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.

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.

PLS Lithium Phosphate Offtake Signals Shift Toward Midstream Battery Materials

PLS Lithium

PLS lithium phosphate offtake with China’s Ningbo Ronbay New Energy Technology marks a strategic step by the Australian lithium producer into higher-value battery materials. The agreement covers lithium phosphate from PLS’ midstream lithium refining demonstration plant.

PLS lithium phosphate offtake gives the company an early customer pathway as it tests whether spodumene can be converted into an intermediate chemical product with broader downstream appeal. The plant is scheduled to deliver first product in the third quarter of 2026.

PLS lithium phosphate offtake also links the company directly with Ronbay, one of the world’s largest lithium iron phosphate cathode material producers. Ronbay will provide technical support as PLS works to optimise product quality and specification.

The agreement’s price and volume details were not disclosed. But the pricing structure will broadly reference lithium chemical prices, with a proportional mechanism similar to spodumene pricing.

Lithium Phosphate Could Shorten the LFP Supply Chain

PLS’ demonstration plant is designed to produce more than 3,000 t/yr of lithium phosphate. It will consume about 27,000 t/yr of spodumene.

The company took full ownership of the plant from former joint-venture partner Calix in February. That gives PLS more control over the development route as it moves beyond conventional lithium concentrate sales.

The strategic importance lies in the possible use of lithium phosphate as a direct feedstock for LFP cathode production. Some LFP cathode producers are testing lithium phosphate instead of lithium carbonate because it could shorten processing steps and reduce total production costs.

This matters because LFP batteries are gaining share in electric vehicles and energy storage systems. Cathode producers want lower-cost, reliable and scalable lithium inputs that can support high-volume manufacturing.

If lithium phosphate can meet strict cathode specifications, PLS could access a new customer base. Instead of selling only to lithium hydroxide or carbonate converters, it could sell directly into cathode material supply chains.

That would move PLS closer to battery manufacturers and allow it to capture more margin inside the lithium value chain.

Quality Testing Will Determine Commercial Potential

The opportunity remains at an early stage. PLS has warned that lithium phosphate must meet demanding quality requirements before it can become a commercial cathode feedstock.

Battery material customers require tight control over impurities, consistency, particle characteristics and chemical performance. A product that works technically at small scale must still prove reliability across repeated production.

Ronbay’s role is therefore important. As a major LFP cathode producer, it can provide practical feedback on product suitability, processing performance and downstream qualification needs.

The agreement also reflects a broader trend in lithium markets. Producers are no longer focused only on mining and concentrate production. They are looking for midstream products that can reduce processing complexity and improve customer access.

For PLS, lithium phosphate could serve multiple markets. It may supply existing lithium chemical producers, while also opening a direct route to cathode manufacturers.

The demonstration plant will test whether that strategy can move from concept to commercial scale. If successful, it could give spodumene producers a new pathway into battery materials without fully entering carbonate or hydroxide production.

The Metalnomist Commentary

PLS’ lithium phosphate strategy is a clear attempt to move higher in the battery value chain without jumping directly into full chemical conversion. The key test will be whether cathode makers accept lithium phosphate as a reliable feedstock at scale, not just as a technical possibility.

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.

Yuneng to Expand LFP and LMFP Cathode Capacity to Meet Battery Market Growth

Yuneng

$899 Million Investment Targets Higher Energy Density Materials

Hunan Yuneng, China’s largest lithium iron phosphate (LFP) cathode active material producer, will significantly expand production capacity to serve surging demand in the lithium-ion battery sector. The company plans to raise 4.8bn yuan ($899mn) for a new project producing 320,000 t/yr of lithium manganese iron phosphate (LMFP), 75,000 t/yr of ultra-long cycle LFP, and 100,000 t/yr of iron phosphate feedstock.

The LMFP line, located in Anning, Yunnan province, will also be able to produce LFP. Yuneng expects construction to finish within four years. Meanwhile, the ultra-long cycle LFP and iron phosphate plants in Fuquan, Guizhou province, will be built within 12 months, strengthening the company’s diversified product portfolio.

Performance Advantages and Market Competition

LMFP cathodes provide higher energy density, longer driving ranges for EVs, better winter performance, and lower manufacturing costs than standard LFP. However, they have shorter life cycles and weaker charge-discharge capacity. Major players such as CATL, BYD, and Eve Energy are also investing in LMFP technology, intensifying competition in the high-performance cathode market.

Yuneng achieved 101% LFP capacity utilization in 2024, producing 735,462t—up 46% from 2023. Sales reached 710,565t, with 41% directed to the energy storage sector. LFP batteries continue to dominate China’s lithium-ion battery market, holding an 80% production share from January to April 2024, far exceeding the share of ternary chemistries such as NCA/NCM.

Strategic Outlook for Cathode Materials Expansion

By expanding LFP and LMFP output, Yuneng positions itself to capture additional market share as both EV adoption and energy storage demand accelerate. The cost advantage of LFP remains a key factor in China’s battery market dominance, while LMFP technology offers potential for premium applications once lifecycle limitations are addressed.

The Metalnomist Commentary

Yuneng’s investment demonstrates how Chinese cathode producers are racing to scale capacity in response to both domestic and global demand. While LFP will remain the dominant chemistry in China’s battery market, LMFP could emerge as a niche solution for applications requiring higher energy density—if manufacturers can resolve its durability challenges.

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.

Easpring CAM output surges as energy storage demand accelerates

Easpring

Easpring CAM output more than doubled in the first half of 2025. The surge reflects strong downstream demand across EVs and stationary storage. Easpring CAM output reached 73,133t, up from 35,955t a year earlier. Revenue rose 25pc to Yn4.432bn, while net profit increased 8.5pc to Yn311mn. The firm now supplies NCM, LFP and LCO, with LFP adoption boosting volumes.

Capacity expansion underpins growth and Europe strategy

Easpring CAM output is supported by new LFP capacity in Sichuan. The first 40,000 t/yr phase started in 2024, with another 90,000 t/yr due by end-2025. The company is also building a CAM plant in Kotka, Finland, to serve European customers. As a result, market participants expect total output to exceed 150,000t in 2025.

Tier-one partnerships deepen order visibility

Easpring strengthened its position with global battery leaders. Partners include SK On, LGES, Samsung SDI, Murata, BYD, EVE Energy and CALB. In March, Easpring agreed to supply 110,000t of ternary CAM to LGES over 2025-27. Meanwhile, LFP demand from energy storage systems continues to expand order books. Therefore, scale and product breadth support multi-region shipments.

The Metalnomist Commentary

LFP’s momentum in grid and behind-the-meter storage is reshaping CAM mix and margin profiles. Watch how European localization in Finland interacts with IRA-style policies and OEM qualification cycles. If LFP pricing stabilizes, Easpring’s volume leverage could outweigh modest unit margins.

LB Titanium Dioxide Output Falls as Sponge and Battery Materials Expand

LB Titanium

LB titanium dioxide output fell in 2025 as weaker prices, slower demand and rising trade barriers pressured the global pigment market. China’s largest titanium producer reported titanium dioxide production of 1.28mn t, down 1.5% from a year earlier.

LB titanium dioxide output declined even as sales edged higher to 1.26mn t. Domestic sales accounted for 45% of volumes, while international sales made up 55%, showing that overseas markets remain critical to the company’s TiO2 business.

LB titanium dioxide output came under pressure from structural oversupply. New capacity entered the market, prices weakened and several domestic producers cut operating rates to protect margins.

The company also pointed to anti-dumping duties imposed by the EU, Brazil, Saudi Arabia and the Eurasian Economic Union, along with higher US tariffs on Chinese material. These measures have fragmented trade flows and made the global titanium dioxide market more difficult for Chinese exporters.

Titanium Sponge Offers a Stronger Counterweight

LB’s titanium sponge business moved in the opposite direction. Titanium sponge output rose by 2.3% on the year to 71,300t, while sales increased by 0.9% to 67,500t.

The stronger sponge result matters because titanium sponge sits closer to aerospace, industrial titanium mill products and high-performance alloy supply chains. It gives LB a more diversified titanium platform beyond pigment markets.

Titanium sponge prices were also firmer. Domestic 99.7% grade sponge prices averaged 49,665 yuan/t ex-works in 2025, up from 48,270 yuan/t a year earlier.

LB has 80,000 t/yr of titanium sponge capacity, the largest globally. That scale gives the company a major position in a market where feedstock security, product quality and downstream demand from titanium processors remain strategically important.

Titanium concentrate output fell by 3% to 1.45mn t, but LB did not sell concentrate externally. All concentrate was consumed internally to produce titanium dioxide and titanium sponge.

This internal use highlights the company’s integrated titanium value chain. LB can direct feedstock toward different downstream products depending on market conditions, although weak TiO2 demand still affects overall profitability.

Iron ore concentrate output fell more sharply, dropping by 18% to 3.04mn t. Sales decreased by 2.1% to 2.94mn t, showing softer performance in another mineral by-product stream.

Iron Phosphate Growth Signals Battery Materials Diversification

LB’s battery materials business showed much stronger momentum. Iron phosphate output jumped by 72% to 97,600t, while sales rose by 59% to 96,000t.

The growth was driven by firm demand from the lithium-ion battery sector. Iron phosphate is a key precursor for lithium iron phosphate cathode materials, which are widely used in electric vehicles and energy storage systems.

This diversification is strategically important. Titanium dioxide remains LB’s largest product line, but the pigment market is facing oversupply, trade restrictions and weaker pricing. Battery materials offer a different growth channel tied to China’s expanding LFP ecosystem.

LB has 100,000 t/yr of iron phosphate capacity and 50,000 t/yr of LFP capacity. It also has 25,000 t/yr of graphite anode capacity and 50,000 t/yr of graphitisation capacity.

That product base positions LB across titanium, zirconium and battery materials. The company is no longer only a titanium dioxide producer, even though it remains the world’s largest TiO2 producer with 1.51mn t/yr of capacity.

The 2025 results show a clear split in the business. Titanium dioxide is under pressure from oversupply and trade action. Titanium sponge is holding stronger. Iron phosphate is growing with battery demand.

For LB, the industrial challenge is to manage a mature pigment business while expanding higher-growth materials platforms. Its integrated mineral base gives it flexibility, but market conditions across TiO2, sponge and battery materials are moving in different directions.

The Metalnomist Commentary

LB’s results show how Chinese titanium producers are moving beyond pigment exposure into sponge and battery materials. The strategic value lies in feedstock integration, because companies that can shift internal mineral flows between TiO2, titanium sponge and battery precursors will be better positioned in volatile markets.

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.

Minmetals New Energy Secures Nickel Supply Through Strategic Investment in Jinchuan Nickel and Cobalt

Minmetals New Energy

In a strategic move to secure a steady supply of essential nickel raw materials, China's Minmetals New Energy (MNE) has committed to investing 500 million yuan ($69 million) in Jinchuan Nickel and Cobalt (JNC). This investment will support MNE’s growing production needs in a rapidly evolving battery materials market.

Investment Details and Supply Agreement

MNE will acquire newly issued equities in JNC, a subsidiary of the major diversified metals producer, Jinchuan Group, as announced on December 11. The exact number of shares acquired remains undisclosed. Under the terms of the agreement, JNC will supply MNE with at least 200 tons per month, but no more than 12,000 tons per year, of nickel metal equivalent in nickel sulphate form.

Expanding Capacities and Market Impact

MNE, based in Changshan, Hunan province, boasts a significant production capacity that includes 120,000 tons per year of nickel-cobalt-manganese (NCM), 60,000 tons per year of lithium-iron-phosphate (LFP), 30,000 tons per year of NCM precursor, and 5,000 tons per year in waste battery recycling. The company reported a substantial increase in its LFP product shipments from June to September, with approximately 6,000 tons shipped, marking a significant rise from the previous quarter.

Jinchuan Group has been enhancing its production capacities to meet the burgeoning demand for battery materials. It initiated production at its nickel salts facility in 2018 with a capacity of 100,000 tons per year and expanded by an additional 100,000 tons in 2022. Furthermore, Jinchuan is constructing another nickel sulphate plant in Gansu province, anticipated to eventually contribute an additional 280,000 tons per year to its total output, reinforcing its position as a pivotal player in the nickel market.

China Vanadium Consumption Set to Rise in 2026 as VRFB Demand Accelerates

Vanadium

China vanadium consumption is expected to rise in 2026 as vanadium redox flow batteries, steelmaking, lithium iron phosphate cathode materials and denitration catalysts increase demand. The strongest growth is likely to come from VRFB-based energy storage, where projects are entering a more concentrated construction and commissioning phase.

China vanadium consumption reached 125,900t of vanadium pentoxide equivalent in 2025, up 6.1% from 2024. The market is now shifting from a steel-dominated structure toward a more diversified demand base.

China vanadium consumption still depends heavily on steel, but the share of energy storage has expanded quickly. Steel accounted for 70.9% of total demand in 2025, down from 87.9% in 2021. Energy storage rose to 20% of total use from only 4% over the same period.

This change is strategically important for vanadium producers. Demand is no longer driven only by construction steel, rebar and alloy additions. It is increasingly tied to long-duration energy storage, grid stability, batteries, catalysts and higher-value industrial applications.

VRFB Storage and Steel Demand Drive the 2026 Consumption Outlook

Vanadium demand from VRFB energy storage is expected to increase sharply in the second half of 2026. China’s National Development and Reform Commission and National Energy Administration issued a notice on 30 January to improve the generation-side capacity price mechanism, supporting longer-duration storage.

This policy direction matters because VRFB technology is better suited to long-duration applications than many short-duration battery systems. VRFBs offer long cycle life, high safety, deep-discharge capability and easier electrolyte reuse.

China’s VRFB installations in 2026 are preliminarily estimated at 4-5GWh. This forecast reflects projects already under construction and the availability of high-purity vanadium for electrolyte production.

That installation level would require around 32,000-40,000t of V2O5 equivalent. This would represent an increase of 8,000-16,000t from the previous year, making VRFBs the largest source of incremental vanadium demand.

The growth builds on rapid progress in 2025. VRFB projects with completed electrolyte filling totalled about 3,037.5MWh last year, up 1,027.3MWh from 2024. China’s cumulative VRFB installed capacity reached about 6,064.5MWh by the end of 2025, with an average duration of 4.12 hours.

The market is now moving from pilot-stage expansion to larger system deployment. As more long-duration storage projects reach construction and commissioning, vanadium electrolyte demand could become more predictable.

Steel remains the largest end-use sector. Vanadium demand from China’s steel industry is expected at 92,000-95,000t in 2026, up 3,000-6,000t from 2025.

The increase is tied to stronger demand from machinery, energy, shipbuilding, automotive and rail sectors. These ferro-vanadium end-use segments are expected to grow by around 1.2% in 2026.

The steel demand signal was already visible in the first quarter. Steel-sector vanadium consumption reached around 22,600t, up 1,800t from a year earlier.

Rebar could also provide support. Output of higher-grade steel reinforcement bar is expected to rise as infrastructure investment accelerates. Production licence rules for construction rebar took effect on 1 April, while quality traceability requirements have expanded.

These rules should raise the share of vanadium-nitrogen micro-alloyed hot-rolled rebar. That would support demand for vanadium-nitrogen alloy, especially in higher-strength construction products.

The 2025 steel data show a more complicated picture. Vanadium consumption in the steel sector reached around 89,300t, up 1,700t from 2024. However, vanadium-nitrogen alloy consumption fell by 3.8% to 36,690t because rebar’s share of vanadium use declined.

China’s rebar output fell to 186.3mn t in 2025, down 4.5% from a year earlier. This reduced vanadium demand from traditional construction steel.

Ferro-vanadium performed better. FeV50-equivalent consumption rose by 10.4% to around 39,985t, supported by stronger downstream output in several industrial sectors.

Automotive production reached 34.778mn units in 2025, up 9.8%. Civil steel shipbuilding totalled 52.295mn deadweight tonnes, up 18%. Excavator output rose by 17% to 379,643 units.

Machine tool output also increased. Metal-cutting machine tool production rose by 9.7%, while metal-forming machine tool output increased by 7.2%. These sectors helped offset weakness in rebar.

Vanadium intensity also rose. China’s vanadium use per tonne of crude steel increased to 51g of vanadium metal equivalent in 2025 from 48g in 2024. Rebar intensity edged up to 152.5g, while other steel products rose to 26.6g.

LFP cathode materials will provide another smaller but fast-growing demand source. Vanadium consumption from LFP cathodes is estimated at 2,000-2,500t in 2026, assuming a typical 0.2% V2O5 addition rate.

That would be up by 1,000-1,500t, representing growth of 100-150%. The base remains small, but the rate of increase is significant.

Denitration catalysts should also support demand. Chemical-sector vanadium consumption is expected at around 7,000t in 2026, up about 500t, or 7.7%. Demand will be supported by catalyst replacement, new coal-based thermal power projects and higher sulphuric acid output.

In 2025, chemical-sector vanadium use was around 6,500t, up 200t from 2024. Titanium-alloy-related consumption fell by around 400t, tracking weaker Chinese titanium product exports.

Supply Growth Remains Limited by Feedstock and Cost Pressure

China’s vanadium supply remains highly concentrated, but output growth is not straightforward. The country accounted for 68.8% of global vanadium capacity in 2025 and 72.4% of global production.

China’s total vanadium capacity reached 277,600t in 2025. Actual output was 163,900t, down 900t from 2024.

The production base is dominated by vanadium slag. Output from vanadium slag reached 141,300t in 2025, broadly unchanged from the previous year.

Some producers reduced supply. Xinjiang Da’an and Yunnan Yukun did not produce, cutting combined output by about 8,000t. Other producers, including Chengsteel, Desheng and Dagang, raised output by around 15%, offsetting part of the loss.

Stone-coal-based vanadium output fell more sharply. Production declined to 7,600t in 2025, down 2,600t from 2024, as lower prices left all stone-coal producers loss-making.

This route remains highly price-sensitive. At current price levels, only one large-scale stone-coal producer is operating, with output of around 100-120 t/month of ammonium metavanadate on a V2O5-equivalent basis.

A Shaanxi-based producer with capacity of 300-350 t/month has been suspended since early 2026 because of safety issues. It is unlikely to restart in the first half.

Vanadium flake prices rose to 83,000-84,000 yuan/t in March, prompting some stone-coal producers to consider restarts. However, current prices still appear insufficient to drive a large supply response.

Even when prices approached 110,000 yuan/t in 2023, stone-coal-based output only reached about 11,000t. This suggests that 2026 output growth from stone coal will likely remain limited.

Secondary resources are becoming more important. Vanadium output from spent catalysts and other secondary sources rose to 15,100t in 2025, up 1,900t from 2024.

This included about 6,700t from alumina by-product recovery, up around 1,700t. Output from spent catalysts and petroleum residues stayed broadly stable despite lower vanadium prices.

The reason is co-product economics. Vanadium is often recovered alongside molybdenum and tungsten from secondary feedstocks. Higher molybdenum and tungsten prices supported operating rates and helped keep secondary recovery viable.

Secondary output is expected to remain broadly unchanged in 2026. Feedstock availability is relatively stable, but China’s restrictions on solid-waste imports since 2017 limit the potential for major raw material growth.

Vanadium slag-based supply may edge higher in 2026, but feedstock constraints create uncertainty. Qinhuangdao Baigong completed a 10,000 t/yr V2O5 line in early 2026 and is ramping toward normal operations. Its 2026 output guidance is around 5,000t.

However, tighter domestic feedstock availability could offset this addition. Vanadium-titanium magnetite supply in the Panzhihua area is particularly constrained, potentially cutting output by about 4,500-5,000t of V2O5 equivalent.

Producers in Sichuan and Yunnan may need to source vanadium-titanium magnetite from the Chengde area or increase imports to keep output in line with 2025. A northeastern steelmaking-based vanadium producer has also reduced vanadium-titanium magnetite imports since December 2025.

This creates a cautious supply outlook. China’s vanadium output may edge higher in 2026, but the increase depends on whether new slag-based capacity can offset feedstock tightness and further weakness in stone-coal production.

The market therefore faces a potential demand-led tightening risk. VRFB demand is rising quickly, steel demand is improving modestly and smaller sectors are growing. Supply growth, meanwhile, remains constrained by feedstock, cost pressure and limited secondary resource availability.

For vanadium producers, the key opportunity lies in high-purity electrolyte-grade material. VRFB demand requires reliable vanadium quality, stable supply and long-term availability. Producers that can supply battery-grade vanadium will be better positioned than those focused only on metallurgical demand.

For steel users, the issue is price exposure. If VRFB demand absorbs more vanadium units, ferro-vanadium and vanadium-nitrogen alloy buyers could face stronger competition from the energy storage sector.

For energy storage developers, the issue is raw material security. VRFB growth depends on enough high-purity vanadium to support electrolyte production. Supply constraints could affect project economics if demand accelerates faster than conversion capacity.

The Metalnomist Commentary

China’s vanadium market is entering a new phase where steel remains the base, but VRFBs set the growth direction. The strategic tension in 2026 will be whether constrained supply can keep pace with energy storage demand without pricing steel users out of the market.

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.

Intensifying Battery Competition in Asia Amid Evolving Market Dynamics

EV Battery

The Race for Dominance in the Lithium Iron Phosphate Battery Market

The competition among major battery producers, particularly between China and South Korea, is set to intensify in 2025. South Korean giants like LG Energy Solution (LGES), Samsung SDI, and SK On are aggressively pursuing mass production of lithium iron phosphate (LFP) batteries, a domain where Chinese manufacturers have traditionally excelled. These South Korean firms are targeting a mass production rollout by the latter half of 2025, aimed primarily at the electric vehicle (EV) market.

Strategic Market Expansion

South Korean battery manufacturers are not just competing on the product level; they are also strategically targeting markets in the US and Europe, regions where their Chinese competitors have been less successful. This move is particularly strategic given the recent failure of Northvolt in Europe, which previously held a significant share of the European battery production capacity. The potential rollback of the US Inflation Reduction Act (IRA) tax credits, however, poses a financial threat to these South Korean firms, particularly with the upcoming changes anticipated under the administration of US president-elect Donald Trump.

Challenges and Opportunities in Other Regions

Australia, on the other hand, is focusing on niche areas such as "stationary storage" battery production, despite facing significant challenges in its mining sectors, especially with nickel and lithium. The downturn in these industries has led to major setbacks, such as the closure of the Bald Hill site by Mineral Resources, prompting government intervention.

In Southeast Asia, countries like Indonesia and the Philippines are making notable advances. Indonesia, in collaboration with LGES and Hyundai Motor, has already commenced operations at a new battery production facility, while the Philippines has launched its first LFP battery plant, which began operations in October with the support of Australian investment firm StB Capital Partners.

Ford BESS market entry accelerates after $19.5bn Ford EV write-down

Ford BESS

Ford BESS market entry is now central to Ford Motor’s updated electrification strategy. The automaker launched a battery energy storage systems unit as it prepares a Ford EV write-down totaling $19.5bn. As a result, Ford is repositioning capital toward grid infrastructure and data center demand.

Ford said weak demand and high costs pushed it to shelve plans for large EVs. However, the company still targets a more electrified fleet mix by 2030. Therefore, Ford BESS market entry signals a pivot toward returns that look steadier than passenger EV margins.

Ford battery energy storage systems business targets data centers and grids

Ford battery energy storage systems business will lean on lithium-iron-phosphate technology. Ford will also use its wholly owned plants in Kentucky and Michigan. Meanwhile, the company aims to serve energy infrastructure upgrades and expanding data center loads.

Ford plans to begin shipping BESS products in 2027. The company expects annual capacity to reach 20GWh. As a result, Ford battery energy storage systems business could become a meaningful industrial demand driver for LFP inputs and power electronics.

EV strategy resets around hybrids and EREVs

Ford widened its EV definition to include hybrids, EREVs, and BEVs. An EREV uses a gasoline engine to recharge the battery, not drive the wheels. Therefore, EREVs can extend range without frequent plug-in charging.

Ford expects electrified vehicles to represent about 50% of global production by 2030. That compares with roughly 17% today. Meanwhile, Ford EV write-down reflects how quickly automakers must reassess platform bets when demand softens.

Ford also ended production of the current-generation F-150 Lightning. The company now plans to adopt EREV architecture for the next generation. As a result, Ford aligns product planning with consumer range expectations and cost discipline.

The Metalnomist Commentary

This shift ties automotive manufacturing closer to stationary power markets. However, BESS success will depend on execution, sourcing, and project-cycle discipline. Therefore, Ford’s move could reshape LFP supply competition with established storage players.

Chinese Cobalt Prices Expected to Decline Further in 2025 Amid Rising Supply and Weak Demand

Chinese Cobalt Manufacturing

Oversupply and Weak Demand to Push Cobalt Prices Lower

The Chinese cobalt market is set to experience further price declines in 2025, as increasing nickel and copper production, from which cobalt is a by-product, leads to an oversupply that buyers are struggling to absorb.

Currently, Chinese-origin cobalt metal traded in Europe has already seen significant pressure due to a lack of floor pricing on raw materials, a trend expected to persist into the new year. Market insiders suggest that cobalt prices could drop below $9/lb, as fully integrated Chinese producers view cobalt as a credit to their primary metal production, particularly nickel and copper.

For these refiners, cobalt is a secondary concern. As one trading firm explained, some Chinese producers operate with production costs as low as $4,000 per ton while selling at $9,000 per ton. Even if they incur a $50 million loss on cobalt, they may still profit significantly from copper production, which can generate up to $700 million in gains.

Chinese Refiners Likely to Continue Production at a Loss

Unlike non-Chinese refiners, which may curtail supply if cobalt prices fall below $9/lb, some Chinese integrated mining firms and refiners could continue refining hydroxide into metal at a loss-making $7-8/lb.

While there is speculation that some Chinese metal producers may attempt to negotiate floor prices in their contracts, it remains uncertain whether these efforts will succeed. Market participants are closely watching how these negotiations unfold, as they could provide some level of price support if successful.

Global Nickel and Copper Growth to Sustain Cobalt Oversupply

The primary factor driving cobalt’s oversupply is the continued expansion of nickel and copper production, as cobalt is a by-product of both metals.

• Nickel production is set to rise again in 2025 with the launch of new Class 1 nickel refineries in China and Indonesia. This will likely keep London Metal Exchange (LME) three-month official nickel prices within the $15,000-17,000 per ton range, significantly lower than the $30,000 per ton peak in early 2023.

• Copper production is also projected to increase due to expansions at mines such as Kamoa-Kakula in the Democratic Republic of Congo (DRC). Although cobalt sales represent only a minor portion of copper mining revenues, producers still aim to extract value from it as a credit.

Weakened Demand from EV and Chemicals Sectors Further Pressures Prices

While cobalt demand in China has surged by 40%, this has not been enough to counteract weakening demand in other regions, particularly in Europe:

• The electric vehicle (EV) sector in Europe has slowed down, leading to reduced demand for cathode active materials like cobalt.

• The European chemicals industry, particularly in Germany, has struggled due to rising energy costs and broader economic challenges.

Even if prices do increase, China has ample spare refining capacity and could use third-party tolling arrangements to process hydroxide into metal, further maintaining downward price pressure.

Peak Oversupply May Be Near, But Price Recovery Remains Uncertain

Some market participants believe that cobalt hydroxide oversupply may have already peaked. The shift towards lithium iron phosphate (LFP) batteries, which do not use cobalt, has significantly impacted the demand for nickel-cobalt-manganese (NCM) battery chemistries, leading to lower demand for cobalt sulfate and cobalt hydroxide.

However, despite this potential supply peak, weak demand across key industrial sectors suggests that cobalt prices are unlikely to see a strong recovery in the near term.

Conclusion

In 2025, Chinese cobalt prices are expected to remain under pressure due to rising nickel and copper production, ongoing oversupply, and weak demand from the European EV and chemicals sectors. While some believe that the cobalt market may be nearing peak oversupply, prices are unlikely to experience significant upward momentum unless demand rebounds sharply or supply reductions occur.

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.

IGO and Tianqi Lithium Suspend Dividends Amid Lithium Inventory Challenges

Tianqi Lithium Energy Australia (TLEA)

Australia-based IGO and China's Tianqi Lithium have announced the suspension of the annual dividend for their joint venture, Tianqi Lithium Energy Australia (TLEA), citing lower sales and an increasing inventory of lithium salts at their Kwinana Refinery. This decision reflects broader market challenges, including shifts in battery chemistry that affect demand for lithium hydroxide.

Inventory Buildup and Market Dynamics

IGO, which holds a 49% stake in the Kwinana refinery through the joint venture, reported a significant buildup of lithium hydroxide inventory. The refinery, which was shut down in October 2024 for scheduled maintenance, is facing ongoing challenges with inventory management due to weaker-than-expected demand growth for lithium hydroxide. This demand slowdown is partly attributed to shifts in battery chemistry, with converters increasingly retrofitting production lines to switch from lithium hydroxide to lithium carbonate production.

The change in preference towards lithium carbonate is driven by its use in lithium iron phosphate (LFP) batteries, which are becoming increasingly popular in hybrid electric vehicles, affordable mass-market models, and energy storage projects.

Financial Implications and Outlook

As a result of these market conditions, IGO indicated that TLEA would not issue dividends for the fiscal year 2025 and could not provide a timeline for when these payments might resume. This suspension reflects the joint venture's cautious approach to financial management in light of uncertain market demand and inventory pressures.

Despite these challenges at the refinery level, the Greenbushes lithium mine, part of a joint venture between TLEA and US lithium producer Albemarle, continues to perform well, generating solid cash flows. This suggests that while the refined product market faces difficulties, the raw material extraction aspect of the business remains robust.

NextEra Battery Storage Contracts Rise as US Power Demand Accelerates

NextEra Energy

NextEra battery storage contracts increased in the first quarter as the US utility group added 1.3GW of battery storage-based agreements. The additions formed part of 4GW of renewable and storage originations, alongside 2.2GW of solar and 0.5GW of wind.

NextEra battery storage contracts are rising because US electricity demand is growing faster and customers need capacity that can be deployed quickly. The company said demand for power is not slowing and that speed to power has become essential.

NextEra battery storage contracts also show how storage is becoming a core grid resource, not only a supplement to solar and wind. Battery systems can support peak demand, improve grid reliability and provide flexible capacity as data centres, electrification and industrial load growth increase pressure on power networks.

The company added more battery storage than in the first quarter of 2025, when it originated 0.9GW of storage within 3.2GW of renewable energy and storage capacity.

Storage Pipeline Supports Fast Grid Capacity Growth

NextEra has identified four main growth routes for battery storage. These include standalone projects, co-located storage at existing renewable sites, storage as a grid solution and expansion of existing projects from four-hour to eight-hour duration.

This is important because storage demand is becoming more diverse. Standalone batteries can provide rapid capacity support, while co-located systems can improve the value of solar and wind generation.

Longer-duration battery expansion is also strategically relevant. Moving from four-hour to eight-hour systems can help utilities manage evening demand peaks, renewable intermittency and grid congestion.

NextEra’s standalone and co-located storage pipeline exceeds 110GW, excluding expansion opportunities. That scale gives the company one of the strongest platforms in the US storage market.

The growth reflects a broader shift in power infrastructure. Utilities and large customers increasingly need fast capacity additions because new gas plants, transmission lines and conventional generation projects often face long development timelines.

Battery storage is not a full replacement for all forms of generation. But it is becoming one of the fastest tools available to respond to near-term power demand growth.

Secured Supply Through 2029 Reduces Execution Risk

NextEra said it has secured domestic supply for solar panels and battery storage through 2029 at competitive prices. This reduces exposure to trade disruption, tariff changes and equipment shortages.

Supply security matters because battery storage projects depend on reliable access to cells, modules, inverters, power conversion systems, transformers and grid interconnection equipment.

South Korean battery manufacturer Samsung SDI signed a deal in March 2025 to supply 6.3GWh of battery energy storage systems to NextEra. That agreement supports the company’s ability to execute projects while demand rises.

For battery materials, the growth of utility-scale storage strengthens demand for lithium, graphite, iron phosphate cathode materials, copper, aluminium and power electronics. LFP batteries are especially important in stationary storage because of cost, safety and cycle-life advantages.

NextEra’s first-quarter profit rose to $2.18bn on sales of $6.7bn, up from $833mn in profit and $6.25bn in sales a year earlier. Stronger financial performance gives the company more room to support its renewables and storage buildout.

The industrial significance is clear. Battery storage is becoming a strategic capacity product for the US power system, especially as electricity demand from data centres, manufacturing and electrification continues to rise.

The Metalnomist Commentary

NextEra’s storage growth shows that batteries are becoming part of the core power infrastructure toolkit. The next constraint will not be customer demand, but whether supply chains, interconnection queues and grid equipment can keep pace.

BTR anode materials sales surge on EV and storage demand

BTR

BTR anode materials sales rose sharply in the first half of 2025. BTR anode materials sales exceeded 260,000t, rising about 30% year on year. This momentum underscores BTR anode materials sales strength across EVs and energy storage markets.

BTR expanded synthetic anode output to over 220,000t. That marked a 46% annual increase from strong downstream demand. Therefore, product mix shifted toward higher-spec synthetic grades.

Revenue from anode materials reached Yn6.28bn in January–June. That was up 21% from last year. As a result, operating scale improved alongside volume growth.

BTR lifted total anode capacity to 575,000 t/yr. That was up 16% from 495,000 t/yr. Hence, capacity now better supports large OEM contracts.

Indonesia ramp anchors overseas expansion

BTR launched its first overseas anode plant in Sulawesi. Phase one added 80,000 t/yr toward a 160,000 t/yr nameplate. Consequently, the company diversified manufacturing beyond China.

China’s graphite flake exports to Indonesia surged in 2025. Shipments reached 24,163t for January–July. This reflected BTR’s feedstock routing to the Sulawesi facility.

Meanwhile, total Chinese flake exports hit 61,281t. That nearly doubled year on year. Therefore, regional supply chains intensified around Indonesia.

Outlook for EV batteries and energy storage

BTR anode materials sales should track NEV and storage growth. Policy support and cost deflation remain key drivers. Moreover, synthetic graphite gains share in high-performance cells.

Energy storage orders are expanding rapidly. This supports LFP-heavy deployments with stable margins. However, feedstock and power costs require close management.

Global OEM qualification pipelines are widening. As a result, multi-site supply will become a competitive advantage. BTR’s Indonesia base strengthens that position.

The Metalnomist Commentary

BTR is scaling at the right nodes of the value chain. Overseas anode capacity plus captive flake flows reduce logistics risk and tariffs. Watch synthetic share, power contracts, and OEM long-term awards for margin durability.

Galan Lithium Secures Permit for Phase 2 Expansion at Hombre Muerto West Project

Hombre Muerto West

Galan Lithium has received a significant boost for its Hombre Muerto West (HMW) project in Catamarca, Argentina, with the granting of a Phase 2 mining permit by the Argentinian Ministry for Mining. This approval paves the way for a substantial increase in lithium production capacity at the brine project.

Production Expansion and Strategic Advantages

The Phase 2 permit allows Galan Lithium to ramp up nameplate capacity at HMW to 21,000 tonnes per year, a significant expansion from its Phase 1 production.  "We are delighted with the grant of the Phase 2 mining permit," said Juan Pablo Vargas de la Vega, Galan's managing director. "It will allow Galan to increase production over threefold from Phase 1 and produce a premium-quality lithium chloride product, which is in high demand. Importantly, HMW is positioned in the first quartile of the cost curve, and Phase 2 production would be cash-flow positive even at today's prevailing lithium carbonate prices."

The company currently holds an inventory of approximately 6,000 tonnes of lithium contained in existing lithium ponds at HMW and aims to commence Phase 2 ramp-up this year. This strategic timing positions Galan to capitalize on the anticipated recovery of lithium prices.

Future Growth and Resource Potential

Galan Lithium has ambitious plans for further expansion at HMW, with two additional phases in the pipeline. Phase 3 aims to achieve a production capacity of 40,000 tonnes per year within a two- to five-year timeframe, while Phase 4 has a longer-term target of 60,000 tonnes per year.  The project boasts substantial reserves of 7.3 million tonnes of lithium carbonate equivalent (LCE) at a high grade of 852 mg/L of lithium, representing the highest-grade and lowest-impurity lithium brine resource in Argentina.

Navigating Market Dynamics

This expansion comes at a time when lithium carbonate prices have experienced a significant correction, falling to $9.10-9.40/kg cif China on December 31st, down from $13-14/kg at the start of 2024.  Prices have plummeted by 86% since their 2022 peak, prompting several hard rock lithium producers in Africa and Australia to curtail production and conserve resources.  However, brine producers like Galan, with their larger scale and lower operating costs, are better positioned to weather the price downturn and benefit from sustained demand from lithium-iron-phosphate (LFP) battery manufacturers.