LGES Exits Indonesia EV Battery Project Amid Strategic Shift

LGES

LGES exits Indonesia EV project

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

South Korea’s LG Energy Solution (LGES) has officially withdrawn from Indonesia’s $8.4 billion Grand Package EV battery initiative.

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

Strategic Refocus on Core Ventures and Energy Storage

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

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

Indonesia Presence Maintained Through LFP and JV Assets

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

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

The Metalnomist Commentary

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

BMW Partners with Redwood to Recycle Lithium-Ion Batteries

Redwood

BMW Group has entered into a partnership with US-based battery recycler Redwood Materials to recycle lithium-ion batteries from electric vehicles (EVs) in the automaker's portfolio. Under the deal, announced Monday, Redwood will gain access to over 700 BMW Group locations across the United States, including dealerships, distribution centers, and internal facilities, to source end-of-life batteries.

Expanding Battery Recycling Operations

Redwood highlighted its proximity to BMW's Spartanburg and Woodruff manufacturing plants in South Carolina, where one of its two campuses is located. Both companies are committed to establishing significant recycling operations in the area. BMW has aggressive plans to produce at least six electric vehicle models in the US by 2030, with a $1 billion investment to retrofit its Spartanburg plant to produce electric SUVs by 2026. Additionally, the nearby Woodruff facility will support Spartanburg by supplying batteries from its new $700 million battery assembly plant, expected to be operational by 2026.

This collaboration with BMW adds to Redwood's growing network of partnerships with automakers and battery manufacturers. In May, Redwood entered a deal with Ultium, a joint venture between General Motors and LG Chem, to recycle production waste from two facilities, which are expected to generate 10,000 metric tonnes of cathode and anode scrap annually.

Elevra Lithium Production Guidance Cut Signals Short-Term Pressure at North American Lithium

Elevra

Elevra lithium production guidance now points to a softer short-term operating outlook. The company lowered its forecast for spodumene concentrate production and sales for the fiscal year ending 30 June. It now expects production of 180,000-190,000 dry metric tonnes, below its earlier range. As a result, Elevra lithium production guidance reflects mining optimization challenges rather than a change in long-term strategy.

The revision matters because the North American Lithium mine remains a key hard-rock lithium asset in Quebec. Elevra also holds broader lithium exposure in the US, Australia, and Ghana. However, current performance at its main operating site is now the market’s main focus. Therefore, Elevra lithium production guidance will shape near-term confidence in its broader growth story.

Lower Lithium Recovery Rates Are Driving the Guidance Reset

Lower lithium recovery rates are the clearest reason behind the downgrade. Recovery in the December quarter fell to 62pc, down seven percentage points from the previous quarter. The company linked this decline to lower ore grades and higher iron content. Consequently, plant performance weakened even as market prices improved.

The company said the downgrade is temporary and tied to ongoing operating adjustments. It is using increased grade-control drilling and ore blending to improve mine performance. Those steps should help stabilize feed quality over time. However, until those benefits appear, production and sales will remain under pressure.

Cost guidance also moved in the wrong direction. Unit operating costs increased to $860-880 per dry metric tonne from the prior outlook of $765-830. Lower sales volumes drove much of that increase. As a result, weaker production is now affecting both output and margin performance.

Rising Spodumene Prices Offer Partial Support to Elevra

Rising spodumene prices are providing some relief despite weaker operating performance. In the December quarter, Elevra sold 66,016 dry metric tonnes in line with guidance. Its realized selling price rose by 27pc from the previous quarter to $998 per dry metric tonne fob. Therefore, stronger market pricing is helping offset part of the operating setback.

This pricing support matters because Elevra has important commercial relationships in place. The company holds multi-year offtake agreements with Tesla and LG Chem. Its pricing also references international market levels and a forward sales structure linked to lithium hydroxide futures. Meanwhile, frequent contango in that futures market can support better commercial positioning.

The broader message is mixed rather than negative. Elevated spot prices show demand support remains present in the lithium chain. However, pricing alone cannot solve mine performance issues. Therefore, the real test for Elevra lithium production guidance will be whether operational improvements restore recovery and volume.

The Metalnomist Commentary

This downgrade is important because it highlights a familiar hard-rock lithium problem. Good pricing can support revenue, but recovery and ore quality still determine real performance. If Elevra improves blending and grade control, this may look like a temporary setback rather than a structural weakness.

CNGR Raises CAM Precursor Output and Sales in 2024

CNGR

CNGR Boosts Output Across Key Battery Materials

China’s CNGR Advanced Material increased its cathode active material (CAM) precursor production and sales in 2024, reflecting robust battery sector demand. Total CAM precursor output rose by 2.4% year-on-year to 291,019 tonnes, including nickel-cobalt-manganese (NCM) precursor, cobalt tetroxide, and iron phosphate.

The company’s operating capacity averaged 63%, with cobalt tetroxide production running at 102% capacity due to strong electronics sector demand. Production reached 192,548t NCM precursor, 26,922t cobalt tetroxide, and 71,549t iron phosphate, confirming balanced growth across its portfolio.

Sales Expansion and Global Strategic Shifts

CNGR’s total CAM precursor sales climbed 11% to 302,060 tonnes in 2024, outpacing production growth due to efficient logistics and stable client demand. The firm operates major production hubs in Hunan, Guizhou, and Guangxi, and launched Morocco’s first ternary precursor lines in January 2024.

However, CNGR will exit its Finland project, citing regulatory uncertainty and poor market conditions in Europe. This strategic pivot emphasizes the firm’s renewed focus on Asia and North Africa as growth zones.

Customer Base and Metal Diversification Efforts

CNGR supplies materials to leading battery producers including CATL, LG Chem, Samsung SDI, and Tesla, as well as CAM firms like XTC, Beijing Easpring, and Ningbo Ronbay. It began cobalt metal deliveries in July 2024 from its new 2,000t/yr facility in Guangxi, marking a downstream integration move.

This expansion into refined cobalt suggests a broader vertical integration strategy aimed at reinforcing CNGR’s presence in the global battery value chain.

The Metalnomist Commentary

CNGR’s 2024 performance shows strong resilience and strategic recalibration. While European uncertainties prompted a project withdrawal, the firm’s pivot toward Morocco and cobalt refining in Guangxi signals regional diversification and resource control. Expect CNGR to deepen its influence in battery metals amid growing EV demand.

Elevra Mangrove Lithium Offtake Could Strengthen Eastern Canada’s Battery Supply Chain

Elevra Lithium

Elevra Mangrove lithium offtake could become an important building block in Canada’s battery materials chain. Elevra has agreed to supply Mangrove Lithium with up to 144,000 t/yr of spodumene concentrate. The material would come from Elevra’s North American Lithium operation in Quebec. As a result, Elevra Mangrove lithium offtake points to a more integrated regional lithium model.

This deal matters because it links upstream mining with planned downstream conversion in eastern Canada. Mangrove intends to process the concentrate into battery-grade lithium hydroxide or carbonate. That would keep more value inside North America instead of exporting raw material only. Therefore, Elevra Mangrove lithium offtake supports the broader push for localized battery supply chains.

The commercial structure also deserves attention. Pricing will follow a market marker with both a floor and a ceiling. That approach can reduce downside risk while also limiting extreme upside exposure. Consequently, the deal structure appears designed for stability rather than pure spot-market volatility.

Quebec Spodumene Supply Gains a New Domestic Processing Route

Quebec spodumene supply is becoming more strategically important as downstream conversion capacity develops nearby. Elevra plans to begin supplying Mangrove in 2028 and ramp up deliveries to 144,000 t/yr by 2030. That timeline gives both companies room to align mine output with conversion buildout. As a result, Quebec spodumene supply could gain a stronger domestic destination.

The agreement is still conditional, which is important. The parties may sign a binding deal later, but only if Mangrove commits before June 2027 to build its conversion facility. That means project execution remains the real next test. Meanwhile, the announcement still signals serious intent from both sides.

Eastern Canada Lithium Conversion Could Broaden Elevra’s Offtake Portfolio

Eastern Canada lithium conversion could give Elevra a more diversified commercial base. The company already has offtake agreements with LG Chem and Tesla. Those contracts use different pricing formulas linked to spodumene and lithium hydroxide. Therefore, Elevra Mangrove lithium offtake would add another channel with a more regional conversion focus.

For Mangrove, the agreement is equally strategic. Securing future spodumene supply is essential if the company wants to build a viable conversion business. Without feedstock certainty, downstream lithium projects often struggle to gain credibility. Consequently, this proposed deal helps strengthen the case for an eastern Canada lithium conversion platform.

The Metalnomist Commentary

This agreement matters because it connects mine output with regional chemical conversion, which is where North America still needs more depth. The bigger issue now is not whether the idea makes sense. It is whether Mangrove can commit to the plant and turn this framework into a binding supply chain.

Chevron Joins the US Lithium Hunt

Chevron US lithium

Oil Majors Target Lithium in Smackover Formation

Chevron has officially entered the US lithium sector, joining ExxonMobil and Equinor in exploring lithium-rich brines in the Smackover formation. The oil giant acquired about 125,000 net acres in northeast Texas and southwest Arkansas, where high lithium content in briny groundwater has already attracted major interest.

The company plans to leverage its subsurface expertise to extract lithium from brine, aiming for lower costs and reduced environmental impact compared with hard rock mining or evaporation ponds. Chevron says this effort aligns with its broader strategy to support US energy leadership and build resilient domestic lithium supply chains.

Expanding Lithium Supply Amid Energy Transition

Chevron’s move mirrors a growing trend of oil companies pivoting toward critical minerals to secure positions in the energy transition. Smackover Lithium, a joint venture between Standard Lithium and Equinor, has already announced plans to produce 22,500 t/yr of lithium carbonate by 2028. Meanwhile, ExxonMobil signed a deal in November 2024 to supply up to 100,000 t of lithium carbonate to South Korea’s LG Chem, also sourced from the Smackover formation.

As demand for EV batteries accelerates, the region could become a cornerstone of the US lithium industry. Chevron’s participation underscores the convergence of oil and mining sectors, with traditional hydrocarbon firms now competing in battery materials.

Strategic Implications for US Lithium Supply

Chevron’s lithium strategy emphasizes domestic production to reduce reliance on imports and strengthen critical mineral supply chains. By applying oilfield brine extraction techniques, the company hopes to commercialize lithium with fewer environmental trade-offs.

Industry analysts believe oil companies could soon rival established lithium producers. As independent analyst Joe Lowry noted, “By early next decade, big oil and big mining will replace the likes of Albemarle at the top of the lithium world.”

The Metalnomist Commentary

Chevron’s entry into the lithium market highlights a strategic realignment of oil majors toward critical minerals. The Smackover formation is fast becoming a global lithium hotspot, and Chevron’s move strengthens US ambitions for secure, domestic supply. If successful, this strategy could reshape the balance of power in the lithium industry, positioning oil giants as major players in the battery supply chain.

Yahua LGES Morocco Lithium Refinery: $612mn push to scale EV materials

LGES

Yahua and LGES advanced the Yahua LGES Morocco lithium refinery to secure battery-grade supply. The partners will invest $612mn in phase one. As a result, the Yahua LGES Morocco lithium refinery targets 90,000 t/yr of lithium salts at nameplate. The project underscores how the Yahua LGES Morocco lithium refinery can regionalize cathode supply chains.

Phase-one scope and capacity

The companies will build 30,000 t/yr in the first phase. Ultimately, the refinery will reach 90,000 t/yr of lithium salts. However, they did not disclose construction or launch dates. Yahua already agreed in 2023 to supply LG Chem 30,000t of lithium hydroxide over 2023–26. Therefore, the project complements existing offtake frameworks.

Why Morocco for lithium refining

Morocco offers FTA access to the US and strong industrial logistics. Meanwhile, abundant phosphate resources support LFP battery ecosystems. Chinese peers CNGR, BTR, and Huayou are also investing there. The country aims to produce 1mn vehicles in 2025, including 107,000 EVs. Consequently, local demand and export channels can anchor long-term utilization.

Morocco continues to attract upstream-to-midstream capital. As a result, LGES strengthens diversification beyond China while keeping cost discipline. The refinery also aligns with OEM sourcing strategies under evolving trade rules. Battery makers increasingly localize key steps to manage tariff and compliance risks.

The Metalnomist Commentary

The Morocco siting checks three boxes: FTA optionality, phosphate adjacency, and maturing auto clusters. Watch for feedstock strategy and conversion mix between carbonate and hydroxide. Clear timelines and ESG disclosures will determine bankability and pace.

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

XTC

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

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

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

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

China CAM feedstock integration deepens links with global battery OEMs

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

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

The Metalnomist Commentary

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