China’s Huayou reported stronger 2025 production across cobalt, nickel, lithium carbonate, cathode active materials (CAM), and precursor products, highlighting the company’s growing role in the global battery materials supply chain. The production gains also underline Huayou’s strategy of combining upstream raw material control in Africa and Indonesia with expanding downstream cathode capacity in China and Europe.
Nickel Growth Leads Huayou’s 2025 Expansion
Huayou posted the strongest growth in nickel products in 2025. The company produced 292,500t of nickel metal equivalent, up 59% from a year earlier, supported by stable high output from its Huayue and Huafei high-pressure acid leaching projects in Indonesia. Mixed hydroxide precipitate shipments reached 236,500t, rising 30% year on year.
The company is also expanding its Indonesian pipeline. Huayou started building the Pomalaa MHP project in the first half of 2025, with planned capacity of 120,000 t/yr of nickel metal equivalent and targeted construction completion by the end of 2026. Work is also progressing on the 60,000 t/yr Sorowako MHP project, while the 40,000 t/yr Huaxing pyrometallurgical project has also entered construction.
This expansion matters because Indonesia remains one of the most important growth centers for battery-grade nickel feedstock. By deepening its position there, Huayou is strengthening long-term supply security for its battery materials business while increasing its influence across the nickel value chain.
Cobalt and Lithium Output Also Move Higher
Huayou produced 51,197t of cobalt metal equivalent of refined products in 2025, up 4.5% from a year earlier. The company sources most of its cobalt feedstock from the Democratic Republic of the Congo and Indonesia, keeping its supply base tied to the two most important global cobalt-producing regions.
Lithium carbonate output rose to 51,728t in 2025, up 25% from 2024. Huayou said operating efficiency at the Arcadia lithium mine in Zimbabwe continued to improve, helping secure competitive raw material supply for downstream processing. Proven resources at Arcadia increased to 2.45mn t of lithium carbonate equivalent, while ore grade improved to 1.34%.
The company also completed a 50,000 t/yr lithium sulphate project in Zimbabwe, which entered trial production in the first quarter of this year. That step supports a more integrated mine-to-processing model and strengthens Huayou’s position in lithium chemicals at a time when battery producers continue to prioritize raw material security and cost competitiveness.
CAM, Precursors and Overseas Projects Build Demand Visibility
Huayou’s precursor and cathode materials business also expanded in 2025. Output of lithium nickel-cobalt-manganese oxide precursors reached 109,066t, up 7.2% year on year. CAM production, including NCM and lithium cobalt oxide materials, rose sharply by 87% to 122,109t.
The company has also locked in meaningful downstream demand. Huayou said it secured long-term supply contracts covering 215,800t of cathode materials and 155,600t of precursors. These include a memorandum covering 79,600t of ternary precursors with an internationally recognized customer, a 127,800t ultra-high-nickel cathode materials contract with EVE Energy, and orders from LG Energy Solution covering 76,000t of precursors and 88,000t of cathode materials.
Outside China, Huayou’s first-phase 25,000 t/yr cathode materials project in Hungary has entered production line commissioning. Long-term supply agreements with LG Energy Solution and EVE Energy have already been signed for the project. Huayou has also signed strategic agreements with Beijing Welion and Zhejiang Jinyu in the full-solid-state and semi-solid-state battery sectors, showing that the company is positioning for both current battery demand and next-generation technologies.
SuperMetalPrice Commentary
Huayou’s 2025 production growth shows how major Chinese battery materials producers are building scale across the full chain, from mining and intermediate feedstocks to cathode materials and overseas manufacturing. For the market, the key point is not just higher volumes, but Huayou’s ability to link Indonesian nickel, African lithium and cobalt, and contracted cathode sales into one integrated platform.
If execution remains on track, Huayou could strengthen its position further in global EV battery materials, especially as automakers and battery producers seek reliable long-term supply outside a purely domestic China footprint.
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