Ronbay Begins High-Nickel NCM Precursor Shipments from South Korea

Ronbay

Strategic Expansion into Global Supply Chains

Chinese battery material giant Ningbo Ronbay has started shipping ultra-high nickel NCM precursors from its Chungju, South Korea plant. The product contains a minimum of 90pc nickel and targets global battery makers. Current NCM precursor capacity totals 66,000 t/yr — 60,000 t/yr in China and 6,000 t/yr in South Korea.

South Korea’s extensive free trade agreements offer Ronbay significant advantages in bypassing rising trade barriers. The company expects these shipments to strengthen ties with clients in Japan, South Korea, Europe, the US, and Southeast Asia, especially amid the US Inflation Reduction Act and EU Critical Material Act.

Capacity Growth and Recycling Initiatives

Ronbay plans to expand South Korean NCM capacity to 26,000 t/yr and build a 20,000 t/yr plant in Indonesia by 2026. Competitors CNGR, Huayou Cobalt, and GEM are also investing in precursor facilities overseas to mitigate trade restrictions.

The company will launch a global battery recycling system in 2027, with plants in the US, Europe, Japan, and Southeast Asia. This network will process black powder from waste batteries into high-purity precursor materials, though capacity figures remain undisclosed.

Ronbay produced 137,351 t of CAM in 2024, up 34pc year-on-year. NCM accounted for around 120,000 t of sales, while LMFP was added to its portfolio in 2022 through the acquisition of Tianjin Skylandone. The firm targets 130,000–150,000 t of CAM production in 2025, and is building a 20,000 t/yr NCM plant in Poland, with the first phase due this year.

The Metalnomist Commentary

Ronbay’s move to produce high-nickel NCM precursors in South Korea is a calculated response to geopolitical trade pressures. By leveraging South Korea’s trade agreements and diversifying production locations, the firm is securing market access in key EV regions. This multi-pronged strategy — combining capacity expansion with recycling — positions Ronbay strongly in the global energy transition supply chain.

GEM Expands NCM Precursor Capacity in Indonesia to Meet Growing Global Demand

Green Eco-Manufacture (GEM)

Green Eco-Manufacture (GEM), a leading Chinese producer of battery metals and materials, has announced plans to significantly expand its nickel-cobalt-manganese (NCM) precursor production capacity in Morowali, Indonesia. This strategic move aims to capitalize on the surging demand for high-nickel ternary precursor materials used in power batteries, particularly in overseas markets like the US and Europe.

Capacity Boost and Strategic Integration

GEM's expansion project will increase its NCM precursor capacity to an impressive 50,000 tonnes per year, a substantial jump from the initially planned 30,000 tonnes per year.  The entire project, with a total investment of 2.15 billion yuan ($294 million), is slated for completion in October. This increased capacity will enable GEM to better serve the growing needs of the electric vehicle (EV) market.

GEM's strategy involves developing its existing facilities in both Indonesia and South Korea to create a vertically integrated industrial value chain. This chain will span from nickel feedstock to precursor materials and ultimately to cathode active material (CAM), thereby strengthening GEM's competitive edge and solidifying its market position in the US and Europe.  This integrated approach will allow GEM to control its supply chain and ensure a stable supply of high-quality materials.

Meeting the Needs of Battery Manufacturers

This expansion comes as GEM recently secured a significant supply agreement with South Korean battery maker EcoPro. In August 2024, the two companies signed a deal for GEM to supply 265,000 tonnes of high-nickel NCM precursors to EcoPro BM, EcoPro's subsidiary specializing in high-nickel power battery ternary CAM for new energy vehicles, between 2025 and 2028.  

Further strengthening their partnership, EcoPro announced plans to collaborate with GEM in the first quarter of the year to establish an integrated production facility in Indonesia, encompassing activities from smelting to CAM production.  EcoPro is also restructuring its operations, planning to merge its battery recycling unit Ecopro CNG and lithium unit Ecopro Innovation.

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.

China’s CNGR Boosts Ternary Precursor Production in First Half of 2024

CNGR Advanced Material

CNGR Advanced Material, a leading Chinese manufacturer of lithium-ion battery cathode materials, reported an increase in its production of nickel-cobalt-manganese (NCM) oxide precursors during the first half of 2024. This growth is largely driven by rising demand from the electric vehicle (EV) market, reinforcing CNGR's strong position in the battery materials sector.

Expanding Global Capacity to Meet Demand

In the first half of 2024, CNGR's NCM precursor output rose by 8% to 114,342 tons, operating at 71% capacity. Cobalt tetroxide and iron phosphate production also saw significant activity, reaching 11,932 tons and 14,664 tons, respectively, operating at 98% and 88% capacity rates. To meet increasing global demand, CNGR is expanding its production base with plans to add 230,000 tons of additional NCM precursor capacity, including 120,000 tons in Morocco and 110,000 tons in South Korea.

The company also made strides in the cobalt market, delivering cobalt metal from its 2,000 t/yr production facility in Qinzhou, Guangxi, starting in July. In addition, CNGR’s nickel cathodes received approval for listing on the London Metal Exchange in February 2024, further establishing the company’s role in the global battery supply chain.

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.

China's Gem Delivers Ultra-High Nickel NCM Precursors

GEM

Breakthrough in NCM Technology Strengthens China’s Battery Supply Chain

Chinese battery materials firm Green Eco-Manufacture (GEM) has achieved a major milestone by delivering its first ultra-high nickel content NCM precursors. The delivery, made by its subsidiary Jingmen Gem New Material on 7 April, marks the world’s first large-scale production of 9-series NCM precursors. These materials play a critical role in high-energy lithium-ion batteries, particularly for electric vehicles.

Gem plans to produce 3,000 tonnes per month of 9-series NCM precursors. This follows its successful commercialization of 8-series high nickel content precursors in 2022, signaling its leading position in the high-nickel battery materials market.

Indonesia Operations Drive Nickel Supply Security

To secure raw material feedstock, Gem has built 150,000 t/yr of mixed hydroxide precipitate (MHP) capacity in Indonesia. In the first quarter of 2025, Gem shipped 25,000 tonnes of MHP, achieving over a 95% capacity run rate. The firm also aims to boost its high-nickel precursor production in Indonesia to 50,000 t/yr.

In November 2024, Gem signed a key agreement with PT Vale Indonesia (PTVI) to co-develop a high-pressure acid leaching (HPAL) plant in Central Sulawesi. The facility will produce 66,000 t/yr of nickel metal equivalent MHP, further reinforcing Gem’s supply chain for battery-grade nickel.

China Boosts Imports of Indonesian Nickel

China’s dependence on Indonesian nickel continues to deepen. Imports of MHP from Indonesia surged 73% year-on-year to 258,709 tonnes in the January–February 2025 period. This growth stems from efficient production at Chinese-owned facilities in Indonesia, ensuring a steady flow of critical battery inputs despite global supply chain volatility.

The Metalnomist Commentary

Gem's advancement in ultra-high nickel NCM precursors reflects China’s growing command of the battery materials value chain. By integrating upstream supply from Indonesia and advancing precursor technologies, China is setting the pace in next-generation EV materials while reducing its dependence on traditional suppliers.

GEM Ultra-High Nickel Precursor: Mass Shipments Begin from Jinmen

GEM

GEM ultra-high nickel precursor shipments have started, marking a scale breakthrough in EV battery materials. The company will ship 2,000 t/month from its Jinmen plant. As a result, the GEM ultra-high nickel precursor will supply major international battery makers. The milestone positions the GEM ultra-high nickel precursor at the center of next-gen high-energy cathode supply.

Core–shell design targets energy and safety

GEM launched a 9-series quaternary core–shell precursor at mass scale. The three-layer structure upgrades a traditional single-layer design without changing metal ratios. Therefore, manufacturers can raise energy density, cycle life, and safety. Nickel-rich NCM and NCA lines benefit, while safety has long challenged high-nickel chemistries. Meanwhile, GEM’s 8-series core–shell debuted in 2022, with the 9-series unveiled in April.

Shipments accelerate premium cathode supply chains

GEM will dedicate all 2,000 t/month to leading global firms. This supports gigafactory ramps as EV ranges push higher. Moreover, the material suits solid-state batteries under active development. GEM remains a top cobalt refiner and CAM precursor producer. Ternary precursor shipments reached 189,000t in 2024, up 5pc year over year. Consequently, downstream buyers gain volume and design flexibility without requalifying metal blends.

Ultra-high nickel platforms expand OEM options under cost and tariff pressure. However, qualification, safety validation, and powder morphology control remain critical. As a result, process stability at Jinmen will determine long-run competitiveness. Battery makers will watch swelling, thermal runaway margins, and impurity management.

The Metalnomist Commentary

GEM’s core–shell architecture balances high nickel with durability and safety, which buyers demand. Watch how quickly 9-series wins long-term offtakes beyond pilot lines. If Jinmen sustains quality at volume, rivals must match layered particle engineering, not just nickel content.

Weak NCM Demand Restrains Nickel Consumption Growth in China

Lygend

China’s nickel consumption growth has been constrained this year, primarily due to weak demand in the nickel-cobalt-manganese (NCM) cathode active material (CAM) sector and the increasing market dominance of lithium-iron-phosphate (LFP) CAM.

NEV Battery Market Trends

Despite a 37% year-on-year increase in China’s new energy vehicle (NEV) battery production from January to September, NCM battery growth lagged at 19.2%, while LFP surged by 45.6%, according to the China Innovative Alliance of Automotive Battery Industry.

• NCM precursor output grew by 4%.
• NCM CAM production rose by 10%, highlighting a slower growth trend compared to downstream NEV battery production.
• Nickel sulphate output is projected to decline by 1%, even though total supply is expected to rise by 6% due to increased imports.

The discrepancy in growth rates between upstream, midstream, and downstream sectors is expected to stabilize next year as inventories decline and buying interest increases.

Rising Imports of MHP and Matte

China’s imports of mixed hydroxide precipitate (MHP) and matte, key feedstocks for nickel sulphate and class I nickel production, have risen sharply:

• MHP Imports: Up 17% to 1.07 million tons during January-September, with Indonesia accounting for 57% growth due to increased capacity from Chinese companies such as Lygend’s ONC, GEM’s QMB project, and Huayou’s Huafei facility.
• Matte Imports: Increased by 61% to 341,494 tons, driven by the ramp-up in new capacities.

Transition in Nickel Matte Production

A significant portion of the matte imports consists of low-grade matte (20% nickel content), which is further refined into high-grade matte (70% nickel content) in China for nickel sulphate or cathode production. However, some matte producers have shifted focus to producing nickel pig iron (NPI) due to its higher profit margins.

Nickel Metal Output Outlook

While nickel sulphate production is forecast to dip, China’s overall nickel metal output is expected to surge by 34%, reaching 320,000 tons in 2024. This increase underscores the country’s reliance on imported feedstocks and growing domestic capacity to meet demand.

Future Prospects

As inventories dwindle and buying interest rebounds, 2024 is likely to see a narrowing of growth disparities across the supply chain. However, China’s nickel market remains under pressure from fluctuating demand patterns, shifts in feedstock sourcing, and competition between NCM and LFP technologies.

Chengtun halts Indonesian nickel matte project as battery materials economics shift

Chengtun

Chengtun halts Indonesian nickel matte project after reassessing the market outlook. The company says the investment no longer meets expectations. As a result, Chengtun halts Indonesian nickel matte project before construction begins.

The paused plan targeted Weda Bay on Halmahera, Indonesia. Chengtun formed a venture with a planned $245mn investment. The facility aimed for 40,000 t/yr of nickel matte in nickel equivalent.

Why Chengtun paused Weda Bay expansion

Chengtun halts Indonesian nickel matte project while it restructures its Indonesian growth plan. The project missed its original late-2023 launch window. However, it never advanced beyond planning and preparation.

Chengtun will dissolve the ChengMach Nickel venture after the halt. The decision reduces near-term supply growth expectations at Weda Bay. Therefore, market participants may reassess which projects stay financeable.

Meanwhile, Chengtun keeps operational flexibility through its Youshan Nickel project at Weda Bay. The site can switch output across high-nickel matte, low-nickel matte, and NPI. That flexibility helps the company respond faster to changing price signals.

What it means for nickel sulphate and NCM battery supply

Nickel matte feeds nickel sulphate production for battery materials. Nickel sulphate supports NCM precursor manufacturing alongside cobalt and manganese sulphates. As a result, the pause signals pressure across the upstream EV battery chain.

Battery producers still require stable nickel units and consistent chemistry. However, producers now scrutinize conversion routes and margin stacking more aggressively. Therefore, integrated refiners may capture advantage when they control feed and logistics.

The decision also highlights Indonesia’s evolving role in battery metals. Indonesia still offers scale and resource depth at Weda Bay. Yet investors now demand clearer returns across sulphate, precursor, and cathode pathways.

The Metalnomist Commentary

Chengtun halts Indonesian nickel matte project as the industry shifts from growth-at-all-costs to margin discipline. However, flexible plants will still win when demand rebounds. The next cycle will reward operators who can pivot between battery and stainless markets.

Ronbay's Rising Battery Sales Driven by EV Demand

Ningbo Ronbay, a leading Chinese manufacturer of battery cathode active materials (CAM), reported a significant increase in sales during the first half of 2024, fueled by the growing demand in the electric vehicle (EV) sector. The company saw its CAM sales rise by 18% year-on-year, totaling 54,900 tonnes from January to June. The majority of these sales were in lithium-nickel-cobalt-manganese oxide (NCM), with 52,700 tonnes sold, while the remaining 2,200 tonnes consisted of other CAMs such as lithium manganese iron phosphate (LMFP).

Ronbay has diversified its product range since acquiring Tianjin Skylandone in 2022, which allowed it to add LMFP to its portfolio. This move has paid off, with LMFP shipments surging by 166% in the first half of the year, although specific volumes were not disclosed. The company also made strides in the solid-state battery market, delivering nearly 100 tonnes of 9 series solid-state battery CAM in the first quarter of 2024.

To support its growth, Ronbay has expanded its total cathode material production capacity to 200,000 tonnes per year, with significant investments in both China and South Korea. The company is actively advancing the second phase of its South Korean project, which includes the construction of a 40,000 t/yr NCM production line and a 20,000 t/yr LMFP line. Ronbay is also planning an 80,000 t/yr NCM precursor plant in South Korea and has established production facilities across various Chinese cities.

Looking ahead, Ronbay is eyeing expansion into the European and U.S. battery markets, with potential production bases in Poland and newly established subsidiaries in the U.S. This global expansion aligns with the rapid growth of China's new energy vehicle market, which saw a 32% increase in production and sales during the first half of the year, reaching 4.944 million units.

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

Minmetals New Energy

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

Investment Details and Supply Agreement

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

Expanding Capacities and Market Impact

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

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

GEM raises CAM and cobalt tetroxide sales amid shifting battery supply chains

GEM

GEM raises CAM and cobalt tetroxide sales in the first half of 2025. GEM raises CAM and cobalt tetroxide sales on stronger consumer electronics demand and Indonesian feedstock growth. As a result, GEM raises CAM and cobalt tetroxide sales while ternary precursor shipments decline.

Product mix shifts and headline numbers

GEM’s cobalt tetroxide shipments reached 14,590t, up 39% year on year. CAM sales rose 74% to 12,399t. However, ternary precursor shipments fell about 14% to 86,000t. The mix reflects electronics-led cobalt oxide demand and slower NCM and NCA precursor offtake.

Securing feedstock with Indonesian MHP capacity

GEM secures cobalt feedstock via Glencore contracts and its Indonesian MHP projects. Total smelting capacity reached 150,000 t/yr nickel metal equivalent in 2024. In January–June, Indonesia produced 43,977t nickel metal equivalent and 3,667t cobalt metal equivalent. Therefore, MHP output mitigated DRC export risks since the 22 February cobalt ban.

Downstream positioning and long-term contracts

GEM signed a supply deal with EcoPro for 265,000t of ternary precursors in 2025–28. The firm also supplies CATL, BYD, LGES affiliates, and Kennametal. Meanwhile, its closed-loop footprint spans battery recycling, cobalt salts, CAM, cobalt metal and powders, and nickel metal.

The Metalnomist Commentary

GEM’s strategy balances near-term cobalt oxide strength with longer-dated ternary commitments. Indonesian MHP integration meaningfully hedges geopolitical risk and price volatility. Watch precursor recovery timing versus EV demand, and CAM margin discipline.

Posco Future M begins cathode exports to US

Posco Future M

Posco Future M begins cathode exports to US as it ships high-nickel NCM-A materials to Ultium Cells. The move uses self-produced precursors and strengthens North American EV supply chains. As a result, Posco Future M begins cathode exports to US with IRA-aligned feedstock and full upstream integration. This milestone confirms scale, quality, and localization readiness as Posco Future M begins cathode exports to US.

What shipped, from where, and to whom

Posco Future M dispatched high-nickel cathodes made with in-house precursors. Ultium Cells will use them for EV battery production. The shipment followed completion of its 45,000 t/yr precursor plant in Gwangyang. The facility started on 10 June, with first cargo on 26 July. Precursors of nickel, cobalt, and manganese combine with lithium at the Gwangyang cathode plant. The company targets consistent quality and cost control through vertical integration.

Why this matters for US battery supply chains

The delivery supports GM’s Ultium platform with non-Chinese nickel inputs. Posco Group converts nickel into high-purity nickel sulfate for CAM. Meanwhile, Posco Pilbara Lithium Solution supplies lithium from Australian spodumene. Posco Lithium Solution complements this with Argentine brine supply. These sources enhance IRA compliance and traceability for US-bound batteries. OEMs gain reduced risk, shorter timelines, and improved procurement flexibility.

Capacity outlook and localization pathway

Posco Future M and GM are building Ultium CAM in Bécancour, Quebec. The 30,000 t/yr cathode plant targets completion in 2026. Therefore, initial exports bridge near-term demand before local output ramps. The model mixes offshore precursor strength with regional CAM finishing. This approach helps stabilize costs and meet regional content rules. It also diversifies North American cathode supply beyond LFP.

The Metalnomist Commentary

Posco’s integrated precursor-to-cathode chain is a competitive advantage. Expect tighter OEM-supplier ties as IRA rules harden and Ultium volumes scale. Watch Bécancour’s CAM launch; it will set North America’s high-nickel baseline.

China's GEM Increases Battery Material Sales in 1H

Sales Surge Driven by Full Capacity

Green Eco-Manufacture (GEM), a leading Chinese cobalt refiner and lithium cathode active material (CAM) precursor producer, reported a significant increase in sales of CAM precursors, cobalt, and nickel for the first half of the year. The company attributed this rise to full capacity operations across its main product lines.

GEM's sales of ternary precursors, including lithium nickel-cobalt-manganese (NCM) and lithium nickel-cobalt-aluminium (NCA), surged by 45% year-on-year to exceed 100,000 tons. The firm also experienced a remarkable 133% increase in ternary CAM sales, reaching 7,119 tons.

Expansion and Strategic Partnerships

In August, GEM secured a supply agreement with South Korean lithium-ion battery CAM manufacturer Ecopro for 265,000 tons of ternary precursors from 2025 to 2028. The company is also expanding its production capabilities, with a new 50,000 tons per year ternary precursor plant in Indonesia set to start operations in the latter half of this year.

GEM's cobalt tetroxide sales soared by 163% year-on-year to 10,500 tons, driven by higher demand from the consumer electronics sector. The company sources cobalt from long-term contracts with Switzerland-based Glencore and from its mixed hydroxide precipitate (MHP) projects in Indonesia.

Nickel Production and Cost Reduction Goals

GEM's nickel MHP shipments from its QMB project in Indonesia doubled to over 20,000 tons nickel metal equivalent during January-June, with a full capacity rate. The firm plans to expand its nickel smelting capacity to 150,000 tons per year by year-end and aims to ship 60,000 tons of MHP in 2024. GEM also targets reducing MHP smelting costs to $7,500 per ton by the end of the year, benefiting from decreased sulfuric acid costs.

The company is involved in recycling power batteries, cobalt, nickel, and tungsten scrap, with recycled cobalt shipments reaching 8,987 tons and power battery recycling up by 37% to 16,300 tons or 1.84 GWh in the first half of the year.

GEM serves a global client base, including South Korean firms like Ecopro, Samsung SDI, SK On, and LGC, Chinese companies such as XTC New Energy Materials and BYD, as well as international entities like Umicore, Sandvik, and Kennametal.

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.

Brunp Battery Materials Project Expands CATL’s Recycling and LFP Supply Chain

Brunp Battery Materials

Brunp battery materials project development has advanced in Yichang, Hubei province, as Guangdong Brunp Recycling Technology broke ground on a 500,000 t/yr production complex. The project carries total investment of 6.1bn yuan, or about $840 million.

The new plant is designed to produce 300,000 t/yr of iron phosphate, 180,000 t/yr of nickel sulphate and 12,000 t/yr of cobalt sulphate. Construction is scheduled for completion in the second half of 2027.

Brunp battery materials project investment strengthens the upstream materials platform behind China’s battery industry. Brunp is a controlling subsidiary of CATL, the country’s largest battery producer, and focuses on recycling, resources and battery materials.

Yichang Base Builds Scale Across LFP and Recycling

The Yichang base will become a major integrated battery materials hub once the new project is operational. It will have 750,000 t/yr of iron phosphate capacity, 450,000 t/yr of lithium iron phosphate capacity and 500,000 t/yr of battery recycling capacity.

Brunp has already made several investments in Yichang since entering the city in 2021. The company launched a 450,000 t/yr LFP factory in December, reinforcing the site’s role in China’s expanding phosphate-based battery supply chain.

This matters because LFP batteries continue to gain share in electric vehicles and energy storage systems. Large-scale iron phosphate and LFP capacity gives CATL-linked supply chains stronger control over cost, material availability and recycling integration.

Recycling Capacity Deepens China’s Battery Materials Control

Brunp Recycling processed more than 200,000t of power batteries in 2025. The company now plans to raise total recycling and processing capacity to more than 1mn t/yr by 2030.

The strategy reflects a wider shift in battery materials sourcing. Recycling is becoming a strategic source of nickel, cobalt, lithium and other battery inputs, especially as governments and manufacturers seek lower-carbon and more secure supply chains.

The Yichang project also adds nickel sulphate and cobalt sulphate capacity, linking recycling with precursor material production. However, weaker upside in metals prices has limited buyer appetite in China’s black mass market, even as NCM payables edged higher in early March.

The Metalnomist Commentary

Brunp’s Yichang expansion shows how CATL is tightening control over the full battery materials loop, from recycling to LFP and sulphate production. The project also underlines China’s advantage in building scale across both primary materials processing and circular battery supply chains.

China’s GEM to Back Indonesia’s Green Nickel with HPAL Investment

Green Eco-Manufacture (GEM)

Chinese battery metals leader Green Eco-Manufacture (GEM) has entered into a groundbreaking partnership with Indonesia's PT Vale Indonesia (PTVI) to develop a high-pressure acid leaching (HPAL) project in Central Sulawesi, Indonesia. This venture aims to bolster the green energy transition in the nickel sector, a vital component of the rapidly expanding electric vehicle (EV) industry.

Key Highlights of the HPAL Project

The HPAL facility will process nickel ore supplied by PTVI to produce 66,000 tons per year (t/yr) of mixed hydroxide precipitate (MHP) in nickel metal equivalent. MHP is a precursor for advanced battery materials like nickel-cobalt-manganese (NCM) and cathode active materials (CAM), essential for lithium-ion batteries used in EVs.

Ownership Dynamics and Strategic Growth

Initially, GEM held a 70% stake in the project, while PTVI owned the remaining 30%. However, GEM’s ownership will be reduced to 25% or less, as additional third-party investors join the initiative. This strategic realignment aims to diversify financial backing and enhance the project’s scalability.

Expansion of GEM’s Nickel Ventures

GEM recently completed the second phase of its QMB nickel project in Morowali, Indonesia, achieving a total production capacity of 65,000 t/yr of nickel metal equivalent in MHP. This marks a significant milestone in its push to solidify its footprint in Indonesia’s resource-rich battery ecosystem.

China-Indonesia Collaboration in the EV Sector

The partnership reflects a broader trend of increasing China-Indonesia collaboration in the EV supply chain. Earlier this year, Indonesian mining giant PT Aneka Tambang (Antam) transferred subsidiary shares to China’s Contemporary Amperex Technology Co., Ltd. (CATL), the world’s largest EV battery manufacturer.

As the global EV market continues to expand, these collaborations are poised to make Indonesia a cornerstone of the world’s green energy revolution, leveraging its abundant nickel reserves to meet soaring demand for sustainable battery materials.