Automotive Raw Material Supply Chains Hit Localisation Limits

Automotive

Automotive raw material supply chains are becoming the main constraint on electric vehicle localisation as carmakers seek more control over strategic components. Automakers want regional supply chains, but battery metals, rare earths and processed inputs still depend on global mining and refining networks.

Automotive raw material supply chains have shifted from pure efficiency toward resilience, security and geopolitical risk management. The industry is no longer trying only to minimise cost. It is trying to protect production from export controls, licensing delays, trade restrictions and raw material shortages.

Automotive raw material supply chains therefore cannot be fully localised by assembling batteries, motors or electronics closer to vehicle plants. The deeper constraint sits upstream, where lithium, nickel, cobalt, manganese and rare earth materials remain tied to global extraction and processing capacity.

The result is a more selective supply-chain model. Automakers will regionalise the components they can control, while still relying on global raw materials for the minerals and refined products they cannot replace quickly.

EV Localisation Still Depends on Global Critical Minerals

Jaguar Land Rover has decided to control three critical parts of electric propulsion: battery assembly, electric drive units and energy management systems. This gives the company more control over the final systems that define EV performance.

However, vertical integration has limits. Even if an automaker controls battery assembly or electric drive units, it may not control the lithium chemicals, nickel sulphate, cobalt, manganese, graphite or rare earth magnets inside those systems.

Permanent magnet motors remain one of the clearest pressure points. Electric drive units depend on rare earth materials that are still heavily exposed to Chinese processing, magnet production and export licensing.

Obtaining magnet raw materials from China has become more difficult from a licensing perspective. This shows how export controls can affect vehicle production even when the final assembly line is located in Europe or the US.

Battery supply chains face the same structural problem. Automakers can localise pack assembly, module production and software integration, but raw material exposure remains global.

Lithium, nickel, cobalt and manganese supply depends on mine locations, refining capacity, chemical conversion and government policy. These inputs cannot be made local simply by building a battery plant near an auto factory.

This changes the meaning of automotive localisation. The next phase will be less about full independence and more about reducing exposure to single-country bottlenecks.

Recycling and Traceability Become Strategic Tools

Critical minerals recycling is becoming a strategic issue for automakers, not only an environmental goal. Black mass recovery can eventually return lithium, nickel, cobalt, copper and other materials into the supply chain.

Recycling can reduce raw material exposure over time. But it depends on enough end-of-life batteries, reliable collection systems, safe transport, processing capacity and customer acceptance of recovered materials.

The UK’s critical minerals strategy reflects this reality. Domestic production, partner-country supply agreements and recycling can improve resilience, but full self-sufficiency is not realistic.

That point matters for manufacturers. Supply security will depend on diversified sourcing, trusted partners, recycling loops and traceable material flows rather than a complete break from global markets.

The shift will also affect pricing. Materials may increasingly carry value based on origin, regulatory acceptability, sustainability documentation and licensing risk.

A battery metal or rare earth input from a secure and traceable source may command a premium over lower-cost material with higher geopolitical or compliance risk.

For automakers, the strategic challenge is clear. They must control more of the EV system while accepting that critical mineral supply will remain globally contested.

For metals suppliers, the opportunity is also clear. Producers that can offer traceable, compliant and secure supply will become more valuable to automotive customers than suppliers competing only on price.

The Metalnomist Commentary

Automakers are learning that EV localisation stops where raw material dependence begins. The winners in automotive supply security will be those that connect local manufacturing with diversified minerals, recycling capacity and credible traceability.

US Critical Mineral Processing Funding Targets Domestic Battery Supply Chain

Critical Mineral

US critical mineral processing funding is moving into another major round as the Department of Energy prepares to allocate up to $500mn for processing, recycling, and derivative battery manufacturing projects. The funding opportunity is designed to support US-based projects that can strengthen domestic supply of critical minerals and battery materials.

The Department of Energy will target projects that process raw feedstocks, recycle critical materials, or manufacture battery materials and components. The agency specifically identified battery-related materials such as lithium, graphite, nickel, copper, and aluminum among its areas of focus.

US critical mineral processing funding is becoming a central tool in Washington’s effort to reduce dependence on offshore refining and battery material supply chains. The latest funding round also shows that the US is not only focused on mining, but on the midstream capacity needed to convert raw materials into usable industrial inputs.

DOE Funding Pushes Midstream Capacity Beyond Mining

Critical mineral processing remains one of the most difficult gaps in the US battery supply chain. Mining projects can expand raw material availability, but domestic industrial resilience depends on refining, chemical conversion, recycling, and component manufacturing.

The new funding opportunity will support projects that can process critical minerals from raw feedstocks and recycle valuable materials back into the supply chain. This approach reflects the growing importance of black mass, scrap, and secondary materials as strategic inputs for battery production.

DOE battery materials funding also gives policy support to companies working across lithium chemicals, graphite processing, nickel products, copper materials, aluminum inputs, and battery component manufacturing. These segments are essential for electric vehicles, grid storage, defense electrification, and industrial energy systems.

Battery Manufacturing Policy Enters Third Funding Round

The latest funding notice marks the third round in recent years under the DOE’s battery materials processing and battery manufacturing and recycling programs. In September 2024, the agency selected 25 projects to receive more than $3bn to expand domestic battery, component, and critical material supply.

The new $500mn opportunity extends that policy direction. It gives the US another mechanism to move from strategic mineral rhetoric toward physical processing capacity, especially in areas where China still dominates global refining and battery material production.

Applicants must submit non-binding letters of intent by 27 March, with full applications due by 24 April. The timeline signals that the DOE wants near-term project visibility and a faster pipeline of investable domestic capacity.

US critical mineral processing funding will be especially important for companies that can prove commercial readiness, feedstock security, and scalable production. The strongest projects will likely be those that connect raw material access with downstream battery customers and recycling loops.

The Metalnomist Commentary

The US is now treating processing capacity as the real bottleneck in critical minerals security. Funding can accelerate projects, but the strategic test will be whether supported companies can deliver cost-competitive, qualified material at industrial scale.

Lopal Marble Bar Lithium Project Deal Extends Chinese Battery Material Supply Strategy

Lopal

Lopal Marble Bar lithium project acquisition will give China’s battery cathode material producer Lopal Tech another upstream position in Western Australia’s lithium sector. The company has agreed to acquire the Marble Bar project from Global Lithium Resources for A$14.85mn.

The Lopal Marble Bar lithium project is located in the Pilbara region of Western Australia. The project has an estimated resource of 18mn t grading 1.0% lithium oxide.

The Lopal Marble Bar lithium project deal reflects a continuing push by Chinese battery material producers to secure upstream lithium resources. Cathode and battery material companies are looking beyond processing capacity and moving closer to mine supply.

This matters because lithium raw material security remains central to battery supply chains. Even as lithium prices fluctuate, companies with long-term access to spodumene resources can better protect conversion plants, cathode output and customer supply.

Marble Bar Adds Pilbara Resource Exposure

The Marble Bar project gives Lopal direct exposure to a known lithium-bearing region. Western Australia remains one of the world’s most important hard-rock lithium supply bases, with spodumene projects feeding converters and battery material producers across Asia.

The project’s 18mn t resource at 1.0% lithium oxide gives Lopal a potential raw material position, although the acquisition price suggests the asset is still at an early development stage.

For Global Lithium Resources, the sale allows the company to focus more heavily on its larger Manna lithium project. Manna has a resource estimate of 52mn t grading 1.0% lithium oxide.

This creates a clearer portfolio structure. Lopal gains Marble Bar, while GL1 retains its larger Manna asset and existing downstream-linked partnerships.

The transaction also shows that Chinese battery material producers remain willing to invest in Australian lithium assets despite market volatility. Long-term supply security continues to matter more than short-term price weakness.

Manna Links Lopal to Future Offtake Supply

Lopal already has exposure to GL1 through the Manna project. It holds a 5% equity interest in Manna and has signed an offtake agreement to buy 40% of the project’s output.

China’s Canmax has agreed to take another 30% of Manna’s output and also holds a 9.45% stake in GL1. Australian lithium miner Mineral Resources owns 9.85% of GL1.

These relationships show how lithium supply chains are being structured around equity stakes and offtake agreements. Battery material companies want secured feedstock before projects enter production.

For Lopal, the Marble Bar acquisition adds another layer to its Australian lithium strategy. It gives the company project ownership while maintaining future offtake exposure through Manna.

The broader industrial meaning is clear. Chinese battery material producers are not relying only on spot markets. They are building upstream positions, offtake rights and strategic relationships to support long-term lithium chemical and cathode material supply.

The Metalnomist Commentary

Lopal’s Marble Bar deal shows that lithium strategy is shifting from price speculation to resource control. Even in a weaker lithium market, Chinese battery material companies continue to secure upstream positions that can support future conversion and cathode supply.

Europe Faces Challenges in Strategic Battery Funding Amid Market Oversupply

EU Battery

European countries are struggling to adopt a unified and strategic approach to funding domestic battery supply chains as global oversupply of battery materials, led by China, continues to push prices lower through at least 2030. These issues were a key focus of the Future Battery Forum held this week in Berlin, Germany.

Oversupply in Battery Materials

The battery materials market, including nickel and cobalt, faces oversupply due to significant production increases from Indonesia and the Democratic Republic of Congo (DRC). According to Siyamend Al Barazi, head of unit mineral economics at Germany’s Dera (German Mineral Resources Agency), "markets will be oversupplied at least until 2030." China's state subsidies, estimated at $230 billion from 2009 to 2023, have further contributed to this glut, maintaining downward pressure on global prices.

European Critical Raw Material Challenges

Despite the establishment of the EU Critical Raw Material Act (CRMA), which identifies 34 critical and 17 strategic materials vital to green and digital technologies, European funding efforts fall short of addressing the massive investment needs for battery material production and processing.

In September, Germany's KfW bank approved a €1 billion raw materials fund, while similar initiatives were launched by Italy, France, and the UK. However, panelists at the forum, including Jonathan Vanherberghen from Rio Tinto, argued that these amounts are insufficient for large-scale projects. For example, the capital expenditure for Rio Tinto's Jadar lithium project in Serbia alone stands at $2.5 billion.

Fragmented Funding and Industry Concerns

The fragmented funding landscape in Europe has made it difficult to pool resources effectively. Vanherberghen noted that funds like KfW’s could be more impactful if extended over longer periods to accommodate changing market cycles. Similarly, Cris Moreno, CEO of Vulcan Energy, highlighted that funding of at least $1 billion annually is required to meet the region’s ambitions. Moreno’s own lithium project in Germany has an estimated cost of $1.4 billion.

Despite the challenges, these funding initiatives provide some support by attracting institutional investors and fostering collaboration with car manufacturers, which are under increasing pressure to meet carbon targets and ESG (Environmental, Social, and Governance) standards.

Toward a Unified European Strategy

Experts at the forum emphasized the need for a more unified and sizeable funding mechanism to bolster Europe’s battery supply chain. A single, cohesive approach would allow Europe to compete with countries like China, South Korea, and Japan, where government support for raw material projects is significantly more robust.

Vanherberghen concluded, "Funds like that will only support projects with the highest ESG standards. Bringing these things together could create a much more effective system than the fragmented approach currently in place."

Global Recycled Metals Output Rises as China and Emerging Regions Expand Capacity

Recycled Metals

Global recycled metals output increased further in 2025 as China maintained its leading position and emerging regions expanded recycling capacity. Production of recycled copper, aluminium, lead and zinc reached about 59.2mn t, up 5.6% from a year earlier.

Global recycled metals output is becoming more important to non-ferrous supply security as mining, processing and trade flows face rising geopolitical and cost pressures. Recycling now provides a larger secondary source of industrial metal units for manufacturers, smelters and battery supply chains.

Global recycled metals output accounted for around 34% of total non-ferrous metal production in 2025. The sector also delivered cumulative savings of about 1.2bn t of primary mineral resources, underlining its growing role in resource conservation.

The growth shows that recycled metals are no longer a secondary environmental story. They are becoming a core part of industrial raw material strategy across copper, aluminium, lead, zinc and battery metals.

China Leads as Regional Recycling Capacity Expands

China remained the world’s largest recycled base metals producer in 2025, with output of 20.57mn t. That represented 34.7% of global production.

The country’s scale gives it a major role in recycled copper, aluminium, lead and zinc supply. It also strengthens China’s position across non-ferrous metals at a time when primary raw material security is under pressure.

Europe produced more than 10mn t of recycled base metals, while the US produced more than 6mn t. India and southeast Asia reached around 6mn t and 4mn t, respectively.

These figures show that recycling capacity is becoming more geographically distributed. Emerging regions are no longer only consumers of recycled raw materials. They are becoming processing centres in their own right.

Battery-related recycling is also growing quickly. Nickel, cobalt and lithium recovery is supporting the new energy industry as electric vehicle and energy storage supply chains look for more secure material sources.

China aims to increase domestic recycled material recovery to 23mn t by 2030 under its next five-year plan. That target implies annual growth of around 7%.

The country is also expected to strengthen recycled product certification and explore the inclusion of recycled materials in carbon trading systems. This could make recycled metal more valuable for customers seeking traceable and lower-carbon supply.

Trade Flows and Technology Move Toward Asia

Global recycled raw material trade is becoming more regional, more Asia-focused and more diversified. Europe and North America remain major exporters of recycled copper and aluminium feedstock.

Europe exports around 2mn t/yr of recycled copper and aluminium feedstock, while North America exports about 4.2mn t/yr. China and India remain the largest importers, with imports exceeding 4mn t and 2mn t, respectively.

Southeast Asia is becoming a key transshipment hub. Regional recycled aluminium feedstock trade reached about 1.3mn t of imports and 900,000t of exports.

Black mass from spent lithium-ion batteries is also increasingly moving toward Asian processing centres. This reflects Asia’s stronger battery materials processing base and growing demand for recovered nickel, cobalt and lithium units.

Technology is improving the recycling value chain. Advances in laser sorting, intelligent dismantling, multi-metal battery recovery and digital process control are raising recovery rates and product quality.

Leading producers have achieved recycling rates above 94% for aluminium and 95% for lithium. These levels show how recycling is moving closer to industrial-grade resource recovery rather than simple scrap handling.

New products are also expanding. High-strength recycled aluminium alloys, high-purity recycled copper and recycled rare-earth permanent magnets are gaining traction.

This matters because recycled metal must meet customer specifications before it can displace primary material. Better sorting, cleaner chemistry and stronger certification will determine how much recycled metal can enter high-value applications.

The Metalnomist Commentary

Recycling is becoming a strategic metals supply pillar, not just a sustainability tool. The next competitive edge will come from producers that can turn complex scrap and battery waste into certified, high-purity and customer-ready materials.

Battery Metals Demand Faces Slower Path as Hybrid Vehicle Growth Extends

Battery Metals

Battery metals demand could face a slower growth path as carmakers and suppliers expect hybrids and range extenders to remain important for longer than earlier electric-only transition models assumed. Speakers at the FT Future of the Car summit said vehicle decarbonisation should be measured by emissions reduction, not only battery electric vehicle share.

Battery metals demand remains structurally supported by electrification. However, a longer hybrid phase could reduce near-term demand intensity for lithium, nickel, cobalt and manganese because hybrid vehicles use smaller battery packs than full battery electric vehicles.

Battery metals demand assumptions are therefore becoming more complex. Automotive electrification is still progressing, but the industry is moving toward a mixed powertrain future rather than a simple shift from combustion engines to full BEVs.

Horse Powertrain chief executive Matias Giannini said half of passenger vehicles could still be produced with some form of combustion or hybrid powertrain by 2040. That outlook would keep investment flowing into efficient hybrid systems alongside EV platforms.

Hybrid Growth Changes the Battery Raw Materials Curve

Hybrid vehicle growth could temper the pace of battery raw material demand without reversing electrification. Hybrids and range extenders still require electric motors, inverters, wiring and batteries, but their battery packs are much smaller than those used in BEVs.

This matters most for nickel. High-nickel NCM and NCA batteries are closely tied to longer-range BEVs, where larger packs are needed to deliver performance and driving range.

A slower BEV ramp-up could delay some of the nickel sulphate demand growth that has supported investment cases for new battery-grade nickel projects. It could also affect cobalt and manganese demand in cathode chemistries exposed to full EV penetration rates.

Lithium remains supported across almost every electrification pathway. Still, a longer hybrid transition could slow the rate at which large-format BEV batteries absorb lithium units.

The shift does not mean automotive metals demand will weaken across the board. Hybrids use more copper than conventional combustion vehicles because they require electric motors, power electronics and more complex wiring systems.

Continued hybrid and combustion production also supports aluminium castings, stainless steel, exhaust components and engine-related materials. Meanwhile, BEV growth still supports aluminium lightweighting, copper wiring, charging infrastructure and battery materials.

The result is a less linear automotive metals outlook. Battery metals may grow more slowly than aggressive BEV scenarios suggest, while broader automotive metals consumption remains supported by platform complexity and mixed powertrain production.

Policy Flexibility Could Reshape European Metal Demand

European suppliers are pushing for more flexibility in the EU regulatory framework. Current policy remains heavily weighted toward full electrification through tailpipe emissions targets.

The EU targets a 100% reduction in tailpipe emissions from new cars and vans from 2035. That effectively ends new combustion engine sales unless future exemptions are created.

Industry participants increasingly want a more technology-neutral route. They argue that hybrids, range extenders, renewable fuels and lower-carbon manufacturing should contribute to emissions reduction alongside BEVs.

This policy debate matters for metals. Battery material demand depends heavily on BEV penetration, average pack size and chemistry choice.

If Europe allows a longer role for hybrids and range extenders, lithium-ion battery capacity demand per vehicle could grow more slowly. That would affect demand forecasts for lithium, nickel, cobalt and manganese.

Chinese EV and hybrid technology is also improving quickly. This puts pressure on European and US automakers to share development costs across BEV, hybrid and range-extender platforms.

For suppliers, the strategic issue is flexibility. Companies tied only to high-growth BEV battery assumptions may face demand timing risk, while suppliers serving copper, aluminium, stainless steel, electronics and hybrid systems may benefit from a broader platform mix.

The automotive transition is still real, but the material demand path is becoming more diversified. Metals markets must now track powertrain mix, not only EV sales headlines.

The Metalnomist Commentary

Hybrid growth does not weaken the energy transition, but it changes the metals timing. Battery metals demand will still rise, yet copper, aluminium and hybrid-related materials may capture more value if automakers choose a longer mixed-powertrain route.

Japan-Australia Graphite Anode Supply Chain Targets Battery Security

Graphite

The Japan-Australia graphite anode supply chain is becoming a serious strategic project for battery materials security. Idemitsu, Marubeni, NSC, and Graphinex have agreed to develop a cross-border supply chain for natural graphite anode material. The plan links graphite mining in Queensland with refining and processing in Japan. As a result, the Japan-Australia graphite anode supply chain could reduce reliance on more concentrated supply routes.

This matters because graphite remains one of the most important battery raw materials. Demand continues to rise with electric vehicles and renewable energy storage. Japan has relied heavily on imports for graphite procurement. Therefore, the Japan-Australia graphite anode supply chain directly addresses a critical supply risk.

The industrial structure of the deal is also clear. Idemitsu and Graphinex will handle graphite extraction in Australia. Marubeni and NSC will focus on refining and processing in Japan. Consequently, the project is designed as a full upstream-to-midstream partnership rather than a simple trading agreement.

Natural Graphite Anode Material Is Becoming a Strategic Priority

Natural graphite anode material is now central to battery manufacturing competitiveness. Without secure graphite supply, downstream battery production becomes more vulnerable to trade shocks and export restrictions. That makes source diversification more important than ever. As a result, Japan is moving to secure a more stable anode material base.

China’s role helps explain the urgency. Japan wants alternative import sources as it reduces dependence on the world’s largest graphite producer and exporter. Export controls have made that concentration risk harder to ignore. Therefore, the new partnership reflects both industrial logic and geopolitical caution.

Idemitsu’s earlier investment in Graphinex also shows this strategy did not begin overnight. The companies have already been building ties around Australian graphite mining. This new agreement pushes that relationship into a more integrated supply chain phase. Meanwhile, it strengthens confidence that the project has real strategic intent.

Graphite Anode Plant in Japan Could Deepen Domestic Battery Capacity

The graphite anode plant in Japan is the most important downstream element of the plan. The companies are exploring a Japanese production site and aim to start operations in 2028. That would give Japan more domestic control over an essential battery input. Consequently, the graphite anode plant in Japan could become a meaningful industrial anchor.

The partnership also aligns with the wider Japan-Australia critical minerals agenda. Both countries have been working to deepen cooperation on energy security and supply chains. This project fits that framework well because graphite sits at the core of battery manufacturing. Therefore, the deal supports both national policy and commercial demand.

The broader market significance is clear. Battery supply chains are no longer judged only by cell production capacity. They are increasingly judged by who controls upstream and midstream materials. As a result, the Japan-Australia graphite anode supply chain could become a notable model for allied critical mineral cooperation.

The Metalnomist Commentary

This partnership matters because it targets one of the most overlooked battery bottlenecks: graphite anodes. Japan is not only seeking more raw material. It is trying to secure processing and manufacturing depth as well. If execution stays on track, this project could become an important example of how allied supply chains move beyond dependence and into real industrial coordination.

Lithium-Ion Battery Copper Foil Shipments Surge as Ultra-Thin Products Gain Share

Copper Foil

Lithium-ion battery copper foil shipments rose sharply in 2025 as global battery production expanded and manufacturers shifted toward thinner materials to reduce copper costs. Global shipments reached 1.302mn t, up 41.7% from 2024, according to Chinese research institute EV Tank.

Lithium-ion battery copper foil demand remains closely tied to electric vehicle and energy storage growth. Copper foil is a key current collector in lithium-ion batteries, making it essential to cell performance, energy density and manufacturing cost.

Lithium-ion battery copper foil shipments were dominated by China, which accounted for 82.9% of global deliveries in 2025. EV Tank expects global shipments to reach 2.615mn t by 2030, implying continued expansion as battery output scales.

The product mix changed quickly during the year. The share of 8μm foil declined, while 6μm remained the mainstream product and accounted for more than 70% of total shipments.

Ultra-Thin Foil Gains Momentum on Copper Cost Pressure

Ultra-thin copper foil gained share as battery producers looked for ways to reduce copper input costs. Persistently high global copper prices pushed cell manufacturers to use thinner foil while maintaining battery performance.

The combined share of 5μm and 4.5μm ultra-thin foil rose to 24% in 2025. This is a major shift for a material category that requires tighter production control, better surface quality and stronger consistency.

Thinner copper foil can help reduce battery weight and improve energy density. It also lowers the amount of copper used per cell, which becomes increasingly important when copper prices remain elevated.

EV Tank expects 5μm and thinner foil to become a key material for high-end batteries. This reflects the industry’s move toward lighter, higher-energy-density cell designs.

However, thinner foil also raises manufacturing difficulty. Producers must control pinholes, tensile strength, elongation, surface roughness and coating compatibility more precisely.

That technical barrier could separate higher-end suppliers from lower-cost producers. As battery customers shift toward thinner grades, qualification and process reliability will become more important than simple capacity.

China Leads Supply as Competition Intensifies

China’s 82.9% share of global shipments shows its dominant role in battery copper foil supply. The country has built large-scale capacity around its lithium-ion battery ecosystem, supported by domestic EV, energy storage and cell manufacturing growth.

Competition intensified in 2025 as the market recovered and producers brought earlier-built capacity on line. This created a more fluid ranking among suppliers.

Longdian Wason ranked first with a 12.2% market share. Huachuang New Material followed after capacity ramp-ups lifted output and sales.

Defu Technology and Jiayuan Technology ranked third and fourth, respectively. Seven companies in the top 10 changed positions during the year, showing how quickly capacity, customer access and product mix are reshaping the sector.

Battery makers also increased procurement from second-tier suppliers to improve supply stability. This suggests buyers are trying to diversify supplier bases rather than rely only on leading producers.

For copper markets, the trend is strategically important. Battery copper foil growth creates a direct link between copper demand and battery technology. But the move toward ultra-thin foil also means battery growth will not translate into copper demand on a simple one-to-one basis.

The sector is therefore entering a more technical phase. Volume growth remains strong, but material intensity, foil thickness, supplier qualification and copper price pressure will all shape future demand.

The Metalnomist Commentary

The copper foil market shows how battery growth can lift copper demand while also forcing material thrift. High copper prices are pushing battery makers toward thinner foil, making technology and process control as important as raw capacity.

Nth Cycle Trafigura Battery Materials Deal Signals Scale-Up in Black Mass Refining

Nth Cycle

Nth Cycle Trafigura battery materials deal marks a significant step for recycled battery metals supply as the US critical metals refiner prepares to expand its refining footprint. Nth Cycle has signed a 10-year binding offtake agreement to supply Trafigura with battery materials valued at $1.1bn.

The agreement covers 2,000 metric tonnes of contained nickel in mixed hydroxide precipitate and 1,500 tonnes of lithium carbonate. These materials will be refined from 12,000 tonnes of black mass, reinforcing the growing commercial role of recycled feedstock in the battery supply chain.

The Nth Cycle Trafigura battery materials deal also gives Trafigura long-term exposure to recycled nickel and lithium units. That matters as battery manufacturers, automakers, and trading houses seek lower-carbon and more traceable alternatives to mined raw materials.

Modular Refining Model Targets Faster Battery Materials Capacity

Nth Cycle plans to establish new operations in South Carolina and the Netherlands, with production scheduled to begin in 2028. The dual-location strategy gives the company access to both North American and European battery supply chains.

The company’s modular refinery system is designed to reduce build time and capital intensity. This model could become important because conventional refining projects often face long development timelines, high upfront costs, and permitting delays.

Black mass refining is becoming a strategic bridge between battery recycling and primary raw material supply. By converting battery waste into mixed hydroxide precipitate and lithium carbonate, refiners can return critical metals into the battery value chain with less dependence on new mining projects.

Trafigura Offtake Strengthens Commercial Validation

The Nth Cycle Trafigura battery materials deal provides commercial validation for Nth Cycle’s refining technology and expansion plan. A 10-year offtake agreement with a major global trading house can support financing, customer confidence, and project execution.

Nth Cycle has also received a €7.5mn grant from the Netherlands’ National Growth Fund under the Critical Raw Materials Lion initiative. This support highlights Europe’s policy focus on domestic and regional critical raw materials capacity.

The agreement reflects a broader shift in battery materials markets. Recycled nickel and lithium are moving from pilot-scale sustainability claims toward bankable supply contracts. As a result, black mass is increasingly becoming an industrial feedstock rather than a waste stream.

The Metalnomist Commentary

This deal shows that battery recycling is entering a more serious commercial phase. The key challenge for Nth Cycle will be execution, because long-term offtake value only matters if modular refining can deliver consistent volume, quality, and cost performance.

Shidai Ruixiang Launches LMFP Battery Material Plant in Gansu

Baiyin Nonferrous Group

China’s Shidai Ruixiang has launched a new LMFP battery material plant with a production capacity of 20,000 tonnes per year. Located in Baiyin city, Gansu province, this marks the first phase of what will become the world’s largest LMFP facility. Once complete, the site will scale to 100,000 t/yr in lithium ferro-manganese phosphate production for next-generation EV battery applications.

The LMFP battery material plant is operated by Shidai Ruixiang, a joint venture between Gansu Elephent Energy and Baiyin Nonferrous Group, a major Chinese state-owned metals producer. The full project will be developed in three phases, although details for the next stages remain undisclosed. This launch reinforces China’s dominant position in advanced battery cathode material (CAM) supply chains.

China Expands LMFP Footprint in Global EV Market

LMFP materials offer higher energy density and longer driving range than traditional LFP cathodes, while keeping manufacturing costs low. However, they have shorter life cycles and reduced charge-discharge capacity, making them more suitable for mid-range EVs or power tools. Despite this, China’s battery sector is accelerating investment in LMFP research and production.

Other major CAM players such as Hunan Yuneng and Ningbo Ronbay are also expanding LMFP production. Ronbay announced a dual LMFP and sodium-ion CAM plant in Xiantao, Hubei, while Yuneng is constructing a dedicated LMFP facility. These efforts position LMFP as a potential mainstream solution for future battery platforms balancing cost, safety, and range.

Strategic Role of State-Backed Metals Companies in CAM Expansion

The Shidai Ruixiang LMFP battery material plant highlights growing integration between state-backed metals enterprises and energy storage innovation. Baiyin Nonferrous brings decades of expertise in copper and zinc processing—critical metals for battery infrastructure—into the cathode materials space. The partnership reflects China's strategy to leverage existing industrial assets for clean tech scalability.

As battery chemistries diversify in response to cost and performance demands, China’s control over both upstream raw materials and downstream manufacturing provides a distinct competitive edge in the global energy transition economy.

The Metalnomist Commentary

The LMFP battery material plant in Gansu represents a strategic shift toward diversified CAM solutions for scalable EV deployment. As Chinese producers push LMFP into the mainstream, global automakers and battery buyers will need to weigh performance trade-offs against cost and availability.

CATL Rio Tinto Partnership Targets Mining Electrification and Battery Circularity

CATL

CATL Rio Tinto partnership plans could accelerate electrification across Rio Tinto’s global mining operations as the metals sector looks for practical ways to cut emissions. The two companies have signed a non-binding agreement to explore cooperation in battery technologies, system integration, recycling, and new energy solutions.

The CATL Rio Tinto partnership connects one of the world’s largest battery producers with a major global supplier of iron ore, copper, aluminium, and lithium. This creates a direct link between upstream resource extraction and the battery systems needed to decarbonise mining fleets, rail, and industrial energy use.

Rio Tinto wants to develop a zero-carbon mining model with global demonstration value. CATL will support that goal through its battery technology, energy system expertise, and experience in large-scale electrification.

Battery Systems Move Deeper Into Mining Operations

Mining electrification is becoming a strategic priority because diesel-powered equipment remains a major source of operating emissions. Battery systems can support electric haul trucks, heavy equipment, rail locomotives, site power systems, and charging infrastructure.

The collaboration could help Rio Tinto improve operating efficiency while reducing carbon intensity. Electrified mining systems may also lower fuel exposure, improve maintenance economics, and support customers that increasingly demand lower-carbon raw materials.

The agreement also reflects a broader shift in mining procurement. Large miners are no longer only buying equipment; they are building partnerships around batteries, energy management, recycling, and circular material flows. This gives battery companies a larger role in mining’s industrial transition.

Critical Minerals Circularity Becomes a Strategic Link

The CATL Rio Tinto partnership will also explore business models for battery materials recycling and critical minerals circularity. This is important because mining electrification will create new demand for lithium, copper, nickel, graphite, rare earths, and other battery-linked materials.

Circularity can help reduce waste and strengthen supply security. If battery materials can be recovered and reused across mining operations, companies can reduce dependence on fresh raw material inputs and build more resilient supply chains.

CATL and BYD are increasingly targeting partnerships with major miners and energy companies. CATL and BYD have already signed agreements with BHP to develop battery solutions for mining equipment and railway locomotives, while BYD has also agreed to work with Aramco on electric and fuel cell vehicle technologies.

The Metalnomist Commentary

Mining electrification is becoming a new battleground for battery companies, miners, and equipment suppliers. The strategic winners will be those that can connect mineral supply, battery deployment, recycling, and low-carbon operations into one industrial ecosystem.

Indonesia Battery Ecosystem Project Moves Forward With New Chinese Partnership

Aneka Tambang

The Indonesia battery ecosystem project is moving into a new phase with a fresh Chinese partnership. Antam, Industri Baterai Indonesia, and HYD Investment signed a framework agreement to develop an integrated battery ecosystem in Indonesia. This follows the exit of LG Energy Solution in 2025. As a result, the Indonesia battery ecosystem project remains alive and strategically important.

The change in partners matters because the project scale remains significant. Antam said the planned investment value is around $5-6 billion. A joint feasibility study will now define the next steps. Therefore, the Indonesia battery ecosystem project is shifting from partner transition into renewed execution planning.

HYD brings a strong industrial base to the table. The consortium includes Zhejiang Huayou Cobalt, EVE Energy, and Daaz Bara Lestari. That mix adds processing, battery, and investment capability. Consequently, the project gains a broader foundation across the battery value chain.

Indonesia Nickel Battery Chain Expands From Ore to Cells

The Indonesia nickel battery chain is central to this project’s logic. Planned facilities include an RKEF plant with 100,000 t/yr of nickel metal equivalent capacity. The project also includes an HPAL plant with 50,000 t/yr of nickel metal equivalent capacity. Therefore, upstream and midstream nickel conversion remain core pillars.

The downstream ambition is equally important. The project is expected to produce 105,000 t/yr of precursors and 30,000 t/yr of cathode materials. It also aims to build 20 GWh per year of nickel-based battery capacity. As a result, the Indonesia battery ecosystem project goes well beyond raw material processing.

Battery recycling also appears in the plan. The proposed recycling capacity is capped at 10,000 t/yr. That addition supports a more circular industrial model. Meanwhile, Antam will supply the nickel ore required for the project.

Antam Battery Project Reinforces Indonesia’s Downstream Strategy

The Antam battery project fits directly into Indonesia’s long-term downstream policy. Jakarta wants to build a local battery industry from mining to refining to final battery production. This new agreement supports that goal with another large integrated platform. Therefore, the project has national strategic value, not just commercial relevance.

This also shows Indonesia’s flexibility in partner management. LGES may have exited, but the broader industrial objective did not disappear. Instead, the project has been restructured around a new consortium. As a result, Indonesia continues pushing its battery ambitions despite partner turnover.

Antam’s role is becoming even more central. The company is involved in this project and also has a separate EV battery joint venture with CATL. That CATL-linked venture is expected to start operations by 2026. Consequently, Antam is emerging as one of the key anchors in Indonesia’s nickel battery chain.

The Metalnomist Commentary

This partnership matters because it shows Indonesia’s battery strategy is bigger than any one foreign partner. The country is still determined to convert nickel strength into downstream battery power. If execution improves, Indonesia could become one of the most integrated battery manufacturing hubs outside China.

Falling Battery Costs Drive Longer Duration Energy Storage Expansion

CERAWeek

Shift to LFP chemistry and falling raw material prices boost two-hour-plus BESS projects, but SoC accuracy remains a hurdle.

Lower Battery Costs Accelerate BESS Deployment

Lower battery prices are transforming the energy storage market by enabling more battery energy storage systems (BESS) with longer durations, according to experts at the CERAWeek by S&P Global conference in Houston. Charlotte Johnson, general manager of InfraFlex (a Kraken unit), stated, "Lower prices have accelerated the deployment of BESS of two hours and more, rather than the one-hour systems."

Battery cells represent about 50% of total project costs, while the remainder goes to labor, operations, and maintenance. As battery cell costs fall, project developers are increasingly building longer-duration BESS to meet grid flexibility and renewable integration needs.

LFP Batteries Drive Cost Cuts but Add Challenges

The price drop stems largely from falling battery raw material costs and a rapid shift to lithium iron phosphate (LFP) battery chemistry. LFP cells are cheaper and more stable than nickel-based alternatives, making them ideal for utility-scale BESS projects.

However, panelists warned of a drawback: LFP systems have less predictable state of charge (SoC) behavior. Inaccurate SoC readings complicate real-time optimization and revenue maximization for grid operators and energy traders.

Outlook: Market Growth Continues Amid Technical Hurdles

While SoC monitoring remains a challenge, the economic advantages of LFP and longer-duration storage outweigh the downsides for now. Developers and technology providers are focusing on improving SoC management tools and software to unlock greater value from low-cost, longer-duration systems.

EU Raw Materials Platform Targets Strategic Metals Supply Security

EU, Raw Materials Platform

EU raw materials platform development has advanced as the European Commission launched a new online mechanism to connect European offtakers with suppliers of strategic raw materials. The EU raw materials platform is designed to support demand aggregation, joint purchasing and better market information across critical supply chains.

The platform covers all 17 strategic raw materials listed under the Critical Raw Materials Act. These materials are central to batteries, rare earth magnets, defence systems, semiconductors, renewable energy, advanced manufacturing and industrial resilience.

EU raw materials platform activity will take place through structured rounds. The first diversification round will target operational projects where materials are already available or expected in the near term, with a focus on rare earths, defence-related materials and battery metals.

The mechanism will not provide financing or directly support negotiations. However, it can improve visibility across supply, demand, storage, investment opportunities and financing options, which are often fragmented in strategic raw material markets.

Demand Aggregation Could Strengthen Minor Metals Markets

Demand aggregation is the most important function of the platform. Many strategic materials are needed in small volumes by individual companies, but they carry high industrial and defence value.

This is especially true for minor metals such as gallium and germanium. These materials are used in semiconductors, optics, solar technologies, defence electronics and advanced communications systems, but individual buyers may not require large enough volumes to support new supply projects alone.

Pooling demand can change that equation. If several European buyers aggregate requirements, suppliers may see larger, more stable offtake volumes. This can improve confidence for upstream mining, refining, recycling and midstream processing projects.

The same logic applies to rare earths. Magnet makers, motor producers, defence manufacturers and clean-energy equipment suppliers often need secure access to neodymium, praseodymium, dysprosium and terbium. Aggregated demand could make European purchasing more credible to non-EU suppliers.

Battery metals may also benefit. Lithium, cobalt, nickel, manganese and graphite supply chains are increasingly shaped by long-term offtake, regional qualification and industrial policy. A shared platform can help buyers identify supply options before shortages become acute.

The platform therefore addresses a structural weakness in Europe’s critical materials strategy. Europe has strong downstream industries, but many of those industries purchase strategic metals in fragmented, company-by-company channels.

By collecting and exchanging market data, the mechanism could help convert dispersed demand into more bankable offtake signals. That is important for suppliers seeking financing, customers and predictable long-term buyers.

Platform Supports EU Diversification but Does Not Replace Financing

The EU raw materials platform is part of a broader strategy to reduce external dependencies under the Critical Raw Materials Act. Europe wants to diversify supply, strengthen domestic processing and secure access to materials needed for the energy transition and defence.

However, the mechanism is not a full project-financing tool. Negotiations will take place outside the system, and the platform will not guarantee deals or provide direct financial backing.

This limits what the mechanism can achieve by itself. Strategic raw material projects still need permitting, capital, technology, customer qualification, logistics and long-term price visibility.

But the platform can still play a useful role. It can bring buyers and suppliers into the same market framework, improve demand transparency and identify where joint purchasing could support supply diversification.

The first diversification round will be important because it focuses on projects close to availability. This avoids the problem of relying only on long-dated mining projects that may take years to enter production.

The inclusion of storage options is also relevant. Strategic materials supply security is not only about production. It also depends on inventories, emergency access, buffer stocks and coordinated procurement during disruption.

The broader platform also includes gas and hydrogen mechanisms. This shows that the EU is applying a similar strategic procurement model across energy and raw materials, where fragmented buying can weaken market leverage.

For Europe’s industrial base, the key issue is execution. The platform must move beyond data sharing and create real commercial connections between offtakers and suppliers. Otherwise, it risks becoming another policy tool without enough market impact.

For suppliers, the opportunity is clearer. A credible pool of European demand could make projects more attractive, especially in rare earths, gallium, germanium and battery materials where supply diversification is politically urgent.

The Metalnomist Commentary

The EU raw materials platform is not a financing solution, but it could become an important demand-signalling tool. Its success will depend on whether Europe can turn fragmented buyer interest into real offtake volumes that support new strategic metals supply.

Livium LGES battery recycling deal extends Australia’s circular battery value chain

Livium

The Livium LGES battery recycling deal is expanding Australia’s role in the circular battery economy and black mass supply. Under the renewed Livium LGES battery recycling deal, Livium will process both recalled and end-of-life residential batteries. As a result, the Livium LGES battery recycling deal now runs to 2029 and anchors new growth in Australian black mass output.

Black mass volumes rise as Livium expands feedstock

Livium will continue processing LG Energy Solution batteries recalled in Australia and now add end-of-life units from local users. This expanded access to feedstock should increase black mass volumes and stabilise plant utilisation over the medium term.

The recycler sold over 350t of black mass in the 2024-25 financial year to 30 June. Therefore, management expects higher sales in 2025-26 as the Livium LGES battery recycling deal ramps up. Livium channels this black mass to processing partners such as South Korea’s SungEel Hitech. These partners convert black mass into battery chemicals, which return to global cathode and cell producers.

Meanwhile, LGES is building a 20,000 t/yr battery recycling plant in France with Derichebourg. That European joint venture will also produce and process black mass from end-of-life batteries from 2027. Together, these initiatives show how LGES is building regional recycling hubs to secure critical materials.

Livium LGES battery recycling deal supports lithium recovery innovation

The Livium LGES battery recycling deal also complements Livium’s work on recovering lithium from spodumene waste. Livium signed an agreement with Australian producer Mineral Resources in January to optimise this extraction technology. As a result, the partners formed a joint venture in August to commercialise the process at scale.

This positions Livium not only as a black mass producer but also as a technology player in lithium recovery. For LGES, the partnership reduces long-term exposure to mined feedstock volatility and environmental scrutiny. It also aligns with automakers’ and battery producers’ ESG targets on recycling and resource efficiency.

In strategic terms, expanding the Livium LGES battery recycling deal strengthens regional supply security for nickel, cobalt and lithium units locked in black mass. It also supports Australia’s ambition to move up the value chain from raw material supplier to processing and technology hub.

The Metalnomist Commentary

This partnership illustrates how structured offtake agreements can accelerate the build-out of regional battery recycling ecosystems. For metals markets, increasing black mass flows from deals like this will gradually reshape demand for primary material and reward recyclers with robust technology and downstream access.

China LFP Supply Deal Between Wanrun and CATL Secures 1.32 Million Tonnes

Wanrun

China LFP supply deal reached historic proportions as Hubei Wanrun New Energy Technology signed a five-year agreement to deliver 1.32 million tonnes of lithium-iron-phosphate cathode materials to CATL. The massive China LFP supply contract from May 2025 through May 2030 represents one of the largest battery materials procurement agreements in the industry, highlighting CATL's aggressive expansion strategy and LFP technology's growing market dominance.

Strategic Partnership Drives Battery Technology Innovation

China LFP supply partnership extends beyond simple procurement to encompass joint research and development initiatives. Wanrun and CATL agreed to collaborate on high-density LFP product iteration and mass production capabilities while jointly exploring new energy market opportunities. CATL committed to purchasing at least 80% of promised monthly quantities, providing Wanrun with guaranteed revenue streams and production planning certainty.

Meanwhile, Wanrun demonstrated strong operational performance with 2024 LFP production reaching 233,108 tonnes, representing 51% growth from 2023. Sales volumes increased 39% to 228,240 tonnes during the same period, reflecting robust market demand and the company's expanding manufacturing capabilities. This performance trajectory supports the substantial supply commitments made to CATL.

CATL's Market Leadership Drives Demand Growth

However, CATL's explosive growth trajectory necessitates secured raw material supplies for sustained market expansion. The battery giant sold 120 GWh of batteries in Q1 2025, marking 30% year-over-year growth and reinforcing its position as China's largest battery producer. CATL raised $4.6 billion through Hong Kong Stock Exchange share sales on May 20th, specifically targeting global battery market expansion financing.

Therefore, the Wanrun supply agreement aligns perfectly with CATL's international growth strategy and capital deployment plans. The five-year commitment provides production stability while supporting CATL's aggressive capacity expansion across multiple global markets. This strategic partnership model demonstrates how Chinese battery companies integrate vertically to secure critical material supplies.

LFP Technology Gains Global Market Share

Furthermore, lithium-iron-phosphate batteries captured nearly half of the global electric vehicle battery market in 2024 according to the International Energy Agency. LFP technology offers significant advantages including lower manufacturing costs and enhanced safety performance compared to ternary battery alternatives. These benefits drive increasing adoption across automotive manufacturers seeking cost-effective energy storage solutions.

As a result, the Wanrun-CATL partnership positions both companies advantageously within the rapidly expanding LFP segment. China's dominance in LFP production creates competitive advantages for domestic battery manufacturers while supporting the country's electric vehicle industry leadership. The supply agreement reinforces China's integrated approach to battery supply chain control from raw materials through finished products.

The Metalnomist Commentary

The Wanrun-CATL supply agreement exemplifies China's systematic approach to battery supply chain integration, securing critical materials access while driving technology innovation through strategic partnerships. This 1.32 million tonne commitment reflects both companies' confidence in LFP technology's long-term market prospects and China's continued dominance in global battery manufacturing despite increasing international competition.

Pure Lithium Secures $300mn EXIM Support for US-Based Lithium Metal Battery Facility

Pure Lithium Corporation

Pure Lithium has received a $300 million Letter of Interest (LOI) from the Export-Import Bank of the United States (EXIM) to support its planned industrial-scale lithium metal battery plant. If approved, the Pure Lithium EXIM loan would fall under EXIM’s “Make More in America” initiative aimed at rebuilding domestic manufacturing capacity and securing supply chains in strategic sectors like energy storage.

The proposed facility will use Pure Lithium’s proprietary “Brine to Battery” process, which directly converts brine into lithium metal anodes—eliminating graphite, cobalt, nickel, and manganese. This vertically integrated method enables a fully US-based battery supply chain, from raw material extraction to cell production. CEO Emilie Bodoin emphasized the project's potential to reshape global lithium battery sourcing models.

Disruptive Battery Chemistry Supports Strategic US Objectives

The Pure Lithium EXIM loan could accelerate commercialization of lithium metal vanadium oxide batteries, which offer higher energy density without relying on traditional cathode materials. This technology positions Pure Lithium at the forefront of post-Li-ion battery innovation, directly supporting the U.S. push for clean tech self-reliance.

Pure Lithium’s partnerships reinforce its vertically integrated vision. It sources lithium concentrate from E3 Lithium in Alberta, Canada, and collaborates with Saint-Gobain Ceramics to engineer water-blocking lithium-selective membranes—a key component in its novel extraction process.

EXIM Financing to Boost US Battery Supply Chain Resilience

EXIM’s Make More in America strategy supports projects that improve domestic industrial competitiveness in sectors facing global strategic risk. The Pure Lithium EXIM loan would directly address U.S. concerns over dependence on foreign-dominated battery material supply chains, especially China.

If finalized, the funding will catalyze Pure Lithium’s ability to scale manufacturing within U.S. borders while lowering barriers for next-generation battery adoption. This aligns with U.S. energy security goals and rising demand for alternative battery chemistries in defense, mobility, and grid storage sectors.

The Metalnomist Commentary

The Pure Lithium EXIM loan represents a critical step in reshoring advanced battery manufacturing. As supply chain risks intensify and lithium metal demand grows, projects that fuse innovation with domestic sourcing will shape the next era of U.S. battery independence.

GM Redwood Battery Storage Project Extends EV Battery Value Chain

BESS

GM Redwood battery storage project will deploy repurposed electric vehicle battery packs at a General Motors plant in Michigan, extending the useful life of batteries before final recycling.

GM Redwood battery storage project will combine 100 reused EV battery packs into a 1.5MW/7.2MWh battery energy storage system. The installation will provide dispatchable power and help reduce electricity costs at the manufacturing site.

GM Redwood battery storage project is significant because it connects battery manufacturing, vehicle use, second-life energy storage and materials recovery within one supply chain. Redwood estimates the system will save more than $3mn in electricity costs over its operating life.

The project also shows how retired EV batteries can remain economically valuable even after they no longer meet automotive performance requirements.

Second-Life Batteries Add Value Before Recycling

EV batteries typically retain significant usable capacity when they are removed from vehicles. That remaining energy storage capability can support stationary applications where weight and space are less restrictive than in automotive use.

Repurposing packs for BESS applications can therefore delay recycling while extracting additional economic value from the battery.

For industrial facilities, storage systems can help manage peak electricity demand, provide backup power and shift energy consumption toward lower-cost periods.

The Michigan installation gives GM a direct opportunity to reduce plant electricity costs using batteries already linked to its own vehicle ecosystem.

This model also reduces the need for newly manufactured cells in some stationary storage applications. That can lower incremental demand for lithium, nickel, cobalt, graphite and other battery materials.

However, second-life systems still require testing, battery management and safety controls because used packs can have different degradation histories and performance characteristics.

Redwood Builds Closed-Loop Battery Supply Chain With GM

Redwood's relationship with GM extends across multiple stages of the battery lifecycle. The recycler handles manufacturing scrap, end-of-life EV packs and now second-life energy storage deployment.

Redwood has already received more than 28,000t of material from GM, with another 10,000 EV battery packs expected to enter the pipeline.

The company also works with Ultium Cells, GM's joint venture with LG Energy Solution, to recycle battery production scrap from facilities in Ohio and Tennessee.

This creates a more integrated materials loop. Manufacturing scrap can return quickly to recycling, while vehicle batteries can first enter stationary storage before eventually being processed for material recovery.

The approach could become increasingly important as EV battery volumes grow. Recycling alone captures raw materials, but second-life deployment can add another revenue stage before final recovery.

For automakers, that can improve battery economics while strengthening access to recycled lithium, nickel, cobalt and copper over the longer term.

The Metalnomist Commentary

GM and Redwood are showing that the battery circular economy does not begin with recycling. Second-life storage can create an additional commercial stage between vehicle use and materials recovery, improving both battery economics and supply-chain efficiency.

Press Metal Reports 40% Profit Surge in 2024 Amid Strong Aluminium Demand and Vertical Integration Push

Press Metal Holdings

Higher Value-Added Sales and New Indonesian Alumina JV Offset Raw Material Pressures

Press Metal Delivers Record Earnings in 2024 Despite Raw Material Challenges

Malaysia’s largest aluminium producer, Press Metal Holdings, posted a 39.82% increase in pre-tax profit in 2024, reaching 2.3 billion ringgit ($519.3 million). This growth came on the back of rising aluminium prices and strong demand for value-added products, although higher alumina costs dampened some of the gains.

Annual revenue rose by 8% year-on-year to 14.91 billion ringgit, with fourth-quarter profits up 24% to 542.5 million ringgit, as reported by the company. Q4 revenue inched up 0.73% to 3.56 billion ringgit, signaling steady market demand despite input cost volatility.

Strategic JV in Indonesia Strengthens Upstream Position

To manage raw material price swings, Press Metal launched a strategic joint venture in West Kalimantan, Indonesia, in September 2024. The project involves the development of an integrated alumina refinery and supporting infrastructure, aimed at enhancing upstream control and reducing exposure to global bauxite and alumina supply risks.

CEO Koon Poh Keong noted that although alumina prices have begun to ease, policy uncertainties around bauxite sourcing continue to pose risks. The company’s vertical integration strategy is designed to boost operational resilience and protect margins against market fluctuations.

Aluminium Demand Remains Strong Across Traditional and Green Sectors

Looking ahead, Press Metal remains optimistic, citing a balanced aluminium market supported by robust investment across sectors. Demand continues to grow in clean energy, electric vehicles, grid infrastructure, and battery storage, in addition to traditional industrial uses.

By reinforcing its supply chain integration, Press Metal is positioning itself to sustain profitability while adapting to raw material cost dynamics and evolving end-market trends.

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.