Argentina Lithium Feedstock Factory Could Cut Costs and Strengthen Local Supply

Argentina Lithium

The Argentina lithium feedstock factory could change the country’s cost structure for lithium brine processing. Tsingshan is preparing to open the plant in Jujuy. The site will produce soda ash and hydrochloric acid locally. As a result, the Argentina lithium feedstock factory could reduce import dependence across the highland lithium sector.

The project matters because reagents are central to lithium brine processing economics. Producers in Argentina still import most chemical inputs. That raises logistics costs and delays deliveries to remote operations. Therefore, local chemical supply could improve both margins and reliability.

Tsingshan has upgraded the Perico facility since July 2023. The plant can produce up to 30,000 metric tonnes per year of soda ash. Hydrochloric acid capacity has not been disclosed. However, even partial local supply would ease pressure on upstream lithium projects.

Local Chemical Supply Could Lower Argentina Lithium Production Costs

Argentina lithium production costs remain structurally high versus Chile. Operators face difficult access routes and limited road infrastructure. That makes reagent transport more expensive. Consequently, Argentina’s operating costs are about 20 percent higher today.

Feedstock demand also shows the scale of the logistics burden. Around 4 tonnes of feedstock are needed for 1 tonne of lithium carbonate. One producer in Salta receives about 20 trucks per day. Therefore, every local tonne of reagent could reduce freight intensity.

The Argentina lithium feedstock factory could improve competitiveness without waiting for major mining expansion. Lower chemical costs would support existing producers first. It could also improve project economics for new entrants. Meanwhile, investors may view local input manufacturing as a positive signal for long-term industrialisation.

Tsingshan Argentina Expands Beyond Chemicals Into Resource Positioning

Tsingshan Argentina is not building only a support asset. The company has also partnered with Jujuy on a lithium project in the Olaroz salt flats. That creates vertical alignment between chemicals and extraction. As a result, Tsingshan could strengthen its position across the regional lithium value chain.

This approach reflects a broader shift in battery materials strategy. Companies increasingly want control over feedstocks, processing, and resource access. Argentina offers scale, but it still needs better industrial support systems. Therefore, reagent localisation may become a model for future investment.

For global supply chains, the message is clear. Lithium competitiveness does not depend only on geology. It also depends on chemicals, roads, and execution. The Argentina lithium feedstock factory highlights how midstream support can reshape upstream economics.

The Metalnomist Commentary

Argentina’s lithium challenge has never been only about resource quality. It has also been about cost inflation caused by imported inputs and weak infrastructure. If this plant performs well, local feedstock production could become one of the country’s most practical competitive advantages.

Eramet Acquires Full Control of Centenario Lithium Project in Argentina

Eramet

Eramet, a leading French mining and metallurgy company, has acquired full ownership of the Centenario lithium project in Argentina by purchasing the 49% stake previously held by Chinese steelmaker Tsingshan for $699 million. This strategic acquisition allows Eramet to consolidate its position in the global lithium market and fully leverage the project’s potential.

Key Details of the Centenario Lithium Project

• Production Capacity: The lithium carbonate plant, inaugurated on 3 July 2023, has a nameplate capacity of 24,000 t/yr of lithium carbonate equivalent (LCE).
• Resource Estimate: The Centenario deposit holds an estimated 15 million tons of LCE, which is expected to support annual production of around 75,000 t/yr over the project’s lifetime.
• Strategic Timing: The acquisition occurs during a period of cyclically low lithium prices, with lithium carbonate prices assessed at $9.10-9.40/kg (cif China) on 24 October, their lowest since February 2021.

Eramet’s CEO, Christel Bories, emphasized the significance of this move:

"This strategic move enables us to unlock the full potential of our Centenario world-class deposit and comes at the right time in the context of cyclically low market prices for lithium."

Ongoing Collaboration with Tsingshan

Despite divesting from Centenario, Tsingshan will continue its collaboration with Eramet on their joint nickel project in Indonesia, PT Weda Bay.

Tsingshan’s chairman, Xiang Guangda, highlighted the strong partnership between the two companies:

"Eramet remains a key partner in nickel in Indonesia, and we value the long-term relationship that we have built over the years between our two companies."

Long-Term Lithium Market Strategy

With this acquisition, Eramet strengthens its presence in the lithium market, aiming to capitalize on the increasing demand for lithium-ion batteries, essential for electric vehicles (EVs) and renewable energy storage systems. The Centenario project positions Eramet as a key player in the global energy transition.

SHFE Indonesian Nickel Cathode Brands Strengthen Indonesia’s Class I Nickel Role

The Shanghai Futures Exchange

SHFE Indonesian nickel cathode brands have gained a major credibility boost after the Shanghai Futures Exchange approved two Indonesian-produced nickel cathode brands for delivery against SHFE contracts. The approvals cover PTENICO from Eternal Nickel Industry and DX zwdx from CNGR Dingxing New Energy.

The approvals mark an important step in Indonesia’s move from nickel ore and intermediate products toward exchange-deliverable Class I nickel. Indonesia has already become the world’s dominant nickel processing hub, but exchange approval gives its refined metal greater financial-market recognition.

SHFE Indonesian nickel cathode brands also reinforce the role of Chinese-backed industrial parks in building Indonesia’s downstream nickel value chain. Both approved producers are linked to major Chinese groups with strong positions in stainless steel or battery materials.

The development matters because exchange-deliverable nickel sits at the intersection of physical supply, futures market liquidity and industrial procurement. Approval by SHFE gives the brands wider acceptance among Chinese market participants and strengthens Indonesia’s role in Class I nickel trade.

Tsingshan and CNGR Extend Indonesia’s Refined Nickel Platform

Eternal Nickel Industry’s PTENICO brand was approved by SHFE after previously being listed on the London Metal Exchange on 16 December 2025. The company is a subsidiary of Chinese stainless steel producer Tsingshan Holding Group.

The plant is located in the Weda Bay Industrial Park in Halmahera, North Maluku. It uses an electrolytic process and has 50,000 t/yr of nickel cathode capacity, with nickel content of 99.96%.

Tsingshan’s involvement is strategically important. The group transformed global nickel markets through Indonesian nickel pig iron and stainless steel expansion, and it is now extending that influence into refined Class I nickel.

CNGR Dingxing New Energy’s DX zwdx brand was also approved by SHFE. The plant is located at the Indonesia Morowali Industrial Park and also uses an electrolytic process. It has 50,000 t/yr of nickel cathode capacity, with nickel content of 99.96%.

CNGR Dingxing is a subsidiary of CNGR, a major Chinese lithium-ion battery cathode active material precursor producer. This gives the brand a direct connection to battery materials supply chains, not only stainless steel demand.

The LME accepted CNGR Dingxing’s Indonesian nickel cathode brand in May 2024. It also approved cobalt cathode produced by CNGR in Qinzhou, Guangxi, in March, showing the company’s expanding exchange-approved metals footprint.

Together, PTENICO and DX zwdx represent 100,000 t/yr of Indonesian nickel cathode capacity. Their SHFE approval gives Indonesia a stronger position in futures-linked refined nickel supply.

Exchange Approval Changes Nickel Market Positioning

The two brands are the first Indonesian-produced nickel cathodes approved by SHFE for delivery. That is significant because Indonesia’s nickel rise was initially built around ore, nickel pig iron, ferronickel, matte and mixed hydroxide precipitate.

Exchange-deliverable cathode is a different market category. It requires tighter quality control, brand recognition and acceptance by financial and physical market users.

SHFE has approved Chinese-produced nickel cathode brands totalling 121,000 t since 2024. Adding Indonesian brands expands the pool of deliverable material and shows how Indonesia is being integrated into China’s nickel pricing and delivery system.

This could gradually influence nickel market structure. More deliverable Indonesian metal may improve flexibility for Chinese buyers, increase acceptable supply for futures settlement and strengthen the link between Indonesian production and Chinese exchange pricing.

The approvals also come during a period of Class I nickel oversupply. LME and SHFE inventories have risen as new refined nickel capacity has entered the market faster than demand growth from batteries and alloys.

Against that backdrop, brand approval can become a competitive advantage. Producers with exchange-deliverable status may have better access to financing, trade channels and customers that require recognised specifications.

For Indonesia, the approval supports a broader industrial policy objective. The country wants to capture more value from its nickel resources by moving beyond raw ore and intermediate exports into higher-value metal and battery materials.

For China, the approvals deepen supply-chain integration with Indonesian assets. Chinese companies are not only investing in Indonesian mines and smelters; they are building exchange-recognised refined metal capacity that can serve Chinese industrial and financial markets.

The Metalnomist Commentary

SHFE approval of Indonesian nickel cathode brands confirms that Indonesia is moving deeper into Class I nickel, not only bulk stainless and battery intermediates. The strategic issue now is whether this new exchange-deliverable capacity strengthens market liquidity or adds further pressure to an already oversupplied refined nickel market.

Tisco Reduces November High-Carbon Ferro-Chrome Bid Price Amid Surplus Concerns

Northern China’s state-owned steelmaker, Taiyuan Iron and Steel (Tisco), has lowered its tender procurement price for high-carbon ferro-chrome for November delivery. This move reflects a response to oversupply issues and muted demand in the stainless steel sector.

Tender Price Adjustment

Tisco reduced its November tender price on October 17 by 150 yuan/t ($21.10/t) compared to October, setting the price at Yn7,945/t on a 50% chromium basis. This price, equivalent to Yn15.89/kg ($1.01/lb) for contained chromium, includes 13% value-added tax (VAT) and is payable in cash, with shipments scheduled for delivery by December 5.

Market participants suggest that excess supply of high-carbon ferro-chrome has driven Tisco to lower its bid price. There is also speculation that Tsingshan, China’s largest stainless steel producer, may follow suit, with a potential adjustment to Yn8,145/t or Yn16.29/kg ($1.04/lb) for contained chromium.

Oversupply Challenges

From January to August 2024, China’s high-carbon ferro-chrome production reached 5.77 million tonnes, while apparent demand, including imports, totaled 8.74 million tonnes. However, actual alloy demand was only 8.11 million tonnes, leading to a supply surplus of 630,700 tonnes, according to Hunan-based steel mill estimates.

Falling Demand in the Stainless Steel Sector

Stainless steel output in China dropped by 2-2.5% from August to September, with October’s production expected to remain flat or decline by 1% compared to September. This decline has directly impacted ferro-chrome demand, causing a 1% drop in high-carbon ferro-chrome production in September compared to August. October production is expected to decrease further as alloy producers in Inner Mongolia began maintenance in response to falling prices.

Outlook

With stainless steel demand muted and high-carbon ferro-chrome production constrained by maintenance, market sentiment remains bearish. The continued adjustments by major players like Tisco and Tsingshan will be closely watched as the market seeks balance amid persistent oversupply.

China's Tsingshan Partners in Major LFP Project

Collaborative Development in Guizhou

China's largest stainless steel producer, Tsingshan, is teaming up with Huayou Cobalt, a leading battery materials and metals producer, and Huafon, an adipic acid manufacturer, to develop a significant phosphate-coal-chemical integration project in Zhijin county, Guizhou province. The project, valued at 73 billion yuan ($10.3 billion), aims to establish a comprehensive production complex.

The new facility will feature a range of production lines, including 1.5 million tons per year of iron phosphate, 800,000 tons per year of lithium iron phosphate (LFP), and 1 million tons per year of dimethyl carbonate. Additionally, it will produce 800,000 tons per year of synthesis ammonia, 500,000 tons per year of methanol from coke oven gas, and 5 million tons per year of coking. Zhijin county, known for its rich mineral resources, is an attractive site due to its coal reserves exceeding 15 billion tons and phosphate rock reserves nearing 3.5 billion tons.

Industry Trends and Government Regulations

The growing demand for LFP materials, driven by the electric vehicle sector, has led many Chinese firms to expand their capacities. For instance, in August, CATL, China's largest power battery manufacturer, announced plans to collaborate with Jiangxi Shenghua New Material on a new plant. However, concerns about potential oversupply have prompted the Chinese government to implement measures to curb overcapacity and encourage technological advancements. Xinjiang International Industry's decision to terminate its LFP energy storage battery project in June reflects these regulatory pressures.

Eramet Begins Lithium Production in Argentina, Expands Global Supply

Eramet

French mining company Eramet has officially commenced lithium carbonate production at its Centenario plant in Argentina, marking a significant milestone in the global lithium supply chain. The project successfully integrates direct lithium extraction (DLE) technology, positioning Eramet as a key player in the lithium industry at a time when demand for battery-grade lithium carbonate continues to surge.

Centenario Lithium Plant: Industrial-Scale DLE Implementation

The Centenario-Ratones salar, located in Argentina, holds an estimated 15 million metric tons (mt) of lithium carbonate equivalent (LCE) in total recoverable mineral resources. With an initial production capacity of 24,000 mt per year, the plant has the potential to scale up to 75,000 mt LCE annually. The integration of direct lithium extraction (DLE) technology at an industrial scale enhances recovery efficiency and places the project within the first quartile of the lithium industry cost curve. This positions Eramet favorably against competitors in terms of production costs and long-term sustainability.

DLE technology, which allows for a more efficient and environmentally friendly lithium extraction process, is gaining traction as the industry seeks alternatives to traditional evaporation pond methods. By implementing DLE, Eramet can accelerate lithium production, reduce water consumption, and improve overall recovery rates.

Eramet Takes Full Control After Buyout of Tsingshan Stake

Eramet strengthened its hold over the Centenario project in October 2024 by acquiring the remaining 49.9% stake from Chinese steelmaker Tsingshan Holding Group for $699 million. This strategic buyout gives Eramet full ownership and operational control over the lithium operation, enabling the company to streamline decision-making and focus on long-term expansion plans.

The buyout signals Eramet’s strong commitment to lithium production, reinforcing its strategic position in the global battery supply chain. As demand for electric vehicle (EV) batteries continues to rise, Eramet's Argentina operation is expected to play a pivotal role in securing lithium supplies for global markets.

Conclusion

Eramet’s launch of lithium carbonate production at Centenario represents a major advancement in the lithium industry, particularly with its industrial-scale adoption of DLE technology. The plant’s scalability to 75,000 mt LCE annually, combined with its low-cost positioning, makes it a significant asset in the global lithium market. By regaining full ownership of the project, Eramet has reinforced its role as a leading supplier of battery-grade lithium, crucial for the future of EVs and energy storage systems.

Eramet starts DLE lithium production in Argentina

Eramet

Eramet starts DLE lithium production in Argentina and reports stable unit performance. The Centenario project reached industrial operation in June. Eramet starts DLE lithium production in Argentina to lift near-term LCE output. The company targets 4,000–7,000t in 2025 and 24,000 t/yr at nameplate.

Commissioning progress, volumes, and customers

Eramet starts DLE lithium production in Argentina through its Eramine Sudamerica JV with Tsingshan. The DLE units operated near nominal yield and throughput, the firm said. Centenario produced 710t LCE in the first half after earlier evaporation issues. However, Eramet fixed the brine concentrating equipment and restored normal operations. The company sold 520t of industrial and technical grade LCE. Most sales went to Chinese cathode active materials manufacturers.

2025 guidance and financial context

Eramet expects Centenario to deliver 4,000–7,000t LCE in 2025. The site plans a gradual ramp toward 24,000 t/yr capacity. Meanwhile, Eramine Sudamerica posted a €37mn loss in January–June. As a result, execution discipline and uptime remain critical to hit guidance. Direct lithium extraction and evaporation now run as integrated flowsheets.

The Metalnomist Commentary

Eramet’s milestone validates a second industrial DLE reference in the Lithium Triangle. Consistent brine pre-treatment and evaporation stability will determine the pace to 24kt/y. Watch impurity control and customer qualification, which shape pricing and cash flow through 2025.

LME Fined £9.2M by UK Regulator Over 2022 Nickel Market Crisis

LME

FCA Cites Inadequate Controls and Staffing Failures During Historic Short Squeeze

FCA Penalizes LME for Mishandling Nickel Price Surge

The London Metal Exchange (LME) has been fined £9.2 million ($11.9 million) by the UK Financial Conduct Authority (FCA) following its investigation into the March 2022 nickel short squeeze. The FCA concluded that the exchange lacked sufficient systems and controls to manage extreme volatility during the weeklong price spike, when nickel prices surged past $100,000 per tonne.

Between March 4–8, 2022, the nickel market experienced unprecedented stress. The crisis was triggered by massive over-the-counter short positions held by Tsingshan, a leading Chinese nickel producer. In response, the LME suspended nickel trading for eight days and controversially canceled all trades executed on March 8.

Regulators Cite Lack of Price Bands and Untrained Staff

The FCA identified LME’s failure to use automatic volatility controls, such as price bands, as a major weakness. Furthermore, the exchange’s decision-making process was too reliant on senior staff who were unavailable during Asian trading hours, when the crisis escalated.

At the height of the squeeze, junior operations staff—lacking crisis training—disabled price bands instead of escalating the situation. This action allowed nickel prices to rise faster than they should have. The exchange’s failure to report abnormal activity to its Hong Kong office worsened the volatility.

LME Implements Reforms, Wins Litigation Battles

The LME accepted the FCA’s findings and qualified for a 30% fine reduction. Since the crisis, the exchange has introduced daily price limits across all metals and improved oversight of OTC positions. These reforms aim to prevent similar breakdowns in market order.

Legal fallout followed the LME’s decision to cancel trades, with Elliott Management and Jane Street suing for losses of $456 million and $15 million, respectively. However, the UK High Court ruled in LME’s favor, and the UK Supreme Court recently denied Elliott permission to appeal.

The FCA’s decision underscores the critical need for robust trading oversight, especially during periods of extreme market stress.

Eramet Signs Nickel Deal with Indonesian Sovereign Funds to Expand EV Battery Ecosystem

Eramet Group

Partnership Targets Integrated Mining and Processing Value Chain in Indonesia

Eramet signs nickel deal with Indonesian sovereign funds to advance a sustainable and integrated electric vehicle (EV) battery raw materials ecosystem in Indonesia. The French mining group signed an initial agreement with Danantara and the Indonesia Investment Authority (INA), both sovereign investment agencies. Together, they aim to identify key projects and develop a roadmap for upstream and downstream EV value chain development.

The partnership will leverage long-term capital from Danantara and INA to finance critical infrastructure, while Eramet will lead the mining and processing operations. These projects will align with global environmental and social standards. This strategic collaboration comes as Indonesia strengthens its position as a hub for nickel-based EV battery materials, particularly amid global supply chain diversification efforts.

Eramet already holds a 38.7% stake in PT Weda Bay Nickel in partnership with China’s Tsingshan Group, producing nickel and ferronickel. The company has expressed plans to expand its nickel operations in Indonesia by acquiring new mining permits. However, with the Indonesian government tightening permit issuance, partnerships with state-backed investors offer Eramet a pathway to secure strategic access. As Eramet signs nickel deal with Indonesian sovereign funds, it reinforces Indonesia’s emergence as a global center for battery metals.

The Metalnomist Commentary

Eramet’s alliance with Indonesian sovereign funds highlights a growing trend: securing nickel supply through vertically integrated, ESG-compliant partnerships. As Indonesia tightens mining access, collaboration with state capital becomes essential for companies seeking long-term footholds in EV-critical materials.

Eternal Nickel LME listing reshapes Indonesian nickel trade

Eternal Nickel

The Eternal Nickel LME listing marks a new phase for Indonesian nickel as PTENICO cathodes move toward global benchmark status and add fresh liquidity to a market already facing surplus pressure. Eternal Nickel, a subsidiary of China’s Tsingshan Group, has applied for the Eternal Nickel LME listing with full-plate nickel cathodes produced at Weda Bay in North Maluku, where nameplate capacity reaches 50,000 t/yr. As a result, the Eternal Nickel LME listing would cement Indonesia’s role in refined nickel, not just intermediate products, while also deepening the pool of deliverable brands for price discovery on the London Metal Exchange.

Eternal Nickel LME listing adds to Asian LME nickel capacity

The proposed Eternal Nickel LME listing comes only months after the first Indonesian brand, DX-zwdx, secured LME approval in 2024, lifting new Asian registered capacity to 232,600 t since mid-2023. PTENICO cathodes would be the second Indonesian nickel brand listed, reinforcing the rapid shift of refined nickel capacity toward Indonesia as high-pressure acid leach and conversion projects mature. Meanwhile, surplus nickel has been flowing into LME warehouses because many producers find LME delivery the most efficient route to immediate liquidity. LME nickel stocks climbed to 224,700 t in September from 162,336 t in January, with Chinese-origin material surging to 152,454 t from 81,564 t. Therefore, any additional Indonesian cathode tonnage registered on the LME is likely to weigh further on prices, even if it improves tradability and hedging options for consumers.

Surplus stocks pressure prices as more Indonesian cathodes line up

The Eternal Nickel LME listing would arrive in a market where the official three-month LME nickel price has stayed rangebound around $15,000–16,000/t, averaging just $15,432/t in 2024. However, producers continue to commission new cathode capacity and are actively preparing LME applications, treating warehouses as an outlet for surplus production rather than cutting supply. Indonesian producer Nickel Industries Limited plans to add nickel cathode output, while major producer QMB is upgrading its technology to produce LME-grade cathodes, both from plants in Central Sulawesi. As these projects advance, more Indonesian cathode brands are expected to seek registration, reinforcing the structural oversupply narrative and keeping spot prices under pressure, even as stainless steel and battery sectors look for cost advantages.

The Metalnomist Commentary

The Eternal Nickel LME listing underlines how Indonesia is moving rapidly up the nickel value chain from ore and intermediates to globally deliverable cathode brands. For traders and hedgers, more Indonesian brands enhance liquidity and flexibility, but they also lock in a heavier overhang of exchange stocks that can cap rallies. Strategically, the trend raises important questions for non-Indonesian producers: competing on cost alone against the Weda Bay and Sulawesi hubs will be tough, making product differentiation, specialty alloys and long-term customer partnerships more critical than ever.

Eramet Weda Bay Nickel Quota Cut Raises New Supply Risks for Indonesia

PT Weda Bay Nickel

Eramet Weda Bay nickel quota cut has become a major new concern for the global nickel market. PT Weda Bay Nickel received a 2026 RKAB quota of just 12mn wet metric tonnes. That is far below its 42mn wmt allocation in 2025. As a result, Eramet Weda Bay nickel quota cut is intensifying fears over tighter Indonesian ore supply.

This matters because Weda Bay Nickel is the world’s largest nickel mine. The operation is a joint venture between Eramet and Tsingshan. It also remains the dominant ore supplier to Weda Bay Industrial Park. Therefore, a 70pc quota reduction creates risk far beyond one company.

The company had requested an unchanged 42mn wmt allocation for 2026. That request included 3mn t for its own NPI smelter in Weda Bay. The final decision came in far lower than that level. Consequently, the market now sees a much tighter supply environment than expected.

Indonesia Nickel Ore Supply Faces a Sharper Constraint

Indonesia nickel ore supply is now under stronger pressure as the government tightens RKAB approvals. Jakarta had already signalled a lower national quota of 260mn-270mn t for 2026. The Weda Bay decision now gives that policy a much more concrete impact. As a result, ore tightness is no longer a theory. It is becoming a real operating issue.

Weda Bay Nickel plans to submit another application for a higher quota. That means policy uncertainty is still not fully settled. However, the current reduction already changes market expectations. Therefore, 2026 nickel prices may stay supported while smelters wait for clearer guidance.

Imports may help at the margin, but they cannot fully solve the problem. Weda Bay is too important to replace easily. If ore flows stay constrained, downstream output will likely face pressure. Meanwhile, project timelines could also come under strain.

Weda Bay Industrial Park Could Face Production and Expansion Pressure

Weda Bay Industrial Park is especially exposed because it depends heavily on Weda Bay ore. The site hosts major MHP, NPI, and matte capacity. That includes Huafei and the newly launched Blue Sparking Energy MHP project. Therefore, Eramet Weda Bay nickel quota cut could affect both current production and future ramp-ups.

The scale of IWIP makes this even more important. The park is projected to produce around 550,000t in nickel metal equivalent in 2025. That makes it Indonesia’s largest nickel production hub, ahead of IMIP. As a result, any ore disruption at Weda Bay has system-wide importance.

The market now faces a new question. Can Indonesia keep downstream growth on track while holding ore supply tighter? That question will shape the next phase of nickel pricing, project execution, and investor confidence. Consequently, the quota decision may become one of the most important nickel policy signals of 2026.

The Metalnomist Commentary

This quota cut matters because it targets the ore source that feeds Indonesia’s most important nickel hub. The key shift is clear. Indonesia is no longer acting only as a volume maximizer. It is acting more like a supply manager, and the nickel market will have to reprice that reality.

Guizhou Phosphate LFP Plant Breaks Ground to Expand Battery Materials Production

Guizhou Phosphate

Guizhou Phosphate Chemical, a state-owned Chinese firm, has started construction on a major LFP plant in southwest China. Located in Kaiyang, Guizhou, the facility is designed to produce 600,000 tonnes per year of lithium iron phosphate, with full commissioning expected by 2028. The plant is part of a broader push to enhance China’s control over the lithium battery supply chain.

Multimetal Facility to Support China’s NEV Ambitions

The Guizhou Phosphate LFP plant is part of a larger complex valued at ¥33.1 billion ($4.5 billion). In addition to LFP materials, it will produce iron phosphate, lithium carbonate, copper, and titanium dioxide. The first phase, focused solely on LFP, will be operational by 2026. This aligns with China’s drive to support domestic production amid rising demand from new energy vehicles (NEVs) and grid-scale storage.

Oversupply Looms Despite Surging LFP Output

While LFP shipments in China surged 48% year-over-year to 2.43 million tonnes in 2024, market value dropped by 30% due to oversupply. The Guizhou Phosphate LFP plant joins other large-scale projects, including Tsingshan’s mega-complex in Zhijin County, further crowding the market. This rapid expansion raises concerns about long-term price stability and profitability within the LFP sector.

The Metalnomist Commentary

The Guizhou Phosphate LFP plant exemplifies China’s aggressive industrial scaling in battery materials. While strategic for EV dominance, unchecked expansion may strain margins and intensify global competition in LFP supply chains.

Eramet Begins Lithium Carbonate Production in Argentina

Eramet

Eramet, a French mining firm, has initiated lithium carbonate production. The production occurs at its Argentine plant. The Centenario plant uses direct lithium extraction (DLE) technology. This technology operates at an industrial scale. The plant's initial capacity reaches 24,000 metric tons per year. This production yields battery-grade lithium carbonate.   

Centenario-Ratones Salar Resources and Ownership

The Centenario-Ratones salar holds over 15 million tons of LCE. This positions the asset in the lithium industry's first cost quartile. The salar's potential capacity exceeds 75,000 tons of LCE per year. Eramet acquired full ownership of the operation in October. They repurchased Tsingshan's 49.9% minority stake for $699 million.   

CMOC's Cobalt and Copper Output Soars in 2024, Boosting China's Supply

CMOC's

Chinese mining giant CMOC has reported a significant surge in its copper and cobalt production for 2024, primarily fueled by increased output from its operations in the Democratic Republic of Congo (DRC).  This production boost has subsequently impacted China's imports of these critical metals.

DRC Operations Drive Record Production

CMOC's cobalt production more than doubled in 2024, reaching 114,165 tonnes (metal equivalent), compared to 55,526 tonnes in 2023. This dramatic increase is attributed to higher output from the company's Tenke Fungurume copper-cobalt mine (TFM) and the newly developed Kisanfu copper-cobalt mine (KFM) in the DRC. KFM commenced production in the first half of 2023.  CMOC acquired a 56% stake in TFM from Freeport-McMoRan in 2016, increasing its ownership to 80% in 2017. The acquisition of KFM was completed in December 2020.  KFM is jointly owned by CMOC (71.25%), Brunp, a subsidiary of Contemporary Amperex Technology (CATL), (23.75%), and DRC's state-owned Gecamines.

The company also saw a substantial rise in copper production, reaching 650,161 tonnes in 2024, a 55% increase year-on-year and 14% above its annual production guidance. This growth is partly due to the three new production lines at its mixed ore project at TFM reaching full capacity in the first half of 2024.  TFM now boasts five production lines with a combined capacity of 450,000 tonnes per year.  The KFM mine has achieved a copper capacity of 150,000 tonnes per year.

Impact on China's Metal Imports

The increased cobalt output from CMOC's DRC operations has significantly impacted China's feedstock imports.  Customs data reveals that China imported 172,580 tonnes of cobalt metal equivalent of intermediate products between January and November, a 74% surge compared to the same period the previous year.  Notably, approximately 98.7% of these imports originated from the DRC, a region where the world's two largest cobalt feedstock producers, CMOC and Glencore, operate copper and cobalt mines.  CMOC also holds a 30% stake in Huayue Nickel Cobalt, a joint venture with Huayou Cobalt and Tsingshan in Indonesia.

Looking ahead, CMOC is pursuing further production expansions as part of its five-year plan starting in 2025. These plans include the West Area project at TFM and the second phase of KFM, both of which are currently in the preliminary exploration stage.