Core Insights - POSCO Holdings Inc.'s POSCO Future M is focusing on lithium iron phosphate (LFP) cathode materials through a joint venture with CNGR and its Korean subsidiary, FINO, to construct an LFP cathode material plant [1][8] - The construction of the LFP cathode material plant at Pohang's Yeongil Bay General Industrial Complex is set to begin in 2026, with mass production expected to start in 2027 and an initial capacity of up to 50,000 tons annually [2][8] - The company aims to establish a comprehensive LFP cathode material business while enhancing collaboration with CNGR and FINO in production, technology, and marketing [3][8] Production Plans - POSCO Future M plans to convert parts of its existing high-nickel production lines at the Pohang plant to LFP production, allowing for earlier market entry with supplies expected in the second half of 2026 [4][8] Market Context - LFP batteries, while offering lower output than ternary batteries, are gaining popularity due to their cost-effectiveness and longer lifespan, particularly in energy storage systems (ESS) and entry-level electric vehicles [3]

Core Viewpoint - Nickel is experiencing a bullish trend after a bearish year, with a 5.5% rally in a month, but its sustainability remains uncertain [1] Market Dynamics - Nickel prices fell significantly, reaching as low as $14,600 per ton last month, leading to major Western producers shutting down operations due to oversupply and battery substitution concerns [1][4] - The demand for stainless steel and electric vehicles (EVs) initially drove nickel production from 800,000 metric tons in 2019 to 2.2 million in 2024, resulting in a structural surplus [3][4] - The International Nickel Study Group projected a surplus of 179,000 tons in 2024, increasing to 198,000 tons in 2025, with LME warehouse inventories exceeding 254,000 tons [4] Demand Trends - Demand for nickel-rich battery chemistries is growing slowly, with nickel-free LFP batteries increasing by 7% year-on-year compared to just 1% for nickel-bearing batteries by late 2024 [5] - Policy changes, such as the repeal of the US$7,500 EV tax credit, have negatively impacted EV sales and sentiment [5] Supply Chain Risks - Indonesia dominates nickel production, accounting for over half of global output in 2025, but this concentration poses systemic risks due to environmental concerns and reliance on coal power [6][7] - Australia's nickel production has significantly declined from over 150,000 tons to about 60,000 tons due to high operational costs compared to Indonesia [8] Future Outlook - Nickel's demand outlook remains in the mid-single digits, with expectations of doubling battery demand by 2030 despite the LFP trend [10] - A potential shift from surplus to deficit in the late 2020s is anticipated, driven by the continued reliance on nickel-rich chemistries for high-performance EVs [11] - The market faces risks from Indonesia's continued output growth and the rapid adoption of alternative battery technologies [12] Investment Perspective - Nickel is viewed as a deep-value contrarian commodity, with potential for rebalancing despite current oversupply and dependence on a politically complex supplier [13]

Core Insights - The AI sector is facing challenges due to energy and infrastructure limitations, shifting the focus from technology to the raw materials and infrastructure needed to support it [4][6][27] - First Phosphate Corp. is positioned as a key player in the mining sector, particularly in the production of Lithium Iron Phosphate (LFP) batteries, which are essential for the AI and electric vehicle industries [11][20][21] Industry Overview - The digital revolution relies heavily on physical resources, with energy and critical minerals becoming increasingly important for technology advancements [4][6] - Mining companies, especially those focused on critical minerals like phosphate, lithium, and iron, are emerging as significant investment opportunities as tech valuations reach high levels [7][8] Company Highlights - First Phosphate Corp. has developed a fully integrated North American supply chain for LFP batteries, utilizing domestically sourced critical minerals [11][25] - The company has achieved a +150% year-to-date increase, indicating strong market performance and investor interest [17] - First Phosphate's model eliminates dependence on foreign supply chains, providing a reliable and sustainable source of battery materials [25] Strategic Positioning - The U.S. Interior Department has added phosphate to its Critical Minerals list, enhancing the strategic importance of First Phosphate's operations [9] - The company is uniquely positioned at the intersection of mining and technology, appealing to investors looking for both resource security and technological scalability [20][21] - Government incentives and policies favor companies like First Phosphate, which are focused on domestic production of critical minerals [26] Future Outlook - Global demand for LFP batteries is expected to grow significantly as industries pivot towards sustainable solutions, positioning First Phosphate as a leader in this market [21][22] - The company's vision includes extracting and processing North American critical minerals to support the next generation of technology and clean energy infrastructure [14][27]

Core Insights - Tesla's battery supplier CATL and rival BYD continue to lead the global EV battery market in 2025 [1] Group 1: Global Battery Market Growth - Global battery installations from January to August reached 691.3 GWh, representing a 34.9% year-over-year increase [2] - CATL maintained the top position in global battery usage with a 31.9% growth, totaling 254.5 GWh [2] - BYD secured the second position with a significant growth rate of 50.3%, amounting to 124.8 GWh [2] Group 2: Company Rankings and Partnerships - LG Energy Solutions ranked third with a 13.3% growth, achieving 67.4 GWh of battery installations and capturing 9.7% of the global market [3] - LG Energy Solutions signed a $4.3 billion deal to supply Tesla with LFP batteries for energy storage units [3] - SK On ranked fifth with a 4.2% market share, accounting for 29.2 GWh of installations and growing 20.3% [4] - SK On has a partnership with Ford to manufacture batteries at the BlueOval SK plant in Kentucky [4]

Core Points - The Department of Energy is proposing significant cuts to federal funding, which could impact various startups and major automakers like Ford, General Motors, and Stellantis [1][2] - The proposed cuts include the cancellation of over $500 million in contracts awarded to more than a dozen startups, in addition to previous cuts of more than $7.5 billion announced by the Trump administration [2][3] Impact on Startups - Startups are expected to face substantial losses, with some awards being critical to their operations. The proposed cuts include new awards that have not been publicly announced yet [5] - Notable startups affected include Brimstone, which was granted $189 million to build a plant for low-carbon materials, and Anovion, which aimed to produce synthetic graphite for lithium-ion batteries [6] Impact on Automakers - General Motors stands to lose at least $500 million from a federal grant intended for retooling its Lansing Grand River Assembly Plant for electrified vehicle production [4] - Other automakers, including Daimler Trucks North America, Harley-Davidson, and Volvo Technology of America, are also slated to lose grants worth hundreds of millions [3] Specific Grants Affected - Li Industries received $55.2 million for recycling LFP batteries, while Sublime Systems was awarded $86.9 million for an ultra-low-carbon cement plant. Both are at risk of losing their funding [7]