Hubei Boyang launches manganese-based battery CAM plant to scale China’s next-wave cathodes

Hubei Boyang

China’s manganese-based battery CAM build-out gained momentum as Hubei Boyang started its first-phase plant. The project adds manganese-based battery CAM capacity and manganese tetroxide at scale. As a result, manganese-based battery CAM supply will deepen near upstream ore in Hubei.

First-phase start-up and three-stage growth path

Hubei Boyang commissioned a plant with 20,000 t/yr of manganese-based CAM. It also started 30,000 t/yr of manganese tetroxide. The site sits in Changyang, Yichang, central Hubei. However, the plan is larger than this first step. The full project targets 280,000 t/yr across three phases.

Changyang county hosts abundant manganese ore reserves for feedstock. Therefore, the location reduces logistics risk and costs. Hubei Zhongmeng operates five lines totaling 50,000 t/yr of manganese flake. That nearby supply strengthens the project’s raw material security.

China’s LMFP and Mn-rich cathodes expand rapidly

China’s power battery growth is catalyzing manganese-based battery CAM investments. Producers are scaling LMFP and related Mn chemistries. Meanwhile, Hunan Yuneng is building an LMFP line. Shanxanxi Tewashi began a 100,000 t/yr plant in May. Ningbo Ronbay plans LMFP and sodium-ion CAM in Hubei. Baiyin Shidai Ruixiang launched 20,000 t/yr of battery-grade LMFP in Gansu.

Manganese-rich cathodes aim to balance cost, safety, and energy. As a result, they target EVs and storage systems. Hubei Boyang’s start-up signals tighter integration from ore to cathode. It should broaden customer options beyond LFP and ternary NCM.

The Metalnomist Commentary

China’s Mn-based push lowers cathode cost while reducing nickel and cobalt exposure. Watch phase-by-phase execution and LMFP adoption rates. Regional feedstock proximity could anchor margins during price swings.

China Discovers Major Niobium Deposit in Hubei, Aiming to Reduce Heavy Dependence on Brazilian Imports

China Niobium

New 2.5mn t Resource Could Transform Domestic Supply Chain, But Environmental and Cost Barriers Remain

Hubei’s Niobium Discovery Could Shift Global Trade Dynamics

China has uncovered a massive niobium oxide deposit totaling 2.538 million tonnes in Zhushan and Zhuxi counties of Hubei province, according to Hubei Daily. This single deposit could account for 54% of China’s total niobium reserves, potentially making Hubei the nation’s top niobium base.

Until now, China has detected 4.7 million tonnes of niobium resources, primarily in Inner Mongolia, Hubei, Jiangxi, and Shaanxi. However, the low grade and complex impurities of most domestic deposits have long hindered large-scale extraction, pushing China to rely heavily on imports of ferro-niobium.

China’s Heavy Reliance on Brazil for Ferro-Niobium Faces Challenge

In 2024, China imported 42,900 tonnes of ferro-niobium, up 9.7% year-on-year, with 96% sourced from Brazil—the global leader in ferro-niobium production. Notably, China accounted for 45% of Brazil’s total exports of the alloy last year.

The newly discovered Hubei resource, if economically viable, could significantly cut reliance on Brazilian supply. The Ministry of Natural Resources, China Geological Survey, and Hubei government aim to extract at least 929,000 tonnes using advanced recovery technologies.

Supply Chain Tightness and Rising Prices Spur Strategic Moves

Tight global supply has kept niobium concentrate prices high, with 50% grade material reaching $19–20/lb cif in February 2024—a near three-year high, according to SUPERMETALPRICE. This price surge is fueled by booming demand in batteries and superalloys.

Chinese smelters have struggled to secure supply, turning to tantalite with higher niobium content or even ferro-tungsten from Brazil to produce niobium pentoxide. The Hubei discovery comes at a crucial time but faces environmental and cost-related challenges, which could limit short-term development.

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

Lithium-Ion Battery

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

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

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

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

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

Graphite recovery and copper foil separation define the value capture

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

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

The Metalnomist Commentary

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

China’s Hubei Wanrun Launches LFP Battery Production Plant in Shandong

Hubei Wanrun

Hubei Wanrun, a prominent Chinese new energy firm, has officially launched a major production plant for lithium iron phosphate (LFP) and its feedstock iron phosphate in Binzhou city, located in Shandong province. The plant is a significant move to strengthen China’s position as a leading global supplier of materials critical for the electric vehicle (EV) and energy storage industries.

The new facility has a total nameplate capacity of 240,000 tons per year for LFP and an additional 240,000 tons per year for iron phosphate, with a total investment of 6.5 billion yuan (approximately $913 million). The initial phase of the plant has already launched, including 120,000 tons per year of LFP production capacity and the full 240,000 tons per year for iron phosphate. The remaining 120,000 tons per year of LFP capacity is still pending and has yet to be launched.

The project is a joint venture between Wanrun New Energy, a major Chinese producer of LFP cathode materials, holding an 80% stake, and Hubei, a multi-sector Chinese company with a 10% stake. Shenzhen Shijia Enterprise, a well-known export/import firm, holds the remaining 10% stake in the project.

Wanrun New Energy's Role in the Growing LFP Market

Wanrun New Energy has solidified its position as a key player in the global LFP market. In the first half of the year, the company shipped 78,000 tons of LFP, marking a 24% increase from the previous year. Additionally, Wanrun has plans to expand its global footprint with a new LFP production plant in South Carolina, USA, signaling the growing demand for LFP as a key material in the battery manufacturing sector.

In China, LFP batteries continue to dominate the market, making up a 75.6% share of the combined production for both power and energy storage batteries. This dominance is reflected in recent data from the China Automotive Battery Innovation Alliance, showing that LFP batteries accounted for 75.8% of newly installed volumes for power batteries during the period from January to September, totalling 734.4 GWh in production and 246.6 GWh in newly installed volumes.

LFP’s increasing share of the battery market, particularly for electric vehicles and energy storage systems, highlights the growing importance of materials like iron phosphate and lithium iron phosphate in the global energy transition. As demand for cleaner energy and EVs accelerates, the supply of high-quality LFP will become even more critical.

Ronbay sodium-ion battery cathode project breaks ground in Hubei

Ronbay

Ronbay sodium-ion battery cathode project construction has started in Hubei today. The 6,000 t per year line represents a 1.2bn yuan investment. However, the company has not disclosed a commissioning date.

Ronbay sodium-ion battery cathode project expands a diversified CAM portfolio. The firm already produces NCM, LMFP, and sodium-ion CAM. Meanwhile, high-nickel NCM remains the company’s core product.

Capacity roadmap and demand outlook

Output reached 137,351 t in 2024, up 34% year on year. Ronbay plans 130,000–150,000 t of CAM in 2025. In 2023, it committed 3bn yuan for 50,000 t per year by 2026.

The company booked a 3,000 t sodium-ion cathode order this year. Global sodium-ion demand may reach 23 GWh in 2025. As a result, two- and three-wheelers and storage will drive early volumes.

Commercial implications for sodium-ion batteries

Sodium-ion batteries promise cost and safety advantages versus LMFP. Resource abundance lowers raw-material risk and improves scalability. Therefore, the Ronbay sodium-ion battery cathode project targets mass-market applications.

Hubei offers logistics access and supplier depth for scale-up. However, customer qualification and procurement cycles may slow adoption. Consequently, initial shipments should concentrate on mobility and stationary storage.

The Metalnomist Commentary

The Ronbay sodium-ion battery cathode project signals prudent hedging beyond lithium-based chemistries. Execution will hinge on qualification wins, cost curves, and timely ramp at both 6,000 t and 50,000 t assets.

Hubei Letong Halts Manganese Flake Production Due to Losses

Hubei Letong, a Chinese manganese flake producer, suspended its output last week amid operating losses and equipment maintenance issues, market sources confirmed. The company, based in Changyang county, Hubei province, has yet to announce when production will resume. Hubei Letong was producing 40-50 tonnes per day prior to the halt, with a total annual capacity of 36,000 tonnes. Compounding the situation, manganese ore supplies have been tight due to local environmental inspections.

Manganese flake prices have rebounded slightly in the past two weeks, driven by producers raising offers to offset operating losses. However, further price increases are not expected, as the market for manganese alloys has remained sluggish. The stainless steel sector, a major consumer of manganese flake, has not recovered as anticipated, even after the typical summer slowdown ended.

Producers with in-house mines faced significant losses when prices fell below 12,000 yuan per tonne. On September 18, domestic prices for 99.7% grade manganese flake were assessed at 12,000-12,200 yuan per tonne, reflecting a 300-yuan increase from earlier this month. This price recovery comes after a downward trend throughout July and August, following a one-year high of 13,700-13,900 yuan per tonne in late June.

Hunan Shunke Launches Manganese Flake Plant in China’s Hunan Province

Chinese producer Hunan Shunke New Material has commenced operations at its new manganese flake plant, initiating production with the first two lines. According to local government reports, these initial production lines are expected to yield a combined output of 2,200 tons per month. The company plans to activate the remaining three production lines by the end of this year, with an ambitious target to produce 25,000 tons of manganese flake in 2024.

Located in Huayuan county in central China’s Hunan province, Hunan Shunke has collaborated with Dongfang Mining, another flake producer in the region, investing 30 million yuan ($4.1 million) in this project. The expansion into manganese tetroxide production, which is crucial for the lithium-ion battery industry, is also part of Shunke's strategic growth plan.

The rapid growth of the electric vehicle (EV) power battery sector has driven many Chinese companies to increase production of manganese-based battery materials. In 2023, China’s lithium manganate production rose to 122,000 tons, marking a 40% increase from the previous year, according to the China Non-Ferrous Metals Industry Association.

In related developments, Hubei Boyang New Materials announced in July plans to build a manganese-based cathode active materials (CAM) plant in the Changyang economic development zone of Yichang city, Hubei province. Additionally, Wuxi Jewel Power and Materials revealed plans in June to construct lithium manganate and lithium manganese iron phosphate plants in Guangyuan, Sichuan province.

BYD LFP processing deal expands supply chain with Xingfa tolling capacity

BYD, LFP

The BYD LFP processing deal adds fresh capacity as China’s EV and storage demand rises. Hubei Xingfa Chemical will process 80,000 t/yr of lithium iron phosphate for BYD. Meanwhile, the agreement reinforces BYD’s diversified LFP sourcing strategy.

The partnership runs through a subsidiary-to-subsidiary processing framework. Hubei Xingshun New Material signed with Qinghai Fudi Industrial for the tolling work. However, the parties did not disclose the start date.

Tolling capacity supports fast-growing LFP demand

The contract targets 80,000 t/yr of LFP processing over a two-year term. The deal can renew for one additional year with mutual consent. Therefore, the structure gives both sides flexibility as demand shifts.

BYD keeps expanding battery deployments across power and storage markets. BYD installed 258.282GWh in January–November, up 51pc year on year. As a result, BYD keeps tightening upstream security for LFP and related inputs.

Phosphorus chemistry players deepen battery-material integration

Xingfa has built a broader platform beyond traditional phosphorus chemicals. The company has commissioned 100,000 t/yr iron phosphate capacity and 80,000 t/yr LFP capacity. Meanwhile, it has also built 100,000 t/yr lithium dihydrogen phosphate capacity.

BYD continues to source LFP from multiple producers to avoid bottlenecks. Key suppliers include Hunan Yuneng and Shenzhen Dynanonic. BYD also buys from Jiangsu Lopal, Zhejiang Youshan, and Shandong Fengyuan.

The Metalnomist Commentary

The BYD LFP processing deal signals that tolling models now matter in China’s battery materials race. However, BYD’s supplier diversity still acts as its main hedge. Therefore, investors should track renewal terms and upstream phosphate integration.

Hubei Letong Resumes Manganese Flake Production Amid Price Surge

Chinese manganese flake

In a move reflecting optimism in the metals market, Hubei Letong, a prominent Chinese manganese flake producer, has resumed its production of 30-40 tons per day after a nearly month-long hiatus. The suspension, which began in mid-September, was primarily due to equipment maintenance and ongoing operating losses that necessitated the pause in operations.

Market Recovery Fuels Production Resumption

The resumption of output coincides with a notable increase in manganese flake prices, driven by rising demand from the stainless steel sector. As of October 14, domestic prices for 99.7% grade manganese flake were assessed between 12,300 and 12,500 yuan per ton (approximately $1,737 to $1,765), marking a rise of 100 yuan per ton from October 11. This increase is a significant recovery from the earlier price range of 12,000 to 12,200 yuan per ton reported on September 25.

The market sentiment has strengthened in the latter part of September, particularly following China’s announcement of new stimulus measures aimed at bolstering the struggling real estate sector ahead of the October national holiday. Industry observers remain cautious, however, as they anticipate whether these policies will sufficiently stimulate demand within the steel sector.

China's LMFP Battery Plant Boosts Cathode Material Market

Battery LFP

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

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

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

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

The Metalnomist Commentary

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

Jingxi Daxinan Halts Manganese Flake Production Amid Market Pressures

Manganese Flake

Maintenance Shutdown Precedes Lunar New Year Holiday

Jingxi Daxinan, a Chinese manganese flake producer, will halt its daily output of 30-40 tonnes next week. This stoppage is for equipment maintenance prior to the Lunar New Year holiday. The company plans to restart production mid-February. Located in Jingxi city, Guangxi province, the smelter boasts a 20,000 tonne annual capacity.

Market Stability and Producer Challenges

Manganese flake prices have remained stable since December 12, 2024. This follows an earlier price surge. Stainless steelmakers resist higher offers. They cite rising manganese alloy prices, a substitute material. Some smaller producers struggle with profitability. They lack in-house mines or power plants. Low demand from stainless steel sectors hinders price increases. Several producers are halting operations for maintenance. This happens before the Lunar New Year holiday. Hubei Letong and Tongren Hecheng also stopped production. Domestic 99.7pc grade flake prices are at 12,300-12,500 yuan/tonne. Prices should remain steady. Producers will hold firm. Rising sulphuric acid and ferro-alloy prices support flake prices. This offsets low stainless steel demand.

Shidai Ruixiang Launches LMFP Battery Material Plant in Gansu

Baiyin Nonferrous Group

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

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

China Expands LMFP Footprint in Global EV Market

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

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

Strategic Role of State-Backed Metals Companies in CAM Expansion

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

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

The Metalnomist Commentary

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

Lopal LFP supply deal with CATL underpins global battery expansion

Lopal

The Lopal LFP supply deal with CATL marks a major step in China’s global battery materials strategy. Under the agreement, Jiangsu Lopal will supply 157,500t of LFP cathode material to CATL’s overseas plants from 2025 to 2031. As a result, the Lopal LFP supply deal with CATL secures long term CAM supply for CATL’s international gigafactories and EV customers.

Global significance of the Lopal LFP supply deal with CATL

The Lopal LFP supply deal with CATL is valued at more than 6bn yuan, highlighting its strategic weight. The contract will feed CATL’s overseas battery factories, supporting EV and energy storage growth outside China. Therefore, CATL locks in a predictable stream of LFP CAM while scaling its non Chinese manufacturing footprint.

LFP is gaining share in global batteries because it offers lower cost and strong safety performance. However, reliable cathode supply remains crucial as more OEMs shift from nickel rich chemistries. The Lopal LFP supply deal with CATL supports this trend by linking a leading LFP producer to the world’s largest cell maker.

Lopal has grown rapidly since acquiring BTR’s LFP business in 2021. Its output reached 184,697t in 2024, up 56pc year on year. Meanwhile, LFP sales rose 65pc to 178,287t, confirming strong downstream demand. This growth gives CATL confidence in Lopal’s ability to deliver under a long dated contract.

Lopal’s internationalisation push and new LFP capacity

The CATL agreement sits at the centre of Lopal’s internationalisation strategy. Lopal already holds term contracts with Cornex, Ford and LG Energy Solution. Therefore, the company is building a diversified global customer base across Chinese and foreign cell makers and OEMs.

Lopal’s production network spans several Chinese provinces, supporting scale and logistics flexibility. Major bases operate in Jiangsu, Shandong, Tianjin, Sichuan and Hubei. This footprint helps balance regional feedstock, power and permitting conditions. It also spreads risk as domestic competition in LFP intensifies.

Internationally, Lopal is building new capacity in Indonesia to support regional demand and localisation policies. The company has completed a 30,000 t/yr LFP phase there and is constructing a 90,000 t/yr second phase. It aims to finish this expansion by the end of 2025, creating a 120,000 t/yr Indonesian hub. This timing aligns with the ramp up of CATL and other Asian players across Southeast Asia.

The Lopal LFP supply deal with CATL will likely leverage both Chinese and Indonesian output over time. As a result, Lopal can optimise feedstock sourcing, shipping routes and tariff exposure. This flexibility matters as trade rules and battery content regulations evolve in the US, Europe and key emerging markets.

The Metalnomist Commentary

This deal underscores how LFP chemistry and Chinese CAM producers are locking in long term roles in global EV supply chains. By pairing fast growing Indonesian capacity with deep Chinese experience, Lopal becomes a more systemically important supplier to CATL and other majors. Market participants should watch how pricing formulas, regional sourcing splits and future offtake deals evolve, as these will shape LFP cost curves outside China.

Guibao silicon-carbon anode capacity expands with Sichuan second phase

Chengdu Guibao Science

Guibao silicon-carbon anode capacity expands as the firm builds a second phase in Sichuan. The Meishan plant adds 3,000 t per year by December 2025. The first 1,000 t per year phase started in April 2023. Guibao silicon-carbon anode capacity could reach 11,000 t per year with phase three. However, the 7,000 t per year third phase depends on market conditions.

Timeline, scale, and technology

Site construction on phase two began in September 2024. Commissioning is targeted by end-December 2025, pending qualification. Guibao remains Asia’s largest high-end silicone sealant producer. It operates 370,000 t per year of sealant capacity. Therefore, cashflow supports capital spending and start-up risk.

Silicon-carbon anodes promise far higher specific capacity than graphite. Theoretical capacity reaches about 4,200 mAh per gram. This is roughly ten times typical graphite anode capacity. However, swelling and cycle life require careful design and binders. As a result, customer qualification remains the pacing item.

Competitive landscape and demand outlook

Industry demand for silicon anodes could reach 100,000 tonnes by 2030. Large cylindrical cells and high-nickel prismatic formats drive growth. Peer capacity is also rising across China. Beijing Lirr backed a 10,000 t per year Hubei project for 2025. Putailai started trial production in Anhui at 12,100 t per year. That includes 10,000 t silicon-carbon and 2,100 t silicon oxide lines.

Guibao silicon-carbon anode capacity positions the firm for EV and storage demand. Meanwhile, phase three offers optionality if orders accelerate. Therefore, execution must balance cost, yield, and OEM timelines.

The Metalnomist Commentary

Guibao’s staged build limits risk while capturing early silicon-anode adoption. Watch qualification wins with leading cell makers and swelling mitigation progress. Pricing and graphite substitution rates will determine margin durability.

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

Wanrun

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

Strategic Partnership Drives Battery Technology Innovation

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

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

CATL's Market Leadership Drives Demand Growth

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

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

LFP Technology Gains Global Market Share

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

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

The Metalnomist Commentary

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

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

Lopal

Strategic Agreement Secures 150,000t of LFP Through 2029

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

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

Lopal Expands Production Footprint Across China and Indonesia

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

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

Term Contracts Signal Confidence from Global OEMs

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

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

The Metalnomist Commentary

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

Lopal and EVE Energy Ink $694mn LFP Cathode Supply Deal

Lopal

Strategic Partnership for Malaysian Battery Production

Chinese lithium iron phosphate (LFP) cathode producer Jiangsu Lopal has signed a landmark supply agreement with EVE Energy’s Malaysian subsidiary, underscoring the growing importance of Southeast Asia in the global battery supply chain. The five-year deal covers the delivery of 152,000t of LFP cathode material between 2026 and 2030, with a total estimated value exceeding 5bn yuan ($694mn). The agreement includes flexibility clauses allowing EVE Energy to adjust order volumes within predefined limits, while pricing will be determined quarterly to reflect market conditions.

EVE Energy began operating its first overseas battery manufacturing facility in Malaysia in February 2025. The plant, designed with an annual output capacity of 680mn cylindrical batteries, primarily serves the electric tool and electric two-wheeler markets. By sourcing LFP cathode materials locally within Asia, EVE Energy aims to strengthen supply chain resilience and reduce exposure to cross-border trade risks.

Global LFP Supply Chain Diversification

Lopal has emerged as one of China’s most prominent LFP cathode producers since acquiring the business from Shenzhen BTR New Energy Material. The company operates large-scale production complexes across Jiangsu, Shandong, Tianjin, Sichuan, and Hubei, giving it significant domestic manufacturing coverage and the ability to meet large-volume contracts. In addition to EVE Energy, Lopal has also secured long-term supply deals with Cornex and Ford Motor Company this year, further expanding its customer portfolio.

This deal comes amid escalating US–China trade tensions, particularly in the energy storage sector. The United States has imposed a 40.9pc tariff on Chinese-produced LFP batteries for energy storage systems (ESS), driving manufacturers to diversify production locations. China still produces over 90pc of the world’s LFP batteries, but other countries are rapidly entering the market. LG Energy Solution (LGES) in South Korea has already started mass production of LFP batteries in the US, signaling a shift in global production strategies.

With geopolitical pressures, fluctuating raw material prices, and the ongoing global push for electrification, long-term supply contracts like this one between Lopal and EVE Energy are becoming increasingly critical for securing stable production pipelines and competitive advantage.

The Metalnomist Commentary

This agreement reflects a broader industry shift toward decentralizing battery material production across multiple regions to reduce geopolitical and logistical risks. As global demand for LFP batteries accelerates, Southeast Asia is poised to become a crucial manufacturing hub, offering both cost efficiency and strategic proximity to major markets.

Expanding Horizons: Guangdong Brunp's Strategic Growth in LFP Battery Production

Brunp

Brunp's Bold Expansion in Lithium-Iron-Phosphate Capacity

Guangdong Brunp, a leading Chinese manufacturer in battery cathode materials and precursors, has announced plans for a significant expansion of its lithium-iron-phosphate (LFP) production capabilities in Yichang, Hubei Province. The company is set to invest 5 billion yuan ($682 million) to construct a new 450,000 ton per year LFP facility, marking a major step in meeting the growing demand for these batteries.

Details of the Expansion Plan

Scheduled to unfold in two phases, the project's finer details, including construction timelines and launch dates, remain under wraps. This expansion is part of Brunp's broader strategy to strengthen its foothold in the LFP market, a segment that is becoming increasingly vital due to its cost-efficiency in electric vehicle (EV) applications.

The Role of LFP Batteries in the Global Market

With the ownership of a 64.8% stake by Contemporary Amperex Technology (CATL), the world's largest lithium-ion battery manufacturer, Brunp is well-positioned to capitalize on the industry's shifts. China, as the leading battery producer, saw LFP batteries comprising 74.4% of its total production in 2024. These batteries are preferred for their safety and cost advantages, especially following subsidy cuts in China for new energy vehicles.

Brunp Battery Materials Project Expands CATL’s Recycling and LFP Supply Chain

Brunp Battery Materials

Brunp battery materials project development has advanced in Yichang, Hubei province, as Guangdong Brunp Recycling Technology broke ground on a 500,000 t/yr production complex. The project carries total investment of 6.1bn yuan, or about $840 million.

The new plant is designed to produce 300,000 t/yr of iron phosphate, 180,000 t/yr of nickel sulphate and 12,000 t/yr of cobalt sulphate. Construction is scheduled for completion in the second half of 2027.

Brunp battery materials project investment strengthens the upstream materials platform behind China’s battery industry. Brunp is a controlling subsidiary of CATL, the country’s largest battery producer, and focuses on recycling, resources and battery materials.

Yichang Base Builds Scale Across LFP and Recycling

The Yichang base will become a major integrated battery materials hub once the new project is operational. It will have 750,000 t/yr of iron phosphate capacity, 450,000 t/yr of lithium iron phosphate capacity and 500,000 t/yr of battery recycling capacity.

Brunp has already made several investments in Yichang since entering the city in 2021. The company launched a 450,000 t/yr LFP factory in December, reinforcing the site’s role in China’s expanding phosphate-based battery supply chain.

This matters because LFP batteries continue to gain share in electric vehicles and energy storage systems. Large-scale iron phosphate and LFP capacity gives CATL-linked supply chains stronger control over cost, material availability and recycling integration.

Recycling Capacity Deepens China’s Battery Materials Control

Brunp Recycling processed more than 200,000t of power batteries in 2025. The company now plans to raise total recycling and processing capacity to more than 1mn t/yr by 2030.

The strategy reflects a wider shift in battery materials sourcing. Recycling is becoming a strategic source of nickel, cobalt, lithium and other battery inputs, especially as governments and manufacturers seek lower-carbon and more secure supply chains.

The Yichang project also adds nickel sulphate and cobalt sulphate capacity, linking recycling with precursor material production. However, weaker upside in metals prices has limited buyer appetite in China’s black mass market, even as NCM payables edged higher in early March.

The Metalnomist Commentary

Brunp’s Yichang expansion shows how CATL is tightening control over the full battery materials loop, from recycling to LFP and sulphate production. The project also underlines China’s advantage in building scale across both primary materials processing and circular battery supply chains.

Wanrun’s Bold Move: Building LFP Battery Plant in the U.S. Amid Geopolitical Strains

China’s Hubei Wanrun New Energy Technology, a leading producer of lithium-iron-phosphate (LFP) cathode active materials, has announced plans to construct a state-of-the-art production facility in South Carolina, U.S. The project is expected to begin operations in 2028, with an investment totaling $167.6 million and a production capacity of 50,000 tons per year. The construction is anticipated to take 30 months, and the first phase will include a 9,000-ton capacity.

Wanrun has already established a subsidiary, Wrestore Technology, in South Carolina to facilitate the venture. This move aligns with a growing trend among Chinese companies to invest in overseas markets due to mounting geopolitical tensions and restrictions on materials produced in China.

Geopolitical Challenges and Wanrun’s Strategic Expansion

Geopolitical tensions between China and Western nations, coupled with growing material restrictions, have driven Chinese companies to explore opportunities abroad. Wanrun’s expansion into the U.S. market mirrors similar ventures by other major Chinese battery firms, such as EVE Energy, which began constructing an LFP battery plant in Mississippi earlier this year.

Wanrun's shipments of LFP materials increased by 24% year-on-year in the first half of 2023, reaching 78,000 tons. The company’s strong partnerships with industry leaders like CATL, BYD, and Gotion High-Tech position it well for continued growth. In China, LFP batteries dominate the market, with 75% of the production and 74% of the installed volume in August 2023. While lithium-ion battery and electric vehicle manufacturers outside China have traditionally preferred ternary CAM, rising interest in LFP technology suggests that Wanrun’s move may capture significant global market share in the coming years.

As international interest in LFP batteries grows, Wanrun’s U.S. facility could play a pivotal role in expanding the technology’s global footprint.