China Aerospace-Grade Titanium Sponge Exports Set to Rise as OEMs Diversify Supply

China Aerospace-Grade Titanium Sponge

China aerospace-grade titanium sponge exports are expected to rise over the next five years as western aerospace supply chains look for additional qualified raw material sources. Chinese producer Chaoyang Jinda Titanium expects international shipments of qualified aerospace-grade sponge to increase from around 1,000t this year to 10,000t by 2030.

The shift reflects a deeper change in the aerospace titanium supply chain. Western aircraft manufacturers and ingot melters are trying to reduce exposure to Russian supply, while aircraft build rates are expected to rise from 2027.

China aerospace-grade titanium sponge is therefore moving from a limited export niche into a potential supply-chain balancing tool. However, tariffs, qualification risk and geopolitical uncertainty will limit how quickly US and European buyers adopt Chinese material.

The opportunity is strongest in standard-quality structural titanium grades. Premium-quality sponge for engine, landing-gear and other critical applications is likely to remain controlled by established suppliers with long qualification histories.

Western Aerospace Buyers Face a Supply-Diversification Challenge

Aerospace-grade sponge demand is expected to recover from 2027 after a weaker 2026 caused by inventory normalisation. Mills have been reducing stocks of semi-finished titanium parts and raw materials, but aircraft production plans point to higher requirements later in the decade.

The timing is important. Airbus and Boeing both carry long aircraft backlogs, creating a decade of production visibility. This forces mills and original equipment manufacturers to look beyond short-term demand swings and secure raw material sources for future build-rate increases.

Western OEMs also continue to reassess Russian titanium exposure. If procurement from Russia declines, the market will need alternative aerospace-qualified sponge to fill the gap. Japan’s Toho Titanium and Osaka Titanium are expanding, while China is preparing to supply more qualified material.

Global approved aerospace-grade sponge supply excluding Russian products is expected to rise from about 74,000t this year to around 91,000t by 2030. Demand is expected to grow at a similar pace, leaving the market sensitive to which suppliers are included in purchasing programmes.

The supply-demand picture changes significantly depending on China and Russia. Excluding both suppliers creates a tighter market. Including them creates more apparent supply availability. This makes qualification and geopolitical acceptability just as important as physical capacity.

Some US ingot producers began qualifying Chinese titanium sponge in 2024. US imports from China rose to a 10-year high of 1,069t that year, showing that buyers were willing to test Chinese material when diversification pressure increased.

However, imports fell to 155t last year and no Chinese sponge imports were reported in January-February 2026. Tariff volatility, high mill inventories and policy uncertainty discouraged further purchasing.

This shows the main barrier for China aerospace-grade titanium sponge. Aerospace qualification requires multi-year commitments, stable documentation, repeatable quality and customer confidence. Buyers will not qualify a new source quickly if they fear trade rules could change again.

Titanium is exempt from the latest 10% US tariff, and overall duties have fallen back to 40% from 60%. But the rate itself is not the only issue. For aerospace buyers, volatility can be more damaging than the actual tariff level.

A mill can absorb or price a known tariff. It cannot easily build a long-term qualification strategy around unpredictable policy. This is why US buyers may limit Chinese sponge procurement to 15-20% of requirements, even if the material is technically acceptable.

Europe and Asia-Pacific may offer more immediate export channels. China already supplies aerospace-grade sponge to buyers in those regions, supporting shipments even when US demand is limited.

Capacity Expansion Could Change the Titanium Sponge Balance

China is preparing a large wave of aerospace-grade sponge capacity additions. Several major projects are scheduled to come on line soon, with combined new capacity of around 110,000 t/yr.

The scale is unprecedented. The planned additions exceed the combined existing capacity of Japan’s Toho and Osaka Titanium, Kazakhstan’s Ust-Kamenogorsk Titanium and Magnesium Plant, and Saudi Arabia’s ATTM.

China’s expansion is driven by two demand streams. Domestic aerospace demand is rising from the Comac C919 programme and military aircraft production. At the same time, producers expect higher export demand as western OEMs diversify away from Russia.

China’s titanium mill product demand already has a meaningful aerospace base. Aerospace applications accounted for about 20% of China’s titanium mill product demand in 2025, or roughly 31,280t. The chemicals industry remained the largest segment at 48%.

The domestic base gives Chinese sponge producers a stronger platform for quality improvement. Aerospace production experience matters because sponge qualification depends on consistency over time, not only nameplate capacity.

Still, some market participants question whether all new capacity can secure international aerospace qualification. New lines may need years of operating history before western melters and OEMs accept material for aircraft applications.

This is a critical distinction. China may have large physical capacity, but aerospace supply depends on approved, audited and repeatable production. Capacity alone does not guarantee market access.

Price competitiveness may support adoption. Domestic China aerospace-grade sponge prices have recently held firm at 55,000-57,000 yuan/t ex-works because of cost pressure. That remains competitive against some western supply routes, especially if buyers need alternative non-Russian material.

However, qualification is likely to split the market by application. Standard structural titanium grades are more likely to accept Chinese sponge over time. These grades support airframes and less critical structural components where qualification remains strict but less restrictive than engine-grade applications.

Premium-quality sponge will be harder to penetrate. Engine, landing-gear and other demanding aerospace uses require deeper qualification, tighter chemistry control and stronger confidence from prime contractors and tier suppliers.

Airbus’ titanium demand outlook adds another layer. The A350 is a high titanium-bearing platform, with titanium representing around 15% of aircraft weight. As A350 production rises toward 2027 and 2028, titanium demand visibility should improve across the supply chain.

That demand pull could make Chinese material more attractive if western supply tightens. But buyers will still balance cost, qualification, geopolitics and supply security.

For Chinese producers, the path is clear but difficult. They must prove consistent aerospace-grade quality, build long-term customer trust, manage export documentation and navigate trade policy risk.

For western OEMs, the decision is strategic. China aerospace-grade titanium sponge could reduce Russia exposure and improve supply flexibility. But it also introduces another geopolitical dependency at a time when aerospace and defence supply chains are under closer scrutiny.

The most likely outcome is partial adoption. Chinese sponge may become a growing supplement for standard-quality structural grades, while established Japanese, Kazakh, Saudi and other qualified suppliers remain central to premium aerospace applications.

The Metalnomist Commentary

China aerospace-grade titanium sponge will become harder for western aerospace supply chains to ignore as aircraft build rates rise and Russian exposure narrows. The decisive issue is not capacity, but whether Chinese producers can convert new output into trusted, qualified and politically acceptable supply.

Hailiang Saudi Copper JV Targets Middle East Processing Growth

Rawas

Hailiang Saudi copper JV plans will give Chinese copper products producer Zhejiang Hailiang a new manufacturing platform in Saudi Arabia. The company plans to form a joint venture with Saudi investment firm Rawas to build a $566mn copper processing plant at the port of Dammam.

The Hailiang Saudi copper JV is planned with 150,000 t/yr of copper processing capacity. The plant will include copper pipes, copper bars, recycled copper and copper foil, giving the project a broad downstream product mix.

The agreement gives Hailiang a 51% stake in the venture, while Rawas will hold 49%. The project still requires approval from the Saudi government and Hailiang’s shareholders before the partners finalise the investment.

The Hailiang Saudi copper JV reflects a wider shift in the copper products industry. Chinese processors are increasingly looking overseas to secure market access, reduce trade exposure and position closer to growth regions in the Middle East, Europe and Africa.

Dammam Plant Adds Copper Foil and Recycling Capacity

The planned Dammam plant will include 30,000 t/yr of copper pipe capacity and 20,000 t/yr of copper bar capacity. These products support construction, cooling systems, power infrastructure, industrial equipment and manufacturing supply chains.

The project also includes 50,000 t/yr of recycled copper capacity. This is strategically important because copper scrap is becoming a more valuable feedstock as concentrate markets tighten and buyers seek lower-carbon copper units.

The planned 50,000 t/yr of copper foil capacity adds a higher-value growth angle. Copper foil is used in batteries, electronics, printed circuit boards and advanced electrical applications. That gives the project relevance beyond traditional copper tube and bar markets.

The product mix suggests Hailiang is not only targeting commodity copper processing. It is building a downstream platform that can serve infrastructure, energy, electronics and battery-related demand from one regional base.

Dammam also offers logistical value. A port location can support raw material imports, finished product exports and access to Gulf, African and European customers. This could help Hailiang build a wider regional distribution network.

Saudi Arabia Gains Value-Added Copper Manufacturing Role

Hailiang said it aims to capitalise on Saudi Arabia’s copper ore resources, energy cost advantages and policy environment. These factors align with Saudi Arabia’s wider ambition to expand industrial manufacturing and mineral value chains.

For Saudi Arabia, the project could support a shift from resource availability toward value-added processing. Copper products are increasingly important for grids, buildings, cooling systems, EV infrastructure, renewable energy and industrial electrification.

The inclusion of recycled copper also fits the growing importance of circular metal supply. If Saudi Arabia can combine scrap collection, energy advantages and downstream manufacturing, it could strengthen its role in regional copper supply chains.

However, the project faces uncertainty. Hailiang said it is closely monitoring Middle East developments and their potential impact on site selection, construction progress, personnel safety and future operations.

The construction timeline has not yet been fixed. The partners will determine the schedule according to market conditions after the joint-venture agreement receives the required approvals.

This cautious approach is important. Middle East industrial projects can offer strong energy and logistics advantages, but geopolitical risk, financing timing, permitting and supply-chain security can still affect execution.

The Metalnomist Commentary

Hailiang’s Saudi venture shows how Chinese copper processors are internationalising downstream capacity, not only exporting products. The project’s real value lies in combining copper foil, recycling and regional market access inside Saudi Arabia’s industrial diversification strategy.

ATTM Titanium Sponge Operations Continue Despite Middle East Freight Risk

ATTM

ATTM titanium sponge operations remain normal despite rising logistics pressure from the war in the Middle East. The Saudi Arabian titanium sponge producer has reported no direct operational impact and does not expect material disruption to exports at this stage.

The company is a joint venture between Saudi group AMIC and Japan’s Toho Titanium. Its plant is located in Yanbu, on Saudi Arabia’s Red Sea coast, giving the facility strategic access to international titanium feedstock and export routes.

ATTM titanium sponge operations matter because the company supplies aerospace-grade titanium sponge to major Western markets, including the US, UK, France, and Italy. It also supplies ferro-titanium grades to Estonia, with smaller volumes shipped elsewhere.

Titanium Supply Chain Faces Freight and Feedstock Exposure

Regional freight markets have become more volatile as conflict disrupts shipping routes and energy-linked supply chains across the Middle East. Several aluminium production facilities have already faced production pressure because they could not secure imported feedstocks, energy supplies, or export access.

ATTM said it is actively managing logistics and does not anticipate material export disruption. This is important because Saudi Arabia imports most of its titanium ore and concentrate feedstocks from Mozambique and Australia.

ATTM titanium sponge operations therefore depend not only on plant performance, but also on inbound ore logistics and outbound sponge shipment routes. Any sustained disruption in freight availability, insurance costs, or port access could still affect titanium supply timing even if production remains stable.

Aerospace Sponge Output Remains Strategically Important

ATTM produced 12,000t of titanium sponge in 2025, compared with a nameplate capacity of 15,600 t/yr. That makes the company a meaningful non-Russian and non-Chinese titanium sponge source for aerospace and industrial customers.

The company’s relationship with Toho Titanium also strengthens its technical position. Aerospace-grade sponge requires strict control over chemistry, trace elements, and production consistency, making qualification and supplier reliability more important than spot-market availability.

For Western aerospace supply chains, stable ATTM titanium sponge operations provide reassurance during a period of geopolitical stress. However, the situation also highlights a broader vulnerability: titanium sponge supply remains concentrated in a small number of qualified producers, while feedstock logistics depend on long-distance maritime routes.

The Metalnomist Commentary

ATTM’s stability is positive for aerospace titanium buyers, but the real risk sits in logistics rather than furnace operations. Titanium sponge customers should treat Middle East freight disruption as a supply-chain risk that can emerge before production itself is affected.

Saudi Aramco Facility Damage Deepens Doubts Over Post-Ceasefire Oil Stability

Saudi Aramco

Saudi Aramco facility damage has exposed how fragile the post-ceasefire energy picture remains. Iranian attacks hit the East-West pipeline, the Manifa oil field, and several refining and export sites shortly after the 7 April ceasefire announcement. These strikes cut both production and export capacity at a critical moment. As a result, Saudi Aramco facility damage is now one of the most important signals that regional oil flows are still far from secure.

The East-West pipeline is especially important because it became Saudi Arabia’s main export route after navigation through the Strait of Hormuz was effectively shut down. An attack on one pumping station cut pipeline capacity by 700,000 b/d. Another strike reduced Manifa production capacity by 300,000 b/d. Therefore, Saudi Aramco facility damage has weakened both upstream output and the main logistical workaround for Hormuz disruption.

The attacks also spread beyond crude production. Saudi officials said Iranian strikes targeted Satorp, Ras Tanura, Samref, and Riyadh refineries, while damage at Juaymah curbed LPG and NGL exports. One Aramco security staff member was killed and seven workers were injured. Consequently, Saudi oil supply risk now extends across multiple product chains, not only crude exports.

East-West Pipeline Disruption Has Undermined Saudi Arabia’s Main Backup Route

East-West pipeline disruption matters because it hit the exact system Saudi Arabia relied on to bypass Hormuz. The line had reached its full 7mn b/d capacity in late March. That made it the kingdom’s most important energy corridor once tanker traffic through the Gulf became severely constrained. As a result, the attack did not just damage infrastructure. It also weakened Saudi Arabia’s most important export contingency.

This is why the latest attacks carry broader market importance. The region is no longer dealing only with battlefield headlines or temporary price spikes. It is dealing with direct damage to high-value oil infrastructure during a supposed ceasefire period. Therefore, East-West pipeline disruption now raises deeper doubts about how durable any regional de-escalation really is.

The timing makes the situation even more serious. Most of the reported attacks appear to have taken place in the past 48 hours, which places them after the ceasefire announcement. That means the market cannot assume that official pauses in hostilities will quickly restore physical energy stability. Meanwhile, Saudi oil supply risk remains closely tied to both repair timelines and security conditions.

Strait of Hormuz Restrictions Still Dominate the Energy Outlook

Strait of Hormuz restrictions remain the central issue behind the entire market outlook. Despite Tehran’s pledge to reopen the waterway after the ceasefire, access remains heavily limited. ADNOC chief Sultan al-Jaber made that point directly when he said the strait is not open and that movement is still restricted, conditioned, and controlled. Therefore, even if some oil continues to move, the market is still operating under constrained maritime conditions.

That creates a difficult contrast with political messaging from Washington. President Donald Trump said oil would start flowing again very quickly, with or without Iran’s help. However, the physical market is still seeing restricted access, damaged infrastructure, and heightened uncertainty across key facilities. As a result, traders and industrial buyers are likely to keep pricing in significant geopolitical risk.

For industrial supply chains, the implications go beyond energy. Higher freight risk, unstable export routes, and potential refinery disruption can quickly affect petrochemicals, metals, fertilizers, and broader manufacturing inputs. Consequently, Saudi Aramco facility damage is not only an oil market story. It is also a warning that regional conflict continues to threaten global industrial logistics.

The Metalnomist Commentary

This episode shows that a ceasefire headline does not guarantee real energy stability. If the Strait of Hormuz stays restricted and Saudi repair work takes time, the market will continue to treat the Gulf as an active supply-chain risk zone. The real test is no longer diplomacy alone. It is whether critical infrastructure and export routes can return to dependable operation.

Brazil, Saudi Arabia to cooperate for critical minerals

MME

Brazil, Saudi Arabia to cooperate for critical minerals as both governments move to deepen strategic resource ties. Brazil, Saudi Arabia to cooperate for critical minerals through a new working group that will align policy, investment, and project development. As a result, Brazil, Saudi Arabia to cooperate for critical minerals with a clear focus on exploration, mapping, and capital mobilisation.

Brazil’s mines and energy ministry and Saudi Arabia’s industry and mineral resources ministry will establish the working group to coordinate priorities. Brazilian minister Alexandre Silveira met Saudi minister Bandar Al-Khorayef in Riyadh to advance bilateral cooperation. Meanwhile, Silveira also sought support from Saudi Arabia’s Public Investment Fund to finance projects that map Brazil’s mineral potential.

Why Saudi capital matters for Brazil’s iron ore, copper, and exploration push

Brazil, Saudi Arabia to cooperate for critical minerals at a time when Brazil wants faster project execution in key regions. Silveira is targeting streamlined development for iron ore and copper projects in northern Pará and southeastern Minas Gerais. Therefore, patient capital and structured financing could reduce timelines for studies, infrastructure, and early-stage buildout.

The outreach also signals a push to broaden Gulf participation in Latin American mining. Silveira wants to attract investment from Manara Minerals, which already has ties to major Brazilian iron ore supply. However, investors will still weigh permitting risk, logistics, and long-cycle commodity price exposure.

Rare earths and uranium strengthen the strategic case

Brazil, Saudi Arabia to cooperate for critical minerals partly because Brazil holds major strategic resources beyond bulk commodities. Brazil has one of the world’s largest rare earth reservoirs and a top-tier uranium reserve base. Meanwhile, Brazil has mapped only about 30% of its underground territory, leaving significant discovery upside.

More systematic mapping can re-rate Brazil’s pipeline from “resource-rich” to “project-ready.” As a result, downstream interest can expand from mines into processing, refining, and longer-term supply agreements. However, execution will hinge on data quality, stable regulation, and credible ESG management in new districts.

The Metalnomist Commentary

This cooperation looks like a classic “capital meets geology” alignment. However, Brazil will only convert interest into deals if mapping data becomes bankable and project permitting stays predictable. The next signal to watch is whether funding targets early-stage exploration or full project development.

Maaden and MP Materials to Build Integrated Rare Earth Supply Chain in Saudi Arabia

Maaden

US-Saudi Partnership Targets Full-Scale Rare Earth Value Chain

Maaden and MP Materials have signed a strategic agreement to build a fully integrated rare earth supply chain in Saudi Arabia, marking a pivotal move for both nations. The Focus Keyphrase "rare earth supply chain" reflects a growing push to secure critical mineral independence amid rising geopolitical and technological pressures.

The partnership will span mining, separation, refining, and permanent magnet production, creating a vertically integrated value chain within the Kingdom. MP Materials emphasized that the collaboration aligns with U.S. efforts to diversify rare earth sourcing beyond China, while also advancing Saudi Arabia’s industrial and economic diversification goals.

Saudi Arabia Expands Mining as Third Economic Pillar

Saudi Arabia is aggressively investing in its mineral wealth to reduce dependence on hydrocarbons. With newly raised mineral resource estimates valued at SAR9.4 trillion ($2.5 trillion), the government is prioritizing mining as the third pillar of Vision 2030. Of this, SAR238 billion is estimated to be in rare earth elements, vital for electric vehicles, wind turbines, and defense systems.

This partnership with MP Materials will leverage both parties' strengths: Maaden’s regional exploration expertise and infrastructure, and MP Materials’ advanced rare earth processing technology developed in the U.S.

Strengthening Strategic Supply Chains Between Allies

The deal also reflects growing US-Saudi alignment on critical minerals, reinforcing bilateral cooperation in global supply chain resilience. As countries race to secure reliable sources of rare earth elements (REEs), this joint venture positions Saudi Arabia as a future hub for REE manufacturing in the Middle East.

By localizing the full rare earth supply chain, the initiative will support downstream sectors like advanced manufacturing, energy transition technologies, and defense — while reducing reliance on Chinese processing capacity.

The Metalnomist Commentary

The Maaden–MP Materials agreement represents a transformational step in reshaping global rare earth supply dynamics. As the world diversifies away from China-centric supply routes, Saudi Arabia’s strategic investments — paired with U.S. technology — are positioning the Kingdom as a future leader in the rare earth economy.

Global Aerospace-Grade Titanium Sponge Supply Expands Despite Japanese Slowdown

Titanium Sponge

Higher utilization in Kazakhstan and Saudi Arabia offsets Japan’s decline as China eyes industrial market growth

Global Titanium Sponge Output Rises in 2024

Titanium sponge production from aerospace-approved suppliers grew in 2024, reaching 89,000 metric tons — a 6% increase from 2023. This rise came despite a production decline in Japan, which was balanced by higher capacity utilization in Kazakhstan and Saudi Arabia. The U.S. Geological Survey (USGS) and industry data confirm this upward trend, driven primarily by strategic expansion in the Middle East and Central Asia.

Japan's production fell to 55,000t in 2024, down from 57,000t in 2023. Inventory adjustments by domestic aerospace consumers were the primary cause. In contrast, Saudi Arabia's AMIC-Toho Titanium Metal ramped up output to 15,000t, nearing its 15,600 t/year capacity. Kazakhstan also maintained high utilization levels, strengthening its role as a stable sponge supplier for critical aerospace applications.

China Expands Industrial Market Footprint

While China’s titanium sponge remains unqualified for aerospace, its influence in industrial markets surged in 2024. Chinese production held steady at 220,000t, but capacity climbed to as much as 320,000 t/year, according to market participants. Japan’s imports of unwrought titanium from China rose sharply — from 451t in 2023 to 1,198t in 2024 — suggesting increased acceptance of Chinese sponge and ingot in industrial-grade production.

China’s growing presence is reshaping competition, particularly in Japan, where CP-grade metal demand dominates. Although Chinese sponge lacks aerospace certification, Metalnomist understands that select U.S. buyers are testing small volumes for future qualification — despite ongoing tariff uncertainties. The U.S. imported 1,068t of sponge from China in 2024, up from 154t the year before.

U.S. Aerospace Demand Softens Amid Boeing Constraints

U.S. titanium sponge imports from Japan declined in 2024 to 27,692t, down from 31,387t in 2023. This contraction reflects softer demand from American ingot melters due to lower-than-expected build rates for Boeing’s 787 Dreamliner and 737 Max programs. Persistent supply chain challenges further impacted intake, signaling a temporary slowdown in titanium conversion activity for aerospace.

Despite this, global titanium sponge markets remain dynamic. Kazakhstan and Saudi Arabia continue to play a vital role in balancing supply, while China's push into the industrial sector could eventually redefine global sourcing strategies.

BYD Signs World’s Largest Energy Storage Deal with Saudi Electric Power

BYD Lithium Battery

Landmark lithium battery contract supports Saudi Arabia’s 2030 renewable energy target

Chinese energy storage leader BYD has signed a landmark contract to supply 12.5GWh of energy storage systems (ESS) to Saudi Electric Power. This agreement now marks the largest single ESS contract globally by capacity, according to BYD’s announcement on 14 February.

The new deal builds on BYD’s prior delivery of 2.6GWh to Saudi Electric Power, bringing the total supply to 15.1GWh. The two companies did not disclose the contract timeline. However, BYD confirmed that the agreement will significantly support Saudi Arabia’s Vision 2030, which targets 50% renewable energy integration.

BYD scales global reach with LFP-based ESS technologies

BYD began deploying lithium iron phosphate (LFP) battery storage systems 17 years ago. Since then, it has completed over 350 energy storage projects worldwide, supplying more than 75GWh to global markets.

As of 2024, BYD's ESS and power battery installations reached 194.7GWh, up 29% year-on-year. Of that, 135.02GWh was power battery installation alone, based on data from the China Automotive Battery Innovation Alliance.

These results further establish BYD as a global ESS leader, particularly as Chinese companies accounted for 93.5% of global energy storage shipments last year. In total, global energy storage battery shipments hit 369.8GWh in 2024—a 65% year-on-year increase.

Energy storage drives Saudi diversification efforts

The partnership between BYD and Saudi Electric Power aligns with the kingdom’s strategic push toward energy diversification and grid modernization. As Saudi Arabia ramps up utility-scale solar and wind projects, the need for large-scale battery storage grows rapidly.

BYD’s advanced LFP technology offers long cycle life, thermal stability, and safety—making it ideal for the desert climate and high-demand grid applications in the region. This deal positions BYD as a critical technology supplier in Saudi Arabia’s clean energy roadmap.

Peru Backs Saudi Arabia’s Rise as a Global Critical Minerals Hub

Saudi Arabia

US-led strategy to diversify global refining draws international support

Peru has expressed strong support for Saudi Arabia’s growing role in the global critical minerals industry, aligning with US efforts to reduce dependence on China. Speaking at the Munich Security Conference, Peru’s Foreign Minister Elmer Schialer called the US policy a "good strategy" to counter mineral supply monopolies and lower global processing costs.

The US has backed Saudi Arabia's ambitions to build a diversified critical minerals refining and processing hub. This aligns with broader Western goals to create alternatives to China, which currently controls around 90% of global mineral processing capacity.

Saudi Arabia boosts global capacity with Vision 2030 investments

Saudi Arabia’s Vision 2030 aims to reduce the kingdom’s dependence on oil by investing in strategic sectors, including mining and electric vehicles. In January, Riyadh announced a new $100 billion mineral investment plan, with $20 billion already in advanced development stages.

The Ministry of Industry and Mineral Resources also upgraded the estimated value of Saudi Arabia’s unexploited mineral reserves from $1.3 trillion to $2.5 trillion. These reserves include high-demand resources like copper, gold, bauxite, potash, and rare earths—key materials for clean energy and defense technologies.

Global alliances forming amid China’s tightening controls

China has tightened its export restrictions on critical mineral processing technologies, especially following trade tensions with the US. In response, countries like Saudi Arabia are being courted by Western governments to build alternative supply chains.

Peru’s endorsement of Saudi Arabia’s mineral ambitions reflects growing support for a multipolar critical minerals market. Schialer emphasized that having multiple global centers for mineral refining would lower production costs and improve economic resilience.

Saudi Aramco and Ma'aden, the kingdom’s state-controlled mining firm, also launched a joint venture to explore and extract energy transition minerals. These steps position Saudi Arabia as a potential key player in the future of global mineral security.

India and Saudi Arabia Forge Partnership in Critical Mineral Sector

the Future Minerals Forum (FMF)

India and Saudi Arabia have entered into an agreement to enhance cooperation in the critical mineral sector. The two countries aim to collaborate on mineral exploration, sustainable extraction, and the development of resilient supply chains. This partnership is poised to play a significant role in securing essential minerals for clean energy and high-tech industries.

Strengthening Mineral Supply Chains and Reducing Import Dependency

The agreement was formalized during a meeting between India's Union Minister of Coal and Mines, G. Kishan Reddy, and Saudi Arabia's Minister of Industry and Mineral Resources, Bandar Ibrahim Alkhorayef, in New Delhi on February 4. The primary focus of the meeting was to establish international partnerships aimed at mineral security and sustainable development. This initiative aligns with India's National Critical Minerals Mission (NCMM), which seeks to secure a steady supply of critical minerals for various industries.

The discussions emphasized creating reliable and secure supply chains for minerals to reduce import dependency. Both nations recognized the importance of this cooperation in securing minerals necessary for the global energy transition and clean energy systems.

Promoting Domestic and International Collaboration in Mineral Extraction

In addition to strengthening supply chains, the dialogue also focused on advancing both domestic and international collaborations. The goal is to ensure a continuous supply of critical minerals, especially for clean energy technologies and high-tech industries. Furthermore, India and Saudi Arabia agreed to cooperate in adopting advanced mining technologies and innovations that promote sustainable mineral exploration and extraction.

This partnership also builds upon India’s involvement in the Future Minerals Forum (FMF) in Riyadh in 2025. India has shown a strong commitment to securing critical minerals, which are vital for the transition to clean energy and the future of global energy systems.

India’s Commitment to Sustainable Development

At the FMF event, Minister Reddy highlighted India's ongoing efforts to secure the critical minerals needed for energy transition and clean energy initiatives. India is focused on fostering international cooperation to meet the growing demand for these minerals, which are integral to advancing technologies that support clean energy, electric vehicles, and high-tech industries.

Saudi Aramco and Ma'aden Forge Path into Lithium Extraction with New Joint Venture

Saudi Aramco

The Entry of Oil Giants into Lithium Exploration

Saudi Arabia's oil titan, Aramco, in collaboration with Ma'aden, the premier mining entity in the Middle East and North Africa, has unveiled a significant venture into lithium extraction. This partnership marks a pivotal shift, integrating Aramco's expansive drilling technology and financial prowess with Ma'aden's mining expertise. The focus of this joint venture will be on areas within Saudi Arabia that exhibit lithium concentrations as high as 400 parts per million—figures mirroring those of the U.S. Smackover formation, known for attracting investments from global oil leaders like ExxonMobil.

The Impact on the Lithium Market

With this venture, Aramco positions itself as a formidable player in the lithium industry, potentially reshaping market dynamics currently dominated by established producers such as Albemarle. According to Joe Lowry, a renowned independent analyst and host of the Global Lithium podcast, this shift could see major oil and mining companies overtaking traditional lithium leaders by the early 2030s.

A Vision for Future Lithium Demand

Slated to commence production in 2027, the joint operation aims to harness Aramco’s leading-edge technology and Ma'aden’s operational capabilities. Nasir K Al-Naimi, upstream president at Aramco, highlighted the venture’s intention to leverage their combined resources and knowledge. The goal is to meet the soaring global demand for lithium, essential for various technologies, notably electric vehicle batteries, and to support Saudi Arabia's economic diversification efforts.

Alba and Ma'aden End Merger Talks, Reshaping Middle Eastern Aluminum Landscape

Alba

Potential Merger of Aluminum Giants Collapses Despite Initial Enthusiasm

Aluminium Bahrain (Alba) and Saudi Arabia's Ma'aden have mutually agreed to terminate discussions regarding a potential merger. The two Middle Eastern aluminum giants had entered into a non-binding agreement in September to explore the possibility of combining their businesses. This agreement, initially set to expire at the end of 2024, was extended to the end of April 2025 but has now been unexpectedly discontinued.

Factors Leading to the End of Negotiations

The collapse of the merger talks comes as a surprise, especially after Ma'aden acquired a 20.62% stake in Alba from Saudi chemical manufacturer Sabic shortly after the initial agreement was announced. The proposed merger had envisioned a cross-listing of Alba on the Saudi Exchange and the issuance of new Alba shares to Ma'aden in exchange for the share capital of two of its subsidiaries, Ma'aden Aluminium and Ma'aden Bauxite and Alumina.

Despite the termination of merger discussions, Alba continues to demonstrate strong operational performance. The company recently announced a new production record of 1.622 million tonnes of aluminum in 2024, a slight increase from the previous year.

The reasons behind the termination of the merger talks remain unclear. However, this development will likely have significant implications for the Middle Eastern aluminum industry, potentially altering the competitive landscape and influencing future investment decisions in the region.

China's Coker Shutdown Squeezes High-Sulphur Anode Coke Supply

Motiva

In a significant development within the petroleum coke industry, Zhejiang Petrochemical, a major independent refiner in China, recently halted operations at its delayed coker unit (DCU) on September 19. The shutdown of this facility, which produces high-sulfur, anode-grade petroleum coke, has caused a tightening in the supply of this crucial material. Prior to the shutdown, the unit was churning out approximately 70,000 tons per month of coke with a 6.5% sulfur content and 350ppm vanadium, critical for the anode-grade calcining market.

This unexpected supply disruption is expected to drive demand for alternative sources of high-sulfur anode-grade cokes, with refiners from other regions stepping in to fill the gap. U.S. Gulf refiner Motiva, with its Port Arthur refinery in Texas, may see increased interest in its high-sulfur DCU 1 coke, as well as Saudi Arabia's sponge-grade coke, both of which have similar specifications and production capacities.

Impact on Global Supply and Prices

In addition, Japanese refiner Cosmo Oil's Sakai refinery, which produces approximately 500,000 tons of coke per year with around 7% sulfur and less than 300ppm vanadium, is also expected to be in higher demand. Historically, the Sakai refinery has directed the majority of its production toward its domestic power plant, Yokkaichi Kasumi, but recent plant maintenance has opened the door for increased exports. In fact, Cosmo Oil has been offering this high-sulfur coke to Chinese buyers at a competitive rate of 1,350 yuan per ton ($192 per ton), a significant premium compared to domestic fuel-grade coke prices.

China's coker shutdown has prompted a rise in imports of Japanese coke, with trade data showing imports of 11,000 tons in July and 21,800 tons in August. These figures mark the first time China has imported coke from Japan since November 2023, further highlighting the tightening supply situation in the region.

This development will likely continue to influence global anode-grade petroleum coke prices, driving up demand for both U.S. and Japanese refiners, as China looks to compensate for its lost domestic production.