LGES Exits Indonesia EV Battery Project Amid Strategic Shift

LGES

LGES exits Indonesia EV project

LGES exits Indonesia EV project, marking a significant shift in its global battery strategy.

South Korea’s LG Energy Solution (LGES) has officially withdrawn from Indonesia’s $8.4 billion Grand Package EV battery initiative.

The project originally included LGES, LG Chem, Posco Future M, Huayou, Antam, and Indonesia Battery Corporation. Plans had outlined a complete value chain: from mining and smelting to precursor, cathode, and battery cell production.

Strategic Refocus on Core Ventures and Energy Storage

LGES exits Indonesia EV project while reaffirming its commitment to the HLI Green Power joint venture with Hyundai Motor. This Indonesian JV plant has a 10 GWh annual battery cell capacity and began mass production in April 2024.

Meanwhile, LGES continues to diversify beyond the EV battery sector. It has secured energy storage system (ESS) battery contracts with Delta Electronics in Taiwan and PGE in Poland.

Indonesia Presence Maintained Through LFP and JV Assets

Despite the LGES exit from the Indonesia EV project, the company retains stakes in key Indonesian operations. Earlier this year, LGES invested in a lithium iron phosphate (LFP) cathode plant with China’s Lopal Tech.

LGES emphasized its intent to continue collaboration with the Indonesian government, particularly via its joint venture HLI Green Power. This signals a strategic recalibration rather than a full-scale withdrawal from the Indonesian battery ecosystem.

The Metalnomist Commentary

LGES’s departure reflects a broader recalibration of battery majors toward diversified revenue streams and scalable ESS markets. The company’s sustained Indonesian footprint suggests long-term positioning, albeit through leaner, more focused partnerships.

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.

Honda Ontario EV Plan Suspended Amid Slower Market Growth Projections

Honda EV

Honda suspended its ambitious C$15 billion ($10.7 billion) Honda Ontario EV plan to build a comprehensive electric vehicle value chain in Canada. Chief Executive Toshihiro Mibe announced the two-year delay during the company's first-quarter earnings presentation, citing slower-than-expected EV market growth. The Honda Ontario EV plan postponement represents a significant setback for Canada's battery materials supply chain development and critical mineral processing ambitions.

Comprehensive Battery Supply Chain Project Faces Market Reality

The Honda Ontario EV plan encompassed a complete electric vehicle manufacturing ecosystem in Alliston, Ontario, including an EV assembly plant and standalone battery manufacturing facility. Honda partnered with Posco Future M to develop cathode and precursor materials facilities while collaborating with Asahi Kasei on separator plant construction. Meanwhile, this integrated approach aimed to reduce supply chain dependencies while supporting Honda's goal of 100% battery and fuel cell EV sales by 2040.

The comprehensive nature of the Honda Ontario EV plan positioned Canada as a strategic hub for North American electric vehicle production. Honda's investment would have created substantial demand for Canadian critical minerals, particularly lithium, nickel, and cobalt for battery cathode materials. However, slower market adoption rates have forced automakers to reassess their aggressive electrification timelines and associated capital investments.

Critical Mineral Processing Ambitions Face Automotive Headwinds

Canada's strategy to capture value from its abundant critical mineral resources through downstream processing suffers a major blow from the Honda Ontario EV plan suspension. The project represented a key opportunity to establish domestic battery materials manufacturing capabilities using Canadian lithium, nickel, and graphite resources. As a result, the delay undermines government efforts to build integrated critical mineral supply chains within North America.

Posco Future M's planned cathode and precursor facilities would have processed Canadian-sourced critical minerals into high-value battery materials for Honda's EV production. The partnership promised technology transfer and manufacturing expertise to establish Canada's position in global battery supply chains. Therefore, the Honda Ontario EV plan postponement reduces near-term demand prospects for Canadian critical mineral producers seeking domestic processing partnerships.

The two-year delay reflects broader challenges facing automaker electrification strategies as consumer adoption lags initial projections. Honda joins other manufacturers reassessing EV investment timelines amid market uncertainty and profitability concerns. Consequently, critical mineral demand growth may moderate as automakers adjust production capacity plans to match actual market conditions.

The Metalnomist Commentary

Honda's decision to pause its massive Ontario investment reflects the gap between aggressive EV transition rhetoric and market reality, highlighting risks for critical mineral producers banking on rapid battery demand growth. This setback underscores the importance of diversified demand strategies for Canadian critical mineral projects, as automotive electrification timelines prove more volatile than anticipated across the industry.

US Invests $635M to Boost EV Charging, Hydrogen Fueling

Federal Highway Administration (FHWA)

The US Department of Transportation's FHWA has allocated $635 million. This funding will expand electric vehicle (EV) charging and alternative fueling infrastructure. The Bipartisan Infrastructure Law provides the funding. Over 11,500 EV charging ports will be added. Hydrogen and natural gas fueling infrastructure will also expand.   

Funding Breakdown and Project Details

$368 million funds 42 community EV charging projects. $268 million supports seven fast-charging corridor projects. These projects are along Alternative Fuel Corridors. 46 projects focus on EV charging. One project builds a hydrogen station for heavy-duty trucks. Another combines EV charging and hydrogen. 

One project combines EV charging and natural gas. President Biden aims for 500,000 public EV chargers by 2030. Private sector investment supports this goal. Federal funding and tax incentives also aid the effort. State and local support are crucial. Over 206,000 public EV charging ports exist in 2024. 38,000 new chargers were added recently.   

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.

Toyota Secures $4.5 Million DOE Funding for EV Battery Recycling Technology

Argonne National Laboratory

Toyota, a global leader in automotive innovation, has received $4.5 million from the US Department of Energy (DOE) to advance cutting-edge electric vehicle (EV) battery recycling technology. This initiative aims to address critical bottlenecks in battery recycling, including automating pack disassembly, improving battery identification and sorting with data-driven methods, and mitigating challenges posed by cell degradation.

The Toyota Research Institute of North America will spearhead this project by developing autonomous robotic systems to disassemble EV batteries, an essential step toward enhancing sustainability and efficiency in the battery supply chain.

Efforts to Build a Sustainable Battery Ecosystem

As the demand for EVs grows, so does the volume of spent batteries and manufacturing scrap. Toyota’s initiative represents an effort to make the recycling process more sustainable, efficient, and scalable.

This latest project builds on Toyota’s growing portfolio of collaborations and research in battery recycling:

• April 2024: Partnered with Argonne National Laboratory to explore direct recycling processes for cathode chemistries containing critical minerals like nickel, manganese, and cobalt.

• Late 2023: Partnered with Cirba Solutions to enhance the collection, storage, testing, and recycling of spent batteries.

• 2022: Collaborated with Redwood Materials to focus on recycling hybrid EV batteries through improved collection and testing methods.

By working with leading recycling companies and research organizations, Toyota aims to ensure that its batteries are part of a closed-loop supply chain, reducing reliance on virgin materials and enhancing the sustainability of its EV production process.

The Path Ahead for EV Sustainability

This DOE-funded project underscores the increasing importance of a sustainable battery supply chain as EV adoption rises globally. By tackling technical challenges such as cell degradation and automation, Toyota is paving the way for scalable recycling solutions critical to the EV industry’s future.

Indonesia-China EV battery joint venture to start output by 2026

PT AnekaTambang

Indonesia-China EV battery joint venture is set to start operations in 2026, marking a milestone in Southeast Asia’s battery industry. PT Aneka Tambang (Antam) and CATL are leading the $5.9bn project, which will significantly expand Indonesia’s role in global EV supply chains. The Indonesia-China EV battery joint venture aims for 15GWh capacity by 2028, supporting up to 300,000 EVs annually.

A $5.9bn integrated ecosystem for battery materials

The joint venture begins with a 6.9GWh capacity, expanding to 15GWh by 2028. Additionally, officials highlighted potential integration with solar panel battery storage, raising capacity to 40GWh. Most of the investment—around $4.7bn—will fund nickel smelters, mining, and precursor plants in North Maluku. Meanwhile, the battery cell project in West Java accounts for $1.2bn of the total budget.

Indonesia’s mineral advantage meets China’s battery expertise

Indonesia holds abundant nickel, cobalt, and manganese, essential for EV batteries, but lacks lithium and advanced technology. Therefore, Antam partnered with CATL to secure the expertise and technology required. By 2026, smelting and hydrometallurgy plants, alongside a nickel-cobalt-manganese precursor facility, are expected to strengthen Indonesia’s midstream value chain. This partnership underscores a growing alignment between Indonesia’s resource base and China’s global battery leadership.

Energy independence and EV market expansion

The Indonesia-China EV battery joint venture could supply batteries for 300,000 EVs annually, potentially reducing fuel imports by 300,000 kilolitres per year. President Prabowo stated that Indonesia could reach full energy self-sufficiency within five to seven years, provided battery production grows to 100GWh annually. As a result, Indonesia is positioning itself not just as a raw material supplier but as an integrated EV hub.

The Metalnomist Commentary

Indonesia’s partnership with CATL cements its role in the global EV battery supply chain. However, success depends on infrastructure, environmental safeguards, and balancing resource nationalism with foreign investment. If executed effectively, Indonesia could become a strategic alternative to China-dominated supply routes.

Hanrui Indonesian Nickel Smelter Faces Delays but Signals Long-Term EV Ambitions

Indonesian Nickel Smelter

Chinese cobalt major Hanrui has delayed the launch of its Indonesian nickel smelter, citing permit extensions and geological challenges. The Hanrui Indonesian nickel smelter project, located in Central Sulawesi, will now commence production in March 2026, ten months later than planned.

Construction Shifts Toward Nickel Matte Output

Hanrui Nickel Indonesia, a subsidiary of Nanjing Hanrui, will operate the facility within Huabao Industrial Park. While the project originally targeted mixed hydroxide precipitate (MHP), the company has shifted focus to nickel matte production. The plant will produce 20,000 tonnes per year of nickel metal equivalent using oxygen-enriched continuous blowing technology. Construction is expected to take 15 months, though a detailed timeline is still pending.

This pivot reflects Hanrui’s strategic move to meet rising demand for nickel matte in the global electric vehicle (EV) battery market. Indonesia, with its abundant laterite resources, remains central to Chinese companies’ raw material supply strategies.

Fiscal Incentives and Long-Term Strategic Goals

The Indonesian government has granted Hanrui Nickel Indonesia a seven-year corporate income tax exemption. Following that, the project will receive a 50% income tax reduction for an additional two years. These tax incentives are part of Jakarta’s broader effort to localize value-added processing and attract foreign investment into its nickel sector.

Despite the delay, Hanrui views the Indonesian nickel smelter as a cornerstone in its ambition to deepen involvement in the EV battery supply chain. The project is expected to enhance China’s influence in critical battery materials and align with global trends in securing upstream supply.

The Metalnomist Commentary

Although delayed, the Hanrui Indonesian nickel smelter illustrates China’s enduring strategy to dominate EV raw materials. With tax breaks and technological shifts toward nickel matte, Hanrui is positioning itself for long-term relevance in the global battery ecosystem.

GEMC Eyes Stake in Alberta Lithium Project

Global Energy Metals Corporation

Global Energy Metals Moves to Acquire 19.9% Interest in Peace River Lithium Project

Global Energy Metals Corporation (GEMC), a Canadian critical mineral exploration and development company, has taken a significant step toward expanding its lithium portfolio. The company recently signed a non-binding letter of intent with NeoLithica to acquire a stake in the Peace River lithium project in Alberta, Canada.

Details of the Agreement and the Peace River Project

The agreement gives GEMC an 18-month option to purchase a 19.9% interest in the Peace River lithium project for C$1.5 million, a combination of cash and shares. This potential acquisition marks a significant move by GEMC as it seeks to secure a stake in one of Canada’s promising lithium projects.

Located approximately 500 km northwest of Edmonton, the Peace River lithium project is a lithium brine deposit. The project has an inferred resource estimate of 10 million metric tonnes (mt) of lithium carbonate equivalent. The deposit is seen as a significant resource in Canada’s growing lithium sector, essential for the production of battery-grade lithium compounds used in electric vehicle (EV) batteries.

Future Plans for the Peace River Lithium Project

NeoLithica, the project’s developer, is planning to commission a preliminary assessment following the completion of demonstration pilots in early 2025. The aim is to convert the extracted lithium concentrate into battery-grade lithium compounds, which is key to meeting the growing demand for lithium in the energy transition and EV industries.

With the global push for cleaner energy and the demand for EVs, lithium projects like the Peace River lithium deposit are increasingly seen as crucial to the future of energy storage and transportation. GEMC’s involvement in the project could strengthen its position in the critical minerals sector, particularly as lithium remains in high demand due to its role in battery technologies.

Triple Flag Acquires Royalty on Tres Quebradas (3Q) Lithium Brine Project

Triple Flag

Canadian royalty firm Triple Flag Precious Metals has secured a 0.5% revenue royalty on the Tres Quebradas (3Q) lithium project in Catamarca, Argentina, for $28 million. This acquisition highlights the growing importance of securing lithium resources, driven by the surge in global demand for battery-grade materials.

The royalty agreement grants Triple Flag a share of the total revenue generated from the sale of lithium salts produced at the 3Q site. The seller, Lithium Royalty Corp, retains a 0.9% royalty on the project, maintaining its stake in the promising venture.

3Q Lithium Project Overview

The 3Q lithium project is fully owned and operated by Zijin Mining, a major Chinese precious metals producer. Currently under construction, the project is expected to begin operations in the second half of 2025, with an initial production capacity of 20,000 metric tonnes (t) per year of battery-grade lithium carbonate.

Zijin Mining acquired the 3Q project from Neo Lithium in 2022 for $770 million and has since expressed plans to expand its capacity to between 40,000-60,000 t/yr to meet rising global demand. The 3Q project employs a conventional brine extraction process involving evaporation and precipitation, with its process plant located in Fiambalá, Argentina. The project is fully permitted, positioning it as a reliable source of high-purity lithium carbonate for the EV and renewable energy industries.

Strategic Significance

The acquisition by Triple Flag underscores the increasing focus on royalty investments in critical minerals such as lithium, which are essential for electric vehicle (EV) batteries and renewable energy storage. This deal also highlights Argentina's growing prominence as a key player in the global lithium supply chain, alongside other major lithium-producing nations.

Ford Revises EV Strategy: Cancels Electric SUV, Delays Next-Gen Truck

In a significant shake-up of its electric vehicle (EV) strategy, Ford Motor Company has announced the cancellation of its planned three-row electric SUV and the delay of its next-generation all-electric pickup truck until 2027. The three-row SUV, initially postponed to 2027, has now been scrapped entirely, with Ford opting to shift focus toward new gas and hybrid-powered SUVs instead.

This strategic pivot is expected to cost the company approximately $1.5 billion, including a special non-cash charge of $400 million. As part of the restructuring, Ford will reduce its EV investment from 40% to 30% of its annual capital expenditures.

The much-anticipated electric truck, dubbed Project T3, will now see its production pushed back by 18 months, with assembly at Ford's Tennessee EV facility slated for the latter half of 2027 rather than the originally planned 2025.

In addition to these changes, Ford will fast-track the production of a new commercial EV van, set to roll off the line at its Ohio plant in 2026. The automaker is also developing a more affordable EV—a medium-sized pickup truck—at its Irvine, California skunkworks lab.

These strategic adjustments come in response to slower-than-expected EV adoption and challenges in achieving profitability within the segment. Ford has reported substantial costs associated with ramping up EV production amid a deceleration in industry-wide sales growth, projecting a loss of $5 to $5.5 billion in its EV division for the year.

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.

China’s C&D Begins Construction of Major Lithium Carbonate Plant in Sichuan

Xiamen C&D

$144 Million Investment to Boost Battery-Grade Lithium Supply for EV Industry by 2027

Xiamen C&D, a Chinese state-owned conglomerate, has launched construction of a large lithium carbonate production facility in Dazhou, Sichuan province, in partnership with Jiangxi Kexiang Enterprise Management. The new project targets China's fast-growing electric vehicle (EV) supply chain, with a projected total capacity of 140,000 tons per year of battery-grade lithium carbonate.

The project, valued at 1.05 billion yuan ($144 million), will be developed in three phases. The first phase, expected to produce 40,000 tons per year, is scheduled to begin operations by the end of 2025. Full-scale production is planned for completion by 2027, reflecting China's continued investment in core battery materials infrastructure.

Lithium Carbonate Capacity Expands Amid EV Boom

Lithium carbonate remains a critical raw material for lithium-ion batteries, which power the majority of electric vehicles globally. China, as the world’s largest EV market, continues to increase domestic production to reduce reliance on imports and stabilize raw material prices.

Alongside this project, other major players like Zhejiang Zhongneng have also ramped up output. On February 17, the company launched its new facility in Shaoxing, Zhejiang province, with an initial capacity of 10,000 tons per year.

However, experts warn that rapid capacity expansion across China may be outpacing demand. Oversupply could continue to weigh on lithium carbonate prices, which have already declined from their 2022 highs. Despite this, long-term fundamentals remain strong as EV adoption continues worldwide.

Lithium Energy Secures Approval for Solaroz Lithium Brine Project

Solaroz

Green Light for Development of Argentina’s Solaroz Lithium Concessions with CNGR's Partnership

Lithium Energy, an Australian battery minerals company, has successfully secured regulatory approval for its Solaroz lithium brine project in Argentina. This marks a crucial step forward in the company’s strategic plans, including advancing its sales agreement with China's leading battery materials producer, CNGR.

A Major Milestone for the Solaroz Project

The approval, granted through the Environmental Impact Assessment (EIA), allows Lithium Energy and CNGR to jointly explore and develop all of the Solaroz lithium brine concessions. CNGR will be responsible for funding local operations as well as future development phases. This collaboration sets the stage for the project’s growth, as it moves closer to fulfilling its potential to supply lithium for the growing electric vehicle (EV) and battery industries.

In April 2024, CNGR agreed to purchase 90% of the Solaroz project for $63 million, highlighting the importance of the deal for both parties. Lithium Energy shares the lithium rights in the Olaroz Salar basin with Arcadium Lithium, with the project subject to an acquisition by Rio Tinto and Lithium Argentina.

Advancing Lithium Production with Direct Lithium Extraction Technology

To maximize the value of the Solaroz project, Lithium Energy is also exploring innovative Direct Lithium Extraction (DLE) technology. The company has partnered with China’s Xi’an Lanshen, a specialty resin producer, to develop this technology. Lanshen will also build a battery-grade lithium plant onsite with a capacity of 3,000 metric tonnes per year of lithium carbonate. This move aligns with global trends to streamline lithium production and ensure the sustainability of the critical material needed for the EV sector.

With the approval in place and a solid partnership with CNGR, Lithium Energy is poised to contribute to the global lithium supply chain and meet the rising demand for battery materials.

US Treasury Proposes Expanded EV Charging Tax Credit

US EV

The US Department of the Treasury has proposed a new rule to clarify and expand the eligibility of electric vehicle (EV) charging infrastructure for a key tax credit under the Inflation Reduction Act (IRA). The rule, if enacted, could provide a significant boost to the nation’s EV charging network by incentivizing investment in charging ports.

Under the proposed changes, businesses would be able to claim the "30C" tax credit, which covers up to 30% of the installation costs — or up to $100,000 — for each individual charging port. This proposal marks a shift in the definition of “a single item of property,” offering greater clarity for project developers.

Impact on National EV Charging Goals

The Biden administration has set an ambitious goal to deploy at least 500,000 public EV charging ports by 2030, in line with its broader efforts to reduce US carbon emissions. Currently, there are 192,000 charging ports in operation across the country, with around 1,000 new ports being added each week. At this pace, the US is projected to meet its target by mid-2030. The proposed tax credit expansion could further accelerate this progress by making it more financially viable for businesses to invest in EV infrastructure, particularly in low-income and rural areas that are eligible for the credit.

The Treasury Department will accept public comments on the proposed rule for 60 days, and a public hearing may be scheduled if requested.

Surge Battery Metals Targets 86,000 t/yr LCE from Nevada Lithium Project

Surge Battery Metals

Nevada North Lithium Project’s Scale and Cost Outlook

Surge Battery Metals announced that its planned Nevada North Lithium Project (NNLP) could produce 86,000 tonnes per year of lithium carbonate equivalent (LCE). The integrated operation will combine mining and processing at a site northeast of Wells, Nevada. The study, released on 9 June, projects a 42-year mine life and an operating cost of $5,097 per tonne, placing it among the relatively low-cost lithium projects.

The company intends to establish an on-site processing facility that will use sulfuric acid leaching to produce high-purity lithium carbonate. This output will be further refined into battery-grade LCE, enhancing its appeal for electric vehicle and energy storage applications.

Market Assumptions and Development Timeline

Surge’s project economics are based on an assumed LCE selling price of $24,000 per tonne. The study outlines a 6.5-year development period from early works to full commissioning, structured into two phases. While the company has not disclosed a firm start date for operations, the long mine life and integrated design highlight its potential role in the U.S. lithium supply chain.

The Nevada project comes at a time when North America is prioritizing domestic lithium production to reduce reliance on imports and support clean energy policies. With its projected scale, NNLP could contribute significantly to meeting future EV battery demand.

The Metalnomist Commentary

Surge Battery Metals’ Nevada project underscores the growing race to secure low-cost lithium production in North America. While timelines remain uncertain, the projected scale and economics suggest strong potential. Success will depend on financing, permitting, and the stability of long-term lithium pricing.

Patriot Expands Quebec Lithium Resource, Cementing Largest Pegmatite Deposit in the Americas

Patriot Battery Metals

Patriot's Shaakichiuwaanaan Project Emerges as a Strategic Lithium Asset

Patriot Battery Metals has increased indicated resources by 30% at its Quebec-based Shaakichiuwaanaan Lithium Project, reinforcing its position as the largest lithium pegmatite resource in the Americas. This development positions Canada as a growing heavyweight in the global battery metals supply chain.

The updated resource now totals 108 million metric tonnes, grading 1.4% lithium oxide. This equates to 3.75 million tonnes of lithium carbonate equivalent (LCE) — a critical input for electric vehicle (EV) batteries and energy storage systems. Located in the mineral-rich Eeyou Istchee James Bay region, the deposit is also the eighth largest lithium pegmatite resource globally, according to Patriot.

Strategic Metals Strengthen Project Value Beyond Lithium

In addition to lithium, the study revealed significant concentrations of tantalum, cesium, and gallium. These strategic metals play essential roles in electronics, semiconductors, and aerospace alloys. Their presence enhances the project’s economic potential and aligns with North America’s broader push for critical mineral independence.

Patriot’s advancement comes at a time when global supply chains are recalibrating around domestic resources. With China and other suppliers tightening controls on strategic materials, Western governments and manufacturers are increasingly turning to Canadian and U.S. projects for secure sourcing.

Feasibility Study Targeted for 2025

Patriot Battery Metals plans to release a maiden ore reserve and feasibility study by Q3 2025, based on the latest resource estimates. This timeline reflects growing investor interest in North American lithium development amid surging demand from the EV and energy sectors.

Meanwhile, the project's location in Quebec offers distinct advantages, including renewable hydroelectric power, government support, and proximity to U.S. manufacturing hubs.

The Metalnomist Commentary

Patriot’s 30% increase in lithium resources signals a strong step forward in North America’s bid for battery metal self-reliance. With a diversified mix of strategic metals and a globally ranked resource base, the Shaakichiuwaanaan Project stands poised to become a cornerstone in the Western critical minerals ecosystem.

GM Invests $625 Million in US Thacker Pass Lithium Mine to Secure EV Supply Chain

Lithium Americas (LAC)

General Motors (GM) has made a significant investment in the Thacker Pass lithium mine, located in Nevada and owned by Lithium Americas (LAC). The automaker will inject $625 million into the project, acquiring a 38% stake, marking the largest investment in a lithium mining project by a US carmaker to date. This deal comes as part of a broader effort to strengthen the supply chain for electric vehicle (EV) materials, following a $2.3 billion loan commitment from the US Department of Energy to support Thacker Pass earlier this year.

Jeff Morrison, GM's senior vice-president of global purchasing and supply chain, emphasized the importance of this partnership: "We're pleased with the significant progress Lithium Americas is making to help GM achieve our goal to develop a resilient EV material supply chain. Sourcing critical EV raw materials, like lithium, from suppliers in the US is expected to help us manage battery cell costs, deliver value to our customers and investors, and create jobs."

The first phase of development at Thacker Pass will be backed by an initial cash infusion of $330 million from GM. This phase aims to produce 40,000 tonnes of lithium carbonate annually, all of which GM will secure through an offtake agreement. This supply is projected to be sufficient for approximately 800,000 electric vehicles, highlighting the scale and significance of this partnership in meeting future EV demand.

Recent lithium carbonate prices have shown some volatility, with rates declining to $9.30-9.60/kg CIF China from $9.50-9.80/kg as recorded on October 8.

The collaboration between GM and LAC underscores the growing importance of domestic lithium production for the US EV industry and the need for a stable supply chain for critical raw materials. As electric vehicles gain popularity, such strategic partnerships are crucial in ensuring sustainable growth and meeting market demand.

BYD Brazil Plant Delayed to 2026 Amid Labor Abuse Investigations

BYD Brazil Plant

Labor Issues Postpone BYD’s Brazil EV Expansion

BYD’s Brazil plant opening has been delayed to December 2026 due to labor abuse investigations involving Chinese workers. This delay pushes the timeline back by over a year and raises concerns about transparency and labor practices in international EV manufacturing ventures.

The plant, located in Camacari, Bahia, is a converted Ford facility originally slated to begin operations in March 2025. However, in December 2023, Brazilian authorities discovered 163 Chinese workers living in "slave-like" conditions, prompting an immediate halt to construction. According to Bahia’s labor secretary Augusto Vasconcelos, the factory will now be fully operational by late 2026, although partial assembly operations may begin sooner.

Concerns Mount Over BYD’s Long-Term Commitments in Brazil

While the site is still expected to begin assembling imported, pre-assembled vehicles this year, local labor unions fear a shift toward a mere distribution hub. Julio Bonfim, head of the Camacari metalworkers union, emphasized that the factory must “make vehicles, not just assemble and distribute them.”

These concerns are rooted in BYD's growing import strategy, which could undermine domestic manufacturing and job creation promises. Although BYD has pledged to create 10,000 direct jobs when at full capacity, delays and partial assembly plans have cast doubt on the project’s original intent.

Brazil Remains a Key Market for BYD Despite Setbacks

Despite the controversy, Brazil continues to be BYD’s largest overseas market. The company sold over 76,000 EV units in Brazil in 2024, with 8,344 sold in April alone, making it the country’s seventh-largest automaker by volume.

The new plant aims to produce 150,000 electric vehicles annually, including both battery electric vehicles (BEVs) and plug-in hybrids (PHEVs). The project remains strategically important for BYD as it expands beyond China and seeks dominance in Latin America's fast-growing EV sector.

The Metalnomist Commentary

The delay of BYD’s Brazil plant exposes the risks of rapid international expansion without strong labor oversight. As EV makers globalize their supply chains, ethical manufacturing practices and community trust will become as critical as production volume. For Brazil, this case serves as a pivotal moment to assert stronger domestic industrial policy in the EV era.

Umicore Cuts €800mn in Capex for Battery Materials Amid EV Slowdown

Umicore

Belgian firm halves investment in pCAM and CAM to adjust to changing battery market dynamics

Umicore Reduces Battery Segment Capex to €800mn Through 2028

Umicore will cut its capital expenditure for battery materials solutions to €800mn between 2025 and 2028. The company previously committed €1.6bn but paused expansion plans in Canada for pCAM and CAM projects. This decision reflects slower electric vehicle (EV) growth and falling segment revenues.

At its Capital Markets Day 2025, Umicore confirmed its focus on more selective investments. Around €500mn of the revised capex will be directed to facilities in Europe and South Korea. The company still targets increasing CAM capacity to 45 GWh/year by 2028, up from 30 GWh/year today.

Canadian Battery Project on Hold as Market Cools

In 2023, Umicore announced a $2.1bn investment in Canada, including $1.8bn in capex for a battery materials site. However, weaker EV sales have prompted a strategic reassessment of capital deployment. The current pCAM production capacity remains at 80,000 metric tonnes annually.

Revenue from the battery segment dropped 30% to €386mn in the latest report. Slowing demand in Europe, coupled with a broader global deceleration in EV sales, drove this decline. Meanwhile, Umicore continues to explore cost-efficient growth in regions with stable market demand.

Shifting Priorities and Regional Focus

The company will prioritize mature markets like Europe and South Korea for near-term battery material investments. While Canadian plans are deferred, Umicore aims to sustain technological leadership through optimization and targeted expansion. This strategic pivot reflects broader trends as battery producers recalibrate amid uncertain demand.

The Metalnomist Commentary

Umicore’s capex cut signals caution across the battery supply chain as EV hype meets market reality. Prioritizing selective regional growth may offer stability while global demand resets post-2024 surge expectations.