SK On LFP supply to North America advances with L&F partnership

SK On

SK On LFP supply to North America advances through a new pact with L&F. The agreement targets LFP cathode materials for the North American ESS market. SK On LFP supply to North America aligns with its localization strategy and plant build-out. The partners will finalize volume and tenor for a medium- to long-term deal.

Partnership scope, localization, and capacity

The alliance prioritizes localized LFP cathode supply for grid and data-center storage. SK On plans to repurpose lines to develop LFP battery production. It already operates two U.S. plants and is building four more. Total capacity is expected to exceed 180 GWh once fully online.

Market impact and midstream implications

Demand for LFP cells in North America is accelerating with AI data centers. Energy storage growth also supports faster LFP adoption and procurement. However, midstream capacity in the U.S. remains underdeveloped. It is unclear if cathode production will be domestic or imported.

The partnership strengthens resilience across a maturing U.S. battery chain. As a result, buyers gain another Tier-1 LFP source for ESS deployments. SK On LFP supply to North America should improve lead times and cost control. Meanwhile, policy incentives could favor deeper localization over imports.

The Metalnomist Commentary

This move tightens ESS supply optionality ahead of large data-center builds. The deciding factor will be U.S. cathode siting and qualification speed. Watch IRA eligibility, precursor sourcing, and long-term offtake structures.

SK On Secures $9.6B Loan for US Battery Plants, Boosting EV Production Capacity

BlueOval SK

South Korean battery manufacturer SK On has successfully secured a loan of up to $9.6 billion for the construction of three new battery plants in the United States. The plants, located in Tennessee and Kentucky, will have a combined production capacity of 120 GWh per year, primarily dedicated to supplying batteries for Ford Motor's electric vehicles (EVs), including models under the Ford and Lincoln brands.

Major Investment in EV Battery Production

This loan, the largest ever awarded under the U.S. Department of Energy’s (DOE) Advanced Technology Vehicles Manufacturing Program, is a significant step towards bolstering the country’s position in the rapidly expanding electric vehicle (EV) market. The funds will be used to develop three state-of-the-art battery production facilities, which are set to contribute to Ford’s ambitious EV production goals.

The collaboration between SK On and Ford Motor has already led to the formation of BlueOval SK, a joint venture designed to build the largest EV battery production operation in the U.S. Despite the recent slowdown in the EV industry, which prompted Ford to delay the construction of its second Kentucky plant in October 2023, production at the first two plants is still scheduled to commence in 2025.

Strategic Importance of the DOE Loan

This loan represents a key investment in the future of the U.S. automotive and energy sectors. As the U.S. seeks to meet rising domestic demand for EVs and maintain its leadership in the global electric vehicle market, the DOE's Advanced Technology Vehicles Manufacturing Program plays a vital role in providing financial support for innovative technologies. By securing this funding, SK On ensures it is well-positioned to support Ford’s EV ambitions while contributing to the nation's electrification goals.

With the ongoing growth of Ford's electrified vehicle sales—reaching 257,693 units between January and November 2024, marking a 40% increase from the same period last year—this new production capacity is expected to play a pivotal role in meeting rising demand. SK On’s battery production capabilities have also seen growth, with the company’s installations increasing by 9.5% year-on-year, capturing 4.5% of the global market share, according to SNE Research.

South Korea's SK Innovation Anticipates Recovery in Refining Margins and Battery Demand in Second Half of the Year

South Korean refiner SK Innovation forecasts an improvement in refining margins and a rebound in battery demand during the second half of the year. This anticipated recovery is expected to enhance the utilization rates at its battery factories. The company attributes the projected strong refining margins to OPEC+ production cuts, which are likely to elevate oil prices, along with increased demand for transportation, cooling, and industrial purposes. These factors are expected to outweigh the delayed demand recovery from China and other emerging markets, as well as the ongoing challenge of high interest rates.

In the second quarter, SK Innovation's revenue fell slightly to 18.8 trillion won ($13.8 billion) from 18.9 trillion won in the previous quarter, but it was slightly higher than the 18.7 trillion won reported a year earlier. Energy and chemical sales constituted 92% of the total revenue, with battery and material sales making up the remaining 8%.

The company reported operating losses of 45.8 billion won in the second quarter, a significant reversal from an operating profit of 625 billion won in the first quarter, but an improvement from an operating loss of 107 billion won a year ago. The quarter-on-quarter loss was primarily due to weak oil refining margins and the burden of fixed costs from lower utilization rates in the battery business.

Operating profit from refining dropped sharply from 591.1 billion won in the first quarter to 144.2 billion won in the second quarter, driven by lower refining margins amidst concerns over prolonged high interest rates and China's sluggish economic recovery.

In the second quarter, oil product crack spreads decreased, with gasoline falling by $4.80 per barrel to $8.50 per barrel, diesel by $8.30 per barrel to $14.80 per barrel, and kerosene by $7.90 per barrel to $13.20 per barrel.

SK Innovation's Ulsan refinery, with a capacity of 840,000 barrels per day (b/d), operated at 78% of its capacity in the second quarter, down from 85% in the previous quarter. In contrast, the Incheon refinery, with a capacity of 275,000 b/d, saw an increase in its operating rate to 89% from 84% in the previous quarter. There are currently no planned turnarounds for the third quarter.

Battery Business Struggles

The battery business faced significant challenges, with operating losses widening to 460.1 billion won from 331.5 billion won in the previous quarter. Revenue dropped by 7.7% quarter-on-quarter and by 58% year-on-year to 1.55 trillion won. Utilization rates at battery factories declined in the first half of 2024 due to sluggish demand from automakers, though a gradual recovery is expected in the second half, according to subsidiary SK On. The company's battery production capacity is projected to reach 132 GWh this year, with plans to expand to at least 199 GWh by 2025.

Summary

SK Innovation expects a recovery in refining margins and battery demand in the second half of 2024. The company's revenue fell slightly in Q2, with significant operating losses due to weak refining margins and fixed costs in the battery business. Despite current challenges, SK Innovation anticipates improved utilization rates and expansion in battery production capacity.

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BlueOval SK Kentucky battery production begins, marking a US EV supply milestone

BlueOval SK

BlueOval SK Kentucky battery production has officially started. BlueOval SK Kentucky battery production supplies Ford and Lincoln EVs. BlueOval SK Kentucky battery production strengthens domestic content and scale. The Kentucky 1 plant carries 43 GWh per year. A twin 43 GWh plant sits on the same site. The JV is Ford and SK On.

Capacity ramp, model timing, and US industrial policy

The Glendale campus targets two plants at 43 GWh each. The first line produced commercial cells on 19 August. Therefore, Ford secures near-term cell supply in the US. Ford will also invest $2bn in Louisville. That supports a midsize electric pickup in 2027. As a result, localized cells pair with localized assembly.

Portfolio adjustments, Tennessee delay, and lithium sourcing shifts

Ford and SK planned 129 GWh across three plants. However, the Tennessee plant slips to 2028. Prototype output should start in 2027. The glidepath reflects slower US EV adoption. Ford trimmed a Liontown spodumene order. Liontown resold up to 150,000 wet tonnes to Chengxin. Supply chains continue adjusting to demand signals.

The Metalnomist Commentary

US cell capacity is arriving, but demand pacing remains uneven. Watch yield learning curves, offtake allocation, and IRA-driven cost per kWh. Tennessee timing and model launches will steer utilization and margins.

China’s XFH to Launch Sichuan Anode Plant by End-2026

China’s XFH

Expanding Capacity to Meet Growing Battery Demand

Shanghai XFH Technology is set to begin operations at its new anode material production plant in Pengxi county, Suining city, Sichuan province, by the end of 2026. The facility will have a designed capacity of 140,000 t/yr for anode material and graphitisation, with construction having started in early 2022. This expansion underscores China’s commitment to strengthening its domestic lithium-ion battery supply chain.

Strong Growth and Strategic Partnerships

In 2024, XFH boosted its anode material capacity to 90,036 t/yr, a 12pc increase from 2023. Sales rose 11pc to 68,851t, while output climbed 13pc to 75,113t over the same period. The company supplies major global battery makers, including LG Energy Solution, Volkswagen, Gotion High-Tech, and BYD. SK On and Panasonic are currently certifying XFH’s products through small-batch trial production, highlighting its ambitions for broader global market penetration.

The Metalnomist Commentary

XFH’s Sichuan project positions the company to meet surging demand for lithium-ion battery materials while reinforcing China’s dominance in the EV supply chain. Its growing client list and steady production gains reflect strong competitiveness in the global anode market. If certification from SK On and Panasonic succeeds, XFH could secure an even stronger foothold in international supply agreements.

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

Gotion High-Tech

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

The Rise of LFP Batteries

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

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

Two-Wheeler EV Transition in Asia-Pacific

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

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

A Global Shift in Battery Technology

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

China's Easpring Boosts Battery CAM Output Amid Rising NEV Demand

Chinese lithium-ion battery cathode active material (CAM) manufacturer, Beijing Easpring, has reported a significant increase in production for the first half of 2024. The surge is attributed to the growing demand from the new energy vehicle (NEV) industry. Easpring's total CAM output rose by 24% year-on-year, reaching 35,955 tons, driven by the increasing adoption of NEVs in China.

Among the output, 20,902 tons were lithium nickel-cobalt-manganese oxide (NCM), 1,755 tons were lithium cobalt oxide (LCO), and 13,298 tons were lithium (manganese) iron phosphate. The company's growth aligns with China’s accelerated shift from internal combustion engine vehicles to NEVs, which now hold over 40% of the domestic market share. This transition has propelled China’s lithium-ion battery shipments to 459GWh in the first half of the year, reflecting a 21% year-on-year increase.

To support this growth, Easpring and Sichuan Shudao New Material Technology established a joint venture, Easpring Shudao (Panzhihua) New Material, in 2022. The joint venture is constructing a large-scale CAM production complex in Panzhihua city, Sichuan province, with a total annual capacity of 300,000 tons. This includes the first phase of 120,000 tons per year for lithium (manganese) iron phosphate and an additional 200,000 tons per year for NCM. Production of lithium (manganese) iron phosphate commenced in the first half of 2024, though details about other phases of the project remain undisclosed.

Additionally, Easpring expanded its global presence by partnering with Finnish Minerals and South Korean battery producer SK in November 2021 to establish a European CAM joint facility. This made Easpring the first Chinese CAM manufacturer to set up a nickel-cobalt-manganese plant in Europe, solidifying its position in the global market.

Easpring’s main products, NCM and LCO, are supplied to major battery manufacturers including SK On, Samsung SDI, LG, Murata, EVE Energy, BatteroTech, and Yichun Qingtao Energy Technology.

BMW and SK tes to Expand Battery Recycling in North America

SK, Battery Recycling

Strategic Partnership Targets Key Battery Materials

BMW Group and SK tes will expand their battery recycling partnership to North America in 2026. This move follows their successful European collaboration launched in November 2024. The expansion will cover the US, Canada, and Mexico. The partnership focuses on recovering crucial materials. These materials include cobalt, nickel, and lithium. Hydrometallurgical processes will extract these elements from used batteries. 

The recovered materials will support BMW's GEN 6 drive train production. BMW aims to enhance its sustainable battery supply chain. This initiative strengthens BMW's commitment to circular economy principles. The company previously partnered with Zhejiang Huayou Recycling Technology in 2022. This earlier partnership focused on recycling high-voltage batteries from BMW's electric vehicles in China. SK tes brings significant expertise in battery recycling technology. The partnership ensures responsible end-of-life management for EV batteries. This effort contributes to a more sustainable automotive industry.

Hydrometallurgy and the GEN 6 Drive Train

The partnership utilizes hydrometallurgical processes. This method efficiently recovers valuable battery materials. Recovered materials will be used in the GEN 6 drive train. This technology represents BMW's next generation of electric vehicle power systems. The focus on recovering cobalt, nickel, and lithium is crucial. 

These materials are essential for high-performance batteries. The recycling process reduces the need for new raw material extraction. This approach minimizes the environmental impact. The GEN 6 drive train will feature advanced battery technology. This technology will benefit from the recycled materials.

Intensifying Battery Competition in Asia Amid Evolving Market Dynamics

EV Battery

The Race for Dominance in the Lithium Iron Phosphate Battery Market

The competition among major battery producers, particularly between China and South Korea, is set to intensify in 2025. South Korean giants like LG Energy Solution (LGES), Samsung SDI, and SK On are aggressively pursuing mass production of lithium iron phosphate (LFP) batteries, a domain where Chinese manufacturers have traditionally excelled. These South Korean firms are targeting a mass production rollout by the latter half of 2025, aimed primarily at the electric vehicle (EV) market.

Strategic Market Expansion

South Korean battery manufacturers are not just competing on the product level; they are also strategically targeting markets in the US and Europe, regions where their Chinese competitors have been less successful. This move is particularly strategic given the recent failure of Northvolt in Europe, which previously held a significant share of the European battery production capacity. The potential rollback of the US Inflation Reduction Act (IRA) tax credits, however, poses a financial threat to these South Korean firms, particularly with the upcoming changes anticipated under the administration of US president-elect Donald Trump.

Challenges and Opportunities in Other Regions

Australia, on the other hand, is focusing on niche areas such as "stationary storage" battery production, despite facing significant challenges in its mining sectors, especially with nickel and lithium. The downturn in these industries has led to major setbacks, such as the closure of the Bald Hill site by Mineral Resources, prompting government intervention.

In Southeast Asia, countries like Indonesia and the Philippines are making notable advances. Indonesia, in collaboration with LGES and Hyundai Motor, has already commenced operations at a new battery production facility, while the Philippines has launched its first LFP battery plant, which began operations in October with the support of Australian investment firm StB Capital Partners.

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.

AI Drives ICT and Manufacturing Growth in Asia-Pacific: A Look at South Korea and Taiwan

TSMC

The explosive growth of artificial intelligence (AI) infrastructure, particularly in the United States, is significantly shaping the electronics and related manufacturing sectors in South Korea and Taiwan. Government data from both countries highlights the importance of AI and its impact on semiconductors, electronics, and other ICT-related exports.

In South Korea, AI demand is offsetting declines in exports to China, showcasing the country's leading role in the global tech supply chain. The latest figures from South Korea’s Ministry of Trade, Industry, and Energy (Motie) show a 14.8% increase in ICT exports for November, totaling over $20 billion for the fourth consecutive month. Semiconductors, computers, and peripherals were the major drivers of this growth. Despite this, year-on-year growth showed signs of slowing, dipping from 22% in October to 14.8%. This slowdown was partly attributed to a 2.2% drop in exports to China and Hong Kong, primarily due to waning demand for mobile phones and displays.

Notably, South Korea's semiconductor exports skyrocketed, with a 30.3% rise year-on-year, reaching $12.5 billion. Exports to the United States surged by nearly 110%, driven by the increasing need for server equipment and data centers fueled by AI systems. These advancements in AI are rapidly driving the need for upgraded infrastructure, such as high-performance servers and data centers, essential for processing the vast amounts of data generated by AI algorithms.

South Korea’s semiconductor industry is globally influential, with giants like Samsung Electronics and SK Hynix at the forefront, along with smaller players such as DB HiTek and Hana Micron. As the world’s second-largest semiconductor supplier, South Korea is poised to benefit as AI continues to push demand for microchips and computing hardware to new heights.

Taiwan's Semiconductor Boom Fuels AI and Tech Growth

In Taiwan, the demand for semiconductors to support AI infrastructure is also expanding rapidly. Taiwan holds a dominant position in global semiconductor production, accounting for more than 60% of worldwide manufacturing and nearly 90% of advanced semiconductor output. This dominance is largely due to the presence of Taiwan Semiconductor Manufacturing Corp (TSMC), the world’s largest foundry, along with companies like MediaTek, ASE Technology Holdings, and United Microelectronics Corp (UMC).

Taiwan’s Ministry of Economic Affairs reports a 26.6% year-on-year increase in equipment purchases for the manufacturing sector in Q3, amounting to 462.4 billion New Taiwan Dollars (about $14.2 billion). The surge was largely driven by semiconductor factories expanding to meet the needs of emerging technologies, including AI, high-performance computing, and cloud services. The country's semiconductor production continues to boom, fueling revenue growth in both electronics and information technology industries.

The semiconductor-driven demand for AI technologies in Taiwan is evident, with a significant 46.4% increase in purchases of fixed assets in the electronic components sector, which accounts for 65.1% of total manufacturing purchases. This increase reflects the ongoing investments in AI-related equipment, including the expansion of wafer foundries, packaging, testing, and memory factories. Meanwhile, the machinery and equipment sector also reported a 26.6% rise in year-on-year purchases, largely driven by semiconductor companies' capital expenditures for new factory expansions and production lines.

Despite these gains, other sectors like chemical materials and fertilizers saw a decline in equipment purchases, highlighting the uneven impact of AI across different industries.

As Taiwan continues to be a hub for semiconductor production, the country is expected to see sustained investments in high-end production capacity and the introduction of low-carbon, automated equipment. This is set to drive further advancements in AI technologies and their applications, solidifying Taiwan's position as a key player in the global tech landscape.

Easpring Launches Lithium CAM Production in Finland to Supply European Battery Market

Finnish Battery Group

Joint Venture with Finnish Minerals Backs Strategic CAM Investment in Kotka

Beijing Easpring has initiated lithium CAM production in Finland, targeting Europe’s expanding battery manufacturing sector. The new facility in Kotka, southeast Finland, is being developed through a joint venture with Finnish Minerals Group (FMG) and its subsidiary Finnish Battery Chemicals (FBC). The project, valued at €800 million, marks a pivotal step in establishing localized cathode active material (CAM) production in the EU.

500,000t Capacity Aims to Meet Surging European Battery Demand

The facility will produce 500,000 tonnes/year of CAMs, including 200,000 tonnes of NCM and 300,000 tonnes of LFP/LMFP. The first phase targets 60,000 tonnes of NCM, aligning with growing EV demand and localized supply strategies. While the launch date remains undisclosed, Easpring emphasized its commitment to sustainability and innovation in lithium CAM production in Finland.

Strengthening Finland’s Battery Value Chain and Industrial Sovereignty

The investment strengthens Europe’s ability to produce battery-grade materials domestically, reducing reliance on imported inputs. FMG CEO Matti Hietanen highlighted the project's importance to Finland’s battery value chain, while Easpring Chair Chen Yanbin noted its role in setting global CAM standards. The company already supplies major OEMs including SK On, LGES, and Samsung SDI, and sources materials from CNGR, Albemarle, and Huayou Cobalt.

The Metalnomist Commentary

The move to localize lithium CAM production in Finland aligns with Europe’s EV supply chain autonomy goals. Easpring’s investment marks a strategic pivot toward resilient, regional battery materials manufacturing that could reshape EU-China industrial partnerships.

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

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

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

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

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

Expansion into Two-Wheeler Market

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

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

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

Global Battery Demand Nears 1TWh in 2024 as LFP Market Share Surges

Battery

EV Growth and China Lead Surge in Battery Demand

Global battery demand reached nearly 1TWh in 2024, largely driven by rising electric vehicle (EV) adoption, according to the IEA's latest EV Outlook 2025. The Focus Keyphrase "global battery demand" continues to dominate energy transition narratives as EV sales accelerate across major economies.

EV battery demand alone exceeded 950GWh, accounting for more than 85% of total battery consumption. China led with 59% of EV battery demand, followed by the U.S. and EU, each holding a 13% share. The IEA projects battery demand will more than triple to over 3TWh by 2030 under current national policies. While supply of critical minerals is currently in surplus, the IEA warns that depressed prices could deter future investment, risking lithium and nickel shortages by decade’s end.

Battery Manufacturing Grows Faster Than Demand

Global battery manufacturing capacity grew by nearly 30% to 3.3TWh in 2024, tripling actual demand. If all announced projects proceed, capacity could reach 6.5TWh by 2030, outpacing the IEA’s projected demand.

South Korea led overseas battery capacity expansion with over 400GWh deployed in 2024, far ahead of Japan (60GWh) and China (30GWh). If planned projects materialize, South Korea could produce over 1TWh annually by 2030, almost double China’s expected output. As a result, China’s global manufacturing share is projected to fall from 85% in 2024 to two-thirds by 2030, diversifying global supply chains.

LFP Dominates Market as Regional Dynamics Shift

Lithium iron phosphate (LFP) batteries now make up nearly half of the global EV battery market, with Chinese producers holding a de facto monopoly, especially in Europe and the U.S. European OEMs are increasingly opting for LFP chemistries to cut costs, displacing South Korean suppliers.

South Korean battery makers’ EU market share fell to 60% in 2024, down from 80% in 2022, while their U.S. market share rose to 35%, closing in on Japan’s 48%. Major Korean firms — LG Energy Solution, SK On, Samsung SDI — are all preparing for mass LFP production to compete in this fast-growing segment.

Meanwhile, LFP adoption in Southeast Asia, Brazil, and India has surpassed 50% of battery electric car sales, signaling rapid global penetration. However, Japanese battery makers face domestic setbacks, highlighted by Nissan’s cancellation of its Kyushu LFP plant amid restructuring.

The Metalnomist Commentary

The rise in global battery demand underscores a structural transformation in energy, mobility, and manufacturing. While demand growth is robust, the oversupply of battery capacity and volatility in mineral prices highlight the sector’s growing pains. As LFP continues its global ascent, regional competition and vertical integration will shape the future of the battery ecosystem.

Easpring CAM output surges as energy storage demand accelerates

Easpring

Easpring CAM output more than doubled in the first half of 2025. The surge reflects strong downstream demand across EVs and stationary storage. Easpring CAM output reached 73,133t, up from 35,955t a year earlier. Revenue rose 25pc to Yn4.432bn, while net profit increased 8.5pc to Yn311mn. The firm now supplies NCM, LFP and LCO, with LFP adoption boosting volumes.

Capacity expansion underpins growth and Europe strategy

Easpring CAM output is supported by new LFP capacity in Sichuan. The first 40,000 t/yr phase started in 2024, with another 90,000 t/yr due by end-2025. The company is also building a CAM plant in Kotka, Finland, to serve European customers. As a result, market participants expect total output to exceed 150,000t in 2025.

Tier-one partnerships deepen order visibility

Easpring strengthened its position with global battery leaders. Partners include SK On, LGES, Samsung SDI, Murata, BYD, EVE Energy and CALB. In March, Easpring agreed to supply 110,000t of ternary CAM to LGES over 2025-27. Meanwhile, LFP demand from energy storage systems continues to expand order books. Therefore, scale and product breadth support multi-region shipments.

The Metalnomist Commentary

LFP’s momentum in grid and behind-the-meter storage is reshaping CAM mix and margin profiles. Watch how European localization in Finland interacts with IRA-style policies and OEM qualification cycles. If LFP pricing stabilizes, Easpring’s volume leverage could outweigh modest unit margins.