Factorial Solid-State Battery Cells Enable Extended Drone Range for Avidrone

Factorial Energy

Factorial solid-state battery cells achieved a milestone deployment as the US battery technology startup shipped its first FEST® (Factorial Electrolyte System Technology) lithium-metal battery cells to Canada's Avidrone Aerospace. The Factorial solid-state battery cells deliver up to 50% higher energy density compared to conventional lithium-ion batteries, enabling extended range capabilities for cargo drones in defense, commercial, and emergency response applications.

Revolutionary Energy Density Transforms Drone Performance

Factorial solid-state battery cells provide up to 50% greater energy density than conventional lithium-ion batteries, unlocking longer flight times, greater payload capacity, and expanded mission range. Initial modeling by Avidrone suggests that FEST® technology could double the range of its aircraft for a given payload, a transformational upgrade for drone-based delivery, surveillance, and emergency response. The proprietary FEST technology utilizes solid-state lithium-metal chemistry optimized for high-power, lightweight applications essential for next-generation unmanned aerial vehicles.

Meanwhile, Avidrone will integrate Factorial's solid-state cells into its high-endurance cargo drone platform for demonstration flights focused on evaluating energy efficiency, power discharge, payload capacity, and range under real-world operating conditions, including high altitudes, variable temperatures, and sustained vibrations. The testing program validates performance under operational stresses typical in tactical and industrial drone missions, providing critical data for commercial deployment.

Strategic Market Entry Addresses Defense Supply Chain Security

However, the partnership represents more than technological advancement, addressing growing demand for domestically sourced battery solutions in defense and aerospace sectors. "This delivery is a major step forward in bringing our battery platform to the skies," said Siyu Huang, CEO of Factorial. "Drones are not just an emerging market – they're a strategic priority for national defense, critical logistics, and infrastructure resilience". The US-based manufacturing platform supports defense requirements for secure, American-made energy storage solutions.

Therefore, Avidrone develops and manufactures unmanned rotorcraft which can lift payloads in excess of 50lbs over ranges of 50 miles and autopilot control systems for government, defense, and commercial applications. "In unmanned systems, weight equals range – and range defines the mission," said Scott Gray, Founder and CEO of Avidrone Aerospace. "Factorial's solid-state cells give us a critical edge in endurance and payload, unlocking new capabilities for defense, logistics, and beyond".

Expanding Market Opportunities Beyond Electric Vehicles

Furthermore, while Factorial maintains its commitment to electric vehicle markets through partnerships with Stellantis, Mercedes-Benz, and other automotive manufacturers, the drone sector represents a strategically aligned growth market.

Demand for high-performance, domestically developed batteries in drones presents an opportunity to engage early customers, accelerate manufacturing maturity, and apply critical performance feedback. These capabilities transfer directly to Factorial's EV roadmap while supporting defense sector requirements.

As a result, the global unmanned aerial systems market expansion provides substantial opportunities for advanced battery technologies. Market forecasts indicate drone sector growth of $36.1 billion between 2024 and 2028, with military applications alone projected to reach $65 billion by 2032. Factorial's entry positions the company advantageously within this rapidly expanding market while demonstrating practical applications for solid-state battery technology beyond traditional automotive applications.

The Metalnomist Commentary

Factorial's entry into drone applications demonstrates how solid-state battery technology can unlock transformational performance improvements in weight-critical applications, with the potential to double aircraft range representing a quantum leap in unmanned systems capabilities. The strategic timing aligns with growing demand for domestically sourced defense technologies, positioning Factorial to capture dual-use market opportunities while advancing its core electric vehicle technology through real-world aerospace validation.

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.

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

XTC New Energy

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

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

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

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

LMFP Gains Momentum as Producers Seek Better Energy Density

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

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

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

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

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

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

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

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

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

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

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

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

The Metalnomist Commentary

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

Stryten to Expand Energy Storage Capacity to 24 GW/yr

Stryten Energy

Stryten Energy expands U.S. battery manufacturing to 24 GW/yr, strengthening grid storage and national defense readiness.

New Capacity Strengthens U.S. Energy Independence

Stryten Energy will expand its domestic battery manufacturing to 24 GW/yr, reinforcing U.S. energy resilience for critical sectors. The company is adding 10 GW/yr of new energy storage production, bringing total capacity across multiple states. These include existing facilities in Pennsylvania, New York, Indiana, Missouri, Wisconsin, and a new lithium battery plant in Georgia.

The move comes as the U.S. government pushes for greater localization of energy storage supply chains for national security and energy transition goals.

Applications Span Defense, Grid Storage, and Industry

Stryten batteries serve military, government, data centers, automotive, material handling, and grid storage sectors. The capacity boost ensures supply for high-priority applications, including mission-critical defense and infrastructure operations. This investment aligns with ongoing public-private energy security initiatives and increases resilience across the U.S. energy ecosystem.

The expansion is supported by the advanced manufacturing production tax credit, helping incentivize capital investments in domestic clean tech.

The Metalnomist Commentary

Stryten’s expansion confirms that U.S. battery capacity growth is no longer driven solely by EV demand. National security, grid stability, and industrial continuity now anchor the battery sector’s relevance — and future growth path.

Defu Copper Foil Facility Targets AI and New Energy Demand Growth

Defu Technology

Defu copper foil facility plans will add another major layer of Chinese capacity for high-end electronic circuit materials as artificial intelligence, communications and energy transition sectors lift demand for specialised copper products. Defu Technology will invest 3.1bn yuan to build the project in Jiujiang, Jiangxi province.

Defu copper foil facility development will be focused on high-end AI electronic circuit copper foil. The project will be built in two phases, each with 25,000 t/yr of production capacity.

Defu copper foil facility timing has not yet been disclosed. But the investment signals continued confidence in downstream copper demand linked to AI infrastructure, 5G and 6G communications, low-earth-orbit satellites and new energy applications.

The company already had 175,000 t/yr of copper foil capacity at the end of 2025. Its output rose by 50% to 139,600t last year, while sales increased by 52% to 140,900t.

AI Infrastructure Adds New Demand Layer for Copper Foil

Copper foil is becoming more strategically important as electronics, batteries and data infrastructure demand higher-performance materials. AI systems require dense electronic circuits, high-speed signal transmission and reliable thermal and electrical performance.

Defu’s new project targets that shift. High-end electronic circuit copper foil is used in printed circuit boards and advanced electronics, where quality, thickness control and surface performance can determine reliability.

AI-related demand is still emerging, but it is already becoming relevant to copper markets. Some market participants estimate global copper demand from AI-related applications could reach around 350,000t in 2026.

That demand does not come only from data-centre power cables. It also includes circuit materials, cooling systems, electrical equipment, grid connections, transformers and backup power infrastructure.

Defu is therefore positioning itself closer to higher-value copper demand. The company is not simply expanding commodity capacity; it is targeting sectors where copper foil quality and customer qualification matter.

New Energy and Electronics Support Capacity Expansion

Energy transition sectors remain a key driver for electrolytic copper foil demand. Copper foil is widely used in lithium-ion batteries, especially as current collector material for anodes.

China’s copper foil operating rates improved significantly in 2025. Average electrolytic copper foil operating rates rose to 77.1%, up by 18.8 percentage points from a year earlier.

That recovery reflects stronger downstream demand from battery, electronics and new energy markets. It also helps explain why producers such as Defu are still adding capacity despite competition across China’s materials sector.

The planned Jiujiang facility will lift Defu’s ability to serve multiple growth markets. These include AI hardware, communications equipment, satellites, batteries and other high-end electronics.

However, expansion also raises competitive pressure. As more Chinese copper foil capacity enters the market, producers will need to differentiate through product quality, customer qualification and exposure to higher-margin applications.

For copper demand, the project reinforces a broader structural point. Electrification is no longer limited to EVs and grids. AI, satellites, communications and advanced electronics are adding new copper-intensive demand channels.

The Metalnomist Commentary

Defu’s investment shows that copper demand is becoming more technology-driven and more specialised. The strongest copper foil producers will be those that can move beyond volume growth and qualify into AI, battery and high-end electronics supply chains.

China Sinopec CATL Investment Accelerates EV Battery Exchange Network Expansion

Sinopec CATL

China Sinopec CATL investment emerged as the state-controlled oil refiner became the largest cornerstone investor in the battery producer's record-breaking Hong Kong IPO. The strategic China Sinopec CATL investment supports the companies' ambitious plan to build 10,000 electric vehicle battery exchange stations nationwide, marking a significant shift for the traditional energy company toward new energy infrastructure as China's EV market continues rapid expansion.

Record IPO Success Validates Strategic Partnership Value

China Sinopec CATL investment positioned the oil refiner as the largest cornerstone investor in CATL's $4.6 billion Hong Kong IPO that became the world's largest listing in 2025. CATL shares surged over 16% in their Hong Kong trading debut on May 20th, closing at HK$306.2 compared to the IPO price of HK$263 per share. The successful market reception demonstrates strong investor confidence in the partnership strategy and China's EV infrastructure development plans.

Meanwhile, the two companies reached an initial agreement in April to build more than 500 EV battery exchange stations nationwide in 2025, with a long-term target of 10,000 stations. This ambitious infrastructure rollout leverages Sinopec's existing network of 30,000 integrated energy charging stations serving 300 million users, including approximately 10,000 EV charging and battery exchange stations already operational across China.

Strategic Project Targets Heavy Vehicle Transportation

However, Sinopec and CATL finalized a specific agreement on May 21st for the Qiji Exchange Station project focused on heavy trucks in Fujian province. The project will serve critical road freight transportation along the coastal route between the Yangtze River Delta and Pearl River Delta using CATL's latest battery exchange system technology. This heavy vehicle focus addresses a key market segment where battery exchange offers significant advantages over traditional charging methods.

Therefore, the heavy truck application demonstrates practical implementation of battery exchange technology for commercial vehicles requiring rapid turnaround times. The coastal corridor route represents one of China's most important freight transportation arteries, making successful deployment here a potential template for nationwide expansion. The project showcases how traditional energy companies can integrate new energy technologies into existing transportation infrastructure.

Traditional Energy Companies Embrace New Energy Transition

Furthermore, Sinopec's investment reflects broader trends among conventional energy companies accelerating investments in new energy markets. State-run energy firm PetroChina launched a "supercharger station" in Shanghai's Yili road area in March, demonstrating industry-wide recognition of EV infrastructure opportunities. These companies leverage existing real estate assets and customer relationships to enter growing new energy segments.

As a result, joint ventures between traditional energy companies and EV technology providers create synergistic opportunities for rapid infrastructure deployment. PetroChina, SAIC, Sinopec, and CATL established the Shanghai JieNeng Zhidui New Energy Technology joint venture in September 2022 to lease EV battery packs and develop battery exchange technology. CATL's construction of a 40 GWh annual capacity factory in Dongying, China's largest oil refining city, further strengthens these traditional energy sector connections.

The Metalnomist Commentary

Sinopec's cornerstone investment in CATL's record-breaking IPO exemplifies how China's traditional energy giants are strategically positioning themselves within the electric vehicle ecosystem, leveraging their existing infrastructure assets to capture new revenue streams in battery exchange services. The partnership's focus on heavy vehicle applications addresses a critical market need where battery exchange technology offers compelling advantages over conventional charging, potentially accelerating commercial EV adoption across China's logistics sectors.

Energy Fuels Uranium Guidance Could Be Met by Midyear as White Mesa Output Accelerates

Energy Fuels

Energy Fuels uranium guidance could be reached by the end of June as the US producer completes its current ore-processing campaign at the White Mesa Mill in Utah. The company expects uranium oxide production to reach 1.6mn lb by midyear, within its full-year guidance range of 1.5mn-2.5mn lb.

Energy Fuels uranium guidance is significant because White Mesa is currently the only fully licensed and operating conventional uranium mill in the US. That gives the company a strategic position in domestic uranium supply at a time when western governments are trying to rebuild nuclear fuel and critical mineral capacity.

Energy Fuels uranium guidance also reflects stronger mine-to-mill performance from its conventional assets. The company is processing ore from the Pinyon Plain mine in Arizona and the La Sal Complex in Utah, with output expected to average more than 265,000 lb/month of finished uranium during the current campaign.

The company’s shares rose after the operational update, lifting its New York market capitalisation to about $3.6bn. But the stock remains lower year to date, showing that investors still want proof that production strength can translate into durable cash flow and diversified critical materials growth.

White Mesa Mill Strengthens US Uranium Supply Position

White Mesa’s performance is central to Energy Fuels’ role in the US uranium market. The company expects the current processing campaign to finish by the end of June, after which it plans to rebuild ore stockpiles before resuming processing in the fourth quarter.

The timing matters because uranium supply security has become more important for nuclear power, energy security and US strategic fuel planning. Conventional uranium mills are scarce in the US, so steady White Mesa operation gives Energy Fuels a domestic processing advantage that many developers do not have.

Energy Fuels also expects mining performance to improve in the second half of the year. Ore grades and contained uranium are projected to rise, while first-half contained U3O8 production in ore is expected at 750,000-850,000 lb.

The company expects White Mesa ore processing costs of $9-12/lb, near historic lows. Lower processing costs could strengthen margins if uranium prices remain supportive and mine output continues to improve.

This cost performance is especially important because the US uranium sector is still rebuilding after years of underinvestment. Higher grades, reliable ore feed and low processing costs can separate operating producers from companies that only hold development-stage resources.

Energy Fuels said its cost of sales should continue to decline in 2026. If that trend holds, the company could strengthen its position as the leading conventional US uranium producer while maintaining operational flexibility for later processing campaigns.

The midyear guidance achievement would not necessarily mean full-year production stops there. Instead, it would give the company more optionality for the second half, depending on ore availability, mine performance, market conditions and inventory strategy.

Rare Earth Upgrades Add Heavy Rare Earth Growth Path

Energy Fuels is also using White Mesa to build a rare earth separation platform alongside uranium. The mill processes natural monazite sand sourced globally and began commercial separation of rare earth elements two years ago, starting with neodymium-praseodymium.

The company has since added capability for heavy rare earths, including samarium, europium, gadolinium, terbium and dysprosium. These materials are important for permanent magnets, defence systems, electronics, high-performance motors and clean-energy technologies.

Energy Fuels plans to begin further modifications to its existing Phase 1 rare earth circuits in July. The upgrades are designed to allow commercial production of heavy rare earths in addition to existing commercial quantities of NdPr.

This is strategically important because heavy rare earth supply remains highly concentrated. Dysprosium and terbium are especially critical for high-performance magnets used in electric vehicles, wind turbines, robotics and defence applications.

The planned modifications will also add a circuit to process uranium-bearing mixed rare earth carbonates from global mines, including material from ionic adsorption clay sources. Because these mixed rare earth carbonates can feed directly into solvent extraction separation, the new circuit could allow White Mesa to process uranium and separated rare earths simultaneously.

That dual-processing model is important. It could turn White Mesa from a uranium mill with rare earth exposure into a more integrated critical minerals facility. The ability to process multiple feedstocks could improve utilisation, diversify revenue and strengthen domestic supply-chain resilience.

Energy Fuels expects the modifications to become operational in late 2027 to early 2028. The company is also planning a Phase 2 expansion that could raise total rare earth capacity at White Mesa to nearly 6,300 t/yr.

Permitting for both the circuit modifications and Phase 2 expansion is proceeding on schedule, according to the company. If delivered, White Mesa could become one of the most important US platforms linking uranium recovery, monazite processing, NdPr separation and heavy rare earth production.

The broader implication is that Energy Fuels is positioning itself across two strategic supply chains at once. Uranium supports nuclear energy security, while rare earth separation supports magnets, defence, electrification and advanced manufacturing.

The Metalnomist Commentary

Energy Fuels’ update shows why existing processing infrastructure is becoming strategically valuable in the US. White Mesa is not only a uranium asset; it could become a rare domestic bridge between nuclear fuel security and heavy rare earth separation.

Global Energy Storage Market Expands as China Drives Record Growth

China Energy Storage

Global energy storage market growth accelerated in 2025, with China remaining the main force behind new capacity additions and technology diversification. The country’s cumulative operating power storage capacity reached 213.3GW by the end of the year, accounting for 43% of the global total.

China energy storage growth was especially strong in new-type energy storage, which includes lithium-ion batteries and vanadium redox flow batteries but excludes pumped hydro. China’s new-type storage capacity rose to 144.7GW, representing more than two-thirds of its total storage fleet and 51.9% of global new-type installations.

The global energy storage market also became more diversified. Pumped hydro’s share of global operating capacity fell below 50% for the first time, while new-type storage expanded rapidly to 278.7GW/687.5GWh.

China Leads Storage Deployment as VRFB Projects Gain Share

China’s energy storage sector remained dominated by lithium-ion batteries in 2025. However, lithium-ion’s share slipped slightly as several large long-duration storage projects using all-vanadium redox flow battery technology came online.

This shift matters because grid storage demand is no longer only about short-duration battery systems. Longer-duration applications are gaining relevance as renewable penetration rises and power systems require more flexibility, peak shifting and grid stability.

Independent energy storage became China’s main application model, accounting for around 60% of total installed capacity. This shows that storage is increasingly being deployed as standalone grid infrastructure, not only as an accessory to solar or wind projects.

Chinese manufacturers also strengthened their global position. Sungrow, Tesla, CRRC Zhuzhou Institute, BYD and Envision Energy ranked as the world’s top five energy storage system shipment providers in 2025, highlighting the growing concentration of supply among large integrated players.

Lithium Demand Rises as Storage Becomes a Core Battery Market

The global energy storage market reached 496.2GW of cumulative operating power storage capacity by the end of 2025, up 33.3% from the previous year. New installations hit a record 123.9GW, led by China, the US and Europe, while the Middle East and Latin America gained momentum.

The US added 18.4GW/48.3GWh of new-type storage capacity in 2025, while Europe added 15.4GW/32.1GWh. These figures show that storage growth is becoming global, even though China remains the dominant scale market.

Energy storage is also reshaping battery materials demand. The sector accounted for 25% of global lithium demand in 2025, up sharply from 5% in 2020, making storage one of the most important demand drivers for lithium carbonate, lithium iron phosphate materials and battery supply chains.

Stronger storage demand helped push battery-grade lithium carbonate prices to 158,000-168,000 yuan/t at the end of March, up 120% from a year earlier. This confirms that stationary storage has moved from a secondary battery market into a major force in lithium pricing.

The Metalnomist Commentary

China’s dominance in energy storage shows how quickly battery supply chains can scale when policy, manufacturing and grid demand align. The next phase will test whether lithium, vanadium and power equipment supply can keep pace with global storage deployment.

China-Russia Energy Cooperation Deepens as Beijing and Moscow Broaden Industrial Ties

China-Russia

China-Russia energy cooperation is set to deepen after both countries agreed to expand collaboration across energy, chemicals, metallurgy, agriculture and manufacturing. The pledge followed Russian president Vladimir Putin’s state visit to Beijing on 19-20 May.

China-Russia energy cooperation remains the core of the bilateral relationship. Oil, gas, coal, nuclear power and renewables all featured in the joint statement, showing that energy security remains central to both countries’ strategic alignment.

China-Russia energy cooperation also has wider industrial meaning. Stable Russian energy flows support China’s manufacturing base, while Russian suppliers gain a critical long-term market as western sanctions continue to reshape trade.

The two countries also agreed to extend their treaty of good-neighbourliness and friendly co-operation. That move reinforces a long-term political framework for resource trade, industrial projects and supply-chain coordination.

Energy and Nuclear Ties Anchor Strategic Partnership

Energy remains the strongest pillar of China-Russia trade. Russia is China’s largest supplier of pipeline gas, delivering through a 38bn m³/yr pipeline and accounting for about 45% of China’s pipeline gas imports.

However, the joint statement did not confirm progress on a second major gas pipeline. That omission suggests that both sides still have commercial or political issues to resolve before expanding pipeline capacity further.

Russian crude also remains important to China. China imported an average of 2.53mn b/d of Russian crude in January-April, up from 2.01mn b/d a year earlier.

The buyer structure is shifting. State-owned Chinese refiners have reduced some purchases since tighter US sanctions began last October, while independent refiners remain more focused on margins and cargo economics.

Nuclear energy is another strategic link. China and Russia will continue work on the Tianwan and Xudabao nuclear projects, which are expected to come online around 2026-28.

The two countries also plan to cooperate on advanced nuclear technologies, including fast reactors, fusion power and closed fuel cycle systems. This gives the relationship a long-term technology dimension beyond fossil fuel trade.

Renewable energy also appeared in the statement, including green power certificates. That language shows both sides want energy cooperation to cover low-carbon systems, even while oil, gas and coal remain central.

Agriculture, Metallurgy and Manufacturing Deepen Trade Flows

Agriculture is becoming a larger part of the partnership. China and Russia agreed to expand bilateral trade in meat, seafood, grains, oilseeds, vegetable oils and feed protein meals.

China already allows Russian beef and by-products that meet registration and disease-free zone requirements. It also lifted restrictions on Russian pork exports after a long ban linked to African swine fever.

Russia has become a key supplier of sunflower and rapeseed oils to China. It is also China’s largest source of non-GM soybean imports, making food security another strategic layer in the relationship.

Metallurgy and chemicals also remain important. China’s non-ferrous sector imports selected Russian raw materials, including antimony concentrate.

This matters because antimony is a critical material for flame retardants, lead alloys, ammunition, batteries and defence-related applications. Russian supply can help China manage raw material availability in niche but strategic metals.

The two countries also plan to deepen cooperation in automotive manufacturing, shipbuilding and civil aviation. Chinese automakers have already invested in Russian production, while Russia remains an important market for Chinese vehicles, including electric vehicles.

The wider industrial direction is clear. China and Russia are not only increasing commodity trade. They are building a broader economic partnership that connects energy, raw materials, food, manufacturing and strategic technologies.

The Metalnomist Commentary

China and Russia are building a resource-and-industry bloc designed to withstand western pressure. The metals market should watch the metallurgy and critical minerals angle closely, because raw material flows such as antimony can become strategically important even when volumes are small.

European Stainless Tube Trade Shifts as Policy, Imports and Data Centres Reshape Demand

European Stainless Steel

European stainless tube trade is entering a more selective phase as producers defend margins through higher-value applications, tighter specifications and regional supply advantages. The market remains stable, but it is no longer driven mainly by volume growth.

European stainless tube trade is being reshaped by three forces at once. Imports continue to pressure commodity and process pipe segments. Policy measures such as CBAM and revised safeguards are changing cost structures. At the same time, automotive exhaust demand is declining as electrification advances.

Speakers at SMR’s Stainless Steel Tube and Pipe Market Insights Day in Dusseldorf said Europe is behaving like a mature and cyclical market. Asia remains the main centre of stainless steel consumption and commodity production, while Europe depends more on technical applications, certification and regulatory positioning.

European stainless tube trade is therefore moving away from simple price competition. Producers are increasingly competing on quality, traceability, sustainability, lead times and the ability to serve complex end uses.

Italy-based Marcegaglia Specialties said traditional sectors such as construction, energy, oil and gas, automotive, water and food processing remain the backbone of demand. However, the next stage of competition will depend more on sustainability and product complexity than on basic market expansion.

CBAM and Import Pressure Are Regionalising Stainless Tube Supply

European stainless tube trade is becoming more regional because policy and geopolitics are increasing the value of local supply. CBAM, revised safeguard measures and wider instability are pushing buyers to look more carefully at origin, emissions, delivery risk and compliance.

European producers already operate inside the EU regulatory framework. This gives them an advantage in some higher-value applications where customers require reliable documentation, stable quality and shorter supply chains.

But the policy environment is not simple. Some industry speakers warned that CBAM could become more protectionist than environmental if it raises costs for European downstream processors without fully addressing import competition.

This concern is especially relevant for stainless tube makers. They buy input material under EU cost structures, but still compete with imported finished or semi-finished products in certain market segments.

OSTP chief executive Andrea Gatti argued that CBAM and revised tariff-rate quotas are creating a difficult environment for downstream processors. He said the measures can raise raw material costs for European producers while leaving import pressure unresolved in some product categories.

One concern is the way carbon steel and stainless steel products remain grouped in some quota categories. This can obscure the real level of import pressure in specific stainless segments.

The issue is most visible in process pipe. Overall import penetration in European welded stainless pipe may look moderate, but import pressure is much stronger in process pipe than in automotive or structural applications.

Some imported process pipe is arriving at prices close to European producers’ raw material costs. This creates a serious margin problem for EU producers, especially when they must meet higher regulatory, labour and energy costs.

Asian imports are particularly competitive in pipe and fittings made to ASTM specifications. Around 15-20% of the European market still requires ASTM-based products, often because older engineering standards and end-user specifications remain in place.

This creates an opening for Asian suppliers. Many have long experience producing ASTM-based products and can compete aggressively in segments where buyers focus mainly on price and basic compliance.

Asian producers are also becoming more capable of supplying European-standard material. However, some barriers remain. Hot-rolled feedstock availability, customer qualification and more complex technical requirements still protect parts of the European market.

CBAM adds another layer of uncertainty. Importers and buyers still lack full visibility on the actual carbon values that overseas suppliers will declare. Some emissions disclosures remain incomplete or unreliable.

This creates pricing uncertainty. If importers use default emissions values, CBAM costs may rise sharply. If suppliers provide certified actual data, costs may be lower. But the market does not yet know which overseas suppliers can verify emissions credibly.

For European producers, this uncertainty is both an opportunity and a risk. It may make some imports less attractive, but it also complicates raw material sourcing and customer negotiations.

The broader result is regionalisation. Buyers are increasingly weighing whether cheaper imported material is worth the compliance, delivery and emissions risk. European producers can benefit if they turn regulation into a trusted supply advantage.

However, they cannot rely on regulation alone. Imports will continue to pressure standard grades and process pipe where price remains decisive. Europe’s defence must therefore come from technical capability, service and qualification depth.

Automotive Decline and Data Centres Redefine Growth Applications

European stainless tube producers also face structural demand change in automotive applications. Exhaust-related stainless tube demand is declining as electric vehicle adoption reduces the long-term need for combustion engine systems.

German tubemaker Schoeller Werk said about 40% of its business is still linked to automotive. Around 95% of that automotive exposure is tied to combustion engine applications.

This creates a clear transition risk. Combustion engine exhaust systems have historically used stainless tube because of heat resistance, corrosion performance and durability. Electric vehicles remove much of that demand.

Industry speakers described this shift as irreversible, even if the speed varies by region. Combustion vehicles may remain relevant for some years, but the structural direction is clear.

Marcegaglia also described the shift away from combustion-engine vehicles as a trend that stainless tube producers must manage. The market cannot assume that traditional automotive exhaust demand will return.

This forces producers to find new growth areas. Data centres emerged as one of the clearest near-term opportunities during the Dusseldorf discussions.

Data centre stainless demand is growing because cooling systems are becoming more important. AI workloads, higher server density and larger hyperscale facilities require more advanced thermal management.

Stainless tubes can be used in cooling circuits, heat exchangers and wider water infrastructure. These applications often require corrosion resistance, reliability and long service life.

Gatti said the strongest opportunity may not only sit in outer water infrastructure. Inner cooling circuits also present growth potential as specifications increasingly exclude carbon steel and favour copper or stainless steel.

Copper’s high price is helping stainless steel compete. In some data centre applications, stainless can win substitution from copper on cost grounds while still meeting performance requirements.

This creates a valuable opening for European producers. Data centres are not only a volume market. They require quality, traceability, reliability and tight specifications, which fit Europe’s competitive strengths.

However, Asian competition remains a threat. If data centre projects are specified to ASTM standards, Asian suppliers may still compete strongly. This means European producers need early involvement in specifications and project qualification.

Other higher-value markets may also support growth. Specialist energy systems, premium process pipe, food processing, water treatment and industrial heat exchangers all require more complex tube products.

The key difference is that these markets reward performance rather than only price. European producers are better positioned when customers value certification, documentation, short lead times, sustainability and technical support.

This is why Europe’s competitive advantage increasingly lies in complexity. Producers cannot win every commodity segment against lower-cost imports. But they can defend and grow in applications where failure risk, qualification standards and technical requirements matter.

The next decade will likely reward producers that invest in advanced materials and difficult applications. This includes higher corrosion resistance, special dimensions, better surface quality, stronger traceability and lower-carbon documentation.

Policy could help if it is implemented carefully. CBAM and safeguards may support regional supply, but they must avoid damaging downstream processors through higher input costs or poorly designed quota structures.

The real test for Europe is execution. Producers must turn sustainability and regulation into commercial value, not only compliance costs. That means proving lower carbon intensity, shorter logistics chains and stronger product reliability.

European stainless tube trade will therefore become more segmented. Commodity and ASTM process pipe will remain import-sensitive. Automotive exhaust demand will decline. Data centres and complex industrial applications will become more important.

For producers, the strategy is clear. Europe must compete where technical standards, certification, sustainability and customer proximity matter most.

The Metalnomist Commentary

European stainless tube producers are being pushed out of low-margin commodity competition and into higher-specification markets. The winners will be companies that convert regulation, traceability and technical complexity into pricing power, especially in data centres, energy systems and premium process pipe.

AKFA Aluminum Extrusions Plant Marks Uzbek Group’s First US Manufacturing Move

AKFA Aluminum

AKFA aluminum extrusions plant construction has started in Bowling Green, Kentucky, giving Uzbekistan-based AKFA Aluminum Solutions its first manufacturing facility in the US. The project will add extrusion, anodizing and finishing capability to the company’s international aluminium platform.

AKFA aluminum extrusions plant plans are strategically important because the US market is seeing renewed interest in domestic aluminium processing capacity. Extrusions serve construction, transportation, renewable energy, industrial systems and consumer applications.

AKFA aluminum extrusions plant operations will use recycled aluminum billets as feedstock. That gives the project a circular supply-chain angle and supports demand for lower-carbon secondary aluminium inputs.

The company has not disclosed production capacity or a construction timeline. The plant was first announced in December, and site work has now begun.

Kentucky Site Adds Extrusion and Finishing Capability

The Bowling Green facility will include anodizing and finishing capabilities. This is important because downstream customers often need more than basic extruded profiles.

Anodizing improves corrosion resistance, surface durability and appearance. Finishing capability can also help AKFA serve higher-value customers that need ready-to-use aluminium components rather than unfinished material.

The US extrusion market depends on reliable billet supply, press capacity, surface treatment and customer qualification. A plant that combines extrusion with finishing can capture more value inside the processing chain.

Recycled aluminium billets will be a key feedstock. This supports lower-carbon manufacturing and aligns with growing customer demand for recycled-content aluminium in construction, transport and renewable energy applications.

The Kentucky location also gives AKFA access to US industrial customers and logistics networks. Bowling Green is already tied to manufacturing and transportation supply chains, which could help the company build regional customer relationships.

AKFA Expands From Central Asia Into US Downstream Aluminium

AKFA Aluminum Solutions is part of AKFA Group, which operates 20 facilities across Central Asia. The group produces about 100,000 t/yr of aluminium products used in construction, transportation and renewable energy.

The US plant represents a major geographic expansion. Instead of supplying only from its established Central Asian base, AKFA is placing production closer to one of the world’s largest aluminium-consuming markets.

This matters because aluminium extrusion demand is becoming more regional. Customers want shorter lead times, lower logistics risk and greater certainty around tariffs, origin and supply reliability.

The project also fits the wider trend of aluminium manufacturers investing closer to end users. US reshoring, infrastructure demand, energy transition projects and construction-related applications are all supporting interest in domestic aluminium processing.

For AKFA, the move could open access to customers that prefer local supply and finished components. For the US market, the plant adds another source of extrusion and finishing capacity using recycled billet feedstock.

The key questions remain scale and timing. Without disclosed capacity, the market impact is difficult to measure. But strategically, the project shows that international aluminium processors see the US as an attractive destination for downstream investment.

The Metalnomist Commentary

AKFA’s Kentucky plant shows that the US aluminium opportunity is extending beyond primary smelting into extrusions, finishing and recycled billet-based manufacturing. The project’s real value will depend on whether AKFA can build qualified customer channels in construction, transport and renewable energy markets.

Samsung SDI BESS Supply Deal Strengthens US Energy Storage Battery Chain

Samsung SDI BESS

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

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

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

Indiana Production Links Battery Storage to Domestic Manufacturing

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

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

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

LFP Expansion Signals a Wider Shift in US BESS Demand

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

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

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

The Metalnomist Commentary

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

Largo and Stryten Launch Storion Energy to Boost U.S. Vanadium Redox Flow Battery Market

Largo

Largo and Stryten Energy have officially formed Storion Energy, a joint venture designed to produce vanadium electrolyte for vanadium redox flow batteries (VRFBs). The collaboration aims to strengthen the U.S. long-duration energy storage (LDES) sector by reducing reliance on imported vanadium-based energy solutions.

Storion will combine Stryten’s proprietary VRFB technology with vanadium pentoxide (V₂O₅) from Largo’s Maracás Menchen Mine in Brazil, providing a reliable domestic supply of vanadium electrolyte for U.S. battery manufacturers. The venture seeks to expand VRFB adoption as an alternative to lithium-ion batteries, particularly in applications requiring extended-duration energy storage.

Reducing Costs to Compete with Lithium-Ion Batteries

One of the major challenges for VRFB deployment in Western markets is the high cost of vanadium electrolyte, which accounts for 40-50% of a VRFB system’s total cost, depending on market vanadium prices.

Storion plans to supply vanadium electrolyte at just $0.02/kWh, well below the U.S. Department of Energy’s (DOE) target of $0.05/kWh for flow batteries that provide at least 10 hours of energy storage. This cost reduction is made possible by:

• Stryten’s advanced technology for efficient electrolyte production.

• Largo’s vanadium leasing model through Largo Physical Vanadium, which helps mitigate upfront material costs.

Strategic U.S. Manufacturing Presence

Storion Energy will operate out of Alpharetta, Georgia—where Stryten’s headquarters is located—and Wilmington, Massachusetts, home to Largo Clean Energy. This dual-location setup will enable efficient production and distribution of vanadium electrolytes, enhancing domestic energy security and accelerating VRFB commercialization.

US Turkey LFP Battery Partnership Targets 7GWh Production by 2027

Our Next Energy

US Turkey LFP battery partnership emerged as Our Next Energy (ONE) contracted Turkish manufacturer Pomega Energy Storage Technologies to produce 7GWh of lithium iron phosphate battery cells. The strategic US Turkey LFP battery collaboration targets 2GWh production in 2026 escalating to 5GWh in 2027, supporting ONE's energy storage solutions for utility, commercial, and industrial customers while bridging manufacturing capacity before domestic US production commences.

Strategic Manufacturing Timeline Bridges International and Domestic Production

US Turkey LFP battery production will focus on ONE's 314Ah LFP battery cells manufactured at Pomega's Ankara facility. The Turkish facility maintains 3GWh installed capacity and currently undergoes qualification for global export markets. This partnership provides immediate manufacturing access while ONE develops its Michigan-based grid battery production line scheduled for 2027 operations.

Meanwhile, the collaboration enables ONE to meet near-term customer demands without delayed market entry. Founder and CEO Mujeeb Ijaz emphasized the partnership's role in supporting customer commitments during the transition to US-based manufacturing capabilities. The phased approach reduces market risks while ensuring continuous supply chain operations across international and domestic facilities.

Turkish Manufacturing Hub Supports Global Battery Supply Chains

However, Pomega's Ankara facility represents Turkey's growing position in global battery manufacturing ecosystems. The facility's 3GWh capacity and export qualification process demonstrate Turkish manufacturing capabilities in advanced energy storage technologies. Turkey's strategic geographic position provides advantageous access to European, Middle Eastern, and Asian markets for battery exports.

Therefore, the partnership leverages Turkey's industrial infrastructure while supporting ONE's expansion strategy across utility-scale energy storage markets. Turkish manufacturing costs and skilled workforce availability create competitive advantages for large-scale battery production. The collaboration also strengthens US-Turkey commercial relationships in critical technology sectors driving clean energy transitions.

Market Positioning for Utility-Scale Energy Storage Growth

Furthermore, the LFP battery production targets utility, commercial, and industrial energy storage applications experiencing rapid market expansion. Lithium iron phosphate technology offers safety and cost advantages compared to alternative battery chemistries, particularly for large-scale stationary storage installations. The 314Ah cell specification aligns with industry requirements for grid-scale energy storage systems.

As a result, ONE's dual-facility strategy positions the company competitively across North American and international markets during the critical 2026-2027 period. The Turkish production capacity provides flexibility while Michigan facility development progresses, ensuring market presence during peak demand growth. This geographic diversification reduces supply chain risks while maximizing market opportunities across multiple regions.

The Metalnomist Commentary

ONE's partnership with Turkish manufacturer Pomega exemplifies how US battery companies strategically leverage international manufacturing partnerships to bridge capacity gaps before domestic production scaling, particularly important as global LFP demand accelerates faster than domestic manufacturing development. The collaboration demonstrates Turkey's emerging role as a strategic manufacturing hub for critical battery technologies, positioning the country advantageously within global energy storage supply chains serving both European and American markets.

BYD Signs World’s Largest Energy Storage Deal with Saudi Electric Power

BYD Lithium Battery

Landmark lithium battery contract supports Saudi Arabia’s 2030 renewable energy target

Chinese energy storage leader BYD has signed a landmark contract to supply 12.5GWh of energy storage systems (ESS) to Saudi Electric Power. This agreement now marks the largest single ESS contract globally by capacity, according to BYD’s announcement on 14 February.

The new deal builds on BYD’s prior delivery of 2.6GWh to Saudi Electric Power, bringing the total supply to 15.1GWh. The two companies did not disclose the contract timeline. However, BYD confirmed that the agreement will significantly support Saudi Arabia’s Vision 2030, which targets 50% renewable energy integration.

BYD scales global reach with LFP-based ESS technologies

BYD began deploying lithium iron phosphate (LFP) battery storage systems 17 years ago. Since then, it has completed over 350 energy storage projects worldwide, supplying more than 75GWh to global markets.

As of 2024, BYD's ESS and power battery installations reached 194.7GWh, up 29% year-on-year. Of that, 135.02GWh was power battery installation alone, based on data from the China Automotive Battery Innovation Alliance.

These results further establish BYD as a global ESS leader, particularly as Chinese companies accounted for 93.5% of global energy storage shipments last year. In total, global energy storage battery shipments hit 369.8GWh in 2024—a 65% year-on-year increase.

Energy storage drives Saudi diversification efforts

The partnership between BYD and Saudi Electric Power aligns with the kingdom’s strategic push toward energy diversification and grid modernization. As Saudi Arabia ramps up utility-scale solar and wind projects, the need for large-scale battery storage grows rapidly.

BYD’s advanced LFP technology offers long cycle life, thermal stability, and safety—making it ideal for the desert climate and high-demand grid applications in the region. This deal positions BYD as a critical technology supplier in Saudi Arabia’s clean energy roadmap.

SoftBank Osaka Battery Production Targets AI Data Centre Energy Demand

SoftBank

SoftBank Osaka battery production plans will add a new Japanese platform for next-generation battery cells and battery energy storage systems. The company aims to start production at its GX Factory in Osaka by March 2028.

SoftBank Osaka battery production will focus partly on zinc-halogen battery technology developed with South Korea’s COSMOS Lab. The partners aim to begin mass production during the April 2027-March 2028 fiscal year.

SoftBank Osaka battery production is strategically linked to rising electricity demand from artificial intelligence infrastructure. As AI data centres expand, operators need safer, scalable and more resilient energy storage systems to support grid stability and power management.

The GX Factory is part of SoftBank’s planned AI data centre development at Sakai in Osaka prefecture, on a site formerly owned by Sharp. The wider project also includes the AX Factory, which will focus on AI data centre operations and infrastructure hardware manufacturing.

Zinc-Halogen Technology Targets Safety and Local Supply

SoftBank is positioning zinc-halogen batteries as a safer alternative to lithium-ion systems. The company said the technology removes lithium-ion fire risk by using a halogen-based cathode material, zinc anode and water-based electrolyte.

This chemistry also supports supply-chain resilience. Zinc and halides are available in Japan, reducing exposure to imported lithium, nickel, cobalt or graphite supply chains.

That matters because energy storage is becoming more strategically important as AI data centres, renewable power and grid balancing needs grow together. Battery systems must be safe, affordable and scalable.

Zinc-halogen batteries may be especially relevant for stationary storage, where safety, durability and material availability can matter more than maximum energy density.

SoftBank’s plan shows that AI infrastructure is beginning to shape battery demand beyond electric vehicles. Data centres require large and reliable power systems, and that could create a new demand channel for non-lithium battery chemistries.

BESS Manufacturing Adds Industrial Scale Ambition

SoftBank will also partner with South Korea’s DeltaX to develop and manufacture high-energy-density battery energy storage systems. The partnership will use DeltaX’s cell-connecting system design and cell-to-pack technology.

SoftBank aims to reach 1 GWh/yr of BESS mass production by the 2028-29 fiscal year. That would give the company a meaningful platform for grid, industrial and data-centre storage customers.

The company plans to expand sales into grid-storage, industrial and residential applications. It is also considering overseas markets in the medium term.

SoftBank wants the battery business to generate more than ¥100bn in annual revenue by the 2030-31 fiscal year. That target shows the company sees batteries as an infrastructure business, not only a technology experiment.

For Japan, the project strengthens domestic battery manufacturing around AI infrastructure and energy security. It also diversifies battery chemistry development beyond the lithium-ion supply chain.

The industrial implication is clear. As AI power demand accelerates, battery storage will become a strategic layer between data centres, grids and renewable energy supply.

The Metalnomist Commentary

SoftBank’s Osaka plan shows that AI infrastructure is now pulling battery innovation in a new direction. Zinc-halogen technology may not replace lithium-ion in vehicles, but it could become strategically important for safer, locally sourced stationary storage.

Tesla LGES Michigan Battery Plant Strengthens US LFP Supply for Energy Storage

LGES, Michigan Battery Plant

Tesla LGES Michigan battery plant plans mark a major step in the buildout of US lithium iron phosphate battery capacity. Tesla and LG Energy Solution have signed a supply agreement to develop a $4.3 billion LFP battery cell facility in Lansing, Michigan.

The plant is scheduled to begin production in 2027. It will supply battery cells for Tesla’s Megapack 3 energy storage systems, which the company plans to produce at its Houston megafactory.

The Tesla LGES Michigan battery plant also reflects a wider shift in battery demand. Stationary energy storage is becoming a larger driver of cell procurement as power grids absorb more renewable energy, data center demand, and industrial electrification.

Lansing Facility Repositions Former EV Capacity Toward Grid Storage

The Lansing project carries strategic significance because the facility previously formed part of a General Motors and LGES joint venture. LGES acquired GM’s stake for $2.1 billion after GM reduced electric vehicle-related capacity and investment.

This change shows how battery assets can be redirected as market priorities shift. EV demand remains important, but utility-scale storage is becoming a stronger growth channel for LFP chemistry.

The 50 GWh per year facility gives Tesla a large domestic cell supply base for Megapack 3. It also supports Tesla’s plan to begin Megapack 3 and Megablock production in Houston in 2026.

Tesla

LFP Chemistry Gains Ground in US Energy Storage Supply Chains

LFP battery cells are becoming increasingly important for energy storage systems because they offer cost, cycle life, and safety advantages for stationary applications. For Tesla, securing LFP supply in the US reduces exposure to imported cells and supports larger energy storage deployments.

The Tesla LGES Michigan battery plant also strengthens LGES’s position in the US battery value chain. By converting a former EV-focused site into a major LFP supply point, LGES can serve a market where demand is tied to grid infrastructure rather than only vehicle sales.

Tesla’s Megapack business is already scaling. The company sold $430 million of Megapack products in 2025 to xAI, its sister company and Elon Musk’s artificial intelligence startup, highlighting the link between energy storage and rising power demand from AI infrastructure.

The Metalnomist Commentary

This agreement shows that battery supply chains are no longer being shaped only by electric vehicles. Grid storage, AI power demand, and domestic manufacturing policy are becoming equally powerful forces.

China Renewable Energy Plan Supports Metals Demand but Leaves Growth Uncertain

China, Renewable Energy Plan

China renewable energy plan for 2026-30 points to continued structural demand growth for copper, aluminium, lithium, vanadium and rare earths. However, the metals impact will depend on how far wind, solar, storage and grid investment move beyond targets that China is already close to reaching.

China renewable energy plan targets wind and solar at more than 50% of total installed power capacity by 2030 and positions them as the main source of power generation. The wording is important because wind and solar already account for around 48% of China’s installed power capacity.

China renewable energy plan therefore provides policy support but not necessarily a new demand shock. The key issue for metals producers is whether Beijing pushes deployment materially above the 50% threshold and introduces additional incentives for solar, storage and grid infrastructure.

China’s total installed power capacity reached 4,010GW by the end of May. Solar accounted for 1,260GW and wind for 660GW, with both sectors still growing at double-digit rates.

Copper and Aluminium Depend on How Far Renewables Expand

Renewable infrastructure remains a major source of metals consumption. Solar projects require aluminium for frames, mounting systems and electrical applications, while wind turbines consume aluminium, copper, speciality steels and rare earth permanent magnets.

Industry estimates put aluminium consumption at around 13,500t for every 1GW of solar capacity and up to 3,000t for 1GW of wind capacity. Further expansion could therefore create substantial incremental demand.

However, China is already close to the plan’s minimum capacity target. Wind and solar together represent about 48% of total installed capacity, leaving only a modest increase required to exceed 50%.

This has made market participants cautious. If deployment slows after the target is reached, incremental aluminium demand could be weaker than previous renewable investment cycles.

The outcome changes if actual capacity moves toward 55% or higher. Chinese policy targets are often designed with room for overachievement, meaning the final installed share could materially exceed the stated minimum.

Copper has a stronger structural demand case because renewable generation also requires transmission, substations, grid reinforcement and electrical equipment.

Copper demand from China’s wind and solar sectors is expected to reach around 1.85mn t this year, almost three times the 620,000t consumed in 2020. That growth demonstrates how renewable buildout is already reshaping Chinese copper consumption.

Storage and Charging Add Another Critical Metals Demand Layer

The plan extends beyond renewable generation. China is targeting 300GW of new energy storage capacity and 40mn electric vehicle charging units by 2030.

Storage deployment strengthens demand for lithium and other battery materials. Rapid renewable penetration increases the need to balance variable generation, making grid-scale batteries increasingly important to the power system.

Lithium consumption from energy storage could rise substantially over the next decade. However, strong demand growth does not automatically mean higher lithium prices because new mine and processing capacity may expand just as quickly.

Vanadium could also benefit if long-duration flow batteries capture part of China’s storage market. Rare earth demand may gain additional support from wind turbine generators and high-performance electric motors.

Charging infrastructure adds another copper and aluminium demand channel. Millions of additional charging points require cables, connectors, distribution equipment and grid upgrades.

The plan therefore supports a wider metals ecosystem than wind and solar installations alone. Generation, storage, charging and grid reinforcement all add material intensity to China’s energy transition.

The biggest uncertainty is execution. China has already built renewables at enormous scale, so future metals demand will depend on whether policy accelerates deployment beyond current momentum rather than merely formalising existing trends.

The Metalnomist Commentary

China’s new energy plan is supportive for metals, but the 50% wind-and-solar target alone is not the real story because the country is already close to it. The stronger demand signal will come from how aggressively Beijing expands storage, grids and renewable capacity beyond the minimum target.