.7GWh (45% market share)
2. BYD: 117.5GWh (25% market share)
3. CALB: 32.3GWh (7% market share)

These figures indicate BYD’s growing influence in the global lithium battery market, positioning it as a formidable competitor to CATL in the race for next-generation energy storage solutions.

Conclusion

BYD’s record-breaking EV production and sales in 2024 underscore its dominance in China’s NEV and battery industries. With strong growth in both BEV and PHEV sales, the company is well-positioned to expand its global market share. As China’s NEV production surpasses 13 million units in 2024, BYD’s continued investment in power batteries and energy storage will further reinforce its standing as a global EV leader.

Hydro Takes Full Ownership of Battery Recycler Hydrovolt

Hydrovolt

Acquisition Strengthens Hydro's Position in the Growing EV Battery Recycling Market

Norwegian aluminum producer Hydro has announced the acquisition of the remaining shares in battery recycler Hydrovolt from Swedish battery manufacturer Northvolt. This move gives Hydro full ownership of Hydrovolt, solidifying its position in the rapidly expanding electric vehicle (EV) battery recycling market. The acquisition, valued at 78 million kroner ($6.8 million), is expected to close in the first quarter of 2025, pending court approval.

Hydrovolt, established in 2020 as a 50:50 joint venture between Hydro and Northvolt, operates one of Europe's largest EV battery recycling plants in Fredrikstad, Norway. The plant boasts a 95% recovery rate for materials used in EV batteries, including plastics, copper, aluminum, and black mass—a powder containing valuable elements such as nickel, manganese, cobalt, and lithium.

Expansion and Future Plans

Hydrovolt is also constructing a new recycling plant in Hordain, northern France, with operations slated to commence later this year. The company aims to recycle approximately 300,000 tonnes of battery packs by 2030, equivalent to roughly 500,000 EV batteries.

This acquisition comes as Northvolt faces financial challenges, having filed for Chapter 11 bankruptcy in November 2024 due to substantial debt. Hydro, which has been solely financing Hydrovolt's operations since mid-2024, now seeks a new partner to secure long-term funding for the subsidiary.

Strategic Significance

Hydro's full ownership of Hydrovolt underscores its commitment to sustainable and circular solutions within the aluminum and battery value chains. This strategic move strengthens Hydro's position in the burgeoning EV battery recycling market, contributing to a more environmentally responsible and resource-efficient industry.

Wolfspeed's Silicon Carbide Demand Surges with EV Transition to 800V Architecture

The global transition to 800V electric vehicle (EV) charging systems from the traditional 400V architecture is fueling a significant increase in demand for silicon carbide (SiC) power devices, according to US-based semiconductor manufacturer Wolfspeed. This trend has been a key driver behind Wolfspeed's strong quarterly revenue growth, despite a general downturn in the broader automotive semiconductor market.

Wolfspeed reported that its EV-related revenue more than doubled in the quarter ending June 30 compared to the previous year, and it is expected to increase by around 300% year-on-year in the upcoming quarter ending September 30. Electric vehicles accounted for approximately 50% of Wolfspeed's power device revenue in the most recent quarter, a substantial rise from 25% a year earlier. This percentage is projected to climb above 60% by the end of September.

Chief Financial Officer Neill Reynolds emphasized that while short-term EV adoption rates have been revised downward, the demand for SiC in EVs remains robust. The shift to 800V systems, which require higher power capabilities that SiC technology offers over conventional silicon devices, is a major factor driving this demand.

Industry experts predict that by 2027-30, over 90% of new EVs will utilize 800V systems. Reflecting this trend, approximately 70% of Wolfspeed's $2 billion in design-ins from the June quarter were linked to 800V applications. Many of the EV designs Wolfspeed has developed over the past 5-7 years are now moving into production, with around $500 million in new designs receiving approval for use during the last quarter. This backlog supports over 125 EV models across more than 30 original equipment manufacturers (OEMs) in the coming years.

While the automotive sector is leading the adoption of SiC technology, Wolfspeed’s President and CEO, Gregg Lowe, noted that high-voltage applications in energy markets, such as AI data centers, electric mobility, and solar inverters, are also expected to drive further demand in the coming years.

Wolfspeed is accelerating the transition of its power device production to 200mm semiconductors at its new Mohawk Valley facility in New York, where unit costs are lower compared to its 150mm device facility in Durham, North Carolina. The company expects to complete construction of its new JP Siler City materials factory by mid-2025, which will supply wafers to Mohawk Valley, aiming for 30% capacity utilization.

Although the Durham facility has been operating at reduced rates due to weaknesses in the industrial and energy markets, Wolfspeed is assessing the timing of the 150mm device fab's closure as production ramps up at Mohawk Valley. However, this shift does not alter the company’s long-term view that industrial and energy products will continue to be a substantial part of its portfolio, according to Reynolds.

Neo Estonia Magnet Production Begins with First Traction Motor Samples

Neo Performance Materials

Neo Performance Materials has shipped its first samples under its new Neo Estonia magnet production facility. The company produced 18,000 sintered magnet units at its Narva plant, meeting electric vehicle (EV) traction motor standards. These magnets are now being tested by a key European customer for performance validation.

Strategic Facility Targets EV Supply Chain Localization

The Estonia plant has an initial capacity of 2,000 t/yr, with plans to scale to 5,000 t/yr. It marks a critical step in Europe's strategy to localize its EV supply chain. Backed by Export Development Canada and the EU’s Just Transition Fund, the $75 million facility is designed to reduce reliance on Asian magnet suppliers.

Commercial Production Expected by Late 2026

Neo expects to receive production part approval in early 2026. Full commercial production is set to begin later that year. A leading European EV traction motor manufacturer has already secured 35% of the plant’s first-phase output, confirming strong early demand for Neo Estonia magnet production.

The Metalnomist Commentary

Neo’s new Estonia facility demonstrates how permanent magnet supply chains are shifting westward. With EV demand growing, Neo Estonia magnet production could be a cornerstone of European critical materials independence.

Wolfspeed Secures $2.5B Funding to Expand Silicon Carbide Production in the US

Wolfspeed

Wolfspeed, a prominent US-based semiconductor manufacturer, is poised for significant expansion, targeting a $2.5 billion funding pool to boost its silicon carbide (SiC) production. This strategic move is aimed at addressing the surging demand from electric vehicle (EV) manufacturers and other industries reliant on SiC technology.

Key Funding Milestones

Wolfspeed has entered into a preliminary memorandum of terms (PMT) with the US Commerce Department, securing up to $750 million in direct funding under the Chips and Science Act. To meet the conditions for full funding, the company has also obtained $750 million in financing from a consortium of investment funds.

An additional $1 billion is expected in cash rebates through the advanced manufacturing tax credit provided by the Chips and Science Act. This credit allows companies to claim up to 25% of qualified capital expenditures, further bolstering Wolfspeed’s financial framework.

The funds will enable Wolfspeed to achieve two critical objectives:

Construction of a new SiC wafer manufacturing facility in Siler City, North Carolina.

30% expansion of its SiC power device production plant in Marcy, New York.

These projects are set to create the world’s largest 200mm SiC production footprint, serving key sectors such as automotive, industrial, and energy.

Supporting the EV Revolution

Silicon carbide is a pivotal material for the EV industry due to its superior efficiency in power conversion and thermal management. Wolfspeed’s expanded production capacity aims to solidify its leadership in the SiC market, addressing the rapidly increasing demand driven by global EV adoption.

Driving US Semiconductor Leadership

Wolfspeed’s ambitious initiatives align with the US government’s objectives under the Chips and Science Act, which seeks to strengthen domestic semiconductor manufacturing capabilities. These projects also underscore the growing importance of public-private partnerships in ensuring the US maintains its competitive edge in the global semiconductor industry.

With this funding in place, Wolfspeed is well-positioned to lead the SiC revolution, supporting advancements in clean energy, EV technology, and industrial applications.

Xiaomi Humanoid Robots Signal New Rare Earth Demand From Factory Automation

Xiaomi Humanoid Robots

Xiaomi humanoid robots are moving from development into industrial trials as the Chinese electronics and EV manufacturer tests self-made robots inside its automotive factory. The deployment marks an early but important step toward large-scale use of humanoid robotics in manufacturing.

Xiaomi founder and chief executive Lei Jun said the robots are handling tasks such as loading self-tapping nuts and moving material bins. The systems use multimodal perception and reinforcement learning, while the company continues to improve reliability and test more production stations.

Xiaomi humanoid robots matter because the company has become one of China’s fastest-growing EV makers. Since launching automotive products in March 2024, Xiaomi’s EV deliveries exceeded 410,000 units by the end of 2025, making the auto business a major growth driver for the group.

Factory Automation Could Add Demand for Motors, Sensors and Actuators

Humanoid robots could become a new source of demand for advanced components used in industrial automation. Motors, actuators, sensors, control systems, gears, bearings, batteries, wiring, and lightweight structural materials all become more important as production scales.

Xiaomi plans to deploy large numbers of humanoid robots in its factories within the next five years. The goal is to support production and reduce reliance on labour-intensive tasks. However, Lei Jun also noted that near-perfect reliability remains difficult to achieve on production lines.

This reliability challenge is critical. Automotive factories require stable cycle times, repeatable accuracy, safety compliance, and very low failure rates. Therefore, humanoid robot adoption may scale gradually, starting with repetitive handling tasks before moving into more complex assembly operations.

Rare Earth Permanent Magnets Gain Strategic Exposure

Xiaomi humanoid robots could also increase long-term demand for rare earth permanent magnets. Industry estimates suggest that one humanoid robot can require around 3.5-4kg of rare earth magnets, depending on design and actuator architecture.

This links humanoid robotics directly to praseodymium, neodymium, dysprosium, and terbium supply chains. These rare earths are critical for high-performance permanent magnets used in compact, powerful motors. As robots require precise motion control, magnet performance becomes a key enabling material.

The wider market is also moving quickly. Tesla plans to unveil its third-generation humanoid robot in 2026, while China is positioning itself as a global leader in humanoid robotics. Industry projections suggest China’s humanoid robot output could reach 59mn units by 2050, while companies such as Lens Technology are expanding robot assembly capacity.

The Metalnomist Commentary

Humanoid robotics could become one of the next demand engines for rare earth magnets after EVs, wind power, and industrial motors. The real question is whether magnet supply chains can scale with robotics if factory trials turn into mass deployment.

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

Neo

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

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

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

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

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

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

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

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

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

The Metalnomist Commentary

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

China’s GEM to Back Indonesia’s Green Nickel with HPAL Investment

Green Eco-Manufacture (GEM)

Chinese battery metals leader Green Eco-Manufacture (GEM) has entered into a groundbreaking partnership with Indonesia's PT Vale Indonesia (PTVI) to develop a high-pressure acid leaching (HPAL) project in Central Sulawesi, Indonesia. This venture aims to bolster the green energy transition in the nickel sector, a vital component of the rapidly expanding electric vehicle (EV) industry.

Key Highlights of the HPAL Project

The HPAL facility will process nickel ore supplied by PTVI to produce 66,000 tons per year (t/yr) of mixed hydroxide precipitate (MHP) in nickel metal equivalent. MHP is a precursor for advanced battery materials like nickel-cobalt-manganese (NCM) and cathode active materials (CAM), essential for lithium-ion batteries used in EVs.

Ownership Dynamics and Strategic Growth

Initially, GEM held a 70% stake in the project, while PTVI owned the remaining 30%. However, GEM’s ownership will be reduced to 25% or less, as additional third-party investors join the initiative. This strategic realignment aims to diversify financial backing and enhance the project’s scalability.

Expansion of GEM’s Nickel Ventures

GEM recently completed the second phase of its QMB nickel project in Morowali, Indonesia, achieving a total production capacity of 65,000 t/yr of nickel metal equivalent in MHP. This marks a significant milestone in its push to solidify its footprint in Indonesia’s resource-rich battery ecosystem.

China-Indonesia Collaboration in the EV Sector

The partnership reflects a broader trend of increasing China-Indonesia collaboration in the EV supply chain. Earlier this year, Indonesian mining giant PT Aneka Tambang (Antam) transferred subsidiary shares to China’s Contemporary Amperex Technology Co., Ltd. (CATL), the world’s largest EV battery manufacturer.

As the global EV market continues to expand, these collaborations are poised to make Indonesia a cornerstone of the world’s green energy revolution, leveraging its abundant nickel reserves to meet soaring demand for sustainable battery materials.

Rivian Projects Flat to Lower EV Deliveries in 2025 Amid Component Shortages

RIVIAN PROJECT

US Automaker Faces Uncertainty Despite Cost Cuts and Regulatory Support

LG Energy Solution Deal Secures Future Battery Supply

Rivian, a US electric vehicle (EV) manufacturer, expects its 2025 vehicle deliveries to range from 46,000 to 51,000 units, which could be up to 11% lower than 2024’s total of 51,579 vehicles. The company cites ongoing component supply shortages as the main factor behind this conservative forecast.

Industry Headwinds Challenge Growth Plans

In addition to supply chain constraints, Rivian highlighted policy, regulatory, and demand uncertainties that could further affect its delivery numbers in 2025. These external factors remain largely beyond the company’s control, making projections especially challenging in today’s volatile EV market.

Rivian narrowed its annual loss to $4.7 billion in 2024, an improvement from the previous year’s $5.4 billion loss. This positive shift was aided by $300 million in regulatory credits under the US Inflation Reduction Act during the fourth quarter. Rivian also managed to cut costs by up to $31,000 per vehicle and increased the average selling price of its R1 model through the introduction of a high-value Tri-Motor trim.

Battery Supply Secured Through LG Energy Solution Partnership

To bolster its future production, Rivian signed a five-year agreement with LG Energy Solution in November, ensuring a supply of 67GWh of batteries to be produced in Arizona. This partnership is expected to enhance Rivian’s long-term supply chain resilience as the company scales production of its electric trucks and SUVs.

CATL Shandong Battery Plant Launches First Phase of Production

CATL

China’s leading battery manufacturer CATL has launched the first phase of its new Shandong battery plant, marking a major step in regional capacity expansion. The plant, located in Jining city, is CATL’s first battery production complex in north China and the largest to date in the region. With a capacity of 60GWh per year for power and energy storage batteries, the CATL Shandong battery plant reinforces the company’s strategy to meet surging global demand for EV and grid-scale storage systems.

New Capacity Supports TWh Ambitions and Market Dominance

The second and third phases of the Shandong facility are scheduled to be commissioned in 2024 and 2025, though capacity details remain undisclosed. Meanwhile, CATL is also constructing a 40GWh/year plant in Dongying, China’s largest oil refining hub. These developments support CATL’s plan to add 219GWh of new capacity globally. As a result, the company’s total production is forecast to reach between 700GWh and 1,000GWh by 2025, potentially making CATL the first TWh-scale battery manufacturer in the world, according to market analysts.

Soaring Battery Demand Drives Upstream Lithium Demand

According to IEA data, global demand for EV and energy storage batteries approached 1TWh in 2024. This growth continues to drive upstream consumption of lithium carbonate, as each GWh of lithium iron phosphate (LFP) battery production requires roughly 600 tonnes of lithium carbonate equivalent. As the CATL Shandong battery plant and others ramp up production, the lithium supply chain will face additional pressure, reinforcing the strategic importance of vertical integration and raw material security across the battery industry.

The Metalnomist Commentary

CATL’s aggressive expansion in Shandong underscores its intent to dominate both EV and grid-scale storage markets. As TWh-level production nears, supply chain resilience—particularly in lithium—will determine the company’s long-term cost advantage and market leadership.

China's EV Sales Surge in 2024: Metals Demand Skyrockets Amidst Global Market Shifts

China's EV

Government Incentives and Consumer Demand Drive Unprecedented Growth; 2025 Outlook and Market Impacts

Chinese new energy vehicle (NEV) manufacturers experienced unprecedented sales growth in 2024, driven by robust government incentives and escalating consumer adoption. This surge significantly impacts the metals market, particularly for lithium, nickel, cobalt, and rare earth elements, essential for electric vehicle (EV) batteries and motors.

Record-Breaking Sales Across Major Manufacturers

Company reports indicate widespread sales increases throughout the sector. Notably, state-owned Chery reported the highest annual sales growth, surpassing 10 million units in monthly sales for the first time in December. Xiaomi, a mobile phone manufacturer, successfully expanded into the EV market, selling over 135,000 vehicles in 2024, with a target of 300,000 units in 2025 following the launch of its Xiaomi SU7 model on March 28, 2024.

Government Support and Market Projections

The Chinese government’s strategic support has been pivotal to this growth. Incentives, including subsidies of up to 20,000 yuan ($2,751) for consumers trading in old cars for NEVs and additional local subsidies, have fueled consumer demand. Industry estimates suggest continued government support in 2025, with subsidies ranging from 8-11% of the average NEV price.

China's dominance in the global NEV market remains unchallenged, holding a 70% market share from January to November and 76% in October and November. This contrasts sharply with a slowdown in non-Chinese markets due to reduced government support.

Forecasts project China’s NEV sales to reach 13 million units in 2024 and 16 million in 2025. However, the sector faces potential challenges in 2025, including increased geopolitical risks. The rising demand for NEVs directly correlates with increased demand for essential battery metals, indicating that the metals market will see changes based on the success of the NEV market.

BYD's February EV Production and Sales Soar on Strong Domestic and Overseas Demand

BYD, EV

BEVs and PHEVs Drive China's Top NEV Manufacturer to New Heights

China’s top new energy vehicle (NEV) producer, BYD, recorded major growth in EV output and sales in February 2024. The rise was fueled by expanding consumer demand and BYD’s broad product lineup across low- and high-end NEV segments.

BYD’s February NEV production totaled 327,864 units, up 1.9% from January and threefold year-on-year. This includes 4,913 commercial NEVs and 329,211 passenger NEVs.

Among passenger NEVs, battery electric vehicle (BEV) output surged 194% to 126,419 units, while plug-in hybrid (PHEV) output more than tripled to 202,792 units.

In total, BYD’s NEV production in 2024 so far has risen 41% to 4.304 million units compared with last year.

NEV Sales More Than Double; Overseas Expansion Accelerates

BYD sold 322,846 NEVs in February, up 7.4% from January and more than double year-on-year. This includes 4,613 commercial and 318,233 passenger vehicles.

Passenger BEV sales jumped 127% to 124,902 units, while PHEV sales soared 189% to 193,331 units. The company’s total 2024 NEV sales reached 4.272 million units, a 41% increase from 2023. Analysts expect BYD will reach 5–6 million units in 2025.

BYD has also expanded its global footprint with EV manufacturing projects in Hungary, Thailand, Brazil, Uzbekistan, Cambodia, Morocco, India, Turkey, and Vietnam.

In February, overseas passenger vehicle sales reached 67,025 units, nearly triple the 23,291 units sold a year earlier.

Battery Output Continues to Surge Alongside NEV Growth

As one of China’s top battery makers, BYD installed 16.695 GWh of power and energy storage batteries in February. This is more than double the figure from a year earlier, reinforcing BYD’s scale in both vehicle and battery manufacturing.

With strong domestic momentum and accelerating overseas expansion, BYD continues to lead China’s NEV market.

Envision AESC Launches Battery Plant in France to Boost Global EV Supply

Envision AESC

Strategic Expansion into Europe

Chinese battery manufacturer Envision AESC has inaugurated a 10GWh per year battery plant in Douai, northern France. The facility’s initial phase will produce enough cells to power 200,000 electric vehicles annually, supporting Europe’s growing demand for clean transportation. While the company has not disclosed timelines for subsequent phases, the project represents a significant step in its global manufacturing strategy.

Envision AESC’s goal is to achieve a total global battery capacity of 400GWh per year by 2026, with operations spanning 13 battery manufacturing bases across China, Japan, the US, the UK, France, and Spain. This broad geographic footprint is designed to meet the surging needs of the rapidly developing EV sector and strengthen resilience against supply disruptions.

Scaling Capacity Amid Geopolitical Shifts

The company is simultaneously doubling its production in Cangzhou, China, to 20GWh per year by 2026 and constructing a gigafactory for lithium iron phosphate batteries in Navalmoral de la Mata, Spain, scheduled to start output in 2026. These moves align with a wider trend among Chinese battery firms expanding overseas in response to geopolitical pressures, including higher US import tariffs and the EU’s Critical Raw Materials Act.

Envision AESC is a joint venture between Chinese-owned Envision and Japanese-owned AESC, itself a collaboration between automaker Nissan and component maker Tokin. By strategically positioning manufacturing assets within key markets, the company aims to enhance customer proximity, reduce logistics risks, and align with local regulatory requirements.

The Metalnomist Commentary

Envision AESC’s French facility marks another decisive step in the localization of battery supply for Europe’s EV market. By combining European production with a global expansion strategy, the company is hedging against trade tensions while capturing market share in high-growth regions. The challenge ahead will be scaling production efficiently while adapting to evolving environmental and trade policies in multiple jurisdictions.

Rivian Adjusts Production Amid Supply Challenges but Eyes Future Growth

Rivian

Electric vehicle (EV) manufacturer Rivian faced production setbacks in 2024 due to parts shortages but managed to exceed revised output expectations and secure new partnerships for future expansions.

Production Dip and Recovery

Rivian reported a 14% decline in its annual EV production, with a total of 49,476 units produced in 2024, down from 57,000 units initially projected at the start of the year. Despite these challenges, which began in the third quarter due to a temporary shortage of components for its Enduro motor system used in the R1 series and commercial van variant, the RCV, the California-based company still surpassed its revised guidance of 47,000 to 49,000 vehicles. The company has since resolved the production constraints and is looking towards future improvements and expansions.

Strategic Developments and Future Outlook

Despite the slowdown, Rivian successfully increased its full-year sales by 2.9%, delivering 51,579 EVs, which falls within its target range of 50,500 to 52,000 for 2024. The company's quarterly output dropped by 27%, but deliveries saw a slight increase of 1.5%.

Looking forward, Rivian is set to close a significant $5 billion joint venture with German automaker Volkswagen in the fourth quarter. This partnership is expected to bolster Rivian’s production capabilities, especially as it prepares for the launch of its new R2 mid-size SUV in 2026. The R2 will feature advanced 4695 cylindrical battery cells from LG Energy Solutions (LGES), sourced from LGES's facility in Queen Creek, Arizona.

Additionally, Rivian has adjusted its assembly plans by relocating the production of the R2 to its Normal, Illinois plant, after halting plans for a new plant in Georgia earlier in the year due to a market slowdown and increased competition. In a move to support this transition, Rivian received interest from the Energy Department for a loan of up to $6.6 billion in late November to restart construction and support future growth.