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

Hubei Wanrun

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

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

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

Wanrun New Energy's Role in the Growing LFP Market

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

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

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

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

Lopal

Strategic Agreement Secures 150,000t of LFP Through 2029

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

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

Lopal Expands Production Footprint Across China and Indonesia

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

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

Term Contracts Signal Confidence from Global OEMs

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

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

The Metalnomist Commentary

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

China's Shenghua Begins Production at Yichun LFP Plant

Shenghua New Material

Jiangxi Shenghua New Material, a leading Chinese manufacturer of lithium-iron-phosphate (LFP), has initiated production at its new LFP facility in Yichun city, located in southeastern China’s Jiangxi province. The facility is being constructed in two phases, with each phase contributing 75,000 tonnes per year of LFP production capacity. The first phase, representing an investment of 1.5 billion yuan ($214 million), includes six production lines. The trial run of the first line has already started, and full production is expected to begin by mid-October. All six production lines are scheduled to be operational by the end of 2024.

Partnership with CATL Strengthens LFP Output

Shenghua has partnered with CATL, China’s largest power battery manufacturer, to build the plant and supply its products. CATL has made an advance payment to support the plant’s construction, and in return, Shenghua has committed to supplying CATL with at least 140,000 tonnes of LFP annually from 2025 to 2027.

Shenghua’s output has rapidly expanded, producing 47,000 tonnes of LFP in the first half of 2024, more than tripling from 15,102 tonnes during the same period in 2023. For the entire year of 2023, Shenghua produced 42,159 tonnes of LFP, with a production capacity of 140,000 tonnes per year. The company supplies LFP to major clients such as CATL, Svolt Energy Technology, and Henan Lithium Power Battery Technology.

LFP batteries continue to dominate China's energy storage market. In August, LFP batteries accounted for 75% of production and 74% of installed battery volumes, according to data from the China Automotive Battery Innovation Alliance.

Texas LFP Plant Links Domestic Lithium Supply With Cathode Production

EnergyX

Texas LFP plant development is moving forward after Wildcat Discovery Technologies and EnergyX formed a joint venture to produce lithium iron phosphate cathode active material in Hooks. The project represents more than $230mn of investment and is designed for around 15,000 t/yr of CAM capacity.

Texas LFP plant plans are strategically important because the facility will sit next to EnergyX’s Lonestar lithium project in the Smackover formation. This creates a potential domestic route from lithium extraction and conversion to cathode material production.

Texas LFP plant supply will also benefit from a structured lithium pricing agreement. EnergyX will provide lithium carbonate to the joint venture at commercially favourable terms, including a market discount and price floor and ceiling intended to reduce exposure to lithium price volatility.

The project strengthens US efforts to localise more of the battery value chain, particularly for LFP chemistry used in electric vehicles and stationary energy storage.

Co-Location Reduces Battery Supply Chain Risk

The Hooks facility is designed to produce about 15,000 t/yr of LFP cathode active material, with potential for future expansion.

Its location beside EnergyX’s Lonestar lithium operation is the project’s main industrial advantage. Co-locating lithium supply and cathode production can reduce logistics complexity, shorten supply chains and improve feedstock security.

EnergyX plans to produce 48,500 t/yr of lithium hydroxide at Lonestar by 2030. The first phase is expected to reach 14,250 t/yr by 2028.

The project is targeting operating expenditure of about $3.85/kg, which could strengthen the economics of downstream battery material production if that cost structure is achieved at scale.

The joint venture will initially receive lithium carbonate under a pricing structure that limits exposure to extreme market movements. This gives the cathode operation greater cost visibility during periods of lithium volatility.

For battery materials projects, this kind of feedstock agreement can be as important as plant capacity. Cathode producers need reliable supply, predictable chemistry and manageable pricing to compete with established Asian producers.

LFP Growth Supports US Battery Localization

LFP chemistry is gaining market share because it offers lower cost, strong cycle life and improved thermal stability compared with nickel-rich cathode systems.

It also avoids nickel and cobalt, reducing exposure to two globally concentrated and price-sensitive battery metals. However, LFP still depends heavily on lithium supply and specialised cathode manufacturing capability.

The Wildcat-EnergyX project therefore addresses two major US supply-chain gaps at the same time: domestic lithium production and domestic cathode active material manufacturing.

Stationary energy storage is likely to be an important demand source. Large grid batteries increasingly favour LFP because of its durability, safety characteristics and lower material cost.

EV demand could provide another growth route, particularly as automakers expand lower-cost vehicle platforms using LFP cells.

The project also illustrates a wider shift in US battery strategy. Rather than building isolated mines or chemical plants, developers are increasingly trying to connect extraction, conversion and active material production within regional industrial clusters.

The Metalnomist Commentary

The Wildcat-EnergyX venture is strategically stronger because it links lithium supply directly with LFP cathode production. US battery localization will depend less on individual plants and more on integrated regional chains that control feedstock, processing and pricing risk.

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.

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.

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.

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

Lopal

Strategic Partnership for Malaysian Battery Production

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

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

Global LFP Supply Chain Diversification

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

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

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

The Metalnomist Commentary

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

Liyuan Begins Phase 2 Expansion of Indonesian LFP Production Plant

Changzhou Liyuan

Chinese Lithium Iron Phosphate Producer Expands Capacity to Meet Growing Global Demand

Chinese lithium iron phosphate (LFP) producer Changzhou Liyuan has officially started building Phase 2 of its production plant in Indonesia. The second phase of the plant, with a designed capacity of 90,000 tonnes per year (t/yr), aims to strengthen Liyuan's position in the growing global LFP market. However, specific details about the construction period and expected launch date have yet to be disclosed.

This expansion follows the successful completion of the first phase, which began in July 2023 and had a capacity of 30,000 t/yr. The first batch of LFP material is expected to be produced in January 2025. Located in the Kendal Industrial Park in Central Java, Indonesia, this plant represents a significant step in China’s strategic investment in overseas battery material production.

Strategic Investment in Overseas Capacity

Liyuan's plant in Indonesia is the first overseas LFP production project by a Chinese company with a capacity exceeding 10,000 t/yr. This milestone reflects China's growing commitment to securing international battery feedstock resources. While many Chinese investments in Indonesia have historically focused on primary materials or intermediates, this project marks a shift toward direct investment in battery materials, essential for the global electric vehicle (EV) market.

The expansion also highlights the broader trend of Chinese battery firms investing heavily in overseas manufacturing capacity. These investments are seen as crucial for diversifying supply chains and mitigating geopolitical risks, ensuring a stable supply of LFP materials amidst increasing global demand.

Rising Demand for LFP in the Power Battery Market

LFP's popularity in the power battery market has surged due to its lower manufacturing costs and enhanced safety compared to other battery chemistries. As the demand for electric vehicles continues to rise, LFP's market share is expected to grow even further, with Liyuan's expanded capacity playing a key role in meeting this demand.

In conclusion, Liyuan’s Phase 2 expansion in Indonesia marks a strategic move to enhance global production capacity and supply chain diversification. With the growing importance of LFP in the energy transition, this project is a significant step forward for both Liyuan and China’s battery material supply chain.

China's Jiangsu Lopal to Boost LFP Battery Supply to South Korea's LG Energy Solution

Jiangsu Lopal

In a significant development for the electric vehicle (EV) battery market, Jiangsu Lopal, a major Chinese producer of lithium iron phosphate (LFP) batteries, has announced plans to increase its LFP supply to South Korea's LG Energy Solution (LGES). This move is expected to solidify the partnership between the two and cater to the growing demand for cost-effective EV batteries.

Expansion of Supply Agreement

Lopal revised its existing supply agreement with LGES on December 24, aiming to deliver 260,000 tons of LFP material over the period from 2024 to 2028. This represents a substantial 60% increase from the previously agreed 160,000 tons. The expanded agreement underscores both companies' commitment to long-term collaboration amidst the burgeoning EV market.

The LFP material will be supplied by Lopal's subsidiaries, Changzhou Liyuan New Energy Technology (LBM) and LBM New Energy (AP). Notably, the latter sources its LFP from a production facility in Indonesia, highlighting the global scope of Lopal's operations.

Strategic Investments in Production Capacity

LBM has committed approximately $290 million to establish a production plant in Indonesia with a nameplate capacity of 120,000 tons per year. The project is planned in two phases: the first phase, already completed, has a capacity of 30,000 tons per year, and the second phase, scheduled to start production in 2025, will add 90,000 tons per year.

Global Shift Towards LFP Battery Adoption

The shift towards LFP batteries is gaining momentum globally, with major automakers such as Tesla, VW, General Motors, Stellantis, Hyundai, and Renault opting for LFP cells to reduce EV manufacturing costs. Previously favoring ternary batteries, these automakers are now recognizing the economic benefits of LFP technology. Furthermore, Chinese battery material firms are increasingly investing in overseas LFP production, not only to diversify supply but also to meet specific market entry conditions, as evidenced by Zhejiang Youshan New Material Technology's recent initiative in Indonesia.

China's Youshan to Build First Overseas LFP Plant in Indonesia

Youshan New Material Technology

Chinese lithium iron phosphate (LFP) producer Zhejiang Youshan New Material Technology has announced plans to build its first overseas LFP production plant in the Indonesia Pomalaa Industry Park (IPIP). The plant will have a nameplate capacity of 50,000 t/yr, with construction expected to take 16 months. Production is slated to begin in the first half of 2026, marking a significant milestone in Youshan’s global expansion strategy.

Founded in 2018, Youshan specializes in the research and development of LFP materials and operates under the ownership of Huayou Holdings Group. Huayou Holdings is also the largest shareholder of Huayou Cobalt, a major player in the production of battery metals and cathode active materials.

Huayou Cobalt's Growing Presence in Indonesia

Youshan's announcement follows Huayou Cobalt’s aggressive investments in Indonesia’s battery materials sector. The company has commissioned production facilities for mixed hydroxide precipitate (MHP), nickel matte, and lithium nickel-cobalt-manganese (NCM) precursors. In October, Huayou launched its first overseas high-nickel ternary battery precursor plant in Indonesia, highlighting the country’s critical role in global battery materials supply chains.

Other Chinese producers, such as Jiangsu Lopal Tech, have also established LFP production in Indonesia. Lopal Tech began operations at its Indonesia-based plant earlier this year, signaling a broader trend of Chinese firms leveraging Indonesia’s natural resource wealth and favorable industrial policies to expand their global footprints.

LFP Demand and Price Outlook

The global market for LFP materials is surging, driven by strong demand from the energy storage battery sector and the growing adoption of lithium-ion batteries. Exporters are also ramping up shipments to overseas markets in anticipation of higher US tariffs on battery imports starting in 2025. As demand rises, major producers are expected to increase LFP prices in the near term.

XTC New Energy LFP LMFP Capacity Expansion Targets Higher-Density Battery Materials

XTC New Energy

XTC New Energy LFP LMFP capacity will expand in Sichuan as the Chinese battery materials producer adds another 40,000 t/yr of lithium iron phosphate and lithium ferro-manganese phosphate production. The second-phase project will be built in Ya’an city and is expected to start production in June 2028.

XTC New Energy LFP LMFP capacity at the Ya’an plant will reach 80,000 t/yr after both phases are completed. The first phase already provides 40,000 t/yr of LFP capacity, while the new phase will add flexible LFP and LMFP output.

XTC New Energy LFP LMFP capacity expansion reflects China’s continued investment in lower-cost and manganese-enhanced battery chemistries. The project will be operated by subsidiary Ya’an XTC New Energy, with total investment expected at 743mn yuan.

The move comes as Chinese battery material producers position for growing power battery demand and greater interest in manganese-based cathode active materials.

LMFP Gains Momentum as Producers Seek Better Energy Density

LMFP is gaining attention because it can offer higher energy density than conventional LFP. This makes it attractive for battery makers seeking to improve driving range while keeping costs below higher-nickel chemistries.

However, LMFP still faces trade-offs. Batteries using LMFP cathode active material generally have shorter cycle life and lower charge-discharge efficiency than LFP batteries.

This means LMFP is not a simple replacement for LFP. Instead, it is likely to develop as a complementary chemistry for applications where higher energy density is more valuable than maximum cycle life.

The expansion also shows how manganese is becoming more important in battery materials. Manganese-based chemistries can reduce reliance on more expensive or supply-sensitive metals while supporting performance improvements.

For XTC, adding LMFP capacity gives the company more flexibility. It can serve established LFP demand while preparing for customers that want manganese-enhanced phosphate materials.

China’s Cathode Supply Chain Expands Into Manganese-Based Materials

XTC is not alone in expanding LMFP capacity. Several Chinese battery material producers are adding or building manganese-based phosphate projects.

Ningxia Hengchuang Nami began building the first phase of a 30,000 t/yr LMFP plant in Yinchuan in March. Hunan Yuneng, China’s largest LFP producer, is also building an LMFP materials plant.

Jiangxi Greatpower launched the first phase of a 20,000 t/yr LMFP plant in Pingxiang in January. These projects show that China’s battery materials industry is preparing for broader adoption of LMFP.

The trend is strategically important for the cathode supply chain. LFP has already become a major chemistry in electric vehicles and energy storage because of its cost advantage, safety and long cycle life.

LMFP could extend that platform by adding more energy density while preserving some of LFP’s cost and safety benefits. If technical limitations improve, LMFP may become a larger part of China’s battery chemistry mix.

For raw materials, the shift could support manganese demand in battery applications. It also reinforces China’s lead in scaling new cathode chemistries from pilot production to industrial capacity.

The Metalnomist Commentary

XTC’s Ya’an expansion shows that China’s battery materials race is moving beyond simple LFP scale. LMFP is becoming a serious development path because it offers a practical route to higher energy density without fully moving into costlier high-nickel systems.

L&F Mitra Chem LFP Investment Targets U.S. Battery Supply Chain Strengthening

Mitra Chem

Korean cathode maker backs U.S. startup for local LFP material production

L&F invests $9.9mn in Mitra Chem for LFP production

L&F Mitra Chem LFP investment marks a strategic move to support domestic lithium iron phosphate (LFP) cathode production in the U.S. L&F invested ₩14.5 billion (approximately $9.9 million) in Mitra Chem through a preferred stock agreement to build collaboration. Mitra Chem develops iron-based cathodes for electric vehicles, energy storage, and military battery systems. As a result, the partnership strengthens U.S. battery material independence amid rising geopolitical and policy-driven localization needs.

L&F, a key Tesla supplier of high-nickel cathodes, is expanding its portfolio amid shifting industry dynamics. Notably, Mitra Chem’s CEO Vivas Kumar is a former Tesla executive, further deepening strategic alignment.

Weaker cathode demand pressures L&F’s 2024 earnings

Despite the new U.S. investment, L&F reported a net loss of ₩365 billion in 2024.

This widened from ₩194 billion in 2023, driven by softer-than-expected demand in the global battery market.

However, the deal with Mitra Chem signals L&F’s long-term pivot toward the fast-growing LFP segment. LFP technology is gaining traction globally due to its affordability, thermal stability, and use in stationary storage solutions.

The Metalnomist Commentary

L&F Mitra Chem LFP investment may look modest in size, but strategically it is critical. By aligning with a U.S.-based cathode startup led by Tesla alumni, L&F positions itself for a diversified and resilient future. As LFP gains global market share, this move could help offset volatility in nickel-based cathode demand.

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.

CATL Secures LFP Supply from Shenghua to Boost Battery Production

LFP

CATL Signs Strategic LFP Supply Agreement

China’s largest battery manufacturer, CATL, has entered into a major supply agreement with Jiangxi Shenghua New Material to secure long-term lithium iron phosphate (LFP) cathode materials. The deal involves a 500mn yuan ($69.6mn) advance payment to help finance Shenghua’s construction of two new LFP production facilities. These will include a 160,000 t/yr plant in Yichun, Jiangxi, and a 200,000 t/yr plant in Sichuan, significantly expanding the company’s capacity.

Priority Supply for CATL Through 2029

Under the agreement, Shenghua will prioritize all designed capacity to meet CATL’s specifications between 2025 and 2029. CATL has committed to purchasing at least 80% of Shenghua’s annual production during this period. Shenghua’s LFP output has surged from 42,159t in 2023 to 128,240t in 2024, with sales climbing at a similar pace. The company currently supplies major battery producers such as CATL, Svolt Energy Technology, and Henan Lithium Power Battery Technology.

Strengthening China’s EV and Energy Storage Market

LFP batteries accounted for nearly half of the global EV battery market in 2024, with an even greater share in China due to their cost advantages and safety profile. As geopolitical tensions and US tariffs limit export opportunities, Chinese manufacturers are intensifying efforts to stimulate domestic demand through new energy vehicle (NEV) and energy storage system (ESS) expansion. This strategic partnership positions CATL to maintain secure material supply and enhance competitiveness in both sectors.

The Metalnomist Commentary

This deal underscores the strategic importance of upstream material control in the rapidly growing EV and ESS sectors. By locking in long-term LFP supply, CATL is mitigating raw material risk while supporting China’s domestic manufacturing resilience. In a market facing geopolitical pressure, vertical integration remains a key competitive advantage.

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.

ICL and Dynanonic Partner to Boost LFP Cathode Production in Europe

BMW

Israeli specialty minerals company ICL and Chinese battery cathode producer Shenzhen Dynanonic have formed a joint venture to manufacture lithium iron phosphate (LFP) cathode active material (CAM) in Europe. This collaboration aims to enhance the region’s battery supply chain and support the growing demand for EV and energy storage solutions.

Repurposing the Sallent Site for LFP Production

ICL has repurposed its Sallent site in Spain, previously used for potash production, to develop the new LFP cathode production facility. The joint venture represents a strategic shift towards sustainable battery materials. The companies will initially invest €285 million ($293 million), with ICL holding an 80% stake and Dynanonic the remaining 20%.

Strengthening Europe’s Battery Supply Chain

The new LFP facility will boost Europe's domestic production of battery materials, reducing reliance on Asian imports. The demand for LFP cathodes has surged due to their cost-effectiveness, safety advantages, and long cycle life compared to nickel-manganese-cobalt (NMC) alternatives. The European EV market and energy storage sectors will directly benefit from this development.

ICL and Dynanonic’s Strategic Vision

By leveraging ICL’s European presence and Dynanonic’s expertise in LFP cathode technology, the joint venture positions itself as a key player in the battery materials industry. This investment aligns with Europe’s push for battery independence and sustainable energy solutions.

Guizhou Phosphate LFP Plant Breaks Ground to Expand Battery Materials Production

Guizhou Phosphate

Guizhou Phosphate Chemical, a state-owned Chinese firm, has started construction on a major LFP plant in southwest China. Located in Kaiyang, Guizhou, the facility is designed to produce 600,000 tonnes per year of lithium iron phosphate, with full commissioning expected by 2028. The plant is part of a broader push to enhance China’s control over the lithium battery supply chain.

Multimetal Facility to Support China’s NEV Ambitions

The Guizhou Phosphate LFP plant is part of a larger complex valued at ¥33.1 billion ($4.5 billion). In addition to LFP materials, it will produce iron phosphate, lithium carbonate, copper, and titanium dioxide. The first phase, focused solely on LFP, will be operational by 2026. This aligns with China’s drive to support domestic production amid rising demand from new energy vehicles (NEVs) and grid-scale storage.

Oversupply Looms Despite Surging LFP Output

While LFP shipments in China surged 48% year-over-year to 2.43 million tonnes in 2024, market value dropped by 30% due to oversupply. The Guizhou Phosphate LFP plant joins other large-scale projects, including Tsingshan’s mega-complex in Zhijin County, further crowding the market. This rapid expansion raises concerns about long-term price stability and profitability within the LFP sector.

The Metalnomist Commentary

The Guizhou Phosphate LFP plant exemplifies China’s aggressive industrial scaling in battery materials. While strategic for EV dominance, unchecked expansion may strain margins and intensify global competition in LFP supply chains.

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.

Hunan Yuneng Breaks LFP Production Record in 2024 Amid Soaring Global Demand

Hunan Yuneng

Surging NEV and Energy Storage Markets Drive Output Growth Despite Falling Prices

LFP Output Hits All-Time High in 2024

Hunan Yuneng New Energy Battery Material, China's largest lithium iron phosphate (LFP) material producer, reported record output in 2024. The company produced 735,462 tonnes of LFP, a 46% year-on-year increase, amid surging demand from new energy vehicles (NEVs) and energy storage markets.

Despite a 101% capacity utilization rate, Yuneng’s sales also saw strong growth, reaching 710,565 tonnes, up by 40% from 2023. Notably, 41% of its output supported the fast-growing energy storage segment, reflecting China's pivot toward green energy infrastructure.

Profit Declines on Price Pressures

While production surged, Yuneng’s financial performance declined. Operating income dropped 45% to 22.6 billion yuan ($3.1 billion), and net profit fell by 62% to 594 million yuan. The primary cause was a sustained decline in LFP prices, which affected margins across the sector.

Nevertheless, Yuneng is continuing its expansion efforts. The firm announced plans in 2024 to build a 50,000 t/yr LFP plant in Spain, marking its first overseas venture. This move targets rising European demand for LFP cathodes, particularly from automakers transitioning to LFP-based battery chemistries.

LFP Remains Dominant in China’s Battery Mix

According to China Automotive Battery Innovation Alliance (Cabir), China produced 1,096.8GWh of power and energy storage batteries in 2024. LFP batteries dominated, accounting for 74.4% of the total. Hunan Yuneng’s strong supply ties with CATL, BYD, and other major LFP battery makers have further solidified its leading role in the sector.

As global automakers and energy firms adopt LFP batteries for their cost, safety, and longevity advantages, Yuneng appears well-positioned to expand its global influence despite temporary market headwinds.