Amazon Corning Fiber Optics Deal Expands US Data Center Supply Chain

Corning

Amazon Corning fiber optics investment will expand US manufacturing capacity for optical fiber, cable and connectivity systems used in hyperscale data centers. Amazon plans multibillion-dollar investment under a multi-year supply agreement with Corning.

Amazon Corning fiber optics partnership reflects the growing infrastructure requirements behind artificial intelligence and cloud computing. Higher computing density requires faster data transmission between servers, accelerators and data centers, making optical connectivity an increasingly strategic component.

Amazon Corning fiber optics expansion also has implications for specialty metals. Fiber optics are the largest end-use market for germanium in the US, linking rapid data center construction with demand for a highly concentrated critical mineral.

The partnership will also create around 1,000 advanced manufacturing jobs in North Carolina and expand training for fiber optic technicians.

AI Data Centers Drive Optical Fiber Capacity Expansion

Amazon will use Corning's optical fiber, cable and connectivity products across its data center network. The agreement gives Corning a large anchor customer as it expands domestic production.

Data center growth is changing the materials required for digital infrastructure. AI systems need enormous computing capacity, but processors are useful only if data can move between them quickly enough.

Optical fiber addresses that bottleneck by supporting high-speed, high-bandwidth transmission over distances where conventional electrical connections become less efficient.

This means AI investment is increasingly spreading beyond semiconductor chips into photonics, optical networking, power equipment, cooling systems and grid infrastructure.

Corning expects to increase fiber production by more than 50%. The company is also planning three new manufacturing facilities in North Carolina and Texas through its partnership with Nvidia.

The combination of Amazon and Nvidia demand gives Corning strong visibility for future capacity utilisation. It also strengthens the case for further US investment in optical connectivity manufacturing.

Germanium Becomes More Exposed to Data Center Growth

The expansion carries a direct critical minerals angle because germanium is widely used in optical fiber production. The US fiber optics industry is already the country's largest end-user of the metal.

Germanium is used to modify the refractive properties of glass in fiber optic systems, making it an important material for high-performance communications infrastructure.

That creates a new demand link between AI investment and minor metals. Rapid data center expansion can increase germanium consumption even though only relatively small quantities are used in individual fiber products.

Supply security therefore matters. Germanium production and processing remain geographically concentrated, making diversified sourcing increasingly important as optical infrastructure expands.

For Amazon and other hyperscale data center operators, secure connectivity supply will become as important as access to processors and power. For Corning, the opportunity lies in combining domestic manufacturing scale with long-term demand from major technology customers.

The wider industrial message is clear. AI infrastructure is creating new demand not only for copper and semiconductors, but also for specialty materials embedded deeper inside optical communications systems.

The Metalnomist Commentary

Amazon's investment shows that the AI infrastructure race is moving into optical connectivity and its upstream materials. Germanium could become one of the quieter beneficiaries as data centers require increasingly dense, high-speed fiber networks.

Ford Energy BESS Deal With EDF Signals Automaker Push Into Grid Storage

Ford Energy

Ford Energy BESS deal with EDF Power Solutions North America marks a major step in Ford’s move from vehicle batteries into grid-scale energy storage. Ford Energy will supply EDF with 20GWh of battery energy storage systems over five years starting in 2028.

Ford Energy BESS deal gives EDF access to up to 4GWh/yr of DC block systems for utility-scale storage projects across the US. The agreement positions Ford Energy as a key domestic supplier for large energy storage developers.

Ford Energy BESS deal also shows how automakers are repurposing battery manufacturing assets for stationary storage. Ford is investing $2bn to convert its Glendale, Kentucky, battery facility for the BESS market.

The transaction connects three fast-growing demand drivers: grid storage, data centers and US-made battery systems. It also reinforces the strategic role of lithium iron phosphate batteries in stationary applications.

LFP Storage Supports Utilities, Data Centers and Industrial Customers

Ford Energy’s DC Block is a standardized 20ft containerized battery energy storage system. Each unit has 5.45MWh of capacity and uses lithium iron phosphate prismatic cells.

The system is available in two-hour and four-hour discharge configurations. That flexibility allows EDF to deploy storage across different grid services, renewable integration and peak-shifting applications.

LFP batteries are well suited to stationary storage because they offer cost advantages, safety benefits and long cycle life. They also reduce exposure to nickel and cobalt compared with higher-nickel lithium-ion chemistries.

Ford Energy plans to assemble BESS in the US for utilities, data centers, large industrial customers and commercial users. That customer mix reflects how electricity demand is changing.

Data centers are becoming a major new source of power demand. Battery storage can help manage grid congestion, renewable intermittency and backup power requirements.

EDF already has a large platform for deployment. The company has developed 26GW of projects and holds 17GW under service contracts, giving Ford Energy a major channel into the US storage market.

Repurposed Battery Capacity Strengthens US Storage Supply Chain

Ford Energy plans to deploy at least 20GWh/yr of BESS capacity, with first customer deliveries scheduled for late 2027. The EDF agreement will absorb a meaningful share of early output from 2028.

The Glendale investment is strategically important. It shows how battery manufacturing capacity originally linked to vehicle electrification can be redirected toward stationary storage.

This matters because EV demand growth has become less linear, while grid storage demand continues to rise. Automakers with battery manufacturing assets may find BESS a valuable second market.

The deal also strengthens the US energy storage supply chain. Domestic assembly can reduce logistics risk, support local content requirements and improve delivery certainty for infrastructure customers.

For battery materials, the agreement supports demand for lithium, phosphate, graphite, copper, aluminium and battery-grade chemicals tied to LFP cells and storage systems.

The wider implication is clear. Battery demand is no longer only an EV story. Utilities, data centers and industrial customers are becoming major buyers of battery systems as power reliability becomes a strategic constraint.

The Metalnomist Commentary

Ford’s EDF agreement shows that stationary storage is becoming a major outlet for battery manufacturing capacity. The strategic winners will be companies that can combine US assembly, LFP chemistry and long-term supply agreements with grid and data-center customers.

Amazon Corning Fiber Optics Deal Expands US AI Infrastructure Supply

Corning

Amazon Corning fiber optics investment will expand US production of optical fiber, cable and connectivity systems used in data centers. Amazon plans multibillion-dollar investment under a multi-year agreement with Corning.

Amazon Corning fiber optics partnership reflects the rapid infrastructure buildout behind artificial intelligence and cloud computing. Faster data transfer between servers, accelerators and data centers is increasing demand for high-performance optical networks.

Amazon Corning fiber optics expansion also has a direct critical minerals angle. Fiber optics are the largest end-use market for germanium in the US, linking AI infrastructure growth with demand for a strategically important minor metal.

Corning expects the partnership to create about 1,000 advanced manufacturing jobs in North Carolina. The companies also plan to expand technician training to support the larger manufacturing base.

AI Data Centers Drive Optical Fiber Capacity Growth

Amazon will use Corning's optical fiber, cable and connectivity products across its data center network. The agreement gives Corning a major anchor customer as it expands domestic manufacturing.

AI computing requires enormous volumes of data to move quickly between processors, memory and networking systems. As computing clusters grow larger, optical connectivity becomes increasingly important for maintaining high bandwidth and low latency.

This means AI investment is spreading beyond semiconductor chips into photonics, fiber networks, power equipment, cooling systems and grid infrastructure.

Corning expects to increase fiber production by more than 50%. It also plans three new manufacturing facilities in North Carolina and Texas through a separate partnership with Nvidia.

The combination of Amazon and Nvidia demand gives Corning greater visibility for future capacity utilization. It also supports additional investment in US optical communications manufacturing.

Germanium Demand Gains New AI Infrastructure Exposure

The expansion is important for germanium because the metal is widely used in fiber optic manufacturing. Germanium compounds help control the refractive properties of optical glass, supporting efficient transmission of high-speed data.

Rapid fiber deployment therefore creates another demand channel for the minor metal. Individual fiber products use relatively small quantities, but large-scale data center construction can materially increase aggregate consumption.

Supply security is becoming more important because germanium production and processing remain concentrated. Greater AI-related demand could increase competition for refined and high-purity material.

For technology companies, optical connectivity is becoming as critical as access to processors and electricity. For materials suppliers, that means AI demand increasingly reaches deep into specialty metals and advanced materials supply chains.

Corning's expansion shows how data center investment can translate into new demand for physical infrastructure and strategic raw materials far beyond the semiconductor sector.

The Metalnomist Commentary

AI infrastructure is becoming a broad materials story, not just a chip story. As hyperscale data centers expand, germanium and optical fiber capacity could become increasingly strategic bottlenecks.

Battery Energy Storage Systems Accelerate Data Center Deployment

Battery Energy Storage Systems

Battery energy storage systems are becoming a practical tool for accelerating data center deployment as hyperscalers search for faster access to power. Industry executives said storage, combined with solar and wind, can help large technology companies bring major facilities online more quickly.

The discussion reflects a growing reality in the power market. Data center demand is rising alongside broader electrification, placing pressure on grids that were not designed for such rapid large-load growth.

Battery energy storage systems help address this problem by providing flexibility where grid connections, peak demand, or local capacity constraints delay projects. For hyperscalers, speed to power is now as important as land, chips, cooling, and fiber connectivity.

Storage Becomes a Bridge Between Hyperscalers and Grid Constraints

Battery energy storage systems can help data centers manage peak demand, reduce grid stress, and support faster deployment when full baseload supply is not immediately available. This makes storage a bridge between large electricity users and constrained power systems.

Invenergy said a mix of solar, wind, and storage can give hyperscalers strong speed-to-power advantages while remaining affordable. That combination is increasingly attractive because data centers need large volumes of electricity but also face public scrutiny over power prices.

The affordability issue is becoming more sensitive. US electricity prices rose by 6.3% in January, and rising demand from data centers is one of the factors adding pressure. If households feel they are paying more while large-load users secure cheaper power, the political risk around data center growth will increase.

Flexible Power Models Could Reshape Battery Demand

Technology companies are responding with a wider power strategy. Instead of relying only on large central power plants, they are looking at solar, wind, on-site batteries, demand response, and distributed storage.

Google said that in locations where peaking capacity is the main issue, faster solutions may include ramping down for short periods, switching to on-site batteries, or paying other customers to install batteries in their homes. This approach turns batteries into grid flexibility assets, not only backup systems.

For the materials supply chain, this matters because data center growth could become a stronger demand driver for batteries, lithium, graphite, iron phosphate materials, copper, aluminium, transformers, power electronics, and grid equipment. As AI infrastructure scales, battery storage will increasingly sit at the intersection of digital infrastructure and energy security.

The Metalnomist Commentary

Battery energy storage systems are moving from optional backup equipment to strategic infrastructure for hyperscaler growth. The next bottleneck for AI data centers may not be computing hardware alone, but the ability to secure flexible, affordable, and politically acceptable power.

USA Rare Earth Signs Deal to Supply Magnets for Data Centers

USA Rare Earth

Rare Earth Magnets Enter Data Center Cooling Supply Chains

USA Rare Earth (USAR) has signed an agreement with Moog Electric Motion Solutions to supply rare earth magnets for data center cooling systems. The deal focuses on Moog’s precision coolant pumps, which are critical to managing the rising energy intensity of large-scale data centers.

While financial terms and volumes remain undisclosed, the memorandum highlights the growing importance of heat-resistant neodymium magnets in meeting global digital infrastructure needs. According to Moog, advanced magnet technology is essential to sustain efficient cooling under heavy workloads.

Strategic Path Toward Domestic Magnet Production

USA Rare Earth plans to begin neodymium magnet production in 2026 with a target of 5,000 tonnes annually. The Stillwater, Oklahoma plant under development will be the first large-scale U.S. facility for sintered neodymium magnets, reducing reliance on overseas suppliers.

USAR already holds offtake agreements with both U.S. and South Korean companies, positioning itself as a strategic partner in global supply chains. The deal with Moog demonstrates early market traction for its planned capacity, especially in the fast-expanding data center sector.

The Metalnomist Commentary

USA Rare Earth’s agreement with Moog reflects a convergence of two critical industries: digital infrastructure and rare earth supply security. With data centers driving unprecedented energy demand, advanced magnets for cooling solutions will become a core enabler of operational stability. The success of USAR’s Oklahoma plant will not only support U.S. energy transition goals but also challenge China’s long-held dominance in rare earth magnet production.

Bonnell Aluminum Shipments Fall as Solar, Auto and Construction Demand Weakens

Bonnell

Bonnell Aluminum shipments fell in the first quarter as weaker demand from solar panel manufacturers, automotive customers and nonresidential building markets weighed on the US extruder. Total shipments declined by 7.3% year on year to 35.2mn lb.

Bonnell Aluminum shipments showed the split in US extrusion demand. Traditional volume markets weakened, while T-slotted extrusions used in data centers, automation and manufacturing increased sharply.

Bonnell Aluminum shipments also reflected a more difficult order environment. New orders fell by 20% to 2.8mn lb/week, while open orders dropped by 24% to 19mn lb at the end of the quarter.

The company said open orders are now below levels normally associated with stable demand. That signals weaker near-term visibility for US extruders despite revenue growth from higher metal cost pass-through.

Solar, Automotive and Construction Weakness Pressure Volumes

Nonresidential building and construction shipments fell by 6% as higher costs and economic uncertainty weighed on demand. This is important because construction remains one of the largest end-use markets for aluminum extrusions.

Automotive and transportation shipments fell by 19%. Manufacturers faced higher cost pressure, which reduced extrusion consumption in a sector already sensitive to borrowing costs, tariffs and consumer demand.

Electrical shipments were the weakest segment. Deliveries fell by 45% after the expiration of federal tax credits for solar panels.

The solar decline shows how policy incentives can directly affect aluminum extrusion demand. When installation incentives weaken, demand for solar frames, mounting systems and related electrical infrastructure can slow quickly.

Revenue still increased by 19.3% to $159.5mn. The gain came mainly from passing higher metal costs through to customers rather than stronger physical volume.

This distinction matters for aluminum processors. Higher revenue can mask weaker demand if it is driven by metal price inflation instead of shipment growth.

Data Centers and Tariff Enforcement Offer Offset

T-slotted extrusion shipments rose by 70% from a year earlier. These products are used in data centers, automation and manufacturing, where demand for data containment and infrastructure continues to grow.

The strength in T-slotted extrusions shows how data center investment is creating new demand pockets for aluminum. As AI infrastructure expands, demand for modular framing, enclosures, racks, support systems and industrial automation structures can increase.

Bonnell also pointed to import competition. The company said new orders were hurt by softer US demand and undervaluation of imported extrusions.

The White House changed enforcement of Section 232 tariffs on aluminum derivative products on 6 April. Primary metal products are now tariffed at 50%, rather than 50% of the reported metal content value inside an item.

Bonnell said the change should close a loophole that allowed undervaluation of imported manufactured aluminum products. Stronger enforcement could improve the competitive position of domestic extruders if applied consistently.

The company is also adjusting its billet strategy. It has moved away from Middle Eastern billet supply and is favouring North American suppliers after supply constraints linked to the US-Israel war on Iran.

Bonnell is also optimising its own billet casting operations at Carthage, Tennessee, and Newnan, Georgia. This should help reduce exposure to external billet supply disruption and improve feedstock control.

The quarter therefore shows two competing forces. End-market demand is weak in several traditional segments, but data center demand, tariff enforcement and domestic billet optimisation may provide strategic support.

The Metalnomist Commentary

Bonnell’s first quarter shows that US aluminum extrusion demand is no longer moving as one market. Construction, solar and automotive are weak, but data centers and tighter tariff enforcement could create a more selective recovery for domestic extruders.

SK Innovation Boosts Malaysia Data Center with Advanced Energy Systems

SK Innovation

South Korea’s SK Innovation data center energy systems will power one of Asia’s largest digital infrastructure projects in Malaysia. The company has signed an agreement with Bridge Data Centers to provide advanced backup power, energy storage, and fuel cell systems, alongside cooling technologies and a Data Center Management System (DCMS).

SK Innovation Data Center Energy Systems in Malaysia

SK Innovation will design and deliver backup power systems, including energy storage systems (ESS) and hydrogen fuel cells, for Bridge’s Malaysian facility. The integration of DCMS will ensure real-time monitoring and rapid response to power fluctuations, enabling seamless data center operations.

Malaysia Data Center Expansion and Capacity Goals

Bridge Data Centers’ new Malaysian site is projected to exceed 270MW capacity, placing it among Asia’s largest data centers. The company currently operates 300MW of live capacity and has more than 200MW under construction, reflecting growing digital infrastructure demand in Southeast Asia.

The Metalnomist Commentary

SK Innovation’s involvement highlights how energy companies are increasingly central to the data center power transition. By integrating ESS and fuel cells, SK addresses both sustainability goals and operational reliability. This partnership also underscores Malaysia’s rising role as a regional data hub driven by cloud, AI, and digital service growth.

Navitas Expects Surging GaN Demand in 2025 Driven by AI Data Centers and EV Markets

Navitas

Changan EV Deal and Expanding AI Infrastructure Mark Pivotal Year Ahead for Gallium Nitride Adoption

AI and EV Sectors to Fuel Gallium Nitride Growth in 2025

Navitas Semiconductor forecasts robust demand for gallium nitride (GaN) power devices in 2025, particularly in artificial intelligence (AI) data centers and electric vehicles (EVs). The U.S.-based firm reported that GaN revenue soared by over 50% in 2024, hitting record levels. Growth was led by mobile, consumer electronics, and the ramp-up of AI-based data center applications in the second half of the year.

While silicon carbide (SiC) revenues declined due to weaker demand in solar and industrial markets, GaN has proven resilient, gaining traction across high-growth sectors that prioritize energy efficiency and performance.

AI Data Centers and Global Expansion Define Strategic Growth

Navitas has seen its AI data center customer pipeline surge to over $165 million in 2024, more than doubling from $70 million in 2023. The company began sampling its 80–120V GaN fan lift devices designed for 48V DC-to-DC converters in data centers and expects significant revenue from this segment in 2025. It will pursue both SiC and GaN technologies to serve next-generation power architectures.

AI platforms such as DeepSeek are driving decentralized computing and edge AI, which are expected to require more efficient power delivery systems. Navitas anticipates this trend will accelerate adoption of its GaN and SiC components across cloud infrastructure.

EV and Solar Integration Signal Next Wave for GaN Applications

Navitas is now sampling 48V EV battery systems and expects the strongest demand growth to begin in China. The company’s GaN technology has secured its first EV production contract, set for H1 2026, targeting on-board charging systems. Notably, Changan Automobile selected Navitas GaN devices for its Qiyuan E07 platform, forecasting a 10,000km increase in range and up to 20% reduction in charging costs versus traditional silicon solutions.

In the solar sector, GaN is expected to debut commercially in mid-2025 with the launch of Navitas' new GaN-based micro-inverter. This technology promises to reduce size, weight, and cost while enhancing conversion efficiency.

Despite these industrial advances, GaN adoption in consumer electronics will remain strong. Navitas predicts GaN chargers will power over 10% of all mobile devices in 2025, with expansion into high-growth markets such as India, Latin America, the Middle East, and Africa.

Canadian Solar Battery Storage Guidance Jumps 21% on Data Center Demand

Canadian Solar

Canadian Solar battery storage shipments guidance for 2025 surged 21% as the renewable energy company capitalizes on growing demand from data centers and cryptocurrency mining operations. The company now expects utility-scale battery energy storage system (BESS) deliveries to reach 7-9 GWh in 2025, reflecting strong market fundamentals despite challenging industry conditions.

Data Centers Drive Battery Storage Market Growth

Canadian Solar battery storage business benefits from accelerating digitalization trends requiring reliable backup power solutions. Data centers and cryptocurrency mining facilities increasingly demand large-scale energy storage to ensure operational continuity and manage power costs. The company's revised guidance includes approximately 1 GWh designated for its own renewable energy projects.

Meanwhile, Canadian Solar secured a significant contract with Chilean utility Colbún in April. The deal involves supplying a 228MW/912MWh lithium iron phosphate BESS in Chile's Atacama Region. This project demonstrates the company's ability to compete for major utility-scale installations in key Latin American markets.

Industry Headwinds Impact Financial Performance

However, Canadian Solar faces mounting challenges affecting profitability across its operations. Geopolitical uncertainty reduces business visibility while oversupply and fierce competition pressure margins throughout the renewable energy sector. These factors contributed to deteriorating financial results in the first quarter.

Therefore, the company reported a $76.6 million net loss in Q1 2025, contrasting sharply with $36.2 million net income in the prior year period. Seasonally lower BESS sales and trade-related duties further compressed margins during the quarter.

Q2 Recovery Expected Despite Market Pressures

Canadian Solar battery storage shipments totaled 0.8 GWh in Q1 but management expects significant improvement ahead. The company projects 2.4-2.6 GWh in BESS deliveries during the second quarter, indicating strong sequential growth momentum.

As a result, Canadian Solar positions itself to benefit from structural demand growth in energy storage markets. The company's focus on utility-scale projects and strategic partnerships with major utilities supports its optimistic 2025 outlook despite near-term profitability challenges.

The Metalnomist Commentary

Canadian Solar's upgraded BESS guidance reflects the energy storage sector's rapid evolution driven by digital infrastructure expansion and grid modernization needs. While the company navigates challenging market conditions including oversupply and trade tensions, its strategic positioning in high-growth segments like data center storage creates compelling long-term value propositions for investors and industry stakeholders.

Low-Carbon Aluminum Data Center Cables Advance Through Rio Tinto and Prysmian Trial

Prysmian low carbon aluminum

Low-carbon aluminum data center cables are moving from concept toward industrial validation as Rio Tinto and Prysmian complete a trial using cleaner aluminum feedstock. The partnership links primary aluminum production, cable manufacturing, and fast-growing electricity demand from digital infrastructure.

Rio Tinto produced aluminum rod for the trial using a blend of hydro-powered aluminum from its Alma smelter in Quebec and aluminum made through Elysis technology. Prysmian then used the material pathway to test low-carbon aluminum cable production for data center applications.

The trial forms part of a five-year supply agreement signed in 2023 between Rio Tinto and Prysmian. That deal focuses on low-carbon aluminum made with renewable hydropower from Rio Tinto’s Canadian operations.

Data Center Growth Raises Demand for Cleaner Conductors

Low-carbon aluminum data center cables matter because power infrastructure is becoming a larger part of the data center supply chain. Data centers require large volumes of cable, busbar, grid equipment, and electrical distribution systems as operators expand capacity for cloud computing and artificial intelligence.

Aluminum offers a strategic balance between conductivity, weight, cost, and availability. For cable manufacturers, lower-carbon aluminum can help reduce the embedded emissions of electrical infrastructure without changing the core role of aluminum as a conductor material.

Prysmian’s involvement is important because cable producers sit close to the final customer. If data center owners increasingly ask for lower-carbon materials, cable manufacturers will need stable access to verified low-carbon aluminum supply.

Elysis Technology Remains Strategic but Not Yet Scaled

Elysis aluminum gives the trial a deeper industrial meaning. The Rio Tinto and Alcoa joint venture is developing an emissions-neutral smelting process that could reduce the carbon footprint of primary aluminum production.

However, Elysis aluminum remains in development and is not yet available in large production quantities. This limits near-term commercial impact but supports longer-term qualification work with downstream users such as Prysmian.

Rio Tinto’s hydro-powered Canadian aluminum provides the scalable base for the current supply relationship. Elysis material adds a future-facing technology layer that could become more important if industrial buyers push harder for lower-emission metals.

The Metalnomist Commentary

Low-carbon aluminum data center cables show how digital infrastructure is reshaping metals demand beyond chips and servers. The next competitive advantage may come from verified low-carbon supply chains for the electrical backbone behind data centers.

Michigan BESS Projects Approved to Support Grid Reliability and Data Center Growth

Michigan BESS Projects

Michigan BESS projects received regulatory approval on 27 March, adding 1,332MW of battery energy storage capacity to support grid reliability, renewable power integration and large-load electricity demand. The Michigan Public Service Commission approved six battery energy storage system projects across two major demand areas.

Three of the Michigan BESS projects will provide a combined 1,000MW to support DTE Electric’s integrated resource plan. That plan calls for adding 15,000MW of solar and wind generation in Michigan, making storage capacity essential for balancing intermittent renewable output.

The remaining three projects, totalling 332MW, will support a 1,383MW data center being developed by Green Chile Ventures, an Oracle subsidiary. The storage assets are intended to improve reliability and reduce costs for customers as data center electricity demand rises.

Battery Storage Becomes Critical for Renewable Grid Planning

Battery energy storage systems are becoming a core part of Michigan’s clean power buildout. DTE Electric’s 1,000MW of approved storage will be tied to 20-year tolling agreements, giving the utility more flexibility as solar and wind capacity expands.

This matters because renewable power growth requires fast-response assets that can shift electricity from periods of high generation to periods of high demand. BESS projects can also reduce strain on the grid during peak periods and support more reliable power delivery.

Michigan BESS projects therefore represent more than a backup power investment. They are part of the infrastructure needed to make renewable generation useful at scale and to protect grid stability as electricity demand grows.

Data Center Demand Adds a New Storage Growth Channel

The data center-linked BESS projects show how artificial intelligence and cloud infrastructure are reshaping power markets. Green Chile Ventures must develop 1,383MW of energy storage to match the contracted demand of its data center project.

The approved 332MW is only the first phase of that requirement. Green Chile Ventures will bear the costs over 15 years, while DTE Electric will develop, own and operate the facilities.

This structure highlights a wider market trend. Data centers need faster power access, and battery storage can help bridge the gap between project timelines, grid constraints and customer affordability concerns. Michigan already hosts 74 data centers, with Detroit accounting for 32, making power infrastructure an increasingly important competitiveness factor.

The Metalnomist Commentary

Michigan BESS projects show that battery storage is becoming essential infrastructure for both renewable energy and AI-driven data center growth. The next bottleneck will not only be battery supply, but also transformers, grid equipment, copper, aluminium and permitting capacity.

AXT to Shift Focus Amid Rising Germanium Prices: Challenges and Future Outlook

AXT

AXT, a leading US compound semiconductor supplier, is adjusting its strategy in response to soaring germanium (Ge) prices, which have significantly impacted its margins. The company, primarily known for its production of Ge substrates, announced that it would be pulling back from the germanium substrate market in the fourth quarter due to unsustainable production costs and lower margins. This decision comes after a sharp rise in Ge prices during the third quarter, driven by supply concerns stemming from China's government-imposed export restrictions.

Rising Ge Prices and Impact on AXT’s Business

The price of germanium, a critical material in semiconductor manufacturing, surged in the third quarter, tightening profit margins for AXT. As the world’s primary supplier of germanium, China’s export restrictions have created significant supply chain disruptions. As a result, AXT faced increased production costs that it was unable to pass on to customers, leading the company to pull back from low-margin Ge substrate business.

In the third quarter, AXT’s revenue from germanium substrates dropped to $1.6 million from $2.9 million in the second quarter, though this was still an improvement compared to $1.2 million from the same period last year. The decline in revenue was attributed to the inability to absorb rising material costs and the overall tightening of profit margins. Despite these challenges, AXT remains optimistic about re-entering the Ge substrate market as demand from low-orbit satellite services, such as Elon Musk's Starlink and China’s satellite launches, continues to grow.

AXT’s Shift to Indium Phosphide and Future Prospects

While germanium substrate business faces short-term setbacks, AXT is focusing on its indium phosphide (InP) product line, which has been seeing increased demand, particularly from data centers and artificial intelligence (AI) applications. InP revenue reached $6.8 million in the third quarter, driven by continued demand in AI and passive optical networks. AXT has also launched a new InP product targeting silicon photonics and electro-absorption modulated lasers (EMLs), receiving positive response and a design win from a major customer.

The company remains confident about the future of InP and its potential for growth, especially as AI and data centers continue to expand. Additionally, AXT anticipates a recovery in demand for light-emitting diodes (LEDs) and EMLs, supported by stimulus measures in China’s economy, which could bolster demand from the automotive industry. However, the company has experienced a dip in revenue from gallium arsenide (GaAs) substrates, which was $6.6 million in Q3, down from $9.1 million in Q2, largely due to lower demand and the ongoing economic slowdown in China.

Demand for Gallium and HPT Market Growth

AXT’s joint venture, which supplies gallium raw materials, saw increased demand in the third quarter, but the company’s sales of gallium arsenide substrates have slowed. This trend is in line with broader market conditions, including reduced demand in telecoms after a sharp decline last year. However, the company is still optimistic about future growth in the high-power telecom (HPT) market, driven by the 5G telecom expansion.

AXT continues to see interest from customers in China, particularly those looking for diversified gallium suppliers due to concerns over Chinese export restrictions on gallium. Despite challenges, AXT’s raw material supply chain remains stable, and the company expects growth in its core markets, particularly with 5G technology and emerging industrial applications.

Conclusion

AXT’s strategic decision to step back from the germanium substrate market reflects the company's commitment to maintaining profitability despite volatile raw material costs. While facing challenges in Ge and GaAs markets, AXT is diversifying its portfolio and focusing on high-demand products like InP. As the demand for AI, data centers, and satellite technologies grows, AXT remains poised to capitalize on emerging opportunities in the semiconductor industry, with an optimistic outlook for medium- to long-term growth.

Panasonic Reports Increased Profits in Q3 2024, Driven by Storage Battery Demand and AI Growth

Panasonic

Japanese Battery Maker Sees Strong Performance in Automotive and Storage Battery Segments Amid Growing AI Demand

Panasonic, a leading Japanese battery producer, reported a notable increase in profits for the third fiscal quarter ending December 31, 2024. The company posted a profit of ¥132.2 billion ($862 million), marking a 15% rise compared to the same period last year. This growth was primarily driven by stronger sales of its storage battery systems, especially to data centers, fueled by the rising adoption of generative artificial intelligence (AI) technologies.

Growth in Storage Battery Sales and AI Demand

Panasonic’s strong performance in the storage battery segment reflects the growing demand for energy storage solutions, particularly for data centers. The company did not disclose specific sales volumes but highlighted that AI's rapid growth has significantly contributed to increased sales of its storage battery systems. This aligns with global trends, where AI's demands for high-performance computing infrastructure are pushing data centers to invest in more efficient energy solutions.

In response to the strong growth in the storage battery sector, Panasonic has revised its full-year outlook. The company raised its profit forecast for its battery segment by ¥15 billion, now projecting ¥124 billion for the fiscal year ending March 31, 2025. Panasonic expects the demand for storage batteries driven by AI technologies to continue, further enhancing its financial outlook.

Automotive Battery Sales and US Production Facilities

Panasonic's automotive battery business also saw a significant boost, with profits increasing by ¥2.6 billion compared to the previous year. This growth was attributed to higher battery shipments from its Nevada plant in the United States, where improved productivity has helped meet the rising demand for batteries in electric vehicles (EVs). The company’s investments in new battery production facilities in Kansas and Japan’s Wakayama prefecture helped offset initial investment costs.

Despite the potential impact of recent US tariff hikes on imports from Canada and Mexico, Panasonic anticipates minimal disruption to its operations. The company emphasized that its major battery production bases, including those in Kansas, are located within the US, which should shield it from significant negative effects from these tariffs.

Confidence in the Global EV Market

Looking ahead, Panasonic remains confident in the global EV market's growth, despite potential slowdowns in certain regions. The company believes that the overall expansion of the electric vehicle market will continue, regardless of fluctuations in growth rates. Panasonic's strategy of investing in battery production only in response to confirmed client demand ensures that the company will likely achieve a solid return on its investments, positioning it well for future growth.

In conclusion, Panasonic’s impressive performance in Q3 2024 underscores its strong position in the battery industry. With a robust outlook for storage batteries driven by AI and sustained growth in its automotive battery sector, Panasonic is poised for continued success.

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

TSMC

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

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

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

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

Taiwan's Semiconductor Boom Fuels AI and Tech Growth

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

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

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

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

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

54% of the World's Copper Mines Face 'Drought Shock'

Anglo American Copper Mining

More than half of the world’s copper mines are exposed to 'drought risk'. Other major metal raw materials such as iron ore, lithium, and cobalt are also facing potential supply disruptions due to abnormal weather conditions.

Metalnomist stated in a report published on the 24th, “Climate anomalies caused by global warming will adversely affect the supply and demand of international raw materials.” The center cited data from the global consulting firm PricewaterhouseCoopers (PwC), predicting that by 2050, 54% of the world's copper mines and 74% of lithium and cobalt mines will experience reduced production due to drought. Water is essential for crushing mineral ores, separating impurities, and cleaning equipment. McKinsey highlighted that “copper, gold, iron ore, and zinc are particularly vulnerable to drought, as 30-50% of these mines are located in areas with insufficient water resources.”

Chile, which produced over 30% of the world's copper in 2020, is already suffering from severe drought. Chilean state-owned mining company Codelco produced only 1,325,000 tons of copper last year, the lowest in 25 years, due to water shortages and other impacts.

15 Years of Water Shortage in the World’s Largest Copper Reserve: "If Mining Halts, Prices Could Quadruple"

Metalnomist warned on the 24th, “Mining items heavily dependent on production from specific countries are at risk of global supply disruptions due to abnormal weather conditions.”

According to Metalnomist, 47% of the world's copper reserves are concentrated in three countries : Chile, Peru, and the Congo. 74% of iron ore is concentrated in China, Australia, and Brazil, while 80.8% of bauxite is concentrated in Guinea, China, and Brazil. Copper demand has recently surged due to the AI boom, raising concerns that any supply disruption could significantly impact the industry. Global infrastructure asset manager Macquarie Group predicts that the annual copper demand could increase by 2 million tons by 2030 due to the surge in AI data centers. Copper is crucial for the construction of both data centers and power grids.

Northern Antofagasta, Chile's largest copper and lithium deposit, is a prime example of a region unable to increase production due to water shortages. Reuters recently reported that local mining company Antofagasta PLC has been struggling to secure water supply as reservoirs have dried up due to a 15-year-long drought. In the first quarter of this year, Antofagasta PLC’s copper production decreased by 11% compared to the same period last year.

Limited water resources are also causing conflicts with local communities. Antofagasta PLC and Australian mining company BHP were sued by Chile’s National Defense Commission (CDE) in 2022 for environmental pollution. The CDE claimed that mining companies extracted water volumes exceeding regulations, causing severe damage to the local ecosystem and indigenous communities.

Seawater desalination plants are being considered as a solution to these issues. However, the high investment costs and long construction periods limit their ability to solve water problems immediately.

Due to structural constraints on copper supply, it is predicted that copper prices could skyrocket in the coming years. Goldman Sachs projected that the average copper price next year would be $15,000 per ton. Pierre Andurand, founder of hedge fund Andurand Capital, analyzed that the global copper supply shortage could drive prices up to $40,000 per ton by 2028. Copper traded at a record high of $10,857 per ton on the London Metal Exchange (LME) on the 21st of last month, before falling to $9,563 on the 21st of this month.

The increasing demand for electricity for cooling due to heatwaves is also expected to raise the demand for fossil fuels such as coal and natural gas. Metalnomist noted, “Europe is in a situation where it is inevitable to expand thermal power generation to meet the increasing electricity demand in summer,” and added, “In Asian countries such as Thailand, India, and Bangladesh, the demand for natural gas for power generation has increased.”

HyProMag Secures Magnet Scrap to Power US Rare Earth Recycling

HyProMag USA

HyProMag secures magnet scrap to underpin a Texas recycling and manufacturing hub. By locking supply with ILS, HyProMag secures magnet scrap from HDDs and other streams. As a result, HyProMag secures magnet scrap that strengthens US NdFeB circularity and reduces import dependence.

Texas hub targets HDDs and high-growth data centers

HyProMag will build a rare earth magnet recycling and manufacturing facility in Dallas–Fort Worth. The project targets HDD recycling as large data centers expand. ILS will stage NdFeB feedstock at Williston and Reno. The sites will collect HDD magnets and other eligible materials.

Capacity and feedstock broaden beyond HDD magnets

The DFW hub is designed for 750 t/yr of recycled sintered NdFeB magnets. It also plans 807 t/yr of NdFeB co-products over a 40-year life. HyProMag has already processed rotors, wind turbine magnets, speaker assemblies, and MRI systems. Therefore, diversified feed unlocks steadier plant utilization and product mix.

HyProMag’s agreement with ILS improves logistics and inventory control. The arrangement secures storage and pre-processing near feed sources. Meanwhile, US siting supports shorter lead times for domestic buyers. This could enhance supply chain resilience for EVs, electronics, and industrial motors.

Downstream customers seek traceable, low-carbon magnet supply. Recycled NdFeB can cut primary mining intensity. In turn, reliable scrap flows help stabilize pricing and delivery. The initiative aligns with growing US policies backing critical material recovery.

The Metalnomist Commentary

This move elevates US magnet circularity at a pivotal time for data-center growth. Watch for offtake deals with motor and storage OEMs; they will determine scale-up pace and pricing power.

Nuclear Renaissance: Surge in Reactor Constructions to Boost Metal Demand

Nuclear

As global nuclear energy capacity is projected to hit record highs by 2025, the demand for specific nonferrous metals critical for reactor components is set to soar.

Expanding Global Nuclear Capacity

According to the International Energy Agency (IEA) based in Paris, there are currently 63 nuclear reactors under construction worldwide, totaling over 70GW of capacity. This level of development, one of the highest since 1990, heralds a new era for nuclear energy, supported by the extension of lifetimes for over 60 reactors globally in the past five years.

Metals Critical to Nuclear Technology

The increasing number of nuclear reactors, particularly those based on recent Chinese and Russian designs, is driving demand for metals such as zirconium alloy and hafnium. Zirconium alloy, known for its low neutron absorption rate and resistance to heat and corrosion, is essential for nuclear fuel rod cladding. Conversely, hafnium, which absorbs neutrons at a high rate, is pivotal in control rods that regulate the nuclear fission process.

Future Trends in Metal Demand

With the nuclear sector's expansion, the need for these metals is expected to rise sharply. The IEA also notes significant upcoming demand from sectors like data centers, driven by digitalization and AI advancements, although current electricity use by data centers is relatively modest compared to sectors like electric vehicles. Hafnium demand in the nuclear industry is estimated to grow by 4% annually, with additional increases expected in aerospace and non-aerospace superalloys.

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

SK On

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

Partnership scope, localization, and capacity

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

Market impact and midstream implications

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

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

The Metalnomist Commentary

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

Rivian Second-Life Battery Storage Project Links EV Packs to Grid Reliability

Rivian, Redwood

Rivian second-life battery storage is moving into commercial use after the US electric-vehicle maker agreed to deploy repurposed battery packs through Redwood Materials at its Normal manufacturing plant in Illinois. The project will use more than 100 used Rivian battery packs to provide 10 MWh of dispatchable battery energy storage.

The Rivian second-life battery storage project gives retired EV packs a second use before recycling. Redwood Materials will integrate the packs into a Redwood Energy system for on-site use at Rivian’s manufacturing facility.

Rivian second-life battery storage also reflects a wider shift in the battery value chain. Automakers and recyclers are looking for ways to extract more value from battery packs before recovering lithium, nickel, cobalt, copper, aluminium and other materials.

Redwood Turns Used EV Packs Into Stationary Storage

Redwood will receive EV battery packs from Rivian and convert them into a battery energy storage system for the Normal plant. The system will help reduce energy costs and support local grid reliability.

Second-life batteries are useful because EV packs can still retain meaningful capacity after vehicle use. They may no longer meet automotive performance requirements, but they can still serve stationary storage applications.

This creates a bridge between mobility and grid infrastructure. A battery pack can first support vehicle electrification, then provide stationary power, and later enter recycling for critical material recovery.

Redwood receives more than 20 GWh/yr of batteries, giving it a large feedstock base for both reuse and recycling. The company said it can deploy BESS projects in as little as six months, which matters as power demand rises quickly.

Data Center Power Demand Raises Storage Value

Rivian has attracted investors such as Google, which are seeking faster access to power solutions for artificial intelligence data center growth. This connection shows why second-life batteries are becoming more strategically relevant.

AI data centers need reliable, flexible and rapidly deployable power. Battery energy storage systems can help manage peak demand, improve resilience and reduce pressure on grids facing new large-load connections.

Repurposed EV batteries could become a lower-cost option where speed matters more than maximum energy density. They may also reduce waste and delay the need for immediate material recycling.

For the metals supply chain, this creates a more circular model. Battery materials stay in productive use longer, while recyclers build stronger long-term access to end-of-life packs and future recovered metals.

The Metalnomist Commentary

Rivian and Redwood are showing how EV batteries can become grid assets before they become recycling feedstock. The strategic value lies in extending battery life, lowering storage costs and securing future material recovery in one integrated loop.

Ford BESS market entry accelerates after $19.5bn Ford EV write-down

Ford BESS

Ford BESS market entry is now central to Ford Motor’s updated electrification strategy. The automaker launched a battery energy storage systems unit as it prepares a Ford EV write-down totaling $19.5bn. As a result, Ford is repositioning capital toward grid infrastructure and data center demand.

Ford said weak demand and high costs pushed it to shelve plans for large EVs. However, the company still targets a more electrified fleet mix by 2030. Therefore, Ford BESS market entry signals a pivot toward returns that look steadier than passenger EV margins.

Ford battery energy storage systems business targets data centers and grids

Ford battery energy storage systems business will lean on lithium-iron-phosphate technology. Ford will also use its wholly owned plants in Kentucky and Michigan. Meanwhile, the company aims to serve energy infrastructure upgrades and expanding data center loads.

Ford plans to begin shipping BESS products in 2027. The company expects annual capacity to reach 20GWh. As a result, Ford battery energy storage systems business could become a meaningful industrial demand driver for LFP inputs and power electronics.

EV strategy resets around hybrids and EREVs

Ford widened its EV definition to include hybrids, EREVs, and BEVs. An EREV uses a gasoline engine to recharge the battery, not drive the wheels. Therefore, EREVs can extend range without frequent plug-in charging.

Ford expects electrified vehicles to represent about 50% of global production by 2030. That compares with roughly 17% today. Meanwhile, Ford EV write-down reflects how quickly automakers must reassess platform bets when demand softens.

Ford also ended production of the current-generation F-150 Lightning. The company now plans to adopt EREV architecture for the next generation. As a result, Ford aligns product planning with consumer range expectations and cost discipline.

The Metalnomist Commentary

This shift ties automotive manufacturing closer to stationary power markets. However, BESS success will depend on execution, sourcing, and project-cycle discipline. Therefore, Ford’s move could reshape LFP supply competition with established storage players.