Eternal Nickel LME listing reshapes Indonesian nickel trade

Eternal Nickel

The Eternal Nickel LME listing marks a new phase for Indonesian nickel as PTENICO cathodes move toward global benchmark status and add fresh liquidity to a market already facing surplus pressure. Eternal Nickel, a subsidiary of China’s Tsingshan Group, has applied for the Eternal Nickel LME listing with full-plate nickel cathodes produced at Weda Bay in North Maluku, where nameplate capacity reaches 50,000 t/yr. As a result, the Eternal Nickel LME listing would cement Indonesia’s role in refined nickel, not just intermediate products, while also deepening the pool of deliverable brands for price discovery on the London Metal Exchange.

Eternal Nickel LME listing adds to Asian LME nickel capacity

The proposed Eternal Nickel LME listing comes only months after the first Indonesian brand, DX-zwdx, secured LME approval in 2024, lifting new Asian registered capacity to 232,600 t since mid-2023. PTENICO cathodes would be the second Indonesian nickel brand listed, reinforcing the rapid shift of refined nickel capacity toward Indonesia as high-pressure acid leach and conversion projects mature. Meanwhile, surplus nickel has been flowing into LME warehouses because many producers find LME delivery the most efficient route to immediate liquidity. LME nickel stocks climbed to 224,700 t in September from 162,336 t in January, with Chinese-origin material surging to 152,454 t from 81,564 t. Therefore, any additional Indonesian cathode tonnage registered on the LME is likely to weigh further on prices, even if it improves tradability and hedging options for consumers.

Surplus stocks pressure prices as more Indonesian cathodes line up

The Eternal Nickel LME listing would arrive in a market where the official three-month LME nickel price has stayed rangebound around $15,000–16,000/t, averaging just $15,432/t in 2024. However, producers continue to commission new cathode capacity and are actively preparing LME applications, treating warehouses as an outlet for surplus production rather than cutting supply. Indonesian producer Nickel Industries Limited plans to add nickel cathode output, while major producer QMB is upgrading its technology to produce LME-grade cathodes, both from plants in Central Sulawesi. As these projects advance, more Indonesian cathode brands are expected to seek registration, reinforcing the structural oversupply narrative and keeping spot prices under pressure, even as stainless steel and battery sectors look for cost advantages.

The Metalnomist Commentary

The Eternal Nickel LME listing underlines how Indonesia is moving rapidly up the nickel value chain from ore and intermediates to globally deliverable cathode brands. For traders and hedgers, more Indonesian brands enhance liquidity and flexibility, but they also lock in a heavier overhang of exchange stocks that can cap rallies. Strategically, the trend raises important questions for non-Indonesian producers: competing on cost alone against the Weda Bay and Sulawesi hubs will be tough, making product differentiation, specialty alloys and long-term customer partnerships more critical than ever.

SHFE Indonesian Nickel Cathode Brands Strengthen Indonesia’s Class I Nickel Role

The Shanghai Futures Exchange

SHFE Indonesian nickel cathode brands have gained a major credibility boost after the Shanghai Futures Exchange approved two Indonesian-produced nickel cathode brands for delivery against SHFE contracts. The approvals cover PTENICO from Eternal Nickel Industry and DX zwdx from CNGR Dingxing New Energy.

The approvals mark an important step in Indonesia’s move from nickel ore and intermediate products toward exchange-deliverable Class I nickel. Indonesia has already become the world’s dominant nickel processing hub, but exchange approval gives its refined metal greater financial-market recognition.

SHFE Indonesian nickel cathode brands also reinforce the role of Chinese-backed industrial parks in building Indonesia’s downstream nickel value chain. Both approved producers are linked to major Chinese groups with strong positions in stainless steel or battery materials.

The development matters because exchange-deliverable nickel sits at the intersection of physical supply, futures market liquidity and industrial procurement. Approval by SHFE gives the brands wider acceptance among Chinese market participants and strengthens Indonesia’s role in Class I nickel trade.

Tsingshan and CNGR Extend Indonesia’s Refined Nickel Platform

Eternal Nickel Industry’s PTENICO brand was approved by SHFE after previously being listed on the London Metal Exchange on 16 December 2025. The company is a subsidiary of Chinese stainless steel producer Tsingshan Holding Group.

The plant is located in the Weda Bay Industrial Park in Halmahera, North Maluku. It uses an electrolytic process and has 50,000 t/yr of nickel cathode capacity, with nickel content of 99.96%.

Tsingshan’s involvement is strategically important. The group transformed global nickel markets through Indonesian nickel pig iron and stainless steel expansion, and it is now extending that influence into refined Class I nickel.

CNGR Dingxing New Energy’s DX zwdx brand was also approved by SHFE. The plant is located at the Indonesia Morowali Industrial Park and also uses an electrolytic process. It has 50,000 t/yr of nickel cathode capacity, with nickel content of 99.96%.

CNGR Dingxing is a subsidiary of CNGR, a major Chinese lithium-ion battery cathode active material precursor producer. This gives the brand a direct connection to battery materials supply chains, not only stainless steel demand.

The LME accepted CNGR Dingxing’s Indonesian nickel cathode brand in May 2024. It also approved cobalt cathode produced by CNGR in Qinzhou, Guangxi, in March, showing the company’s expanding exchange-approved metals footprint.

Together, PTENICO and DX zwdx represent 100,000 t/yr of Indonesian nickel cathode capacity. Their SHFE approval gives Indonesia a stronger position in futures-linked refined nickel supply.

Exchange Approval Changes Nickel Market Positioning

The two brands are the first Indonesian-produced nickel cathodes approved by SHFE for delivery. That is significant because Indonesia’s nickel rise was initially built around ore, nickel pig iron, ferronickel, matte and mixed hydroxide precipitate.

Exchange-deliverable cathode is a different market category. It requires tighter quality control, brand recognition and acceptance by financial and physical market users.

SHFE has approved Chinese-produced nickel cathode brands totalling 121,000 t since 2024. Adding Indonesian brands expands the pool of deliverable material and shows how Indonesia is being integrated into China’s nickel pricing and delivery system.

This could gradually influence nickel market structure. More deliverable Indonesian metal may improve flexibility for Chinese buyers, increase acceptable supply for futures settlement and strengthen the link between Indonesian production and Chinese exchange pricing.

The approvals also come during a period of Class I nickel oversupply. LME and SHFE inventories have risen as new refined nickel capacity has entered the market faster than demand growth from batteries and alloys.

Against that backdrop, brand approval can become a competitive advantage. Producers with exchange-deliverable status may have better access to financing, trade channels and customers that require recognised specifications.

For Indonesia, the approval supports a broader industrial policy objective. The country wants to capture more value from its nickel resources by moving beyond raw ore and intermediate exports into higher-value metal and battery materials.

For China, the approvals deepen supply-chain integration with Indonesian assets. Chinese companies are not only investing in Indonesian mines and smelters; they are building exchange-recognised refined metal capacity that can serve Chinese industrial and financial markets.

The Metalnomist Commentary

SHFE approval of Indonesian nickel cathode brands confirms that Indonesia is moving deeper into Class I nickel, not only bulk stainless and battery intermediates. The strategic issue now is whether this new exchange-deliverable capacity strengthens market liquidity or adds further pressure to an already oversupplied refined nickel market.

LME Harjavalta Nickel Suspension Puts Class 1 Nickel Warrants Under Review

Harjavalta Nickel

LME Harjavalta nickel suspension will stop new warranting of Norilsk Nickel Harjavalta’s primary nickel briquettes and cathodes from 19 June. The London Metal Exchange said no further deliveries of these Finnish-produced products will be accepted for warranting after that date.

The LME Harjavalta nickel suspension does not remove existing warranted metal from the system. Material already on warrant can continue to circulate, but once cancelled after the deadline, it will not be eligible for re-warranting.

The move matters because Harjavalta is a key European source of class 1 nickel. Its cathodes and briquettes are used in stainless steel, battery materials, alloy production, and other high-purity nickel applications.

Administrative Review Appears More Likely Than Supply Disruption

Market participants view the LME Harjavalta nickel suspension as likely procedural rather than a sign of quality or production problems. The three-month lead time suggests the issue may relate to documentation, compliance, or brand listing requirements.

The LME regularly reviews listed brands to ensure producers meet exchange rules. These rules include responsible sourcing standards and documentation obligations, which have become more important across metals markets.

That interpretation limits the immediate market impact. Traders do not expect a major disruption to European nickel availability or premiums, especially because other high-grade nickel brands remain available within the broader class 1 supply pool.

Class 1 Nickel Flexibility Reduces Near-Term Market Risk

Harjavalta material remains important, but the European market has some flexibility through substitution between high-grade forms such as cathodes, briquettes, and rounds. This flexibility should reduce the short-term impact of the warranting suspension.

The spot market may also see limited direct disruption because Harjavalta has reportedly committed most near-term capacity to term contracts. That means spot availability was already constrained before the LME announcement.

Still, the suspension highlights the rising importance of exchange compliance in critical metal supply chains. For nickel buyers, warrant eligibility, responsible sourcing documentation, and brand approval status are becoming part of supply risk management.

The Metalnomist Commentary

The LME Harjavalta nickel suspension is unlikely to trigger an immediate supply shock, but it shows how administrative compliance can affect market liquidity. In class 1 nickel, exchange status now matters almost as much as physical availability.

Weiming Launches Nickel Cathode Production in Zhejiang Province

Weiming

Chinese Manufacturer Aims to Boost Nickel Output with New Facility

Weiming, a major Chinese environmental protection equipment manufacturer, has started producing nickel cathodes at its subsidiary, Weiming Shengqing, located in Wenzhou, Zhejiang province. This development marks a significant milestone as the company ramps up its nickel production capacity to meet growing global demand for the metal.

The first phase of the project is focused on a 25,000-tonne-per-year (t/yr) production capacity for nickel cathodes. Weiming is progressing well with this phase, and it expects to complete the second phase—also adding another 25,000 t/yr—by the first half of 2025. Once fully operational, the plant will contribute significantly to China's nickel supply, which is essential for battery production and other industrial applications.

Sourcing Raw Materials for Cathode Production

Weiming uses nickel matte and mixed-hydroxide-precipitate (MHP) as the primary feedstocks for its nickel cathode production. In August 2024, the company received its first shipment of nickel matte from Indonesia, amounting to 1,429 tons. This shipment marks a key milestone in Weiming’s strategy to secure reliable and sustainable sources of raw materials for its operations.

The company also operates the Jiaman high nickel matte project in Indonesia in partnership with Merit International Capital. This project, with a nameplate capacity of 40,000 tons per year of nickel metal equivalent, is poised to further support Weiming’s nickel supply chain. Located in the Weda Bay region of North Maluku Province, the project features four production lines, each capable of producing 10,000 tons of nickel metal equivalent annually.

Future Outlook for Weiming's Nickel Production

As the demand for nickel continues to rise, particularly in the electric vehicle (EV) and battery sectors, Weiming's expansion into nickel cathode production strengthens its position in the global metals market. The company’s strategic investments in Indonesia, alongside its domestic production capacity, will help ensure a steady supply of nickel to meet both local and international demand.

With the second phase of the production facility expected to complete by mid-2025, Weiming is set to play an increasingly pivotal role in global nickel production. This expansion reflects broader trends in the metals industry, where companies are focusing on securing sustainable and high-quality feedstocks to support the green energy transition.

t

Lygend Nickel Capacity Reaches 400,000 t/yr at Obi Island

Lygend

Lygend nickel capacity in Indonesia has increased to around 400,000 t/yr in nickel metal equivalent following the commissioning of all phase 2 rotary kiln electric furnace lines at its Obi Island complex.

Lygend nickel capacity now spans nickel pig iron, mixed hydroxide precipitate and nickel sulphate, giving the Chinese producer exposure to both stainless steel and battery supply chains. The latest expansion highlights Lygend's ability to complete large projects despite weaker margins and tighter Indonesian nickel policies.

Lygend nickel capacity growth comes from 12 new RKEF lines commissioned in May. The phase 2 facilities add 185,000 t/yr of nameplate nickel metal equivalent capacity for NPI production in North Maluku.

The expansion strengthens Obi Island's position as one of Indonesia's major integrated nickel production centres and adds more supply to an already heavily concentrated global nickel market.

Obi Island Expansion Deepens Lygend's Integrated Nickel Position

The phase 2 project significantly expands Lygend's pyrometallurgical capacity. NPI produced through RKEF technology remains a major feedstock for stainless steel production, particularly across Asia.

Lygend also produces MHP and nickel sulphate, extending its position beyond stainless steel into battery materials. MHP can be refined into nickel sulphate for lithium-ion battery cathodes, giving the company exposure to multiple downstream markets.

This integrated structure can provide greater flexibility during weak nickel cycles. Producers focused entirely on one product face greater exposure to changes in stainless steel or battery demand.

Obi Island also gives Lygend scale advantages. Concentrating mining, smelting and downstream processing in one industrial location can reduce logistics costs and improve feedstock integration.

The company's ability to complete phase 2 is notable because other Indonesian nickel projects have faced delays, financing problems and weak economics. Higher operating costs and lower nickel prices have made new capacity increasingly difficult to justify.

Indonesian Policy Raises the Bar for New Nickel Projects

Lygend's expansion comes as Indonesia increases government control over nickel production, pricing and exports. Reduced RKAB mining quotas are tightening access to ore and increasing competition for feedstock.

Adjustments to the HPM pricing formula have also raised raw material costs for processors. At the same time, higher royalty rates are putting additional pressure on smelter margins.

These changes are affecting project development. Several NPI and HPAL projects have been delayed, slowed or cancelled as companies reassess returns under weaker market conditions.

The contrast with Lygend is important. Large integrated producers with existing infrastructure, financing and downstream capacity are better positioned to absorb policy changes than smaller standalone operators.

Indonesia's nickel industry may therefore enter a consolidation phase. Future growth could become increasingly concentrated among large producers capable of controlling ore supply, processing costs and multiple product routes.

For the global nickel market, Lygend's new capacity adds further supply pressure. But Indonesia's tighter policy framework could limit how quickly other projects follow.

The Metalnomist Commentary

Lygend's Obi expansion shows that scale and integration are becoming decisive in Indonesia's nickel industry. As margins tighten and Jakarta strengthens control over ore and exports, smaller projects may struggle while established producers continue to consolidate supply.

European Nickel Premiums Hold Steady Amid Soft Physical Demand

Nickel Manufacturing

Traders Report Limited Interest and Assessing Impact of US Tariffs

European nickel premiums remained stable over the past week, with traders reporting subdued physical demand. Only near-term requirements are currently being pursued, as the market continues to evaluate the effects of US tariffs.

Soft Demand and Limited Trading Activity

Physical nickel demand has remained weak, with many buyers postponing purchases due to ongoing uncertainty about the impact of US tariffs. As a result, the number of deals and offers has remained within the range of previous assessments. Nickel premiums for non-Russian cathodes and briquettes have experienced slight downward pressure, reflecting limited buyer activity and increased competition among large European trading groups. The overall supply of nickel remains ample, which further dampens price movements.

Nickel Market Responds to Tariff Uncertainty and Supply Concerns

Benchmark nickel on the London Metal Exchange (LME) saw a 2% increase this week, reaching $15,735 per tonne. This rise is attributed to short covering, uncertainty surrounding US tariffs, and reports of a potential reduction in ore supply from the Philippines. Despite the flat premiums, there are signs of upward movement in the broader nickel market due to these factors.

On-warrant nickel stocks showed a slight decrease of 0.12% this week, with a total of 161,958 tonnes in inventory. Nickel stocks in Rotterdam increased by 300 tonnes, reaching 31,902 tonnes, with significant portions consisting of bagged briquettes, pellets, and full-plate cathodes. Nickel spreads from nearby cash to three-month contracts were in contango at $226 per tonne, slightly up from $218 per tonne last week.

US Nickel Market Flat Amidst Excess Inventories

US Nickel

The US spot premiums for refined nickel have remained stagnant this week due to sluggish demand and abundant consumer inventories.  This market flatness reflects a cautious approach from buyers who are well-stocked for the near future.

Premium Assessments and Demand Outlook

Nickel premiums for full truckload melting grade, 4x4-inch cathodes, were assessed at 60-65¢/lb, while premiums for briquettes were assessed at 30-35¢/lb. Both remained unchanged from the previous week.  Many consumers are currently holding excess inventories, which is limiting nickel demand forecasts through the first quarter of the year.  Market sources suggest that most buyers are unlikely to actively participate in the spot market for additional nickel until early summer.  This points to a period of potentially subdued activity in the US nickel market.

Global Supply Dynamics and Price Outlook

Despite the current inventory surplus, potential supply-side changes could impact the market later in the year.  Indonesia, the world's largest nickel producer, is reportedly considering cutting production by up to 35%, according to sources.  Such a significant reduction could strain global nickel supply and potentially help nickel prices recover after they reached a four-year low in December.  However, overall, nickel is still expected to be in surplus this year. 

Global nickel stocks in London Metal Exchange (LME) warehouses totaled 164,310 metric tonnes (t), up 1.1% from 162,474t the previous week. Inventories have increased significantly in 2024, rising by 150% or 96,378t.  

The LME nickel daily cash month-to-date average for January is $15,055/t ($6.83/lb), compared to the full-month December average of $15,471/t ($7.02/lb). The official three-month LME nickel settled at $15,450/t on Thursday, up 1% from $15,295/t a week ago on January 2nd.  These price fluctuations and inventory levels will continue to be closely watched by market participants.

Nornickel Raises 2024 Production Guidance After Successful Repair Work

Nornickel

Russian multi-metals mining giant, Norilsk Nickel (Nornickel), has raised its production forecast for 2024, including its key metals — nickel, copper, platinum, and palladium. This increase comes after Nornickel completed scheduled capital repair work ahead of time in the third quarter, boosting its operational efficiency.

The revised forecast shows Nornickel plans to produce between 196,000-204,000 tons of nickel, 337,000-357,000 tons of copper, 2.624 million to 2.724 million ounces of palladium, and 639,000 to 664,000 ounces of platinum in 2024. These numbers surpass the earlier projections made at the start of the year, which had set the target ranges at 184,000-194,000 tons for nickel, 334,000-354,000 tons for copper, 2.296 million-2.451 million ounces for palladium, and 567,000-605,000 ounces for platinum.

Efficient Furnace Repairs Drive Increased Output

One of the major contributors to this positive revision in production guidance was the early completion of the reconstruction of the flash smelting furnace No. 2 at the Nadezhda Metallurgical Plant. Originally planned for 90 days, the furnace repair was completed in just 60 days, resulting in a 25% increase in smelting capacity. This allowed Nornickel to recover nickel production ahead of schedule and significantly boost mined production volumes.

Thanks to this efficient repair work, Nornickel’s nickel production saw a 3.45% year-on-year rise in the third quarter, reaching 55,805 tons. This represented a 16% increase from the previous quarter, further highlighting the positive impact of the Nadezhda furnace repairs. From January to September, Nornickel’s nickel output increased by 0.3% year-on-year, totaling 146,210 tons.

Growth in Copper and Platinum Group Metals

In addition to nickel, Nornickel's copper production also showed impressive growth, with a 7% increase year-on-year, reaching 107,497 tons in Q3. Output from January to September also rose by 7%, totaling 326,072 tons. This surge was attributed to a lower production base in 2023, as Nornickel upgraded its copper plant operations to improve the quality of copper cathodes.

Nornickel also saw a rise in its production of platinum group metals (PGMs). Palladium output increased by 2%, reaching 676,000 ounces, while platinum rose by 3.12% to 165,000 ounces. However, despite these gains, PGM production saw an 8% decrease in output compared to the second quarter due to the extended production cycle for these metals.

Market Impact and Price Outlook

The news of Nornickel’s production improvements comes amid a widening Class 1 nickel surplus, which has exerted downward pressure on nickel prices on the London Metal Exchange (LME). Recently, nickel prices have been trading in the $16,000-$18,000 per ton range, with the most recent contract priced at $16,062.50 per ton, its lowest since September 13.

Nornickel’s expanded output and the influx of nickel from new Asian LME brands have contributed to this surplus, impacting the LME nickel benchmark. Despite the surplus, analysts expect the price of nickel to stabilize within the current range in the near term.

European Nickel Premiums Decline Amid Rising Inventories

European Nickel

European nickel premiums have been steadily declining as the market faces a sharp increase in inventory levels. Producers and traders, holding substantial stocks of nickel cathodes, have slashed prices in an attempt to offload surplus supply. The pressure on premiums is most pronounced for Russian cathodes, while briquettes maintain stronger support due to tighter availability.

One trader highlighted the trend, noting that the past few days have been pivotal. "Premiums are increasingly under pressure, and the conversation across the market revolves around the exceptionally high inventory levels," he said.

Another trader echoed this sentiment, emphasizing that the market is recognizing weak demand fundamentals, which are likely to persist through the end of the year. The high cost of holding large inventories has also contributed to a sell-off as sellers look to reduce their exposure.

Despite the reduced offers, spot activity in Europe remains subdued, and traders are far from hitting their monthly targets for September. The rise in volumes has not been enough to stimulate demand significantly.

However, benchmark nickel prices on the London Metal Exchange (LME) have seen a 2.75% increase over the past week, reaching $16,825 per tonne. This rise is largely due to a short covering program and a cyclical uptick in end-user demand. On-warrant nickel inventories in LME warehouses rose by 5.4% over the same period, with a 19% surge in Rotterdam alone, where stocks now stand at 30,192 tonnes.

The cash-to-three-month nickel spread has remained relatively stable, with the contango widening slightly to $244.50 per tonne, compared to $242.01 per tonne last week.

US Nickel Premiums Hold Steady as Buyers Await Market Clarity

US Nickel

US nickel premiums remained stable this week as market activity waned, with spot market buyers largely sitting out until the first quarter of 2025.

Nickel Premiums Unchanged Amid Market Lull

Spot premiums for refined nickel in the US held steady this week:

• Full truckload melting grade, 4x4-inch cathodes: Assessed at 60-65¢/lb.
• Briquettes: Assessed at 30-35¢/lb.

The unchanged premiums reflect subdued market activity, with no spot sales reported. Industry insiders expect this trend to persist through December, potentially extending into the late first quarter of 2025. Reduced order volumes from specialty stainless producers have further softened demand.

LME Nickel Prices and Stock Levels

Global nickel stockpiles in London Metal Exchange (LME) warehouses increased by 3.4%, reaching 165,384 metric tonnes, up from 159,966 tonnes the previous week. This rise in inventories aligns with the broader slowdown in demand.

The LME nickel daily cash month-to-date average for December was $15,700/t ($7.12/lb), down from November’s average of $16,740/t ($7.14/lb). The official three-month LME nickel price settled at $15,955/t on Thursday, reflecting a 0.5% week-over-week decrease.

Voisey's Bay Expansion: A Major Development

In a noteworthy development, Brazilian mining giant Vale announced the completion of its Voisey’s Bay mine expansion in Canada. The transformation from open-pit to underground mining enables an annual nickel production capacity of 45,000 tonnes.

• The project, which began in 2018, cost $2.94 billion and significantly bolsters nickel supplies, particularly to the US market.

As Voisey's Bay ramps up production, it is expected to play a key role in stabilizing supply chains amid evolving market dynamics.

LME Nickel approval boosts deliverable supply

LME

LME nickel approval for China’s Jien expands deliverable supply and pressures class-1 prices as inventories swell across SHFE and LME. The LME nickel approval covers full-plate and cut cathodes made after 19 February 2024 at Jilin, with 5,000 t/yr capacity. As a result, total newly approved Chinese class-1 capacity on the LME now stands at 126,600 t/yr. The LME nickel approval arrives amid a surplus of class-1 metal that continues to funnel into exchange warehouses.

Deliverable supply expands after LME nickel approval

Jien’s fast-track listing enlarges the pool of LME-deliverable cathode and improves physical availability. Meanwhile, sellers keep delivering excess class-1 nickel into warehouses, seeking carry returns and balance-sheet relief. This flow has weighed on outright prices and loosened time spreads in recent weeks.

Inventories jump as sellers deliver into warehouses

Exchange stocks have climbed notably since mid-April. SHFE inventories rose from 22,541t to 25,451t, while LME inventories surged from 75,516t to 209,082t. Therefore, the class-1/class-2 spread has tightened, reducing premiums over nickel pig iron. Class-1 nickel is high-purity cathode or electrowon metal typically listed on the LME. Class-2 nickel, mainly NPI from China and Indonesia, contains about 10–14% nickel and feeds stainless mills.

The Metalnomist Commentary

Jien’s listing strengthens China-to-LME optionality and deepens liquidity in class-1 units. However, the approval lands into a stock-heavy market, so price support likely hinges on destocking or a demand surprise from batteries or aerospace alloys. Watch LME/SHFE arbitrage and cash-to-three-month spreads for early signals of a turn.

Posco Future M begins cathode exports to US

Posco Future M

Posco Future M begins cathode exports to US as it ships high-nickel NCM-A materials to Ultium Cells. The move uses self-produced precursors and strengthens North American EV supply chains. As a result, Posco Future M begins cathode exports to US with IRA-aligned feedstock and full upstream integration. This milestone confirms scale, quality, and localization readiness as Posco Future M begins cathode exports to US.

What shipped, from where, and to whom

Posco Future M dispatched high-nickel cathodes made with in-house precursors. Ultium Cells will use them for EV battery production. The shipment followed completion of its 45,000 t/yr precursor plant in Gwangyang. The facility started on 10 June, with first cargo on 26 July. Precursors of nickel, cobalt, and manganese combine with lithium at the Gwangyang cathode plant. The company targets consistent quality and cost control through vertical integration.

Why this matters for US battery supply chains

The delivery supports GM’s Ultium platform with non-Chinese nickel inputs. Posco Group converts nickel into high-purity nickel sulfate for CAM. Meanwhile, Posco Pilbara Lithium Solution supplies lithium from Australian spodumene. Posco Lithium Solution complements this with Argentine brine supply. These sources enhance IRA compliance and traceability for US-bound batteries. OEMs gain reduced risk, shorter timelines, and improved procurement flexibility.

Capacity outlook and localization pathway

Posco Future M and GM are building Ultium CAM in Bécancour, Quebec. The 30,000 t/yr cathode plant targets completion in 2026. Therefore, initial exports bridge near-term demand before local output ramps. The model mixes offshore precursor strength with regional CAM finishing. This approach helps stabilize costs and meet regional content rules. It also diversifies North American cathode supply beyond LFP.

The Metalnomist Commentary

Posco’s integrated precursor-to-cathode chain is a competitive advantage. Expect tighter OEM-supplier ties as IRA rules harden and Ultium volumes scale. Watch Bécancour’s CAM launch; it will set North America’s high-nickel baseline.

Europe Nickel Market Remains Lethargic

European nickel premiums remained static over the past week, as many buyers are either on vacation or have their near-term needs covered. The market saw limited activity with most transactions being small-scale, and only briquette offers showing any potential for an increase.

Supply Constraints and Market Dynamics

Despite a recent decline in freight costs, the current premium levels and the incentives associated with London Metal Exchange (LME) warehouse deliveries are curbing the inflow of Asian cathodes into Europe. Traders noted that only a premium exceeding $500 per ton for uncut cathodes would justify importing Indonesian material, which, although high-quality, remains scarce.

Benchmark nickel prices on the LME rose by 2.3% over the past week to $16,930 per ton, driven by short covering and optimistic expectations for potential US interest rate cuts. However, weak physical demand continues to suppress the contract.

On-warrant nickel stocks in LME warehouses decreased by 1.4% to 109,482 tons, with Rotterdam inventories also showing a slight decline. Nickel spreads between nearby cash and three-month contracts remained in contango, shifting slightly to $226.89 per ton.

Shanghai Futures Exchange Approves Second Huayou Nickel Brand

On June 17, the Shanghai Futures Exchange (SHFE) gave the green light for listing nickel cathode full plates produced by Huayou's second-phase facility in Zhejiang province, eastern China.

This nickel cathode, boasting a 99.96% purity, is manufactured at Huayou’s Quzhou plant, which has an annual production capacity of 30,000 tons and employs the electrowinning process. Previously, nickel cathodes from another Huayou facility in Quzhou, with a smaller capacity of 6,000 tons per year, were registered by SHFE in June 2023.

The London Metal Exchange had already approved the listing of two Huayou brands in July 2023 and February 2024.

Typically, brands registered with exchanges enjoy a premium over non-exchange-deliverable products due to their enhanced liquidity.

Posco Future M Begins Early Production of NCA Cathodes at New South Korea Plant

Posco Future M

South Korean materials giant Posco Future M, a subsidiary of the Posco conglomerate, has commenced early production at its new nickel-cobalt-aluminum (NCA) cathode plant in Pohang, North Gyeongsang province. The plant, which boasts an annual production capacity of 30,000 tonnes, was originally scheduled to begin operations in 2025 but has accelerated due to “customer requests.”

Posco’s NCA cathode output is crucial as global battery manufacturers seek high-quality cathode materials to meet demand for electric vehicles (EVs). The early start aligns with Posco Future M's 10-year agreement with Samsung SDI to supply high-nickel NCA cathodes, part of a broader push to establish South Korea as a leading player in the EV supply chain.

Expanding Production Capacity Amid EV Market Challenges

Posco Future M is actively expanding its cathode production capabilities with another plant under construction in Gwangyang, South Jeolla province, which is expected to add 52,500 tonnes per year by 2026. This will bring the company's total cathode material production capacity to 248,500 tonnes per year across its two plants by 2026. Despite this expansion, the firm has revised its initial target of 320,000 tonnes by 2025, reflecting the current slowdown in the global EV market.

The slowdown has also impacted Posco’s joint ventures and new plant projects. In September, the company postponed its plans for a nickel sulfate and battery precursor plant with China’s Huayou Cobalt, as well as its high-nickel cathode active material (CAM) facility in Quebec, Canada, a joint effort with General Motors, citing “local conditions.”

L&F Mitra Chem LFP Investment Targets U.S. Battery Supply Chain Strengthening

Mitra Chem

Korean cathode maker backs U.S. startup for local LFP material production

L&F invests $9.9mn in Mitra Chem for LFP production

L&F Mitra Chem LFP investment marks a strategic move to support domestic lithium iron phosphate (LFP) cathode production in the U.S. L&F invested ₩14.5 billion (approximately $9.9 million) in Mitra Chem through a preferred stock agreement to build collaboration. Mitra Chem develops iron-based cathodes for electric vehicles, energy storage, and military battery systems. As a result, the partnership strengthens U.S. battery material independence amid rising geopolitical and policy-driven localization needs.

L&F, a key Tesla supplier of high-nickel cathodes, is expanding its portfolio amid shifting industry dynamics. Notably, Mitra Chem’s CEO Vivas Kumar is a former Tesla executive, further deepening strategic alignment.

Weaker cathode demand pressures L&F’s 2024 earnings

Despite the new U.S. investment, L&F reported a net loss of ₩365 billion in 2024.

This widened from ₩194 billion in 2023, driven by softer-than-expected demand in the global battery market.

However, the deal with Mitra Chem signals L&F’s long-term pivot toward the fast-growing LFP segment. LFP technology is gaining traction globally due to its affordability, thermal stability, and use in stationary storage solutions.

The Metalnomist Commentary

L&F Mitra Chem LFP investment may look modest in size, but strategically it is critical. By aligning with a U.S.-based cathode startup led by Tesla alumni, L&F positions itself for a diversified and resilient future. As LFP gains global market share, this move could help offset volatility in nickel-based cathode demand.

China’s CNGR Boosts Ternary Precursor Production in First Half of 2024

CNGR Advanced Material

CNGR Advanced Material, a leading Chinese manufacturer of lithium-ion battery cathode materials, reported an increase in its production of nickel-cobalt-manganese (NCM) oxide precursors during the first half of 2024. This growth is largely driven by rising demand from the electric vehicle (EV) market, reinforcing CNGR's strong position in the battery materials sector.

Expanding Global Capacity to Meet Demand

In the first half of 2024, CNGR's NCM precursor output rose by 8% to 114,342 tons, operating at 71% capacity. Cobalt tetroxide and iron phosphate production also saw significant activity, reaching 11,932 tons and 14,664 tons, respectively, operating at 98% and 88% capacity rates. To meet increasing global demand, CNGR is expanding its production base with plans to add 230,000 tons of additional NCM precursor capacity, including 120,000 tons in Morocco and 110,000 tons in South Korea.

The company also made strides in the cobalt market, delivering cobalt metal from its 2,000 t/yr production facility in Qinzhou, Guangxi, starting in July. In addition, CNGR’s nickel cathodes received approval for listing on the London Metal Exchange in February 2024, further establishing the company’s role in the global battery supply chain.

Hubei Boyang launches manganese-based battery CAM plant to scale China’s next-wave cathodes

Hubei Boyang

China’s manganese-based battery CAM build-out gained momentum as Hubei Boyang started its first-phase plant. The project adds manganese-based battery CAM capacity and manganese tetroxide at scale. As a result, manganese-based battery CAM supply will deepen near upstream ore in Hubei.

First-phase start-up and three-stage growth path

Hubei Boyang commissioned a plant with 20,000 t/yr of manganese-based CAM. It also started 30,000 t/yr of manganese tetroxide. The site sits in Changyang, Yichang, central Hubei. However, the plan is larger than this first step. The full project targets 280,000 t/yr across three phases.

Changyang county hosts abundant manganese ore reserves for feedstock. Therefore, the location reduces logistics risk and costs. Hubei Zhongmeng operates five lines totaling 50,000 t/yr of manganese flake. That nearby supply strengthens the project’s raw material security.

China’s LMFP and Mn-rich cathodes expand rapidly

China’s power battery growth is catalyzing manganese-based battery CAM investments. Producers are scaling LMFP and related Mn chemistries. Meanwhile, Hunan Yuneng is building an LMFP line. Shanxanxi Tewashi began a 100,000 t/yr plant in May. Ningbo Ronbay plans LMFP and sodium-ion CAM in Hubei. Baiyin Shidai Ruixiang launched 20,000 t/yr of battery-grade LMFP in Gansu.

Manganese-rich cathodes aim to balance cost, safety, and energy. As a result, they target EVs and storage systems. Hubei Boyang’s start-up signals tighter integration from ore to cathode. It should broaden customer options beyond LFP and ternary NCM.

The Metalnomist Commentary

China’s Mn-based push lowers cathode cost while reducing nickel and cobalt exposure. Watch phase-by-phase execution and LMFP adoption rates. Regional feedstock proximity could anchor margins during price swings.

Global Solid-State Electrolyte Shipments Surge as Semi-Solid Batteries Scale

Solid state electrolyte

Global solid-state electrolyte shipments are rising rapidly as semi-solid batteries move toward vehicle adoption and full solid-state battery commercialisation advances. Chinese research institute EV Tank said shipments reached 4,100t in 2025, more than doubling from a year earlier.

The increase marks an important early-stage signal for the battery materials industry. Electrolytes are one of the core materials that determine the energy density, safety and commercial viability of solid-state batteries.

Global solid-state electrolyte shipments are still small compared with conventional lithium-ion battery materials. However, the growth rate shows that downstream producers are beginning to prepare for larger semi-solid and solid-state battery output.

EV Tank expects global solid-state electrolyte shipments to reach 229,000t by 2030. That would imply a compound annual growth rate of more than 120% from 2025 to 2030, making electrolytes one of the fastest-growing segments in advanced battery materials.

The forecast reflects both technological progress and industrial positioning. Battery producers, automakers and materials companies are now investing ahead of expected demand from electric vehicles, energy storage systems and high-end electronics.

Semi-Solid Batteries Create the First Commercial Demand Base

Semi-solid batteries are likely to provide the first meaningful demand base for solid-state battery electrolytes. EV Tank expects these batteries to begin vehicle adoption from 2026, ahead of full solid-state battery mass production.

This timing matters because semi-solid batteries can act as a bridge technology. They offer improved safety and performance compared with conventional liquid-electrolyte batteries, while avoiding some of the most difficult technical barriers facing all-solid-state cells.

Semi-solid battery growth is already supporting electrolyte shipments. These products still use electrolyte systems that may differ from fully solid-state designs, but they create early commercial demand for sulphide, oxide, polymer, halide and composite electrolyte materials.

Full solid-state batteries are expected to enter small-scale mass production from 2027. That stage will likely remain limited at first because large-scale production still faces technical, cost and qualification challenges.

The market therefore looks likely to develop in phases. Semi-solid batteries will drive early electrolyte consumption, while full solid-state batteries will gradually expand once production processes, interfaces and reliability improve.

Electrolytes are central to this transition. They influence ion conductivity, safety, cycle life, energy density and compatibility with electrodes. Any weakness in electrolyte performance can limit the entire battery system.

This is why electrolyte development is becoming a strategic battleground. Battery makers cannot scale solid-state technology only by changing cell design. They need stable, high-quality electrolyte materials that can be produced consistently at industrial scale.

Capacity expansion is accelerating in response. EV Tank expects producers with annual electrolyte capacity at the thousand-tonne level to emerge within the next one to two years.

That would mark a shift from laboratory and pilot-scale material production toward early industrial supply. It would also create a more competitive market among electrolyte producers seeking qualification with battery manufacturers.

For battery materials suppliers, this creates a new growth category. Electrolytes may become a higher-value segment within the battery chain, especially if producers can meet strict requirements for purity, particle control, stability and conductivity.

For automakers, the key issue is reliability. Vehicle adoption requires materials that can perform under harsh cycling, temperature and safety conditions. This means electrolyte suppliers must pass long qualification cycles before volume demand can fully develop.

Technology Routes and Cost Cuts Shape the Scale-Up

Solid-state battery electrolyte technology remains diversified, especially in semi-solid batteries. Sulphide, oxide, polymer and halide routes are developing in parallel, while both single-electrolyte and composite-electrolyte solutions are being adopted.

This diversity shows that the industry has not yet settled on a single dominant material route. Different technologies offer different advantages in conductivity, stability, manufacturability, cost and safety.

Sulphide electrolytes currently dominate the roadmap for full solid-state batteries. They offer high ionic conductivity and are widely viewed as one of the most promising routes for high-performance battery cells.

However, sulphide systems also face challenges. They require careful handling, moisture control and interface engineering. These factors can raise production complexity and slow commercial scale-up.

Oxide electrolytes offer strong chemical and thermal stability, but they can face processing and interface resistance challenges. Polymer electrolytes offer manufacturing flexibility, but often struggle with conductivity at room temperature. Halide electrolytes are gaining interest because of their electrochemical stability and potential compatibility with high-voltage cathodes.

Composite electrolyte solutions may become increasingly important. By combining material systems, producers can try to balance conductivity, flexibility, stability and manufacturability.

Cost reduction is also becoming a major commercial driver. EV Tank said improvements in material quality and production processes lowered costs across several technology routes in 2025.

Sulphide electrolyte costs fell by more than 35% during the year. This is significant because cost remains one of the biggest obstacles to wider solid-state battery adoption.

Lower electrolyte costs improve the competitiveness of solid-state batteries against conventional lithium-ion technologies. They also make it easier for battery makers to test commercial deployment in premium vehicles, high-performance energy storage and other demanding applications.

Still, cost reduction alone will not guarantee rapid commercialisation. The industry must also solve interface stability, dendrite control, manufacturing yield, pressure management and long-term cycle reliability.

This explains why some major automakers remain cautious. BYD chief scientist Lian Yubo has said solid-state batteries still face core technical bottlenecks and that liquid and solid-state batteries should develop as complementary technologies.

Great Wall Motor also does not expect large-scale commercialisation of all-solid-state batteries in the near term. This caution suggests that the market may grow strongly, but unevenly.

The commercial pathway is therefore not a simple replacement of liquid batteries. Conventional lithium-ion batteries, semi-solid batteries and full solid-state batteries are likely to coexist for years, each serving different cost and performance segments.

This has important implications for materials demand. Solid-state growth could increase demand for lithium metal, high-nickel cathodes, sulphur-based materials, oxides, halides and specialty chemical precursors. But it may not immediately reduce demand for conventional electrolytes, separators or liquid battery components.

The forecast of 229,000t of global solid-state electrolyte shipments by 2030 points to a large materials opportunity. But the final market size will depend on how quickly automakers adopt semi-solid batteries and how successfully full solid-state batteries move from demonstration to reliable mass production.

For supply chains, qualification will be decisive. Battery makers will not buy electrolyte materials only because capacity exists. They will need stable quality, competitive pricing, proven performance and reliable long-term supply.

For policymakers, solid-state batteries are increasingly tied to advanced manufacturing and energy security. Countries that control electrolyte technology and battery production could gain strategic advantage in next-generation electric vehicles and storage systems.

For the metals market, the key point is that battery innovation changes materials demand before full commercial adoption arrives. Producers begin scaling supply years before the technology reaches mass-market vehicles, creating early demand signals and investment cycles.

Global solid-state electrolyte shipments therefore offer a useful indicator of where advanced battery manufacturing is moving. The numbers remain small, but the growth curve is steep enough to attract capital, competition and supply-chain restructuring.

The Metalnomist Commentary

Solid-state electrolyte growth shows that next-generation battery competition is moving upstream into materials engineering. The market will expand quickly, but full solid-state batteries still need technical proof before they can reshape EV and energy storage supply chains at scale.

Uber Lucid Nuro EV robotaxi to launch in US, scale globally

Uber & Lucid

Uber will deploy a new robotaxi fleet with Lucid and Nuro starting next year. The program launches in a major US city using Lucid Gravity SUVs. The Uber Lucid Nuro EV robotaxi targets scale and lower downtime with a 450-mile range.

Technology, launch, and scale

Lucid, Nuro, and Uber formed an exclusive robotaxi program for Uber's platform. Uber or partners will operate at least 20,000 vehicles over six years. Nuro Driver provides Level 4 autonomy for the Gravity model. The first prototype already operates autonomously at Las Vegas proving grounds.

Lucid selected Gravity to maximize availability with 450 miles per charge. Longer range reduces charging downtime during peak ride demand. Therefore, utilization improves and unit economics may strengthen. However, safety validation and regulatory approvals remain critical gates.

Investment, infrastructure, and supply chain

Uber plans to invest hundreds of millions in Lucid and Nuro. The companies aim to build fast charging and service infrastructure. Meanwhile, Uber Lucid Nuro EV robotaxi deployment could pressure battery supply chains. Demand for high-nickel cathodes and aluminum body materials may rise.

Global rollout hinges on scaling autonomy and local compliance. As a result, deployment will expand beyond the United States in stages. The Uber Lucid Nuro EV robotaxi may catalyze urban fleet electrification. Success could spur similar alliances among automakers and platforms.

The Metalnomist Commentary

This program pairs a long-range EV with mature Level 4 stacks to chase uptime. Watch local permitting, charger density, and service models as scale grows. Procurement discipline will matter if component inflation reappears during the ramp.