Sherritt Cuba Sanctions Risk Clouds Moa Nickel-Cobalt Supply Chain

Sherritt

Sherritt Cuba sanctions risk has become a new uncertainty for Canadian metals miner and refiner Sherritt International after the US expanded its sanctions framework targeting Cuba. The company is consulting advisers and stakeholders to assess possible implications for its Cuban mining and refining exposure.

Sherritt Cuba sanctions risk centres on the company’s Moa joint venture with the General Nickel Company of Cuba. The operation mines and processes nickel and cobalt ore in Cuba before shipping mixed sulphide precipitate to Sherritt’s refinery in Fort Saskatchewan, Alberta.

Sherritt Cuba sanctions risk has increased after US president Donald Trump issued an executive order on 1 May broadening existing Cuba-related restrictions. The order allows the US to sanction entities operating in Cuba’s metals and mining sector, as well as energy, defence, financial services, security and other parts of the Cuban economy.

The development matters because Moa is not only a Cuban mining asset. It is part of a cross-border nickel and cobalt processing chain that links Cuban ore production with Canadian refining capacity.

Moa Joint Venture Faces Sanctions and Fuel Supply Pressure

The Moa joint venture produces mixed sulphide precipitate containing nickel and cobalt. Ore is mined and processed at the Moa site in Cuba, then shipped to Alberta for refining.

This structure gives Sherritt exposure to two different risks. The first is sanctions policy. The second is physical supply continuity from Cuba.

The company had already suspended mining operations at Moa in February because of fuel supply problems in Cuba. That disruption reduced upstream feed availability and raised concerns over refinery inventory in Canada.

Sherritt said in February that its Fort Saskatchewan refinery feed inventory was expected to last until mid-April. The new sanctions uncertainty adds another layer of pressure to an already fragile supply chain.

Nickel and cobalt remain important materials for batteries, stainless steel, superalloys, industrial chemicals and defence-related supply chains. Any disruption to feedstock or refining routes can affect customers that rely on qualified supply.

The Moa operation is therefore strategically important despite its geopolitical complexity. It supplies intermediate material that can be refined into products serving North American industrial demand.

US Policy Adds Complexity to Critical Minerals Trade

The executive order broadens the list of possible sanctions targets linked to Cuba. Metals and mining are now explicitly included, raising compliance risk for companies with Cuban operations or Cuban-linked material flows.

For Sherritt, the immediate issue is clarity. The company must determine whether its ownership structure, product flows, financing relationships, logistics providers or customers could be affected by the expanded sanctions framework.

This matters because sanctions risk can affect more than direct operations. It can influence shipping, banking, insurance, payment processing, customer contracts and counterparty willingness to handle material.

The case also highlights a difficult reality in critical minerals policy. Western governments want secure nickel and cobalt supply, but some existing supply chains run through politically sensitive jurisdictions.

Canada’s refining capacity at Fort Saskatchewan is valuable, but its feedstock connection to Cuba creates exposure to US policy decisions. That makes Sherritt’s position more complicated than a conventional mining or refining business.

The outcome will depend on how broadly Washington applies the new order and whether Sherritt’s activities become directly targeted. Until then, customers and investors are likely to watch for guidance on operational continuity, legal exposure and feedstock availability.

The Metalnomist Commentary

Sherritt’s situation shows that critical minerals security is not only about mine reserves or refining capacity. Political jurisdiction, sanctions exposure and feedstock logistics can determine whether a nickel-cobalt supply chain remains bankable.

ATI Aerospace and Defense Demand Lifts 2026 Guidance

ATI

ATI aerospace and defense demand strengthened in the first quarter, prompting the specialty alloys manufacturer to raise its full-year earnings outlook. The Texas-based company lifted its 2026 adjusted profit guidance by $35mn to $1.01bn-1.06bn.

ATI aerospace and defense demand was strongest in jet engine materials, defence alloys and missile-related products. The company exceeded the high end of its first-quarter forecast by nearly $7mn, reporting adjusted profit of $232mn.

ATI aerospace and defense demand shows that high-performance metals remain central to the aircraft production ramp and defence replenishment cycle. Titanium, nickel-based alloys, isothermal forgings, zirconium and hafnium are all tied to programmes where qualification, lead times and supply reliability matter.

Quarterly profit rose by 20% on the year to nearly $120mn, while revenue increased by 6.2% to almost $1.2bn.

Jet Engine Materials Keep Specialty Alloy Lead Times Tight

Commercial jet engine sales rose by 12% on the year to $472mn, making the segment ATI’s largest product category. The company expects mid-teens growth in jet engine sales this year.

Demand is being driven by original equipment manufacturers and aftermarket service providers. Both need reliable access to specialty alloys and isothermal forgings as engine production and repair activity expand.

This is strategically important because jet engines consume some of the most demanding materials in the aerospace supply chain. Nickel-based superalloys, titanium alloys and premium-quality forgings must meet strict performance standards under heat, stress and fatigue conditions.

ATI is also working to qualify its new electron-beam furnace for premium-quality titanium at its Richland, Washington facility. This material is used in rotor-grade engine parts.

Approval of the furnace would help reduce pressure on ATI’s other premium-quality titanium melting operations. Some lead times for this material are now close to two years.

That lead-time signal matters. Aerospace buyers are not only chasing capacity. They are trying to secure qualified melt routes for materials that cannot be easily substituted.

Commercial airframe sales moved lower in the first quarter, falling by 9.3% to nearly $187mn. Airframers and OEMs continued drawing down internal stocks of raw materials and components.

However, ATI expects full-year airframe sales to grow by mid-to-upper single digits, with demand backloaded into the second half as inventories normalise. This should support stronger sales of standard-quality titanium used in structural aircraft components.

The company also expects much stronger titanium sales growth in 2027, based on long-term order patterns and customer production plans.

Defence Orders Strengthen Zirconium, Hafnium and Missile Materials

Defence sales rose by 9.3% on the year to $139mn in the first quarter. ATI expects full-year defence revenue to rise by low-to-mid teens from 2025 levels.

The company renewed a five-year, $1bn contract supporting the US Naval Nuclear Propulsion Program. This will drive continued demand for specialty alloys containing zirconium and hafnium.

Zirconium and hafnium are strategically important in nuclear and defence supply chains. Their use requires tight quality control, reliable processing and long-term customer qualification.

Missile-related demand also strengthened. ATI said first-quarter missile revenue doubled from a year earlier as contractors increased production and replenished munitions inventories.

The company supplies titanium and nickel products used in structural and propulsion applications for missile programmes, including Tomahawk, Patriot Advanced Capability-3 and Terminal High Altitude Area Defense interceptors.

Nickel-based and specialty alloys remained ATI’s largest revenue source, accounting for 49% of total sales in the quarter. Precision forgings, castings and components accounted for 20%, while titanium and titanium-based alloys represented 17%.

The mix shows ATI’s strategic position. The company is exposed to aerospace engine growth, defence replenishment, naval nuclear programmes and missile production, all of which depend on hard-to-qualify specialty metals.

ATI’s raised guidance therefore reflects more than a cyclical recovery. It points to structural demand for advanced materials across aerospace, defence and energy-security-related programmes.

The Metalnomist Commentary

ATI’s guidance increase confirms that aerospace and defence demand is pushing pressure upstream into qualified melt capacity and specialty alloys. The real bottleneck is not generic metal supply, but premium titanium, nickel alloys, zirconium, hafnium and forgings that meet mission-critical specifications.

Indium Corp Gallium Recovery Grant Targets US Semiconductor Materials Security

Indium Corp

Indium Corp gallium recovery plans have gained US government support as Washington looks to build domestic supply chains for strategic semiconductor materials. The US-based metals refiner and manufacturer will receive a $3.2mn Department of Energy grant to recover gallium from industrial residues.

Indium Corp gallium recovery will focus on converting gallium-bearing residues into high-purity gallium for semiconductors and electronics. The project is part of the DOE’s Technology for Recovery and Advanced Critical-material Extraction-Gallium initiative.

Indium Corp gallium recovery matters because gallium is a critical input for compound semiconductors, radio-frequency devices, optoelectronics, defence systems and advanced electronics. The US remains heavily exposed to foreign supply because primary gallium production is concentrated in China.

The company will begin by developing a prototype to reclaim metallic gallium at its Rome, New York facility. In a second phase, it aims to scale the process to produce at least 1 t/yr of 99.99% pure gallium.

Gallium Residues Offer a Domestic Recovery Route

The project targets gallium-bearing residues rather than new primary mine output. This is strategically important because gallium is usually recovered as a by-product from alumina and zinc processing, making standalone primary supply difficult to build quickly.

Residue recovery can create a faster domestic supply route. If Indium Corp can economically recover high-purity gallium from waste streams, it could reduce dependence on imported material and strengthen US electronics supply chains.

The planned 99.99% purity level is important for semiconductor and electronics applications. High-purity gallium is used in materials such as gallium arsenide and gallium nitride, which support power electronics, LEDs, lasers, sensors, radar and communications equipment.

The Rome facility gives the project an existing industrial base. That can shorten the path from laboratory development to pilot production, although scale-up remains the key technical challenge.

A target of at least 1 t/yr is modest compared with global demand. However, the strategic value is larger than the tonnage suggests. The project could validate a recovery process that can later be expanded or replicated across other gallium-bearing waste streams.

TRACE-Ga Reflects US Push Into Critical Materials Recycling

Indium Corp was selected as one of five recipients under the DOE’s TRACE-Ga initiative. The programme will award a total of $5.4mn across companies working on gallium recovery and extraction technologies.

Other recipients include PHNX Materials, Atlantic Alumina, Found Energy and Kunin Technologies. Their inclusion shows that the US is exploring several recovery routes, from industrial waste refining to alumina-linked by-products and emerging mineral processing technologies.

The initiative reflects a broader policy shift. Washington is trying to secure critical materials not only through mining, but also through recycling, residue recovery, by-product extraction and domestic refining.

This approach is logical for gallium. China accounts for nearly all primary gallium production, making the market highly vulnerable to export controls, licensing delays and geopolitical disruption.

Gallium’s strategic value has increased because it supports both commercial and defence technologies. It is used in semiconductors, military systems, optics and high-frequency electronics.

For US manufacturers, secure gallium supply is becoming more urgent as demand grows from data centres, 5G systems, satellites, radar, power electronics and defence platforms.

The Indium Corp project will not solve the US gallium deficit by itself. But it is an important step toward creating a domestic recovery ecosystem for a metal that is difficult to source quickly during supply shocks.

The Metalnomist Commentary

The Indium Corp grant shows that gallium security will depend on by-product recovery and recycling as much as new mining. For the US, even small domestic gallium projects matter because the current supply chain is too concentrated for a material tied to semiconductors and defence.

Materion AI Demand Lifts Sales as Defence Orders Strengthen

Materion

Materion AI demand helped drive a sharp rise in first-quarter sales as electronics, defence and semiconductor customers increased orders for advanced materials. The US-based producer reported net sales of $549.8mn, up 30.8% from a year earlier.

Materion AI demand was most visible in the company’s electronic materials segment, where sales rose strongly on higher demand from chipmaking applications. Adjusted Ebitda increased by 8.6% to $52.9mn, showing that revenue growth translated into stronger earnings despite mixed performance across business units.

Materion AI demand also reflects a broader industrial trend. Artificial intelligence is increasing demand for logic chips, memory devices, thin-film materials, high-purity chemicals and precision components used across the semiconductor supply chain.

The company’s order backlog rose by more than 20% year on year at the end of the quarter. Defence orders exceeded $60mn, while open requests for quotations surpassed $300mn, indicating continued momentum in aerospace and defence materials.

AI Chips Lift Electronic Materials Sales

Materion’s electronic materials segment delivered the strongest growth in the quarter. Net sales rose to $363.3mn from $224.8mn a year earlier.

The segment produces tantalum sputtering targets for thin-film vapour deposition. These targets are used in semiconductor manufacturing, especially in logic and memory chip production.

Tantalum is important because it supports thin, reliable and high-performance films inside advanced chips. As AI workloads grow, semiconductor manufacturers need more materials that support higher computing power, better efficiency and tighter device architectures.

Materion also produces advanced chemicals and semiconductor materials. These products place the company deeper inside the AI hardware supply chain, where material purity, consistency and qualification are critical.

The sales increase shows that AI is not only driving demand for finished chips or data centre hardware. It is also increasing demand for upstream specialty materials that enable chip fabrication.

This is significant for minor metals and advanced materials suppliers. AI growth is pulling more value toward high-purity inputs, sputtering targets, deposition materials, precision optics and performance alloys.

Defence Backlog Supports Performance Materials Recovery

Materion’s aerospace and defence order rates increased by 50% over the past 12 months. Energy order rates rose by more than 20%, while semiconductor order rates increased by 10%.

The defence order book is especially important. More than $60mn of defence orders in one quarter, combined with over $300mn in open quotation requests, gives Materion stronger visibility into future demand.

Materion’s performance-materials segment had a weaker first quarter. Net sales fell to $155.7mn from $174mn a year earlier, mainly because of lower precision-clad material sales.

However, the company expects performance-material sales to improve from the second quarter. Aerospace and defence demand should support the recovery.

The segment includes beryllium products and alloys, along with niobium, tantalum and nickel alloys. These materials serve demanding applications where strength, conductivity, thermal stability, corrosion resistance or weight reduction are essential.

Materion had suspended clad-strip production in the fourth quarter of 2025 because of material quality problems. Production resumed as expected in January-March and returned to pre-issue levels.

Precision optics also strengthened. Sales rose by 43% to $30.8mn, with demand improving across life sciences, consumer electronics, automotive, aerospace and defence, and semiconductors.

The result shows that Materion is exposed to several high-value growth channels at once. AI supports electronics materials, defence supports performance alloys, and precision optics benefits from advanced manufacturing and semiconductor demand.

The Metalnomist Commentary

Materion’s quarter shows how AI and defence demand are pulling specialty materials deeper into strategic supply chains. The key signal is not just higher sales, but the growing importance of tantalum, beryllium, niobium, nickel alloys and precision optics in advanced manufacturing.

Carpenter Aerospace Demand Lifts Guidance as OEMs Secure Specialty Alloy Supply

Carpenter

Carpenter aerospace demand is strengthening as aircraft manufacturers and defence customers move to secure specialty alloy supply ahead of higher production rates. Pennsylvania-based Carpenter Technology raised its annual operating income guidance to $700mn-$705mn, up from its earlier $660mn-$700mn range.

Carpenter aerospace demand is being driven by commercial aircraft production ramps, urgent customer delivery requests and stronger engine-related sales. The company said order intake remains clear and accelerating, especially as Boeing targets an increase in 737 MAX output from 42 to 47 aircraft a month this summer.

Carpenter aerospace demand also reflects growing concern that the aerospace supply chain is not ordering material quickly enough. Chief executive Tony Thene said the company received more urgent delivery requests during the quarter as customers worked to avoid line shutdowns in some applications.

The result confirms that specialty alloys remain a bottleneck in the aerospace recovery. Aircraft production cannot ramp without qualified melt capacity, engine alloys, fastener materials, forgings, bar, billet and tight metallurgical control.

Aerospace and Defence Customers Pull Material Forward

Aerospace and defence remained Carpenter’s largest end-use market, accounting for 54% of quarterly revenue. Sales in the segment rose by 17% from a year earlier to $435.6mn.

Engine sales increased by 44% year on year, showing strong demand for high-performance alloy materials used in demanding temperature and stress environments. Fastener sales also rose by about 9-10%, reflecting stronger aircraft build and maintenance activity.

Carpenter’s specialty alloys operations sold 51.8mn lb during the quarter, up 16% from the same period last year. Lead times remained fairly consistent during the fiscal third quarter, but the company expects them to extend in the near term.

This is an important signal for aerospace buyers. When lead times start to move out, OEMs and tier suppliers often increase forward ordering to protect production schedules.

Defence demand was already elevated before the US-Israel war against Iran. Carpenter said the conflict has not yet affected current orders, but future replenishment demand could create another layer of defence-related alloy buying.

Melt Expansion Becomes Strategic Supply Chain Insurance

Carpenter is expanding primary and secondary melt capacity through brownfield projects. Construction is underway and on schedule, with key equipment deliveries now starting.

This capacity expansion matters because aerospace and defence alloys require qualified melting routes. Customers cannot easily substitute suppliers when materials are tied to engine, fastener, structural or mission-critical applications.

Brownfield expansion also offers a faster and lower-risk route than building entirely new facilities. It allows Carpenter to increase output from an established production base with existing technical capability and customer approvals.

The company’s wider end markets were mixed. Energy sales rose by 44% to $50.5mn, while industrial and consumer revenue increased by 8% to $78.1mn. Medical sales fell by 29% to $51.7mn, and transportation declined by 12% to $19.3mn.

Total quarterly profit rose by 46% to $139.6mn, while revenue increased by 11% to $811.5mn. The performance shows that aerospace, defence and energy demand are carrying the strongest momentum.

Carpenter will also move through a leadership transition. Current president and chief operating officer Brian Malloy will become chief executive on 1 July.

The Metalnomist Commentary

Carpenter’s guidance increase shows that aerospace ramp-up is already tightening the specialty alloy chain before aircraft output reaches full targets. The critical question is whether melt capacity, lead times and qualified material supply can scale fast enough to prevent the next bottleneck from moving upstream.

VR8 Vanadium Slag Offtake Deal Links Steelpoortdrift to US Vanadium Supply

Vanadium Resources

VR8 vanadium slag offtake plans have advanced after Australia-listed Vanadium Resources signed a non-binding agreement with US Vanadium Holding. The agreement covers vanadium-bearing slag from VR8’s proposed V-Iron critical minerals smelter in South Africa.

VR8 vanadium slag offtake would give US Vanadium access to all production from the V-Iron plant. The facility is planned to process high-grade vanadium-titanium magnetite ore from VR8’s Steelpoortdrift project.

VR8 vanadium slag offtake is strategically important because Steelpoortdrift sits in South Africa’s Bushveld Complex, one of the world’s most important vanadium-bearing regions outside China and Russia.

The project contains 4.74mn t of vanadium pentoxide, giving VR8 a large resource base for future vanadium supply. The V-Iron plant will also produce pig iron, adding another commercial product stream.

Steelpoortdrift Could Support Ex-China Vanadium Supply

Steelpoortdrift’s location in the Bushveld Complex gives the project strategic weight. The region hosts major vanadium-titanium magnetite resources and remains one of the few large-scale alternatives to China and Russia.

This matters because vanadium is becoming more important for steel, energy storage, industrial alloys and defence-related supply chains. Vanadium improves steel strength and is also used in vanadium redox flow batteries for long-duration energy storage.

The proposed V-Iron plant would process Steelpoortdrift ore into vanadium-bearing slag. That slag can then be used as feedstock for downstream vanadium recovery.

Recent testing by US Vanadium confirmed that high-grade slags from Bushveld Complex ores are suitable for its facility. This technical validation is important because slag quality, chemistry and recoverability will determine commercial value.

The agreement gives VR8 a potential downstream customer before the smelter reaches final investment stage. It also gives US Vanadium a possible future feedstock source tied to a large non-China resource base.

Binding Offtake Depends on Feasibility Study

The current agreement is non-binding. VR8 and US Vanadium plan to negotiate a binding offtake after completion of the V-Iron feasibility study.

That study will be critical. It must confirm capital costs, operating costs, slag quality, pig iron economics, processing route, logistics and project execution risk.

If the companies do not reach a binding agreement, VR8 will grant US Vanadium a right to match any third-party offer for 20% of the plant’s vanadium slag output. This keeps US Vanadium commercially positioned even if negotiations change.

For VR8, the agreement supports project credibility. Early customer interest can strengthen financing discussions and show that downstream processors are willing to evaluate Steelpoortdrift-derived material.

For US Vanadium, the deal fits a wider supply security trend. Western processors are looking for reliable feedstock sources outside dominant supply regions, especially for critical minerals with concentrated production chains.

The broader market implication is clear. Vanadium supply chains are becoming more strategic as long-duration energy storage and high-strength steel demand grow. Projects that can connect resource, smelting and qualified downstream processing will attract stronger attention.

The Metalnomist Commentary

The VR8-US Vanadium agreement shows that vanadium strategy is moving from resource ownership toward integrated feedstock security. Steelpoortdrift’s value will depend on whether the V-Iron plant can turn Bushveld ore into reliable slag supply for downstream processors.

Indonesia Nickel Pricing Sets Floor and Ceiling as HPAL Costs Rise

Huafei Nickel Cobalt

Indonesia nickel pricing is increasingly defining the global nickel market as ore quotas, benchmark pricing rules and sulphuric acid availability reshape supply economics. UK broker Sucden Financial said Indonesia is now setting both the floor and ceiling for nickel prices.

Indonesia nickel pricing has moved the market away from a simple oversupply story. The key question is no longer only how much nickel Indonesia can produce, but how tightly Jakarta chooses to manage supply.

Indonesia nickel pricing is also becoming more important because HPAL producers face rising costs for ore, sulphur and sulphuric acid. These inputs directly affect mixed hydroxide precipitate production, which feeds battery-grade nickel supply chains.

The London Metal Exchange nickel price settled at $19,500/t on Wednesday, while Sucden said Indonesia’s current policy stance is creating a firmer floor around $18,000/t. But upside may also be capped if higher prices encourage new quota approvals.

Indonesia Turns Ore Policy Into Market Control

Indonesia remains the central force in nickel because it controls the largest source of new supply. In recent years, Indonesian output growth, large exchange stocks and Chinese-linked processing capacity defined the market.

That structure is now changing. Sucden said Indonesia appears focused on supporting prices and discouraging weaker producers, rather than allowing unrestricted supply growth.

The country has reduced 2026 ore quotas by around 30% year on year. It has also revised its domestic benchmark ore pricing system, strengthening the link between ore valuation, contained metals and producer costs.

This policy approach gives Indonesia unusual pricing power. If supply is restricted, the market finds a firmer floor. If prices rise too far, Indonesia can relax quotas and allow more material through the system.

That means nickel’s upside is managed. Sucden warned that the market should become more cautious near $20,000/t, where additional supply approvals and producer hedging could begin to limit further gains.

This is why Indonesia now acts as both support and restraint. It can tighten ore availability to stabilise prices, but it can also prevent a strong rally from damaging downstream competitiveness.

The result is a more policy-driven nickel market. Traditional inventory and demand indicators still matter, but Jakarta’s quota and ore pricing decisions are now central to global price formation.

HPAL Costs Expose Battery Nickel Supply Risk

HPAL production is becoming the second major driver of nickel pricing. Unlike nickel pig iron and ferro-nickel, HPAL is highly dependent on sulphur and sulphuric acid.

This makes battery-grade nickel supply more vulnerable to chemical input availability. HPAL plants need stable acid supply to process limonite ore into MHP, and Indonesia’s inventory buffers are relatively tight.

Huayou’s decision to place half of its Huafei Nickel Cobalt MHP capacity into temporary care and maintenance from 1 May shows how quickly reagent costs can affect production. The company cited elevated sulphur costs and prolonged high operating rates.

The HPAL sector now faces a double squeeze. Ore prices are rising because of Indonesia’s revised pricing framework, while sulphur and sulphuric acid costs are increasing because of tighter chemical supply.

This changes the nickel cost curve. Producers with secure ore, sulphur access and integrated infrastructure can operate more defensively. Those relying on external feedstock or exposed to high reagent prices face greater margin pressure.

The shift also matters for battery supply chains. MHP is a key intermediate for nickel sulphate and other battery chemicals. If HPAL margins weaken, battery-grade nickel output can become less responsive than headline capacity numbers suggest.

Sucden said tighter nearby spreads and higher trading volumes may indicate increased hedging and another shift in market balance. That suggests producers and traders are adjusting to a market where costs and policy now matter more than simple surplus.

Nickel is still not structurally tight like copper. But it is no longer a market where oversupply alone explains price direction. Indonesia’s supply discipline and HPAL cost inflation are giving nickel a stronger base, even if the rally remains capped.

The Metalnomist Commentary

Indonesia has turned nickel into a managed market where policy controls supply and chemistry controls cost. The winners will be producers with secure ore, acid access and enough balance-sheet strength to survive Jakarta’s tighter discipline.

Airbus 2026 Delivery Guidance Holds Despite Engine and Delivery Bottlenecks

Airbus

Airbus 2026 delivery guidance remains unchanged even after supply constraints and administrative delays reduced first-quarter deliveries. The European aircraft manufacturer is still targeting around 870 commercial aircraft deliveries this year and adjusted earnings before interest and taxes of about €7.5bn.

Airbus 2026 delivery guidance now depends on another heavily backloaded delivery year. The company delivered only 114 aircraft in January-March, leaving a large volume to be handed over across the remaining nine months.

Airbus 2026 delivery guidance is being tested by two separate issues. The first is the continuing dispute with Pratt & Whitney over geared-turbofan engine supply. The second is a temporary delivery delay involving nearly 20 aircraft for Chinese customers.

The company said its commercial programme ramp targets remain unchanged. However, the first-quarter result shows that aircraft production is still constrained by engines, quality repairs, customer delivery timing and geopolitical cost risks.

Pratt & Whitney Dispute Shifts Focus Toward 2027 Engine Supply

Airbus said scheduled Pratt & Whitney engine deliveries for 2026 are confirmed. The dispute with the RTX subsidiary now centres more heavily on 2027 supply.

This matters because Pratt & Whitney’s GTF engines are used on the Airbus A320neo family. A shortage of engines has already affected Airbus’ narrowbody production planning.

In February, Airbus cut its A320 build target to 70-75 aircraft a month in 2027. The adjustment was based on this year’s expected GTF receipt levels and the outlook for future engine availability.

Airbus is working with Pratt & Whitney to resolve the issue. Chief executive Guillaume Faury said the company is also assessing its contractual rights.

Airbus has leaned on alternative engine supplier CFM International where possible. However, Faury said CFM supply is not enough to offset the significant number of missing Pratt & Whitney engines.

The company is not currently producing A320 gliders, or completed aircraft without engines. That indicates Airbus is still trying to keep production and final delivery flows aligned rather than building unfinished inventory.

The engine issue remains strategically important for aerospace suppliers. Narrowbody aircraft output depends on a deep chain of titanium parts, nickel superalloy components, forgings, castings, powder metal parts, fan blades, disks and certified MRO capacity.

China Deliveries and Panel Repairs Add Short-Term Inventory Pressure

Airbus also faced an administrative delay that prevented the delivery of nearly 20 aircraft to Chinese customers in the first quarter. The issue increased inventory to €5bn, up €1.5bn from a year earlier.

The China delivery delay has now been resolved, and aircraft handovers resumed after the end of the first quarter. This should support second-quarter delivery recovery if no new bottlenecks emerge.

Airbus manufacturing and deliveries have also been misaligned because of repairs on fuselage panels disclosed last December. The company expects to resolve that panel quality issue and realign production with deliveries by the end of this quarter.

These issues show how sensitive aircraft deliveries remain to late-stage disruptions. Even when aircraft are built, certification, paperwork, engines, interior systems or quality repairs can delay revenue recognition and cash conversion.

Airbus said it has not experienced direct supply disruption from the Middle East crisis. However, it is monitoring higher oil and derivative product prices and their possible effects on global air traffic.

That risk matters because airline profitability can influence delivery schedules, fleet decisions and aftermarket demand. Higher fuel costs can also ripple through plastics, chemicals, logistics and aerospace supply costs.

For now, Airbus is keeping confidence in its full-year plan. But the company will need a much stronger delivery pace through the rest of 2026 to meet its 870-aircraft target.

The Metalnomist Commentary

Airbus’ unchanged guidance shows confidence, but the first quarter highlights how fragile the aerospace ramp-up still is. Engine availability, quality repairs and delivery timing are now as important as final assembly capacity in determining real aircraft output.

Yongshan Lithium Molybdenum Output Falls as Concentrate Supply Tightens

Yongshan Lithium

Yongshan Lithium molybdenum output declined in 2025 as tight molybdenum concentrate supply reduced production of ferro-molybdenum alloy and roasted concentrate. The Jilin-based metals producer reported lower output and sales across its molybdenum business.

Yongshan Lithium molybdenum output fell despite firmer molybdenum prices and continued demand from high-quality special steel. Feedstock availability became the main constraint, limiting the company’s ability to maintain production volumes.

Yongshan Lithium molybdenum output reflects a wider pressure point in China’s molybdenum market. Alloy producers need concentrate feedstock, but tight supply and higher unroasted concentrate prices increased procurement pressure during the year.

The company, also known as Jixiang Molybdenum or New China Dragon Molybdenum, produced 17,631t of ferro-molybdenum alloy in 2025, down 22% from a year earlier. Sales fell by 23% to 18,018t.

Concentrate Tightness Hits Ferro-Molybdenum Production

Yongshan’s ferro-molybdenum alloy production was directly affected by constrained concentrate supply. The company purchased concentrate and alloy from other plants during the year to support regular production and sales.

This shows how dependent ferro-molybdenum producers remain on reliable upstream feedstock. Even when downstream demand is firm, alloy plants cannot maintain output without stable concentrate availability.

Roasted molybdenum concentrate output fell more sharply. Yongshan produced 29,679t in 2025, down 34% from a year earlier, because unroasted concentrate feedstock prices trended higher.

Sales of roasted concentrate dropped by 55% to 6,894t. The steep fall suggests that more material was needed internally or that market conditions made external sales less attractive.

Molybdenum concentrate is the key input for ferro-molybdenum, which is used in special steel, stainless steel, energy equipment, chemical processing, aerospace and defence-related applications. Tight concentrate supply therefore affects the entire alloy value chain.

Higher Prices Support Market but Not Volumes

China’s ferro-molybdenum market remained supported by tight feedstock and stronger consumption from high-quality special steel producers. Average domestic prices for 60% ferro-molybdenum alloy rose by 5.2% in 2025 to 246,307 yuan/t ex-works.

Roasted concentrate prices also increased. Average prices for 57% grade roasted concentrate rose by 6.1% year on year to 3,939 yuan/mtu.

The price gains show that molybdenum demand remained resilient in higher-value steel applications. However, Yongshan’s results also show that higher prices do not automatically translate into higher output when feedstock supply is constrained.

The company plans to optimise its molybdenum product structure in 2026. It aims to phase out low-margin and low-value-added products while advancing energy-saving and cost-reduction initiatives.

This is a logical response to a tighter raw material environment. When concentrate is expensive and difficult to secure, producers must prioritise higher-margin products and improve operating efficiency.

Yongshan formally changed its name from Jixiang Molybdenum in July 2024, reflecting a stronger focus on the lithium industry. Even so, molybdenum remains an important part of its industrial metals base.

The Metalnomist Commentary

Yongshan’s weaker molybdenum output shows that China’s alloy chain is being constrained upstream, not only by end-use demand. In a tight concentrate market, the competitive advantage will shift toward producers with secure feedstock, higher-value alloy products and stronger cost control.

Zhongke Anode Material Sales Surge as Energy Storage Demand Accelerates

Zhongke

Zhongke anode material sales rose sharply in 2025 as China’s lithium-ion battery sector expanded across new energy vehicles and power storage. Hunan Zhongke Electric sold 363,253t of anode materials during the year, up 62% from 2024.

Zhongke anode material sales were supported by strong downstream demand and higher operating rates. The company’s output increased by 66% to 378,469t, reflecting a rapid scale-up in response to battery market growth.

Zhongke anode material sales also lifted revenue. Revenue from anode materials rose by 60% to 7.99bn yuan, broadly in line with the increase in shipment volumes.

The result shows how anode materials remain one of the key beneficiaries of battery expansion. Demand is no longer driven only by electric vehicles. Grid storage, industrial storage and AI-related power demand are becoming increasingly important.

Capacity Utilisation Tightens as China Battery Demand Expands

Zhongke’s anode material capacity reached 348,683 t/yr in 2025, up 46% from a year earlier. The increase followed equipment and technology upgrades across its production base.

Capacity utilisation rose to 108.6% from 95.7% in 2024. This shows that Zhongke was operating above nameplate capacity as demand outpaced available production capability.

The company is now expanding further. A third-phase project at its Zhaotong site in Yunnan province is under construction and will add 100,000 t/yr of anode material capacity by the end of 2026.

Zhaotong has become a key growth platform. The first phase, with 15,000 t/yr of capacity, started production in April 2020. The second phase, with 100,000 t/yr of capacity, began operations in March 2024.

Zhongke is also planning a 300,000 t/yr anode material complex in Luzhou, Sichuan province. This would further strengthen its position in China’s graphite anode supply chain.

The expansion reflects a broader industry trend. Anode producers are adding capacity to serve battery makers that need reliable supply, stable quality and lower-cost materials for high-volume cell production.

Overseas Expansion Targets Storage and Non-China Customers

Zhongke is also building a 100,000 t/yr anode material plant in Tangier, Morocco. The project targets customers outside China and reflects the growing need for regionalised battery material supply chains.

Morocco offers strategic value because it is close to European markets and has become more attractive for battery-related investment. For Chinese anode producers, overseas capacity can help serve customers facing localisation, trade and supply-chain security requirements.

Energy storage is becoming a major long-term demand driver. Global energy storage battery shipments reached 651.5GWh in 2025, up 76.2% from a year earlier. Chinese companies accounted for 614.7GWh, or 94.4% of global shipments.

EV Tank expects global energy storage battery shipments to exceed 2TWh by 2030. If this forecast materialises, anode material demand will continue rising across China and overseas markets.

Policy is also supporting growth. China is moving new energy storage from mandatory allocation toward a more market-oriented system, including capacity pricing support for independent grid-side storage.

AI data centres are adding another demand layer. Rapid growth in electricity consumption from AI infrastructure is increasing the need for power storage, grid stability and backup capacity.

Europe is also expanding storage under energy security strategies. EU member states installed 27.1GWh of new battery energy storage systems in 2025, up 45% from the previous year.

For Zhongke, this demand mix supports a larger and more international anode strategy. The company is positioning itself to serve China’s dominant battery ecosystem while preparing for overseas demand linked to storage, EVs and grid resilience.

The Metalnomist Commentary

Zhongke’s growth shows that anode materials are moving from an EV-driven market into a broader energy infrastructure market. The next competitive phase will depend on overseas localisation, graphite supply security and the ability to serve storage demand outside China.

LB Titanium Dioxide Output Falls as Sponge and Battery Materials Expand

LB Titanium

LB titanium dioxide output fell in 2025 as weaker prices, slower demand and rising trade barriers pressured the global pigment market. China’s largest titanium producer reported titanium dioxide production of 1.28mn t, down 1.5% from a year earlier.

LB titanium dioxide output declined even as sales edged higher to 1.26mn t. Domestic sales accounted for 45% of volumes, while international sales made up 55%, showing that overseas markets remain critical to the company’s TiO2 business.

LB titanium dioxide output came under pressure from structural oversupply. New capacity entered the market, prices weakened and several domestic producers cut operating rates to protect margins.

The company also pointed to anti-dumping duties imposed by the EU, Brazil, Saudi Arabia and the Eurasian Economic Union, along with higher US tariffs on Chinese material. These measures have fragmented trade flows and made the global titanium dioxide market more difficult for Chinese exporters.

Titanium Sponge Offers a Stronger Counterweight

LB’s titanium sponge business moved in the opposite direction. Titanium sponge output rose by 2.3% on the year to 71,300t, while sales increased by 0.9% to 67,500t.

The stronger sponge result matters because titanium sponge sits closer to aerospace, industrial titanium mill products and high-performance alloy supply chains. It gives LB a more diversified titanium platform beyond pigment markets.

Titanium sponge prices were also firmer. Domestic 99.7% grade sponge prices averaged 49,665 yuan/t ex-works in 2025, up from 48,270 yuan/t a year earlier.

LB has 80,000 t/yr of titanium sponge capacity, the largest globally. That scale gives the company a major position in a market where feedstock security, product quality and downstream demand from titanium processors remain strategically important.

Titanium concentrate output fell by 3% to 1.45mn t, but LB did not sell concentrate externally. All concentrate was consumed internally to produce titanium dioxide and titanium sponge.

This internal use highlights the company’s integrated titanium value chain. LB can direct feedstock toward different downstream products depending on market conditions, although weak TiO2 demand still affects overall profitability.

Iron ore concentrate output fell more sharply, dropping by 18% to 3.04mn t. Sales decreased by 2.1% to 2.94mn t, showing softer performance in another mineral by-product stream.

Iron Phosphate Growth Signals Battery Materials Diversification

LB’s battery materials business showed much stronger momentum. Iron phosphate output jumped by 72% to 97,600t, while sales rose by 59% to 96,000t.

The growth was driven by firm demand from the lithium-ion battery sector. Iron phosphate is a key precursor for lithium iron phosphate cathode materials, which are widely used in electric vehicles and energy storage systems.

This diversification is strategically important. Titanium dioxide remains LB’s largest product line, but the pigment market is facing oversupply, trade restrictions and weaker pricing. Battery materials offer a different growth channel tied to China’s expanding LFP ecosystem.

LB has 100,000 t/yr of iron phosphate capacity and 50,000 t/yr of LFP capacity. It also has 25,000 t/yr of graphite anode capacity and 50,000 t/yr of graphitisation capacity.

That product base positions LB across titanium, zirconium and battery materials. The company is no longer only a titanium dioxide producer, even though it remains the world’s largest TiO2 producer with 1.51mn t/yr of capacity.

The 2025 results show a clear split in the business. Titanium dioxide is under pressure from oversupply and trade action. Titanium sponge is holding stronger. Iron phosphate is growing with battery demand.

For LB, the industrial challenge is to manage a mature pigment business while expanding higher-growth materials platforms. Its integrated mineral base gives it flexibility, but market conditions across TiO2, sponge and battery materials are moving in different directions.

The Metalnomist Commentary

LB’s results show how Chinese titanium producers are moving beyond pigment exposure into sponge and battery materials. The strategic value lies in feedstock integration, because companies that can shift internal mineral flows between TiO2, titanium sponge and battery precursors will be better positioned in volatile markets.

ARM Nkomati Nickel Mine Restart Moves Closer With Boliden Concentrate Deal

African Rainbow Minerals

ARM Nkomati nickel mine restart prospects have strengthened after African Rainbow Minerals signed a multi-year nickel concentrate sales agreement with Swedish mining and smelting group Boliden. The agreement could support the return of one of South Africa’s important multi-metal nickel assets.

The ARM Nkomati nickel mine has been on care and maintenance since 2020. ARM and Norilsk Nickel placed the operation into suspension after profitability weakened because of lower output.

The ARM Nkomati nickel mine produced nickel, copper, cobalt, chrome and platinum group metals. Its potential restart would therefore add more than nickel units to the market, supporting several metals linked to batteries, stainless steel, alloys and industrial supply chains.

The deal with Boliden remains conditional. It depends on approval to recommence open-pit mining of nickel-bearing ore at Nkomati, responsible sourcing due diligence by Boliden and other regulatory clearances.

Boliden Agreement Gives Nkomati a Processing Route

The sales agreement gives ARM a potential outlet for Nkomati nickel concentrate if mining restarts. Boliden expects the concentrate to be shipped to its Harjavalta smelter in Finland.

Harjavalta produces nickel matte, making it a logical destination for nickel-bearing concentrate. The route would connect South African mine supply with European smelting capacity.

This matters because nickel concentrate needs secure processing access before a restart can become commercially meaningful. A mine can have geological potential, but it still needs offtake, logistics, smelting capacity and customer qualification.

Boliden’s responsible sourcing due diligence is also important. European smelters and customers increasingly require stronger documentation around mine origin, ESG standards and supply-chain integrity.

The agreement therefore does more than provide a buyer. It gives the Nkomati restart a possible downstream pathway into a European refining and smelting system.

For ARM, the deal could improve the commercial case for reopening the mine. For Boliden, it could provide another concentrate source for its nickel operations at a time when secure non-Indonesian nickel supply remains strategically relevant.

South African Nickel Supply Could Regain Strategic Relevance

Nkomati’s ownership structure has changed since the mine entered care and maintenance. Nornickel’s South African subsidiary agreed in November 2023 to transfer its 50% stake to ARM, and the transaction was finalised in July 2025.

Full ARM control gives the South African company more direct strategic flexibility. It can evaluate restart options without the same joint-venture complexity that previously shaped the asset.

The potential restart comes at a time when nickel markets remain divided. Indonesia dominates new supply growth, but European and western buyers are increasingly interested in diversified, traceable and geopolitically balanced feedstock.

Nkomati’s multi-metal profile adds to its relevance. Nickel remains important for stainless steel, batteries and superalloys. Cobalt supports batteries and high-performance alloys. Platinum group metals serve automotive catalysts, hydrogen technologies and industrial applications.

However, restart economics will be the decisive issue. The mine was suspended because lower output weakened profitability. Any recommencement will need a stronger operating plan, stable grades, reliable processing economics and clear market support.

The Boliden agreement is an important step, but not the final decision. The project still needs operational approval, regulatory clearance and successful due diligence before concentrate flows can resume.

The Metalnomist Commentary

The ARM-Boliden agreement shows that idled nickel assets can regain value when buyers prioritise diversified and traceable supply. Nkomati’s restart will depend less on headline nickel prices alone and more on whether ARM can rebuild a reliable mine-to-smelter route.

EVelution Mitsui Cobalt Offtake Agreement Anchors Arizona Processing Project

EVolution, Mitsui

EVelution Mitsui cobalt offtake agreement gives the nascent US cobalt processor a major commercial anchor for its planned Arizona facility. EVelution Energy has signed a binding deal to supply Japanese trading firm Mitsui with the substantial majority of future cobalt metal output from the project.

The EVelution Mitsui cobalt offtake agreement covers up to 3,000 t/yr of cobalt over five years. The contract is valued at about $850mn based on current market prices, according to the company.

The EVelution Mitsui cobalt offtake agreement is strategically important because the US is trying to build more domestic processing capacity for battery and defence-related materials. Cobalt remains essential for electric vehicle batteries, superalloys, industrial chemicals and high-performance manufacturing.

The planned facility in Yuma County, Arizona, is expected to begin construction in early 2027. EVelution aims to complete the cobalt processing plant in 2029.

Binding Offtake Improves Project Bankability

The Mitsui agreement gives EVelution a clearer demand base before construction begins. For a new cobalt processor, a binding offtake agreement can improve financing prospects by showing that future output already has a committed buyer.

This matters because processing projects require large upfront capital, technical qualification and long commissioning timelines. Buyers also need confidence that the producer can deliver metal consistently to specification.

Mitsui’s role adds strategic weight. Japanese trading houses often connect raw materials, processing assets and downstream manufacturers through long-term supply agreements.

The deal also strengthens Japan’s access to non-China cobalt metal. Japan has major battery, electronics, automotive and industrial materials sectors, and secure cobalt supply remains important for several high-value manufacturing chains.

For EVelution, the agreement supports a route into the market before commercial production starts. It also helps position the Arizona facility as part of a wider allied supply-chain network rather than only a domestic US project.

US Cobalt Processing Remains a Strategic Gap

The Arizona project addresses a key weakness in the US critical minerals chain. The country needs more domestic and allied refining capacity for materials that support batteries, aerospace, defence, chemicals and advanced manufacturing.

Cobalt supply is globally concentrated, with mining and processing exposed to geopolitical, environmental and trade risks. Building US processing capacity can reduce dependence on external refining routes and improve supply security for manufacturers.

The facility’s planned output of up to 3,000 t/yr under the Mitsui agreement would not transform the global cobalt market alone. However, it could provide an important domestic source of cobalt metal for customers seeking traceable and secure supply.

Cobalt’s end-use profile also makes the project strategically relevant. Battery demand remains important, but superalloys and industrial chemicals give cobalt a broader role across aerospace, energy, defence and manufacturing.

The key challenge will be execution. EVelution must move from offtake signing to financing, permitting, construction, commissioning and qualification. Each step will determine whether the project can become a reliable part of the US cobalt supply chain.

The Metalnomist Commentary

The Mitsui deal shows that critical minerals projects increasingly need customer commitments before they can become bankable. For US cobalt, the strategic question is no longer only resource access, but whether domestic processing projects can reach commercial scale on time.

InP and GaN Wafer Supply Deal Strengthens Macom’s Compound Semiconductor Chain

Macom

InP and GaN wafer supply has become a strategic priority for Macom Technology Solutions as the US semiconductor manufacturer invests in UK-based compound semiconductor wafer supplier IQE. The investment secures long-term epitaxial wafer services and strengthens Macom’s access to materials used in photonics, defence, satellites and 5G telecom systems.

Macom has committed £45mn as part of an £81mn investor package for IQE. The financing includes £23mn of reinvestment from convertible loans and will allow IQE to repay debt while funding core technologies such as indium phosphide and gallium nitride.

InP and GaN wafer supply is increasingly important because both materials sit at the centre of high-performance semiconductor applications. Indium phosphide supports optical transmission and silicon photonics, while gallium nitride enables high-frequency, high-power radio frequency and defence electronics.

The investment also allows IQE to end its strategic review. The company had considered selling or spinning out operations in Taiwan and later examined a possible full sale of the business. Those discussions have now been terminated.

Macom Secures Materials for Photonics and Data Centres

Macom said it will sign long-term supply agreements with IQE across multiple epitaxial technologies. These agreements will support scalable, high-volume manufacturing and strengthen supply-chain resilience.

This matters because AI data centres are driving rapid growth in optical transmission technologies. As computing loads rise, data centres need faster and more energy-efficient data movement between chips, servers and racks.

Indium phosphide is a critical material for lasers and photonic components used in optical networks. It has become a key bottleneck as demand from AI infrastructure, cloud computing and high-speed communications accelerates.

Macom’s strategy includes expanding laser and silicon photonic-based optical transmission products. Long-term InP and GaN wafer supply from IQE gives the company more confidence as it scales these technologies.

IQE also benefits from the arrangement. The funding improves its balance sheet and gives the wafer supplier stronger customer visibility from an existing key customer.

For the compound semiconductor industry, the deal shows how customers are moving closer to upstream wafer suppliers. Securing epitaxial capacity is becoming as important as chip design when materials availability is tight.

GaN Demand Links Defence, Satellites and 5G

Gallium nitride is another core part of Macom’s growth strategy. GaN is used in radio frequency sensors, amplifiers and other components for defence, satellite and 5G telecom systems.

These applications require materials that can handle high power, high frequency and demanding operating conditions. GaN offers performance advantages over conventional silicon in several advanced RF and power applications.

Macom is also developing advanced GaN-on-silicon processes and installing new equipment to modernise and expand manufacturing capabilities. This points to a broader push to scale production while improving cost and process efficiency.

IQE’s manufacturing footprint gives the partnership wider supply-chain relevance. The company operates two sites in south Wales, a facility in Milton Keynes, four plants in the US and operations in Taiwan.

IQE expects revenue to grow by more than 20% in 2026. The company cited strong demand from AI and data-centre photonics, laser and wireless products for smartphones, and continued strength in aerospace and defence.

The transaction also gives Macom a governance role, as the company will join IQE’s board. This deepens the relationship from customer-supplier contracting into strategic influence.

InP and GaN wafer supply will remain critical as semiconductor demand becomes more materials-intensive. Data centres, defence electronics, satellites and telecom infrastructure all need reliable compound semiconductor capacity.

The Metalnomist Commentary

Macom’s investment in IQE shows that semiconductor supply security is moving upstream into compound wafer materials. As AI data centres and defence RF systems expand, control over InP and GaN capacity will become a strategic advantage, not just a procurement issue.

LB Titanium Dioxide Plant Acquisition Revives UK TiO2 Pigment Capacity

LB TiO2

LB titanium dioxide plant ownership has expanded into the UK after China’s largest TiO2 producer acquired the Greatham pigment manufacturing site from Venator Materials UK. The acquisition gives LB Group a European production base for titanium dioxide pigments used in coatings and plastics.

LB titanium dioxide plant operations at Greatham are expected to restart this year through Tioxide, a new wholly owned subsidiary. The move gives LB direct manufacturing capacity in the UK at a time when European buyers are reassessing supply security, trade exposure and regional pigment availability.

LB titanium dioxide plant expansion also strengthens the company’s global position. LB Group already has combined TiO2 capacity of 1.51mn t/yr, making it the world’s largest titanium dioxide producer.

The transaction follows a $69.9mn purchase agreement signed with Venator in October 2025. The UK Competition and Markets Authority cleared the acquisition on 23 April.

Greatham Restart Adds Regional Pigment Supply

The Greatham site will manufacture TiO2 pigments for coatings and plastics. These are core industrial markets where titanium dioxide provides whiteness, opacity, brightness and durability.

Restarting the facility could improve regional availability for European and UK customers. It also allows LB to serve some customers from within the market rather than relying only on exports from China.

This matters because TiO2 is widely used in construction coatings, packaging, automotive coatings, plastics, inks and consumer goods. Supply disruptions or trade restrictions can quickly affect downstream manufacturers.

The acquisition also gives LB a strategic foothold in a mature industrial market. Owning European production assets can help the company manage customer relationships, regulatory requirements and product qualification more directly.

For the UK, the deal could preserve TiO2 pigment manufacturing capacity at a site previously owned by Venator. The key question will be how quickly LB can restart operations and secure stable feedstock, labour and customer demand.

Trade Remedies Add Strategic Complexity

The acquisition comes as the UK Trade Remedies Authority investigates imports of rutile titanium dioxide from China. That investigation adds a trade-policy dimension to LB’s European expansion.

Billions Europe, an LB subsidiary, has requested that ink-grade TiO2 be excluded from the case. The request shows how product-specific distinctions can become important in anti-dumping proceedings.

For LB, owning a UK production site may help reduce exposure to import-related trade measures. Local production can also support customers that prefer regional supply or need more predictable delivery.

However, the broader TiO2 market remains highly competitive. Producers face pressure from energy costs, raw material availability, environmental rules, demand cycles and trade remedies.

The Greatham restart will therefore test more than acquisition execution. It will test whether a Chinese producer can use a UK manufacturing asset to strengthen its position in European pigment markets while navigating trade scrutiny.

The Metalnomist Commentary

LB’s Greatham acquisition shows that Chinese materials producers are not only exporting more; they are buying production footprints inside target markets. For TiO2 buyers, the deal could improve local availability, but trade policy will remain a major factor shaping supply routes.

PLS Lithium Phosphate Offtake Signals Shift Toward Midstream Battery Materials

PLS Lithium

PLS lithium phosphate offtake with China’s Ningbo Ronbay New Energy Technology marks a strategic step by the Australian lithium producer into higher-value battery materials. The agreement covers lithium phosphate from PLS’ midstream lithium refining demonstration plant.

PLS lithium phosphate offtake gives the company an early customer pathway as it tests whether spodumene can be converted into an intermediate chemical product with broader downstream appeal. The plant is scheduled to deliver first product in the third quarter of 2026.

PLS lithium phosphate offtake also links the company directly with Ronbay, one of the world’s largest lithium iron phosphate cathode material producers. Ronbay will provide technical support as PLS works to optimise product quality and specification.

The agreement’s price and volume details were not disclosed. But the pricing structure will broadly reference lithium chemical prices, with a proportional mechanism similar to spodumene pricing.

Lithium Phosphate Could Shorten the LFP Supply Chain

PLS’ demonstration plant is designed to produce more than 3,000 t/yr of lithium phosphate. It will consume about 27,000 t/yr of spodumene.

The company took full ownership of the plant from former joint-venture partner Calix in February. That gives PLS more control over the development route as it moves beyond conventional lithium concentrate sales.

The strategic importance lies in the possible use of lithium phosphate as a direct feedstock for LFP cathode production. Some LFP cathode producers are testing lithium phosphate instead of lithium carbonate because it could shorten processing steps and reduce total production costs.

This matters because LFP batteries are gaining share in electric vehicles and energy storage systems. Cathode producers want lower-cost, reliable and scalable lithium inputs that can support high-volume manufacturing.

If lithium phosphate can meet strict cathode specifications, PLS could access a new customer base. Instead of selling only to lithium hydroxide or carbonate converters, it could sell directly into cathode material supply chains.

That would move PLS closer to battery manufacturers and allow it to capture more margin inside the lithium value chain.

Quality Testing Will Determine Commercial Potential

The opportunity remains at an early stage. PLS has warned that lithium phosphate must meet demanding quality requirements before it can become a commercial cathode feedstock.

Battery material customers require tight control over impurities, consistency, particle characteristics and chemical performance. A product that works technically at small scale must still prove reliability across repeated production.

Ronbay’s role is therefore important. As a major LFP cathode producer, it can provide practical feedback on product suitability, processing performance and downstream qualification needs.

The agreement also reflects a broader trend in lithium markets. Producers are no longer focused only on mining and concentrate production. They are looking for midstream products that can reduce processing complexity and improve customer access.

For PLS, lithium phosphate could serve multiple markets. It may supply existing lithium chemical producers, while also opening a direct route to cathode manufacturers.

The demonstration plant will test whether that strategy can move from concept to commercial scale. If successful, it could give spodumene producers a new pathway into battery materials without fully entering carbonate or hydroxide production.

The Metalnomist Commentary

PLS’ lithium phosphate strategy is a clear attempt to move higher in the battery value chain without jumping directly into full chemical conversion. The key test will be whether cathode makers accept lithium phosphate as a reliable feedstock at scale, not just as a technical possibility.

Nornickel Nickel Output Holds Flat as Copper and PGM Production Decline

Nornickel

Nornickel nickel output was broadly stable in the first quarter, while the Russian multi-metals producer reported lower copper and platinum group metal production from a high year-earlier base. Consolidated nickel production edged up by 0.3% on the year to 41,746t in January-March.

Nornickel nickel output stability contrasts with weaker copper, palladium and platinum volumes. Copper output fell by 10% to 98,679t, palladium production dropped by 18% to 608,000oz, and platinum output declined by 24% to 136,000oz.

Nornickel said the lower copper and PGM figures reflected a high production base in the first quarter of 2025 and the redistribution of commercial product volumes between quarters. The company maintained its full-year 2026 production guidance.

The result shows that Nornickel nickel output remains comparatively steady, while quarterly copper and PGM figures can move sharply because of timing, ore processing patterns and product shipment schedules.

Nickel Stability Supports Core Production Outlook

Nickel remains one of Nornickel’s most important products because of its role in stainless steel, high-performance alloys, batteries and industrial manufacturing. Stable first-quarter output suggests that the company’s core nickel operations remain within its planned production range.

Nornickel kept its 2026 Russian feedstock guidance unchanged at 193,000-203,000t for nickel. This indicates that the company does not currently view the flat first-quarter result as a signal of operational weakness.

The nickel market remains sensitive to supply from Russia because Nornickel is a major producer of high-grade material. Even when global nickel markets face oversupply from Indonesian growth, Russian nickel still has strategic relevance for stainless steel, alloy and battery-linked consumers.

Copper showed a weaker quarterly result. Output from the company’s own Russian feedstock, excluding Trans-Baikal, totalled 80,000t during the period.

However, the Bystrinsky copper project in the Trans-Baikal division performed better. Copper in concentrate output rose by 6% on the year to 18,545t, supported by higher ore processing volumes and higher metal content in ore.

This improvement at Bystrinsky partly offsets the wider copper decline. It also shows the importance of ore grade and processing throughput in quarterly copper performance.

Nornickel maintained its 2026 Russian feedstock copper guidance at 336,000-356,000t. Guidance for Trans-Baikal copper in concentrate also remained unchanged at 69,000-73,000t.

PGM Decline Reflects Timing Rather Than Guidance Change

Nornickel’s platinum group metals output fell sharply in the first quarter, but the company did not adjust its full-year forecast. Palladium output fell by 18%, while platinum declined by 24%.

The company attributed the weaker figures to a high comparison base and quarterly timing effects in commercial products. This suggests the decline may not translate directly into lower full-year supply.

Nornickel kept its 2026 palladium guidance at 2.415mn-2.465mn oz and platinum guidance at 616,000-636,000oz. These metals remain important for automotive catalysts, electronics, chemicals, hydrogen technologies, jewellery and industrial applications.

The PGM market remains highly concentrated, with Russia and South Africa playing major roles in primary supply. Any sustained change in Russian production can therefore influence availability, trade flows and customer procurement strategies.

For buyers, the first-quarter data point to the need to separate operational weakness from quarterly timing. Lower reported output can affect sentiment, but unchanged guidance suggests Nornickel expects production to normalise across the year.

The broader strategic issue remains Russian supply exposure. Nornickel’s metals are important to global nickel, copper and PGM supply chains, but geopolitical risk, sanctions compliance and trade route uncertainty continue to shape how buyers handle Russian-origin material.

The first-quarter result therefore carries a mixed message. Nickel output remained stable, Bystrinsky copper improved, and full-year guidance was unchanged. However, lower copper and PGM production underline the importance of monitoring quarterly timing, product flows and operating consistency.

The Metalnomist Commentary

Nornickel’s first-quarter figures suggest stability in nickel but greater quarterly volatility in copper and PGMs. For global buyers, the bigger issue is not only production volume, but how Russian-origin metals move through increasingly complex trade and compliance channels.