Singapore opens GaN semiconductor facility to strengthen global supply

GaN Chip

Singapore has launched the National Semiconductor Translation and Innovation Centre for Gallium Nitride (NSTIC GaN), marking a major step in the nation’s advanced chip manufacturing ambitions. The new GaN semiconductor facility will begin commercial operations in mid-2026 and position Singapore among a handful of global hubs capable of producing GaN on SiC wafers. This Singapore GaN semiconductor facility is expected to support both domestic and international demand for high-efficiency power electronics and communication devices.

Singapore GaN semiconductor facility boosts manufacturing capacity

NSTIC (GaN) will feature production lines for 6- and 8-inch GaN on SiC wafers, offering flexibility for diverse applications. According to Minister Tan See Leng, the facility aims to support companies from start-ups to multinationals with production-grade capabilities. GaN semiconductors can operate at higher voltages, switch faster, and reduce heat, making them vital for telecoms, EV chargers, and aerospace systems. Demand for GaN chips is rising sharply, with the global RF GaN market projected to more than double to $2.7bn by 2028.

Global collaboration and market impact

The Singapore GaN semiconductor facility is a collaboration between A*Star, DSO National Laboratories, and Nanyang Technological University, backed by $123mn in funding. Partnerships include WaferLead, a SiC substrate start-up, which will leverage NSTIC GaN to enhance wafer quality and expand its global market presence. Once fully operational, the facility will offer foundry services to overcome capital barriers and accelerate new product launches. This initiative complements Singapore’s broader semiconductor push, including NSTIC (Photonics) and a $500mn advanced packaging facility announced earlier this year.

The Metalnomist Commentary

The Singapore GaN semiconductor facility reflects the strategic shift toward localized, resilient semiconductor ecosystems. By investing in GaN technology, Singapore not only reduces reliance on foreign supply chains but also positions itself as a critical hub in the global race for next-generation power electronics. The move underscores the increasing geopolitical and industrial weight of semiconductors in clean energy, EVs, and defense applications.

Lynas Opens Australia’s First Fully Commissioned Rare Earths Facility in Kalgoorlie

Lynas Rare Earths

Australian rare earths producer Lynas Rare Earths has officially inaugurated the nation’s first fully commissioned rare earths processing plant in Kalgoorlie. This milestone marks a significant step forward in bolstering Australia’s rare earths production capabilities.

The A$800 million ($530 million) facility aims to process mixed rare earth carbonate sufficient to produce 9,000 t/yr of neodymium-praseodymium (NdPr), a vital material for rare earth magnets used in electric vehicles (EVs) and other advanced technologies. Currently, the processed rare earth carbonate is shipped to Lynas' Malaysian facility and is also expected to supply its planned facility in the United States.

Boosting NdPr Output and Expanding Operations

In Q3 2024, Lynas reported a production of 1,677t of NdPr oxide at its Malaysian plant, up from 1,504t in Q2 and 1,526t in Q3 2023. The Kalgoorlie facility is anticipated to further increase Lynas’ NdPr supply to meet growing global demand.

The Malaysian facility, meanwhile, is undergoing a major expansion. It is projected to commence production of dysprosium and terbium—critical materials for high-performance permanent magnets—by 2025. Additionally, the site’s reconfigured circuits will have the capability to separate up to 1,500 t/yr of mixed heavy rare earth compounds.

Global Implications of Lynas’ Expansion

As a leading producer of rare earths outside China, Lynas plays a key role in diversifying global supply chains for critical minerals. The Kalgoorlie facility enhances Australia's position as a reliable source of rare earth materials while supporting the development of advanced technologies such as EVs and renewable energy solutions.

Lynas Heavy Rare Earths Production Breaks China's Market Monopoly

Lynas Rare Earths

Lynas heavy rare earths production achieved a historic milestone by becoming the first non-Chinese producer of separated dysprosium. The Australian mineral company's Lynas heavy rare earths facility in Malaysia successfully produced separated dysprosium, marking a significant breakthrough in global supply chain diversification for critical minerals essential to advanced manufacturing and defense applications.

Malaysian Plant Establishes Alternative Supply Chain

Lynas heavy rare earths processing capabilities expanded significantly during the first quarter of 2025. The company constructed dysprosium and terbium processing circuits at its Malaysian facility, with capacity to separate up to 1,500 tonnes per year of heavy rare earths. These new circuits position Lynas to challenge China's dominance in the separated heavy rare earths market.

Meanwhile, Lynas plans to commence separated terbium production next month at the same facility. The processing circuits will eventually enable production of separated dysprosium, terbium, and holmium concentrate. Additionally, the facility will produce unseparated samarium/europium/gadolinium and unseparated mixed heavy rare earths, creating a comprehensive product portfolio.

Strategic Timing Amid Chinese Export Restrictions

However, the breakthrough comes at a critical juncture for global rare earths markets. Chinese suppliers recently limited offers for rare earth minerals, including dysprosium and terbium, following government export control tightening. This timing underscores the strategic importance of establishing alternative supply sources outside China's control.

Therefore, Lynas' production achievement addresses growing concerns about supply chain vulnerability in critical minerals. The company's Q1 2025 total rare earth oxide production reached 1,911 tonnes, including 1,509 tonnes of NdPr oxide. Production declined 46% year-on-year due to improvement and maintenance works across Malaysian and Western Australian operations.

US Partnership Strengthens Supply Chain Resilience

Furthermore, Lynas continues developing another rare earths processing plant in Texas with US government support. The American facility will produce both separated heavy and light rare earths, further reducing Western dependence on Chinese supplies. This dual-facility strategy creates redundancy and geographic diversification for critical mineral processing.

As a result, Lynas positions itself as a cornerstone of Western rare earths supply chain security. The company's expansion into heavy rare earths processing represents a strategic shift from its traditional focus on light rare earths production, addressing military and high-tech manufacturing requirements.

The Metalnomist Commentary

Lynas' achievement in producing separated heavy rare earths outside China represents a watershed moment for global supply chain resilience in critical minerals. The timing coincides perfectly with Chinese export restrictions, demonstrating the urgent need for alternative suppliers in materials essential to clean energy, defense, and advanced technology sectors.

Novelis Opens Aluminium Recycling Facility in South Korea to Boost Low-Carbon Supply

Novelis

Ulsan Plant Increases Novelis’ Regional Recycling Capacity by 100,000 t/yr

Novelis has opened a new aluminium recycling facility in Ulsan, South Korea, increasing its regional capacity by 100,000 tonnes per year. The facility, fully funded by Novelis with a $65 million investment, is a joint venture with Japan’s Kobe Steel. This expansion underscores Novelis commitment to low-carbon aluminium and a circular economy across Asia’s industrial sectors.

The new Ulsan aluminium recycling facility complements Novelis' existing Yeongju plant, bringing total Korean capacity to 470,000 t/yr. It will recycle used beverage cans, as well as automotive and industrial scrap, producing sustainable aluminium sheet ingot.

As a result, the project is expected to reduce carbon emissions by approximately 470,000 t/yr, aligning with global decarbonization goals.

Sustainable Aluminium Demand Rising in Asia

Novelis Asia president Sachin Satpute emphasized that the Ulsan aluminium recycling centre is a response to growing demand for sustainable materials. Key sectors such as beverage packaging, automotive, and specialty products increasingly require low-carbon aluminium supply chains. Meanwhile, regional policy and ESG pressures are accelerating investment in closed-loop recycling infrastructure.

The aluminium recycling facility in South Korea highlights Novelis’ strategic intent to lead in sustainable aluminium production. With Asia as a major consumption base, this move positions Novelis competitively in both environmental and industrial performance.

The Metalnomist Commentary

Novelis’ investment in Ulsan reflects the industry's pivot toward regionalized, sustainable aluminium production. With policy and market aligning on carbon goals, such facilities are not just environmental assets—they're strategic imperatives.

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.

Lufthansa Technik to Establish Jet Engine Repair Facility in Calgary, Boosting LEAP Engine Support in North America

Lufthansa Technik

WestJet Partnership Anchors Lufthansa Technik's Canadian Expansion

Lufthansa Technik (LHT), a global leader in aerospace aftermarket services, will build a LEAP jet engine repair facility at Calgary International Airport. This marks a pivotal step in enhancing North America's engine maintenance capacity amid rising demand.

The new plant is part of a 15-year strategic partnership with Canadian carrier WestJet, who will serve as the launch customer. The facility will begin construction in mid-2025 and is projected to be operational by 2027. The initiative has secured $120 million in combined funding from municipal, provincial, and federal levels in Canada, reflecting broad governmental support for aerospace investment.

Strategic Growth Driven by Engine Demand and Delays in Aircraft Delivery

The facility will specialize in maintenance, repair, and overhaul (MRO) of LEAP engines, a high-efficiency powerplant developed by CFM International, the joint venture between GE Aerospace and Safran. The LEAP-1B powers Boeing 737 MAX, while the LEAP-1A supports the Airbus A320neo series. Both programs have experienced delivery delays, pushing airlines to operate older aircraft longer, which has driven demand for MRO services.

LHT will conduct complex engine overhauls in Hamburg and at its Polish joint venture, XEOS, alongside the new Calgary site. This distributed network aims to meet increased aftermarket needs, especially as titanium-intensive components face production bottlenecks.

Calgary Facility Positions Canada as Key Player in Global MRO Market

This move positions Calgary — and by extension, Canada — as a growing hub in the global aerospace maintenance landscape. Beyond WestJet, LHT plans to open the facility’s services to other LEAP engine operators across North America. This long-term investment also reflects a strategic realignment of global MRO resources toward regions with growing fleet maintenance needs and supportive government frameworks.

Toyota Expands EV Operations in China and the US with New Facilities

Toyota

Toyota, a leading Japanese manufacturer, is setting up a new electric vehicle (EV)

production facility in Shanghai, China. The company aims to strengthen its presence in the growing Chinese EV market by delivering electric vehicles (EVs) and EV batteries to local customers. At the same time, it will begin shipping EV batteries from its newly established North Carolina facility in the United States. These moves are part of Toyota’s broader strategy to boost global EV production, aligning with its goal to sell 1.5 million EVs by 2026.

New Shanghai Facility: Focusing on EVs and Batteries

The new plant in Shanghai will focus on the production of EV batteries as well as the new Lexus brand EVs. Toyota plans to manufacture 100,000 EV units after 2027, though it has not disclosed whether this production will include batteries for models other than the Lexus EVs. Interestingly, Toyota has decided to set up the new Shanghai firm as a wholly-owned subsidiary, a rare move for foreign automobile manufacturers, who typically partner with local companies in China. This suggests that Toyota is committed to delivering new energy vehicles (NEVs) to Chinese customers rapidly, with a strong focus on the domestic market.

North Carolina Facility: EV Battery Production Ramp-Up

Toyota is also investing heavily in its North Carolina facility, which will start delivering EV batteries from April. This facility, with an investment of approximately $14 billion, will feature 10 production lines for batteries catering to EVs and plug-in hybrid electric vehicles (PHEVs), alongside four production lines dedicated to hybrid vehicle batteries. While Toyota has not disclosed the specific production volume for its North Carolina plant, this significant investment underscores its commitment to becoming a major player in the global EV market.

Toyota's EV Sales Strategy and Challenges

Despite these expansions, Toyota's global EV sales remain sluggish, with the company revising its sales forecast downward for the 2024-25 fiscal year. The revised outlook predicts sales of 142,000 EVs and 154,000 PHEVs, which represents a decrease of 11% and 4.9%, respectively, compared to the previous forecast. Toyota’s decision to adjust its expectations for EV and PHEV sales marks two consecutive downward revisions, highlighting the challenges the company faces in meeting its EV targets. Nonetheless, the investments in China and the US represent critical steps in Toyota's ongoing efforts to accelerate its EV production and meet its 1.5 million EV sales goal by 2026.

Tesla Launches Texas Lithium Hydroxide Refinery: A Game Changer for EV Battery Production

Tesla Lithium Hydroxide Refinery

Tesla has officially begun operations at its lithium hydroxide refinery in Texas, marking a significant step in the company’s strategy to control its supply chain for critical battery materials. Located near Corpus Christi, the new facility aims to process lithium at scale, securing Tesla’s position as a major player in the electric vehicle (EV) market and ensuring a more stable supply of this vital element.

Tesla’s Vision for Lithium Refining at Scale

Following the groundbreaking of the facility in May 2024, Tesla has now successfully processed raw materials through its kiln. This refinery is a pivotal part of Tesla's plan to reduce its reliance on third-party suppliers and mitigate the effects of skyrocketing lithium prices. Tesla’s CEO, Elon Musk, emphasized that while lithium is abundant globally, the slow pace of extraction and refinement has created a bottleneck. The Texas refinery is designed to address this challenge by processing lithium more efficiently and directly at scale.

The facility is capable of refining lithium hydroxide, a key component in EV battery production. Tesla's refinery will primarily process spodumene concentrate, the most common raw material used to produce lithium hydroxide. However, the company has also announced plans to process recycled batteries and manufacturing scrap at the facility in the future, which would further enhance the sustainability and efficiency of its operations.

Advanced Refining Technology and Sustainable Practices

One of the most notable features of Tesla's new refinery is its acid-free lithium refining method, which reduces environmental impact compared to traditional refining techniques. The byproduct of this process—comprising sand and limestone—can be used in construction materials, further contributing to the sustainability goals of Tesla’s operations.

The refinery has a projected capacity of 50 GWh/yr, though Tesla has not disclosed a specific timeline for ramping up to full production capacity. The company’s efforts to diversify its lithium supply chain are also evident in its sourcing strategy. In 2023, Tesla sourced over 75% of its lithium from mining and refining companies, including industry giants such as Albemarle, Acradium, Ganfeng, and Yahua.

Implications for the EV Industry and Lithium Supply Chain

Tesla’s Texas lithium refinery represents a critical move in the global shift toward more sustainable and efficient lithium extraction. As demand for electric vehicles continues to surge, securing a stable and cost-effective supply of lithium is paramount. This refinery could serve as a model for other manufacturers looking to mitigate risks associated with lithium shortages and price volatility.

While Tesla has yet to provide full details on the ramp-up timeline, the opening of this facility signals the company’s ongoing commitment to innovating within the energy and automotive sectors, ensuring that it remains a leader in the electric vehicle industry.

India to Invest $393 Million in New Semiconductor Facility

The Indian government has approved a significant investment of Rs33 billion ($393 million) for a new semiconductor manufacturing facility in Sanand, Gujarat. This funding is part of an incentive scheme introduced in December 2021.

The new facility, operated by Kaynes Semicon, is expected to produce 6 million chips per day. It will cater to various sectors, including industrial applications, automotive, electric vehicles, consumer electronics, telecommunications, and mobile phones. The facility will also increase India's demand for key semiconductor materials such as silicon, antimony, and germanium.

Previously, the Indian government had approved three other semiconductor manufacturing units: two by Tata Electronics in Dholera, Gujarat, and Morigaon, Assam, and one by CG Power in Sanand. Additionally, the Union Cabinet approved the country's first semiconductor assembly unit in Sanand in June 2023.

This new facility will be funded under a Rs76 billion scheme aimed at developing semiconductor and display manufacturing in areas of "strategic importance and economic self-reliance," as approved by the Union Cabinet on December 15, 2021.

The four manufacturing units, with a total investment of nearly Rs1.5 trillion, will collectively have a production capacity of about 70 million chips per day, bolstering India's chip-making ecosystem.

PTC and Odisha Plan Titanium Sponge Facility

PTC Industries

PTC Industries and the Odisha government have signed an MoU to establish an aerospace-grade titanium sponge facility. This project aims to boost India's domestic titanium production.

Strategic Investment to Enhance Titanium Supply

While details on capacity, investment, and timeline are undisclosed, the facility will position PTC as an integrated titanium producer. The Odisha government is providing industrial ecosystem support and infrastructure incentives. This announcement follows PTC's commissioning of a VAR furnace in Lucknow and a supply agreement with AMIC Toho Titanium Metal (ATTM). India, with the third-largest ilmenite reserves, currently lags in titanium sponge production. The country relies on imports to support its growing aerospace sector.

Addressing India's Titanium Production Gap

Currently, India's titanium sponge production is limited to Kerala Minerals & Metals' 500 t/yr facility. This new facility aims to address this gap. For context, the ATTM joint venture in Saudi Arabia, with a 15,600 t/yr capacity, required approximately five years from announcement to commercial production and a $420 million investment.

Lynas Reports Decline in Rare Earth Production for FY2023-24

Lynas

Australian rare earth producer Lynas has reported a significant drop in rare earth oxide output and revenue for the fiscal year ending June 2024. The decline was attributed to lower rare earth prices and a six-week shutdown at its Malaysian processing facility during November and December 2023.

Production Decreases Amid Plant Shutdown

Lynas produced 10,908 tonnes of rare earth oxides (REO) in FY2023-24, representing a 35% decline from 16,780 tonnes the previous year. The output of praseodymium-neodymium oxide (PrNd), a key material used in magnets, also dropped by 8% to 5,655 tonnes. The shutdown, aimed at expanding the facility's PrNd separation capacity, contributed to reduced production, with total REO output falling to 1,566 tonnes during the October-December quarter, down from 4,457 tonnes in the same period the previous year.

Revenue and Profit Drop

Lynas’ sales volumes also took a hit, with 12,158 tonnes of REO sold in FY2023-24, a decrease of 24% from the prior year. Revenue fell by 37% to A$463.3 million, while net profit plummeted by 72% to A$84.5 million. The drop in average sales prices, which fell by 17% to A$38.10 per kilogram, played a significant role in the financial decline.

Despite these challenges, Lynas managed to reduce total costs by 17%, focusing on improving efficiency across its rare earth operations. The company invested A$579.3 million in capital and mine development projects during the fiscal year, including the expansion of the Mount Weld project and the construction of the Kalgoorlie rare earth processing facility.

Lynas continues to expand its Mount Weld rare earth project to feed both its Malaysian processing plant and the new Kalgoorlie facility. The Mount Weld project has seen significant growth, with its total rare earth oxide (TREO) resources increasing by 46% since 2018. The project’s ore reserves also rose by 63% to 32 million tonnes in 2024.

The Kalgoorlie facility began producing mixed rare earth carbonate (MREC) in the April-June 2024 quarter, and the first shipment has already been dispatched to the Malaysian plant. The continued expansion of both facilities is expected to meet rising market demand for rare earth materials.

Hydro UK Extrusion Closure at Birtley Plant Affects 100 Jobs

Hydro

Hydro UK extrusion closure confirmed as Norwegian aluminum producer Hydro announced the shutdown of its Birtley facility due to challenging market conditions. The Hydro UK extrusion closure will eliminate 12,000 tonnes annual production capacity from two extrusion presses while making 100 employees redundant, as the company consolidates operations at remaining UK facilities in Tibshelf and Cheltenham following extensive employee consultations.

Production Consolidation Strategy Addresses Market Pressures

Hydro UK extrusion operations face restructuring as the company transfers Birtley's customers and production activities to other domestic facilities. The Tibshelf and Cheltenham plants will absorb the redistributed workload, maintaining customer service continuity while optimizing operational efficiency. This consolidation approach demonstrates Hydro's commitment to preserving UK market presence despite facility closures.

Meanwhile, the Birtley closure reflects broader aluminum extrusion industry pressures including elevated energy costs and competitive market dynamics. The facility's 12,000 tonne annual capacity represents a relatively modest scale that may struggle to maintain competitiveness against larger, more efficient operations. Market consolidation trends favor facilities with enhanced economies of scale and operational flexibility.

European Restructuring Extends Beyond UK Operations

However, the Birtley shutdown forms part of broader European restructuring initiatives affecting Hydro's continental operations. The company announced closure of an anodizing facility in Luce, France, alongside 30,000 tonnes of recycling capacity reduction in Puget, France earlier this month. These concurrent shutdowns indicate systematic capacity rationalization across multiple European markets.

Therefore, Hydro's restructuring strategy targets operational optimization while maintaining core market positions in key European regions. The company prioritizes facilities with superior cost structures and strategic market access over smaller, less competitive operations. This approach aligns with industry trends toward consolidation and efficiency improvements amid persistent cost pressures.

Industry Consolidation Reflects Challenging Operating Environment

Furthermore, aluminum extrusion sector consolidation accelerates as producers face sustained pressure from energy costs, raw material pricing, and competitive dynamics. UK manufacturing operations encounter particular challenges from elevated electricity prices and post-Brexit trade complexities. These factors contribute to ongoing industrial capacity rationalization across energy-intensive sectors.

As a result, Hydro's facility consolidation demonstrates how established aluminum producers adapt to challenging market conditions through strategic capacity management. The company's ability to redistribute production while maintaining customer relationships illustrates operational flexibility essential for navigating volatile market environments. Similar consolidation activities may continue across European aluminum processing sectors facing comparable pressures.

The Metalnomist Commentary

Hydro's UK extrusion plant closure exemplifies the ongoing rationalization within Europe's aluminum processing sector, where elevated energy costs and competitive pressures force even established producers to consolidate operations for improved efficiency. The company's ability to redistribute production to remaining facilities while maintaining customer service demonstrates the strategic importance of operational flexibility in managing volatile market conditions that continue to challenge energy-intensive manufacturing across the region.

Talon Buys North Dakota Site for Nickel-Copper Processing Facility

Talon Metals

Former Coal Site to Host Critical Minerals Hub Backed by DOE Grant

Talon buys North Dakota site for nickel-copper processing, marking a strategic move to expand U.S.-based critical minerals infrastructure. The company announced it will acquire a 256-acre former coal mine site from Westmoreland Mining to establish its Beulah Minerals Processing Facility (BMPF). The new facility will process nickel and copper ore from the Tamarack JV—a Minnesota-based project Talon is developing with Rio Tinto.

The BMPF will help close a key gap in domestic nickel and copper refining, particularly for battery and energy transition supply chains. Talon plans to complete permitting by late 2026 and begin construction in 2027, aligning with U.S. strategic objectives to localize battery metal processing. The U.S. Department of Energy (DOE) previously awarded $114.8 million in funding to support the project, reinforcing its national significance.

Deal Structure Offers Flexible Payments and Future Delivery Incentives

The acquisition structure includes the transfer of property title in exchange for 15 million Talon share purchase options and a variable payment scheme. Talon will pay Westmoreland $0.50 per metric tonne of ore delivered to the BMPF, with total payments capped at $10 million. This model allows Talon to focus capital on facility development while ensuring Westmoreland benefits from future throughput.

As Talon buys North Dakota site for nickel-copper processing, it positions itself as a vertically integrated supplier of critical minerals for electric vehicles, grid storage, and defense technologies. The BMPF will also help reduce U.S. reliance on foreign refining capacity, particularly from China and Russia.

The Metalnomist Commentary

Talon’s strategic acquisition reflects the shift from coal to critical minerals in U.S. industrial land use. By leveraging DOE support and Rio Tinto’s upstream assets, the company strengthens its role in building a secure, domestic battery metals supply chain.

T1 Energy Plans 5GW Solar Cell Plant in Texas to Strengthen US Supply Chain

T1 Energy

Texas Facility Marks New Phase for US Solar Manufacturing

T1 Energy announced plans to build a 5GW solar cell facility in Texas, aiming to address critical gaps in the US solar supply chain. The $850mn G2_Austin plant is scheduled to start production by late 2026. This project follows T1 Energy’s acquisition of Trina Solar’s US assets in 2024 and a rebranding from Freyr Battery, which abandoned its $2.6bn battery storage project in Georgia.

The new facility will supply cells to the 5GW G1_Dallas module plant, reducing reliance on imports from Asia. Current US solar cell capacity remains just 2GW, compared to 56GW of module production. This imbalance highlights the urgency of building more domestic cell production.

US Tariffs and Technology Drive Expansion

T1 Energy’s Texas project benefits from US tariffs and tax incentives, which encourage domestic solar manufacturing. The US Commerce Department has imposed anti-dumping duties on PV cells from Southeast Asia to counter circumvention of Chinese tariffs. Meanwhile, T1 Energy will adopt high-efficiency TOPCon technology, which uses n-type polysilicon. This move reflects the global shift from older Perc technology toward higher-performing solar cells.

However, tariff uncertainty has caused the company to lower its module production forecast for 2025 to 2.6–3GW, down from 3.4GW. T1 Energy is also holding off on long-term power purchase agreements until cost visibility improves. Despite these challenges, the Austin facility represents a major step toward reshoring solar cell production and securing domestic supply chains.

The Metalnomist Commentary

T1 Energy’s 5GW solar cell project signals a turning point for US clean energy policy, linking tariffs, incentives, and new technology adoption. If executed successfully, this facility could strengthen US energy independence while setting a precedent for integrated solar manufacturing in North America. However, cost pressures and tariff volatility remain significant risks for long-term stability.

AE Elemental Unveils New EV Battery Recycling Facility in Poland

AE Elemental

AE Elemental, a joint venture between US-based Ascend Elements and Poland’s Elemental Strategic Metals, has opened its first commercial-scale EV battery recycling facility in Zawiercie, Poland, on 19 September. The facility marks a significant step in advancing sustainability within the electric vehicle industry by disassembling, discharging, and shredding used EV batteries.

Expansion Plans in Europe

The facility, which is capable of processing 12,000 metric tonnes of used lithium-ion batteries annually, or roughly 28,000 batteries, produces black mass—a key material for manufacturing new batteries. AE Elemental plans to expand its operations by adding lithium extraction capabilities in 2024, with full-scale operations expected by 2026. This development will help European companies meet new EU regulations, which require a minimum amount of recycled content in batteries by 2030.

Additionally, AE Elemental has plans to construct another, larger facility in central Germany, with the capability to recycle 25,000 tonnes of EV batteries annually, or around 58,000 batteries. This expansion will further solidify AE Elemental’s role in Europe’s push towards a circular economy and sustainable energy solutions.

Ellwood Quality Steels Expands with New VIM Facility in Pennsylvania

Ellwood Quality Steels

Enhancing Specialty Steel Production for Aerospace and Defense

Ellwood Quality Steels (EQS), a division of the Ellwood Group, has announced plans to build a new 95,000 square foot vacuum induction melting (VIM) facility in New Castle, Pennsylvania. This development is set to expand EQS's production capabilities, specifically targeting the aerospace and defense industries, among others. The new facility will enhance their ability to produce high-quality specialty steels crucial for these sectors.

Strategic Development and Local Impact

Approved by the New Castle City Council on January 16, the construction of the VIM facility marks a significant expansion for EQS. It will replace an older structure and is strategically located less than half a mile from their current operations. This proximity promises to streamline processes and strengthen EQS's production efficiency.

Advancing Steel Production Technologies

At the heart of EQS's production are their advanced remelting processes, including vacuum arc remelting and electro slag remelting, with VIM as a foundational step. The products from these processes meet diverse industry needs, offering various grades of carbon, alloy, stainless, nickel, and copper steel. This expansion not only enhances EQS’s production capacity but also reinforces its commitment to delivering top-tier specialty steels.

Octillion Launches Lithium-Ion Battery Factory in Nevada to Support North American EV Market

Octillion Energy

New 1GWh Facility to Strengthen Supply Chain for Automotive and Industrial Energy Storage Applications

Octillion Energy, a China-based battery pack manufacturer, has opened a new battery system facility in Reno, Nevada, through its U.S. subsidiary, Octillion Power Systems. This move marks a strategic expansion into the North American market, aiming to meet the rising demand for lithium-ion battery systems across multiple sectors.

The Reno plant is expected to reach a production capacity of 1 gigawatt-hour (GWh) per year by 2025. The facility will produce high-density lithium-ion battery systems tailored for electric vehicles (EVs), off-highway equipment, marine applications, commercial machinery, and grid energy storage systems. This investment signals Octillion’s intent to localize supply chains amid growing demand and policy support for domestic battery production.

Global Capacity Expands with U.S. Investment

With the addition of the Nevada facility, Octillion Energy’s total global production capacity now stands at 25 GWh annually. The company is already a major supplier of battery packs to leading automakers including Wuling Motors in China and Tata Motors in India. Expanding into the U.S. aligns with Octillion’s strategy to serve global automotive and industrial clients more efficiently.

By establishing operations in Nevada, Octillion positions itself closer to key EV manufacturers and energy storage integrators. This will reduce shipping times, optimize logistics, and ensure better compliance with emerging North American battery sourcing regulations.

Neo Estonia Magnet Production Begins with First Traction Motor Samples

Neo Performance Materials

Neo Performance Materials has shipped its first samples under its new Neo Estonia magnet production facility. The company produced 18,000 sintered magnet units at its Narva plant, meeting electric vehicle (EV) traction motor standards. These magnets are now being tested by a key European customer for performance validation.

Strategic Facility Targets EV Supply Chain Localization

The Estonia plant has an initial capacity of 2,000 t/yr, with plans to scale to 5,000 t/yr. It marks a critical step in Europe's strategy to localize its EV supply chain. Backed by Export Development Canada and the EU’s Just Transition Fund, the $75 million facility is designed to reduce reliance on Asian magnet suppliers.

Commercial Production Expected by Late 2026

Neo expects to receive production part approval in early 2026. Full commercial production is set to begin later that year. A leading European EV traction motor manufacturer has already secured 35% of the plant’s first-phase output, confirming strong early demand for Neo Estonia magnet production.

The Metalnomist Commentary

Neo’s new Estonia facility demonstrates how permanent magnet supply chains are shifting westward. With EV demand growing, Neo Estonia magnet production could be a cornerstone of European critical materials independence.

Phoenix Tailings Raises $76M to Launch First US Standalone Rare Earth Metals Plant

Phoenix Tailings

Phoenix Tailings rare earth plant to meet US defense demand

US-based startup Phoenix Tailings has raised $76 million in Series B funding to build a rare earth metals plant in New Hampshire. The Exeter facility will be the first standalone US rare earth refinery capable of producing finished metals directly from diverse feedstocks. Once fully operational, the site will have a 500t/yr production capacity—matching the entire annual demand of the US defense sector.

Exeter facility to refine key rare earth elements for magnet manufacturers

Initial output from the Phoenix Tailings rare earth plant will start this summer at 200t/yr, ramping up to 500t/yr in time. The facility will produce neodymium-praseodymium, ferro-dysprosium, dysprosium, and terbium—all essential for permanent magnets used in defense, electric vehicles, and medical devices. It will process feedstocks from mines, coal ash, recycling streams, and other industrial byproducts, offering flexible sourcing.

Global investors back strategic US supply chain expansion

The oversubscribed $76 million Series B round was led by Envisioning Partners of Korea and included Escape Velocity, Builders Vision, Yamaha Motor Ventures, M Power, and Sumitomo’s Presidio Ventures. This strong international investor support highlights the growing urgency to establish domestic rare earth supply chains. Phoenix Tailings already runs a 40t/yr commercial facility and sources concentrates from allied nations.

The Metalnomist Commentary

The Phoenix Tailings rare earth plant represents a major step in reshoring critical mineral processing to the US. Its feedstock flexibility and defense-aligned production profile could reduce dependence on China’s REE dominance. This deal also shows that global capital is actively fueling secure and resilient rare earth value chains.

Zhejiang Zhongneng Expands Lithium Carbonate Output as China Strengthens Battery Material Supply Chain

Zhejiang Zhongneng

Phase one of major lithium project goes online, boosting domestic capacity and intensifying price pressure

China’s New Era Group Zhejiang Zhongneng Cycle Technology has begun production at its new lithium carbonate facility in Shaoxing, Zhejiang province. The site launched with 10,000 tonnes per year (t/yr) capacity in phase one, marking a key milestone in China’s battery materials expansion strategy.

The company originally announced the project in 2023, targeting total output of 30,000 t/yr of lithium carbonate and 150,000 t/yr of iron phosphate. When fully operational, the facility will significantly increase the country’s supply of key battery-grade materials.

Lithium supply surge expected to influence market prices

With the new line now operational, Zhejiang Zhongneng has raised its total lithium carbonate capacity from 8,000 t/yr to 18,000 t/yr. The firm has not yet shared a launch date for the project’s second phase. Market participants expect that increasing supplies—especially from China—could put downward pressure on lithium prices in the near term.

The facility uses feedstock primarily from recycled lithium-ion batteries and crude cobalt hydroxide, underlining China’s push for a circular economy in battery raw materials. The firm also produces cobalt sulphate, cobalt chloride, cobalt metal, and nickel sulphate.

Nickel and cobalt expansion complements lithium growth

In 2024, Zhejiang Zhongneng produced 10,000 tonnes of cobalt (metal equivalent) and now targets 12,000 tonnes for 2025. The company also plans to double nickel production from 3,000 tonnes to 6,000 tonnes this year, strengthening its multi-metal portfolio for battery supply chains.

Competition is also heating up abroad. On 12 February, Ganfeng Lithium launched a 20,000 t/yr lithium chloride facility in northern Argentina, part of its Mariana project. With both domestic and international supply set to grow, market sentiment will remain under pressure in 2025.