Texas BESS Project Unites OCI, CPS Energy, and LG Energy Solution

CPS Energy

OCI Energy, CPS Energy, and LG Energy Solution launched a major Texas BESS project collaboration. The 120MW/480MWh Alamo City battery storage system will stabilize Bexar County's power grid. This strategic Texas BESS project partnership advances San Antonio's energy resilience goals significantly.

LGES Vertech Supplies Advanced Battery Technology

LG Energy Solution's US division Vertech will provide cutting-edge battery systems and management technology. OCI Energy develops the project while CPS Energy secures the storage capacity offtake agreement. Meanwhile, this partnership raises CPS's total contracted battery storage to 520MW. The facility targets operational status by late 2026.

The Texas BESS project supports grid stability during peak electricity demand periods. Furthermore, the 20-year agreement ensures long-term energy security for San Antonio residents. This development aligns with Texas's growing energy storage infrastructure requirements.

Strategic Impact on Texas Energy Transition

CPS Energy's Vision 2027 plan incorporates this battery storage system comprehensively. The initiative adds 1,710MW natural gas, 730MW solar, and 84MW wind capacity. Therefore, energy storage becomes crucial for renewable integration and grid balancing. The project demonstrates Texas's commitment to diversified energy solutions.

Battery energy storage systems transform Texas's electricity market dynamics fundamentally. Moreover, Korean battery technology strengthens US-South Korea clean energy partnerships. As a result, San Antonio gains enhanced grid resilience and sustainability capabilities. This Texas BESS project model could inspire similar developments statewide.

The Metalnomist Commentary

LG Energy Solution's participation highlights Korean battery manufacturers' aggressive US market expansion amid IRA incentives. The 480MWh capacity represents significant lithium-ion battery demand, potentially requiring 400-500 tonnes of lithium carbonate equivalent. This project exemplifies how energy storage drives critical mineral demand while enabling renewable energy integration at scale.

Electra Cobalt Offtake Extension Secures LG Energy Solution’s Battery Supply

Electra

Electra cobalt offtake terms have been extended by LG Energy Solution, giving the South Korean battery maker longer access to battery-grade cobalt sulfate from Canada. The updated agreement shows how battery manufacturers continue to secure regional critical mineral supply even as cobalt demand faces changing battery chemistry trends.

Under the revised deal, LG Energy Solution will take 60% of Electra Battery Materials’ cobalt sulfate production through 2029. The agreement also includes an option to extend the offtake terms to 2032. LGES first agreed in 2022 to buy battery-grade cobalt sulfate from Electra for three years.

The Electra cobalt offtake update is strategically important because it supports a North American refining route for battery materials. Electra is developing a cobalt sulfate refinery in Ontario, Canada, with commercial production expected in the fourth quarter of 2027.

Ontario Refinery Becomes Key to Regional Cobalt Processing

Electra’s Ontario cobalt refinery has faced delays, but the project is now moving forward again. Financial constraints and supply chain disruptions paused construction in 2023, before Electra restarted work in November after approving a $73 million construction budget.

The company expects early commissioning to begin in the fourth quarter of 2026. Commercial production is planned for the fourth quarter of 2027. Once operating, the refinery is expected to initially produce 5,120 tonnes per year of contained cobalt.

Electra’s nameplate capacity could reach up to 6,500 tonnes per year of contained cobalt. This scale would not transform global cobalt supply alone, but it could provide an important regional source of battery-grade cobalt sulfate for North American and allied battery supply chains.

LGES Strengthens Critical Mineral Security Through Long-Term Supply

LG Energy Solution’s extended agreement shows that battery makers still value secure cobalt supply despite growth in lower-cobalt and cobalt-free chemistries. High-nickel battery systems and certain performance-focused applications continue to require reliable cobalt inputs.

The Electra cobalt offtake deal also supports supply chain diversification away from highly concentrated refining regions. For LGES, Canadian cobalt sulfate could help reduce procurement risk and support compliance with regional sourcing expectations in North America.

For Electra, the updated agreement strengthens commercial visibility before the refinery reaches production. Long-term offtake support can help improve project bankability, especially for critical mineral processing assets that require high capital spending before revenue begins.

The Metalnomist Commentary

The Electra-LGES deal shows that cobalt has not disappeared from battery supply strategy. Even as chemistries diversify, battery-grade refining capacity in North America remains strategically valuable for automakers, cell makers, and policy-driven supply chains.

LG Energy Solution Secures 7.5GWh ESS Deal with Excelsior for U.S. Market

LG Energy Solution

LG Energy Solution (LGES) has signed a multi-year contract to supply 7.5GWh of integrated energy storage systems (ESS) to Excelsior Energy Capital, a U.S.-based renewable energy infrastructure investor. The deal, set to take effect in 2026, marks another significant step in LGES’s expansion in the U.S. grid-scale battery storage market.

The ESS systems will be manufactured in the United States using LGES’s containerized battery solution, incorporating lithium iron phosphate (LFP) long cells to enhance energy efficiency and safety. The financial details of the transaction have not been disclosed.

U.S. Content Compliance and Service Integration

The ESS units will be designed to meet U.S. content requirements, reinforcing LGES’s commitment to localizing battery production in compliance with Inflation Reduction Act (IRA) incentives. The company’s subsidiary, LGES Vertech, will oversee integration and lifecycle services for the energy storage systems.

Excelsior Energy Capital focuses on mid-market wind and solar energy investments across North America, making this partnership a critical step toward expanding renewable energy storage infrastructure in the region.

Expanding Presence in the U.S. Energy Storage Market

The deal follows LGES’s 8GWh agreement with U.S. renewable energy producer Terra-Gen in November 2023, further cementing its position as a leading supplier of battery energy storage solutions (BESS) for the growing U.S. renewable energy sector.

Anson lithium offtake deal with LG anchors US brine project

Anson Resources

Anson lithium offtake deal with LG Energy Solution marks a major step for US brine-based lithium supply. Under the Anson lithium offtake deal, LG Energy Solution will purchase 4,000 t/yr of battery-grade lithium carbonate from 2028. This Anson lithium offtake deal secures 40pc of planned nameplate output at the Green River project in Utah’s Paradox Basin.

Offtake secures long-term demand for Green River lithium

The Anson lithium offtake deal gives the Green River brine project a strong anchor customer before construction is complete. Pricing will follow a market-linked formula, aligning contract economics with prevailing battery-grade lithium carbonate prices. As a result, Anson can reduce price risk while still capturing upside in tighter markets.

Meanwhile, the five-year contract, plus an option for another five years, offers rare visibility on future cash flows. LG Energy Solution secures North American lithium carbonate to support its global cell manufacturing footprint. For Anson, this agreement strengthens its bankability as it finalises project financing and engineering.

Fast-track permitting for Green River is reportedly 90pc complete, which should shorten the path to first production. Therefore, the offtake timing from 2028 fits with Anson’s development schedule and gives lenders confidence in future sales volumes.

Korean partnerships deepen technology and market access

The offtake with LG builds on Anson’s earlier link-up with South Korea’s Posco on direct lithium extraction. Under a non-binding agreement, Posco will help build a demonstration plant to test DLE technology at Green River. This Korean axis could give Anson both advanced process technology and long-term market access in Asia.

At the same time, the royalty framework with the Utah government, scaled between 1–5pc, ties state revenues to market conditions. This structure can help align public and private interests through the commodity cycle. If prices strengthen, Utah benefits more, while Anson keeps flexibility during weaker periods.

In strategic terms, Green River’s brine resource adds another US-based option as automakers seek to diversify away from traditional hard-rock supply chains. With LG Energy Solution locked in, the project moves from concept to a credible node in regional battery materials infrastructure.

The Metalnomist Commentary

This offtake shows how mid-tier developers can de-risk brine projects by securing blue-chip battery customers early. If Anson delivers on DLE performance and schedule, Green River could become a template for future US brine developments. However, capex inflation, technology execution and permitting timelines will still determine whether contracted volumes translate into reliable long-term supply.

LG Energy Solution Invests in Lopal’s Indonesian LFP Plant to Strengthen Global Battery Supply Chain

LG Energy Solution (LGES)

$15.97 Million Investment Secures Access to 30,000t/year of Lithium Iron Phosphate Cathode Material in Phase 1

LG Energy Solution Expands LFP Footprint Through Strategic Investment in Indonesia

South Korea’s LG Energy Solution (LGES) has invested $15.97 million in Chinese firm Lopal Tech’s lithium iron phosphate (LFP) plant located in Indonesia. The deal grants LGES a 20% equity stake in PT LBM Energi Baru Indonesia, a third-tier subsidiary of Lopal.

The LFP facility, currently under Phase 1 development, aims to produce 30,000 tonnes per year of LFP cathode material. Phase 2 will triple that output to 90,000 tonnes. LGES’ funding is dedicated to Phase 1, aligning with its efforts to secure a diversified and stable supply of LFP materials.

LFP Demand Soars Amid EV Market Expansion

This strategic move reflects LGES’ growing interest in LFP chemistry, which is increasingly favored for affordable and long-range electric vehicles (EVs). In 2024, LGES also signed a long-term purchase agreement with Changzhou Liyuan, a Lopal subsidiary, for 160,000 tonnes of LFP cathode materials over five years.

The Indonesia-based facility enhances LGES’ global supply flexibility, enabling localized sourcing near key Southeast Asian and global markets. Moreover, Lopal’s credibility in the market has been reinforced by its five-year LFP supply contract with Ford, signed in January.

Regional Investment Strengthens Battery Industry Integration

LGES’ equity investment not only diversifies its raw material sourcing but also aligns with Indonesia’s ambitions to become a global battery manufacturing hub. The Southeast Asian nation has drawn increasing interest due to its abundant nickel and favorable investment policies.

This development highlights LGES’ proactive strategy in building a vertically integrated battery value chain to support global EV and energy storage system (ESS) markets.

Stellantis NextStar Battery JV Exit Signals a New Shift in North American Battery Strategy

NextStar Battery

Stellantis NextStar battery JV exit marks another important shift in North American battery strategy. Stellantis will sell its 49pc stake in NextStar Energy to LG Energy Solution. The joint venture built Canada’s first large-scale lithium-ion battery plant in Windsor, Ontario. As a result, Stellantis NextStar battery JV exit shows that automakers are rethinking how they participate in battery manufacturing.

This move matters because NextStar was a major industrial project. Stellantis and LG Energy Solution invested more than C$5bn in the venture. Yet the ownership structure is now changing even as the plant remains strategically important. Therefore, Stellantis NextStar battery JV exit is not a retreat from batteries. It is a shift in how the company wants to access them.

Stellantis will remain a customer of the facility after the transaction. That means the company still wants battery supply, but no longer wants to own nearly half of the manufacturing platform. Consequently, Stellantis NextStar battery JV exit reflects a broader trend toward supply access without full operating exposure.

EV Battery Joint Ventures Are Moving Into a New Phase

EV battery joint ventures are no longer being treated as fixed long-term ownership models. Automakers are increasingly separating battery access from battery plant ownership. That change is becoming visible across North America. As a result, EV battery joint ventures are entering a more flexible and less traditional phase.

The Stellantis decision fits a wider pattern. Other major automakers have also restructured or exited battery partnerships. General Motors sold its Michigan battery JV stake to LG Energy Solution in 2025. Ford also changed the structure of its BlueOval SK partnership later that year. Therefore, Stellantis NextStar battery JV exit looks less like an isolated deal and more like an industry reset.

This shift likely reflects changing economics and strategy. Battery manufacturing is capital-intensive, operationally complex, and increasingly competitive. Automakers may now prefer to secure output through commercial agreements while leaving plant ownership and operation to battery specialists. Meanwhile, battery makers can broaden their customer base more easily under that structure.

North American Battery Strategy Is Becoming More Specialized

North American battery strategy is now moving toward clearer specialization between automakers and cell producers. After the ownership change, NextStar will serve a broader customer base, including the energy storage system sector. That gives the plant more flexibility than a single-customer automotive model. As a result, the facility may become commercially stronger even as Stellantis reduces direct ownership.

This matters because battery plants are no longer only tied to electric vehicle demand. Energy storage systems are becoming a second major growth market. A battery facility that can sell into both EVs and stationary storage may have better long-term utilization and lower concentration risk. Therefore, North American battery strategy is becoming more diversified at the customer level.

The broader lesson is clear. Automakers still need batteries, but they may not want to carry the same level of manufacturing ownership risk as before. Battery producers, meanwhile, can gain more control and expand into wider end markets. Consequently, Stellantis NextStar battery JV exit may signal a more mature phase in the North American battery buildout.

The Metalnomist Commentary

This deal matters because it shows the battery race is no longer only about building plants. It is now about deciding who should own them, run them, and absorb the risk. Stellantis still wants battery supply, but LGES now looks better positioned to turn NextStar into a broader industrial platform.

GM and LG Energy Solution to Commercialize LMR Batteries by 2028

LMR Batteries

LMR Technology Aims to Cut Costs and Extend EV Range

GM and LG Energy Solution (LGES) plan to commercialize lithium manganese-rich (LMR) batteries by 2028, targeting next-generation electric trucks and SUVs. The joint venture, Ultium Cells, will begin LMR cell pre-production in late 2027 and transition to full commercial output in the U.S. in 2028.

The Focus Keyphrase "LMR batteries" is at the center of this strategic shift. These batteries replace expensive cobalt with lower-cost manganese, enabling higher energy density and reduced overall battery cost. GM intends to integrate LMR technology into its high-nickel Ultium platform, aiming for EVs that can exceed 400 miles of driving range.

GM Secures Supply Chain for LMR Battery Rollout

To support LMR battery deployment, GM is building a robust North American supply chain. The automaker has secured an offtake agreement with Lithium Americas for 100% of Phase 1 battery-grade lithium carbonate output from Thacker Pass, a major U.S. lithium project expected to complete construction by late 2027.

In parallel, GM’s focus on domestic sourcing extends to key materials like graphite and manganese, which are critical for LMR cell chemistry. By localizing supply chains, GM aims to enhance production resilience and meet U.S. clean energy standards.

Strategic Shift Reflects EV Industry’s Drive for Cost Efficiency

LMR batteries mark a pivotal innovation in reducing reliance on costly cobalt, often linked to geopolitical and ethical concerns. As automakers face growing pressure to lower EV costs while expanding range, LMR technology offers a scalable and sustainable alternative.

Furthermore, this move supports the Biden administration’s objectives under the Inflation Reduction Act, which incentivizes domestic sourcing of battery materials and EV production.

The Metalnomist Commentary

The commercialization of LMR batteries represents a breakthrough for GM and LGES in balancing cost, range, and supply security. By shifting to manganese-rich chemistries and fortifying local supply chains, GM is positioning itself as a leader in next-generation EV battery innovation — a move that could reshape material demand across the battery metals landscape.

LG Energy Solution Signs Six-Year Battery Supply Deal with Chery

China Chery

LGES to Deliver 8GWh of Cylindrical Batteries

LG Energy Solution (LGES) has signed a six-year deal with China’s Chery Automobile to supply 8GWh of batteries. Deliveries are scheduled to begin in early 2026, powering around 120,000 electric vehicles. The agreement focuses on LGES’ 46-series nickel-cobalt-manganese cylindrical batteries, which will be installed in Chery’s flagship EV models.

The partnership also leaves room for expansion. LGES indicated that further projects could extend to additional Chery models, reinforcing the growing collaboration between one of South Korea’s top battery producers and China’s state-owned automaker.

Strategic Partnerships in a Competitive Battery Market

The LGES-Chery deal highlights the company’s efforts to secure long-term partnerships amid shifting battery demand. In November 2024, LGES struck a five-year, 67GWh agreement with US EV start-up Rivian, with production centered in Arizona. These contracts demonstrate LGES’ dual strategy of supporting premium EV manufacturers while also pursuing cost-competitive alternatives.

However, the rise of lithium-iron-phosphate (LFP) batteries has reshaped the competitive landscape. LGES announced it will start mass production of LFP batteries for EVs in the second half of 2025. In parallel, it began mass-producing LFP batteries for energy storage systems (ESS) in the US this June, while partially converting its Wroclaw plant in Europe for ESS applications.

The Metalnomist Commentary

LGES’ deal with Chery underscores the importance of strategic alliances in an increasingly competitive EV battery market. By balancing high-performance nickel-based batteries with cost-efficient LFP solutions, LGES is positioning itself to meet diverse global demand. The company’s ability to maintain utilization rates will hinge on how effectively it scales production and navigates price pressures.

Utah Direct Lithium Extraction Project Advances With Posco-Anson Partnership

Anson Resources

Utah direct lithium extraction development is moving forward after Posco and Anson Resources agreed to build a demonstration plant at the Green River Lithium project in the Paradox Basin.

Utah direct lithium extraction will use Anson’s brine resources, while Posco will lead the design, construction and operation of the demonstration facility. Posco will also pay Anson a $5.2mn facilitation fee under the agreement.

Utah direct lithium extraction is strategically important because the project targets domestic battery-grade lithium production without relying on conventional evaporation ponds. Operations at the demonstration facility are scheduled to begin in 2027, with completion expected in 2028.

The wider Green River project is designed to produce 10,000 t/yr of lithium carbonate and has already secured major permits, financing interest and an anchor customer.

DLE Demonstration Will Test Commercial Processing Route

The demonstration plant will determine whether Posco’s DLE technology can recover lithium from Green River brines efficiently and consistently enough for commercial-scale production.

Direct lithium extraction is attracting growing interest because it can potentially reduce land use and shorten processing times compared with traditional brine evaporation.

However, commercial performance depends heavily on brine chemistry, recovery rates, reagent consumption and water management. Demonstration-scale operation is therefore a critical step before committing to full production.

Posco’s involvement adds technical and industrial expertise to the project. The Korean group has been expanding across battery materials and lithium supply chains, giving the Green River project a stronger downstream connection.

If the demonstration performs as expected, Anson would have a clearer route toward financing and construction of the 10,000 t/yr commercial operation.

Financing and Offtake Strengthen Green River Economics

Green River has already secured several important elements needed for project development.

The US Export-Import Bank has issued a $330mn letter of interest, providing a potential source of debt financing for the project.

Anson also has a binding offtake agreement with LG Energy Solution covering 40% of expected production. That provides long-term demand visibility and directly connects future Utah lithium output with battery manufacturing.

Estimated capital expenditure stands at $495mn, while projected operating costs are $4.37/kg of lithium carbonate equivalent.

Those economics could make Green River competitive if the DLE process reaches targeted recoveries and operating performance.

The combination of Posco technology, US financing support and LG Energy Solution offtake also illustrates how lithium projects are increasingly being developed through integrated partnerships rather than mining companies acting alone.

The Metalnomist Commentary

Green River is becoming a test of whether DLE can move from promising technology to bankable US lithium production. Posco’s involvement reduces technical risk, while Ex-Im financing and LG Energy Solution offtake strengthen the project’s commercial foundation.

Rivian Projects Flat to Lower EV Deliveries in 2025 Amid Component Shortages

RIVIAN PROJECT

US Automaker Faces Uncertainty Despite Cost Cuts and Regulatory Support

LG Energy Solution Deal Secures Future Battery Supply

Rivian, a US electric vehicle (EV) manufacturer, expects its 2025 vehicle deliveries to range from 46,000 to 51,000 units, which could be up to 11% lower than 2024’s total of 51,579 vehicles. The company cites ongoing component supply shortages as the main factor behind this conservative forecast.

Industry Headwinds Challenge Growth Plans

In addition to supply chain constraints, Rivian highlighted policy, regulatory, and demand uncertainties that could further affect its delivery numbers in 2025. These external factors remain largely beyond the company’s control, making projections especially challenging in today’s volatile EV market.

Rivian narrowed its annual loss to $4.7 billion in 2024, an improvement from the previous year’s $5.4 billion loss. This positive shift was aided by $300 million in regulatory credits under the US Inflation Reduction Act during the fourth quarter. Rivian also managed to cut costs by up to $31,000 per vehicle and increased the average selling price of its R1 model through the introduction of a high-value Tri-Motor trim.

Battery Supply Secured Through LG Energy Solution Partnership

To bolster its future production, Rivian signed a five-year agreement with LG Energy Solution in November, ensuring a supply of 67GWh of batteries to be produced in Arizona. This partnership is expected to enhance Rivian’s long-term supply chain resilience as the company scales production of its electric trucks and SUVs.

OCI, CPS, LGES Partner on Texas BESS Project

Battery Energy Storage System (BESS)

The Alamo City BESS project in Texas marks a major milestone in energy storage and US-Korea clean energy collaboration.

Texas Battery Storage Capacity to Expand with 120MW BESS

OCI Energy, CPS Energy, and LG Energy Solution Vertech will jointly develop the Alamo City Battery Energy Storage System (BESS). The 120MW/480MWh facility, located in Bexar County, Texas, will supply backup power during peak demand periods.

Under the deal, LGES Vertech will deliver the BESS units and energy management systems to OCI Energy, the project developer. CPS Energy, the municipal utility serving San Antonio, will purchase the storage capacity through a long-term offtake agreement.

This collaboration increases CPS Energy's battery storage portfolio to 520MW, ensuring greater grid reliability across south-central Texas.

BESS Project Aligns with Vision 2027 Energy Plan

The Alamo City BESS project is scheduled to begin operation by late 2026. It will play a crucial role in Vision 2027, CPS Energy’s roadmap to a balanced, reliable, and sustainable energy mix.

Vision 2027 includes plans for 1,710MW of natural gas, 500MW of firming capacity, 84MW of wind, and 730MW of solar. The addition of this battery storage system helps CPS diversify and decarbonize its energy infrastructure.

As a result, this project strengthens both energy resilience and cross-border cooperation between the US and South Korea in the energy transition.

The Metalnomist Commentary

The Alamo City BESS is more than a storage project—it’s a blueprint for municipal utilities navigating the clean energy transition. With players like OCI, CPS, and LGES joining forces, we’re seeing the integration of international technology with local grid needs. Expect similar regional collaborations to follow as US battery storage demand accelerates through 2030.

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.

Seymour Lithium Project Secures C$100 Million Boost from Export Development Canada

Green Technology Metals

Green Technology Metals, a prominent Canadian lithium developer, has announced a significant financial endorsement for its Seymour Lithium Project, receiving a letter of interest for up to C$100 million ($70 million) from Export Development Canada (EDC). This funding underscores the project's potential in contributing to the global lithium supply chain, crucial for battery production.

Strategic Financial Support for Lithium Production

The financial backing from EDC, a governmental body known for supporting Canadian exporters with financing solutions, is a major milestone for the Seymour Lithium Project based in Ontario, Canada. Set to commence production of spodumene concentrate in 2026, the project has already solidified a strategic partnership through a five-year offtake agreement with LG Energy Solution, a leading South Korean battery manufacturer. Under this agreement, LG Energy Solution will purchase 25% of the project's spodumene concentrate output, highlighting the international confidence in the venture and its significance in the battery materials market.

Impact on the Lithium Market and Future Outlook

The investment from EDC not only facilitates the advancement of the Seymour project but also signals strong governmental support for initiatives that are pivotal in the transition to renewable energy resources. This move is aligned with global efforts to enhance lithium production capabilities, essential for meeting the burgeoning demand for electric vehicles and renewable energy storage solutions.

Hyundai Motor and LGES Jointly Complete EV Battery Plant in Indonesia

This photo provided Hyundai Motor Group shows an aerial view of HLI Green Power, an EV battery plant built jointly with LG Energy Solution in Indonesia

Hyundai Motor Group announced the completion of its electric vehicle (EV) battery plant in collaboration with LG Energy Solution in Indonesia. This development marks a significant step in establishing a fully-integrated EV production system in the Southeast Asian nation. The Hyundai LG Indonesia Green Power (HLI Green Power) battery plant, located in Karawang New Industry City, will supply battery cells for the mass production of the KONA Electric EV at Hyundai's local manufacturing plant starting this month.

The establishment of this plant enables Hyundai to leverage a local, integrated production system, enhancing its strategic position in the Southeast Asian EV market. Production at HLI Green Power began in the second quarter of this year.

A grand completion ceremony was held, attended by 300 dignitaries, including Indonesian President Joko Widodo and key officials from both nations. Hyundai Motor Group's executive chair Euisun Chung highlighted the collaboration’s success in his speech, emphasizing the joint efforts in shaping the future of the EV ecosystem globally.

HLI Green Power, spanning 320,000 square meters, boasts advanced facilities with an annual output capacity of 10 gigawatt-hours, supporting over 150,000 EVs. The battery cells will be utilized not only in Hyundai’s Indonesian plant but also in various Hyundai and Kia models worldwide. Following the Ioniq 5, the KONA Electric is expected to significantly impact the Indonesian EV market.

Indonesia aims to achieve carbon neutrality by 2060 and plans to produce 600,000 EVs by 2030. Hyundai Motor Group is committed to furthering cooperation with Indonesia in other innovative areas, including hydrogen solutions and future air mobility.

Australia's Liontown Meets Lithium Output Target Amid Market Challenges

Australian lithium producer Liontown Resources has achieved a significant milestone by producing its first spodumene concentrate from the Kathleen Valley project, meeting its mid-2024 goal despite earlier financial difficulties. The first shipment of spodumene concentrate is scheduled for later in the current quarter (July-September), according to an announcement on July 31.

Liontown recently secured a short-term 10-month offtake agreement with Beijing Sinomine International Trade. Additionally, long-term contracts with major auto manufacturers and battery producers such as Tesla, LG Energy Solution, and Ford are expected to commence as the Kathleen Valley project reaches full production capacity over the next year.

The Kathleen Valley project is ramping up to a capacity of 3 million tons per year, a target anticipated by the end of the first quarter of 2025. Liontown also plans to expand this capacity to 4 million tons per year. The company’s funding deal with LG Energy Solution will facilitate early works to "preserve" the expansion option with a timeline set for 2027.

This new supply of lithium from Liontown comes amid a market downturn with ongoing concerns about oversupply. Australian financial services firm Macquarie has projected a potential slowdown in the pace of Australian production growth due to unencouraging price conditions.

In a related development, US lithium producer Albemarle announced on July 31 a halt to the construction of train 3 at its Kemerton lithium conversion facility in Western Australia, citing "ongoing industry headwinds" as part of a comprehensive review of its cost and operating structure. Each train at the facility has a processing capacity of 25,000 tons per year of lithium hydroxide. Albemarle will also place train 2 into care and maintenance while focusing on increasing production from train 1.

Commenting on Albemarle’s decision, Australia’s federal resources minister Madeleine King urged bipartisan support for the country's critical minerals and rare earths industry. King also called on political opposition parties to support Australia’s critical minerals production tax incentive to bolster local industry and jobs.

Liontown Lithium Sales Jump as Kathleen Valley Ramp-Up Gains Momentum

Liontown

Liontown lithium sales rose strongly in the fourth quarter of 2025 as Kathleen Valley continued its ramp-up. The company sold 112,000 dry metric tonnes of lithium concentrate during the quarter. That was 38pc higher than a year earlier. As a result, Liontown lithium sales now show stronger operating momentum from one of Australia’s most watched new lithium mines.

The performance matters because Kathleen Valley is still in a scale-up phase. Liontown is mining both open pit and underground ore at the operation. That gives the company more flexibility as it lifts production. Therefore, Liontown lithium sales are becoming a clearer indicator of how well the mine is moving toward steadier commercial output.

Pricing also remained supportive during the quarter. Liontown sold six parcels at an average realized price of $900 per dry metric tonne on a 6pc Li2O basis. Meanwhile, its all-in sustaining cost stood at $695 per dry metric tonne. Consequently, the gap between selling price and cost suggests improving commercial quality as volumes rise.

Kathleen Valley Lithium Mine Is Moving From Commissioning to Commercial Scale

The Kathleen Valley lithium mine is now shifting from early ramp-up toward more meaningful market participation. Liontown said it continues to increase production, which supports the stronger quarterly sales result. That matters because volume growth is often the hardest stage for new hard-rock lithium projects. However, Kathleen Valley now appears to be moving through that phase with growing confidence.

Product quality remains another key factor. The company sold concentrate at an average grade of 5.1pc lithium oxide during the quarter. While that sits below the 6pc reference basis used for pricing, it still shows the mine is delivering saleable material at rising volumes. Therefore, the Kathleen Valley lithium mine is strengthening both operational credibility and commercial visibility.

The company’s pricing strategy also adds flexibility. Liontown uses a mix of spodumene, lithium carbonate, and lithium hydroxide indexes with different quotation periods. That approach can help it respond to changing market conditions. As a result, Liontown lithium sales are not tied to a single pricing formula in a volatile market.

Spodumene Auction Pricing Adds a High-Value Option to Liontown’s Sales Mix

Spodumene auction pricing is becoming one of the most interesting parts of Liontown’s strategy. The company plans to retain 10-20pc of production for auction. It sold 10,000 dry metric tonnes in its first auction in November at $1,254 per dry metric tonne. That result was well above the quarter’s average realized price.

This matters because auctions can capture faster price movements than longer-term formula contracts. Liontown also said spodumene prices rose faster than lithium chemical prices during the quarter. That created an opportunity to extract more value from spot-facing sales. Consequently, spodumene auction pricing could become an important earnings lever as production expands.

The customer base also strengthens the company’s market position. Liontown has offtake agreements with LG Energy Solution, Chengxin, Tesla, and Ford. Meanwhile, LG Energy Solution now owns 8pc of the company after converting its convertible note into equity. Therefore, Liontown enters the next phase of ramp-up with both industrial backing and diversified commercial relationships.

The Metalnomist Commentary

Liontown is no longer just a development story. It is becoming a live test of how new spodumene producers balance contracted sales with auction upside. If Kathleen Valley keeps ramping smoothly, Liontown could become one of the more commercially agile lithium names in the market.

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.

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

LGES, Michigan Battery Plant

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

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

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

Lansing Facility Repositions Former EV Capacity Toward Grid Storage

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

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

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

Tesla

LFP Chemistry Gains Ground in US Energy Storage Supply Chains

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

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

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

The Metalnomist Commentary

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

Enovix Expands into Asia with Strategic South Korea Acquisition

Enovix

US-based battery technology company Enovix has announced the acquisition of a battery cell manufacturing facility in South Korea.

The move marks a strategic expansion aimed at addressing rising demand from the defense sector, a key target market for advanced energy storage solutions. The facility was acquired from SolarEdge, an Israeli energy technology firm. Though the financial terms remain undisclosed, the acquisition includes both the physical plant and essential development and production equipment.

Silicon-Anode Battery Production to Scale Up

Enovix specializes in silicon-anode lithium-ion batteries, known for higher energy density and longer life cycles than traditional graphite-based cells. With this new manufacturing footprint in Asia, the company aims to accelerate production to meet growing military and industrial needs. The South Korean facility will allow Enovix to scale its output more efficiently and closer to global clients in Asia-Pacific, enhancing both delivery timelines and cost efficiency. This acquisition reflects a broader trend of American tech firms diversifying production locations amid geopolitical and supply chain pressures.

Broader Market Implications for Defense and Energy Storage

The defense industry has increasingly turned to high-performance lithium-ion batteries to power advanced systems, from drones to tactical communications. Meanwhile, South Korea remains a global battery production hub, home to major players like LG Energy Solution and Samsung SDI. Enovix’s entry into this ecosystem may also signal potential partnerships or talent acquisitions in one of the world’s most competitive battery markets. By localizing part of its manufacturing, Enovix not only enhances capacity but also strengthens its resilience against future disruptions in the US-China technology corridor.

The Metalnomist Commentary

Enovix’s move into South Korea highlights a strategic pivot toward regionalized production to support defense-grade lithium-ion batteries. As demand spikes for high-energy-density storage solutions, this acquisition strengthens the company’s hand in a competitive and geopolitically sensitive industry. For metals suppliers and cell integrators, it also signals growing urgency to align with agile, dual-continent battery players.

GM Redwood Battery Storage Project Extends EV Battery Value Chain

BESS

GM Redwood battery storage project will deploy repurposed electric vehicle battery packs at a General Motors plant in Michigan, extending the useful life of batteries before final recycling.

GM Redwood battery storage project will combine 100 reused EV battery packs into a 1.5MW/7.2MWh battery energy storage system. The installation will provide dispatchable power and help reduce electricity costs at the manufacturing site.

GM Redwood battery storage project is significant because it connects battery manufacturing, vehicle use, second-life energy storage and materials recovery within one supply chain. Redwood estimates the system will save more than $3mn in electricity costs over its operating life.

The project also shows how retired EV batteries can remain economically valuable even after they no longer meet automotive performance requirements.

Second-Life Batteries Add Value Before Recycling

EV batteries typically retain significant usable capacity when they are removed from vehicles. That remaining energy storage capability can support stationary applications where weight and space are less restrictive than in automotive use.

Repurposing packs for BESS applications can therefore delay recycling while extracting additional economic value from the battery.

For industrial facilities, storage systems can help manage peak electricity demand, provide backup power and shift energy consumption toward lower-cost periods.

The Michigan installation gives GM a direct opportunity to reduce plant electricity costs using batteries already linked to its own vehicle ecosystem.

This model also reduces the need for newly manufactured cells in some stationary storage applications. That can lower incremental demand for lithium, nickel, cobalt, graphite and other battery materials.

However, second-life systems still require testing, battery management and safety controls because used packs can have different degradation histories and performance characteristics.

Redwood Builds Closed-Loop Battery Supply Chain With GM

Redwood's relationship with GM extends across multiple stages of the battery lifecycle. The recycler handles manufacturing scrap, end-of-life EV packs and now second-life energy storage deployment.

Redwood has already received more than 28,000t of material from GM, with another 10,000 EV battery packs expected to enter the pipeline.

The company also works with Ultium Cells, GM's joint venture with LG Energy Solution, to recycle battery production scrap from facilities in Ohio and Tennessee.

This creates a more integrated materials loop. Manufacturing scrap can return quickly to recycling, while vehicle batteries can first enter stationary storage before eventually being processed for material recovery.

The approach could become increasingly important as EV battery volumes grow. Recycling alone captures raw materials, but second-life deployment can add another revenue stage before final recovery.

For automakers, that can improve battery economics while strengthening access to recycled lithium, nickel, cobalt and copper over the longer term.

The Metalnomist Commentary

GM and Redwood are showing that the battery circular economy does not begin with recycling. Second-life storage can create an additional commercial stage between vehicle use and materials recovery, improving both battery economics and supply-chain efficiency.