Tesla Launches Shanghai Megapack Energy Storage Battery Factory

Tesla

In an exciting move towards sustainability and the acceleration of global energy transition, Tesla has officially launched its Megapack energy storage battery gigafactory in Shanghai. This new facility is a significant step in Tesla’s efforts to expand its energy storage systems globally, marking its first production unit for energy storage outside the United States.

Gigafactory’s Vision and Production Capacity

The factory is located in the Lin-gang Special Area of China’s Shanghai Pilot Free Trade Zone, with a planned production capacity of 10,000 Megapack units per year. This capacity equates to 40 GWh of energy storage. Tesla produced its first Megapack unit in February 2024, and production is expected to ramp up in the first quarter of the year. The company’s expansion of Megapack manufacturing is crucial in meeting the growing demand for energy storage systems as part of global efforts to transition to renewable energy sources.

Innovative Megapack Technology and Tesla’s Global Impact

The Megapack, which was first launched in 2019, can store up to 3,900 kWh of electricity per unit. This capacity is equivalent to the energy storage needs of 62 Model 3 electric vehicles (EVs). Designed to serve as large-scale energy storage solutions, the Megapack is ideal for battery storage power stations and can help stabilize grids reliant on renewable energy sources. Tesla’s goal is not just to create electric vehicles but to be a key player in the global energy transition, producing innovative energy storage technologies that support renewable power generation.

Tesla’s Expansion in Global Energy Storage Systems

This Shanghai-based gigafactory is Tesla's first energy storage manufacturing facility outside of the United States. Tesla’s California factory, which started production earlier, has a capacity of 40 GWh per year, producing around 200 Megapack units weekly. With the Shanghai factory now operational, Tesla aims to scale its energy storage solutions globally, facilitating the transition to sustainable energy worldwide. The company also reported a significant 113% increase in energy storage capacity in 2024, reaching 31.4 million kWh, surpassing the total capacity of the past three years combined.

Tesla’s ambition is clear. As the company looks to meet the increasing demand for energy storage solutions, it highlights the potential for Megapacks to play a critical role in energy generation and storage. As Tesla notes, just 0.1% of China’s Taklimakan Desert could power the entire nation for a year with the energy stored in these systems.

Conclusion: A Global Energy Shift on the Horizon

Tesla’s commitment to scaling energy storage production marks a pivotal moment in the push towards renewable energy. With the Shanghai gigafactory now in full production, the company is well-positioned to meet the rising global demand for energy storage batteries. As shipments of energy storage systems continue to grow, Tesla's innovations promise to be a crucial component in the energy transition, helping to reduce reliance on fossil fuels and ensuring a more sustainable future.

Huahong Rare Earth Output Rises as NdFeB Scrap Recycling Supports Magnet Demand

Huahong Rare Earth

Huahong rare earth output increased sharply in 2025 as stronger demand from new energy vehicles, industrial automation and energy-saving motors lifted China’s rare earth recycling and magnet supply chain. Zhejiang Huahong Technology produced 8,794t of rare earth oxides during the year, up 71% from 2024.

Huahong rare earth output growth was also supported by tighter rare earth supply conditions in China. Stricter government controls on mining, processing and production capacity helped lift prices and encouraged stronger output from qualified oxide and magnet producers.

Huahong rare earth output is strategically important because the company recovers rare earth oxides from neodymium-iron-boron scrap. This recycling route gives China another feedstock source for magnet production at a time when primary supply, mining quotas and scrap availability remain sensitive.

Sales of rare earth oxides rose by 57% to 9,165t in 2025, while inventories increased by 7% to 359t. The figures show that downstream demand remained strong enough to absorb most of the company’s higher oxide output.

NdFeB Scrap Recycling Gains Value Under Tighter Rare Earth Supply

Huahong operates three production bases for NdFeB scrap recycling: Ji’an Xintai, Jishui Jincheng and Jiangxi Wanhong. Together, these sites have 12,000 t/yr of rare earth oxide capacity using neodymium-iron-boron scrap as feedstock.

This recycling capacity matters because magnet scrap is becoming a strategic rare earth resource. NdFeB magnets contain neodymium, praseodymium and, in higher-performance grades, heavy rare earths such as dysprosium and terbium.

Recovering these materials from scrap can reduce dependence on mined feedstock and improve supply efficiency. It also supports China’s circular rare earth strategy, especially as demand from electric vehicles, robotics and industrial motors rises.

Market participants said some oxide plants are facing shutdowns or output restrictions because their capacity exceeds government standards. Tighter mining quotas, limited spot availability and higher NdFeB scrap costs have also created pressure in the oxide market.

These conditions favour producers with approved capacity and secure scrap channels. Huahong’s stronger oxide output suggests that recycled feedstock is becoming more important in balancing China’s rare earth supply chain.

The company’s revenue rose by 41% to 7.83bn yuan in 2025, while profit increased by 157% to 204mn yuan. The profit growth shows how higher rare earth prices and stronger magnet demand improved margins across the business.

High-Performance Magnet Demand Drives Capacity Expansion

Huahong’s rare earth magnetic materials output rose by 27% to 15,791t in 2025. Sales increased by 19% to 14,035t, while inventories rose by 29% to 1,042t.

The growth reflects rising demand for high-performance magnets in new energy vehicles, industrial robots, automation systems and energy-saving motors. These sectors require magnets with stronger magnetic performance, thermal stability and reliability.

China produced 16.6mn new energy vehicles in 2025, up 29% from a year earlier. NEV sales rose by 28% to 16.5mn units, supporting demand for high-performance NdFeB magnets used in traction motors, pumps, sensors, braking systems and other vehicle components.

Huahong said high-performance NdFeB magnetic materials accounted for around 42% of China’s total magnet output last year. That share is likely to remain important as vehicles become more electrified, automated and motor-intensive.

Industrial robots also supported magnet demand. Global industrial robot output exceeded 600,000 units in 2025, with compound annual growth above 10%. Robotics growth increases demand for compact, efficient and high-torque motor systems.

Huahong plans to start trial operations at the first phase of its Baotou facility in May-June 2026. The first phase will add 10,000 t/yr of high-performance magnet capacity.

Once the first phase comes on line, Huahong’s total high-performance magnet capacity will reach 20,000 t/yr. This positions the company more deeply in the downstream magnet chain, not only in rare earth oxide recycling.

The expansion shows how China’s rare earth industry is moving toward integrated recycling, oxide production and magnet manufacturing. Companies with access to scrap feedstock and downstream magnet capacity may be better positioned as rare earth supply becomes more regulated.

The Metalnomist Commentary

Huahong’s growth shows that rare earth recycling is no longer a secondary supply story. As NEV and robotics demand rises, NdFeB scrap recovery is becoming a strategic feedstock route for China’s high-performance magnet industry.

China Extends NEV and Electronics Incentives into 2025, Boosting Metals Demand

China New Energy Vehicles

The Chinese government has announced the continuation of incentives in 2025 to stimulate consumption of new energy vehicles (NEVs) and electronics, key downstream sectors for nonferrous metals.  This decision aims to bolster demand in these crucial industries and support economic growth.

NEV Subsidies and Expansion of Eligible Vehicles

The government will continue offering subsidies for NEV purchases. Consumers who scrap an old vehicle to buy a new NEV will receive a subsidy of up to 20,000 yuan ($2,729), while those trading in an old vehicle will receive up to 15,000 yuan.  Importantly, the minimum standard for old internal combustion engine vehicles eligible for the scrappage subsidy has been eased to the "National IV Emission" standard from National III, expanding the program's reach. These subsidies represent a significant portion (8-11%) of the average NEV price in China, according to industry estimates. NEVs in China include battery electric vehicles (EVs), plug-in hybrids, and fuel cell vehicles.  Beijing will also provide an 80,000 yuan subsidy for replacing new energy buses over eight years old or bus power batteries past their warranty, accelerating the electrification of public transport. Subsidies will also promote electric bicycle replacement in 2025.

Impact on Metals Markets

These incentives are an extension of the program launched last March to promote the replacement of old industrial equipment and consumer products, with NEVs being a central component. China's NEV sales in 2024 are projected to reach nearly 12 million units, a 20% increase year-on-year, with government incentives playing a crucial role.  The NEV industry is a major consumer of nonferrous metals.  

Each NEV typically uses over 200kg of metal minerals, including an estimated 50-70kg of lithium carbonate and 0.75kg of praseodymium-neodymium.  In 2025, subsidies will also be available for new electronics purchases (phones, tablets, smartwatches, etc.) up to 500 yuan (for devices under 6,000 yuan) and for replacing home appliances (refrigerators, washing machines, TVs, etc.) up to 2,000 yuan. The extension of these incentives is expected to provide support to metals markets facing pressure from oversupply or weak demand amid an economic slowdown.

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.

EU EV Transition Faces Energy Cost and Trade Policy Pressure

EU energy

EU EV transition plans are facing growing pressure from high energy costs, tougher global competition and a regulatory model that industry leaders say may be weakening Europe’s automotive position. Speakers at the FT Future of the Car Summit warned that Europe must rethink how it competes with China and other industrial economies.

EU EV transition policy has relied heavily on regulation, including the planned 2035 phase-out of new internal combustion engine car sales. But carmakers and suppliers argue that regulation alone cannot deliver a competitive electric vehicle industry if energy prices, subsidies and supply-chain costs remain unfavourable.

EU EV transition challenges are becoming more visible as Chinese automakers gain share in Europe, southeast Asia and Latin America. Chinese producers have built cost-competitive EV platforms through subsidies, domestic competition, supply-chain control and fast industrial scaling.

The debate matters for metals because slower or more expensive electrification can reshape demand for lithium, nickel, cobalt, manganese, copper, aluminium and rare earth magnets. Automotive materials demand will still grow, but the path may become less direct and more exposed to policy choices.

China’s EV Scale Forces Europe to Rethink Trade Strategy

European automotive suppliers are calling for a more realistic approach to global competition. The industry is facing rivals that operate under different labour, subsidy and industrial policy conditions.

China has become one of the world’s strongest EV exporters. It accounted for around 40% of global EV exports in 2024, while leading Chinese brands have expanded aggressively with lower-cost, technology-rich vehicles.

This creates a competitive problem for European carmakers. Europe has focused on setting strict emissions targets, while China has focused on making EVs cheaper, scalable and export-ready.

Several industry executives now argue that collaboration may become unavoidable. Western manufacturers may need to partner with Chinese or other international competitors that already have a technological lead in EV platforms, batteries, software and power electronics.

This could change European supply chains. Rather than developing every technology internally, carmakers may increasingly combine European assembly and branding with externally sourced EV systems.

That strategy could support faster electrification, but it also creates dependence on imported components, battery materials and processed inputs. It may help automakers compete on cost, but it does not solve Europe’s strategic materials vulnerability.

Energy Costs Could Slow Consumer Adoption and Metals Demand

High charging and energy costs are another major barrier to Europe’s EV push. If consumers face much higher charging costs than drivers in China or other regions, the economic case for EV adoption weakens.

This is critical because EV demand is highly sensitive to total ownership cost. Batteries may become cheaper, but charging costs, highway tariffs and energy price volatility can still shape consumer decisions.

For battery metals, this matters directly. Slower EV adoption would reduce the speed of demand growth for lithium, nickel, cobalt and manganese, especially in full battery electric vehicles with large battery packs.

Copper and aluminium remain better positioned across multiple automotive pathways. EVs require copper for wiring, motors, charging systems and power electronics, while aluminium supports lightweighting, battery enclosures and structural components.

However, Europe’s automotive metals demand will increasingly depend on which technology mix wins. Full BEVs support larger battery metals demand, while hybrids and lower-cost EV platforms could shift consumption toward smaller batteries, more electronics and continued use of conventional automotive materials.

The policy challenge is therefore industrial as much as environmental. Europe must reduce emissions while keeping manufacturing competitive, securing raw materials and lowering energy costs for consumers.

If Europe cannot align regulation, energy prices and trade strategy, its EV transition could become a market for imported vehicles rather than a platform for domestic industrial growth.

The Metalnomist Commentary

Europe’s EV problem is not only about regulation or consumer demand. It is about whether the region can build a cost-competitive industrial system around energy, materials, technology and trade before Chinese EV platforms define the market.

DMEGC Magnet Output Falls as Competition and Export Controls Pressure Sales

DMEGC

DMEGC magnet output fell in 2025 as tougher competition and China’s export restrictions on some rare earth permanent magnets weighed on sales. Hengdian Group DMEGC Magnetics produced 221,690t of magnetic materials during the year, down 2.5% from 2024.

DMEGC magnet output declined even as the broader Chinese magnet market benefited from stronger demand in new energy vehicles, smart appliances, data centres and consumer electronics. The company’s magnetic material sales fell by 5.9% to 218,282t, while inventories rose by 22% to 19,074t.

DMEGC magnet output weakness shows that rising end-market demand does not guarantee growth for every producer. Fiercer competition in China and overseas, combined with tighter controls on medium and heavy rare earth magnet exports, created pressure across the company’s magnet business.

China imposed export restrictions in April 2025 on permanent magnets containing seven medium and heavy rare earth elements. These included dysprosium, terbium, yttrium, lutetium, gadolinium, scandium and samarium.

The restrictions affected a sensitive part of the magnet supply chain. Dysprosium and terbium are especially important for high-performance magnets used in electric vehicles, wind turbines, robotics, aerospace systems and defence-related applications.

Magnetic Materials Lag as DMEGC Revenue Rises Elsewhere

DMEGC’s overall business still expanded in 2025 despite weaker magnet volumes. Revenue rose by 22% on the year to 22.6bn yuan, while profit increased by 1.3% to 1.85bn yuan.

The strongest revenue growth came from photovoltaic products. Sales from that segment rose by 29% to 14.3bn yuan, making solar products a major earnings driver for the group.

Revenue from magnetic materials increased by 5% to 4bn yuan, even though output and sales volumes declined. This suggests that pricing, product mix or higher-value material sales partly offset weaker physical shipments.

Lithium battery revenue also increased. Sales rose by 12% to 2.72bn yuan, while component sales climbed by 30% to 995mn yuan.

The result shows DMEGC’s advantage as a diversified materials and energy technology supplier. Weakness in one product line did not prevent group revenue growth, because photovoltaics, batteries and components supported the wider business.

Still, the magnet segment remains strategically important. DMEGC had designed magnetic materials capacity of 300,000 t/yr by the end of 2025, placing it among China’s leading magnetic material producers by sales scale.

The company’s battery and component capacity also reached 23GW and 21GW, respectively, while lithium battery output capacity stood at 8GWh. This gives DMEGC exposure to several electrification markets, including solar, batteries, motors and electronic components.

The inventory increase in magnetic materials deserves attention. Rising inventories during a year of falling sales can signal slower customer offtake, tougher competition or weaker export channels.

Export restrictions may have added to that pressure. When overseas buyers face licensing uncertainty, shipment delays or compliance risk, purchasing patterns can change even if underlying demand remains strong.

This is particularly important for rare earth permanent magnets. Buyers in automotive, robotics, wind power and electronics supply chains require stable delivery, traceability and qualification. Policy disruption can therefore affect procurement decisions quickly.

NEVs, Appliances and Data Centres Support Long-Term Magnet Demand

China’s magnet demand outlook remains positive despite DMEGC’s weaker 2025 volume performance. China produced 1.62mn t of magnetic materials in 2025, accounting for about 80% of global output.

This total included 750,000t of permanent magnetic ferrite, 600,000t of soft magnets and 270,000t of rare earth permanent magnets. The scale confirms China’s dominant role across both low-cost and high-performance magnet supply chains.

New energy vehicles remain one of the strongest demand drivers. China’s automobile output rose by 10% to 34.5mn units in 2025, while NEV production increased by 29% to 16.6mn units.

NEVs consume more magnetic materials because electric drivetrains, sensors, power steering, braking systems, pumps and comfort systems all require motors and magnetic components. As vehicles become more automated, intelligent and comfort-oriented, magnet intensity per vehicle is likely to increase.

Smart home appliances are another major demand source. China’s output of air conditioners, refrigerators and washing machines reached 266.97mn, 109.24mn and 125.17mn units, respectively, in 2025.

These appliances support demand for soft magnets and ferrite materials used in motors, compressors, power electronics and control systems. Energy efficiency standards and inverter technologies can further raise the need for higher-performance magnetic components.

Data centres are becoming a newer growth channel. Global server shipments rose by 1.9% to 16.3mn units in 2025, while AI server shipments increased by 25% to 2.04mn units.

Cooling systems in data centres require fans, motors and magnetic components. As AI infrastructure expands, heat management becomes more important, adding another source of demand for rare earth permanent magnets and soft magnetic materials.

Consumer electronics also supported the market. Global smartphone shipments rose by 2% to 1.25bn units, while personal computer shipments increased by 9.2% to 280mn units.

This broad demand base gives Chinese magnet producers a strong long-term market. However, it also attracts capacity expansion and intensifies competition. Producers must now compete not only on volume, but also on product quality, export compliance, heavy rare earth efficiency and downstream qualification.

The market is therefore entering a more selective phase. Producers with strong customer relationships, stable rare earth supply, advanced magnet technologies and diversified end-market exposure will be better positioned.

DMEGC’s 2025 results reflect that transition. Demand for magnets is rising, but policy controls, competition and inventory pressure can still weaken individual company performance.

The Metalnomist Commentary

DMEGC’s results show that China’s magnet market is growing, but not evenly. The next competitive divide will come from export-control management, high-performance magnet capability and access to reliable rare earth feedstock.

Zhongke Anode Material Sales Surge as Energy Storage Demand Accelerates

Zhongke

Zhongke anode material sales rose sharply in 2025 as China’s lithium-ion battery sector expanded across new energy vehicles and power storage. Hunan Zhongke Electric sold 363,253t of anode materials during the year, up 62% from 2024.

Zhongke anode material sales were supported by strong downstream demand and higher operating rates. The company’s output increased by 66% to 378,469t, reflecting a rapid scale-up in response to battery market growth.

Zhongke anode material sales also lifted revenue. Revenue from anode materials rose by 60% to 7.99bn yuan, broadly in line with the increase in shipment volumes.

The result shows how anode materials remain one of the key beneficiaries of battery expansion. Demand is no longer driven only by electric vehicles. Grid storage, industrial storage and AI-related power demand are becoming increasingly important.

Capacity Utilisation Tightens as China Battery Demand Expands

Zhongke’s anode material capacity reached 348,683 t/yr in 2025, up 46% from a year earlier. The increase followed equipment and technology upgrades across its production base.

Capacity utilisation rose to 108.6% from 95.7% in 2024. This shows that Zhongke was operating above nameplate capacity as demand outpaced available production capability.

The company is now expanding further. A third-phase project at its Zhaotong site in Yunnan province is under construction and will add 100,000 t/yr of anode material capacity by the end of 2026.

Zhaotong has become a key growth platform. The first phase, with 15,000 t/yr of capacity, started production in April 2020. The second phase, with 100,000 t/yr of capacity, began operations in March 2024.

Zhongke is also planning a 300,000 t/yr anode material complex in Luzhou, Sichuan province. This would further strengthen its position in China’s graphite anode supply chain.

The expansion reflects a broader industry trend. Anode producers are adding capacity to serve battery makers that need reliable supply, stable quality and lower-cost materials for high-volume cell production.

Overseas Expansion Targets Storage and Non-China Customers

Zhongke is also building a 100,000 t/yr anode material plant in Tangier, Morocco. The project targets customers outside China and reflects the growing need for regionalised battery material supply chains.

Morocco offers strategic value because it is close to European markets and has become more attractive for battery-related investment. For Chinese anode producers, overseas capacity can help serve customers facing localisation, trade and supply-chain security requirements.

Energy storage is becoming a major long-term demand driver. Global energy storage battery shipments reached 651.5GWh in 2025, up 76.2% from a year earlier. Chinese companies accounted for 614.7GWh, or 94.4% of global shipments.

EV Tank expects global energy storage battery shipments to exceed 2TWh by 2030. If this forecast materialises, anode material demand will continue rising across China and overseas markets.

Policy is also supporting growth. China is moving new energy storage from mandatory allocation toward a more market-oriented system, including capacity pricing support for independent grid-side storage.

AI data centres are adding another demand layer. Rapid growth in electricity consumption from AI infrastructure is increasing the need for power storage, grid stability and backup capacity.

Europe is also expanding storage under energy security strategies. EU member states installed 27.1GWh of new battery energy storage systems in 2025, up 45% from the previous year.

For Zhongke, this demand mix supports a larger and more international anode strategy. The company is positioning itself to serve China’s dominant battery ecosystem while preparing for overseas demand linked to storage, EVs and grid resilience.

The Metalnomist Commentary

Zhongke’s growth shows that anode materials are moving from an EV-driven market into a broader energy infrastructure market. The next competitive phase will depend on overseas localisation, graphite supply security and the ability to serve storage demand outside China.

Soaring Renewables Growth Still Falls Short of COP28 Target, Varies Widely by Region

Renewable energy deployment is speeding up at an “unprecedented rate” but still falls short of what it will take to hit the tripling of global capacity that countries committed to at last year’s United Nations climate summit, the International Renewable Energy Agency warns in an assessment published earlier this month.

That’s in spite of renewable energy producers installing 473 gigawatts of new capacity last year, accounting for 85% of the new electricity entering the global system, Canary Media reports.

Renewable energy capacity grew 14% last year, contributing to a 10% compound annual growth rate between 2017 and 2023, IRENA says. But it’ll take annual growth of 16.4% to meet countries’ 2030 deadline to triple the amount of renewable energy available around the world by 2030.

“Renewable energy has been increasingly outperforming fossil fuels, but it is not the time to be complacent,” said IRENA Director-General Francesco La Camera. “Renewables must grow at higher speed and scale” unless countries want to “face failure in reaching the tripling renewables target,” thereby putting the climate goals in the 2015 Paris agreement at risk.

The commitment to triple global renewable energy capacity and double the rate of annual energy efficiency improvements by 2030 was one of the signature results of last year’s COP28 climate summit in Dubai. “But IRENA’s analysis found that even if renewables continue to be deployed at the current rate over the next seven years, the world will fall 13.5% short of the target to triple renewables to 11.2 terawatts,” Climate Home News reports.

“Today’s report is a wake-up call for the entire world: while we are making progress, we are off track to meet the global goal,” said COP28 President and fossil fuel CEO Sultan Al Jaber. “We need to increase the pace and scale of development.”

Decarbonization Divide

La Camera added that the top-line numbers obscure “ongoing patterns of concentration in geography” that “threaten to exacerbate the decarbonization divide and pose a significant barrier to achieving the tripling target.” The numbers show Asia leading the world in renewable power generation followed by North America, and South America recording an “impressive jump”, but Africa lagging at just 3.5% annual growth due to a persistent and dire lack of climate finance.

Global Renewables Alliance CEO Bruce Douglas echoed the concern about the imbalances in deployment between regions. “We shouldn’t be celebrating,” he said. “This growth is nowhere near enough and it’s not in the right places."

Even with the aggregate growth data for Asia, Climate Home says, analysis by the REN21 international policy group shows the continent as a whole—excluding renewables powerhouse China—accounting for less than 18% of new capacity additions in 2023.

“The justice piece is huge and too often overlooked,” Douglas said, with IRENA reporting that Africa has seen less than 2% of global renewables investment over the last two decades. “That’s not acceptable in terms of an equitable transition,” he declared.

In the Financial Times, human geographer Brett Christophers of the University of Uppsala’s Institute for Housing and Urban Research cautions against mistaking China’s big numbers on renewable energy deployment for a global trend.

“The view that the world is finally winning in the energy transition away from fossil fuels is increasingly prominent,” he writes. But “comforting as this take may be, we need to throw cold water over it. We are emphatically not yet winning, and it is time to stop pretending that we are.”

‘Hugely Misleading’

It’s “hugely misleading” to look at the global growth rate for renewables when “there is not one single energy transition but a series of regional transitions of widely varying form, pace and scope,” Christophers adds. That matters because “we need rapid growth in renewable investment everywhere,” in every region of the world.

But at present, “the outsized materiality of one—China’s—means global figures veil more than they reveal. They currently look impressive because, and only because, China’s do.”

Elsewhere, the New York Times reports that the U.S. oil industry is still booming, with high prices and recent growth in demand translating into higher profits, even as renewable energy and electric vehicles surge. “That the price and demand for oil have been so strong suggests that the shift to renewable energy and electric vehicles will take longer and be more bumpy than some climate activists and world leaders once hoped,” the Times writes.

While the industry has gained from high prices brought on by the COVID-19 recovery and Russia’s war in Ukraine, the Times lists other factors that have improved oil companies’ prospects: under pressure from Wall Street to offer better financial returns: they’ve become more hesitant to go into debt to pay for new growth, while laying off workers and automating more of their operations. The result is that oil and gas operators in the lower 48 U.S. states have generated US$485 billion in free cash flow since 2021, compared to $140 billion in the previous decade.

“The environmental consequences of the oil industry’s financial turnaround are mixed,” the Times writes, citing Brookings Institution Director Samantha Gross. “Producing and burning fossil fuels releases greenhouse gases that are warming the planet. But higher oil prices are also making cleaner forms of energy more attractive.”

China to Boost NEV Use in Government Departments

China EV

In an effort to accelerate its energy transition and meet ambitious decarbonisation goals, China has mandated a significant increase in the use of new energy vehicles (NEVs) across government departments. This move aligns with the country's broader strategy to reduce its carbon footprint and transition to cleaner, more sustainable transportation options.

NEV Purchase Requirements for Government Departments

The Ministry of Finance has issued new guidelines stipulating that at least 30% of all new cars purchased by government departments in 2025 must be NEVs, which include battery electric vehicles (EVs), plug-in hybrid electric vehicles (PHEVs), and fuel cell vehicles (FCVs).

For government cars with confidential communication systems, typically used on fixed routes and within urban areas, the mandate is even stricter, with a requirement for 100% of these vehicles to be NEVs. Additionally, departments are now encouraged to prioritize renting NEVs when acquiring vehicles for official use.

By the end of 2022, China had approximately 5 million government-owned cars, and this new initiative will have a substantial impact on the overall market share of NEVs in the country’s public sector.

A Major Step in China’s NEV Transition

China has been a global leader in NEV adoption, with sales of electric vehicles surging over the past decade. In 2024, the country is expected to sell nearly 12 million NEVs, marking a 20% increase over 2023. The government’s latest directive further solidifies its role as a major player in the global electric vehicle (EV) market.

China’s policy of incentivizing NEV adoption, along with its ambitious decarbonisation targets, is expected to support continued growth in the sector. The push for government departments to transition to NEVs is not only a step toward meeting environmental goals but also a demonstration of the country's commitment to advancing green technologies.

Market participants predict that the Chinese government will continue to implement supportive policies in the coming years to boost domestic demand for NEVs and navigate the growing geopolitical pressure from other nations.

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.

Shanghai Extends Free License Plates for EVs Through 2025 to Boost NEV Adoption

Shanghai EV, Free License

Policy extension aligns with China’s broader push for greener, smarter vehicle consumption

Shanghai has extended its free license plate policy for new energy vehicles (NEVs) until the end of 2025. The move supports national efforts to replace older internal combustion engine (ICE) vehicles with cleaner alternatives and ease urban emissions.

The city continues to exempt NEV buyers from license plate auction fees, which remain mandatory for conventional vehicles. With over 5 million vehicles on its roads, Shanghai aims to encourage faster turnover of aging cars while reducing emissions and congestion in line with national climate goals.

Beijing and other top-tier cities ramp up NEV incentives

China’s central government confirmed in January 2025 that it would continue subsidies for both NEVs and ICE vehicles. These incentives aim to stimulate domestic demand and replace older, less efficient vehicles.

On 24 January, the Ministry of Commerce released a plan encouraging local governments to ease vehicle purchase restrictions through 2027. Major cities including Beijing, Guangzhou, and Shenzhen are adjusting quotas to prioritize NEV adoption. Beijing, for example, will raise its NEV purchase quota in 2025.

These changes form part of a broader strategy to optimize vehicle ownership systems in high-density cities where congestion is a persistent challenge.

NEV market continues to grow nationwide

As of the end of 2024, China had 31.4 million NEVs, comprising battery electric vehicles (BEVs), plug-in hybrids, and fuel cell vehicles. BEVs account for 22.09 million of that total, according to government data.

This figure represents 8.9% of China’s entire automobile population and reflects the country’s accelerating transition toward low-emission transport. Continued policy support from cities like Shanghai will likely further boost NEV sales and domestic battery demand in 2025.

Energy Fuels Madagascar Rare Earths Project Faces Delay After Government Change

Energy Fuels

Energy Fuels Madagascar rare earths project is likely to face a delay after a change in government slowed negotiations for a stability agreement. The US rare earths producer said progress on the Vera Mada project in Madagascar has been held back by the administrative transition.

Energy Fuels Madagascar rare earths project had been moving toward an investment agreement before the government change in September-October last year. Chief executive Ross Bhappu said the company had been close to signing the agreement before the process slowed.

Energy Fuels Madagascar rare earths project remains strategically important because Vera Mada is expected to produce monazite, a key rare earth-bearing mineral used to feed separation and downstream processing. The company initially planned to reach a financial investment decision tied to development and commissioning by the end of 2029.

The first phase of Vera Mada is planned with capacity to produce 20,000 t/yr of monazite. Any delay could affect Energy Fuels’ timeline for building a larger rare earth feedstock platform outside China.

Vera Mada and Donald Show Feedstock Complexity

The Vera Mada delay highlights how rare earth projects depend on more than geology. Government agreements, legal stability, fiscal terms and political continuity can all determine whether a project reaches investment decision.

A stability agreement is especially important in emerging mining jurisdictions. It can provide investors with clearer expectations around taxes, permitting, operating rules and long-term project protections.

Energy Fuels is also facing delays at the Donald project in Australia. The project is a joint venture with Astron and is designed to produce 14,000 t/yr of monazite.

Donald has been slowed by the need to finalise offtake agreements for more than four heavy mineral concentrates. Energy Fuels must also coordinate those agreements with financing parties and its joint venture partner.

That process is commercially complex because monazite projects often produce several mineral streams. Each product can require separate customers, pricing structures, logistics arrangements and financing approval.

These delays show the challenge of building rare earth supply chains outside China. Upstream projects must secure feedstock, offtake, financing, regulatory approval and processing routes before they can become meaningful industrial supply.

Terbium, Dysprosium and Yttrium Lift Strategic Value

Energy Fuels is still gaining market attention from its downstream rare earth progress. The company said it received substantial offtaker interest after producing its first terbium.

The company is currently producing about 1kg of terbium each week. It plans to add dysprosium production and other heavy rare earths such as samarium, europium, gadolinium and possibly yttrium, depending on market conditions.

This matters because terbium and dysprosium are critical inputs for high-performance permanent magnets. These magnets are used in electric vehicles, wind turbines, robotics, defence systems and advanced industrial equipment.

Yttrium is also gaining strategic attention. Energy Fuels said demand and requests for yttrium from the aerospace industry are extremely strong.

The company’s first-quarter financial performance also improved. Its loss narrowed to $11mn on revenue of $36mn, compared with a $26mn loss on revenue of $17mn a year earlier.

Energy Fuels is therefore advancing on two fronts. It is building heavy rare earth separation capability, while trying to secure long-term monazite feedstock from Madagascar and Australia.

The near-term risk is timing. If Vera Mada and Donald continue to slip, Energy Fuels may need to rely more heavily on existing and alternative feedstock sources to support its rare earth growth strategy.

The Metalnomist Commentary

Energy Fuels’ challenge shows that rare earth supply chains are constrained by project execution as much as processing technology. Terbium, dysprosium and yttrium demand is strong, but feedstock security will decide how quickly non-China supply can scale.

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.

Clean Energy Technology Market Set to Outgrow Oil by 2035

Clean energy

Clean energy technology market growth is accelerating across every major IEA scenario, even as manufacturing investment slows from recent peaks. The global market for electric vehicles, batteries, solar modules, wind turbines, heat pumps, electrolysers, zero-emissions trucks, and alternative propulsion ships reached almost $1.2 trillion in 2025.

The IEA said the clean energy technology market could reach around $2 trillion by 2035 under current policies and about $3 trillion under stated policies. In every scenario, its 2035 value exceeds the size of the global oil market in 2025.

This shift shows that clean energy is no longer a niche transition segment. It is becoming a core industrial market tied to manufacturing competitiveness, energy security, power infrastructure, and critical minerals demand.

Manufacturing Investment Slows as Capacity Surplus Builds

Clean energy technology manufacturing investment has started to cool after a major expansion wave. Global investment in key clean energy manufacturing fell from $220 billion in 2023 to just below $200 billion in 2024, with a further gentle decline expected through 2025.

The slowdown partly reflects surplus production capacity in solar modules and batteries. This creates pressure on margins, intensifies trade disputes, and pushes governments to protect domestic industries from foreign competition.

However, deployment continues to rise across all IEA scenarios. This means the next bottleneck may not be factory construction alone, but the infrastructure needed to absorb clean energy technologies at scale.

Grids and Supply Chain Resilience Become the Critical Battleground

Power grids are becoming one of the most important enabling sectors for clean energy growth. The IEA estimated investment in enabling infrastructure, mostly grids, at nearly $430 billion in 2025.

Low-emissions fuels also gained industrial relevance. Investment in low-emissions fuel production plants reached about $30 billion in 2025, matching expected investment in oil refineries.

The biggest strategic risk remains geographic concentration. China still holds the largest share of clean energy manufacturing, and the IEA warned that every major supply chain has at least one weak link where less than a quarter of demand could be met without the largest producer.

The Metalnomist Commentary

The clean energy technology market is now large enough to reshape global metals, manufacturing, and trade policy. The next decade will reward countries that can build resilient supply chains for batteries, grids, solar, wind, and critical minerals without relying on a single manufacturing hub.

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

XTC New Energy

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

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

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

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

LMFP Gains Momentum as Producers Seek Better Energy Density

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

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

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

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

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

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

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

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

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

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

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

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

The Metalnomist Commentary

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

China NdFeB Magnet Output Rose in 2025 on Strong Downstream Demand

Earth Panda

China NdFeB magnet output increased in 2025 as demand strengthened from new energy vehicles, energy-saving appliances, industrial robots, consumer electronics and wind turbines. The rise confirmed the growing industrial importance of rare earth permanent magnets across electrification and automation supply chains.

China NdFeB magnet output was supported by higher production at major domestic magnet producers. Anhui Earth Panda produced 4,127t of sintered NdFeB magnets, up 24.8% from 2024, while sales rose 24.16% to 4,014t.

China NdFeB magnet output also increased among bonded and soft magnet producers. Galaxy Magnets lifted bonded NdFeB output by 4.98% to 3,606t, while Sinomag raised wet-pressed magnet tile output by 9.34% to 44,992t.

NEVs, Appliances and Robots Supported Magnet Consumption

New energy vehicles remained one of the strongest demand engines for rare earth permanent magnets. China’s NEV sales rose 28% to 16.49mn units in 2025, supported by continued adoption and policy incentives linked to decarbonisation goals.

The NEV sector uses high-performance NdFeB magnets in traction motors, power steering systems and other electrified vehicle components. China’s NEV sales are expected to reach 19mn units in 2026, although growth is likely to slow from the previous year.

Energy-saving appliances also supported magnet demand. China sold 267mn air conditioners in 2025, up 0.7%, with inverter air conditioner sales reaching about 187mn units.

Industrial robots added another growth channel. China’s industrial robot output rose 28% to 773,074 units in 2025, reinforcing demand for compact, efficient motors using rare earth magnet materials.

Wind Turbines Add Long-Term Demand for High-Performance Magnets

Wind power continued to expand the strategic role of rare earth permanent magnets. China’s cumulative wind turbine capacity reached around 640GW by the end of 2025, up 23% from a year earlier.

Offshore wind remains especially important because direct-drive permanent magnet technology is widely used in that market. China’s offshore wind capacity reached about 47GW, with 6.59GW newly installed during 2025.

Global wind additions were also strong. Newly installed wind turbine capacity was estimated at 150GW in 2025, compared with 120GW in 2024 and 121GW in 2023.

The growth outlook points to stronger demand for neodymium, praseodymium, dysprosium and terbium. However, rising inventories at some Chinese magnet producers show that supply growth must be balanced carefully against end-market absorption.

The Metalnomist Commentary

China’s magnet sector is benefiting from the convergence of EVs, robotics, appliances and wind power. The next strategic issue is whether rare earth oxide, metal conversion and high-end magnet capacity can keep pace without creating another inventory cycle.

Jinli Magnet Permanent Magnets Output Rose as NEV and Robotics Demand Expanded

Jinli Magnet

Jinli Magnet permanent magnets production increased strongly in 2025 as demand from new energy vehicles, wind turbines, robots and industrial motors continued to expand. The Chinese magnet manufacturer produced 34,400t of high-performance rare earth permanent magnetic materials, up 17% from a year earlier.

Jinli Magnet permanent magnets sales also rose, with finished magnet materials product sales increasing by 21% to 25,300t. Capacity utilisation exceeded 90%, showing that downstream demand remained strong across electrification-linked industries.

Jinli Magnet permanent magnets growth highlights the rising importance of neodymium-iron-boron materials in global industrial supply chains. These magnets are critical for EV traction motors, wind turbine generators, inverter air conditioners, servo motors, robotics and energy-efficient industrial equipment.

NEVs and Industrial Motors Drove Magnet Revenue Growth

JLM’s revenue rose 14% on the year to 7.7bn yuan in 2025, while profit surged by 142% to 706mn yuan. The earnings improvement reflected higher magnet sales, stronger capacity utilisation and demand growth from higher-value applications.

The NEV and automobile components sector remained the company’s largest growth engine. Revenue from this segment rose by 30% to 3.9bn yuan, underlining the importance of rare earth magnets in electric drivetrains and automotive electrification.

The inverter air conditioner industry also contributed strongly, with revenue rising by 13% to 1.9bn yuan. This shows that energy efficiency remains a major demand driver for high-performance NdFeB magnets beyond electric vehicles.

Robotics and Wind Power Support Long-Term Rare Earth Magnet Demand

JLM is preparing for further growth by targeting 60,000 t/yr of magnetic materials production capacity by 2027. The company also plans to develop an advanced production line for embodied robot motor rotors.

This expansion reflects the next stage of magnet demand. Robotics, humanoid systems, industrial servo motors and automated equipment require compact, high-torque motor designs, creating new demand channels for high-performance rare earth magnets.

JLM currently has 40,000t of rough NdFeB magnet capacity. Its 2025 revenue also included 488mn yuan from wind turbines, 300mn yuan from robots and industrial servo motors, and 226mn yuan from computer, communication and consumer electronics applications.

Demand from wind turbines and other clean energy industries is expected to rise in 2026. Electrification, energy efficiency and automation will continue to support rare earth magnet consumption, strengthening the strategic value of NdPr, dysprosium and terbium supply chains.

The Metalnomist Commentary

JLM’s results show that rare earth magnet demand is broadening beyond EVs into robotics, industrial motors and energy efficiency. The next competitive battleground will be secure access to rare earth oxides, metal conversion capacity and high-end magnet manufacturing.