Global Lithium-Ion Battery Shipments Surge in 2024, Driven by EV and Energy Storage Demand

Lithium-Ion Battery

Global shipments of lithium-ion batteries experienced a significant surge in 2024, fueled by robust growth in both the electric vehicle (EV) and energy storage sectors, according to data from Chinese research institution EV Tank.  This surge is projected to continue its upward trajectory through 2030, marking a promising period for the lithium and battery metals markets.

EV Battery Market Driven by China, Despite Global Economic Headwinds

In 2024, global EV power battery shipments reached an impressive 1,051GWh, representing a 22% year-on-year increase.  This growth was primarily propelled by the continued strength of China's EV market.  Government incentives, such as old vehicle trade-in subsidies, provided a significant boost, offsetting a slowdown observed in European and US markets due to weakened economic conditions and rising inflation.  This highlights the critical role of government policy in supporting the EV sector.

Energy Storage Battery Shipments See Explosive Growth

The energy storage battery segment also witnessed remarkable expansion, with global shipments soaring by 65% to 370GWh.  This surge can be attributed to several factors, including China's government-led initiatives promoting energy storage systems for wind and solar power generation, declining manufacturing costs, and strong demand in the US, partly driven by the investment tax credit.  Furthermore, growing GWh-level orders from emerging markets like the UK, Saudi Arabia, and Australia contributed to the overall growth.

China Dominates Lithium-Ion Battery Production

Overall, global lithium-ion battery shipments increased by 29% year-on-year to 1,545GWh in 2024.  China played a dominant role, accounting for 79% of the total, with shipments reaching 1,215GWh, a substantial 37% increase.  The sustained demand growth within China, coupled with the country's substantial investments in overseas production capacity, has solidified its position as a leading force in the global lithium-ion battery market.

Sodium-Ion Battery Adoption Slower Than Expected

While lithium-ion batteries continue to dominate, the adoption of sodium-ion batteries has been slower than initially anticipated.  EV Tank estimates China's sodium-ion battery shipments to have more than doubled to 2GWh in 2024 from 0.7GWh in 2023. However, this figure falls short of earlier projections of 3GWh per year. The primary reason for this slower uptake is the higher manufacturing costs associated with sodium-ion batteries compared to ternary and lithium iron phosphate (LFP) lithium-ion batteries, as well as lead-acid batteries.  Currently, the average manufacturing cost for lithium-ion batteries stands at 0.50 yuan/Wh as of June 2024, significantly lower than the 0.60 yuan/Wh for sodium-ion batteries, according to EV Tank.  This cost differential presents a significant challenge for the widespread adoption of sodium-ion technology.

Future Outlook: Continued Growth Projected

EV Tank forecasts continued growth in global lithium-ion battery shipments, projecting a rise to 1,899GWh in 2025 and an even more significant jump to 5,127GWh by 2030.  This optimistic outlook underscores the increasing demand for batteries across various applications, driven by the ongoing transition to electric mobility and the growing importance of energy storage solutions. The declining lithium carbonate feedstock prices, caused by supply expansions, have helped reduce manufacturing costs for lithium-ion batteries, further supporting market growth.

US Tariffs on Chinese Lithium-Ion Batteries Set to Reach 82.4%

Chinese Lithium-Ion Batteries

New Tariff Policy to Significantly Impact the EV Battery Market

US President Donald Trump’s recent tariff policies will result in a substantial increase in the import tariff on batteries from China, with lithium-ion batteries facing a sharp rise to 82.4%. This change, effective April 5, 2025, is set to impact the importation of both electric vehicle (EV) and non-EV lithium-ion batteries, a move likely to affect various industries reliant on these energy storage systems.

The Impact of the 82.4% Tariff on Lithium-Ion Batteries

The new tariff structure applies a 34% reciprocal tariff on Chinese imports, pushing the total tariff on lithium-ion EV batteries to 82.4%. Non-EV batteries will face a lower, but still substantial, tariff of 64.9% until January 2026, when it will rise to 82.4%. The new rates will affect not only the electric vehicle industry but also energy storage and consumer electronics, which rely heavily on lithium-ion battery technology.

This sharp tariff increase is a part of broader trade policies aimed at countering China’s trade practices, and it will likely influence the cost of batteries across multiple sectors, leading to higher prices for consumers and manufacturers alike.

Additional Tariffs and the Section 301 Plan

The 82.4% tariff on lithium-ion batteries includes several layers of duties already in place. These include the existing 3.4% duty imposed by U.S. Customs and Border Protection, as well as two separate 10% tariffs on Chinese products implemented since Trump’s administration began. Moreover, current Section 301 tariffs on lithium-ion EV batteries are set at 25%, while non-EV batteries are taxed at 7.5%. These tariffs are part of the broader US strategy to address concerns about intellectual property and trade imbalances.

The Biden administration's plan to raise the Section 301 tariff on non-EV batteries to 25% by January 2026 reflects the long-term trade policy direction for China-US relations.

Ronbay Secures Major Sodium-Ion Battery Cathode Order, Strengthening Market Presence

Ningbo Ronbay

Expanding Sodium-Ion Battery Cathode Production

Ningbo Ronbay, a leading Chinese battery cathode active material (CAM) manufacturer, has secured a 3,000-tonne order for sodium-ion battery cathode material from an undisclosed client. The company announced the deal on January 20, reinforcing its position as a key player in China’s sodium-ion battery market.

Ronbay has been heavily investing in sodium-ion cathode materials, committing 3 billion yuan ($413 million) in September 2023 to construct a 50,000-tonne-per-year production complex, which is set to launch by 2026. This investment aligns with the growing global demand for sodium-ion batteries, expected to reach 23GWh in 2025.

China’s Sodium-Ion Battery Industry Gains Momentum

China’s leading battery manufacturers, including CATL, BYD, and Hithium, have accelerated their sodium-ion battery production. BYD, for example, started construction on a 30 GWh per year sodium-ion battery plant in Xuzhou, Jiangsu province, in early 2024. These expansions indicate increasing market confidence in sodium-ion battery technology, particularly for two-wheeled and three-wheeled vehicles, energy storage, and power applications.

The Chinese government has also actively promoted sodium-ion battery development as part of its 2021-2025 energy strategy, emphasizing the battery’s cost advantages, resource abundance, and environmental benefits compared to lithium-ion batteries. However, despite strong governmental backing, sodium-ion battery shipments in 2024 fell short of earlier expectations due to higher manufacturing costs compared to lithium-ion and lead-acid batteries, according to Chinese research institution EV Tank.

Ronbay’s Role in the Growing Sodium-Ion Market

With this latest order, Ronbay strengthens its leadership in sodium-ion cathode production, ensuring steady market growth despite industry challenges. The company’s large-scale investment and expanding production capacity position it to capitalize on rising sodium-ion battery adoption while supporting China's push for alternative battery technologies.

As demand for low-cost and sustainable energy storage solutions rises, sodium-ion batteries could play a crucial role in diversifying the global battery supply chain, particularly as a viable alternative to lithium-ion technology.

Germany Pushes Forward with Sodium-Ion Battery Development to Compete with China

Northvolt

Germany is spearheading the development of sodium-ion battery technology, positioning itself as a major player in the future of energy storage solutions. A consortium of 15 working groups, led by battery supplier Varta, has begun scaling up industrial sodium-ion battery technology as part of the Entise project. This project, which received €7.5 million ($8.31 million) from Germany's education and research ministry in May, marks Europe's latest effort to challenge China's dominance in battery manufacturing.

Germany's Strategic Move in Battery Technology

The Entise project is part of a broader European Union strategy to promote sodium-ion technology as a competitive alternative to lithium-ion batteries. The EU has invested heavily in this field, with initiatives such as the €925 million BATT4EU project launched in 2021 to accelerate battery research. Sodium-ion batteries, though still a niche technology, are gaining traction due to their cost-effectiveness and the use of more abundant materials like iron.

Meanwhile, companies like Sweden's Northvolt and Altris, along with U.S.-based Fluor, are pursuing sodium-ion battery development without public funding. However, weak demand for electric vehicles (EVs) and falling battery material prices have dampened revenues for battery makers, slowing down investment in next-generation battery technologies like sodium-ion.

Germany is projected to account for 21% of Europe's lithium-ion battery production capacity by 2030, outpacing other nations such as Hungary and France. This growth underscores the country’s role as a key player in the European battery supply chain. Despite these advancements, China remains the global leader, with 52% of lithium-ion production capacity projected by 2030.

Sodium-Ion's Niche Role in Global Battery Demand

Sodium-ion batteries are expected to play a limited role, accounting for less than 1% of global battery demand by 2030. However, their versatility means they could be used in a variety of applications, including grid-scale storage, transportation, consumer electronics, and even aerospace. Though they are bulkier than lithium-ion batteries, sodium-ion alternatives are cheaper to produce, using hard carbon from wood or biowaste for the anode and Prussian white (iron-based) for the cathode. This makes them a promising candidate for lower-cost energy storage solutions in the future.

Huachuang and Cornex Ink Major Lithium-Ion Battery Copper Foil Deal

Copper Foil

Huachuang New Material and Cornex have signed a strategic lithium-ion battery copper foil deal, securing 150,000t of supply over five years. The agreement, finalized on April 27, underlines the accelerating demand for copper foil in China's booming battery and new energy vehicle (NEV) industries. Huachuang, a subsidiary of Huayou Group, will fulfill the order from its three major production bases across China.

Copper Foil Supply Grows with NEV Expansion

China’s lithium-ion battery copper foil deal volume reflects its growing production capacity. The country’s total refined copper foil capacity hit 2.24mn t/yr in 2024, with 1.4mn t/yr dedicated to lithium-ion battery production. Rising NEV output and energy storage battery installations are driving this surge. From January to March 2025, NEV production reached 3.182mn units, a 50% increase year over year.

Cornex Ramps Up as Demand Accelerates

Cornex, though holding just 0.54% of China’s battery installations, is expanding its market role through this copper foil partnership. The deal positions the firm to meet future EV battery demand, where a single vehicle requires up to 38kg of copper foil. Meanwhile, China's total lithium-ion battery copper foil shipments are projected to reach 1.1mn t/yr in 2025.

The Metalnomist Commentary

This lithium-ion battery copper foil deal signals sustained growth in China’s battery supply chain. With copper foil emerging as a critical input, strategic partnerships like Huachuang and Cornex’s will shape regional and global battery material markets in 2025 and beyond.

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

Copper Foil

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

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

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

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

Ultra-Thin Foil Gains Momentum on Copper Cost Pressure

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

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

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

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

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

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

China Leads Supply as Competition Intensifies

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

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

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

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

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

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

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

The Metalnomist Commentary

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

China's Jiayuan to Secure Copper Cathode Supply from Swiss Firm IXM for Lithium-Ion Foil Production

Guangdong Jiayuan

Guangdong Jiayuan, a leading Chinese copper foil producer, has reached an agreement with Switzerland-based trading firm IXM to purchase a significant quantity of copper cathode feedstock. The deal, valued at approximately 5.066 billion yuan ($694 million), is set to support Jiayuan’s expansion of refined copper foil production, which is critical for lithium-ion batteries, copper-clad laminates, and printed circuit boards.

Details of the Copper Cathode Purchase Agreement

The agreement between Jiayuan and IXM will see the Chinese company secure 60,000 tons of copper cathode from IXM’s Geneva operations between December 2024 and November 2025. Additionally, Jiayuan will purchase 10,000 tons of cathode from IXM’s Shanghai branch during 2025. The price of the copper cathode will be determined through a negotiated pricing methodology, which will be finalized when both parties sign the contract.

Jiayuan, with a production capacity of 100,000 tons per year of refined copper foil, has seen steady growth in its production. In the first half of 2024, the company produced 24,000 tons of copper foil, marking a slight increase of 0.1% year-over-year. This agreement will ensure a steady supply of high-quality copper cathode to meet the growing demand for copper foil in key sectors such as electric vehicle (EV) batteries and electronic components.

China's Booming Copper Foil and NEV Industries

China’s refined copper foil production capacity reached 1.6 million tons per year in 2023, a 51% increase from the previous year. Notably, the production capacity for lithium-ion copper foil—used in batteries for electric vehicles—rose sharply by 68%, reaching 950,000 tons per year in 2023. With China’s new energy vehicle (NEV) market expanding rapidly, the demand for lithium-ion copper foil is expected to grow significantly. Industry experts predict that deliveries of lithium-ion copper foil in China will reach 1.1 million tons per year by 2025.

The Chinese NEV industry is experiencing robust growth, with production rising by 35% to 11.345 million units in the first 11 months of 2024. Sales of NEVs have also surged, increasing by 36% over the same period. As the NEV market continues to expand, the demand for copper, particularly copper foil for lithium-ion batteries, is expected to increase, further driving the need for stable copper supply agreements like the one between Jiayuan and IXM.

Copper Market Trends and Prices

On December 12, 2024, Metalnomist-assessed grade-A copper cathode prices, based on the London Metal Exchange (LME) official cash prices, were in the range of $40-60 per ton cif Shanghai. These prices remained flat compared to December 10, but they had dropped from the previous range of $45-60 per ton observed on December 5 due to a rebound in copper prices during the week. The fluctuating prices highlight the importance of securing stable supply contracts for manufacturers like Jiayuan as copper remains a critical commodity in the transition to a low-carbon economy.

US New Tariffs Could Disrupt China's Non-Exempt Metals Exports

China Tariffs

New tariffs on lithium, rare earth magnets, and more could affect China's metal exports to the US.

The United States has announced significant new tariffs on Chinese imports, with a notable focus on metals. While many non-ferrous metals and ferro-alloys have been exempted, some crucial exports from China, like lithium, rare earth magnets, and lithium-ion batteries, will face substantial increases in tariff rates. These changes are set to have a lasting impact on the trade between the US and China, especially in the energy storage and electric vehicle (EV) sectors.

High Tariffs on Lithium-Ion Batteries and Energy Storage

As of April 9, the US will implement an 82.4% tariff on electric vehicle (EV) power batteries and a 57.4% tariff on non-EV lithium-ion batteries from China. This substantial hike in tariffs will make Chinese-made batteries far more expensive and may eliminate the possibility of Chinese EV power batteries entering the US market. US consumers will likely absorb these costs, potentially leading to inflation in the US battery industry, especially in the energy storage sector.

China’s lithium-ion battery exports to the US had already been on the rise, with a 59% increase in exports during the first two months of the year. However, these new tariffs are expected to curb the growth of China's battery exports to the US and negatively affect lithium feedstock prices, which are currently at a four-year low.

Impact on Rare Earth Magnets

Rare earth magnets are another key area of concern, as these products were not exempted from the new tariffs. Despite some uncertainty about the exact tariff implementation, producers in China are anxious about the potential 54% tariff on rare earth magnets. China remains the dominant supplier of rare earth magnets globally, and while the US does have some alternatives, they are mostly focused on military applications with significantly higher prices. This makes it unlikely that the US can fully escape its dependence on China, especially for civilian applications.

China’s exports of rare earth magnets to the US in 2022 accounted for 12% of its total exports, and while tariffs could reduce this figure, China’s competitive pricing in the civil sector ensures its continued dominance in the global market.

Copper, Aluminium, and Hafnium: Other Affected Metals

While copper and aluminium are exempt from this latest round of tariffs, the copper industry remains on edge. US authorities are investigating the potential security implications of copper imports, and there’s speculation that a tariff may be imposed in the future. As for aluminium, Chinese exports are already subject to a steep 70% tariff, which is expected to discourage further aluminium exports to the US, pushing Chinese suppliers to seek alternative markets.

Hafnium, a critical metal used in aerospace applications, will also face a significant tariff hike, moving from 34% to 79%. This change could prompt US buyers to source hafnium from other regions, like Rotterdam, where the tariff is considerably lower.

Conclusion

The new US tariffs on Chinese metals exports are set to reshape the global metals market, particularly for lithium-ion batteries, rare earth magnets, and hafnium. While some sectors, like copper and aluminium, may have avoided immediate tariff hikes, long-term implications for the industry remain uncertain. The tariff increase on key metal exports from China to the US is expected to alter supply chains and increase costs for US consumers, especially in the EV and energy storage markets.

Sunstone Anode Output Soars in 2024 Amid Surging Lithium-Ion Battery Demand

China Shandong Sunstone

China’s Shandong Sunstone significantly increased its anode output and sales in 2024, driven by booming lithium-ion battery production. The Sunstone anode output rose in both traditional prebaked carbon anodes and synthetic graphite materials used in EV battery supply chains.

Prebaked Carbon Anode and Synthetic Material Output Surge

Sunstone’s production of anode materials jumped to 54,100 tonnes in 2024, marking an 83% increase from 29,600 tonnes in 2023. Corresponding sales rose 66% to 43,800 tonnes. This growth reflects rising demand for lithium-ion batteries, which rely on synthetic graphite and carbon-based anodes.

In addition, Sunstone produced 3.26 million tonnes of prebaked carbon anodes in 2024, a 10% increase from the previous year. Sales for these anodes also rose 11% to 3.32 million tonnes. The company sources over 3 million tonnes of petroleum coke annually to fuel this growing demand.

EV Battery Growth Accelerates Feedstock Consumption

The lithium-ion battery market continues to expand at a rapid pace. Global shipments reached 1,545.1 GWh in 2024, up 29% from 2023. China led the way with 1,214.6 GWh in shipments, marking a 37% year-on-year increase. As a result, firms like Sunstone are scaling up production capacity to keep pace with downstream EV and energy storage demands.

Petroleum coke remains a critical feedstock for anode manufacturing, tying Sunstone’s operations closely to oil refining supply chains. This strategic positioning enables the company to support China's dominant role in global battery exports.

The Metalnomist Commentary

Sunstone’s rapid output expansion reflects the deepening integration between China’s anode manufacturers and the global EV battery market. As demand for graphite-based materials surges, securing raw materials like petroleum coke will become increasingly strategic.

Dazhong Mining Expands Lithium Resources at Jiada Mine

Dazhong Mining

Lithium Resources at Jiada Mine Increase Significantly

Inner Mongolia Dazhong Mining has revised higher its lithium resource estimates at the Jiada spodumene mine in Sichuan. The mine’s reserves now total 1.4842mn t of lithium carbonate equivalent (LCE) with an average grade of 1.38pc lithium oxide. This upgrade raises Dazhong’s total lithium resources across its assets to 4.72mn t LCE. The company also operates the Jijiaoshan lithium mine in Hunan province, strengthening its domestic lithium footprint.

Dazhong’s Investment in Lithium Supply Chain Expansion

Dazhong is actively expanding into downstream lithium processing and battery production. The firm is building lithium carbonate and cathode active material production lines, alongside lithium-ion battery plants in Hunan, with an investment of 16bn yuan ($2.2bn). It also plans to develop a large-scale complex in Inner Mongolia with 40,000 t/yr lithium carbonate, 40,000 t/yr lithium salts, 250,000 t/yr lithium iron phosphate, 100,000 t/yr artificial graphite anode material, and 10 GWh/yr lithium-ion batteries. These projects highlight China’s ambition to dominate the entire lithium value chain.

Lithium Market Pressures Despite Long-Term Demand

The lithium market remains oversupplied, pushing prices to multi-year lows despite robust long-term demand forecasts. Chinese lithium carbonate prices are currently at Yn59,800-61,000/t ex-works, down 89pc from the November 2022 peak of Yn561,000-576,000/t. Rising supply from Chinese producers, including new capacity expansions like Dazhong’s, has weighed on spot prices. However, strong demand from electric vehicles, energy storage systems, and emerging battery technologies is expected to support recovery in the medium term.

The Metalnomist Commentary

Dazhong Mining’s resource upgrade and heavy downstream investments underline China’s strategy to secure leadership across the lithium supply chain. While today’s oversupply keeps prices depressed, structural demand from EVs and storage solutions suggests that projects like Jiada will be vital in balancing the global market in the next decade.

China’s Lithium-Ion Battery Output Jumps 24% in 2024 on EV and Storage Demand

China’s Lithium-Ion Battery

Lithium Carbonate Leads Growth Amid LFP Battery Expansion

China's lithium-ion battery production surged by 24% in 2024, driven by rising demand from electric vehicles (EVs) and battery energy storage systems (BESS). Output reached 1,170 GWh, up from 943 GWh in 2023, according to the Ministry of Industry and Information Technology (MIIT).

Segment-wise, EV battery production hit 826 GWh, while BESS batteries totaled 260 GWh, and consumer electronics added 84 GWh. The combined installed capacity for EVs and BESS rose to 645 GWh, marking a 48% year-on-year increase.

This significant expansion highlights China's continuing dominance in battery manufacturing and its strategic push into renewable energy infrastructure.

Lithium Carbonate Sees Strongest Production Growth

Battery-grade lithium carbonate production reached 670,000 metric tonnes in 2024, reflecting a 45% increase from 2023. Lithium hydroxide output grew to 360,000 tonnes, a 26% gain year-on-year, according to MIIT data.

Lithium carbonate’s growth outpaced lithium hydroxide due to increased adoption of Lithium Iron Phosphate (LFP) batteries. LFP technology, now widely used in EVs and BESS, primarily relies on lithium carbonate, rather than lithium hydroxide.

This shift reflects changing chemistry preferences among automakers and grid-scale storage developers, prioritizing cost, safety, and cycle life. As battery technologies evolve, the metals supply chain must adapt to meet diversified material demands.

For more updates on battery metals, energy storage trends, and lithium market forecasts, follow The Metalnomist.

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.

Global Energy Storage Market Expands as China Drives Record Growth

China Energy Storage

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

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

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

China Leads Storage Deployment as VRFB Projects Gain Share

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

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

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

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

Lithium Demand Rises as Storage Becomes a Core Battery Market

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

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

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

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

The Metalnomist Commentary

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

US Targets 1 Million Tons of Lithium Production by 2035, Says DoE

Department of Energy (DOE)

The US Department of Energy (DoE) projects that the country could produce 1 million metric tons (t) of battery-grade lithium by 2035. This output would be sufficient to meet domestic demand while allowing for exports to trading partners.

Scaling Up Domestic Lithium Production

The DoE's Loan Programs Office Director, Jigar Shah, emphasized the need to expand lithium extraction, processing, and recycling to support the growing lithium-ion battery industry. He noted that diverse lithium resources across multiple US regions could be unlocked using advanced technology and infrastructure investments.

The US plans to increase lithium supply through three key sources:

• Spodumene deposits in Charlotte, North Carolina, expected to produce 100,000-150,000 t/yr of lithium carbonate equivalent (LCE).
• Albemarle’s Kings Mountain mine is one of the most advanced spodumene projects, projected to yield 50,000 t/yr of LCE.

• Brine and clay resources in Nevada, California's Imperial Valley, and the Arkansas Smackover Formation, estimated to contribute 500,000-1 million t/yr of LCE.
• These resources have lower lithium concentrations than South American reserves, but direct lithium extraction (DLE) technology can help process them efficiently.
• Recycling of end-of-life EV batteries, which could reduce the need for new lithium extraction, supplying 50,000-100,000 t/yr of LCE by 2035.

Government Investment in Lithium Infrastructure

The Biden administration has significantly increased investments in US lithium production to accelerate the clean energy transition.

In September 2024, the DoE selected 25 projects across 14 states, committing over $3 billion to expand domestic lithium supply. Additionally, the Thacker Pass lithium project in Nevada, operated by Lithium Americas, received a $2.3 billion loan to build a 40,000 t/yr lithium carbonate facility.

In December 2024, the DoE also allocated $17 million to 14 critical mineral technology projects, reinforcing efforts to scale up lithium production.

Lithium’s Role in the US Energy Transition

According to the US Geological Survey, the US has 1.1 million tons of lithium reserves, compared to a global total of 28 million tons.

Shah highlighted that advancements in direct lithium extraction (DLE) could rapidly unlock large lithium resources, much like hydraulic fracturing transformed the oil and gas industry.

With global lithium demand rising, the US is positioning itself as a key player in the lithium supply chain, reducing dependence on foreign imports and strengthening the clean energy sector.

Hubei STR anode recycling plant will start in March 2026 as China’s battery scrap accelerates

Lithium-Ion Battery

Hubei STR will start the Hubei STR anode recycling plant in March 2026. The project targets 50,000 t/yr of recycled anode materials for lithium-ion batteries. The company began site construction in January 2022. As a result, the facility enters the market as battery recycling volumes rise sharply.

Battery scrap volumes will surge as China’s first NEV wave reaches end-of-life. Lithium-ion batteries usually retire when capacity falls to 80%. The US Advanced Battery Consortium links this threshold to an 8–12 year service life. Therefore, post-2025 retirements should expand the available feedstock for anode material recycling.

China’s EV scale is turning recycling into a supply chain priority

China’s EV scale is making the Hubei STR anode recycling plant strategically timed. China pushed NEV output above one million units in 2018. NEVs reached 40.9% of total auto sales in 2024. Meanwhile, October NEV sales hit 1.72mn units and took 51.6% market share.

Recycling capacity must follow that growth curve. China Association of Automobile Manufacturers forecasts NEV sales near 16mn units in 2025, up from 12.86mn in 2024. China Automotive Engineering Society estimates retired power batteries exceeded 580,000t in 2023. It expects retirements to reach 6mn t by 2030. Consequently, anode recycling becomes a cost, ESG, and security lever for battery makers.

Graphite recovery and copper foil separation define the value capture

Graphite recovery drives much of the anode recycling economics. The lithium-ion battery recycling process starts with dismantling and material separation. Recyclers can recover plastics and the diaphragm from anode-side components. They can also extract aluminium foil from cathode materials.

Graphite recovery then becomes the key upgrade step. Recyclers separate graphite from copper foil in spent anodes. They purify the graphite and sell it back into the battery materials chain. Therefore, the Hubei STR anode recycling plant can support a more circular anode supply. It can also reduce exposure to price swings in battery-grade inputs.

The Metalnomist Commentary

China’s recycling race is shifting from metals recovery to materials performance. Therefore, graphite purity and consistent output will decide who wins long-term contracts. However, recyclers must prove traceability and ESG compliance to unlock premium pricing.

Long-duration Energy Storage Set to Surpass Lithium-ion Batteries

Despite many long-duration energy storage (LDES) technologies being in their infancy and more expensive than lithium-ion batteries, some are already achieving or are expected to achieve lower costs for longer durations, according to BloombergNEF.

From pv magazine ESS News site

The interest in long-duration energy storage (LDES) is growing swiftly as the demand for reliable clean energy capacity increases. Since most LDES technologies are still developing, cost information is not widely available. BloombergNEF aims to bring clarity with its first LDES cost survey.

In their report, BNEF analyzed seven LDES technology groups and 20 technology types, discovering that the most affordable technologies are already offering cheaper storage solutions than lithium-ion batteries for durations exceeding eight hours.

Thermal energy storage and compressed air storage reported average capital expenditures (capex) of $232/kWh and $293/kWh, respectively. In contrast, lithium-ion systems had an average capex of $304/kWh for four-hour duration systems in 2023, which are generally used for shorter-term storage.

The factors influencing LDES capex include storage duration, project size, and location. Gravity energy storage systems, which lift weights during charging and release them in a controlled manner during discharging, have the highest average capex at $643/kWh.

The pace of cost reduction for LDES technologies will largely depend on the scale of deployment and the development of market pathways in key regions, according to BNEF.

Stardust Lithium Chloride Feedstock Agreement Supports Oklahoma Refinery Plan

Stardust Power

Stardust lithium chloride feedstock agreement has strengthened the company’s plan to supply its Muskogee, Oklahoma refinery with domestic lithium brine material for battery-grade lithium carbonate production. The deal covers lithium chloride feedstock from a California brine project, with initial deliveries scheduled for the first half of 2028.

The agreement could provide up to 15,000 t/yr of lithium carbonate equivalent. Stardust Power has not yet disclosed the specific project name or location, saying those details will follow after a definitive agreement is signed.

Stardust lithium chloride feedstock agreement is strategically important because the company’s Muskogee refinery is planned for up to 50,000 t/yr of LCE capacity. Securing feedstock is one of the most important requirements for any lithium conversion project, especially as the US tries to build more domestic battery materials capacity.

California Brine Supply Adds Domestic Feedstock Option

The feedstock will come from a lithium brine project in California, making the agreement part of a wider US push to connect brine resources with domestic refining. California’s Salton Sea region has become one of the most closely watched lithium extraction zones in North America.

Companies active in the region include Berkshire Hathaway Energy Renewables, EnergySource and Controlled Thermal Resources. Based on expected integration and potential volume, Controlled Thermal Resources is considered the most likely supplier.

This matters because lithium chloride from brine projects can become an important input for downstream lithium carbonate production. If direct lithium extraction and brine processing projects scale successfully, they could reduce US dependence on imported lithium chemicals.

The timing remains important. Deliveries are not expected until 2028, which means Stardust still needs to manage project development, financing, permitting, customer qualification and feedstock conversion before commercial output can be secured.

Muskogee Refinery Builds a Broader Lithium Supply Network

Stardust’s Muskogee refinery is planned to produce battery-grade lithium carbonate, a key material for cathode production and lithium-ion batteries. The project is designed for up to 50,000 t/yr of LCE capacity, making feedstock diversification essential.

The California agreement adds to Stardust’s existing feedstock network. Other partners include Prairie Lithium in Canada and Mandrake Resources in Utah, giving the company multiple potential raw material streams.

The company also has a non-binding offtake agreement with Sumitomo for up to 25,000 t/yr of LCE over 10 years. That agreement gives Stardust a potential downstream sales channel, but commercial execution will depend on turning feedstock agreements into qualified battery-grade production.

For the US lithium supply chain, the project reflects a broader challenge. Domestic refinery announcements are increasing, but long-term success depends on reliable brine supply, conversion technology, customer qualification and competitive production costs.

The Metalnomist Commentary

Stardust’s agreement shows that lithium refining projects are only as strong as their feedstock base. The Muskogee refinery could become a meaningful US lithium carbonate platform, but its real test will be converting domestic brine supply into bankable, battery-grade output.

China's Lithium Prices Fall to 4-Year Low Amid Oversupply and Trade Tensions

China's Lithium

Oversupply and weaker export demand push lithium carbonate prices to multi-year lows in China

Chinese Lithium Carbonate Prices Plunge on Oversupply

Chinese lithium carbonate prices have dropped to a four-year low due to rising supply and weaker global demand. Prices started declining after CATL resumed its Jianxiawo lithium lepidolite concentrate operation in early February 2025. This facility contributes 6% of China’s total LCE capacity, but the mine itself remains offline as CATL sources ore locally.

At the same time, China’s lithium carbonate imports surged by 48% year-on-year to 32,450 tonnes in January–February 2025. Chile accounted for 62% of these imports, followed by Argentina at 34% and South Korea at 3.2%. Chilean producers like SQM and US-based Albemarle are ramping up output, further intensifying supply pressure.

Demand Weakens Under Policy Shifts and Tariffs

Demand for lithium has softened after China revoked energy storage installation mandates for new energy projects in February 2025. This particularly affected lithium-iron-phosphate batteries, which rely heavily on lithium carbonate. Additionally, US import tariffs on Chinese lithium-ion batteries will hit 48.4% by January 2026, impacting export potential.

Despite a 59% year-on-year surge in lithium-ion battery exports in early 2025, much of it was front-loaded. Exporters rushed to ship products before anticipated US tariff hikes, with 26% of shipments headed to the US. However, market participants believe Chinese battery exports may decline sharply in the coming months.

Market Outlook and Price Forecast

As global supply continues to rise and demand remains subdued, prices are expected to dip further. Some analysts predict prices may hover around Yn70,000/tonne ex-works, unless a major inventory restock occurs. Producers are closely monitoring both tariff developments and restocking trends among downstream battery manufacturers.

The Metalnomist Commentary

China’s lithium market is entering a new phase where global trade dynamics now rival domestic supply in pricing power. With inventory levels rising and policy uncertainty in key export markets, stakeholders must recalibrate demand forecasts and sourcing strategies.

Altmin CBL Lithium Refinery Expansion Strengthens Brazil’s Battery Materials Ambition

Altmin

Altmin CBL lithium refinery expansion marks an important step in Brazil lithium refining. Indian cathode producer Altmin will invest $40mn in Brazilian lithium company CBL to expand its Divisa Alegre refinery. The project will raise capacity to 6,000 t/yr from 2,000 t/yr. As a result, Altmin CBL lithium refinery expansion gives Brazil a stronger position in battery materials processing.

This investment matters because the product mix will change sharply toward battery use. Most of the current output is technical grade lithium carbonate. After the upgrade, 5,000 t/yr will be battery-grade lithium carbonate. Therefore, Brazil lithium refining is moving closer to higher-value chemical production.

The commercial structure is also significant. Altmin will receive a 33pc stake in CBL’s refinery through the investment. It also secured a 15-year offtake agreement for all battery-grade output from the upgraded plant. Consequently, Altmin CBL lithium refinery expansion links refining capacity directly to long-term cathode demand.

Brazil Lithium Refining Gains a Stronger Industrial Model

Brazil lithium refining gains more credibility because this is not a brand-new relationship. Altmin has been a client of CBL since 2019. The Indian firm already uses CBL lithium chemicals to produce lithium-ion battery cathodes. As a result, the expansion builds on an existing industrial partnership rather than a speculative deal.

The refinery will still keep a domestic role after the upgrade. Around 1,000 t/yr of output, including lithium hydroxide, will remain in Brazil. That material will continue serving pharmaceuticals, lubricants, ceramics, and glass. Therefore, the project supports both export-oriented battery supply and local industrial demand.

CBL also brings long operating history to the deal. Its refinery has been operating since 1991. That gives the company a more established refining base than many newer lithium projects. Meanwhile, the upgrade shows how older industrial assets can be repositioned for the battery economy.

Brazil Critical Minerals Processing Moves Further Up the Value Chain

Brazil critical minerals processing is the wider story behind this investment. CBL’s core business remains spodumene extraction at 50,000 t/yr, with an expansion under way to 115,000 t/yr. That means the company is strengthening both upstream mining and downstream refining. As a result, Altmin CBL lithium refinery expansion supports a more complete lithium value chain.

This matters for Brazil’s national industrial ambition. The country wants to become more than a raw materials exporter. It wants more local processing, more chemical upgrading, and stronger downstream industry. Therefore, Brazil lithium refining is becoming a strategic policy goal as much as a mining opportunity.

The deal also shows that foreign partners are willing to support that direction when supply and refining can be linked clearly. Altmin gets secure battery-grade lithium carbonate. Brazil gains more refining scale and a stronger role in global battery materials. Consequently, Brazil critical minerals processing is becoming more investable and more commercially relevant.

The Metalnomist Commentary

This deal matters because it moves Brazil closer to real battery chemicals production, not just spodumene supply. The most important point is not the $40mn alone. It is that Brazil is starting to attract capital tied to long-term downstream offtake, which is exactly how a stronger lithium value chain gets built.

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

Pure Lithium Corporation

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

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

Disruptive Battery Chemistry Supports Strategic US Objectives

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

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

EXIM Financing to Boost US Battery Supply Chain Resilience

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

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

The Metalnomist Commentary

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