Sumitomo Metal ships Nano One LFP cathode batches to carmakers

Sumitomo Metal Mining expanded customer sampling of One-Pot lithium iron phosphate cathode materials on Nov. 9, 2026, delivering commercial-scale trial batches from partner Nano One Materials to global cell makers and automakers.

The Tokyo-based smelter holds a C$16.88 million ($12.5 million) equity stake in Nano One. The partnership targets North American and European electric vehicle supply chains that currently rely on Chinese cathode refiners.

Evaluation modeling by Sumitomo Metal Mining indicates the process can reduce operating costs by up to $1 million annually for every 1,000 tonnes of production capacity. China currently accounts for more than 90% of global refined output.

The partners have completed batches of their latest-generation LFP formulation, which achieves higher pressed powder density. The material has entered advanced testing stages with automotive tier-one battery suppliers.

"Our economic modelling of the One-Pot process continues to be positive," Munekazu Kawata, Managing Executive Officer and General Manager of Sumitomo Metal Mining's Battery Materials Division, said.

"Our customers have provided positive feedback on samples produced through the One-Pot process," Kawata said. He added that the technology complements the company's internal cathode manufacturing portfolio.

Conventional LFP manufacturing dissolves iron metal into iron sulfate precursor before adding lithium salt and heating in separate stages. The multi-step chemical sequence produces large volumes of sodium sulfate effluent.

Nano One's One-Pot method combines lithium carbonate, iron powder and phosphoric acid directly in a single thermal reaction vessel. The simplified technique eliminates wastewater discharge and cuts thermal energy consumption.

The direct process reduces carbon dioxide emissions by roughly half compared with traditional sulfate-based precursor methods. Eliminating chemical intermediate steps also removes the need for dedicated wastewater recycling facilities.

The production method accepts multiple commercial grades of iron and lithium carbonate. Sourcing raw metals directly from diversified suppliers reduces reliance on Chinese intermediate chemical refining clusters.

Nano One acquired the Candiac demonstration plant in Quebec from Johnson Matthey in 2022. The 46-person operational team brought established industrial LFP manufacturing experience to the facility.

The Quebec site currently operates a 200-tonne-per-annum pilot line. That unit supplies qualification samples and small-volume orders to specialty energy storage and defense customers.

Nano One completed detailed engineering for the Candiac site expansion at the end of September 2026. The company then broke ground on civil construction to automate the main demonstration line.

The expansion will increase total Candiac plant capacity to 800 tonnes per annum of finished cathode active material. The automated line will demonstrate commercial-scale One-Pot reactors linked to drying and packaging equipment.

Nano One procured roughly 95% of the expansion equipment by value from suppliers in Canada, the United States and the European Union. All proprietary reactor components were sourced domestically.

The commercialization effort receives C$9.31 million in Canadian federal funding through Natural Resources Canada's Energy Innovation Program. The total funded initiative represents a C$25.14 million technology development budget.

China accounts for more than 90% of global LFP cathode active material production capacity. Western battery developers face strict foreign entity rules under United States electric vehicle tax legislation.

Sumitomo Metal Mining ranks among the world's leading suppliers of high-nickel cathode materials for cylindrical electric vehicle cells. The alliance with Nano One provides the group with a non-Chinese LFP product line.

Nano One plans to license modular plant designs developed alongside Australian engineering group Worley. Prospective licensees can deploy turnkey One-Pot production units adjacent to regional battery cell gigafactories.

The company has also tested regional raw materials, qualifying lithium carbonate from Standard Lithium's brine operations in Arkansas during August 2026. Testing domestic inputs aims to accelerate licensee qualification timelines by up to one year.

Candiac serves primarily as a demonstration and qualification facility rather than a mass-market supply hub. At 800 tonnes annually, the plant will cover less than 0.1% of projected North American stationary energy storage cathode demand.

Construction at the Candiac expansion is scheduled for completion in the first quarter of 2027, followed by line commissioning in the second quarter of 2027.

Nano One expects to execute its first commercial LFP supply agreement during the first quarter of 2027. The contract will serve small-volume customers in the defense and stationary storage sectors.

The companies have not disclosed the corporate names of the cell manufacturers and automotive OEMs evaluating the material, citing commercial confidentiality agreements.