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Japan’s Nissan to build LFP battery plants in Kyushu

  • Market: Battery materials, Metals
  • 22/01/25

Japanese automobile manufacture Nissan will build new lithium-iron-phosphate (LFP) battery plants in Kyushu, in line with its electrification strategy, the company announced today.

Nissan plans to start building the new facilities during the April 2025-March 2026 fiscal year, before starting mass production in 2028-29, according to the firm.

Nissan did not disclose the production capacity of the new plants, but it is expected to be around 5 GWh/yr, according to the country's ministry of trade and industry (Meti). Meti will provide a maximum subsidy of ¥56bn ($359mn) for Nissan's investment in the LFP plants, which should account for around one-third of the total investment amount.

Building the new LFP plants is part of Nissan's wider battery strategy to secure 135 GWh/yr of global production capacity by 2030-31, with its facilities in Japan expected to total 10 GWh/yr of production capacity. A breakdown by battery type, LFP or lithium-nickel-cobalt-manganese (NCM), is not available.

Nissan has been the country's leading electric vehicle (EVs) manufacturer, but it is struggling to make profits partly because of weak EV demand. The company's net profit slumped by 94pc on the year to ¥19.2bn in April-September. This prompted it to cut global car production capacity, including for EVs, by 20pc to around 4mn units/yr.

Nissan in December 2024 started merger negotiations with fellow manufacturer Honda, aiming to collaborate on the electrification of automobiles. But Honda suggested that Nissan's financial situation could cause the proposed merger to be scrapped.


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12/02/25

Tesla sales slump on ageing line up, competition

Tesla sales slump on ageing line up, competition

London, 12 February (Argus) — US firm Tesla's electric vehicle (EV) sales have continued to fall this year — but as a result of structural factors, such as increased competition, duties and the arrival of Chinese carmakers in the market, and not because of chief executive Elon Musk's public profile, market participants have told Argus . Tesla's European sales fell by 11pc in 2024, having risen by 56pc in 2023 (see graph) . In January 2025, Tesla's sales fell by 63pc on the year in France, 59.5pc in Germany, 44.3pc in Sweden, and 37.9pc in Norway. The smaller 7.8pc fall in the non-EU UK could be explained by the different tariff regime. Some Tesla models sold in Europe are manufactured in Shanghai, and the UK has decided not to impose tariffs on Chinese-made EVs, while the EU imposed a 7.8pc duty on Tesla's Chinese-made EVs in October. Demand for Teslas in the UK, France, Germany and US began to decline in April last year, according to Ben Marks, founder of Electrify Research. Marks also pointed to "notable drops in July and October, by which time Tesla had fallen from the first to fourth-placed brand — trailing Audi, BMW and VW". According to a survey conducted last month by car testers Electrifying.com, of 455 non-EV drivers, 56pc would be happy to buy Chinese, while 59pc have been put off buying a Tesla by the public profile of chief executive Elon Musk, although some market participants pointed to other problems. "Tesla's problems are likely not to do with British motorists' perceptions of Elon Musk, and more to do with the fact that Tesla haven't released a new car since the Model Y, while its competitors have been playing catch-up," independent transport research organisation New AutoMotive's chief executive, Ben Nelmes, said. And with Chinese EV makers now in Europe, and over 130 mainstream EV models available in the UK, "competition has never been fiercer", Electrifying.com chief executive Ginny Buckley told Argus . "[Tesla's] dominance is no longer guaranteed." Meanwhile, Slovakian battery maker InoBat's vice-chair, Andy Palmer, said Tesla "needs to think long and hard about its positioning and product offers if it wants to stop bleeding market share". Tesla models also rely on production of a battery chemistry that is increasingly concentrated in China (see graph) . Standard-range versions of Tesla's best-selling Model 3 and Model Y both use lithium iron phosphate (LFP) batteries, rather than premium nickel-cobalt-manganese-based (NCM) batteries. And while input costs of LFP-based EVs have edged down to a discount to NCM-based EVs (see graphs) , domestic LFP production has enabled Chinese carmakers such as BYD to sell their models at prices that are increasingly competitive with Tesla . Tesla better placed to cope than legacy carmakers Tesla's Model Y is still comfortably the best-selling EV model, according to research firm Jato Dynamics. "One of the things with car sales, particularly retail sales — it's not logical, otherwise everyone would drive a Toyota Corolla. People drive the new shiny things. Tesla used to be the shiny thing with the Model Y, but not so much now," the founder of ratings service The Car Expert, Stuart Masson, told Argus . Until recently, Tesla "showed you don't have to make design changes for the sake of it" according to Masson, going against prevailing wisdom. Tesla's cars often still topped ratings for safety, battery efficiency and technology after 3-4 years on the road. Tesla is "better placed to cope" with Chinese competition because it "doesn't have a lot of legacy infrastructure", Masson added. The firm has never had dealers, as conventional carmakers have, or big showrooms that require steady monthly sales. Instead, it operates its own showrooms and interacts with customers directly over the internet, cutting out the middleman used by established dealer networks. Volkswagen, by contrast, "can't sack anyone in Germany because of the unions and local government that have seats on the board; they veto any attempts", Masson said. "It's haemorrhaging money, and it knows full well that most expensive factories are in Germany, but it can't get rid of them." Volkswagen Group's operating profit dropped by 42pc on the year to €2.9bn in the third quarter of 2024 and its operating margin was just 3.6pc. Tesla also makes a much bigger profit from EVs than any western car company, so it can better afford to reduce prices. The firm is also now much more than just a carmaker, Masson added, having launched an energy storage gigafactory in Shanghai this week. "From cars to battery storage, superchargers, robo-taxis and robo-vans, they've launched several concepts that have never gone to production, but they tend to find their feet in every market," Masson said. "I think it will still be okay, but we're not going to see continued growth of 100pc per year … I think there are a lot of car companies that are in far more trouble." By Chris Welch Tesla annual BEV sales in Europe China monthly battery production GWh NCM EV input material price model $ LFP EV input material price model $ Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Mexico factory output dips 1.4pc in December


12/02/25
News
12/02/25

Mexico factory output dips 1.4pc in December

Mexico City, 12 February (Argus) — Mexico's industrial production fell 1.4pc in December from the previous month with broad weakness across multiple sectors on tariff uncertainty and weak domestic demand. The result marks the largest monthly decline of 2024 and was weaker than the 1pc decline forecast by Mexican bank Banorte. It followed a nearly flat reading in November. Trade uncertainty and low domestic demand weighed on industrial production in December, said Banorte, with industry "sluggishness" likely through mid-2025. Manufacturing, which represents 63pc of Inegi's seasonally adjusted industrial activity indicator (IMAI), decreased by 1.2pc after rising 0.7pc in November. Transportation equipment manufacturing output, which comprises 24pc of the manufacturing component, has fluctuated in recent months, falling 6.4pc in December after a 3.6pc uptick in November and a 4.4pc decline in October. Despite this, Mexico's auto sector achieved record annual light vehicle production and exports in 2024. However, Mexican auto industry associations confirm investment in the sector has begun to slow on uncertainty tied to concerns over potential US tariffs and slow economic growth in 2025. Taking the base case that tariffs do not materialize, Banorte expects manufacturing to rebound in the second half of the year as uncertainty lifts and interest rates fall with rate cuts at the central bank. Mining, which makes up 12pc of the IMAI, was lower by 1pc in December, following a 0.5pc increase in November. The decline was again driven by the oil and gas production, falling by 2.5pc in December to mark a sixth consecutive monthly decline for hydrocarbons output. Construction, representing 19pc of the IMAI, contracted by 2.1pc in December with setbacks in all categories. This matched the November result, with Inegi recording declines in construction in five of the last seven months. From a year prior, industrial production fell by 2.4pc in December , while manufacturing fell by 0.3pc and construction declined by 7.1pc in December. Mining was down by 6.2pc. B y James Young Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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US inflation quickens to 3pc in January


12/02/25
News
12/02/25

US inflation quickens to 3pc in January

Houston, 12 February (Argus) — US consumer inflation accelerated in January to the fastest pace in half a year, supporting the Federal Reserve's recent decision to pause in its course of rate cuts. The consumer price index (CPI) rose by 3pc in January from a year before, accelerating from 2.9pc in December, the Bureau of Labor Statistics reported today. That marked a fourth month of annual gains from a low of 2.4pc in September. Core inflation, which strips out volatile food and energy, rose by an annual 3.3pc in January from 3.2pc in December. The acceleration in inflation reinforces the Fed's decision last month to hold its target rate steady after three prior rate cuts. The Fed has said it does "not need to be in a hurry" to change its stance while it weighs the impacts of President Donald Trump's tariff policies and other "incoming information". Trump won the November election partly on a pledge to bring down inflation. The energy index rose by 1pc in January following a 0.5pc contraction through December. Gasoline fell by 0.2pc in January after a 3.5pc contraction through December. Piped gas rose by 4.9pc for a second month. Food rose by an annual 2.5pc, matching the prior month's annual gain. Eggs surged by an annual 53pc, as avian flu has slashed supply. Shelter rose by 4.4pc, accounting for 30pc of the overall monthly gain in CPI, slowing from 4.6pc in December. Services less energy services rose by 4.3pc in January following a 4.4pc gain New vehicles fell by 0.3pc after a 0.4pc contraction. Transportation services rose by an annual 8pc in January after a 7.3pc gain in December. Car insurance was up by an annual 11.8pc and airline fares were up by 7.1pc. CPI accelerated to 0.5pc in January from the prior month, the most since August 2023. That followed a monthly gain of 0.4pc in December, 0.3pc in November and three prior months of 0.2pc gains. By Bob Willis Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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China’s CNGR to end investment in nickel JV with Posco


12/02/25
News
12/02/25

China’s CNGR to end investment in nickel JV with Posco

Singapore, 12 February (Argus) — Major Chinese lithium-ion battery cathode active material (CAM) precursor manufacturer CNGR will terminate investment in a nickel refinery joint venture with South Korean multi-sector company Posco Holdings, it announced today. The joint venture, Posco CNGR Nickel Solution, will be liquidated after the termination. The decision is part of efforts to reduce investment risks and protect investors' interests in the face of a weak electric vehicle (EV) market. A slowdown in global EV demand has led to slower growth in battery installations in 2024 compared with a year earlier, South Korean market intelligence firm SNE Research reported. CNGR and Posco announced plans in June 2023 to build a production facility for nickel and lithium-ion battery precursors in Pohang, South Korea. The plant was intended to have a design capacity of 50,000 t/yr metal equivalent for nickel sulphate and 110,000 t/yr for lithium-ion battery precursors, which was expected to meet demand from 1.2mn units of EVs. Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Cyclone Zelia threatens Australian Fe, Li, Mn exports


12/02/25
News
12/02/25

Cyclone Zelia threatens Australian Fe, Li, Mn exports

Sydney, 12 February (Argus) — Cyclone Zelia off Western Australia's (WA) Pilbara coast is on track to make landfall on 13 February, threatening iron ore, lithium and manganese exports from the region. Australia's Bureau of Meteorology (BoM) expects the cyclone to develop into a relatively rare and extremely powerful category three system on 13 February, as it starts heading towards WA's mines. The Pilbara Ports Authority (PPA) will close Port Hedland — Australia's largest iron ore export hub — at 6pm local time (7am GMT) on 12 February, having started clearing ships out of its berths a day earlier. Port Walcott — a smaller export facility to the west of Port Hedland — is also emptying its berths, in preparation for the cyclone. Cyclone Zelia on 14 February will pass over a part of WA where Fortescue's Iron Bridge mine, Mineral Resources' Wodgina lithium mine, Pilbara Minerals' Pilgangoora lithium mine, and three of Atlas Iron's mines are located, according to BoM forecasts. The cyclone will then move south over Fortescue's Christmas Creek and Cloudbreak iron ore mines, the Roy Hill iron mine, and Consolidated Minerals' Woodie Woodie manganese mine early on 15 February, before losing energy and dissipating by the next morning. Cyclone Zelia is the third weather system to disrupt WA's ports this year. Cyclone Sean flooded parts of Port Dampier and forced PPA to close all of its export facilities for two days at the end of January. Ships subsequently started moving out of Port Walcott and Port Dampier over the first week of February because of Cyclone Tahlia, driving Rio Tinto's exports to their lowest point since at least January 2019 . But WA has experienced extreme weather events before. Cyclone Veronica shuttered three WA ports for nearly a week in March 2019 . Cyclone Ilsa in April 2023 also drove PPA to close Port Hedland for two days . The four main iron ore prices that Argus assesses have risen over the last month. Argus' Iron ore fines 62pc Fe (ICX) cfr Qingdao price rose to $105.80/t on 11 February, from $97.90/t on 13 January. By Avinash Govind Iron ore prices $/t Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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