TCL #63: CATL's New Batteries, USARE Securing a Crucial Rare Earth Mine

Battery

China's Contemporary Amperex Technology Co. Limited (CATL), one of the suppliers to Tesla's electric vehicles (EVs) unveiled new batteries last week including a lithium iron phosphate (LFP) battery called Shenxing 3.

CATL has claimed that Shenxing 3:

• Charges from 10% to 80% in 3 minutes and 44 seconds, and 10% to 98% in 6 minutes and 27 seconds (which is faster than the 9 minutes taken for BYD's latest Blade battery to charge from 10% to 98%).
• Achieves the world's lowest internal resistance for ultra-fast charging at 0.25 milliohms (which is 50% lower than the current industry average).
• Can maintain a State of Health (SoH) above 90% after 1000 ultra-fast charging cycles.

The company also introduced a ternary lithium battery called Qilin 3, which it claims can provide a driving range of 1000 kilometres and weighs 625 kilograms.

These advancements in battery technology, which alleviate customer concerns regarding range delivered on a single charge, juxtaposed with the current energy crises, may prompt future car buyers to lean towards EVs or hybrids.

CATL and BYD have dominated the global EV battery market with the capture of 42.1% and 13.4% market share respectively.

Rare Earths

USA Rare Earth (USARE), an American company focused on the extraction, processing, and manufacturing of rare earths and their magnets, said that it is set to acquire Brazil's Serra Verde for $2.8 billion in a cash and stock deal.

Serra Verde operates the Pela Ema mine in the Goiás state and is a "one-of-a-kind asset and the only producer outside Asia capable of supplying all four magnetic rare earths at scale, together with other vital REEs, such as Yttrium". The Pela Ema mine is rich in heavy rare earths (a segment currently dominated by China), crucial for high-temperature magnet performance in electric car motors.

USARE has received federal government support in the form of $1.6 billion equity stake and has acquired the U.K.'s Less Common Metals to secure supply chains not yet tapped by China.

Nuclear Tech

Nuclear fusion start-up Helion Energy is confident that it will supply Microsoft with electricity via the grid by 2028, a feat not yet achieved by any fusion company. Helion's approach does not involve turbines to convert heat into electricity. It aims to use a more energy-efficient process where electricity is generated directly from changes in the magnetic field as the plasma expands, inducing a current in surrounding coils.

The CFO, Parag Jain, said that the company has built seven prototypes and is now racing toward commercial deployment. Founded in 2013, the company has raised ~ $1 billion to date and is valued at ~ $5 billion.

 The industry is watching as the target date draws near.

Cleantech

Ember, an independent energy think tank, reported that global clean power output grew faster than electricity demand in 2025. China's fossil fuel generation fell by 0.9% for the first time since 2015 due to a massive surge in clean power, with solar up 40% and wind up 14%. Solar and wind together accounted for 22% of China's electricity mix. China is still the world's largest power market, accounting for 33% of global electricity demand.

India also saw a decline in fossil generation of 3.3% supported by record additions in solar and wind, as well as milder weather reducing electricity demand. Since 2000, this was the third such decline in India's fossil generation. Renewable power generation surged 24% from solar, wind, hydro and bioenergy. Solar generation increased by 37%, cementing India's position as the third-largest solar generator. India added 38 GW of solar capacity in 2025, which surpassed that of U.S for the first time.