Samsung SDI BESS Supply Deal Strengthens US Energy Storage Battery Chain

Samsung SDI BESS

Samsung SDI BESS supply deal activity is accelerating in the US as demand for grid-scale battery storage continues to rise. The South Korean battery manufacturer has secured a 1.5 trillion won, or about $1 billion, contract to supply BESS batteries to a US energy company over four years.

The Samsung SDI BESS supply deal will run from 2026 to 2029. The batteries will be supplied in phases, supporting the rapid buildout of US battery energy storage systems as utilities, renewable developers, and infrastructure operators seek more flexible power capacity.

The agreement also strengthens Samsung SDI’s US manufacturing strategy. The batteries will be produced at StarPlus Energy’s plant in Indiana, a joint venture between Samsung SDI and Stellantis.

Indiana Production Links Battery Storage to Domestic Manufacturing

The StarPlus Energy facility gives Samsung SDI a local production base for the US energy storage market. This matters because US customers increasingly value domestic or regionally anchored battery supply chains, especially for energy infrastructure projects.

Initial deliveries will use nickel-cobalt-aluminum batteries. This chemistry gives Samsung SDI a route to serve early BESS demand while preparing for broader chemistry diversification.

Later expansion will include lithium iron phosphate batteries. LFP batteries are becoming more important in stationary storage because cost, safety, cycle life, and scale matter more than maximum energy density in many grid applications.

LFP Expansion Signals a Wider Shift in US BESS Demand

The Samsung SDI BESS supply deal follows another major LFP agreement signed last December with an unnamed US energy infrastructure company. That earlier contract was valued at two trillion won, or about $1.33 billion.

Together, the deals show that Samsung SDI is moving more aggressively into the US battery energy storage systems market. The company is no longer positioned only around electric vehicle batteries, but also around grid storage and power infrastructure.

This shift has important materials implications. BESS growth will increase demand for lithium, iron phosphate materials, nickel, cobalt, aluminum, copper, graphite, separators, electrolytes, and power electronics. It will also intensify competition among Korean, Chinese, Japanese, and US-linked battery supply chains.

The Metalnomist Commentary

Samsung SDI’s latest contract confirms that US battery demand is shifting from EV-only growth toward a broader energy infrastructure cycle. For battery makers, chemistry flexibility and local production are becoming as important as scale itself.

Samsung SDI US BESS supply deal signals a new supply phase for grid storage

Samsung SDI, BESS

Samsung SDI US BESS supply deal locks in a large, multi-year grid storage order. The contract totals 1.5 trillion won, about $1bn. It runs in phases from 2026 to 2029.

The Samsung SDI US BESS supply deal will serve an unnamed US energy company. The batteries will come from StarPlus Energy in Indiana. StarPlus Energy is Samsung SDI’s joint venture with Stellantis.

What the Samsung SDI US BESS supply deal covers

The initial shipments will use nickel-cobalt-aluminum battery chemistry. This chemistry targets high power and strong cycling performance. Therefore, it fits early ramp needs for utility-scale storage.

Later phases will expand into lithium iron phosphate batteries. LFP improves cost stability and supply resilience. As a result, Samsung SDI can address broader project economics.

Why Indiana production and LFP expansion matter

Indiana-based production reduces logistics risk and delivery lead times. It also helps buyers align with domestic sourcing preferences. Meanwhile, it supports predictable capacity planning for multi-year deployments.

Samsung SDI’s recent US activity reinforces this direction. The company signed a separate two-trillion-won LFP supply agreement last December. Therefore, Samsung SDI positions LFP as a core growth lever in US storage.

The Metalnomist Commentary

This shift signals a maturing BESS market that values bankable delivery over headline capacity. However, margins will depend on raw material spreads and contract pricing formulas. The winners will scale localized supply without losing cost discipline.

Samsung SDI Recalls High Voltage Batteries Over Fire Risk

Samsung SDI

Samsung SDI, a South Korean battery manufacturer, has initiated a recall of high voltage battery packs due to a potential fire risk. The recall, which could impact up to 180,196 vehicles, was issued in response to a safety concern identified by the National Highway Traffic Safety Administration (NHTSA).

Potential Fire Risk in High Voltage Batteries

The recall affects certain high voltage battery packs used in vehicles produced between July 2020 and March 2023, including models from Chrysler, Volkswagen, Audi, and Ford. The faulty battery packs may fail, resulting in a loss of drive power, which significantly increases the risk of a crash. Additionally, the failure could also raise the risk of a fire, posing a severe safety hazard.

Cause of the Recall and Affected Vehicles

Samsung SDI has attributed the issue to variability in its production process, which can cause micro defects in the cathode or create local stresses in the separator. These production flaws could contribute to the potential safety risks. Chrysler, under Stellantis, is most affected, with 155,096 vehicles impacted by this recall.

Initially, Samsung SDI attempted to address the risks with a software remedy, but further investigation revealed that the software solution may not fully address certain abnormal conditions. Samsung SDI acknowledged that a more effective solution is required, and the recall remains active until the issue is resolved.

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.

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.

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 Easpring Raises Battery CAM Output in 2024

Easpring

LFP Plant Fuels Record Production Growth

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

Strategic Expansion in LFP and Global Partnerships

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

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

Strong Outlook Amid Surging Battery Demand

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

The Metalnomist Commentary

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

US Tariffs Could Boost Argentina’s Lithium Salts Production

Argentina Lithium

New Tariff Policies May Propel Argentina to the Forefront of Battery Materials Supply

US President Donald Trump’s new tariff measures, announced this week, could significantly impact the global lithium market. While many energy and mineral products, including lithium carbonate and lithium hydroxide, are exempt from new tariffs, the shift towards more localized battery production in the US could create new opportunities for Argentina's lithium sector. Argentina, with its lower-cost brine assets, could become a key player in the production of battery-grade lithium salts.

Shift in Global Battery Manufacturing and Tariffs Impact

Trump's recent tariff policy introduced significant duties on completed batteries from China, Japan, and South Korea. These duties are likely to accelerate the trend of localizing battery production in the US. Under the Inflation Reduction Act of former President Joe Biden’s administration, the US has already seen a shift toward local manufacturing, with major battery manufacturers like Panasonic, Samsung SDI, Ford, and Toyota planning to open around 10 new battery factories this year.

However, with a lack of domestic mining and processing capacity in the US, the country will increasingly rely on imports for raw materials to meet the demand for battery production. The US currently has only one operating lithium mine, Albemarle's Silver Peak mine in Nevada. Despite producing lithium carbonate and hydroxide, this mine cannot meet the higher purity standards required for battery-grade products needed in electric vehicles (EVs).

Argentina’s Competitive Edge in Lithium Salts Production

Argentina stands out due to its potential to produce high-quality, cost-competitive lithium salts. Brine operations in Argentina are expected to be more efficient and less costly than other South American and spodumene-producing countries. Although brine facilities require higher initial capital costs, their ongoing operational costs are lower than spodumene-based assets, making them an attractive option for global supply chains.

Argentina’s competitive advantage is further strengthened by its 3% royalty tax on lithium mining, compared to the 40% ceiling in Chile, which has a more developed lithium industry. Despite facing a 10% import tariff by the US, Argentina is well-positioned to expand its lithium production to meet the growing demand from battery factories in the US. According to Argentina’s Vice Minister of Energy and Mining, Daniel Gonzalez, "All of Argentina's lithium projects go to battery grade," signaling the country's commitment to producing high-purity lithium products.

While countries like Australia, Brazil, and some African nations rely on China for lithium processing, Argentina's direct production of battery-grade lithium offers it a strategic advantage in the global market.

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.

Ultium LFP battery production in Tennessee to expand GM’s EV portfolio

Ultium Cells

Ultium LFP battery production in Tennessee will start by late 2027. GM and LG Energy Solution will convert lines at Spring Hill. Ultium LFP battery production in Tennessee will lower costs for mass-market EVs. The shift complements high-nickel and future lithium-manganese chemistries.

Capacity strategy and plant network

Ultium’s Ohio plant will keep making NCMA cells for long-range crossovers. GM and Samsung SDI are building a 36 GWh plant in Indiana. Mass production there targets 2027. Together, these sites diversify chemistries and sourcing. Ultium LFP battery production in Tennessee strengthens North American cell optionality.

Market outlook and supply chain integration

U.S. incentives favor localized cells and materials. GM sold 78,200 EVs in the first half. Its estimated EV share reached about 13 percent. GM sources lithium carbonate from Thacker Pass and CAM via POSCO Future M. Ultium LFP battery production in Tennessee will fit this integrated ecosystem. The Lansing stake sale to LGES sharpened capital focus.

The Metalnomist Commentary

GM is pragmatically adding lower-cost LFP alongside premium chemistries. Execution hinges on line conversion, yield ramp, and firm offtake. Watch IRA eligibility, precursor sourcing, and fleet demand into 2027.

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.

NextEra Battery Storage Contracts Rise as US Power Demand Accelerates

NextEra Energy

NextEra battery storage contracts increased in the first quarter as the US utility group added 1.3GW of battery storage-based agreements. The additions formed part of 4GW of renewable and storage originations, alongside 2.2GW of solar and 0.5GW of wind.

NextEra battery storage contracts are rising because US electricity demand is growing faster and customers need capacity that can be deployed quickly. The company said demand for power is not slowing and that speed to power has become essential.

NextEra battery storage contracts also show how storage is becoming a core grid resource, not only a supplement to solar and wind. Battery systems can support peak demand, improve grid reliability and provide flexible capacity as data centres, electrification and industrial load growth increase pressure on power networks.

The company added more battery storage than in the first quarter of 2025, when it originated 0.9GW of storage within 3.2GW of renewable energy and storage capacity.

Storage Pipeline Supports Fast Grid Capacity Growth

NextEra has identified four main growth routes for battery storage. These include standalone projects, co-located storage at existing renewable sites, storage as a grid solution and expansion of existing projects from four-hour to eight-hour duration.

This is important because storage demand is becoming more diverse. Standalone batteries can provide rapid capacity support, while co-located systems can improve the value of solar and wind generation.

Longer-duration battery expansion is also strategically relevant. Moving from four-hour to eight-hour systems can help utilities manage evening demand peaks, renewable intermittency and grid congestion.

NextEra’s standalone and co-located storage pipeline exceeds 110GW, excluding expansion opportunities. That scale gives the company one of the strongest platforms in the US storage market.

The growth reflects a broader shift in power infrastructure. Utilities and large customers increasingly need fast capacity additions because new gas plants, transmission lines and conventional generation projects often face long development timelines.

Battery storage is not a full replacement for all forms of generation. But it is becoming one of the fastest tools available to respond to near-term power demand growth.

Secured Supply Through 2029 Reduces Execution Risk

NextEra said it has secured domestic supply for solar panels and battery storage through 2029 at competitive prices. This reduces exposure to trade disruption, tariff changes and equipment shortages.

Supply security matters because battery storage projects depend on reliable access to cells, modules, inverters, power conversion systems, transformers and grid interconnection equipment.

South Korean battery manufacturer Samsung SDI signed a deal in March 2025 to supply 6.3GWh of battery energy storage systems to NextEra. That agreement supports the company’s ability to execute projects while demand rises.

For battery materials, the growth of utility-scale storage strengthens demand for lithium, graphite, iron phosphate cathode materials, copper, aluminium and power electronics. LFP batteries are especially important in stationary storage because of cost, safety and cycle-life advantages.

NextEra’s first-quarter profit rose to $2.18bn on sales of $6.7bn, up from $833mn in profit and $6.25bn in sales a year earlier. Stronger financial performance gives the company more room to support its renewables and storage buildout.

The industrial significance is clear. Battery storage is becoming a strategic capacity product for the US power system, especially as electricity demand from data centres, manufacturing and electrification continues to rise.

The Metalnomist Commentary

NextEra’s storage growth shows that batteries are becoming part of the core power infrastructure toolkit. The next constraint will not be customer demand, but whether supply chains, interconnection queues and grid equipment can keep pace.

Global Energy Storage Battery Shipments Surge in 2024

CATL

Global shipments of energy storage batteries experienced a significant increase in 2024, driven by rising demand and reduced manufacturing costs. According to Chinese research institute EV Tank, global shipments totaled 369.8GWh, reflecting a 65% increase from the previous year.

China Leads the Global Energy Storage Market

Chinese manufacturers played a dominant role in this surge, accounting for 93.5% of global shipments with a total of 345.8GWh. The growth can be attributed to China’s favorable incentive policies and the decreasing cost of battery cell production, which has bolstered shipments of energy storage batteries, particularly to the power industry. Energy storage systems in power grids remain the largest downstream market, with an 83.3% share of global demand in 2024.

Strong Growth Expected Through 2030

EV Tank forecasts that global energy storage battery shipments will continue to rise, reaching 1,550GWh by 2030. This growth will be fueled by increased demand from both traditional markets in Europe and the U.S., as well as emerging regional markets. The steady demand from these areas is expected to play a key role in driving the industry forward in the coming years.

Chinese Companies Dominate the Market

In 2024, eight of the top 10 global energy storage battery suppliers were Chinese companies. The market leader, CATL, held a 29.5% share, followed by EVE Energy, Hithium, BYD, and Envision. South Korean companies Samsung SDI and LGES ranked ninth and tenth, respectively. Tesla, a major player in the electric vehicle sector, is also making strides in the energy storage space. The company has started constructing a gigafactory for its energy storage battery, Megapack, in Shanghai. This 40GWh/year plant is expected to begin commercial production in February 2025.

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.

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.

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.

China's XTC Reports Strong CAM Sales Growth in First Half of 2024

XTC New Energy Materials

Chinese lithium-ion battery cathode active material (CAM) manufacturer XTC New Energy Materials (Xiamen) reported a significant increase in sales for the first half of 2024. The firm’s growth was driven by rising demand from downstream industries, reflecting the broader surge in demand for electric vehicle batteries and energy storage solutions.

Impressive Sales Growth

XTC New Energy's sales of CAM, including lithium cobalt oxide (LCO) and lithium nickel-cobalt-manganese oxide (NCM), soared by 67% year-on-year, reaching 44,740 tonnes from January to June. The sales included 18,401 tonnes of LCO, up 30%, and 26,338 tonnes of NCM, a remarkable 109% increase. The surge in NCM sales reflects the growing demand for high-performance battery materials in the global market.

Expanding Production and International Presence

XTC New Energy, once a division of Xiamen Tungsten (XTC), has been operating independently since 2016, focusing on the research, development, production, and sale of CAM for lithium-ion batteries. The company is actively expanding its production capacity. In September 2023, XTC unveiled plans to build a 40,000 t/yr NCM plant in France in partnership with France-based Orano CAM, aiming to strengthen its international presence.

In addition, XTC New Energy is building a new factory in Ya’an, Sichuan province, to produce lithium iron phosphate (LFP), with a planned annual capacity of 100,000 tonnes. The first phase of the plant, with a capacity of 20,000 tonnes, began trial production earlier this year.

XTC New Energy has established partnerships with leading global and domestic battery manufacturers, including ATL, Samsung SDI, Murata, LGC, Sunwoda, Zhuhai Guanyu, and BYD. The company’s CAM products are widely used in middle- and high-end electronics and power lithium batteries. XTC also collaborates with power battery producers such as CALB, Panasonic, BYD, CATL, Sunwoda Electronic, and Gotion High-tech, further solidifying its role in the global battery supply chain.

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.

Posco Future M Begins Early Production of NCA Cathodes at New South Korea Plant

Posco Future M

South Korean materials giant Posco Future M, a subsidiary of the Posco conglomerate, has commenced early production at its new nickel-cobalt-aluminum (NCA) cathode plant in Pohang, North Gyeongsang province. The plant, which boasts an annual production capacity of 30,000 tonnes, was originally scheduled to begin operations in 2025 but has accelerated due to “customer requests.”

Posco’s NCA cathode output is crucial as global battery manufacturers seek high-quality cathode materials to meet demand for electric vehicles (EVs). The early start aligns with Posco Future M's 10-year agreement with Samsung SDI to supply high-nickel NCA cathodes, part of a broader push to establish South Korea as a leading player in the EV supply chain.

Expanding Production Capacity Amid EV Market Challenges

Posco Future M is actively expanding its cathode production capabilities with another plant under construction in Gwangyang, South Jeolla province, which is expected to add 52,500 tonnes per year by 2026. This will bring the company's total cathode material production capacity to 248,500 tonnes per year across its two plants by 2026. Despite this expansion, the firm has revised its initial target of 320,000 tonnes by 2025, reflecting the current slowdown in the global EV market.

The slowdown has also impacted Posco’s joint ventures and new plant projects. In September, the company postponed its plans for a nickel sulfate and battery precursor plant with China’s Huayou Cobalt, as well as its high-nickel cathode active material (CAM) facility in Quebec, Canada, a joint effort with General Motors, citing “local conditions.”

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.