XTC New Energy LFP LMFP Capacity Expansion Targets Higher-Density Battery Materials

XTC New Energy

XTC New Energy LFP LMFP capacity will expand in Sichuan as the Chinese battery materials producer adds another 40,000 t/yr of lithium iron phosphate and lithium ferro-manganese phosphate production. The second-phase project will be built in Ya’an city and is expected to start production in June 2028.

XTC New Energy LFP LMFP capacity at the Ya’an plant will reach 80,000 t/yr after both phases are completed. The first phase already provides 40,000 t/yr of LFP capacity, while the new phase will add flexible LFP and LMFP output.

XTC New Energy LFP LMFP capacity expansion reflects China’s continued investment in lower-cost and manganese-enhanced battery chemistries. The project will be operated by subsidiary Ya’an XTC New Energy, with total investment expected at 743mn yuan.

The move comes as Chinese battery material producers position for growing power battery demand and greater interest in manganese-based cathode active materials.

LMFP Gains Momentum as Producers Seek Better Energy Density

LMFP is gaining attention because it can offer higher energy density than conventional LFP. This makes it attractive for battery makers seeking to improve driving range while keeping costs below higher-nickel chemistries.

However, LMFP still faces trade-offs. Batteries using LMFP cathode active material generally have shorter cycle life and lower charge-discharge efficiency than LFP batteries.

This means LMFP is not a simple replacement for LFP. Instead, it is likely to develop as a complementary chemistry for applications where higher energy density is more valuable than maximum cycle life.

The expansion also shows how manganese is becoming more important in battery materials. Manganese-based chemistries can reduce reliance on more expensive or supply-sensitive metals while supporting performance improvements.

For XTC, adding LMFP capacity gives the company more flexibility. It can serve established LFP demand while preparing for customers that want manganese-enhanced phosphate materials.

China’s Cathode Supply Chain Expands Into Manganese-Based Materials

XTC is not alone in expanding LMFP capacity. Several Chinese battery material producers are adding or building manganese-based phosphate projects.

Ningxia Hengchuang Nami began building the first phase of a 30,000 t/yr LMFP plant in Yinchuan in March. Hunan Yuneng, China’s largest LFP producer, is also building an LMFP materials plant.

Jiangxi Greatpower launched the first phase of a 20,000 t/yr LMFP plant in Pingxiang in January. These projects show that China’s battery materials industry is preparing for broader adoption of LMFP.

The trend is strategically important for the cathode supply chain. LFP has already become a major chemistry in electric vehicles and energy storage because of its cost advantage, safety and long cycle life.

LMFP could extend that platform by adding more energy density while preserving some of LFP’s cost and safety benefits. If technical limitations improve, LMFP may become a larger part of China’s battery chemistry mix.

For raw materials, the shift could support manganese demand in battery applications. It also reinforces China’s lead in scaling new cathode chemistries from pilot production to industrial capacity.

The Metalnomist Commentary

XTC’s Ya’an expansion shows that China’s battery materials race is moving beyond simple LFP scale. LMFP is becoming a serious development path because it offers a practical route to higher energy density without fully moving into costlier high-nickel systems.

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.

XTC GEM CAM feedstock deal tightens China’s battery materials supply chain

XTC

XTC GEM CAM feedstock deal marks a major step in securing China’s high-end battery materials supply. Under the XTC GEM CAM feedstock deal, XTC New Energy will lock in large volumes of cobalt, nickel and lithium inputs. This XTC GEM CAM feedstock deal supports long-term cathode active material output for NCM, LCO and LFP product lines. As a result, Chinese battery makers gain greater visibility on costs and availability during a volatile raw material cycle.

Long-term CAM feedstock deal anchors XTC’s growth strategy

XTC New Energy agreed to purchase 150,000 t/yr of CAM feedstock from GEM between 2026 and 2028. The package covers cobalt chloride, nickel sulfate, cobalt tetroxide, NCM precursor and lithium salts for large-scale cathode production. This diversified basket reduces single-material risk and helps XTC balance different chemistries across consumer and power batteries. The deal also deepens an existing partnership, signalling confidence in GEM’s ability to deliver consistent quality volumes. Consequently, both companies move closer to a vertically aligned, closed-loop battery materials ecosystem.

XTC has rapidly grown sales of lithium cobalt oxide on the back of device replacement cycles and AI-enabled electronics. Government subsidies that push consumers to upgrade phones and tablets are boosting high-end cobalt-rich cathode demand. Meanwhile, combined sales of NCM and LFP cathodes also rose, reflecting broader growth across energy storage and EV platforms. By locking in feedstock now, XTC can support more aggressive volume and product planning with key OEMs.

China CAM feedstock integration deepens links with global battery OEMs

The agreement reinforces China’s position at the centre of the global CAM and precursor value chain. GEM will channel critical precursors to XTC, which already supplies ATL, Samsung SDI, Murata, LG Chem and BYD. These relationships span mid to high-end consumer devices and extend into power lithium battery producers like CALB and CATL. Therefore, the enhanced feedstock pipeline will indirectly underpin cell production for phones, tablets, EVs and stationary storage worldwide.

Tighter integration between feedstock suppliers and cathode producers can also stabilise pricing and contract structures. Long-term supply deals encourage joint planning on capacity, quality and sustainability metrics, important for global OEM qualification. At the same time, dependence on Chinese CAM feedstock raises questions for western policymakers about diversification and supply security. However, until alternative precursor hubs reach scale, China’s integrated CAM ecosystem will remain a critical anchor for lithium-ion supply chains.

The Metalnomist Commentary

This agreement shows how Chinese CAM producers and recyclers are quietly locking in the next wave of battery growth. As XTC and GEM align on volumes and chemistries, their joint leverage over cobalt, nickel and lithium flows will rise. For non-Chinese OEMs, the deal underscores the urgency of building competitive precursor and CAM capacity outside China.

Yongxing Lithium Carbonate Output Drops in 2024 Amid Weak Market Prices

XTC New Energy Materials

Production and Sales Volume Declines Despite Capacity Expansion

Yongxing Special Materials Technology saw its lithium carbonate output and sales fall in 2024. The company produced 26,048 tonnes, down 3.9% from 2023, with sales also slipping 3.2% to 26,028 tonnes. Yongxing began mass production in 2020 and expanded capacity to 30,000 t/yr by 2022. However, demand volatility and falling lithium prices impacted overall output performance.

Revenue and Profit Fall Sharply as Market Weakens

The firm posted an operating income of 8.074 billion yuan in 2024, a 34% decline from the prior year. Net profit dropped by 69% to 1.043 billion yuan, reflecting worsening lithium market conditions. Yongxing primarily sources lepidolite from local mines in Jiangxi and supplies to major cathode makers. These include XTC New Energy, Hunan Yuneng, and Dynanonic, major players in China’s EV supply chain.

The Metalnomist Commentary

Yongxing’s performance reflects broader challenges in the lithium industry as overcapacity meets softening demand. While long-term fundamentals remain strong due to electrification, short-term oversupply will likely keep prices subdued. Producers may shift focus to cost control and strategic partnerships to weather the turbulence ahead.

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.

ABM and XTC Lithium Join Forces on Argentina’s Carachi Lithium Project

ABM

New partnership signals US-Australia collaboration to unlock critical lithium resources in South America

ABM Secures Option to Acquire 50% Stake in Carachi Lithium Project

American Battery Materials (ABM) and XTC Lithium have signed a non-binding agreement on Argentina’s Carachi Lithium Project. The partnership gives ABM the option to acquire up to a 50% interest in the project. ABM can form a joint venture once it secures a 10% stake.

The Carachi project is located in Argentina’s Catamarca Province, a region known for rich lithium brine deposits. The deal marks an early-stage collaboration between the US and Australian developers in a key critical materials hotspot. As lithium demand surges, access to Argentine salars becomes increasingly strategic for global battery supply chains.

XTC Expands Footprint Through Caroline Lithium Acquisition

XTC Lithium controls 21.9 km² of lithium assets through its acquisition of Caroline Lithium. This property includes the Carachi project, which now becomes a joint development opportunity. ABM’s entrance reflects growing investor interest in securing long-term lithium supply from Latin America.

Meanwhile, the non-binding nature of the agreement leaves flexibility for both firms to define next steps. This may include detailed exploration plans, resource estimation, and permitting processes in coming quarters. Industry watchers view such early partnerships as necessary to scale projects quickly in competitive jurisdictions.

Strategic Lithium Alliances Gain Momentum

As a result of tightening global lithium supply, cross-border alliances are gaining momentum. US firms are especially active in Argentina, seeking to diversify supply chains away from Asia. With lithium designated a critical mineral by the US government, projects like Carachi are closely watched.

The ABM-XTC deal represents another step in realigning the lithium industry for the energy transition. With careful execution, the Carachi project could become a vital node in the Western Hemisphere’s lithium map.

The Metalnomist Commentary

Strategic cooperation between American and Australian lithium players in Argentina points to growing urgency for regional lithium independence. If realized, Carachi could play a small but meaningful role in easing pressure on global battery supply chains.