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.

CATL LFP feedstock supply strategy accelerates amid global EV demand

CATL

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

Prepayments deepen CATL LFP feedstock supply chain integration

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

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

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

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

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

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

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

The Metalnomist Commentary

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

China’s Gotion Predicts LFP Batteries Will Dominate Global EV Market

Gotion High-Tech

Chinese battery producer Gotion High-Tech forecasts that lithium-iron-phosphate (LFP) and lithium-manganese-iron-phosphate (LMFP) batteries will claim up to 70% of the global electric vehicle (EV) battery market in the next 2-5 years. Speaking at the ASEAN Battery Technology Conference in Singapore, Gotion’s Asia-Pacific president Cheng Qian highlighted the rising prominence of LFP chemistry, particularly in affordable EVs and energy storage systems.

The Rise of LFP Batteries

Qian projected that LFP batteries will dominate not only the global EV market but also the entire energy storage system (ESS) sector, exceeding even the IEA’s 80% forecast. He attributed this growth to advancements in LFP battery range and faster charging times, catering to the needs of everyday EV consumers. In contrast, nickel-cobalt-manganese (NCM) batteries are expected to remain essential only for high-performance and long-range EVs.

This shift has placed pressure on the nickel market, as manufacturers pivot to cost-efficient LFP solutions. South Korean giants such as Samsung SDI and SK On are preparing to mass-produce LFP batteries by 2026. Meanwhile, LG Energy Solution (LGES) has committed to supplying 39GWh of LFP batteries to Renault's EV division Ampere, underscoring Europe’s growing focus on LFP technology.

Two-Wheeler EV Transition in Asia-Pacific

The two-wheeler EV market, particularly in Asia-Pacific, is also expected to transition from NCM to LFP batteries. India, Indonesia, and the Philippines are leading this shift due to cost concerns and government initiatives.

• India: Achieved record EV sales in FY2023-24, with two-wheeler EV sales rising 30% year-on-year to 944,126 units.
• Indonesia: Aims for 2 million electric motorcycles by 2025, supported by a $458 million subsidy program launched in March 2023.
• Philippines: Targets a 50% electric motorcycle and tricycle share by 2030, with cost efficiency driving adoption.

A Global Shift in Battery Technology

With its affordability and sustainability, LFP battery technology is reshaping the global EV landscape, especially in cost-sensitive markets. Companies like Gotion, LGES, and Samsung SDI are at the forefront of this transformation, signaling a shift towards accessible and efficient energy solutions.

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.

ICL to Build Lithium Battery Plant in the US with Aleees Partnership

ICL

ICL Starts Construction of US-Based LFP Battery Facility

Israeli specialty minerals company ICL has begun construction of a lithium iron phosphate (LFP) battery plant near St. Louis, Missouri. The facility will have a production capacity of 30,000 metric tonnes per year and is expected to start operations later this year.

This $400mn investment will be partially funded by a $197mn grant from the US Department of Energy (DOE). The grant falls under the Bipartisan Infrastructure Law, aimed at strengthening domestic clean energy supply chains.

However, the DOE funding remains frozen under an executive order signed by President Donald Trump in January 2025. Despite the uncertainty, ICL has proceeded with the project to establish its US footprint in the battery materials space.

Strategic Partnerships Secure LFP Technology Supply Chain

To support the project, ICL has partnered with Taiwan-based Aleees, a major LFP technology licensor. Aleees will help ICL establish a secure LFP supply chain for US electric vehicle and energy storage customers.

The partnership gives ICL access to Aleees' intellectual property and production expertise. Aleees also licensed its LFP cathode material technology to US battery firm T1 Energy, formerly Freyr Battery.

Meanwhile, ICL is also expanding its footprint in Europe. In January, it formed a joint venture with China’s Shenzhen Dynanonic to produce LFP cathode active materials for the European market.

The Metalnomist Commentary

ICL’s investment reflects a strategic move to onshore battery material production in response to growing US demand and political pressure. As LFP becomes the chemistry of choice for mass-market EVs and grid storage, securing localized supply chains will be critical for competitiveness and compliance. The real test will be whether DOE funding resumes under the evolving policy landscape.

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

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

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

Geopolitical Challenges and Wanrun’s Strategic Expansion

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

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

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

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.

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.

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.

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.

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.

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.

Gotion Foresees Lithium-Iron-Phosphate Batteries Dominating Global EV Market

In a significant shift for the electric vehicle (EV) industry, Gotion, a leading Chinese battery manufacturer, predicts that lithium-iron-phosphate (LFP) and lithium-manganese-iron-phosphate (LMFP) battery chemistries will dominate the global EV battery market within the next two to five years. Speaking at the ASEAN Battery Technology Conference in Singapore on August 21, Gotion's Asia-Pacific president, Cheng Qian, projected that these battery types could account for nearly 70 percent of the global market share, with the remainder being held by nickel-cobalt-manganese (NCM) batteries.

Qian emphasized that LFP battery technology is poised to take over the entire energy storage system sector, surpassing even the International Energy Agency's (IEA) forecast of 80 percent dominance. He attributed this trend to advancements in LFP battery range and the increasing demand for faster charging capabilities among EV consumers. NCM batteries, he noted, would be relegated to use in high-performance and ultra-long-range vehicles.

The transition has already begun to impact the nickel market and is gaining momentum among South Korean battery manufacturers. These companies are anticipating strong demand for more affordable EVs, driven by the cost-effectiveness of LFP batteries. Samsung SDI and SK On, for instance, are preparing to launch mass production of LFP batteries by 2026.

Adding to this momentum, LG Energy Solution (LGES) recently secured a contract to supply 39GWh of LFP batteries to Renault's EV division, Ampere, from its largest battery plant in Europe for the period 2025-2030. LGES is also planning to shift to LFP batteries for a U.S. energy storage project after initially supplying NCM batteries.

Expansion into Two-Wheeler Market

Gotion also predicts a significant shift toward LFP and LMFP batteries in the global two-wheeler EV market, which has been predominantly powered by NCM batteries. Cost reductions will be crucial for major two-wheeler markets in the Asia-Pacific region, including India, Indonesia, and Thailand, Qian noted.

India, which experienced a 30 percent surge in two-wheeler EV sales during its fiscal year 2023-24, reaching a record high of 944,126 units, is poised for further growth. Indonesia is similarly ambitious, aiming to deploy 2 million electric motorcycles by 2025, escalating to 13 million by 2030. The nation has introduced a $458 million subsidy program to incentivize electric motorcycle adoption.

The Philippines has also outlined its EV roadmap, emphasizing the lower upfront costs of electric tricycles and motorcycles as key drivers for EV adoption. The country aims to achieve a 50 percent share of electric motorcycles and tricycles by 2030, increasing to 60 percent by 2040.

ACE Green Recycling to Expand LFP Battery Recycling Capacity in India

ACE Green Recycling

ACE Green Recycling, a US-based battery recycling company, has announced plans to significantly expand its lithium-iron-phosphate (LFP) battery recycling capacity in India. The company aims to increase its recycling capacity to 10,000 tonnes per year by 2026.

Expansion Details and Location

The expanded facility will be located near the port of Mundra in northwest India, building upon ACE's existing operations in the country. The strategic location near the port is expected to optimize the transportation of both feedstock and offtake products, improving efficiency and reducing costs.

Technology and Recovery Rates

ACE Green Recycling claims its proprietary technology can recover lithium from LFP batteries at levels of around 75%, producing lithium carbonate with a purity exceeding 99%.  In addition to lithium, the technology can also recover other valuable materials, including graphite, iron phosphate, steel, and copper. This comprehensive recovery process maximizes resource utilization and minimizes waste.

Market Outlook and Future Plans

ACE's chief executive officer, Nishchay Chadha, highlighted the expected dominance of LFP batteries in the lithium battery market by 2030, stating that the company is strategically scaling its LFP battery recycling capacity to meet the anticipated demand and support its growing customer base.  This expansion in India is a key part of ACE's broader growth strategy.

ACE also has plans to launch another LFP battery recycling plant in Texas, USA, in the second half of 2026. This plant is projected to have a processing capacity of 5,000 tonnes per year of scrap batteries.  In 2022, ACE signed a 15-year supply agreement with Switzerland-based Glencore for all recycled products from four of ACE's planned lead-acid battery and lithium-ion battery recycling facilities in the US, India, and Thailand, demonstrating strong market demand for recycled battery materials.

China's Lithium Tech Export Curbs Threaten EU Battery Industry

China's Lithium Battery

Key Technology Export Controls Put European Battery Industry on Edge

China's proposed restrictions on exporting key lithium processing technologies are sending shockwaves through the European Union's (EU) burgeoning battery industry. The proposed curbs target crucial equipment used in lithium extraction and battery material production, including lithium-iron-phosphate (LFP) battery production equipment, cathode preparation technology, and direct-lithium-extraction (DLE) technology, particularly from spodumene and brines. A consultation period is open until February 1st, after which a final decision will be made.

Europe's Reliance on Chinese Technology Raises Concerns About Supply Chain Security

Industry experts warn the impact could be significant, especially for junior European lithium producers heavily reliant on Chinese technology. Companies like Northvolt, which recently announced job cuts and scaled back ambitions, highlight the vulnerability of the EU's current strategy. The restrictions could hinder the development of a robust, independent European battery supply chain.

Companies with In-House Technology See Opportunity Amidst Crisis

However, some companies are better positioned to weather the storm. Vulcan Energy Resources, an Australian company with operations in Europe, claims to have developed in-house absorption-type DLE technology, securing its supply chain and potentially offering solutions to other European players. Vulcan Energy Resources' executive chair, Francis Wedin, emphasized the strategic advantage of their technology, particularly given Goldman Sachs's preference for brine-based lithium extraction due to lower production costs.

European Lithium Market Faces Uncertainty and Calls for Action

Other voices in the European lithium market paint a more concerning picture. Viridian Lithium's chief commercial officer, Luc Pez, warned of potentially "extremely disruptive" consequences for the nascent ex-China battery supply chain. Pez criticized the lack of preparedness in Europe and the US, urging for accelerated reshoring of the battery supply chain and addressing regulatory inconsistencies within the EU. He highlighted the urgent need for Europe to establish concrete plans and achieve its targets in the face of increasing competition from China in the electric vehicle market.

The Future of European Electric Vehicle Market Hangs in the Balance

China's proposed export restrictions underscore the geopolitical complexities of the lithium market and the challenges facing Europe's ambitions in the electric vehicle sector. The move could significantly impact the development of the European electric vehicle market, as the EU aims to reduce its reliance on China for battery supply.

BYD Signs World’s Largest Energy Storage Deal with Saudi Electric Power

BYD Lithium Battery

Landmark lithium battery contract supports Saudi Arabia’s 2030 renewable energy target

Chinese energy storage leader BYD has signed a landmark contract to supply 12.5GWh of energy storage systems (ESS) to Saudi Electric Power. This agreement now marks the largest single ESS contract globally by capacity, according to BYD’s announcement on 14 February.

The new deal builds on BYD’s prior delivery of 2.6GWh to Saudi Electric Power, bringing the total supply to 15.1GWh. The two companies did not disclose the contract timeline. However, BYD confirmed that the agreement will significantly support Saudi Arabia’s Vision 2030, which targets 50% renewable energy integration.

BYD scales global reach with LFP-based ESS technologies

BYD began deploying lithium iron phosphate (LFP) battery storage systems 17 years ago. Since then, it has completed over 350 energy storage projects worldwide, supplying more than 75GWh to global markets.

As of 2024, BYD's ESS and power battery installations reached 194.7GWh, up 29% year-on-year. Of that, 135.02GWh was power battery installation alone, based on data from the China Automotive Battery Innovation Alliance.

These results further establish BYD as a global ESS leader, particularly as Chinese companies accounted for 93.5% of global energy storage shipments last year. In total, global energy storage battery shipments hit 369.8GWh in 2024—a 65% year-on-year increase.

Energy storage drives Saudi diversification efforts

The partnership between BYD and Saudi Electric Power aligns with the kingdom’s strategic push toward energy diversification and grid modernization. As Saudi Arabia ramps up utility-scale solar and wind projects, the need for large-scale battery storage grows rapidly.

BYD’s advanced LFP technology offers long cycle life, thermal stability, and safety—making it ideal for the desert climate and high-demand grid applications in the region. This deal positions BYD as a critical technology supplier in Saudi Arabia’s clean energy roadmap.

China’s Lithium-Ion Battery Output Jumps 24% in 2024 on EV and Storage Demand

China’s Lithium-Ion Battery

Lithium Carbonate Leads Growth Amid LFP Battery Expansion

China's lithium-ion battery production surged by 24% in 2024, driven by rising demand from electric vehicles (EVs) and battery energy storage systems (BESS). Output reached 1,170 GWh, up from 943 GWh in 2023, according to the Ministry of Industry and Information Technology (MIIT).

Segment-wise, EV battery production hit 826 GWh, while BESS batteries totaled 260 GWh, and consumer electronics added 84 GWh. The combined installed capacity for EVs and BESS rose to 645 GWh, marking a 48% year-on-year increase.

This significant expansion highlights China's continuing dominance in battery manufacturing and its strategic push into renewable energy infrastructure.

Lithium Carbonate Sees Strongest Production Growth

Battery-grade lithium carbonate production reached 670,000 metric tonnes in 2024, reflecting a 45% increase from 2023. Lithium hydroxide output grew to 360,000 tonnes, a 26% gain year-on-year, according to MIIT data.

Lithium carbonate’s growth outpaced lithium hydroxide due to increased adoption of Lithium Iron Phosphate (LFP) batteries. LFP technology, now widely used in EVs and BESS, primarily relies on lithium carbonate, rather than lithium hydroxide.

This shift reflects changing chemistry preferences among automakers and grid-scale storage developers, prioritizing cost, safety, and cycle life. As battery technologies evolve, the metals supply chain must adapt to meet diversified material demands.

For more updates on battery metals, energy storage trends, and lithium market forecasts, follow The Metalnomist.

China's Easpring Raises Battery CAM Output in 2024

Easpring

LFP Plant Fuels Record Production Growth

Chinese cathode active material (CAM) producer Beijing Easpring posted a 70% increase in CAM output in 2024. This growth was driven by the launch of its lithium-iron-phosphate (LFP) production line in Sichuan. Easpring produced 103,401 tonnes of CAM, including lithium nickel-cobalt-manganese oxide (NCM), LFP, and lithium cobalt oxide (LCO), marking a major output milestone.

Strategic Expansion in LFP and Global Partnerships

Easpring’s entry into the LFP segment reflects rising demand from the energy storage system (ESS) market. In 2022, the firm began constructing a 300,000 t/yr LFP plant in Panzhihua, Sichuan, alongside Sichuan Shudao New Material Technology. The first 40,000 t/yr phase came online in 2024. A second 90,000 t/yr phase is under construction and set for completion by year-end.

Meanwhile, Easpring has strengthened its global footprint. It supplies major battery manufacturers including SKI, LG Energy Solution (LGES), Samsung SDI, and Northvolt. In March, it signed a deal to deliver 110,000 tonnes of ternary CAM to LGES between 2025 and 2027.

Strong Outlook Amid Surging Battery Demand

As electric vehicle (EV) and ESS battery markets continue to grow, Easpring’s output is projected to exceed 150,000 tonnes in 2025. Global EV battery shipments rose by 22% to 1,051.2GWh in 2024, while ESS battery shipments jumped 65% to 369.8GWh. Easpring is poised to meet this demand surge with its expanded production base and stable international partnerships.

The Metalnomist Commentary

Easpring’s aggressive scale-up in LFP shows how battery material firms are adjusting portfolios amid the shifting dynamics of EV and ESS markets. With strong partners and diversified CAM offerings, Easpring is well-positioned for growth even amid global supply chain uncertainties.

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.