Group 1 - LG Energy Solution (LGES) will take full control of NextStar Energy, a joint venture that established Canada's first large-scale EV battery factory in Windsor, Ontario, with Stellantis selling its 49% stake [1] - The ownership transition is a strategic decision made by LGES and Stellantis, aimed at ensuring a seamless transition and enhancing long-term growth prospects for NextStar Energy [2] - NextStar Energy will utilize LGES's technological leadership and operational expertise to better serve a wider customer base, including the Energy Storage System (ESS) industry, and to adapt to market demands [3] Group 2 - The facility has seen over $5 billion CAD invested and currently employs over 1,300 people, with a target of reaching 2,500 employees as production scales up [4] - NextStar Energy is positioned to strengthen North America's battery manufacturing ecosystem by onshoring critical capabilities to meet the needs of the automotive sector and other strategic industries [5] - LGES views the full ownership of NextStar Energy as a means to capitalize on growth opportunities in North America and to secure additional customers in the EV industry [6]

Flash | Anna Wang 27 Jan 2026 10:41:05 ET │ 9 pages China Battery Materials China Battery Supply Chain on the Ground: Resilient demand despite seasonality; concern on cost inflation CITI'S TAKE Our channel check with ZE Consulting suggests the top four battery makers' production pipeline might be down by 11% MoM in February, as Gotion is yet to update its plan (likely due to higher costs lately). That said, demand remains resilient even though we are heading into slack season amid the Chinese New Year, as t ...

Core Insights - The battery supply chain has delivered exceptional returns in 2025, outperforming the focus on artificial intelligence, particularly benefiting electric vehicles and grid storage [1] Group 1: Performance Overview - The Amplify Lithium & Battery Technology ETF (BATT) returned 66% year-to-date in 2025, significantly outperforming the Nasdaq-100's 22% gain [2][3] - Battery materials outperformed finished vehicles, with Albemarle surging 78% and Freeport-McMoRan jumping 41%, while Tesla gained only 18% [3][6] Group 2: Investment Strategy - BATT's strategy involves diversified exposure across the entire battery ecosystem, including lithium miners, copper producers, battery component manufacturers, and select EV companies [2][5] - The top holdings include BHP Group (7.25%), Contemporary Amperex Technology (CATL) (6.72%), Tesla (6.35%), and BYD (4.79%), focusing on the picks-and-shovels opportunity rather than individual automakers [5] Group 3: Market Dynamics - The ETF's performance is driven by rising demand for battery materials due to accelerating EV adoption and a commodity supercycle benefiting lithium and copper producers [8] - The fund has a 74% international exposure, particularly to Asian battery manufacturers like CATL and Samsung SDI, capturing growth in the largest EV markets [8] Group 4: Fund Characteristics - BATT serves investors seeking thematic exposure to electrification while minimizing individual stock volatility, with a reasonable expense ratio of 0.59% [7] - The fund's $90.8 million asset base allows for nimbleness in accessing smaller opportunities while maintaining adequate liquidity [7]

Summary of the Conference Call on China Battery Materials Industry Overview - The report focuses on the **China Battery Supply Chain**, particularly the **battery materials industry** and **electric vehicle (EV) battery production** [1][3]. Key Insights - **Production Trends**: The production pipeline of the top five battery makers is expected to remain flat month-over-month (MoM) and show a 48% year-over-year (YoY) increase, reaching approximately **148 GWh** in December 2025 [1][3]. - **EV Battery Demand**: There is a noted decline in EV battery production due to: 1. The approach of a traditional slack season. 2. The consumption of front-loading demand as China plans to halve the purchase tax exemption for EVs starting January 1, 2026 [1]. - **Energy Storage Systems (ESS)**: Demand for ESS batteries remains strong, which is helping to offset the downturn in EV battery demand [1]. - **CATL's Production**: CATL, a leading battery manufacturer, is projected to increase its production pipeline by **4% MoM** in December 2025, indicating robust operational capacity [1]. Financial Valuation - **CATL Valuation**: - The target price for CATL's Hong Kong shares is set at **HK$621/share**, based on a **17.3x 2025E EV/EBITDA** multiple, which is 0.15 standard deviations above its historical average [8]. - For CATL's A-shares, the target price is **Rmb571/share**, also based on a **17.3x 2026E EV/EBITDA** multiple [10]. Risks Identified - The report highlights several risks that could impact CATL's stock performance: 1. Lower-than-expected demand for EVs. 2. Increased competition in the EV battery market, potentially reducing CATL's market share. 3. Higher-than-expected raw material costs [9][10]. Production Forecasts - **Cathode Production**: Expected to increase by **1% MoM** [4]. - **Anode Production**: Anticipated to remain flat MoM [5]. Conclusion - The China battery materials industry is currently experiencing a mixed landscape with strong ESS demand counterbalancing the seasonal decline in EV battery production. CATL remains a key player with positive production forecasts and a solid valuation outlook, although it faces significant risks that could affect its market position and stock performance [1][9][10].

Core Insights - CATL has initiated the construction of Spain's largest battery manufacturing facility in collaboration with Stellantis, with an investment of €4.1 billion ($4.8 billion) in Aragon, expected to start production by late 2026 [1][2] - The project is supported by over €300 million in funding from the European Union, highlighting the strategic importance of battery manufacturing in Europe [1] - The factory aims to contribute significantly to the re-industrialization of Europe, as stated by Spain's Industry Minister [2] Investment and Employment - The facility will involve approximately 2,000 Chinese workers during construction, with plans to employ and train around 3,000 Spanish workers as operations progress [2][4] - Local unions are collaborating with CATL to design training programs for Spanish workers, emphasizing the need for skill development in new technologies [4] Technological and Industrial Context - The Aragon region is positioning itself as a hub for battery manufacturing, benefiting from lower labor costs and industrial energy prices compared to other European regions [4] - The project is part of a broader trend, with three additional battery plants planned in Spain involving other companies like Envision AESC, Volkswagen's PowerCo, and InoBat [5] - There are concerns regarding technological capabilities, as the region has limited experience with the required components and technologies [3][5] Regulatory Environment - The project is occurring amid calls from European automotive industry bodies for stricter local content rules in vehicle and battery production to protect domestic manufacturers from Chinese competition [6]

Core Viewpoint - First Phosphate Corp. successfully closed an oversubscribed private placement, raising a total of $2.18 million from existing and follow-on investors, indicating strong investor interest and confidence in the company's strategic direction [1][2]. Financing Details - The company issued 2,244,722 Flow-Through Shares at a price of $0.90 per share, generating gross proceeds of $2,020,250, and 177,666 Hard Dollar Units at the same price, yielding gross proceeds of $159,899 [2]. - Since June 2022, First Phosphate has raised approximately $42.2 million through 10 management-led non-brokered private-placement financings [3]. Compensation and Warrants - In connection with the Offering, the company issued 178,698 compensation common shares and 178,698 Compensation Warrants, which are exercisable at $1.25 per common share until April 30, 2026, with an Accelerated Expiry Date clause [3][4]. - The Compensation Warrants can be accelerated if the volume-weighted average trading price of the common shares exceeds $2.00 for five consecutive trading days [4]. Company Overview - First Phosphate is focused on developing a vertically integrated lithium iron phosphate (LFP) battery supply chain for North America, targeting markets such as energy storage, data centers, robotics, mobility, and national security [5]. - The company's flagship property, Bégin-Lamarche, is located in Saguenay-Lac-Saint-Jean, Quebec, and is noted for its high-purity phosphate resource [7].

Summary of the Conference Call on China Battery Materials Industry Overview - The report focuses on the **China Battery Materials** industry, particularly the battery supply chain and production dynamics for energy storage systems (ESS) and lithium iron phosphate (LFP) batteries. Key Insights - **Production Growth**: The production pipelines of the top five battery makers are projected to increase by **7% month-over-month (MoM)** and **45% year-over-year (YoY)**, reaching approximately **145 GWh** despite a high base effect from the previous year [1][2][3]. - **ESS Demand**: There is a strong demand for ESS batteries, contributing to the upward momentum in production pipelines [1]. - **LFP vs. NCM Production**: The LFP battery production pipeline is expected to rise by **9% MoM** in November 2025, while the NCM battery production pipeline remains relatively flat [1]. - **Stockpiling Strategy**: Some battery manufacturers are planning to stockpile batteries and battery materials in November due to rising average selling prices (ASP) of key materials such as LiPF6, separators, and lithium carbonate [1]. - **Top Picks**: Recommended companies in the supply chain include **CATL**, **EVE**, **CALB**, and **Hunan Yuneng** [1]. Additional Important Information - **Market Trends**: The diminishing seasonality impact on production indicates a more stable demand environment for battery materials [1]. - **Material Price Trends**: Recent trends show an increase in the ASP of battery materials, which may influence production strategies and profitability for battery manufacturers [1]. - **Forecasts**: The report includes forecasts for lithium production, cathode production, anode production, and electrolyte production, all expected to grow by **4% MoM** and **3% MoM**, respectively [5][8][9][10]. This summary encapsulates the essential points from the conference call regarding the China Battery Materials industry, highlighting production forecasts, demand dynamics, and strategic insights for key players in the market.

Core Insights - Falcon Energy Materials plc is making significant progress in constructing its pilot plant in Jorf Lasfar, Morocco, which positions the company as a leader in developing large-scale, high-purity coated spherical purified graphite (CSPG) for the global battery industry outside of China [1][6][11] - The pilot plant is on track for completion and commissioning in Q4 2025, which is crucial for securing long-term offtake agreements for Falcon's proposed 25,000 tonnes per annum (tpa) commercial scale anode facility [2][4][10] Group 1: Pilot Plant Development - The pilot plant is being developed within the industrial complex of Falcon's strategic partner Fluoralpha S.A. at Jorf Lasfar, benefiting from advanced industrial infrastructure and proximity to European and North American markets [4][6] - Civil construction is progressing steadily, with the completion of the pilot plant building and ancillary infrastructure expected by late 2025 [5][10] - The pilot plant has been fully commissioned and tested at Hensen Graphite Carbon Corporation's facility in China, ensuring optimized performance before shipment to Morocco [8][10] Group 2: Customer Engagement and Production - The first CSPG samples have been produced and delivered to three potential customers, who have initiated large-scale qualification programs [1][9] - Two distinct specifications of CSPG have been tailored to customer requirements, with 50kg sample batches currently under evaluation [9] - Falcon has procured and assembled all necessary equipment to produce large-scale CSPG samples for potential customers [8][10] Group 3: Strategic Partnerships and Future Outlook - The strategic partnership with Hensen and Fluoralpha is aimed at developing a comprehensive industrial value chain to lead the global battery market [11] - Falcon aims to become a fully integrated supplier of battery anode materials, with plans for a high-purity graphite production mine in Guinea and a CSPG conversion facility in Morocco [11][12] - The company is committed to sustainability and supply chain transparency, supported by attractive operating costs and strong ESG credentials [12]

Summary of Key Points from the Conference Call Industry Overview - **Industry**: China Battery Materials - **Focus**: Battery supply chain and production pipeline for September 2025 Core Insights - **Production Pipeline Growth**: The production pipeline of the top-5 battery makers is expected to increase by approximately 4% month-over-month (MoM) and 35% year-over-year (YoY) to around 120 GWh, indicating a continuation of the upward trend into September 2025 [1] - **Demand Factors**: The resilient demand from Energy Storage Systems (ESS) is partially offsetting the slowing momentum in New Energy Vehicles (NEV) [1] - **Production Adjustments**: There may be a pull-forward in production due to volatile carbonate prices, which is influencing supply responses from spod-based OEM processing [1] - **Lithium Production Decline**: The lithium production pipeline is projected to decrease by about 2% MoM, equating to approximately 2,100 tons, as current carbonate prices incentivize increased supply [1] Company-Specific Insights - **EVE Energy**: Strong demand in ESS aligns with a positive outlook for EVE Energy, which is expected to support average selling price (ASP) increases and margin expansion in the second half of 2025 [1] - **Valuation of EVE Energy**: The company is valued at RMB 59.20 per share using a Sum-of-the-Parts (SOTP) approach, with the battery business valued at RMB 52.2 per share based on a 16x 2025E EV/EBITDA multiple [14] - **Risk Assessment**: EVE Energy is rated as high risk based on quantitative models, but qualitative factors such as a solid market position and growth outlook mitigate this risk. Key downside risks include potential impacts from COVID-19-like situations, slower EV penetration in a low oil price environment, and rising raw material costs [15] Additional Important Information - **Production Forecasts**: - Cathode production is forecasted to increase by 1% MoM [5] - Anode production is expected to rise by 2% MoM [7] - Electrolyte production is also projected to grow by 2% MoM [11] - **Market Dynamics**: The overall dynamics in the battery materials sector are influenced by both demand from ESS and fluctuations in raw material prices, which are critical for production planning and pricing strategies [1][15]

Group 1 - Proactive provides fast, accessible, informative, and actionable business and finance news content to a global investment audience [2] - The news team covers medium and small-cap markets, as well as blue-chip companies, commodities, and broader investment stories [3] - Proactive's content includes insights across various sectors such as biotech, pharma, mining, natural resources, battery metals, oil and gas, crypto, and emerging technologies [3] Group 2 - Proactive is committed to adopting technology to enhance workflows and content production [4] - The company utilizes automation and software tools, including generative AI, while ensuring all content is edited and authored by humans [5]