Energy Fuels Rare Earth Processing Could Receive $725mn US Defense Loan

Energy Fuels

Energy Fuels rare earth processing plans could receive up to $725mn in conditional financing from the US Department of Defense, supporting a major expansion of domestic separation, refining and rare earth metal production.

Energy Fuels rare earth processing strategy centres on its White Mesa mill in Utah, where the company plans to process monazite concentrates into light and heavy rare earth products alongside uranium and vanadium.

Energy Fuels rare earth processing expansion is strategically important because it targets several stages where the US remains heavily dependent on overseas capacity. The company ultimately plans to connect oxide production with domestic rare earth metal and alloy manufacturing.

The proposed loan remains subject to due diligence, final agreements and closing conditions, but it could substantially accelerate Energy Fuels' transition from mineral developer into an integrated critical materials producer.

White Mesa Expansion Targets NdPr and Heavy Rare Earths

The first phase at White Mesa is designed to process up to 10,000 t/yr of monazite concentrate and produce around 1,000 t/yr of neodymium-praseodymium oxide.

The operation will also generate concentrate containing samarium and other heavy rare earth elements.

Energy Fuels is installing additional equipment to process mixed rare earth carbonates and produce separated light and heavy rare earth oxides. Commercial production from this expansion is scheduled for mid-2027.

Phase 2 would significantly increase output. Planned additional capacity includes 5,513 t/yr of NdPr, 48 t/yr of terbium and 165 t/yr of dysprosium.

The expansion would also produce 748 t/yr of concentrate containing samarium and other heavy rare earths.

These materials are strategically important for high-performance permanent magnets used in defence, aerospace, electric vehicles, robotics and other advanced technologies.

The Phase 2 project carries an estimated capital cost of $419mn. Energy Fuels estimates NdPr operating costs of $29.39/kg using feedstock from its Vara Mada project in Madagascar.

Global Feedstock and US Alloy Capacity Build an Integrated Chain

Energy Fuels is developing several heavy mineral sands projects that could provide monazite and other rare earth-bearing feedstocks.

The company fully owns Vara Mada in Madagascar and Bahia in Brazil, while holding a 49% interest in the Donald project in Australia.

This geographic diversification could give White Mesa access to multiple sources of feedstock rather than relying solely on US mine production.

The company also plans to move further downstream through the proposed acquisition of Australian Strategic Materials.

That transaction would support development of the American Metal Plant in the US, with initial rare earth alloy capacity of 2,000 t/yr and potential expansion to 4,000 t/yr.

Permitting is expected to continue through 2026, followed by a two-year construction period.

If these projects proceed as planned, Energy Fuels could control a supply chain extending from mineral sands and monazite through separated oxides to rare earth metals and alloys.

The Metalnomist Commentary

Energy Fuels is building one of the more complete non-China rare earth chains in the US. The key strategic value lies in linking diversified monazite feedstock with heavy rare earth separation and domestic alloy production.

Phoenix Tailings Rare Earth Refining Expansion Secures $500mn US Defense Loan

Phoenix Tailings Rare Earth

Phoenix Tailings rare earth refining expansion has secured a conditional $500mn loan from the US Department of Defense, providing major financial backing for new domestic separation and metallization capacity.

Phoenix Tailings rare earth refining plans could receive around $1bn in combined government and private capital. The funding will support expansion at existing facilities and development of a new US rare earth separation and metallization plant.

Phoenix Tailings rare earth refining is strategically important because the company operates downstream of mining, targeting the processing stages where the US remains most dependent on overseas supply. These include rare earth separation, metal production and alloying.

The company must still satisfy financial, technical, legal and other conditions before drawing the DOD loan.

Freedom Facility Targets the Critical Separation-to-Metal Gap

Phoenix Tailings currently operates metallization facilities in Burlington, Massachusetts, and Exeter, New Hampshire.

The Exeter plant opened in October 2025 with capacity to produce 200 t/yr of light and heavy rare earth metals. The site has potential to expand to 1,000 t/yr.

Initial production includes neodymium-praseodymium metal and dysprosium-iron alloy. Phoenix plans to broaden output into dysprosium, terbium, samarium, yttrium and gadolinium, alongside strategic metals including germanium and gallium.

This product mix gives the company exposure to permanent magnets, defence systems, aerospace, electronics and other advanced manufacturing markets.

The planned Freedom facility will extend the model further by combining rare earth separation with metallization. Initial operations are targeted for 2028.

The facility is designed to accept multiple feedstocks, including mined concentrates, recycled material and secondary resources. This flexibility could reduce dependence on any single upstream source.

That is particularly important for heavy rare earths, where global separation and metal production remain highly concentrated.

Federal and Private Capital Accelerate US Processing Buildout

The $500mn DOD loan follows additional federal backing for Phoenix Tailings.

The Department of Energy recently selected the company as one of two recipients under a $134mn programme supporting demonstration-scale rare earth processing from domestic industrial waste.

Phoenix Tailings also raised $116.6mn in Series B financing earlier this year from investors including Olive Tree Capital, Nomura and Traxys.

Its investor base also includes companies with potential downstream demand exposure, such as BMW i Ventures, Yamaha Motor Ventures and Sumitomo-linked Presidio.

This combination of public financing, private capital and strategic investors gives Phoenix a stronger route toward commercial scale.

The industrial significance goes beyond adding another rare earth project. The US already has emerging mining and oxide separation capacity, but metallization and heavy rare earth processing remain major bottlenecks.

Phoenix is targeting precisely those intermediate stages between separated oxides and finished magnets.

If the company reaches its expansion targets, it could become an important domestic supplier of NdPr, dysprosium, terbium and other strategic metals required for US magnet and defence manufacturing.

The Metalnomist Commentary

Phoenix Tailings is targeting one of the weakest links in the US rare earth chain: converting diverse feedstocks into separated materials and usable metals. The $500mn DOD loan shows that Washington increasingly views metallization capacity as strategic infrastructure, not simply another mining investment.

ABTC Lithium Refinery Grant Reinstated for Nevada Project

American Battery Technology Company

ABTC lithium refinery development has regained federal backing after the US Department of Energy reinstated a $115mn grant for the Tonopah Flat Lithium Project in Nevada. The decision restores the full funding package without changes to milestones, technical requirements or grant value.

ABTC lithium refinery plans target 30,000 t/yr of battery-grade lithium hydroxide production from locally mined claystone. The project would process around 11.9mn t/yr of ore at full scale, creating a domestic source of refined lithium for battery manufacturing.

ABTC lithium refinery funding had been terminated in October 2025 after the company completed the first two years of its five-year DOE agreement. The company appealed the decision, leading the department to reverse the termination and allow the project to continue.

The reinstatement strengthens the project's financing position and supports wider US efforts to build domestic lithium mining and refining capacity.

Tonopah Flat Targets 30,000 t/yr of Lithium Hydroxide

The Tonopah Flat Lithium Project is located northwest of Tonopah, Nevada, and is based on a large lithium claystone resource.

ABTC plans to develop the refinery in three stages. The first phase will produce 5,000 t/yr of lithium hydroxide, followed by two additional phases that will each add 12,500 t/yr.

This phased approach reduces the initial capital and execution burden compared with building the full 30,000 t/yr facility immediately. It also gives ABTC time to validate processing performance before expanding capacity.

The DOE originally selected the project for funding in October 2022 to support the first commercial-scale phase. Federal support is particularly important because lithium clay processing remains less established than conventional hard-rock or brine production routes.

If successful, Tonopah Flat could expand the range of economically viable lithium resources in the US and reduce reliance on imported refined battery materials.

Project Economics Depend on Scaling Claystone Processing

ABTC estimates operating costs at $6,994/t of lithium hydroxide, including both mining and refining expenses.

That compares with recent US delivered lithium hydroxide prices of around $19,000-21,000/t, suggesting potentially attractive margins if the company can achieve its projected cost structure and production rates.

However, commercial scale-up remains the key challenge. Claystone deposits can contain large lithium resources, but extraction and refining require technically complex processing and significant material handling.

Processing 11.9mn t/yr of claystone also creates substantial infrastructure requirements. Mining, crushing, leaching, purification and waste management systems must all operate reliably to support full-scale output.

The reinstated DOE grant reduces financing pressure for the first phase, but ABTC will still need to prove that its process can deliver consistent battery-grade lithium hydroxide at commercial scale.

For the US battery supply chain, the project is strategically important because domestic refining remains a major bottleneck. Producing lithium hydroxide inside Nevada would connect upstream resources more directly with North American cathode and battery manufacturing.

The Metalnomist Commentary

The grant reinstatement gives ABTC a second chance to prove lithium claystone at commercial scale. If Tonopah Flat reaches its cost and output targets, it could open a new domestic pathway for US lithium hydroxide supply.

US Rare Earth Supply Gets $134mn Boost for Waste-Based Processing Projects

US Rare Earth

US rare earth supply efforts are gaining another $134mn in federal support as the Department of Energy backs two demonstration projects designed to recover and refine rare earth materials from domestic waste streams.

US rare earth supply development will focus on projects led by the Colorado School of Mines and Phoenix Tailings. Both groups have been selected for award negotiations under the DOE’s Rare Earth Element Demonstration Facility Program.

US rare earth supply remains constrained by limited domestic separation, refining and metallisation capacity. The latest awards target those midstream gaps rather than simply adding new mining projects.

The projects are also notable because both will use waste-derived feedstock. That could create new rare earth supply without depending entirely on conventional mines.

Louisiana Project Targets Rare Earths From Bauxite Waste

The Colorado School of Mines-led project will develop a demonstration facility near the Gramercy alumina refinery in Louisiana’s St John the Baptist Parish.

The facility will process critical mineral-rich bauxite waste into separated rare earth oxides and then refine those oxides into rare earth metals.

This approach is strategically important because alumina production creates large waste streams that can contain recoverable critical minerals. Extracting rare earths from existing residues could turn an environmental liability into a domestic resource.

The project also connects the aluminium and rare earth value chains. Bauxite is primarily processed for alumina, but recovering additional metals could improve resource efficiency and create new revenue streams.

Colorado School of Mines will work with ElementUSA, Pacific Northwest National Laboratory, Principal Minerals and Rare Earth Technologies.

The project therefore combines academic expertise, national laboratory capability and industrial partners. That structure could help move rare earth recovery technology from laboratory development toward commercial-scale deployment.

Phoenix Tailings Adds Domestic Rare Earth Metal Capacity

Phoenix Tailings will build a separate demonstration-scale facility focused on producing high-purity rare earth metals from waste-derived domestic feedstock.

This is especially important because rare earth metal production remains a major bottleneck in western supply chains. Separated oxides still need to be converted into metals and alloys before they can support permanent magnet manufacturing.

Phoenix Tailings will collaborate with the Massachusetts Institute of Technology on the project.

The company’s focus on waste-derived feedstock also supports a circular supply model. Industrial residues, scrap and other secondary materials can complement mine supply while reducing reliance on imported rare earth inputs.

For the US, the strategic objective is integration. Domestic mining or recycling alone is insufficient unless separation, refining, metallisation and downstream manufacturing are also available.

The DOE funding shows that federal policy is increasingly targeting these missing processing stages. If the projects scale successfully, they could strengthen domestic supply for magnets, defence systems, electronics and advanced manufacturing.

The Metalnomist Commentary

The US is increasingly treating industrial waste as a critical minerals resource. The real value of these projects lies in proving that domestic residues can be converted into separated oxides and high-purity metals at commercial scale.

US-Origin Alumina Deal Links Brimstone With Century Aluminum

Century Aluminum

US-origin alumina supply could gain a new domestic source after Century Aluminum agreed to take material from Brimstone’s planned industrial-scale refinery. The agreement supports efforts to reduce US dependence on imported alumina as domestic primary aluminium capacity expands.

US-origin alumina from Brimstone will be produced from calcium-bearing silicate rocks rather than conventional bauxite. The company plans a 350,000 t/yr smelter-grade alumina refinery, with operations targeted to begin in 2034.

US-origin alumina is becoming strategically important because the US relied on foreign sources for 71% of its alumina requirements in 2025. Imports reached 1.3mn t, while domestic refining capacity remains concentrated in a single operating facility.

Neither the offtake volume nor financial terms of the memorandum of understanding were disclosed. However, the agreement gives Brimstone an industrial customer pathway while Century strengthens its potential long-term raw material security.

Domestic Alumina Becomes Critical as US Smelting Expands

Century Aluminum is increasing primary aluminium production as US trade policy raises the cost of imported metal. The company restarted more than 50,000 t/yr of idled capacity at its Mt Holly smelter in South Carolina.

Century is also participating with Emirates Global Aluminium in plans for a new 750,000 t/yr primary aluminium smelter in Oklahoma. If those projects advance, domestic alumina demand will rise alongside US smelting capacity.

The supply problem is clear. Atlantic Alumina’s 1.2mn t/yr Gramercy refinery in Louisiana is currently the only domestic source of smelter-grade alumina.

Even that facility depends on imported bauxite from Jamaica. This means US primary aluminium production remains exposed to foreign raw material supply even when smelting occurs domestically.

Brimstone’s proposed process could change that equation. Its hydrometallurgical technology extracts alumina from calcium-bearing silicate rocks, potentially creating a US feedstock route that does not depend on imported bauxite.

The company is also evaluating other products from the same process, including cement, iron, titanium and magnesium. That multi-product model could improve resource efficiency and project economics if successfully commercialised.

Brimstone Must Prove Scale Before 2034 Supply Begins

Brimstone is currently building a commercial-scale demonstration plant in Reno, Nevada. Operations are expected to begin in 2028, with initial alumina output intended for customer qualification.

That qualification step will be critical. Aluminium smelters require consistent chemistry, purity and physical characteristics before they can use new alumina sources at scale.

The demonstration plant therefore serves as the bridge between process development and industrial acceptance. Brimstone must prove that its non-bauxite route can produce smelter-grade material reliably and economically.

The industrial-scale refinery remains further away. Brimstone has not selected a final site, while the planned 2034 start date means Century will continue relying on existing alumina sources for several years.

Financing is another issue. Brimstone has raised more than $80mn from equity investors but has not disclosed updated capital requirements for its demonstration or commercial refinery.

The company is also challenging the US Energy Department’s decision to revoke a $189mn award previously intended to support the demonstration plant.

The strategic case remains strong. If Brimstone can commercialise its process, the US could gain a new domestic alumina route just as primary aluminium capacity begins expanding again.

The Metalnomist Commentary

The US cannot build a secure aluminium industry by adding smelters while leaving alumina dependent on imports. Brimstone’s real significance is whether it can turn domestic silicate rock into qualified smelter-grade alumina at commercial scale.

Energy Fuels VAC Acquisition Builds Mine-to-Magnet Rare Earth Platform

Vacuumschmelze

Energy Fuels VAC acquisition will create one of the most vertically integrated rare earth supply chains outside China by combining upstream mining and separation with commercial magnet manufacturing. The US rare earths and uranium producer will acquire Germany-based Vacuumschmelze for $1.9bn in cash and stock.

Energy Fuels VAC acquisition gives the company immediate downstream exposure to permanent magnets, including sintered neodymium-iron-boron products, as well as cobalt-iron and nickel-iron soft magnetic materials. VAC serves customers across electrification and industrial markets.

Energy Fuels VAC acquisition also addresses one of the biggest weaknesses in western rare earth strategy. Mining and oxide separation alone do not create a complete magnet supply chain. Rare earth metals, alloys, powders and finished magnets must all be produced and qualified.

The transaction will leave VAC as a wholly owned Energy Fuels subsidiary while maintaining its German headquarters. The structure gives Energy Fuels manufacturing assets across North America, Europe and Asia.

VAC Adds Commercial Magnet Capacity to Upstream Rare Earth Assets

VAC brings established permanent magnet manufacturing capability into Energy Fuels’ portfolio. Its Sumter, South Carolina, facility currently has 2,000 t/yr of permanent magnet capacity.

That site has significant expansion potential. Capacity could eventually rise to as much as 12,000 t/yr, creating a large US manufacturing base for NdFeB magnets.

The strategic value is substantial because permanent magnets sit at the end of a complex rare earth value chain. Neodymium and praseodymium provide the main magnetic properties, while dysprosium and terbium can improve performance at elevated temperatures.

Energy Fuels has already started developing those upstream materials. The company produced pilot-scale high-purity terbium oxide in March 2026 and produced its first dysprosium oxide at the White Mesa Mill in Utah in August 2025.

VAC therefore gives Energy Fuels a downstream destination for materials it is increasingly able to separate and refine itself.

The company also plans to acquire Australian Strategic Minerals, which would add commercial-scale rare earth metal and alloy capacity in South Korea and a planned metals plant in the US.

If both transactions are completed and expanded successfully, Energy Fuels would control a chain extending from mineral resources through oxide separation, metal-making, alloying and finished magnets.

US Government Finance Supports Rare Earth Industrial Integration

Government support is becoming central to Energy Fuels expansion. The company has secured a conditional commitment from the US Office of Strategic Capital for a 20-year loan of up to $725mn.

The financing is intended to accelerate expansion of the White Mesa Mill and construction of a US rare earth metals facility. This helps close the gap between separated oxides and magnet-ready metal and alloy products.

VAC has also received US government support. The company secured a $41mn grant from the US Department of State to develop a US metal-making facility.

These investments show that US rare earth policy is moving toward full-chain industrial capability rather than isolated upstream projects. The focus is increasingly on converting mineral resources into qualified finished components.

For automotive, defence, robotics and industrial customers, this matters because secure magnet supply depends on multiple linked stages. Any missing stage can recreate dependence on external processing.

Energy Fuels is therefore pursuing an unusually broad strategy. The company is not only adding production capacity; it is trying to internalise several of the most difficult steps in the rare earth value chain.

The challenge will be integration. Mining, separation, metallurgy and magnet manufacturing require different technical capabilities, customers and qualification systems. The value of the transaction will depend on whether Energy Fuels can connect those operations efficiently at commercial scale.

The Metalnomist Commentary

Energy Fuels is moving beyond rare earth mining into one of the most complete western mine-to-magnet strategies yet attempted. If the VAC and metals acquisitions are integrated successfully, the company could become a major non-China supplier of both heavy rare earth materials and finished NdFeB magnets.

USA Rare Earth Separation Project Gains DOE Support in Oklahoma

US Department of Energy

USA Rare Earth separation project plans in Stillwater, Oklahoma, have gained federal support as the company prepares to scale pilot rare earth processing technology. USA Rare Earth will receive up to $19.3mn from the US Department of Energy for a pilot-scale rare earth separation project.

USA Rare Earth separation project funding will come through the DOE’s Critical Materials Innovation, Efficiency and Alternatives programme. The total project value is $50.5mn, with $31.2mn expected from non-DOE sources.

USA Rare Earth separation project work will demonstrate a pilot-scale continuous ion exchange rare earth production operation. The facility aims to move the company’s bench-scale process toward a pre-commercial unit.

The project matters because rare earth separation remains one of the most difficult gaps in the US magnet supply chain. Mining rare earth material is not enough unless it can be separated, purified and converted into magnet-ready inputs.

Continuous Ion Exchange Targets Rare Earth Processing Bottleneck

The Stillwater facility will test continuous ion exchange technology as a potential alternative to incumbent solvent extraction. Solvent extraction is widely used in rare earth separation, but it can be complex, chemical-intensive and difficult to scale efficiently.

Continuous ion exchange could offer a different route if it proves technically reliable, cost-effective and suitable for commercial production. The DOE’s support signals that Washington is looking for processing technologies that can reduce dependence on existing separation models.

This is strategically important because separation is the midstream bottleneck in rare earth supply chains. Concentrates and mixed rare earth products must be separated into individual oxides before they can support magnets, defence systems, electronics and clean technology manufacturing.

The project timeline has not been disclosed. That leaves the pace of scale-up uncertain, but the funding gives USAR a stronger platform to move from laboratory development toward industrial demonstration.

For the US, the project aligns with a broader effort to create domestic rare earth processing capacity. Without separation, upstream resources cannot become secure industrial supply.

Magnet Ambition Depends on Separation Scale-Up

USAR is developing a fully integrated US rare earth and permanent magnet supply chain. The company plans to produce 10,000 t/yr of magnets by 2030.

That target depends on more than magnet assembly. USAR needs reliable rare earth feedstock, separation, metal-making, alloying and customer qualification before it can reach meaningful commercial output.

The Stillwater project could support that integration by strengthening the separation stage. If continuous ion exchange scales successfully, USAR may gain a more controlled route from rare earth feedstock to magnet materials.

Federal backing is also increasing. The US Department of Commerce issued USAR a letter of intent in January to provide $277mn of federal funding and a $1.3bn loan.

That level of support shows how rare earths have become part of US industrial policy. Washington is trying to build domestic capacity across the value chain, not only encourage private-sector exploration.

The key challenge remains execution. Pilot separation must prove stable, scalable and economical before it can support a 10,000 t/yr magnet target.

The Metalnomist Commentary

USAR’s DOE-backed project shows that rare earth security now depends on process technology as much as mining. If continuous ion exchange can scale, it could help close one of the most important gaps in the US permanent magnet supply chain.

GTP Tungsten Oxide Stockpile Expansion Strengthens US Defense Supply

GTP Tungsten & Powders

GTP tungsten oxide stockpile plans will expand US access to one of the most strategically sensitive defense metals. Global Tungsten and Powders plans to raise tungsten oxide production capacity at its Towanda, Pennsylvania, plant to about 12,000 t/yr.

The GTP tungsten oxide stockpile will support US defense and critical industries, with initial deliveries expected later this year. The company did not disclose the exact volume dedicated to the reserve.

The GTP tungsten oxide stockpile is significant because tungsten is essential for armour-piercing ammunition, aircraft engine components, electronics, hard metals and other high-performance applications. Defence currently accounts for about 10% of global tungsten demand, but that share is rising as military budgets expand.

GTP, part of Austria’s Plansee group, already has around 10,000 t/yr of tungsten oxide capacity, although output can vary by about 15% depending on operating conditions. The planned expansion would give the US a stronger domestic platform for strategic tungsten oxide supply.

Recycling-Based Supply Supports Traceability and Security

The stockpile will use tungsten oxide sourced from recycled scrap and concentrates. This structure is important because US strategic materials procurement increasingly requires clear sourcing, traceability and supply-chain security.

Recycling is already central to GTP’s Towanda operation. Recycled material accounted for the majority of supply in 2025, when the plant recorded a recycling rate of 90%.

This gives the project a stronger compliance profile. Tungsten supply chains are exposed to geopolitical risk, concentrated processing and origin scrutiny, so recycled feedstock can help reduce dependence on higher-risk primary sources.

Tungsten recycling also supports industrial resilience. Scrap recovery can preserve valuable metal units inside the US system while reducing exposure to foreign concentrate availability.

For defense users, the key requirement is not only tonnage. They need reliable, traceable and qualified material that can be converted into powders, carbides, alloys and components without supply interruption.

The Towanda expansion therefore addresses a strategic gap. It does not only increase tungsten oxide capacity; it creates a more controlled domestic reserve tied to recycled and traceable inputs.

Stockpiling Moves From Emergency Buffer to Industrial Tool

Plansee US Holding has formed a joint venture with Manhattan Five to establish the stockpile. Manhattan Five will oversee warehousing, logistics and long-term asset management, while Plansee will lead production growth and supply.

The structure separates metal production from storage and asset management. That distinction matters because strategic stockpiles require more than buying material. They need inventory systems, logistics, inspection, rotation policies and long-term custody control.

The Defense Logistics Agency manages strategic and critical material procurement for the National Defense Stockpile. This system supports military and federal customers that need access to critical materials during supply disruptions.

The GTP project aligns with broader US priorities and could qualify for support from the Department of Defense, Department of Energy or the Export-Import Bank of the United States.

Washington is also preparing Project Vault, a proposed $12bn critical minerals stockpile for US manufacturers. The programme would be funded by $2bn in private capital and a loan.

The broader policy direction is clear. The US is moving from passive dependence on global tungsten markets toward active supply-chain positioning through stockpiles, domestic processing, recycling and public-private financing.

For tungsten markets, this could tighten competition for clean feedstock, especially recycled scrap and compliant concentrates. It may also raise the strategic value of processors that can meet US sourcing and traceability rules.

The Metalnomist Commentary

GTP’s tungsten oxide expansion shows that US stockpiling is becoming more industrially sophisticated. The strategic advantage will come not from holding material alone, but from linking stockpiles to recycling, domestic processing and qualified defense supply chains.

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.

Korea Zinc Tennessee Smelter Gains FAST-41 Support for Critical Minerals Refining

Korea Zinc

Korea Zinc Tennessee smelter plans have gained federal permitting support after the US Permitting Council added Project Crucible to FAST-41 coverage. The designation is intended to speed permitting for the proposed smelting and refining facility in Clarksville, Tennessee.

The Korea Zinc Tennessee smelter would produce 12 non-ferrous metals, including zinc, copper, lead, antimony, gallium and germanium. It would also produce semiconductor-grade sulfuric acid, making the project strategically relevant to metals, chemicals and semiconductor supply chains.

The Korea Zinc Tennessee smelter is significant because it would be the first large-scale domestic zinc refinery built in the US since the 1970s. It also reflects Washington’s effort to rebuild domestic refining capacity for critical minerals and reduce dependence on overseas processing.

Project Crucible is planned as a $7.4bn investment. Korea Zinc announced the project in December in a joint venture with the US commerce and defense departments after acquiring the adjacent East Tennessee and Mid Tennessee mining complexes and the Clarksville smelter from Trafigura-owned Nyrstar.

Project Crucible Targets a Multi-Metal Refining Gap

Project Crucible is designed to process 1.1mn t/yr of raw materials and produce 540,000 t/yr of finished products. Korea Zinc expects to source feedstock mainly from the US and other North American sources.

This feedstock strategy matters because the US has mine supply and scrap flows, but lacks enough large-scale refining and separation capacity for several strategic materials. Project Crucible could help close that midstream gap.

The product mix is especially important. Zinc, copper and lead provide scale, while antimony, gallium and germanium add critical minerals value.

Gallium and germanium are strategically sensitive because they are used in semiconductors, fibre optics, infrared systems, defence electronics and advanced manufacturing. Antimony is also important for flame retardants, ammunition, lead alloys and military applications.

The facility’s semiconductor-grade sulfuric acid output adds another layer of industrial importance. High-purity sulfuric acid is a key chemical input for semiconductor manufacturing and advanced electronics.

Korea Zinc plans to base the facility on its Onsan smelter in South Korea. That gives the project an established technical reference point and strengthens its credibility as a complex multi-metal refining platform.

FAST-41 Status Supports US Industrial Supply Security

FAST-41 coverage gives Project Crucible a more coordinated federal permitting path. The Permitting Council also signed a memorandum of understanding with Tennessee to align federal and state permitting efforts.

The US Department of Defense will primarily oversee permitting for the project. That role underlines the national security importance of domestic critical minerals refining.

Korea Zinc expects construction to begin in 2027. Phased operations are scheduled to start in 2029 with zinc, lead and copper production.

Finished products are expected to move to US customers by rail. This gives the project a domestic logistics route and supports the broader goal of building mine-to-market North American supply chains.

The project fits a wider US strategy. Washington is trying to accelerate permitting, use defence-linked financing and support domestic refining capacity for materials used in semiconductors, defence, energy infrastructure and manufacturing.

For Korea Zinc, the project offers a major entry into US critical minerals processing. For the US, it provides a rare chance to add large-scale refining capacity across both base metals and strategic minor metals.

The Metalnomist Commentary

Project Crucible shows that the US critical minerals challenge is increasingly about refining, not only mining. If Korea Zinc can execute the Tennessee smelter on schedule, it could become one of the most important non-Chinese multi-metal refining assets in North America.

US Solar Duties Target Asian Cell Imports as Washington Defends Domestic Manufacturing

US solar

US solar duties on cells and modules from India, Indonesia and Laos will raise the cost of imported photovoltaic products after the Commerce Department issued preliminary antidumping findings. The decision allows customs authorities to begin collecting cash deposits from importers.

US solar duties are part of a broader trade case brought by domestic manufacturers that accuse foreign producers of selling solar products at unfairly low prices. The case covers crystalline silicon photovoltaic cells and modules imported into the US market.

US solar duties now combine antidumping margins with earlier countervailing duties. General preliminary duty rates stand at roughly 234% for India, 140% for Indonesia and 103% for Laos.

The decision comes at a critical point for the US solar supply chain. Washington is trying to expand domestic clean energy manufacturing while reducing dependence on lower-cost Asian imports.

Duties Raise Costs for India, Indonesia and Laos Solar Supply

The preliminary antidumping margins differ by country and company. Indian producers face the steepest margin, at about 123%.

Companies in Indonesia face a lower dumping margin of about 35%, while firms in Laos face around 22%. These rates come on top of countervailing duties announced earlier this year.

The combined duty levels could significantly affect solar module sourcing decisions. Importers may need to reassess contracts, landed costs and supply availability if final rates remain high.

The investigation was triggered by a petition from the Alliance for American Solar Manufacturing and Trade. The group includes US manufacturers such as First Solar and Mission Solar Energy, along with Qcells, a subsidiary of South Korea’s Hanwha.

The coalition argued that companies in the three countries benefited from subsidies and sold solar products into the US at unfairly low prices. It also alleged that Chinese-linked manufacturers operating in Southeast Asia were undercutting American-made products.
The decision strengthens the trade protection around US solar manufacturing. But it may also raise near-term procurement costs for developers that depend on imported cells and modules.

Domestic Manufacturing Push Collides With Deployment Costs

The case highlights the tension inside US clean energy policy. The government wants more domestic solar manufacturing, but the solar deployment market still relies heavily on imported equipment.

Antidumping tariffs are intended to counter imports sold below normal value. Countervailing duties target products that benefit from government subsidies.
Together, these duties can protect domestic producers from price competition that regulators view as unfair. They can also reshape trade flows by pushing buyers toward alternative origins or US-made products.

For manufacturers, the ruling supports investment in domestic capacity. Higher duties can improve the competitiveness of US-made solar products and encourage new factory spending.

For project developers, the impact is more complicated. Higher module costs can pressure project economics, especially where power purchase agreements, tax credits and construction budgets were based on cheaper imported supply.

Commerce is expected to issue final antidumping determinations in early September. Until then, the market will face uncertainty around final rates, supplier exposure and contract pricing.

The broader industrial message is clear. Solar policy is no longer only about renewable energy deployment. It is also about manufacturing location, trade enforcement and supply-chain control.

The Metalnomist Commentary

The new US solar duties show that clean energy deployment and industrial protection are increasingly inseparable. The key question is whether Washington can build domestic solar capacity fast enough to offset higher import costs without slowing project growth.

US Sanctions on Hengli Refinery Tighten Pressure on Iranian Crude Flows to China

Hengli Petrochemical

US sanctions on Hengli refinery mark a renewed escalation in Washington’s effort to restrict Iranian crude flows into China. The US Treasury Department sanctioned Chinese independent refiner Hengli Petrochemical, accusing it of importing Iranian crude in violation of US sanctions.

US sanctions on Hengli refinery affect one of China’s largest independent refiners, with capacity of around 400,000 b/d. Hengli has relied heavily on Iranian and Russian crude, while also holding a term supply contract with Saudi Aramco.

US sanctions on Hengli refinery could therefore reshape its crude slate more directly than earlier measures. The sanctions may block future access to Saudi crude, limiting Hengli’s flexibility at a time when Iranian forward cargo availability is already tightening.

The action also comes as the US continues its naval blockade of Iranian trade and the Strait of Hormuz remains largely closed to navigation. This raises the pressure on crude logistics, shadow fleet operations and Chinese refinery procurement.

Hengli Sanctions Target China’s Independent Refining System

The Office of Foreign Assets Control issued a wind-down license allowing Hengli’s counterparties to end business with the refinery by 24 May. This gives suppliers, banks, traders and shipping partners a short window to reduce exposure.

The practical impact could be wider than the direct US designation. Sanctions can affect financing, insurance, shipping, letters of credit, crude supply contracts and trading relationships.

Hengli is particularly exposed because it sits between sanctioned crude flows and more conventional supply channels. The company has relied mostly on Iranian and Russian crude, but it also has access to Saudi term supply.

Losing access to Saudi crude would reduce feedstock optionality. It would also make Hengli more dependent on discounted, politically risky barrels or alternative spot procurement.

The sanctions follow earlier US actions against Chinese independent refiners, ports and terminals in 2025. Those measures failed to stop Iranian crude exports to China, but they increased compliance risk across the trade.

Washington paused new sanctions after October as US-China diplomatic talks resumed. The latest action signals that energy sanctions are again moving ahead despite planned high-level talks between the US and China.

The timing is sensitive. President Donald Trump is scheduled to visit Beijing next month after delaying an earlier trip because of the US-Israel war against Iran.

Shadow Fleet Logistics Face Renewed Pressure

Iranian crude still reaches China through a complex network of intermediaries, shadow fleet tankers and ship-to-ship transfers near Malaysia and Indonesia. These routes obscure origin and help cargoes reach independent refiners.

The US blockade has already reduced offers of Iranian forward cargoes to Chinese buyers. This is important because Chinese refiners depend on predictable discounted flows to maintain margins.

China’s imports from Malaysia and Indonesia reached a record 2.54mn b/d last month. These origins are often used as reported loading points for Iranian crude delivered through transhipment networks.

Floating storage trends also suggest logistics stress. Iranian crude floating storage off China has risen to nearly 20mn bl, while floating storage off Malaysia has fallen sharply from early-year levels.

This may limit future arrivals if fewer cargoes are available for onward delivery. It also suggests that some barrels are waiting near China because discharge, documentation or refinery acceptance has become more complicated.

OFAC also sanctioned 19 shadow fleet vessels accused of moving Iranian crude, LPG and petroleum products to the UAE, Bangladesh and China. This was the second vessel-focused sanctions wave under Operation Economic Fury.

The vessel sanctions matter because shadow fleet capacity is now a strategic part of sanctioned oil trade. If Washington continues to target tankers, freight availability, insurance risk and ship-to-ship transfer costs could rise.

For Chinese refiners, the sanctions increase procurement uncertainty. Iranian crude may remain available, but the cost of handling it could increase through higher freight, longer waiting times and greater compliance risk.

For the broader oil market, the impact depends on whether sanctions reduce actual flows or simply push them through more opaque channels. The US tried similar measures before, but Chinese demand for discounted crude has proven resilient.

Still, the current environment is more fragile. The Strait of Hormuz disruption, higher geopolitical risk and tighter enforcement against tankers make the logistics chain more vulnerable than usual.

The Metalnomist Commentary

The US is targeting the weakest link in Iranian crude flows to China: not demand, but logistics, financing and refinery access. Hengli’s case shows that sanctions are moving from broad pressure toward specific chokepoints in crude procurement and shadow fleet infrastructure.

Lynas Rare Earth Revenue Nears Four-Year High as NdPr Output Rises

Lynas Rare Earth

Lynas rare earth revenue reached its highest quarterly level in nearly four years in January-March, supported by stronger rare earth oxide production, higher sales volumes and firmer year-on-year pricing. The Australian producer reported total sales revenue of A$265mn, more than double a year earlier and almost one-third higher than the previous quarter.

Lynas rare earth revenue was underpinned by continued ramp-up across the company’s facilities. The result marks its strongest quarterly sales performance since April-June 2022, showing that operational recovery and strategic offtake demand are beginning to translate into stronger commercial performance.

Lynas produced 3,233t of rare earth oxide during the quarter, up 69% from a year earlier and 36% from the previous quarter. Neodymium-praseodymium oxide output rose to 1,996t, up 32% on the year and 42% on the quarter.

The company also produced its first batch of samarium oxide in March, ahead of its original April target. This matters because samarium supports specialised magnet, defence and high-temperature applications, giving Lynas another product line beyond core NdPr supply.

NdPr Volumes and Price Floors Strengthen Revenue Visibility

Lynas’ sales volumes rose to 3,131t in January-March, up 29% from a year earlier and 33% from the previous quarter. Its average selling price was broadly steady quarter on quarter, but increased by 68% on the year to A$84.60/kg.

The stronger pricing environment supported Lynas rare earth revenue at a time when buyers are increasingly focused on non-China supply. NdPr remains the core feedstock for rare earth permanent magnets used in electric vehicles, wind turbines, robotics, industrial motors and defence systems.

The company also secured several major offtake agreements during the quarter. On 16 March, Lynas signed a binding letter of intent with the US Department of Defence covering a $96mn light and heavy rare earth oxide supply deal over more than four years.

That agreement includes a price floor of $110/kg for NdPr. Price floors are strategically important because they protect non-China suppliers from price downturns that could otherwise undermine project economics.

Lynas also expanded its rare earth supply agreement with Japan Australia Rare Earths on 10 March. Under the deal, Jare will buy at least 5,000 t/yr of NdPr oxide at a price floor of $110/kg and 50% of Lynas’ heavy rare earth output until 2038.

Lynas will supply Japanese producers with up to 7,200 t/yr of NdPr oxide and 75% of its heavy rare earth oxide output over the agreement period. This gives Japan a stronger long-term supply channel while giving Lynas more predictable demand.

Heavy Rare Earths and Metal Production Define the Next Growth Phase

Lynas’ stronger quarter comes as western governments and industrial buyers try to build rare earth supply chains outside China. The company already has a strategic position because it combines upstream mining with rare earth processing capability.

The next growth phase will depend on heavy rare earths and downstream metal production. Heavy rare earths such as dysprosium, terbium and samarium are critical for high-performance magnets operating under heat, stress and demanding industrial conditions.

The expanded Japanese agreement gives Lynas a commercial route for future heavy rare earth output. This could strengthen supply security for automotive, electronics, robotics and clean-energy manufacturers seeking alternatives to China-dominated rare earth flows.

Lynas is also exploring rare earth metal production outside China, including a potential project in Vietnam with South Korea’s LS Eco Energy. This step is strategically important because rare earth oxides alone do not complete the magnet supply chain.

Oxides must be converted into metals and alloys before magnet makers can produce finished permanent magnets. Building metal-making capability outside China would move Lynas further downstream and improve its role in the ex-China magnet ecosystem.

The company’s quarterly performance therefore reflects more than a revenue rebound. It shows a shift toward long-term offtake, price protection, heavy rare earth supply and downstream integration.

The Metalnomist Commentary

Lynas rare earth revenue shows that non-China rare earth suppliers are gaining stronger commercial support from governments and strategic buyers. The key test now is whether Lynas can convert higher oxide output into deeper metal and magnet supply-chain capability outside China.

USA Rare Earth Serra Verde Acquisition Builds Ex-China Magnet Supply Chain

Serra Verde Group

USA Rare Earth Serra Verde acquisition will give the US rare earth producer direct access to one of the most important heavy rare earth projects outside China. The company has agreed to acquire Brazil’s Serra Verde Group for $2.8bn, accelerating its strategy to build a fully integrated mine-to-magnet supply chain.

The deal includes $300mn in cash and 126.85mn USA Rare Earth shares. After completion, USA Rare Earth shareholders will own 66% of the combined company, while Serra Verde shareholders will own 34%.

USA Rare Earth Serra Verde acquisition is strategically important because Serra Verde owns the Pela Ema ionic clay mine in Brazil. The project targets production of 6,400 t/yr of rare earth oxides by the end of 2027, with plans to double output later.

The acquisition gives USA Rare Earth exposure to four key magnet rare earth elements: neodymium, praseodymium, dysprosium and terbium. These materials are essential for high-performance permanent magnets used in electric vehicles, wind turbines, robotics, aerospace, defence systems and advanced industrial motors.

The transaction also strengthens the company’s position in yttrium. Initial Serra Verde output is expected to include 1,534 t/yr of yttrium, a material whose price has risen sharply in the US market and which has strategic applications in ceramics, phosphors, electronics, alloys and defence-related materials.

Serra Verde Adds Heavy Rare Earth Feedstock and Price-Floor Protection

Serra Verde’s Pela Ema project gives USA Rare Earth a near-term rare earth oxide production base. Ionic clay deposits are strategically attractive because they can contain valuable heavy rare earths such as dysprosium and terbium.

Initial planned output of 6,400 t/yr of rare earth oxides is expected to include 164 t/yr of dysprosium and 29 t/yr of terbium. These are small volumes compared with light rare earths, but they carry high strategic value because they improve magnet performance in high-temperature applications.

Dysprosium and terbium are especially important for permanent magnets used in EV traction motors, wind turbine generators, industrial robotics, guided systems and aerospace components. Without these elements, magnets can lose performance under heat and stress.

The deal also includes a 15-year offtake agreement previously signed by Serra Verde with a special-purpose vehicle funded by US government agencies, including the Department of Commerce and Department of Energy. This gives the project a policy-backed commercial structure rather than relying only on spot-market sales.

The offtake agreement includes price floors for neodymium, praseodymium, dysprosium and terbium. Floors are set at $110/kg for neodymium and praseodymium, $575/kg for dysprosium and $2,050/kg for terbium.

This structure is important because rare earth projects outside China often struggle when prices fall. Price floors can improve project bankability by protecting revenues and reducing the risk that China-linked supply undercuts new producers during market downturns.

Serra Verde will also share 70% of non-China index prices above the floor, net of separation costs. This gives the project exposure to upside while maintaining downside protection.

The company can also monetise non-offtake elements, including yttrium. That flexibility matters because ionic clay resources can contain multiple valuable rare earths beyond the main magnet feedstocks.

The market timing is favourable for heavy rare earth producers. US yttrium oxide prices have risen sharply, while dysprosium and terbium remain high-value magnet materials. Supply chains outside China remain thin, and buyers are increasingly focused on traceable, geopolitically secure material.

However, the acquisition does not remove execution risk. Serra Verde must still deliver target output, manage ramp-up, maintain product quality and connect mine production with separation, metal and magnet capacity.

Mine-to-Magnet Roll-Up Tests Western Rare Earth Integration

USA Rare Earth Serra Verde acquisition is part of a broader roll-up strategy. The company is building its supply chain through acquisitions rather than waiting for long greenfield development timelines.

USA Rare Earth bought UK-based Less Common Metals for $125mn in November. Less Common Metals gives the company rare earth metal and alloy production capability, a critical midstream step between separated oxides and finished magnets.

The company also acquired Texas Mineral Resources for $73mn in March to secure the Round Top heavy rare earth project in Texas. Round Top adds a US-based heavy rare earth resource to the group’s upstream portfolio.

Together, Serra Verde and Round Top are expected to give the combined company 17,100 t/yr of rare earth oxide mining capacity. Separation capacity will total 13,000 t/yr, while expanded metal and magnet-making capacity is planned at 27,500 t/yr and 10,000 t/yr, respectively.

This integration is the key point. Rare earth supply security cannot be solved by mining alone. Ore or concentrate must be separated, refined, converted into metals, alloyed and manufactured into magnets before it can support industrial customers.

Many western rare earth projects fail to cover the full chain. Some have resources but no separation. Others have separation but no heavy rare earth feedstock. Some can produce oxides but lack metal conversion and magnet-making capacity.

USA Rare Earth argues that the merged company will be the only fully integrated magnet supplier outside China. The claim reflects the company’s attempt to combine upstream heavy rare earth resources, separation, metal production and magnet manufacturing in one platform.

That structure could be attractive to customers in defence, aerospace, automotive, robotics and clean energy. These buyers increasingly need non-China supply options that can meet origin, traceability, qualification and security requirements.

The US government-backed offtake component also shows how rare earth supply chains are changing. Western governments are no longer relying only on free-market procurement. They are using price floors, strategic vehicles, financing support and industrial policy to build alternative supply.

Still, integration brings complexity. USA Rare Earth must combine assets across Brazil, Texas, the UK and planned downstream facilities. It must align mining output, separation chemistry, metal production, magnet capacity, customer qualification and government-backed offtake obligations.

The valuation also raises expectations. A $2.8bn acquisition price gives Serra Verde a large strategic premium. The deal will need to deliver heavy rare earth output, stable separation economics and customer demand to justify that value.

The broader market implication is clear. Heavy rare earth supply is becoming the strategic centre of the magnet market. Neodymium and praseodymium remain essential, but dysprosium and terbium determine performance in the most demanding applications.

China still dominates much of the rare earth separation, metal and magnet chain. The USA Rare Earth-Serra Verde deal is an attempt to create an alternative industrial route at scale.

If successful, the combined company could become a rare western platform with upstream resources, heavy rare earth exposure, midstream conversion and downstream magnet capability. If execution slips, it will show again how difficult it is to recreate China’s integrated rare earth ecosystem outside China.

The Metalnomist Commentary

USA Rare Earth Serra Verde acquisition shows that the rare earth race is shifting from single-asset mining stories to integrated supply-chain control. The deal’s real test will be whether USA Rare Earth can turn Brazilian ionic clay output, US heavy rare earth resources, separation capacity and magnet production into a bankable ex-China magnet platform.

US Gallium Recovery Projects Target Domestic Supply Chain for Defense and Semiconductors

DOE(The US Department of Energy)

US gallium recovery projects will receive $5.4mn in funding from the Department of Energy as Washington tries to rebuild domestic supply for a metal critical to defense systems, semiconductors and advanced electronics. The funding will support five US-based projects under the Technology for Recovery and Advanced Critical-material Extraction – Gallium initiative.

The TRACE-Ga initiative is designed to prototype technologies that can recover gallium from US metal-processing feedstocks. This is important because the US is fully import-reliant for gallium and has not produced the metal domestically since 1987.

US gallium recovery projects are gaining urgency because gallium is essential for compound semiconductor materials, including gallium nitride. These materials support power electronics, radio-frequency devices, radar systems, satellite communications, fast chargers, LEDs and other high-performance technologies.

The funding is modest in scale, but strategically important. It signals that the US is no longer focusing only on mining new critical minerals. It is also trying to recover strategic metals from industrial by-products, waste streams and existing processing networks.

TRACE-Ga Funding Targets Recovery From Existing Feedstocks

The DOE award will support five companies working on gallium recovery technologies. Participants include PHNX Materials, Atlantic Alumina Company, Found Energy, Kunin Technologies and Indium Corporation.

The selection of companies shows how broad the recovery opportunity could become. Gallium is not usually mined as a primary product. It is commonly recovered as a by-product from other industrial processes, especially alumina and zinc-related supply chains.

This makes gallium recovery different from conventional mining. The key challenge is not only finding deposits, but identifying feedstocks where gallium exists in recoverable concentrations and developing technologies that can extract it economically.

Industrial waste refiner PHNX Materials could support recovery from complex waste streams. Atlantic Alumina Company brings relevance to alumina-linked feedstock. Found Energy adds an aluminum-related industrial angle, while Kunin Technologies focuses on mineral by-product recovery. Indium Corporation brings downstream metals refining and manufacturing expertise.

The TRACE-Ga initiative therefore targets the middle of the supply chain. It seeks to bridge the gap between laboratory recovery methods and scalable domestic production.

That gap matters because gallium supply is highly concentrated. China dominates primary gallium production and has used export controls to increase pressure on global buyers. For US defense and semiconductor supply chains, reliance on foreign gallium has become a clear strategic risk.

Domestic recovery could help reduce that exposure. Even if early projects produce limited volumes, they can prove process routes, identify feedstock partners and create the technical base for larger recovery systems.

The use of US metal-processing feedstocks also fits a wider circular materials strategy. Instead of waiting for new mines, the US can extract critical materials from industrial streams already moving through domestic facilities.

This could make recovery faster than new primary production. However, it still requires technical success, feedstock security, refining capability and customer qualification.

Gallium Nitride Demand Raises Strategic Pressure

Gallium’s strategic value has increased because of its role in gallium nitride and other compound semiconductor materials. Gallium nitride is widely used where high power, high frequency, efficiency and heat performance matter.

These applications are highly relevant to defense and advanced electronics. Radar, communications systems, satellite technologies, power conversion equipment and semiconductor devices all rely on materials where gallium can be difficult to substitute.

The DOE’s TRACE-Ga funding also sits alongside a larger notice of funding opportunity of up to $69mn. That programme targets technologies and processes that advance domestic production and refining of critical materials, including gallium and gallium nitride for semiconductor applications.

This shows that Washington is building a layered funding strategy. TRACE-Ga supports recovery prototypes, while broader DOE programmes aim to scale refining, alloying and advanced material production.

For the semiconductor industry, domestic gallium supply is not only a raw material issue. It is connected to wafer production, epitaxy, device manufacturing, packaging and defense procurement. A shortage or export disruption at the gallium stage can move through the entire compound semiconductor chain.

This is why gallium recovery matters even if volumes are small at first. Strategic materials often have low tonnage but high consequence. A reliable domestic supply stream can reduce procurement risk for critical systems.

The challenge will be commercialisation. Recovery from waste and by-products can be technically complex because gallium concentrations may be low and feedstock chemistry can vary. Companies must prove that their processes can recover gallium consistently, meet purity requirements and operate at competitive cost.

The US also needs downstream refining capacity. Recovering gallium-bearing material is not enough if the material cannot be refined into forms suitable for semiconductor and defense applications.

The DOE funding is therefore best understood as an early-stage industrial rebuilding tool. It does not immediately solve US gallium dependence, but it helps create the technologies and partnerships needed to rebuild supply.

The Metalnomist Commentary

US gallium recovery projects show that critical mineral security increasingly depends on recovering by-products from existing industrial systems. The strategic test will be whether TRACE-Ga can move beyond prototypes and create reliable domestic feedstock for gallium nitride, defense electronics and semiconductor manufacturing.

Ascend Elements Bankruptcy Exposes Pressure in Battery Recycling Market

Ascend Elements

Ascend Elements bankruptcy filing shows how difficult the battery recycling business has become as electric vehicle adoption slows in the US and Europe. The US battery recycler has filed for Chapter 11 bankruptcy and will use the court-supervised process to restructure liabilities while continuing normal operations.

Ascend Elements bankruptcy comes despite major commercial and government-backed support. The company said it had secured more than $2bn in commercial agreements and a $320mn grant from Poland, but these were not enough to overcome longstanding financial issues and outstanding liabilities.

The filing highlights a broader weakness in the battery recycling sector. Recyclers need steady end-of-life battery and production scrap feedstock, but slower EV growth has limited available material and made it harder to sell recovered products into battery supply chains.

Funding and Offtake Deals Failed to Offset Financial Pressure

Ascend had previously planned to develop cathode active material production in Hopkinsville, Kentucky. However, the company and the US Department of Energy agreed in March 2025 to cancel a $164mn grant for that project.

The company later received a $320mn grant from Poland in May 2025 to build a precursor cathode active material plant. That support showed continued policy interest in battery materials localization, especially in Europe.

Ascend also signed a five-year offtake agreement to supply Trafigura with 15,000t of lithium carbonate from 2027 to 2031. The agreement gave the company a future sales channel, but it did not solve its immediate balance-sheet pressure.

Slower EV Growth Weakens Recycling Economics

Ascend Elements bankruptcy reflects the timing problem facing battery recyclers. Many business models were built around rapid EV growth, rising battery scrap availability and strong demand for recycled lithium, nickel, cobalt and cathode materials.

But slower EV adoption has delayed feedstock growth and reduced market confidence. Without sufficient input material and reliable downstream demand, recyclers can struggle to operate at the scale needed to justify large processing and materials investments.

The pressure is not limited to Ascend. Texas-based recycler Ecobat is selling assets in the UK, France, Italy, Germany and Austria to focus on North America, showing that consolidation and retrenchment are spreading across the sector.

The Metalnomist Commentary

Ascend Elements bankruptcy shows that battery recycling is strategically important but commercially unforgiving. The winners will be companies with secured feedstock, disciplined capital spending and customers ready to buy recycled battery materials at scale.