Stellantis Net Loss Shows Cost of Resetting EV Strategy

Stellantis EV

Stellantis net loss reached €22.3bn in 2025 as the global automaker absorbed major charges linked to a strategic reset in electric vehicles. The result highlights how quickly automakers are reassessing electrification plans as customer demand, regulation, pricing, and capital discipline change across the global auto market.

Most of the Stellantis net loss came in the second half of the year, when the company reported a €20.1bn loss. Full-year charges reached €25.4bn, largely tied to what Stellantis described as a profound strategic shift to better match customer demand and regulatory realities.

The company’s brands include Jeep, Peugeot, and Vauxhall. Net revenues fell by 2pc from 2024 to €153.5bn, as foreign exchange pressure and first-half pricing declines outweighed gains from volume and product mix.

EV Supply Chain Resizing Drives Heavy Charges

Stellantis net loss reflects the financial cost of scaling back EV ambitions after earlier expectations proved too aggressive. The company said the charges include product plan changes, EV supply chain resizing, warranty provision adjustments, and previously announced workforce reductions.

The reset shows that automakers are moving from rapid EV expansion toward more flexible technology portfolios. Stellantis now wants to focus on customers’ freedom to choose from a full range of vehicle technologies, rather than relying on a faster linear shift toward battery electric vehicles.

This shift carries major implications for battery materials, power electronics, component suppliers, and EV manufacturing investments. If automakers slow or rebalance EV programs, suppliers exposed to batteries, motors, lightweight materials, and dedicated EV platforms may face weaker demand visibility.

Automakers Rebalance Electrification and Balance Sheet Risk

Stellantis plans to return to profitable growth in 2026 after absorbing the cost of what management called over-estimating the pace of the energy transition. The company will not pay an annual dividend in 2026 and has approved up to €5bn in hybrid bond issuance to protect its balance sheet.

This balance sheet response matters because automakers need capital for multiple technologies at once. Battery EVs, hybrids, combustion platforms, software, emissions compliance, and regional manufacturing all compete for investment. The challenge is no longer simply building EV capacity; it is allocating capital across uncertain demand pathways.

For the wider automotive supply chain, Stellantis’ reset is a warning signal. Electrification remains a long-term direction, but the transition is becoming less uniform, more regional, and more financially disciplined. Suppliers must prepare for a market where hybrid, EV, and combustion demand coexist longer than earlier forecasts suggested.

The Metalnomist Commentary

Stellantis’ 2025 loss shows that the energy transition is entering a harder capital cycle. The winners will not be the companies with the boldest EV targets, but those that manage technology flexibility, supply chain exposure, and balance sheet risk with discipline.

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.

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.

Suzuki e-Vitara Electric SUV Launch Signals a Bigger EV Push in India

Suzuki eVX

Suzuki e-Vitara electric SUV marks the company’s formal shift into full battery electric vehicles. Suzuki began sales of the e-Vitara in India, making it the firm’s first BEV model. This launch matters because Suzuki has long relied more heavily on hybrids. As a result, Suzuki e-Vitara electric SUV becomes a strategic test of how seriously the company will pursue the EV market.

The launch also puts India at the center of Suzuki’s electric transition. The model is built at Maruti Suzuki’s Hansalpur plant in Gujarat. That site already sits inside a broader expansion plan targeting 1mn EVs per year. Therefore, Suzuki e-Vitara electric SUV is not just a product launch. It is part of a much larger manufacturing ambition.

India EV Supply Chain Still Looks Tight

India EV supply chain remains the biggest constraint behind Suzuki’s electric growth path. The company did not disclose battery chemistry or sourcing details for the e-Vitara. That leaves open a critical question about how Suzuki will secure enough cells as production rises. Consequently, the commercial success of the Suzuki e-Vitara electric SUV will depend on more than vehicle demand alone.

The wider Indian market is still dealing with upstream bottlenecks. Carmakers warned last year that China’s rare earth export controls could slow motor production because of magnet shortages. Domestic projects in lithium, nickel, cobalt, and rare earths have also moved slowly. Therefore, India EV supply chain development still lags the scale of EV ambition.

Maruti Suzuki EV Strategy Extends Beyond the Vehicle Itself

Maruti Suzuki EV strategy is not limited to selling one electric SUV. The company also announced a goal of 100,000 branded charging points by 2030. It has already installed 2,000 of them. That means Suzuki is trying to shape the charging ecosystem alongside vehicle rollout. As a result, the Suzuki e-Vitara electric SUV launch is tied to infrastructure as well as manufacturing.

This wider strategy makes sense in a market where ecosystem gaps still matter. Other Indian EV and battery plans have already been scaled back or delayed. That creates space for more disciplined players to build practical scale over time. Meanwhile, Maruti Suzuki EV strategy may benefit from moving more steadily than some earlier industry promises.

The Metalnomist Commentary

Suzuki’s first electric SUV matters because it shows India’s EV shift is moving from announcements to actual product launches. The bigger challenge now is not whether Suzuki can build an electric model. It is whether India can build the battery materials, cells, magnets, and charging network needed to support that growth at scale.

Cornex-Shanshan Battery Anode Deal Signals Aggressive EV Supply Chain Securing

Cornex

The Cornex-Shanshan battery anode deal locks in critical anode supply for fast growth. The agreement is worth over 10bn yuan ($1.39bn). The firms did not disclose volumes or tenor. The Cornex-Shanshan battery anode deal follows Cornex’s rapid feedstock contracting. Therefore, it strengthens cell output visibility in a volatile market. The Cornex-Shanshan battery anode deal also consolidates Yunnan-to-coastal anode logistics advantages.

Strategic supply and capacity signals

Shanshan increased anode output to 354,605t in 2024, up 27% year over year. Sales reached 339,536t, up 28% from 2023. Therefore, Shanshan can support large, multi-year awards. Cornex also secured cathode and foil inputs this year. It booked 150,000t LFP from Jiangsu Lopal in May. It added 152,000t LFP from Eve Energy in June. In July, it locked 160,000t copper foil from Nuode over five years. Consequently, Cornex de-risks key battery bill-of-materials.

Implications for feedstock, pricing, and EV supply chains

This contract tightens premium graphite and silicon-blend availability. However, scale should improve Cornex’s unit costs and yields. Downstream EV and storage demand continues to expand. Metalnomist sees EV sales reaching 60mn by 2035. The CAGR from 2025 is 12%, supporting anode expansion. Therefore, stable offtakes will matter for financing and capacity ramps. Banks and OEMs will seek transparency on pricing formulas.

The Metalnomist Commentary

This tie-up prioritizes supply certainty over perfect price timing. Expect further vertical coordination across cathode, anode, and foil. Watch qualification timelines and cost pass-through mechanisms into 2026 contracts.

Volkswagen ID.4 Production Halt Shows US EV Demand Pressure

Volkswagen EV

Volkswagen ID.4 production in the US will end as the German automaker shifts its Chattanooga, Tennessee, plant toward higher-volume internal combustion vehicle output. The decision reflects weaker electric vehicle demand in the US and the need to protect North American manufacturing utilisation.

Volkswagen said the EV market continues to challenge the industry and requires measured decisions. The company will stop producing the ID.4 at Chattanooga and begin assembling the all-new second-generation Atlas from mid-April 2026.

Volkswagen ID.4 production has been strategically important because the model is the company’s top-selling EV in the US. However, the ID.4 sold 22,373 units in 2025, far below the Atlas, which sold 71,044 units and remained Volkswagen’s second-best-selling model for the past three years.

The decision shows how automakers are adjusting production footprints as EV adoption slows. US EV sales fell by 27% year on year to 216,300 units in the first quarter, creating pressure on manufacturers to rebalance plant capacity, dealer inventory and product planning.

Chattanooga Shift Prioritises Higher-Volume SUV Demand

The Chattanooga plant will now focus on the second-generation Atlas, a three-row sport utility vehicle with much stronger US sales momentum. This gives Volkswagen a clearer volume base in a market where larger SUVs remain commercially attractive.

The move is not a full retreat from the ID.4. Volkswagen said model-year 2026 ID.4 vehicles will remain available through current inventory, supporting US demand into 2027. The company also plans a future version of the ID.4 for North America, although details have not yet been disclosed.

Still, the production shift is significant. Automakers rarely remove capacity from a model unless demand, margin or manufacturing strategy has changed. In this case, Volkswagen appears to be choosing a higher-volume SUV platform over a slower-moving EV in the near term.

This reflects a wider industry trend. EV demand has become more uneven as consumers respond to vehicle prices, charging access, policy uncertainty and changing incentive structures. Automakers now need more flexible production strategies rather than relying on straight-line EV growth forecasts.

EV Slowdown Could Weigh on Battery Materials Demand

Volkswagen ID.4 production changes also matter for the battery materials supply chain. Lower EV output can reduce near-term demand for lithium, nickel, graphite, manganese, copper, aluminium and rare earth magnet materials linked to electric drivetrains and battery systems.

The effect will not come from Volkswagen alone. The bigger issue is that several automakers are reassessing EV production rates in response to slower consumer adoption. If this pattern continues, battery material demand growth may become more volatile than earlier industry forecasts suggested.

For suppliers, the shift creates a timing problem. Many battery, cathode, anode and recycling investments were planned around rapid EV market expansion. Slower model-level output can leave material producers exposed to weaker offtake, lower utilisation and price pressure.

At the same time, Volkswagen’s decision does not eliminate long-term EV demand. It shows that the transition may move in phases, with automakers balancing EVs, hybrids and combustion vehicles depending on regional demand. North America may therefore remain a more mixed powertrain market than China or parts of Europe.

The Metalnomist Commentary

Volkswagen’s ID.4 decision shows that EV strategy is now being tested by real factory economics. The energy transition is still moving forward, but automakers will increasingly prioritise models that protect utilisation, margins and supply-chain stability.

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.

Comexport to assemble GM Chinese EVs in Brazil

Comexport

Comexport to assemble GM Chinese EVs marks a major shift in Brazil’s role within global EV supply chains. The Brazilian foreign trade firm will assemble GM’s new Spark EUV, a Chinese electric vehicle sold under the Chevrolet brand, at the former Ford-owned PACE industrial hub. As a result, the Comexport to assemble GM Chinese EVs deal turns a decommissioned plant into a regional platform for imported Chinese SKD units.

The project uses a flexible contract-assembly model rather than an equity partnership or joint venture. Comexport will import semi-knocked-down Spark units from China, already welded, painted and partially manufactured, and then complete final assembly at PACE. Meanwhile, GM will supervise production quality and pay Comexport per unit, ensuring OEM control over standards while limiting capital exposure. Therefore, the Comexport to assemble GM Chinese EVs contract gives GM fast market access with lower fixed costs.

PACE becomes Brazil’s first multi-brand EV assembly hub

PACE will emerge as Brazil’s first and only multi-brand vehicle assembly line once all client negotiations close. The plant, acquired by Comexport in 2024 from the state of Ceara, will serve at least three carmakers, with GM confirmed as the first anchor client. Initially, the facility will operate below its 80,000 vehicle per year capacity and gradually ramp up as the local supply chain matures.

GM plans for all Spark units sold in Brazil to be assembled as SKD imports over time. However, the company will first bring in fully built consumer-ready vehicles while Comexport stabilises processes and tooling. As the supply chain “nationalises”, more Brazilian auto-parts suppliers will enter the platform, supporting localisation targets and potentially unlocking tax and industrial policy incentives. This phased approach reduces ramp-up risk while anchoring long term EV manufacturing in northeastern Brazil.

Chinese EV platforms deepen their footprint in Latin America

The project highlights how Chinese EV platforms penetrate Latin America via global OEM brands and contract assemblers. The Spark is a Chinese-developed model from the joint venture between GM, SAIC and Wuling, sold domestically as the Baojun Yep Plus. Therefore, Brazilian consumers will buy a Chevrolet-badged vehicle that originates from a Chinese EV architecture. PACE will exclusively assemble hybrids and EVs, increasing the likelihood that future clients will also be Chinese or China-linked automakers.

For GM, this structure supports a broader strategy of leveraging Chinese small-EV know-how while maintaining brand control in key emerging markets. For Brazil, the Comexport to assemble GM Chinese EVs model could accelerate EV adoption, technology transfer and supplier upgrading, especially in battery, electronics and lightweight components. However, policymakers and local OEMs will also scrutinise the impact on domestic manufacturers and industrial competitiveness as Chinese-origin platforms gain share.

The Metalnomist Commentary

This deal illustrates how decommissioned legacy plants can be repurposed into EV assembly hubs bound into China-centric technology networks. By combining SKD imports, contract assembly and gradual localisation, Comexport and GM create a flexible template that other brands may copy across Latin America. Market participants should watch how quickly local suppliers move into higher value EV components and how Brazil balances openness to Chinese platforms with support for domestic champions.

Aludyne Linamar auto parts deal reshapes North American chassis supply

Aludyne

The Aludyne Linamar auto parts deal marks a significant reshaping of North America’s chassis and structures supply chain. Aludyne will sell most of its North American precision casting, machining and manufacturing plants to Linamar for $300mn, with closing expected within 30 days. The transaction transfers a broad footprint of Tier 1 assets at a time when the regional automotive sector faces EV uncertainty and capacity rebalancing. As a result, the Aludyne Linamar auto parts deal strengthens Linamar’s position with OEMs while allowing Aludyne to exit capital-intensive operations.

Linamar deepens chassis portfolio with Aludyne plants

The Aludyne Linamar auto parts deal will fold Aludyne’s US and Mexican plants into Linamar’s structures and chassis division. Linamar gains established North American production of knuckles, subframes, control arms and axle housings, all core safety-critical components. This expansion enhances Linamar’s ability to offer integrated chassis solutions, which helps automakers rationalise suppliers and reduce logistics complexity.

Meanwhile, the Aludyne assets complement Linamar’s recent move into Europe through the purchase of George Fischer’s iron foundry in Leipzig. Together, these acquisitions expand Linamar’s geographic and product reach across cast and machined suspension and structural parts. Therefore, the company positions itself as a global Tier 1 partner able to support multi-platform programmes across internal combustion, hybrid and battery electric vehicles.

EV headwinds force rethink of giga-casting strategy

At the same time, Linamar is trying to divest its aluminium die giga-casting plant in Welland, Ontario, completed in 2024. That facility was originally designed to make large structural castings for EV platforms, targeting long-term supply to major OEMs. However, the end of US EV tax credits under President Donald Trump has weakened demand visibility for high-volume EV structures. This shift explains why the Aludyne Linamar auto parts deal now looks more attractive than betting solely on giga-casting growth.

As a result, Linamar appears to be pivoting back toward a diversified mix of cast and machined chassis parts, with less exposure to a single EV-heavy technology bet. The acquisition balances risk by anchoring the group in essential underbody and suspension components that remain necessary across all powertrains. For automakers, a stronger Linamar could offer greater resilience in North American sourcing, even as EV policy volatility complicates long-term platform planning.

The Metalnomist Commentary

The Aludyne Linamar auto parts deal underlines how policy-driven EV headwinds are reshaping capital allocation in the auto supply chain. Tier 1 suppliers are moving away from single-technology bets toward diversified portfolios of foundational components and regional footprints. For metals suppliers and casting houses, the key will be aligning product mix with flexible, multi-powertrain platforms rather than relying on overly optimistic EV adoption curves.

US EV tax credit expiration reshapes electric vehicle market

US EV

US EV tax credit expiration after 15 years is reshaping vehicle affordability and demand across the US auto market. The US EV tax credit supported sales of models like the Tesla Model Y and Chevrolet Equinox EV. Now the US EV tax credit has ended, leaving buyers with higher upfront costs and manufacturers with greater policy uncertainty.

US EV tax credit expiration driven by politics and fiscal push

The US EV tax credit began in 2008 as a bipartisan tool to jump-start early EV adoption. It later expanded under the Inflation Reduction Act, which tied eligibility to US-made vehicles and domestic supply chains. However, Republican lawmakers and oil interests increasingly opposed the subsidy, arguing it distorted markets and threatened future gasoline demand.

As a result, the latest tax and energy law under president Donald Trump removed the incentive from 30 September. Lawmakers framed the US EV tax credit expiration as a way to save more than $190bn over ten years. The move reflects a broader rollback of climate-linked support measures, including plans to repeal greenhouse gas limits on cars and trucks. This policy reversal now clashes with long-term investment cycles for automakers and battery producers.

EV affordability and US supply chains face fresh headwinds

The end of the US EV tax credit comes while EVs still cost more than conventional cars. Recent data show US EVs carry an average price premium of around $8,000 over combustion models. Without the $7,500 federal incentive, many mass-market buyers lose a key financial lever that helped close the price gap. This will likely slow new orders, particularly in middle-income segments and fleet purchases.

Meanwhile, manufacturers warn that the loss of the credit weakens the business case for US-based EV and battery plants. The revised credit had pushed automakers to localise assembly and critical mineral sourcing inside the US or allied countries. Its removal undercuts one of the strongest pull factors for building gigafactories, cathode plants and related supply chain assets on US soil. Industry groups argue this shift could hand competitive advantage back to regions with more stable policy support.

State-level climate policy will now carry more weight in the US EV landscape. California and other Democratic-led states plan to maintain strict tailpipe standards and invest heavily in charging infrastructure. However, even ambitious state measures cannot fully compensate for the vanished federal incentive. Automakers must therefore navigate a patchwork of regional rules while recalibrating sales forecasts and capital plans in a post-credit market.

The Metalnomist Commentary

The US EV tax credit expiration exposes the tension between long-term industrial strategy and short-term political swings. For metals and battery supply chains, the key risk is stop-start demand that complicates investment in lithium, nickel and cathode capacity. Unless policy clarity returns, the US could cede ground to regions where EV incentives and climate regulations move in a steadier direction.

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.

Latam EV Market Set for Massive 2025 Expansion Driven by Chinese Automakers

Latam EV Market

The Latam EV market will experience unprecedented growth in 2025 as electric vehicle sales in Latin America and emerging markets double to 1 million units. According to the International Energy Agency (IEA), Chinese automakers drive this expansion by offering significantly cheaper models than traditional Western brands. The Latam EV market surge represents a critical shift in global automotive demand that will substantially increase battery materials consumption across the region.

Chinese Battery Technology Advantages Fuel Market Penetration

Chinese automakers captured 75% of all EV sales in emerging economies by leveraging superior cost advantages in battery pack manufacturing. China produces cheaper battery packs due to intense competition, enhanced manufacturing efficiency, supply chain integration, and access to skilled workforces. Meanwhile, Chinese battery pack prices fell 30% compared to only 10-15% decreases in Europe and the United States.

BYD and GWM electric vehicles now compete directly with conventional petrol cars in key Latam EV market segments. In Brazil, BYD's largest market outside China, the price gap between battery electric cars and conventional vehicles narrowed to just 25%. Therefore, Chinese manufacturers achieve price parity with internal combustion engines in Thailand and approach competitive pricing across Latin America.

Regional Manufacturing Expansion Promises Further Cost Reductions

Local production capacity remains minimal, with only 5% of EVs sold in emerging markets produced regionally currently. GWM and BYD plan to establish factories in Latin America by late 2026, potentially driving down costs further. As a result, these manufacturing facilities will bypass import tariffs while reducing transportation costs for the expanding Latam EV market.

Regional battery material demand will surge as local EV production scales rapidly across Latin America. Lithium, cobalt, nickel, and other critical minerals consumption will increase substantially to support growing battery manufacturing requirements. However, Latin America possesses significant lithium reserves, particularly in Argentina, Bolivia, and Chile, creating opportunities for vertical supply chain integration.

Global EV sales exceeded 17 million units in 2024, capturing 20% market share worldwide. The IEA projects 2025 sales will surpass 20 million units, representing over 25% of global automotive sales. Consequently, the Latam EV market expansion contributes meaningfully to this accelerating global electrification trend.

The Metalnomist Commentary

The Latam EV market boom signals a fundamental shift in global battery materials demand geography, with Chinese manufacturers leveraging cost advantages to penetrate price-sensitive emerging markets. This expansion will create substantial new demand for lithium, cobalt, and nickel while potentially enabling Latin America to capture more value from its abundant critical mineral resources through local processing and battery manufacturing integration.

Cornex–Dongfeng power battery deal signals deeper EV supply-chain ties

Cornex

Cornex–Dongfeng power battery deal anchors five-year growth for both firms. The Cornex–Dongfeng power battery deal covers over 30GWh of supply. Therefore, the Cornex–Dongfeng power battery deal strengthens downstream EV launches and commercial fleets.

China’s battery demand keeps accelerating on EV and storage growth. Cornex will also expand R&D cooperation with Dongfeng Liuzhou. As a result, the partners can tailor pack designs and logistics. They did not disclose prices or delivery cadence.

Upstream security: LFP cathode and copper foil locked in

Cornex moved early to secure key feedstocks this year. It signed 150,000t of LFP cathode with Jiangsu Lopal in May. It added 152,000t of LFP from EVE Energy in June. It also secured 160,000t of copper foil from Nuode over five years. Consequently, the cell maker reduces cost volatility and quality risk across its lines.

Meanwhile, China’s battery ecosystem continues to scale. Power battery output reached 831.1GWh in January–July. Installed volumes hit 355.4GWh over the same period. Year-on-year growth was 58% and 45%, respectively. Those tailwinds support OEM ramp schedules and fleet electrification.

Market position: modest share, rising trajectory

Cornex installed 2.42GWh of LFP packs in January–July. That equals 0.7% of China’s installed base. However, it remains a top-15 domestic LFP installer. Therefore, the Dongfeng anchor order could accelerate share gains. R&D collaboration should compress qualification timelines and improve pack energy density.

Dongfeng plans passenger and commercial EV expansion. Cornex’s secured materials and new contracts improve delivery certainty. As a result, both sides can plan platform roadmaps with clearer cost curves.

The Metalnomist Commentary

Anchor agreements matter most when paired with upstream hedges. Cornex’s cathode and copper-foil locks de-risk this award and future bids. Watch how quickly the pair converts framework supply into model-specific SOP schedules and sustained monthly GWh.

Volkswagen Secures Long-Term Lithium Supply with Patriot Battery Metals

Patriot Battery Metals

Volkswagen, through its battery subsidiary PowerCo, has sealed a decade-long offtake agreement with Patriot Battery Metals, a Canadian lithium explorer, to source 100,000 metric tonnes per year (t/yr) of spodumene concentrate (SC). This deal is a strategic move to secure critical lithium resources as Volkswagen continues to expand its electric vehicle (EV) and battery production globally.

Patriot’s Shaakichiuwaanaan Asset Powers the Deal

The spodumene concentrate will be supplied from Patriot's Shaakichiuwaanaan Mineral Resources in Quebec, Canada. Notably, this resource is the largest lithium pegmatite deposit in the Americas and the eighth-largest globally, making it a vital supply chain asset for lithium-ion battery production. The concentrate will have a target grade of 5.5% lithium oxide, ideal for battery applications.

PowerCo plans to use the raw materials to fuel its gigafactories in Europe and North America, including its St. Thomas, Canada facility, which is set to be its largest cell factory, boasting a production capacity of up to 90 GWh per year.

Volkswagen Invests in Patriot and Future Lithium Conversion

As part of the partnership, Volkswagen has invested $48 million for a 9.9% stake in Patriot Battery Metals, signaling its commitment to long-term lithium sourcing. The deal also hints at future collaborations, including the potential development of a lithium conversion facility to ensure supply chain resilience and further vertical integration.

Volkswagen’s EV Push Faces Challenges

Volkswagen has delivered 506,500 battery electric vehicles (BEVs) globally from January to September 2024, a 4.7% decline year on year. Despite overall growth in North America, BEV deliveries in the US fell by 26%, reflecting competitive challenges in the region.

In Europe, Volkswagen remains dominant with a 19% market share in the BEV segment, reaffirming its stronghold. To bolster its EV ecosystem, the German automaker also formed a $5.8 billion joint venture with Rivian in November 2024 to advance software and electronics architectures for scalable EV platforms.

Strategic Significance

This agreement underscores the importance of securing stable, long-term access to critical minerals like lithium as automakers ramp up EV production. It also highlights Canada’s growing role as a key player in the global battery supply chain, thanks to its abundant natural resources and strategic partnerships with major manufacturers like Volkswagen.

Ford First-Quarter Sales Fell as Aluminium Supply and EV Weakness Hit Deliveries

Ford EV

Ford first-quarter sales fell in January-March as lower F-Series truck deliveries, weaker EV demand, and aluminium supply disruption weighed on the US automaker. Total vehicle sales declined by 8.8% on the year to 457,000 units.

Ford first-quarter sales were affected by production timing as the company worked to recover lost output tied to Novelis outage at its Oswego, New York, aluminium rolling facility. The disruption has exposed how dependent high-volume vehicle platforms are on stable aluminium sheet supply.

Ford first-quarter sales also reflected weaker electric vehicle momentum. Sales of all-electric and hybrid models fell by 35% to 48,000 units, while internal combustion engine vehicle sales declined by 4.3% to around 409,000 units.

F-Series Production Shows Aluminium Supply Chain Vulnerability

Ford’s F-Series truck sales fell by 16% on the year to 160,000 units in the first quarter. F-150 production declined by 11% to 137,700 trucks, while Super Duty output dropped by 17% to 74,900 units.

The decline matters because the F-Series is one of Ford’s most important profit engines. Any production disruption in the truck platform can have an outsized effect on revenue, margins, dealer inventory, and supplier scheduling.

The Novelis Oswego outage remains a key constraint. Ford expects the recovery in vehicle production to be weighted toward the second half of 2026, while warning that Novelis’ restart could be uneven.

Ford previously estimated that temporary aluminium sourcing costs could reach $1.5bn-2.5bn this year because of the Oswego fires. That cost pressure shows how one upstream rolling disruption can flow directly into automotive manufacturing economics.

EV Sales Weakness Adds Pressure to Ford’s Product Mix

Ford first-quarter sales were also hit by the company’s shift away from some EV production and the expiration of EV tax credits. Reduced availability of discontinued models added further pressure to deliveries.

SUV sales fell by 7.8% to 186,000 units, while Mustang sales rose by 50% to 14,000 units. This mixed performance shows that Ford’s portfolio remains uneven as the company balances combustion vehicles, hybrids, EVs, and high-margin trucks.

The EV decline is strategically important because automakers are still trying to manage battery costs, consumer demand, policy incentives, and production discipline. Lower EV volumes can affect demand for battery materials, power electronics, aluminium structures, copper wiring, and rare earth magnet supply chains.

For the wider metals market, the bigger lesson is clear. Automotive demand is not only shaped by consumers, but also by material availability, rolling capacity, battery economics, and policy support.

The Metalnomist Commentary

Ford’s results show that automotive production is now highly exposed to upstream material bottlenecks. The Novelis outage turned aluminium sheet supply into a direct constraint on truck output, while weaker EV sales added another layer of demand uncertainty.

Panasonic Energy Battery Supply Secures Harbinger’s EV Ambitions

Harbinger

Panasonic to Power Harbinger’s Medium-Duty EV Lineup

Panasonic Energy has officially become the battery supply partner for Harbinger, a California-based electric vehicle (EV) startup. The agreement covers Panasonic’s high-energy 2170 cells, which will be used in all Harbinger vehicle models. These cells, initially produced in Japan, will be shipped to Harbinger’s headquarters in Garden Grove, California, for integration.

U.S. Battery Manufacturing to Expand for EV Market

To localize production, Panasonic and Harbinger plan to scale up operations at Panasonic’s De Soto plant in Kansas. This initiative will support the creation of the first fully US-sourced commercial EV battery packs. The move aligns with broader U.S. supply chain and IRA-compliant sourcing strategies in the EV industry.

Commercial EV Momentum Builds with Strategic Orders

Harbinger began production in early 2025 and has approximately 5,000 pre-orders from major customers such as Bimbo Bakeries USA and THOR Industries. The Panasonic Energy battery supply deal supports the company’s ability to meet demand while securing domestic and reliable sourcing for future growth.

The Metalnomist Commentary

Panasonic’s strategic partnership with Harbinger exemplifies the growing trend of vertically aligned EV supply chains. The shift to U.S.-based battery sourcing not only strengthens industrial resilience but also signals a new era for commercial vehicle electrification.

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.

CATL LFP feedstock supply strategy accelerates amid global EV demand

CATL

The CATL LFP feedstock supply strategy is accelerating as the battery giant locks in long-term cathode materials. By prepaying key partner Shenghua, the CATL LFP feedstock supply strategy aims to stabilise costs and secure volumes. As EV demand rises, the CATL LFP feedstock supply strategy underpins CATL’s dominance in LFP batteries and its next growth phase.

Prepayments deepen CATL LFP feedstock supply chain integration

CATL has agreed significant prepayments to secure LFP from Jiangxi Shenghua, part-owned by Fulin Precision. It will pay 500mn yuan by September and a further Yn1bn in November to support Shenghua’s capacity expansion. However, supply volumes and pricing remain undisclosed, reflecting competitive sensitivity.

The CATL LFP feedstock supply strategy comes on top of earlier support for Shenghua’s new plants. CATL is backing a 160,000 t/yr LFP facility in Yichun and a 200,000 t/yr LFP plant in Sichuan. As a result, Shenghua’s LFP output already jumped from 42,159t in 2023 to 128,240t in 2024, with sales closely tracking that growth.

Meanwhile, CATL signed a Yn6bn deal with major LFP producer Jiangsu Lopal in mid-September. That contract secures 157,500t of LFP for CATL’s overseas factories from 2025 to 2031. Together, these moves show how the CATL LFP feedstock supply strategy combines prepayments, project finance and multi-year offtake to lock in LFP at scale.

CATL LFP feedstock supply supports EV battery expansion and sodium-ion push

CATL is coupling its LFP security with downstream partnerships and technology upgrades. The firm signed a cooperation agreement with EV maker Li-Auto on safety and ultra-fast charging. Li-Auto has already produced more than 1mn vehicles using CATL battery technology, cementing a deep platform relationship.

Battery installations underline the strength of CATL’s position. The company installed 190.9GWh of power batteries in January-June, up 38pc year on year. Therefore, the CATL LFP feedstock supply strategy is not just about risk management. It is also about sustaining leadership as competitors chase similar EV opportunities.

At the same time, CATL is preparing its next technology step with the Naxin sodium-ion battery. Mass shipments are targeted for 2027, with an energy density of 175Wh/kg. The company says this performance can cover over 40pc of domestic passenger vehicle demand. Sodium-ion will not replace LFP, but combined with a robust CATL LFP feedstock supply base, it gives CATL a wider toolkit across price and performance segments.

The Metalnomist Commentary

CATL is turning LFP procurement into a strategic weapon, using prepayments and capex support to secure future capacity. Its parallel push into sodium-ion suggests a portfolio approach to cathode chemistry rather than a single-bet strategy. For rivals and automakers alike, CATL’s LFP deals with Shenghua and Lopal are a clear signal that upstream security is now central to battery competitiveness.

US EV Charger Domestic Content Rule Could Reshape Charging Supply Chains

US, EV Charger

US EV charger domestic content rule could significantly reshape the charging equipment market. The US Department of Transportation has proposed raising domestic content requirements from 55pc to 100pc for federally funded EV chargers. The proposal would also end the Buy America public interest waiver introduced in 2023. As a result, the US EV charger domestic content rule could force a major reset in sourcing, assembly, and project execution.

This matters because federally funded EV chargers sit at the center of public charging expansion in the United States. If the proposal is adopted, projects in the acquisition or installation phase would need final assembly in the US and fully domestic components. That would sharply tighten compliance expectations. Therefore, the US EV charger domestic content rule would go well beyond a minor procurement change.

The proposal also arrives against a weak deployment backdrop. The Biden administration allocated $7.5bn in 2021 for EV charging stations. Yet only eight operational charging stations had been installed by June 2024. Consequently, the new rule raises a core policy question: will stricter domestic sourcing accelerate industrial buildout or slow charger deployment further?

Buy America EV Chargers Policy Now Favors Full Domestic Sourcing

Buy America EV chargers policy is clearly moving toward a far stricter interpretation. The earlier waiver allowed federally backed projects to move forward under more flexible sourcing rules. Removing that waiver would end that transition path. As a result, manufacturers and project developers would face a much narrower compliance window.

This shift could support domestic manufacturing if suppliers can scale quickly enough. US-based charger assembly, components, and sub-systems could all benefit from stronger policy protection. However, the transition may be difficult for companies still relying on mixed international supply chains. Therefore, Buy America EV chargers policy may reward a small group of prepared suppliers first.

The biggest challenge may be component depth. Final assembly in the US is one requirement. Full US-made EV charger components is a much harder threshold. That means the rule could expose weak points in power electronics, connectors, enclosures, and other charging hardware inputs. Meanwhile, compliance verification may become more complex for project owners.

Federally Funded EV Chargers Could Face a New Trade-Off

Federally funded EV chargers may now face a sharper trade-off between industrial policy and rollout speed. A 100pc domestic content rule can strengthen US manufacturing intent. But it can also reduce supplier flexibility and raise procurement friction. As a result, charger deployment timelines may face new pressure during the transition.

That trade-off matters because the current buildout has already moved slowly. Public charging expansion depends not only on funding, but also on permitting, grid connection, equipment supply, and contractor readiness. A stricter sourcing rule adds one more layer to that process. Therefore, federally funded EV chargers may become a test case for how far domestic content policy can go without harming project delivery.

The broader industrial signal is still important. Washington appears to be treating EV charging infrastructure as a strategic manufacturing category, not only a transport category. That places chargers closer to the wider US reshoring agenda. Consequently, the US EV charger domestic content rule could influence how future clean infrastructure policies are designed.

The Metalnomist Commentary

This proposal matters because it turns EV chargers into a more explicit industrial policy tool. The US is no longer only trying to fund charging growth. It is trying to localize the entire equipment chain behind that growth. If domestic suppliers cannot scale fast enough, deployment may slow before it strengthens.

Tesla Launches Texas Lithium Hydroxide Refinery: A Game Changer for EV Battery Production

Tesla Lithium Hydroxide Refinery

Tesla has officially begun operations at its lithium hydroxide refinery in Texas, marking a significant step in the company’s strategy to control its supply chain for critical battery materials. Located near Corpus Christi, the new facility aims to process lithium at scale, securing Tesla’s position as a major player in the electric vehicle (EV) market and ensuring a more stable supply of this vital element.

Tesla’s Vision for Lithium Refining at Scale

Following the groundbreaking of the facility in May 2024, Tesla has now successfully processed raw materials through its kiln. This refinery is a pivotal part of Tesla's plan to reduce its reliance on third-party suppliers and mitigate the effects of skyrocketing lithium prices. Tesla’s CEO, Elon Musk, emphasized that while lithium is abundant globally, the slow pace of extraction and refinement has created a bottleneck. The Texas refinery is designed to address this challenge by processing lithium more efficiently and directly at scale.

The facility is capable of refining lithium hydroxide, a key component in EV battery production. Tesla's refinery will primarily process spodumene concentrate, the most common raw material used to produce lithium hydroxide. However, the company has also announced plans to process recycled batteries and manufacturing scrap at the facility in the future, which would further enhance the sustainability and efficiency of its operations.

Advanced Refining Technology and Sustainable Practices

One of the most notable features of Tesla's new refinery is its acid-free lithium refining method, which reduces environmental impact compared to traditional refining techniques. The byproduct of this process—comprising sand and limestone—can be used in construction materials, further contributing to the sustainability goals of Tesla’s operations.

The refinery has a projected capacity of 50 GWh/yr, though Tesla has not disclosed a specific timeline for ramping up to full production capacity. The company’s efforts to diversify its lithium supply chain are also evident in its sourcing strategy. In 2023, Tesla sourced over 75% of its lithium from mining and refining companies, including industry giants such as Albemarle, Acradium, Ganfeng, and Yahua.

Implications for the EV Industry and Lithium Supply Chain

Tesla’s Texas lithium refinery represents a critical move in the global shift toward more sustainable and efficient lithium extraction. As demand for electric vehicles continues to surge, securing a stable and cost-effective supply of lithium is paramount. This refinery could serve as a model for other manufacturers looking to mitigate risks associated with lithium shortages and price volatility.

While Tesla has yet to provide full details on the ramp-up timeline, the opening of this facility signals the company’s ongoing commitment to innovating within the energy and automotive sectors, ensuring that it remains a leader in the electric vehicle industry.