Aquatech lithium extraction technology acquisition reshapes North American DLE landscape

Aquatech

Aquatech lithium extraction technology is moving centre-stage after the company acquired Koch Technology Solutions' DLE business. The Aquatech lithium extraction technology acquisition includes core intellectual property and the Lithium Selective Sorption (LSS) platform. As a result, Aquatech lithium extraction technology now anchors a full end-to-end flowsheet for brine-to-battery lithium materials.

Aquatech lithium extraction technology now spans full brine-to-battery flowsheets

Aquatech acquired Koch Technology Solutions’ direct lithium extraction business, including all associated intellectual property. The deal transfers every current LSS-based project, along with licences, agreements and performance guarantees. However, financial terms remain undisclosed, reflecting competitive sensitivity in the emerging DLE space.

The LSS technology targets selective lithium recovery from complex brines, improving yields and reducing impurities. Therefore, Aquatech can integrate front-end extraction with its existing strengths in water treatment and process systems. This combination positions Aquatech lithium extraction technology as a modular platform for new projects worldwide.

Aquatech now markets a full lithium processing flowsheet, from extraction and purification to refining and high-purity products. That end-to-end scope will matter for project developers and financiers seeking single-partner risk allocation. It also supports standardisation of designs across different brine chemistries and regulatory environments.

Smackover Lithium deal showcases commercial scale ambitions

A flagship reference for the LSS platform is Smackover Lithium’s South West Arkansas project. Under the transferred agreement, LSS technology underpins plans to produce 22,500 t/yr of lithium carbonate from 2028. This project gives Aquatech an important commercial-scale showcase in the competitive Smackover brine province.

Meanwhile, the acquisition consolidates scattered DLE know-how into a more integrated offering. Project sponsors increasingly want proven technology partners with delivery track records and bankable guarantees. As developers move from pilots to commercial plants, Aquatech lithium extraction technology will be judged on uptime, recoveries and operating costs.

The deal also underscores the growing convergence between water treatment and mineral processing. DLE projects require complex brine management, reinjection and environmental control. Aquatech’s legacy water and process technology business provides an operational bridge between these domains.

The Metalnomist Commentary

Aquatech’s move shows that DLE is no longer a niche R&D theme but a contested industrial platform. By absorbing KTS’ LSS portfolio, Aquatech becomes a more credible partner for Smackover and other brine developers seeking bankable flowsheets. The next test will be whether early projects can deliver nameplate volumes on time and at competitive unit costs.

Honda EV Sales Target Revision Prioritizes Hybrid Electric Vehicles by 2030

Honda EV

Honda EV sales target underwent significant downward revision as the Japanese automaker adjusted its 2030 global electric vehicle strategy amid market uncertainty. Honda EV sales target now falls below 30% of total vehicle sales by 2030, representing a strategic shift toward hybrid electric vehicles (HEVs) as the primary powertrain in the company's energy transition approach, reflecting broader industry challenges from slowing EV adoption and shifting regulatory environments.

Strategic Pivot Toward Hybrid Technology Dominance

Honda EV sales target revision accompanies ambitious hybrid vehicle expansion plans targeting 2.2 million HEV units within 3.6 million total annual vehicle sales by 2030. The automaker will launch 13 next-generation hybrid models globally over four years beginning in 2027, demonstrating substantial commitment to hybrid technology advancement. This strategic pivot addresses market realities including slowing EV demand, evolving regulations, and changing trade policies affecting electrification timelines.

Meanwhile, Honda plans significant hybrid system enhancements to improve range and efficiency while reducing costs by over 30% by 2028 compared to current models. These improvements target competitive positioning against both traditional internal combustion engines and full battery electric vehicles. The cost reduction strategy enables broader hybrid adoption across Honda's global vehicle lineup while maintaining profitability margins.

HONDA SALOON

Regional Market Adaptation Drives Technology Development

However, Honda's approach varies significantly across key regional markets reflecting local demand patterns and regulatory requirements. In North America, the company will develop specialized hybrid systems for large vehicles combining powerful performance with high efficiency for spacious models launching in the latter 2020s. This regional focus addresses American consumer preferences for larger vehicles while meeting efficiency standards.

Therefore, China market strategy involves partnerships with local technology providers including autonomous technology startup Momenta for next-generation Advanced Driver Assistance Systems (ADAS) development. All future Honda models sold in China will feature locally-adapted ADAS technology addressing specific regional driving conditions and regulatory requirements. This localization approach demonstrates Honda's commitment to market-specific technology solutions.

Advanced Technology Integration Supports Competitive Positioning

Furthermore, Honda will develop next-generation ADAS for high-end EVs and HEVs launching in North America and Japan by 2027. These advanced systems represent critical differentiators in increasingly competitive automotive markets where autonomous capabilities influence consumer purchasing decisions. The technology integration spans both electric and hybrid powertrains, maintaining Honda's competitive positioning across multiple vehicle categories.

As a result, Honda's revised strategy reflects pragmatic adaptation to evolving automotive market dynamics while maintaining technological leadership across electrification spectrum. The emphasis on hybrid technology provides flexibility during uncertain transition periods while supporting regulatory compliance and consumer acceptance. This balanced approach positions Honda advantageously for various electrification scenarios across global markets.

The Metalnomist Commentary

Honda's strategic recalibration toward hybrid vehicles reflects broader automotive industry recognition that the transition to full electrification may proceed more gradually than initially anticipated, particularly as infrastructure limitations and consumer adoption patterns create market headwinds. The company's focus on cost reduction and regional adaptation demonstrates sophisticated understanding of diverse global market requirements, positioning Honda to capitalize on hybrid technology's bridging role during extended electrification timelines.

PGM Technology Partnership Targets New Demand Beyond Catalytic Converters

Sibanye-Stillwater

The PGM technology partnership between Johnson Matthey, Sibanye-Stillwater, and Valterra Platinum signals a serious push to build new platinum group metals demand beyond traditional auto catalysts. The three companies will work on a multi-year, multi-million research and development programme covering the full PGM basket. The goal is to move new ideas from research to commercialisation. As a result, the PGM technology partnership could become one of the most important demand-side initiatives in the sector.

This matters because platinum group metals demand still depends heavily on catalytic converters for internal combustion engines. That market remains large, but electric vehicles are steadily taking share. Producers and refiners therefore need new end uses that can support long-term balance across platinum, palladium, rhodium, and the wider basket. Therefore, the PGM technology partnership is not just a research collaboration. It is a strategic response to a changing demand structure.

The mix of partners also gives the programme unusual weight. Sibanye-Stillwater and Valterra are major South African mining players, while Johnson Matthey brings refining, recycling, and advanced materials capability. That combination improves the odds that new PGM applications can move beyond lab work and into real industrial markets. Consequently, the PGM technology partnership has more commercial credibility than a typical standalone innovation announcement.

New PGM Applications Could Open Demand in Hydrogen, Electronics, and Advanced Materials

New PGM applications are central to the entire programme. The companies said they will explore uses in clean hydrogen, emissions detection and reduction, electronic materials, and high-performance alloys. These are not fringe categories. They are all large industrial themes with room for higher-value materials adoption. As a result, new PGM applications could help widen the demand base beyond automotive exposure.

Hydrogen is especially important in that context. PGMs already play a role in several hydrogen-related technologies, and deeper commercial penetration could create a more durable growth market. Electronics and advanced materials also matter because they can support more specialized and higher-margin uses. Therefore, the PGM technology partnership is aimed at sectors where technical performance can justify premium metal value.

The emphasis on the full basket is also notable. The programme is not focused on only one metal or one application family. That reflects a broader industry need to improve supply and demand balance across multiple PGMs at the same time. Meanwhile, it suggests the partners are thinking in portfolio terms rather than chasing one headline technology.

PGM Innovation Strategy Reflects a Bigger Industry Shift

PGM innovation strategy is becoming more urgent as the auto market evolves. Around 60pc of global PGM supply still goes into catalytic converters. That share remains important today, but it cannot be the only long-term demand pillar. Producers now need stronger growth channels that can absorb metal units in a more diversified way. Consequently, the PGM technology partnership reflects a much wider strategic shift across the industry.

This also matters for South Africa’s mining sector. Major PGM producers need a healthier long-term demand profile if they want more stable pricing and investment conditions. New applications can help support that by reducing dependence on a single dominant sector. Therefore, PGM innovation strategy is not just about technology leadership. It is also about future market resilience.

The comment from Sibanye-Stillwater’s chief executive makes that clear. The focus is on the entire basket and on creating a better supply-demand balance. That is ultimately the core commercial purpose of the programme. As a result, the PGM technology partnership should be viewed as a demand-defense strategy as much as an innovation platform.

The Metalnomist Commentary

This partnership matters because the PGM industry can no longer rely on catalytic converters alone to carry long-term demand. The most interesting part is not that the companies announced research. It is that miners, refiners, and recyclers are now aligning around commercialization. If this expands with more partners, it could become a real turning point for PGM demand strategy.

Rio Tinto to Invest $165 Million in Grande-Baie Anode Furnaces Overhaul

Rio Tinto, the UK-Australian mining giant, is set to invest $165 million to refurbish two carbon-anode baking furnaces at its Grande-Baie aluminum smelter in Quebec, Canada. This upgrade is part of the company's broader strategy, which includes advancing inert anode technology at its Arvida plant.

The refurbishment will involve rebuilding the Péchiney furnaces' concrete shell and refractory lining in two phases across 2025 and 2026. These furnaces are critical, supplying about 60% of the 280,000 anodes annually needed for the 816 pots at Rio Tinto's Grande-Baie and Laterrière smelters. During the phased shutdowns for the rebuild, Rio Tinto plans to maintain production by utilizing a third furnace with different technology, stockpiled anodes, and market purchases. This strategy ensures no impact on aluminum production.

The overhaul will reduce Rio Tinto's demand for calcined petroleum coke (CPC) over the next two years, but the long-term CPC demand is expected to stabilize, as the refurbished equipment will serve the smelters for "decades to come," according to the company. The upgraded furnaces are projected to have a lifespan of about 25 years.

Simultaneously, Rio Tinto is making significant strides in commercializing inert anode technology. Last month, the company announced a substantial investment to advance this technology, which could eventually render carbon anodes and the traditional Hall-Héroult smelting process obsolete. Rio Tinto has obtained the first technology license to use the Elysis process at its Arvida smelter. Elysis, a joint venture between Rio Tinto and Alcoa, aims to commercialize inert anode technology. Together with the Quebec government, Rio Tinto will invest a total of $285 million to design, engineer, and construct a 10-pot, 2,500 t/yr plant as a pilot project to demonstrate the Elysis technology. This project is considered a "critical step in Rio Tinto's learning journey towards full-scale industrialization," with first production targeted for 2027. Alcoa has an option to purchase a portion of the aluminum produced during the first four years. Additionally, Elysis plans to launch industrial prototype cells using inert anodes at Rio Tinto's Alma smelter later this year.

Elysis is at the forefront of efforts to replace CO2-emitting carbon anodes, which are made from anode-grade calcined petroleum coke, with inert anodes that release oxygen. Other companies, such as Germany-based Trimet, are also developing similar technologies.

Despite these advancements, carbon anodes are expected to remain in use for the foreseeable future. Rio Tinto's investment in the Grande-Baie baking furnaces underscores this reality. One market participant described it as a "public setback" for inert anode technology, noting that it signals Rio Tinto's intent to continue using carbon technology for the next 10-20 years. Another participant suggested that inert anode technology might not significantly impact carbon anode demand until after 2030, possibly even 2035.

IonicRE Rare Earth Recycling Deal Targets Ex-China Magnet Supply Gap

Ionic rare earths

IonicRE rare earth recycling plans have gained a technology boost after the Australian rare earths miner, refiner and recycler signed a licensing agreement with US refiner Nth Cycle. The deal gives Ionic Rare Earths access to electro-extraction technology for its US and global recycling operations.

IonicRE rare earth recycling will focus on recovering rare earth oxides from neodymium-iron-boron permanent magnet dust. These oxides can then be reused in the production of new rare earth magnets.

IonicRE rare earth recycling is strategically important because magnet supply chains outside China remain weak in midstream processing and recycling. The agreement helps address that gap by adding technology that can convert magnet waste into reusable rare earth oxide products.

Nth Cycle’s technology can break down NdFeB magnet dust into rare earth oxides. This supports circular supply chains for materials used in electric vehicles, wind turbines, robotics, defence systems and advanced electronics.

NdFeB Magnet Dust Becomes a Strategic Feedstock

NdFeB magnet recycling is becoming more important as demand for rare earth permanent magnets grows. Magnet production generates upstream and downstream dust, and that material contains valuable neodymium, praseodymium and heavy rare earth elements.

IonicRE already has proprietary technology for recycling REPM metal dust. Nth Cycle’s electro-extraction process adds another capability and fills a specific midstream gap in the ex-China recycling chain.

The technology could be used at IonicRE’s Belfast recycling facility in Northern Ireland. It may also support the company’s 50:50 joint venture with Viridis at a planned recycling facility in Brazil.

The US is another important target. IonicRE already supplies technology to US Strategic Metals’ Missouri recycling facility, which is expected to recover neodymium-praseodymium oxide and heavy rare earths including dysprosium, terbium, samarium, gadolinium and holmium.

This matters because recycling can reduce dependence on mined supply and improve traceability. It can also create shorter, more secure material loops for magnet makers and industrial users.

Recycling Adds Depth to Ex-China Rare Earth Supply

IonicRE remains a small player in the global rare earth chain, but its strategy connects mining, refining and recycling. The company owns 60% of the Makuutu rare earth project in Uganda, which contains 617mn t of ore grading 630ppm total rare earth oxide.

The recycling technology agreement adds another route to supply. Rather than relying only on new mined material, IonicRE can target waste streams from magnet production and end-use supply chains.

This is important because China still dominates rare earth refining. China accounted for 91% of global rare earth refining in 2024, leaving western and allied supply chains exposed to processing concentration.

Recycling will not replace primary rare earth mining. But it can provide incremental supply, improve resilience and help build processing expertise outside China.

The real value lies in integration. Recovered rare earth oxides must be refined, qualified, converted into metals or alloys, and returned to magnet production.

IonicRE’s agreement with Nth Cycle therefore supports a wider strategic goal. It helps build the technical infrastructure needed for a circular rare earth magnet supply chain outside China.

The Metalnomist Commentary

IonicRE’s licensing deal shows that rare earth recycling is moving from sustainability language into supply-chain strategy. The key opportunity is not only recovering magnet waste, but turning it into qualified oxide feedstock that can support non-China magnet production.

Carpenter Technology Chief Executive Transition Signals Strategic Continuity

Carpenter Technology

Carpenter Technology chief executive transition is now officially under way. The company will appoint current president and chief operating officer Brian Malloy as chief executive on 1 July. The move points to leadership continuity rather than a strategic reset. As a result, Carpenter Technology chief executive transition looks designed to preserve momentum in specialty alloys and advanced materials.

This matters because leadership changes can alter capital priorities, customer focus, and operating discipline. In this case, Brian Malloy already knows the business from both commercial and operational roles. He has spent more than 10 years inside the company across key segments. Therefore, Carpenter Technology chief executive transition appears to favor stability over disruption.

The structure of the handover also supports that view. Current chief executive Tony Thene will remain executive chairman of the board. That gives the company continuity at both the management and board levels. Consequently, Carpenter Technology chief executive transition should be viewed as an internal succession move with a lower execution risk profile.

Brian Malloy Brings Commercial and Operational Experience

Brian Malloy enters the top role with experience across Carpenter’s most important business functions. He has worked in both commercial leadership and operational management during his time at the company. That mix matters in specialty materials, where execution and customer alignment are closely linked. As a result, Brian Malloy brings a balanced profile to the chief executive role.

His background also includes leadership in specialty alloy operations and performance engineered products. Those roles suggest direct familiarity with the parts of the business that drive technical value and customer differentiation. Therefore, the transition supports continuity in how Carpenter manages high-performance materials markets.

Specialty Alloy Leadership Will Likely Stay Focused on Execution

Specialty alloy leadership often matters most when companies want consistent performance rather than dramatic repositioning. Carpenter appears to be choosing that path. An internal successor usually understands operating culture, production priorities, and customer expectations better than an outside appointee. Meanwhile, the board’s decision suggests confidence in the existing direction.

This does not mean leadership changes are insignificant. Even internal transitions can influence resource allocation and management style over time. However, Carpenter Technology chief executive transition currently looks more evolutionary than transformational. Therefore, investors and customers will likely interpret the move as a continuity signal.

The Metalnomist Commentary

This succession stands out because it reinforces stability in a technically demanding materials business. Carpenter is not signaling a break from its current path. It is signaling that internal operational knowledge still matters most in specialty alloy leadership.

China's Lithium Tech Export Curbs Threaten EU Battery Industry

China's Lithium Battery

Key Technology Export Controls Put European Battery Industry on Edge

China's proposed restrictions on exporting key lithium processing technologies are sending shockwaves through the European Union's (EU) burgeoning battery industry. The proposed curbs target crucial equipment used in lithium extraction and battery material production, including lithium-iron-phosphate (LFP) battery production equipment, cathode preparation technology, and direct-lithium-extraction (DLE) technology, particularly from spodumene and brines. A consultation period is open until February 1st, after which a final decision will be made.

Europe's Reliance on Chinese Technology Raises Concerns About Supply Chain Security

Industry experts warn the impact could be significant, especially for junior European lithium producers heavily reliant on Chinese technology. Companies like Northvolt, which recently announced job cuts and scaled back ambitions, highlight the vulnerability of the EU's current strategy. The restrictions could hinder the development of a robust, independent European battery supply chain.

Companies with In-House Technology See Opportunity Amidst Crisis

However, some companies are better positioned to weather the storm. Vulcan Energy Resources, an Australian company with operations in Europe, claims to have developed in-house absorption-type DLE technology, securing its supply chain and potentially offering solutions to other European players. Vulcan Energy Resources' executive chair, Francis Wedin, emphasized the strategic advantage of their technology, particularly given Goldman Sachs's preference for brine-based lithium extraction due to lower production costs.

European Lithium Market Faces Uncertainty and Calls for Action

Other voices in the European lithium market paint a more concerning picture. Viridian Lithium's chief commercial officer, Luc Pez, warned of potentially "extremely disruptive" consequences for the nascent ex-China battery supply chain. Pez criticized the lack of preparedness in Europe and the US, urging for accelerated reshoring of the battery supply chain and addressing regulatory inconsistencies within the EU. He highlighted the urgent need for Europe to establish concrete plans and achieve its targets in the face of increasing competition from China in the electric vehicle market.

The Future of European Electric Vehicle Market Hangs in the Balance

China's proposed export restrictions underscore the geopolitical complexities of the lithium market and the challenges facing Europe's ambitions in the electric vehicle sector. The move could significantly impact the development of the European electric vehicle market, as the EU aims to reduce its reliance on China for battery supply.

Livium and MinRes Advance Lithium Recovery Technology

Mineral Resources

Boosting Lithium Extraction from Spodumene Waste

Livium and Mineral Resources (MinRes) have partnered to enhance lithium recovery. They aim to optimize the commercialization of advanced extraction technology. The focus is on increasing lithium yield from spodumene waste. Livium's technology can boost lithium recovery by up to 50pc. This applies to fine and low-grade spodumene waste. The joint development agreement outlines key responsibilities. 

MinRes will supply raw materials at no cost. Livium will contribute its proprietary technology. Livium will also manage production processes and conduct studies. This collaboration seeks to improve efficiency in lithium production. The partnership addresses the challenge of spodumene waste. This waste often contains valuable lithium that is currently lost. The technology offers a significant advancement for the lithium industry.

Optimizing Spodumene Processing

The partnership focuses on optimizing spodumene processing. Spodumene is a key mineral source of lithium. Livium's extraction technology targets fine and low-grade waste. This waste is typically difficult to process. The technology increases the overall lithium yield. This improvement is crucial for meeting growing lithium demand. 

The collaboration between Livium and MinRes is strategic. It combines Livium's technological innovation with MinRes' operational expertise. This synergy accelerates the commercialization of the technology. The agreement ensures a sustainable supply of raw materials. This supply is essential for the development process. The project aims to make lithium production more efficient and sustainable.

Lilac Argentina Pilot Plant Achieves 91% Lithium Recovery Rate

Lilac

Lilac Argentina pilot plant demonstrated exceptional performance with 91% lithium brine recovery using proprietary direct lithium extraction (DLE) technology in Jujuy province. The US-based Lilac Solutions' Lilac Argentina pilot plant success represents a significant breakthrough in sustainable lithium processing, achieving 99.4% overall impurity rejection while removing 99.9% of sodium, the primary contaminant in regional brine deposits.

Direct Lithium Extraction Technology Delivers Superior Performance

Lilac Argentina pilot plant operations showcase advanced DLE capabilities that eliminate traditional evaporation pond requirements. The technology enables faster and more environmentally friendly lithium processing compared to conventional methods that require extensive land use and prolonged evaporation cycles. The pilot facility mirrors future commercial-scale operations at one-third scale, providing reliable performance validation for full-scale deployment.

Meanwhile, the Argentina facility would produce 42 metric tonnes annually of lithium carbonate equivalent (LCE) if operated continuously throughout a full year. This production capacity demonstrates commercial viability while validating technical specifications for larger installations. The successful sodium removal rate addresses a critical challenge in Argentina's lithium-rich but high-impurity brine resources.

Multi-Location Strategy Validates Global Applicability

However, Lilac Solutions operates additional pilot facilities across diverse geographic locations to validate technology performance across varying brine compositions. The company maintains pilot operations in Chile and Utah, producing trial lithium quantities at both sites. This multi-location approach demonstrates DLE technology adaptability to different geological and chemical conditions.

Therefore, the global pilot program provides comprehensive data for commercial scaling while reducing technical risks associated with site-specific challenges. Each location offers unique brine characteristics that test different aspects of the DLE system's capabilities. The diverse testing environments strengthen investor confidence and support technology commercialization across international markets.

Commercial Scaling Opportunities in Lithium Markets

Furthermore, Lilac's successful Argentina demonstration positions the company advantageously within the rapidly expanding lithium market driven by electric vehicle and energy storage demand. Jujuy province hosts significant lithium resources within the broader Lithium Triangle region, creating substantial scaling opportunities for proven DLE technology. The environmental advantages of DLE align with increasingly stringent sustainability requirements from automotive manufacturers.

As a result, the 91% recovery rate achievement establishes new performance benchmarks for direct lithium extraction while addressing environmental concerns associated with traditional processing methods. Lilac's technology offers lithium producers faster project development timelines and reduced environmental footprints compared to evaporation-based alternatives increasingly challenged by water scarcity and environmental regulations.

The Metalnomist Commentary

Lilac's Argentina pilot success demonstrates how advanced direct lithium extraction technologies can overcome traditional processing limitations while meeting growing environmental sustainability requirements in lithium production. The exceptional impurity rejection rates and rapid processing capabilities position DLE as a transformative approach for unlocking previously challenging brine resources, particularly important as the industry scales to meet exponential battery demand growth.

China LFP Supply Deal Between Wanrun and CATL Secures 1.32 Million Tonnes

Wanrun

China LFP supply deal reached historic proportions as Hubei Wanrun New Energy Technology signed a five-year agreement to deliver 1.32 million tonnes of lithium-iron-phosphate cathode materials to CATL. The massive China LFP supply contract from May 2025 through May 2030 represents one of the largest battery materials procurement agreements in the industry, highlighting CATL's aggressive expansion strategy and LFP technology's growing market dominance.

Strategic Partnership Drives Battery Technology Innovation

China LFP supply partnership extends beyond simple procurement to encompass joint research and development initiatives. Wanrun and CATL agreed to collaborate on high-density LFP product iteration and mass production capabilities while jointly exploring new energy market opportunities. CATL committed to purchasing at least 80% of promised monthly quantities, providing Wanrun with guaranteed revenue streams and production planning certainty.

Meanwhile, Wanrun demonstrated strong operational performance with 2024 LFP production reaching 233,108 tonnes, representing 51% growth from 2023. Sales volumes increased 39% to 228,240 tonnes during the same period, reflecting robust market demand and the company's expanding manufacturing capabilities. This performance trajectory supports the substantial supply commitments made to CATL.

CATL's Market Leadership Drives Demand Growth

However, CATL's explosive growth trajectory necessitates secured raw material supplies for sustained market expansion. The battery giant sold 120 GWh of batteries in Q1 2025, marking 30% year-over-year growth and reinforcing its position as China's largest battery producer. CATL raised $4.6 billion through Hong Kong Stock Exchange share sales on May 20th, specifically targeting global battery market expansion financing.

Therefore, the Wanrun supply agreement aligns perfectly with CATL's international growth strategy and capital deployment plans. The five-year commitment provides production stability while supporting CATL's aggressive capacity expansion across multiple global markets. This strategic partnership model demonstrates how Chinese battery companies integrate vertically to secure critical material supplies.

LFP Technology Gains Global Market Share

Furthermore, lithium-iron-phosphate batteries captured nearly half of the global electric vehicle battery market in 2024 according to the International Energy Agency. LFP technology offers significant advantages including lower manufacturing costs and enhanced safety performance compared to ternary battery alternatives. These benefits drive increasing adoption across automotive manufacturers seeking cost-effective energy storage solutions.

As a result, the Wanrun-CATL partnership positions both companies advantageously within the rapidly expanding LFP segment. China's dominance in LFP production creates competitive advantages for domestic battery manufacturers while supporting the country's electric vehicle industry leadership. The supply agreement reinforces China's integrated approach to battery supply chain control from raw materials through finished products.

The Metalnomist Commentary

The Wanrun-CATL supply agreement exemplifies China's systematic approach to battery supply chain integration, securing critical materials access while driving technology innovation through strategic partnerships. This 1.32 million tonne commitment reflects both companies' confidence in LFP technology's long-term market prospects and China's continued dominance in global battery manufacturing despite increasing international competition.

EU Mexico Trade Agreement Opens Clean Tech and Critical Materials Opportunities

EU, Mexico

EU Mexico trade agreement signing marks a major update to a commercial relationship already worth around €100bn/yr in goods and services. The revised deal aims to remove tariffs and non-tariff barriers while creating new opportunities in clean technology, critical raw materials and agri-food trade.

EU Mexico trade agreement provisions will eliminate almost all high Mexican tariffs on EU imports. The affected sectors include machinery, mineral fuels, cars, car parts and a wide range of agri-food products.

EU Mexico trade agreement rules also include legally binding commitments on environmental protection and climate change. This gives the deal a strategic industrial angle beyond conventional tariff reduction.

The interim trade agreement is expected to move faster than the wider modernised global agreement. It needs European Parliament approval and qualified-majority approval from EU member states, rather than ratification by all 27 countries.

Clean Technology and Raw Materials Gain Strategic Relevance

The agreement could strengthen EU-Mexico cooperation in clean technology and critical raw materials. This matters as Europe seeks more diversified supply chains for energy transition equipment, electric vehicles, industrial machinery and advanced manufacturing.

Mexico is already a major manufacturing base linked to North American automotive and industrial supply chains. Better EU access could support machinery, components and clean technology exports into a market positioned between Europe and the US.

The deal also includes strict rules of origin, including for electric vehicles. EU officials said these rules are designed to prevent circumvention and avoid the agreement becoming a backdoor for Chinese production.

That detail is important. As tariffs, subsidies and local-content rules reshape global EV trade, rules of origin are becoming a core tool of industrial policy.

For European manufacturers, clearer access to Mexico may support exports of vehicles, parts, machinery and clean technology systems. For Mexican producers, greater access to the EU could strengthen trade in food, consumer products and selected industrial goods.

Tariff Cuts Combine With Climate and Circular Economy Commitments

Mexico will remove tariffs on key European exports including pork, dairy, cereals, fruit and pasta. Sensitive products will receive limited access through tariff-rate quotas.

The agreement also gives EU exporters broader quota access for dairy, beef, poultry and pork products. In return, Mexican producers will gain more liberalised access to the EU for products including coffee, fruit, chocolate and agave syrup.

Alongside the trade deal, both sides signed a circular economy declaration covering climate change, biodiversity loss and pollution, including plastics. This adds sustainability language to the commercial framework.

The agreement requires both parties to uphold international climate treaties, including the Paris Agreement. It also includes a dedicated dispute settlement procedure.

For metals and industrial supply chains, the wider message is clear. Trade agreements are increasingly combining market access, climate obligations, origin rules and supply-chain security.

The EU is using trade policy to support clean technology, critical raw materials cooperation and industrial competitiveness. Mexico gains deeper access to one of the world’s largest consumer markets while strengthening its role in global manufacturing networks.

The Metalnomist Commentary

The EU-Mexico deal shows how trade policy is becoming a supply-chain security instrument. The rules of origin for electric vehicles may prove as important as the tariff cuts, especially as Europe tries to protect clean technology markets from indirect Chinese competition.

MP Materials USAR Lawsuit Raises Stakes in US Rare Earth Magnet Race

MP Materials USAR

MP Materials USAR lawsuit has opened a new front in the race to build domestic rare earth magnet capacity, with MP accusing rival USA Rare Earth of misappropriating proprietary magnet technology through a former employee. The dispute centres on grain boundary diffusion technology, a key process used to improve high-performance neodymium-iron-boron magnets.

MP Materials USAR lawsuit was filed in Texas Business Court on 26 May. MP is seeking injunctions against all USAR entities and alleges that a former employee improperly disclosed sensitive formulas and processes to the rival company.

MP Materials USAR lawsuit is strategically important because both companies are building large US magnet production platforms. The dispute could affect investor confidence, customer qualification and the timing of domestic magnet supply for defence, automotive and industrial users.

The case also shows that the US rare earth sector has moved beyond mining and separation. Competition is now intensifying around process know-how, metallization, alloying, powder metallurgy and magnet finishing.

Grain Boundary Diffusion Becomes a Competitive Battleground

Grain boundary diffusion is an important technology in high-performance NdFeB magnet production. It can improve magnet performance and reduce the use of costly heavy rare earths in certain applications.

That makes the process commercially valuable. Rare earth magnets used in defence, electric motors, robotics and aerospace systems must meet strict performance, heat resistance and reliability requirements.

MP alleges that its proprietary grain boundary diffusion technology was developed through years of work and significant investment. The company claims former employee Kevin Elkins had access to extremely sensitive formulas and processes before joining USAR.

MP also alleges that USAR recruited several MP employees since 2025, including Elkins and at least seven other key staff. MP described this as part of a broader trade secret raiding campaign.

These remain allegations, and the court process will determine the outcome. But the filing highlights a real industrial issue: skilled people and protected know-how are now as important as rare earth feedstock in the US magnet supply chain.

Legal Dispute Adds Risk to Domestic Magnet Scale-Up

Both companies are trying to scale US magnet production quickly. MP is expanding its Independence facility in Fort Worth, Texas, to 3,000 t/yr, including metallization, alloying, powder metallurgy, grain boundary diffusion and magnet finishing.

MP is also building a larger Texas facility to raise total magnet production to 10,000 t/yr. That expansion is central to its ambition to create a fully integrated rare earth-to-magnet supply chain in the US.

USAR also plans to produce 10,000 t/yr of magnets by 2029, up from current capacity of 4,800 t/yr. The overlap between these expansion targets makes the legal dispute commercially sensitive.

For the US government and downstream customers, the case creates a difficult dynamic. Washington needs multiple domestic magnet suppliers, but those suppliers also need enforceable intellectual property protections.

The dispute could slow collaboration, complicate customer qualification or increase caution around hiring and technology transfer. It may also push rare earth companies to tighten controls over employee access, process documentation and proprietary manufacturing routes.

The broader message is clear. Domestic magnet capacity will not be secured only through capital spending. It will require protected process technology, skilled labour, validated production and trusted commercial behaviour.

The Metalnomist Commentary

The MP-USAR dispute shows that the rare earth magnet race is becoming a technology and intellectual property contest. The US needs faster magnet scale-up, but it also needs clear rules that protect proprietary process know-how while keeping domestic supply-chain development on track.

Gallium and Scandium Waste Recovery Startup Targets Critical Mineral Bottlenecks

Supra Elemental Recovery

Gallium and scandium waste recovery is gaining a new player in the US critical minerals market. Supra Elemental Recovery launched with $2mn to advance its reusable cartridge technology. The company aims to recover metals from industrial byproducts, mine tailings, and electronic waste. As a result, gallium and scandium waste recovery is moving closer to commercial use.

This matters because gallium and scandium remain strategically sensitive materials. Western supply has tightened after Chinese export controls squeezed access to several critical minerals. That pressure has increased across defense, aerospace, and energy-related supply chains. Therefore, US gallium supply and scandium recycling are becoming more important industrial priorities.

The company’s approach also stands out because it focuses on recovery from waste streams rather than new mining alone. Supra says its system uses a reusable sponge-like cartridge to capture target metals. That model could reduce dependence on conventional upstream supply. Consequently, gallium and scandium waste recovery may become a more practical diversification tool.

Critical Mineral Recovery Technology Moves Toward Pilot Scale

Critical mineral recovery technology is becoming more valuable as concentrated supply chains remain a strategic risk. Supra’s system is designed to recover metals from several overlooked sources, including industrial waste and mine tailings. That gives the company access to materials that already exist inside the industrial system. As a result, the business is aligned with the growing push for circular supply models.

The company is also preparing for a commercial pilot in 2026. The initial funding will support further technology development and pilot readiness. That means the project is still early stage, but it is moving beyond pure research. Therefore, critical mineral recovery technology is starting to enter a more commercial phase.

The scientific foundation adds credibility to the effort. Supra’s technology builds on federally supported research at the University of Texas at Austin. That background suggests the company is building from a stronger technical base than a typical early startup. Meanwhile, it aligns with broader US interest in domestic critical minerals innovation.

US Gallium Supply and Scandium Recycling Could Gain a New Pathway

US gallium supply could benefit if Supra proves it can recover high-purity material at meaningful scale. Gallium remains important for semiconductors, electronics, and advanced industrial uses. Scandium also matters for aerospace and other high-performance applications. Therefore, a domestic recovery pathway for both metals would carry strategic value.

The business may also extend beyond these two materials. Supra is testing recovery of cobalt, lithium, and some rare earths. That suggests the company is building a platform rather than a single-metal solution. Consequently, gallium and scandium waste recovery may be only the first step in a broader critical minerals strategy.

The wider market message is clear. Waste recovery is no longer a secondary topic in strategic materials. It is becoming a serious supply option where mining and refining remain exposed to geopolitical concentration. As a result, smaller technology firms may play a bigger role in future critical mineral resilience than their scale first suggests.

The Metalnomist Commentary

This launch matters because it focuses on one of the most overlooked parts of the critical minerals chain: recoverable waste. Gallium and scandium are small-volume metals, but they create outsized pressure when supply tightens. If Supra can prove its process at pilot scale, waste recovery could become a more credible answer to critical mineral concentration.

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

Factorial Energy

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

Revolutionary Energy Density Transforms Drone Performance

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

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

Strategic Market Entry Addresses Defense Supply Chain Security

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

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

Expanding Market Opportunities Beyond Electric Vehicles

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

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

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

The Metalnomist Commentary

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

Ceibo Delivers First Copper Cathode Using Sulphide Leaching Technology in Chile

Ceibo

Innovative Technology Targets Low-Grade Copper Ores

Ceibo, a Chilean copper extraction technology firm backed by Australia’s BHP, has produced its first copper cathodes from a sulphide-leaching operation at Minera San Geronimo (CMSG) in northern Chile. The demonstration plant, constructed earlier this year, employs Ceibo’s proprietary technology to increase copper recovery from low-grade ores without major infrastructure upgrades. This innovation comes as the mining sector seeks efficient, lower-impact solutions to sustain long-term production.

Addressing Global Copper Supply Challenges

Ceibo’s technology has already achieved a 75pc recovery rate in under a year, showing strong potential for commercial scalability. The Paris-based IEA forecasts copper demand to grow by 30pc by 2040, with a looming 30pc primary supply deficit expected by 2035. As a result, technologies like sulphide leaching could play a critical role in bridging the supply gap while reducing environmental impacts. Several global firms are pursuing similar methods to boost extraction efficiency and meet accelerating demand from clean energy, EVs, and infrastructure projects.

The Metalnomist Commentary

Ceibo’s milestone is a timely development for Chile’s copper sector, particularly as high-grade reserves decline. If scaled successfully, this technology could help secure Chile’s position as a leading copper supplier while mitigating environmental concerns and meeting the mining industry’s sustainability goals.

Norsk Titanium RPD Technology Targets US Submarine Applications

Norsk Titanium

Norsk Titanium RPD technology is moving deeper into US defense applications after the company secured a $4.2mn contract to develop rapid plasma deposition for maritime and submarine use.

Norsk Titanium RPD technology will be developed over an 18-month period under the Defense Industrial Base Expansion, Development, and Growth Enterprise initiative. The work will focus on qualifying additive-manufactured products for highly critical naval applications.

Norsk Titanium RPD technology is already established around titanium alloys, but the new programme will also expand the process into nickel-based alloys. That broadens the potential market from corrosion-resistant structural components into higher-temperature and more demanding applications.

The programme is strategically important because submarine supply chains require highly qualified materials, long service lives and strict control over metallurgy and manufacturing consistency.

Titanium Additive Manufacturing Fits Maritime Corrosion Requirements

Titanium is especially valuable in marine environments because of its strong corrosion resistance in seawater.

Commercially pure titanium and alloys such as Grade 5 and Grade 7 can provide long-term durability where conventional steels would require greater corrosion protection or maintenance.

This makes titanium attractive for submarine and maritime components exposed to saltwater, pressure and difficult operating conditions.

Additive manufacturing can add another advantage. Near-net-shape production can reduce the amount of expensive titanium that must be machined away from forged or wrought stock.

That can improve material utilisation and shorten lead times for complex components, particularly where conventional manufacturing requires large forgings or extensive machining.

For defense programmes, reducing dependence on long-lead forgings can be strategically valuable. Qualified additive processes could provide an alternative route for components where supply capacity is constrained.

However, qualification remains the critical barrier. Submarine components operate in safety-critical environments, so mechanical properties, fatigue behaviour, defect control and repeatability must be demonstrated before widespread adoption.

Nickel Alloys Could Expand RPD Beyond Structural Titanium

The move into nickel-based alloys could significantly broaden Norsk Titanium's addressable market.

Nickel superalloys are widely used where components must retain strength, corrosion resistance and thermal stability under demanding conditions.

For naval applications, this could create opportunities in propulsion, high-temperature systems and specialised mechanical components alongside titanium structures.

The combination of titanium and nickel alloy capability would also strengthen Norsk Titanium's position as a broader defense manufacturing supplier rather than a single-material additive producer.

The US defense industrial base is increasingly focused on manufacturing resilience, particularly for components dependent on limited forging, casting or machining capacity.

RPD technology could support that objective if it can reduce lead times while meeting military qualification standards.

The longer-term significance therefore lies in process substitution. Norsk is not simply selling additive manufacturing equipment; it is trying to qualify a new production route for materials and components traditionally supplied through conventional metallurgical processes.

The Metalnomist Commentary

Norsk Titanium's submarine programme shows that additive manufacturing is moving into increasingly critical defense applications. If RPD qualifies successfully in both titanium and nickel alloys, the technology could reduce dependence on long-lead forgings and expand flexibility across the naval supply chain.

Volkswagen and QuantumScape Partner to Advance Solid-State Battery Production

In a significant move to enhance electric vehicle (EV) battery technology, Volkswagen (VW) has entered into a licensing agreement with US-based QuantumScape. VW's battery subsidiary, PowerCo, will leverage QuantumScape's advanced solid-state battery technology to scale up production.

Innovative Technology for Mass Production

Under the non-exclusive deal, PowerCo is authorized to manufacture up to 40 GWh per year using QuantumScape's solid-state battery technology, with the potential to expand production to 80 GWh annually. This capacity would be sufficient to power approximately one million electric vehicles per year. The companies announced this partnership on Thursday, emphasizing its potential to meet the growing global demand for improved EV batteries.

Technological Breakthrough

QuantumScape's cutting-edge technology utilizes a solid-state ceramic separator, enabling the use of a pure lithium-metal anode. This innovation promises significant advancements in battery performance, including higher energy density, faster charging times, and improved safety compared to traditional lithium-ion batteries. The partnership between VW and QuantumScape aims to expedite the production of these next-generation batteries, providing a crucial boost to the EV market.

Future Production Plans

While PowerCo has not yet disclosed the specific timing or locations for the production facilities under this agreement, the collaboration marks a strategic shift from the previously planned joint venture between Germany-based Volkswagen and California-based QuantumScape. The new licensing arrangement allows PowerCo greater flexibility in manufacturing while continuing to benefit from QuantumScape's pioneering technology.

A Strategic Pivot

This deal replaces the earlier joint venture between the two companies, reflecting a strategic pivot to better address the rapidly evolving demands of the EV market. By licensing QuantumScape's technology, VW aims to streamline its production processes and accelerate the deployment of high-performance solid-state batteries.

As the automotive industry increasingly shifts towards electric mobility, collaborations like this highlight the importance of innovative partnerships in driving technological progress and meeting the global need for sustainable transportation solutions.

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.

China Sinopec CATL Investment Accelerates EV Battery Exchange Network Expansion

Sinopec CATL

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

Record IPO Success Validates Strategic Partnership Value

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

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

Strategic Project Targets Heavy Vehicle Transportation

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

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

Traditional Energy Companies Embrace New Energy Transition

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

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

The Metalnomist Commentary

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

Clean Energy Technology Market Set to Outgrow Oil by 2035

Clean energy

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

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

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

Manufacturing Investment Slows as Capacity Surplus Builds

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

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

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

Grids and Supply Chain Resilience Become the Critical Battleground

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

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

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

The Metalnomist Commentary

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