Tesla LFP cell production stays on track as US cathode push advances

Tesla LFP cell

Tesla LFP cell production remains on schedule as the company advances US lithium refining and cathode output. The plan prioritizes onshore battery materials and the first domestic LFP cells this year. The strategy targets energy storage markets alongside vehicle electrification.

Refining, cathode and storage milestones

Tesla said its LFP cell factory in Sparks, Nevada is nearing completion. The company began operating a lithium hydroxide refinery near Corpus Christi in December 2024. Energy storage deployments rose 2% to 9.6GWh in the recent quarter. Tesla also deployed the first Megapacks from its Shanghai factory. The company said paired solar and Megapack systems are cost-competitive with fossil power.

Demand, profitability and policy headwinds

Quarterly deliveries fell to 384,122 EVs, from 443,956 a year earlier. Second-quarter profit slipped 16% to $1.2bn on lower volumes and pricing. Tesla launched a Robotaxi service in Austin and introduced Model Y in India. The company reported market share declines across the US, Canada, Europe and China. Tesla LFP cell production remains central to its US supply chain plans.

However, tariff and policy shifts are pressuring margins. Tesla estimated about $300mn in added tariff costs this year. Two-thirds affect the automotive segment and the rest the energy business. The company cited challenges from the July 4 tax and energy law and tariffs. The $7,500 US tax credit repeal by quarter-end limited domestic vehicle supply. Management said early credit expirations also weigh on residential storage demand. Tesla LFP cell production is intended to offset import exposure over time.

The Metalnomist Commentary

Tesla’s domestic cathode and LFP build-out lowers geopolitical and tariff risk across its battery supply chain. Watch commissioning pace in Sparks and ramp efficiency at Corpus Christi for cost traction. Policy volatility remains the swing factor for US demand and profitability.

Nano One SMM LFP collaboration targets global cathode growth

Nano One

The Nano One SMM LFP collaboration is moving into a deeper commercial phase in the global cathode market. Building on successful technical trials and economic modeling, the Nano One SMM LFP collaboration now targets large scale LFP opportunities with strategic customers. As a result, the Nano One SMM LFP collaboration could reshape how low cost, low footprint LFP cathodes enter the EV supply chain.

Nano One SMM LFP collaboration built on technology validation and IP strength

The Nano One SMM LFP collaboration follows extensive validation of Nano One’s proprietary LFP process. Sumitomo Metal Mining gained confidence after positive development work, plant trials and detailed economic analysis. An intellectual property review further strengthened the case for a long term partnership.

Nano One’s technology aims to simplify LFP production, cut process steps and reduce energy intensity. Therefore, it fits growing OEM and cell maker pressure for lower cost, cleaner cathode materials. SMM, as an integrated miner, refiner and CAM producer, can bring scale, funding and industrial discipline.

The partners now plan to pursue concrete LFP production projects with targeted strategic customers. These customers include international automotive groups and battery cell manufacturers already supplied by SMM. Meanwhile, Nano One secures a powerful route to commercialisation without building full scale plants alone.

LFP expansion strengthens SMM’s cathode portfolio

SMM already produces nickel rich cathode materials and added LFP to its product suite in 2022. The Nano One SMM LFP collaboration supports that pivot toward a broader chemistry mix. As EV markets diversify, customers increasingly want both high nickel and LFP options in the same supply relationship.

SMM also holds a 5pc strategic equity stake in Nano One, aligning incentives beyond a standard technology deal. This equity link signals long term commitment to joint LFP development. Therefore, both parties share upside from successful commercial deployment of Nano One’s process.

By 2030, SMM aims to triple overall cathode production capacity from about 60,000 t/yr to 180,000 t/yr. LFP will form a growing share of that volume as cost focused EVs and storage systems expand. The Nano One SMM LFP collaboration can help SMM differentiate on process efficiency and environmental performance in that growth.

The Metalnomist Commentary

This partnership underlines how process innovation is becoming as strategic as raw material access in the cathode business. If Nano One’s technology scales smoothly inside SMM’s manufacturing base, it could tilt LFP cost curves and margins in their favour. Market participants should watch for the first named customer projects and capacity commitments as the clearest proof points.

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.

Tesla Nevada LFP Line Signals New Phase in US Battery Localization

Tesla Nevada

Tesla Nevada LFP line will begin producing LFP batteries in early 2026, reshaping US battery supply chains. The company highlighted steady progress on raw material, intermediate and final assembly stages for both LFP and nickel supply chains in the US and Europe. As a result, Tesla is moving further away from imported cell dependence and closer to a fully integrated North American battery ecosystem.

However, the Tesla Nevada LFP line is only one pillar of a broader localization push. Tesla plans to start lithium refining in Texas by late 2025, tightening control over a key upstream bottleneck. Meanwhile, new battery and powertrain designs in Model 3 and Model Y standard versions have boosted efficiency, with ranges now up to 321 miles. These steps show how chemistry choices, pack design and local processing are converging into a cost and range optimization strategy.

Tesla Nevada LFP line supports energy storage and grid-scale growth

The Tesla Nevada LFP line will also feed a rapidly expanding stationary storage business. Tesla delivered over 497,000 EVs in the recent quarter, but it also deployed a record 12.5GWh of energy storage. Megablock, the new industrial battery concept that integrates four Megapack 3 units, targets faster deployment for utilities and grid operators.

Meanwhile, Megapack 3 production will begin at Megafactory Houston in 2026, with capacity reaching up to 50GWh per year. This scale, combined with the Tesla Nevada LFP line, positions LFP chemistry as the backbone of large-format storage, where energy density matters less than cost, safety and longevity. As a result, Tesla can decouple storage growth from the more constrained nickel and cobalt chains serving premium EV segments.

Still, the financial picture remains complex even as the Tesla Nevada LFP line advances. Tesla reported second-quarter profit of $1.4bn, down 37pc from a year earlier, underscoring margin pressure from price cuts, capex and product transitions. However, deeper vertical integration in refining, cell production and storage systems could support future margin repair once new assets ramp.

The Metalnomist Commentary

Tesla Nevada LFP line development shows how fast OEMs are internalizing critical battery value chains under geopolitical and cost pressure. If the Nevada line, Texas refining and Houston Megafactory ramp on schedule, Tesla will hold a structurally advantaged position in LFP-based mobility and grid storage. The key watchpoints now are execution risk, chemistry performance in real-world fleets, and how rivals respond in the race to localize battery metals.

Tesla LGES Michigan Battery Plant Strengthens US LFP Supply for Energy Storage

LGES, Michigan Battery Plant

Tesla LGES Michigan battery plant plans mark a major step in the buildout of US lithium iron phosphate battery capacity. Tesla and LG Energy Solution have signed a supply agreement to develop a $4.3 billion LFP battery cell facility in Lansing, Michigan.

The plant is scheduled to begin production in 2027. It will supply battery cells for Tesla’s Megapack 3 energy storage systems, which the company plans to produce at its Houston megafactory.

The Tesla LGES Michigan battery plant also reflects a wider shift in battery demand. Stationary energy storage is becoming a larger driver of cell procurement as power grids absorb more renewable energy, data center demand, and industrial electrification.

Lansing Facility Repositions Former EV Capacity Toward Grid Storage

The Lansing project carries strategic significance because the facility previously formed part of a General Motors and LGES joint venture. LGES acquired GM’s stake for $2.1 billion after GM reduced electric vehicle-related capacity and investment.

This change shows how battery assets can be redirected as market priorities shift. EV demand remains important, but utility-scale storage is becoming a stronger growth channel for LFP chemistry.

The 50 GWh per year facility gives Tesla a large domestic cell supply base for Megapack 3. It also supports Tesla’s plan to begin Megapack 3 and Megablock production in Houston in 2026.

Tesla

LFP Chemistry Gains Ground in US Energy Storage Supply Chains

LFP battery cells are becoming increasingly important for energy storage systems because they offer cost, cycle life, and safety advantages for stationary applications. For Tesla, securing LFP supply in the US reduces exposure to imported cells and supports larger energy storage deployments.

The Tesla LGES Michigan battery plant also strengthens LGES’s position in the US battery value chain. By converting a former EV-focused site into a major LFP supply point, LGES can serve a market where demand is tied to grid infrastructure rather than only vehicle sales.

Tesla’s Megapack business is already scaling. The company sold $430 million of Megapack products in 2025 to xAI, its sister company and Elon Musk’s artificial intelligence startup, highlighting the link between energy storage and rising power demand from AI infrastructure.

The Metalnomist Commentary

This agreement shows that battery supply chains are no longer being shaped only by electric vehicles. Grid storage, AI power demand, and domestic manufacturing policy are becoming equally powerful forces.

Ford to invest $5bn in electric trucks and LFP batteries

Ford electric trucks

Ford to invest $5bn in electric trucks and LFP batteries, advancing US EV manufacturing. The plan funds Louisville Assembly and BlueOval Battery Park Michigan. Ford to invest $5bn in electric trucks and LFP batteries to launch a midsize pickup and domestic LFP cells.

Louisville expansion and 2027 electric pickup

Ford will build a four-door midsize electric pickup from 2027. The model will target US and export markets. Kentucky’s incentive offer supports the Louisville program. Ford will expand the plant by 52,000ft² with nearly $2bn. This capacity backs body, final assembly, and launch readiness. As a result, Ford secures near-term EV production certainty.

US-made prismatic LFP batteries and supply chain

Ford will produce prismatic LFP batteries in Michigan. The company says it will be the first US automaker to do so. LFP packs cut cost and improve durability. They also save space and weight versus NMC chemistries. Integration into the floor lowers the center of gravity. Therefore, vehicles gain handling, efficiency, and cabin quietness. Jiangsu Lopal will supply LFP cathode materials under a five-year deal.

Why this matters for EV economics

Ford to invest $5bn in electric trucks and LFP batteries positions the firm for price discipline. LFP lowers bill of materials and warranty risk. Meanwhile, prismatic form factors streamline pack engineering. BlueOval investment, totaling $3bn previously, accelerates US cell scaling. The combined footprint strengthens domestic content compliance.

The Metalnomist Commentary

Ford’s push marries LFP cost advantages with a high-volume truck segment. If prismatic yields scale smoothly, Ford can defend pricing and margins. Watch cathode localization and lithium sourcing as the next competitiveness lever.

NETC LFP battery plant launches in Gansu to scale China’s energy storage supply

NETC

The NETC LFP battery plant has broken ground in Lanzhou, Gansu. The NETC LFP battery plant will add 30 GWh/yr in three phases. The NETC LFP battery plant targets fast-growing grid storage and EV demand in China.

Phase-by-phase build and product mix

NETC will invest 9bn yuan to build the facility. The first phase installs four LFP lines for energy storage cells. Two lines are 314Ah, and two lines are 30Ah. Further details for later phases were not disclosed. The staged approach limits execution risk and enables faster revenue.

China’s LFP dominance and NETC’s footprint

China produced 831.1 GWh of batteries in January–July. LFP held 79% of Chinese output over that period. LFP also neared half of global EV batteries in 2024. NETC is expanding on multiple fronts to ride this trend. It is building a 10 GWh plant in Anqing. It is also constructing a 21 GWh plant in Chuzhou. Seven GWh of the Chuzhou capacity is already online.

The Metalnomist Commentary

NETC’s Lanzhou build strengthens western China’s battery corridor. The cell formats signal a storage-led ramp, with automotive optionality. Watch procurement for lithium salts, iron phosphate, and copper foil as lines come online.

US Turkey LFP Battery Partnership Targets 7GWh Production by 2027

Our Next Energy

US Turkey LFP battery partnership emerged as Our Next Energy (ONE) contracted Turkish manufacturer Pomega Energy Storage Technologies to produce 7GWh of lithium iron phosphate battery cells. The strategic US Turkey LFP battery collaboration targets 2GWh production in 2026 escalating to 5GWh in 2027, supporting ONE's energy storage solutions for utility, commercial, and industrial customers while bridging manufacturing capacity before domestic US production commences.

Strategic Manufacturing Timeline Bridges International and Domestic Production

US Turkey LFP battery production will focus on ONE's 314Ah LFP battery cells manufactured at Pomega's Ankara facility. The Turkish facility maintains 3GWh installed capacity and currently undergoes qualification for global export markets. This partnership provides immediate manufacturing access while ONE develops its Michigan-based grid battery production line scheduled for 2027 operations.

Meanwhile, the collaboration enables ONE to meet near-term customer demands without delayed market entry. Founder and CEO Mujeeb Ijaz emphasized the partnership's role in supporting customer commitments during the transition to US-based manufacturing capabilities. The phased approach reduces market risks while ensuring continuous supply chain operations across international and domestic facilities.

Turkish Manufacturing Hub Supports Global Battery Supply Chains

However, Pomega's Ankara facility represents Turkey's growing position in global battery manufacturing ecosystems. The facility's 3GWh capacity and export qualification process demonstrate Turkish manufacturing capabilities in advanced energy storage technologies. Turkey's strategic geographic position provides advantageous access to European, Middle Eastern, and Asian markets for battery exports.

Therefore, the partnership leverages Turkey's industrial infrastructure while supporting ONE's expansion strategy across utility-scale energy storage markets. Turkish manufacturing costs and skilled workforce availability create competitive advantages for large-scale battery production. The collaboration also strengthens US-Turkey commercial relationships in critical technology sectors driving clean energy transitions.

Market Positioning for Utility-Scale Energy Storage Growth

Furthermore, the LFP battery production targets utility, commercial, and industrial energy storage applications experiencing rapid market expansion. Lithium iron phosphate technology offers safety and cost advantages compared to alternative battery chemistries, particularly for large-scale stationary storage installations. The 314Ah cell specification aligns with industry requirements for grid-scale energy storage systems.

As a result, ONE's dual-facility strategy positions the company competitively across North American and international markets during the critical 2026-2027 period. The Turkish production capacity provides flexibility while Michigan facility development progresses, ensuring market presence during peak demand growth. This geographic diversification reduces supply chain risks while maximizing market opportunities across multiple regions.

The Metalnomist Commentary

ONE's partnership with Turkish manufacturer Pomega exemplifies how US battery companies strategically leverage international manufacturing partnerships to bridge capacity gaps before domestic production scaling, particularly important as global LFP demand accelerates faster than domestic manufacturing development. The collaboration demonstrates Turkey's emerging role as a strategic manufacturing hub for critical battery technologies, positioning the country advantageously within global energy storage supply chains serving both European and American markets.

Ultium LFP battery production in Tennessee to expand GM’s EV portfolio

Ultium Cells

Ultium LFP battery production in Tennessee will start by late 2027. GM and LG Energy Solution will convert lines at Spring Hill. Ultium LFP battery production in Tennessee will lower costs for mass-market EVs. The shift complements high-nickel and future lithium-manganese chemistries.

Capacity strategy and plant network

Ultium’s Ohio plant will keep making NCMA cells for long-range crossovers. GM and Samsung SDI are building a 36 GWh plant in Indiana. Mass production there targets 2027. Together, these sites diversify chemistries and sourcing. Ultium LFP battery production in Tennessee strengthens North American cell optionality.

Market outlook and supply chain integration

U.S. incentives favor localized cells and materials. GM sold 78,200 EVs in the first half. Its estimated EV share reached about 13 percent. GM sources lithium carbonate from Thacker Pass and CAM via POSCO Future M. Ultium LFP battery production in Tennessee will fit this integrated ecosystem. The Lansing stake sale to LGES sharpened capital focus.

The Metalnomist Commentary

GM is pragmatically adding lower-cost LFP alongside premium chemistries. Execution hinges on line conversion, yield ramp, and firm offtake. Watch IRA eligibility, precursor sourcing, and fleet demand into 2027.

Falling Battery Costs Drive Longer Duration Energy Storage Expansion

CERAWeek

Shift to LFP chemistry and falling raw material prices boost two-hour-plus BESS projects, but SoC accuracy remains a hurdle.

Lower Battery Costs Accelerate BESS Deployment

Lower battery prices are transforming the energy storage market by enabling more battery energy storage systems (BESS) with longer durations, according to experts at the CERAWeek by S&P Global conference in Houston. Charlotte Johnson, general manager of InfraFlex (a Kraken unit), stated, "Lower prices have accelerated the deployment of BESS of two hours and more, rather than the one-hour systems."

Battery cells represent about 50% of total project costs, while the remainder goes to labor, operations, and maintenance. As battery cell costs fall, project developers are increasingly building longer-duration BESS to meet grid flexibility and renewable integration needs.

LFP Batteries Drive Cost Cuts but Add Challenges

The price drop stems largely from falling battery raw material costs and a rapid shift to lithium iron phosphate (LFP) battery chemistry. LFP cells are cheaper and more stable than nickel-based alternatives, making them ideal for utility-scale BESS projects.

However, panelists warned of a drawback: LFP systems have less predictable state of charge (SoC) behavior. Inaccurate SoC readings complicate real-time optimization and revenue maximization for grid operators and energy traders.

Outlook: Market Growth Continues Amid Technical Hurdles

While SoC monitoring remains a challenge, the economic advantages of LFP and longer-duration storage outweigh the downsides for now. Developers and technology providers are focusing on improving SoC management tools and software to unlock greater value from low-cost, longer-duration systems.

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.

LMFP CAM plant expansion accelerates as Hengchuang Nami commits 130,000 t/yr in China

NAMI

Hengchuang Nami will build a 130,000 t/yr LMFP CAM plant in Yinchuan, China. The LMFP CAM plant will be built in two phases inside the Yinchuan Economic Development Zone. The first phase targets 25,000 t/yr of LMFP output. The company has committed 4.8bn yuan to the LMFP CAM plant, but it has not shared a start-up date.

Hengchuang Nami has scaled LMFP output rapidly since it formed in February 2022. The company launched a 5,000 t/yr LMFP line at the end of 2022. Meanwhile, it began large-scale LMFP production in March 2023. It expanded capacity to 15,000 t/yr by the end of 2023. The company also started building a 30,000 t/yr LMFP CAM plant in Yancheng in 2024. That Yancheng project targets production by the end of 2026.

Why LMFP demand is rising across China’s battery supply chain

LMFP cathode materials raise energy density compared with standard LFP chemistry. As a result, cell makers can improve range without moving to high-nickel designs. However, LMFP chemistry often trades cycle life and power performance versus LFP. Battery makers will likely deploy LMFP in segments that value range and cost balance. Therefore, cathode producers are racing to qualify consistent LMFP performance at scale.

Chinese producers are also expanding competing LMFP and manganese-based capacity across regions. Large LFP suppliers are building LMFP lines to protect customer relationships. Meanwhile, newer entrants are using scale to compete on cost and delivery reliability. This expansion wave will intensify price competition in the next procurement cycle.

What a 130,000 t/yr build means for inputs and market competition

A larger LMFP CAM plant will tighten coordination across manganese, phosphate, iron, and lithium inputs. Producers will need stable precursor supply and strict impurity control to meet cell specifications. As a result, buyers will likely demand tighter quality documentation and faster sampling cycles. The Yinchuan project could also strengthen inland battery materials clusters with supportive logistics and energy availability.

The broader risk is simple and immediate. New nameplate capacity can outpace real consumption if EV and storage demand slows. However, scale leaders can still win by lowering unit costs and improving consistency. Therefore, execution speed and customer qualification will decide who captures long-term contracts.

The Metalnomist Commentary

This LMFP CAM plant signals a shift from pilot volumes to industrial competition. However, the market will punish inconsistent quality and weak cost control. The strongest producers will lock inputs and deliver stable electrochemical performance.

LGES Exits Indonesia EV Battery Project Amid Strategic Shift

LGES

LGES exits Indonesia EV project

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

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

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

Strategic Refocus on Core Ventures and Energy Storage

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

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

Indonesia Presence Maintained Through LFP and JV Assets

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

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

The Metalnomist Commentary

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

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.

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

XTC

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

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

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

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

China CAM feedstock integration deepens links with global battery OEMs

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

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

The Metalnomist Commentary

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

Nickel surplus to widen through 2026: INSG outlook for miners and metals markets

INSG(

The nickel surplus to widen through 2026 is reshaping expectations for miners, traders and stainless producers worldwide. According to the latest INSG forecast, the nickel surplus to widen through 2026 will see production consistently outpace usage, even as global economic activity proves more resilient than expected. As a result, the nickel surplus to widen through 2026 is set to reach 209,000t in 2025 and 261,000t in 2026, with primary output rising to 3.81mn t this year and 4.09mn t in 2026 against usage of 3.6mn t and 3.82mn t.

Stainless demand supports nickel, but batteries lose momentum

Nickel demand remains supported by stainless steel, but battery growth has clearly cooled. Higher stainless steel output continues to underpin core nickel usage, particularly in Asia and Europe. However, battery demand has slowed as automakers and cell producers shift towards non-nickel chemistries such as LFP and accelerate plug-in hybrids over pure battery electric vehicles. Therefore, the high-growth battery narrative has softened, easing pressure on high-purity nickel sulphate demand.

Meanwhile, this demand shift is forcing producers and investors to reassess project pipelines focused on battery-grade nickel. Margins are under strain where costs are high and product mixes are heavily exposed to the EV segment. In this environment, stainless steel remains the anchor sector, but it cannot fully absorb the excess tonnes entering the system. This imbalance feeds directly into the widening surplus and keeps a lid on any sustained price rally.

Indonesia drives supply growth as others retrench

On the supply side, Indonesia remains the dominant driver despite tighter regulatory control. The government has delayed permit approvals, seized non-compliant land and punished firms that fail reclamation duties. However, the INSG believes these interventions have only created temporary disruptions, with overall Indonesian nickel output still expected to increase through 2026. This continued expansion reinforces the structural surplus and raises competitive pressure on higher-cost regions.

Outside Indonesia, weaker profitability has already forced several producers to scale back or suspend operations. In China, the shift from nickel pig iron towards more refined cathode output is forecast to continue as the industry optimises for flexibility and value. Nickel sulphate production is expected to ease in 2025 as battery demand softens, before recovering in 2026 when market conditions stabilise. For now, prices remain trapped between steady stainless demand and a widely recognised surplus in exchange-traded Class 1 inventories, with three-month nickel recently trading near $15,480/t.

Financial conditions are improving, with global inflation forecast to decline across most G20 economies by 2026. Even so, the INSG warns that tariffs and trade measures could offset some macro tailwinds by adding friction to investment decisions, supply chains and downstream demand growth. If policy risk rises, it may delay project sanctions and accelerate closures at the margin, but the current surplus path remains firmly in place.

The Metalnomist Commentary

The INSG nickel surplus outlook underscores a market where supply discipline lags structural investment made during the last bull cycle. For producers, cost reduction, product differentiation and downstream partnerships will be critical to survive a prolonged surplus. For consumers in stainless and batteries, the coming years offer a rare window to secure long-term nickel units on favourable terms before the next demand wave arrives.

SNEP lithium salts plant starts production to meet China’s EV battery demand

Sichuan New Energy Power

SNEP lithium salts plant has begun production in Sichuan to supply battery makers. The SNEP lithium salts plant adds 30,000 t/yr of battery-grade capacity. As a result, the SNEP lithium salts plant strengthens China’s lithium supply chain.

Capacity, products, and partners

SNEP commissioned its Mianzhu facility with 30,000 t/yr nameplate capacity. The plant will produce 15,000 t/yr lithium carbonate and 15,000 t/yr lithium hydroxide. The project cost Yn1.49bn and moved from build to product launch in 16 months. Eve Energy and Svolt each hold 24.5pc, aligning offtake with leading cell makers. SNEP retains a 51pc operating stake to anchor strategy and quality.

Upstream integration and market context

SNEP advances vertical integration through the Lijiagou spodumene project. That mine targets 180,000 t/yr of concentrate once ramped. Meanwhile, SNEP’s Dingsheng unit adds 15,000 t/yr salts capacity in Sichuan. China’s EV and storage sectors keep expanding, supporting lithium demand. However, price volatility persists as new supply enters the market.

Rising domestic capacity aids cost control and security of supply. Battery-grade hydroxide supports high-nickel chemistries for long-range EVs. Carbonate supports LFP cells for mass-market cars and stationary storage. Therefore, diversified output improves resilience across chemistries. Rapid commissioning also signals improving Chinese processing know-how.

The Metalnomist Commentary

This commissioning tightens links between upstream spodumene and downstream cathode supply. Watch ramp efficiency, product qualifications, and offtake pacing into 2025. If Lijiagou stabilizes, SNEP could hedge input risk and sustain margins across cycles.

Electra tests North American cobalt feedstock to advance regional refining

Electra Battery Materials

Pilot work begins on domestic supply

Electra tests North American cobalt feedstock to strengthen a regional battery supply chain. The company evaluates concentrates at its Ontario laboratory. Preliminary results for the hydrometallurgical route are expected by year end. Electra tests North American cobalt feedstock while validating domestic ores alongside existing import contracts.

Electra tests North American cobalt feedstock from Ontario and Idaho

Electra sourced material from Ontario’s historic Cobalt Camp and Idaho’s Iron Creek. The team studies impurity profiles and leach kinetics. As a result, process adjustments can optimize cobalt sulfate quality for cathode makers. The company secured a decade-long exploration permit covering Iron Creek and nearby ground.

Electra continues to progress its cobalt sulfate refinery financing. The firm received $20mn from the US Department of Defense. An additional $20mn from a private partner complements the package. In March, Electra raised $3.1mn in equity to support the buildout. These funds back engineering, commissioning, and feedstock testing.

The program aims to reduce reliance on overseas intermediates. Domestic feedstock improves traceability and ESG credentials. Meanwhile, hydrometallurgy can lower carbon intensity versus pyrometallurgy. Successful trials could anchor long-term offtake for North American gigafactories. The project targets scalable cobalt sulfate for high-nickel and LFP blends.

The Metalnomist Commentary

Electra’s lab program matters because conversion capacity, not ore, often bottlenecks cobalt supply. If the tests confirm consistent sulfate quality, North American cell makers gain a shorter, de-risked route. Watch impurity management, reagent costs, and by-product credits, which will shape refinery margins.