ChargeScape Rivian Partnership Brings Large EV Batteries Into Grid Services

ChargeScape

ChargeScape Rivian partnership will connect Rivian electric vehicles to utility-managed charging programmes, turning large EV batteries into flexible grid assets that can help manage peak electricity demand.

ChargeScape Rivian partnership is strategically important because Rivian vehicles carry some of the largest battery packs in the US passenger EV market. Earlier R1 models offer capacity of up to 141kWh, while newer R2 models carry around 88kWh.

ChargeScape Rivian partnership also creates a newno revenue model for EV owners. Drivers participating in eligible programmes could earn as much as $3,000/yr by allowing utilities to manage charging or sell stored electricity back to the grid during periods of high demand.

The agreement strengthens the convergence between transportation and electricity infrastructure, creating a distributed energy storage network without requiring utilities to build every battery themselves.

Large EV Batteries Become Flexible Grid Assets

Vehicle-grid integration allows utilities to shift EV charging away from peak periods and, where bidirectional charging is available, draw electricity from vehicle batteries when the grid needs additional supply.

This turns parked EVs into distributed storage assets rather than passive electricity consumers.

Rivian's large battery packs make the economics particularly interesting. A single 141kWh vehicle contains significantly more storage than many residential battery systems, creating substantial flexibility when thousands of vehicles participate together.

Utilities can use this capacity to reduce peak demand, absorb excess renewable generation and improve grid stability.

For EV owners, managed charging creates an opportunity to monetise battery capacity while vehicles are parked. The financial value depends on electricity prices, utility programme rules, battery availability and the frequency of grid participation.

ChargeScape already connects automakers with utilities including DTE, Silicon Valley Power and Xcel Energy. Its automotive shareholders include BMW, Ford, Honda and Nissan.

The platform says its existing partnerships provide access to more than 5mn EVs across the US and Canada, giving it the potential to aggregate substantial distributed battery capacity.

Vehicle-to-Grid Growth Could Reshape Battery Economics

The expansion of vehicle-grid integration changes the economic role of EV batteries. Battery packs can generate value not only through transportation but also through electricity markets.

At sufficient scale, connected vehicles can operate similarly to a virtual power plant, combining thousands of distributed batteries into one controllable resource.

This could reduce the need for some dedicated stationary storage while increasing the utilisation of batteries already manufactured for vehicles.

The model also strengthens demand for sophisticated battery management systems, power electronics, bidirectional chargers and grid software.

For battery materials, the impact is more complex. Greater economic value per battery could improve EV ownership economics and support vehicle adoption, strengthening long-term demand for lithium, graphite, nickel, copper and other materials.

At the same time, better utilisation of existing batteries can increase the amount of energy storage available to grids without requiring an equivalent increase in standalone battery installations.

The ChargeScape-Rivian partnership therefore represents a broader shift toward integrating transportation batteries directly into electricity infrastructure.

The Metalnomist Commentary

EV batteries are evolving from transportation components into grid infrastructure. If vehicle-to-grid programmes scale, automakers and utilities could unlock gigawatt-hours of distributed storage without building entirely separate battery fleets.

Lobito Rail Corridor Resumes DRC Copper Freight After Flood Disruption

Lobito Atlantic Railway

Lobito rail corridor freight has resumed for copper shipments from the Democratic Republic of Congo after repairs reopened a flood-damaged section of railway in Angola. The restart restores a key Atlantic export route for central African copper and cobalt.

Lobito rail corridor operations were interrupted for around two months after severe flooding damaged infrastructure between Lobito and Huambo in April. Emergency repairs have now restored safe rail operations across the affected section.

Lobito rail corridor is strategically important because it gives DRC and potentially Zambian producers a westbound alternative to longer export routes through southern and eastern Africa.

The first international copper train since the reopening marks the return of mineral freight to a route that is becoming increasingly important to western critical minerals strategy.

Atlantic Route Diversifies Copper and Cobalt Logistics

The Lobito corridor links the central African copperbelt with Angola's Atlantic coast, giving miners another route to global markets.

The DRC is one of the world's most important copper and cobalt producers, but its landlocked position makes logistics a critical part of supply security.

Traditional export routes depend heavily on road and rail corridors stretching toward southern and eastern African ports. Congestion, border delays and infrastructure failures can increase transport times and costs.

Lobito offers a shorter western outlet for some producers and reduces dependence on individual transport corridors.

LAR maintained part of the network during the disruption. Rail services continued between Huambo and Luau, while freight was transferred between road and rail through a multimodal contingency system to bypass the damaged section.

That continuity helped limit the impact of the outage, but the disruption still demonstrated how transport bottlenecks can affect mineral availability even when mine production remains unchanged.

Climate Resilience Becomes a Critical Minerals Issue

The flood damage highlights an emerging risk for mining supply chains: physical infrastructure must withstand increasingly severe weather events.

Railways carrying copper and cobalt through remote regions depend on bridges, embankments, drainage systems and other assets that can take significant time to repair after flooding.

LAR is now moving into a second recovery phase focused on engineering studies and measures to improve the railway's resilience.

This matters because future volumes through Lobito are expected to grow as governments and mining companies seek more diversified critical mineral routes.

The corridor is also strategically important to western countries seeking alternative supply chains for copper, cobalt and battery materials.

Reliable logistics could therefore become as important as new mine capacity. Strong copper prices and tightening concentrate markets mean transport disruptions can quickly add regional supply pressure.

If Lobito can maintain higher throughput and withstand future weather events, it could become one of the most important logistics links connecting African mineral production with Atlantic markets.

The Metalnomist Commentary

The Lobito restart shows that critical minerals security depends on transport infrastructure as much as mining capacity. The corridor's long-term value will be determined by whether it can deliver reliable copper and cobalt flows despite climate, congestion and geopolitical risks.

China Strategic Minerals Framework Tightens State Control Over 36 Resources

Strategic Minerals

China strategic minerals policy has entered a more formal phase after Beijing placed 36 mineral resources under tighter central government control. The revised regulations strengthen state oversight of mining, exploration, production quotas and strategic reserves.

China strategic minerals covered by the framework include major industrial metals, battery materials, rare earths, semiconductor metals and energy resources. The rules also include non-metallic materials such as graphite, phosphate, fluorite and high-purity quartz.

China strategic minerals regulation is significant because many of the affected materials are essential to batteries, aerospace, defence, semiconductors, energy infrastructure and advanced manufacturing.

The immediate market impact has been limited because several controls already existed in practice. However, formalising them under a single legal framework could strengthen Beijing's ability to manage supply over the longer term.

Centralised Quotas and Reserves Strengthen Supply Management

The Ministry of Natural Resources, working with the National Development and Reform Commission, will set annual mining quotas for strategic minerals.

The objective is to prevent uncontrolled production while giving central authorities greater control over national resource development.

Approvals for new exploration and mining rights will also be consolidated at the central level. Authorities will restrict the number of mining licences granted for individual deposits.

This could slow uncontrolled capacity growth in some markets while giving Beijing more influence over production timing and regional development.

The new framework also establishes a three-tier reserve system covering physical product inventories, production capacity and undeveloped resource sites.

State and private companies will jointly participate in stockpiling, while resource-site reserves are expected to remain available for at least five years.

This creates a broader security mechanism than conventional commodity stockpiles. China will not only hold material inventories but also preserve future production capability and undeveloped resources.

For strategically sensitive metals, this could provide Beijing with greater flexibility to respond to supply disruptions, price volatility or geopolitical pressure.

Rare Earths and Semiconductor Metals Gain Greater Strategic Weight

The list covers 25 metallic commodities, including iron, copper, aluminium, titanium, vanadium, manganese and chromium.

Battery materials such as lithium, cobalt and nickel are included alongside all 17 rare earth elements.

China has also designated tungsten, antimony, tin and molybdenum as strategic resources, together with semiconductor and specialty metals including gallium, germanium, indium, rhenium, niobium, tantalum, beryllium, zirconium and hafnium.

This combination is important because China already holds dominant positions across many of these supply chains.

Rare earth separation, tungsten processing, antimony, gallium and germanium are particularly sensitive because alternative global processing capacity remains limited.

The inclusion of high-purity quartz also highlights the expanding definition of strategic materials. Quartz is an important input in semiconductor and solar manufacturing, linking mineral security directly with advanced technology industries.

The framework therefore goes beyond mining policy. It strengthens China's ability to manage the upstream materials required for manufacturing competitiveness and national security.

The Metalnomist Commentary

China is moving from individual export controls and quotas toward a comprehensive strategic resources system. The long-term implication is greater state influence over not only current supply, but also future capacity and undeveloped reserves across many of the world's most critical materials.

Alpha HPA Supply Deal Targets South Korean Battery Materials Market

Alpha HPA

Alpha HPA supply deal plans have advanced after the Australian producer signed a non-binding agreement to supply 5,000 t/yr of high-purity aluminium products to a South Korean lithium-ion battery manufacturer.

Alpha HPA supply deal development follows qualification work with a tier-one battery anode producer evaluating ultra-high-purity aluminium nitrate for next-generation synthetic graphite anodes. The agreement strengthens Alpha's exposure to the battery materials market alongside semiconductor demand.

Alpha HPA supply deal volumes also push the company's total committed volumes under binding agreements and letters of intent to 12,350 t/yr, up from 6,900 t/yr in March.

Crossing 10,000 t/yr of committed volumes is particularly important because it satisfies a condition linked to Australian government-backed financing for the company's planned large-scale Gladstone facility.

Battery and Semiconductor Demand Support Gladstone Expansion

Alpha plans to develop a second-stage plant in Gladstone, Queensland, with 10,930 t/yr of production capacity.

The company expects the facility to begin production in the second half of 2027, although a detailed construction timetable has not yet been disclosed.

Government financing could help accelerate the project. Alpha has access to up to A$400mn in loans through Australian infrastructure and critical minerals financing programmes.

The company now plans to target debt drawdown during the second half of 2026 after surpassing the required 10,000 t/yr threshold for customer commitments.

Alpha already operates a smaller commercial plant in Gladstone producing high-purity alumina, alumina trihydrate and aluminium nitrate.

The new facility will be necessary to support larger customer volumes because existing production capacity is far below the level required under recently signed agreements.

The South Korean battery agreement also demonstrates that high-purity aluminium compounds are moving beyond traditional ceramic and industrial applications into advanced battery materials.

Ultra-high-purity aluminium nitrate can support specialised treatments and coatings used in next-generation synthetic graphite anodes, increasing the importance of purity and contamination control.

AI and Battery Markets Create Dual Growth Path for HPA

Alpha expects demand for its products to rise from around 20,000 t/yr this year to nearly 60,000 t/yr by 2030.

Battery materials represent one growth route, but semiconductor manufacturing is becoming equally important.

South Korean and Japanese manufacturers of semiconductors and high-bandwidth memory chips are increasing demand for high-purity materials as artificial intelligence data centres expand.

Alpha converted a previous 1,000 t/yr HPA letter of intent into a binding supply agreement with a South Korean HBM manufacturer earlier this year.

This gives the company exposure to two rapidly growing technology markets: lithium-ion batteries and AI semiconductor infrastructure.

Australia designated high-purity alumina as a critical mineral in 2022 and has since provided Alpha with grants and direct investment alongside loan support.

The industrial objective is clear. Australia is attempting to move from mineral extraction toward higher-value specialty materials that can enter Asian battery and semiconductor supply chains.

The Metalnomist Commentary

Alpha's strongest advantage is its exposure to both batteries and AI semiconductors rather than one single demand cycle. If Gladstone reaches commercial scale, HPA could become another example of Australia moving successfully from raw materials into advanced specialty processing.

Zhongke Anode Projects Cut as Investment Shifts to Oman and Sichuan

Hunan Zhongke Electric

Zhongke anode projects totaling more than 330,000 t/yr will be terminated as Hunan Zhongke Electric concentrates capital on larger developments in Sichuan and Oman. The decision reflects increasingly selective investment across China's rapidly expanding battery anode industry.

Zhongke anode projects being dropped include 130,000 t/yr in Sichuan, 100,000 t/yr in Gansu and 100,000 t/yr in Tangier, Morocco. All three remain at an early stage, limiting the financial impact of cancellation.

Zhongke anode projects are being rationalised despite strong company growth. Anode material sales rose 62% to 363,253t in 2025, while production climbed 66% to 378,469t.

The company will instead prioritise a 300,000 t/yr complex in Luzhou and its first overseas manufacturing project in Sohar, Oman.

Capital Shifts Toward Larger Integrated Anode Hubs

Zhongke has already started construction of the first 200,000 t/yr phase of its Luzhou project. Production is scheduled to begin in the second half of 2027.

A second 100,000 t/yr phase will follow after the first enters operation, creating a combined 300,000 t/yr production base.

The company is also expanding its Zhaotong operation in Yunnan. A third-phase project will add another 100,000 t/yr by the end of 2026.

These investments show that Zhongke is not reducing its overall growth ambitions. Instead, it is concentrating capital in locations where scale, infrastructure and operating economics appear more favourable.

Cancelling early-stage projects also reduces the risk of adding capacity in too many locations at once. China's anode sector has expanded rapidly, increasing pressure on utilisation rates and margins.

Large integrated sites can provide stronger economies of scale in graphitisation, carbonisation and material handling than smaller fragmented facilities.

The strategy therefore represents capacity optimisation rather than a retreat from the battery materials market.

Oman Links Anode Production With Petroleum Coke Supply

Zhongke subsidiary Shinzoom began construction of its first overseas anode project in Sohar, Oman, in May.

The complex is designed for 200,000 t/yr of anode materials. Its first phase will establish graphitisation, screening and carbonisation capacity ahead of larger-scale output planned from the second phase.

Start-up is targeted by the end of 2027.

Oman's location provides an important raw material advantage. The country and wider Middle East have substantial petroleum coke availability, which can support anode feedstock procurement.

This gives Zhongke a potential route to combine regional raw materials with overseas processing capacity outside China.

The decision to cancel the Morocco project while advancing Oman also suggests that feedstock access and project economics are becoming more important in overseas site selection.

For the wider anode market, the restructuring highlights a shift from aggressive capacity announcements toward more disciplined capital allocation. Producers increasingly need secure feedstock, competitive energy and large-scale downstream customers to justify new plants.

The Metalnomist Commentary

Zhongke is not abandoning anode expansion; it is concentrating capacity where feedstock and scale offer stronger economics. Oman is particularly strategic because petroleum coke access could give the company a cost advantage as global anode competition intensifies.

UCB Power BESS Production Gains Tax Support in Brazil

UCB Power

UCB Power BESS production will receive tax support as Brazil seeks to expand domestic manufacturing of battery energy storage systems. The Brazilian battery producer will benefit from reduced import tariffs on foreign components used in production.

UCB Power BESS production adds another industrial layer to Brazil’s growing energy storage market. The incentives will be administered through the Manaus Free Trade Zone framework, although specific tariff reductions have not been disclosed.

UCB Power BESS production also has implications for critical mineral demand. Lithium-ion storage systems require materials including lithium, nickel, cobalt, manganese, graphite, copper and aluminium across cells, electrical systems and enclosures.

The policy therefore supports more than battery assembly. It could help Brazil gradually build a domestic energy storage ecosystem around renewable power, grids and industrial electricity management.

Tax Incentives Strengthen Domestic Battery Manufacturing

Brazil’s Manaus Free Trade Zone provides tax incentives intended to encourage industrial production in the country’s northern region.

UCB Power will gain lower import costs for foreign components required in BESS manufacturing. This can improve the competitiveness of domestic production while Brazil develops more local supply capability.

The incentives remain subject to standard requirements within the Manaus framework, including environmental and research obligations.

Battery storage manufacturing remains dependent on imported cells, materials and electronic components in many emerging markets. Lower tariffs can therefore reduce the cost disadvantage faced by local manufacturers during the early stages of industry development.

UCB already operates battery factories in Manaus and Extrema, Minas Gerais. The company says its portfolio represents more than 7.8GWh of installed capacity.

That existing manufacturing base gives UCB a stronger position to expand into grid-scale and industrial energy storage as Brazilian electricity demand evolves.

BESS Growth Could Create New Critical Mineral Demand

Battery energy storage is becoming increasingly important as power systems integrate more intermittent renewable generation.

BESS installations can store electricity when supply is abundant and discharge it when demand rises, improving grid flexibility and helping industrial users manage electricity costs.

Lithium-ion technology currently dominates the market, creating demand across a broad range of battery materials.

For Brazil, this creates an opportunity to connect domestic battery manufacturing with its substantial mineral resource base. The country has resources across lithium, nickel, manganese and other materials relevant to energy storage.

However, mineral availability alone will not create an integrated battery industry. Brazil will need refining, active materials production, cell manufacturing and recycling capacity if it wants to capture more of the value chain.

Supporting BESS assembly is therefore an early step toward a broader industrial ecosystem rather than the endpoint.

The Metalnomist Commentary

Brazil has the mineral resources and renewable power base to build a larger battery industry, but the missing link remains downstream processing and cell production. UCB’s expansion can help create domestic demand that makes those investments more commercially attractive.

Utah Direct Lithium Extraction Project Advances With Posco-Anson Partnership

Anson Resources

Utah direct lithium extraction development is moving forward after Posco and Anson Resources agreed to build a demonstration plant at the Green River Lithium project in the Paradox Basin.

Utah direct lithium extraction will use Anson’s brine resources, while Posco will lead the design, construction and operation of the demonstration facility. Posco will also pay Anson a $5.2mn facilitation fee under the agreement.

Utah direct lithium extraction is strategically important because the project targets domestic battery-grade lithium production without relying on conventional evaporation ponds. Operations at the demonstration facility are scheduled to begin in 2027, with completion expected in 2028.

The wider Green River project is designed to produce 10,000 t/yr of lithium carbonate and has already secured major permits, financing interest and an anchor customer.

DLE Demonstration Will Test Commercial Processing Route

The demonstration plant will determine whether Posco’s DLE technology can recover lithium from Green River brines efficiently and consistently enough for commercial-scale production.

Direct lithium extraction is attracting growing interest because it can potentially reduce land use and shorten processing times compared with traditional brine evaporation.

However, commercial performance depends heavily on brine chemistry, recovery rates, reagent consumption and water management. Demonstration-scale operation is therefore a critical step before committing to full production.

Posco’s involvement adds technical and industrial expertise to the project. The Korean group has been expanding across battery materials and lithium supply chains, giving the Green River project a stronger downstream connection.

If the demonstration performs as expected, Anson would have a clearer route toward financing and construction of the 10,000 t/yr commercial operation.

Financing and Offtake Strengthen Green River Economics

Green River has already secured several important elements needed for project development.

The US Export-Import Bank has issued a $330mn letter of interest, providing a potential source of debt financing for the project.

Anson also has a binding offtake agreement with LG Energy Solution covering 40% of expected production. That provides long-term demand visibility and directly connects future Utah lithium output with battery manufacturing.

Estimated capital expenditure stands at $495mn, while projected operating costs are $4.37/kg of lithium carbonate equivalent.

Those economics could make Green River competitive if the DLE process reaches targeted recoveries and operating performance.

The combination of Posco technology, US financing support and LG Energy Solution offtake also illustrates how lithium projects are increasingly being developed through integrated partnerships rather than mining companies acting alone.

The Metalnomist Commentary

Green River is becoming a test of whether DLE can move from promising technology to bankable US lithium production. Posco’s involvement reduces technical risk, while Ex-Im financing and LG Energy Solution offtake strengthen the project’s commercial foundation.

Quantum Graphite Offtake Deal Targets Large-Scale Australian Supply

Quantum Graphite

Quantum Graphite offtake deal will supply Sunlands Pure Group with 1mn t/yr of graphite flake from the planned Uley mine in South Australia under a binding 20-year agreement.

Quantum Graphite offtake deal could expand significantly after production begins. The company plans to increase annual supply to around 5mn t within seven years of first output, although the mine has not yet been constructed.

Quantum Graphite offtake deal is strategically important because it links Australian mining with downstream processing in South Australia and Oman. This creates a potential non-China graphite supply chain extending from mine to high-purity refined product.

The project still faces substantial execution risk, however. Quantum has not announced a construction timeline for Uley, while both the Eyre Peninsula processing hub and Oman refinery remain planned developments.

Uley Mine Anchors Integrated Graphite Processing Strategy

Quantum plans to send graphite flake from Uley to the proposed Eyre Peninsula Graphite Hub in Port Lincoln, less than 25km from the mine.

The hub is designed to produce 100,000 t/yr of graphite concentrate at 96% purity. Locating initial processing close to the mine could reduce logistics costs and allow more value to remain in South Australia.

Sunlands then plans to export this concentrate to a proposed refinery near Sohar Port in Oman.

The Oman facility is targeting 100,000 t/yr of 99.99% purity graphite concentrate. That purity level would move the material much further downstream and closer to specifications required for advanced industrial and battery applications.

The proposed structure gives Quantum and Sunlands control over multiple processing stages rather than relying only on raw flake exports.

This is increasingly important in graphite because mining capacity alone does not solve supply-chain concentration. Purification and downstream processing remain strategically important bottlenecks.

Scale Ambitions Depend on Financing and Project Execution

The most ambitious part of the agreement is Quantum's plan to increase supply to around 5mn t/yr within seven years of first production.

That would require a very large mining and processing operation compared with the initial hub capacity of 100,000 t/yr of concentrate.

The difference highlights the amount of infrastructure, financing and downstream capacity that would need to be developed if the project reaches its long-term target.

Quantum has contracted Lycopodium to complete front-end engineering design work for Uley, but no construction schedule has been disclosed.

The company also previously received a $300mn letter of interest from the US Export-Import Bank for a proposed South Carolina refinery. The current status of that project remains unclear following the emergence of the Oman development.

The key question is therefore execution rather than resource ambition. Uley must first reach construction, while the Australian and Omani processing facilities must secure financing, permits and customers.

If those pieces align, the project could become an important source of non-China graphite for battery and advanced materials markets.

The Metalnomist Commentary

Quantum's offtake agreement is strategically attractive because it links mining with downstream purification. The real test will be whether the partners can finance and scale the infrastructure needed to convert an ambitious supply target into reliable graphite output.

Colorado Battery Recycling Law Sets Mandatory Lithium Recovery Targets

Colorado Battery Recycling

Colorado battery recycling law introduces mandatory recovery targets for lithium, nickel and cobalt from electric and hybrid vehicle batteries. The measure creates a more structured framework for recovering critical minerals from end-of-life batteries.

Colorado battery recycling law requires recyclers to recover 50% of lithium from spent batteries by 2031 and 80% by 2035. Nickel and cobalt recovery must reach 90% by 2031.

Colorado battery recycling law will also prohibit landfilling of EV batteries from July 2029. This should push more used packs toward reuse, dismantling and materials recovery.

The legislation strengthens the commercial case for domestic battery recycling by creating clearer collection obligations and long-term recovery requirements.

Mandatory Recovery Targets Support Secondary Battery Materials

The Battery Stewardship Act requires battery stewardship organizations to submit plans covering collection, transportation, processing and recycling.

The lithium target is particularly important because recovering lithium economically has historically been more challenging than recovering nickel and cobalt.

A 50% recovery requirement by 2031 gives recyclers time to improve process efficiency before the threshold rises to 80% in 2035.

The 90% recovery requirement for nickel and cobalt sets an even higher standard. Both metals remain valuable inputs for several lithium-ion battery chemistries.

Recovering these materials can reduce dependence on newly mined supply and create more domestic secondary feedstock for battery manufacturers.

The landfill ban reinforces that objective by keeping valuable battery materials inside the industrial supply chain.

Producer Fees Could Improve Battery Collection and Recycling Economics

Battery providers will fund part of the system through fees linked to their share of battery vehicles registered in Colorado.

An initial programme fee will support implementation. Annual payments beginning by July 2030 will cover administration, enforcement and regulatory costs.

This shifts more responsibility for end-of-life batteries toward companies placing battery vehicles into the market.

The framework could also improve feedstock certainty for recyclers. Reliable access to spent batteries remains one of the biggest challenges facing the emerging US battpery recycling industry.

Over time, the legislation may encourage better pack design for dismantling, reuse and materials recovery.

If similar policies spread to other states, US battery recycling could develop around mandatory recovery standards rather than voluntary collection alone.

The Metalnomist Commentary

Colorado is turning battery recycling into a regulated critical minerals supply chain. The most important benefit may be feedstock certainty, because recyclers need predictable battery volumes as much as better recovery technology.

Brazil Semiconductor Production Gains BNDES Funding as Industrial Strategy Expands

Zilia Technologies

Brazil semiconductor production will receive new government-backed financing after development bank BNDES approved a R143.3mn loan for Zilia Technologies. The funding will support research, production expansion and modernization of the company's manufacturing facilities.

Brazil semiconductor production is becoming part of a broader industrial strategy aimed at reducing dependence on imported electronic components. Zilia will use the financing to develop semiconductor products for smartphones, computers, vehicles, security equipment and other technology markets.

Brazil semiconductor production also increasingly connects with the country's critical minerals strategy. BNDES is preparing major investment in lithium, cobalt, nickel, rare earths and other strategic materials as Brazil seeks to capture more value from its mineral resources.

The investment strengthens Brazil's ambition to move beyond raw material exports and build more domestic advanced manufacturing capacity.

BNDES Funding Targets Domestic Semiconductor Capability

Zilia will use part of the financing to modernize its facilities in Atibaia, Sao Paulo state. The investment is intended to expand research capabilities and improve semiconductor production.

Brazil currently depends heavily on imported technology components, making domestic manufacturing capacity strategically important for electronics, automotive and industrial sectors.

Semiconductors have become increasingly important to vehicle production as electrification, connectivity and advanced driver systems increase chip content per vehicle.

Consumer electronics and security systems provide additional markets for domestic production.

BNDES sees the investment as a way to strengthen industrial resilience while reducing exposure to overseas component shortages.

The financing also builds on Brazil's wider industrial policy. The country's new industry programme launched in 2024 included plans for annual investment to strengthen domestic semiconductor capabilities.

Critical Minerals Could Support a Broader Technology Value Chain

Brazil's semiconductor ambitions sit alongside a much larger critical minerals investment strategy.

BNDES has indicated plans to deploy R50bn into projects linked to strategic minerals including lithium, cobalt, nickel and rare earth elements.

These materials support wider electronics, battery, magnet and advanced manufacturing supply chains. Brazil's large resource base gives the country an opportunity to connect mineral extraction with higher-value industrial processing.

Brazil holds significant reserves of critical minerals, but much of their economic value can be lost if materials are exported before refining, conversion or advanced manufacturing.

The strategic opportunity is therefore downstream integration. Domestic processing, specialty materials and electronics production could allow Brazil to capture more value from resources already present inside the country.

Semiconductor manufacturing itself also depends on highly specialised materials, chemicals, gases and equipment. Building a competitive domestic industry will therefore require more than mineral availability alone.

Brazil will need technology, skilled labour, infrastructure and long-term private investment alongside government financing.

The Metalnomist Commentary

Brazil's opportunity lies in linking mineral wealth with higher-value technology manufacturing rather than treating the two strategies separately. BNDES funding can provide the bridge, but competitiveness will depend on building the processing, materials and technical ecosystem between mines and semiconductor production.

GM Redwood Battery Storage Project Extends EV Battery Value Chain

BESS

GM Redwood battery storage project will deploy repurposed electric vehicle battery packs at a General Motors plant in Michigan, extending the useful life of batteries before final recycling.

GM Redwood battery storage project will combine 100 reused EV battery packs into a 1.5MW/7.2MWh battery energy storage system. The installation will provide dispatchable power and help reduce electricity costs at the manufacturing site.

GM Redwood battery storage project is significant because it connects battery manufacturing, vehicle use, second-life energy storage and materials recovery within one supply chain. Redwood estimates the system will save more than $3mn in electricity costs over its operating life.

The project also shows how retired EV batteries can remain economically valuable even after they no longer meet automotive performance requirements.

Second-Life Batteries Add Value Before Recycling

EV batteries typically retain significant usable capacity when they are removed from vehicles. That remaining energy storage capability can support stationary applications where weight and space are less restrictive than in automotive use.

Repurposing packs for BESS applications can therefore delay recycling while extracting additional economic value from the battery.

For industrial facilities, storage systems can help manage peak electricity demand, provide backup power and shift energy consumption toward lower-cost periods.

The Michigan installation gives GM a direct opportunity to reduce plant electricity costs using batteries already linked to its own vehicle ecosystem.

This model also reduces the need for newly manufactured cells in some stationary storage applications. That can lower incremental demand for lithium, nickel, cobalt, graphite and other battery materials.

However, second-life systems still require testing, battery management and safety controls because used packs can have different degradation histories and performance characteristics.

Redwood Builds Closed-Loop Battery Supply Chain With GM

Redwood's relationship with GM extends across multiple stages of the battery lifecycle. The recycler handles manufacturing scrap, end-of-life EV packs and now second-life energy storage deployment.

Redwood has already received more than 28,000t of material from GM, with another 10,000 EV battery packs expected to enter the pipeline.

The company also works with Ultium Cells, GM's joint venture with LG Energy Solution, to recycle battery production scrap from facilities in Ohio and Tennessee.

This creates a more integrated materials loop. Manufacturing scrap can return quickly to recycling, while vehicle batteries can first enter stationary storage before eventually being processed for material recovery.

The approach could become increasingly important as EV battery volumes grow. Recycling alone captures raw materials, but second-life deployment can add another revenue stage before final recovery.

For automakers, that can improve battery economics while strengthening access to recycled lithium, nickel, cobalt and copper over the longer term.

The Metalnomist Commentary

GM and Redwood are showing that the battery circular economy does not begin with recycling. Second-life storage can create an additional commercial stage between vehicle use and materials recovery, improving both battery economics and supply-chain efficiency.

Trafigura Australia Critical Minerals Deal Backs Copper, Zinc and Lithium Growth

Trafigura, Australia copper-zinc mine

Trafigura Australia critical minerals deal will provide Develop Global with $350mn in financing and expanded offtake support across copper, zinc, lead and lithium projects. The agreement deepens Trafigura’s exposure to Australian critical minerals while giving Develop Global capital to advance two major growth projects.

Trafigura Australia critical minerals deal covers the producing Woodlawn copper-zinc mine, the Sulphur Springs copper-zinc project and the Pioneer Dome lithium development. The financing gives Develop Global a clearer route toward final investment decisions and construction.

Trafigura Australia critical minerals deal also expands existing concentrate offtake arrangements. Another 187,500 dry metric tonnes of copper, zinc and lead and precious-metal concentrates will be added to the 650,000dmt already committed under the original agreement.

The structure combines lending with long-term access to physical metal flows, strengthening Trafigura’s position across multiple energy-transition commodities.

Sulphur Springs Adds New Copper Supply

Woodlawn is already operating at steady-state production rates, providing Develop Global with an existing source of cash flow and concentrate supply.

Sulphur Springs represents the next major growth step. Develop Global has already completed significant construction work and underground development at the project.

The company expects Sulphur Springs to produce around 30,000 t/yr of copper by 2028. That would add meaningful new Australian copper supply as demand rises from grids, renewable energy, electric vehicles and data centres.

The project also produces zinc, giving Develop exposure to another important industrial metal used in galvanising and infrastructure.

Trafigura’s financing lowers one of the biggest barriers facing new mine developments: access to construction capital. The accompanying offtake agreements also provide a defined commercial route for future concentrate.

This combination can improve project bankability because lenders and developers gain greater visibility over future sales.

Pioneer Dome Adds Lithium to the Portfolio

Develop Global also plans to use the financing to advance Pioneer Dome, a spodumene project targeting around 70,000t of concentrate production at full rates.

The lithium project broadens Develop’s commodity exposure beyond base metals and gives Trafigura access to another battery material supply stream.

For Trafigura, the transaction follows a familiar strategy. The trader provides financing to producers while securing long-term access to physical commodities that can feed its global marketing network.

For Develop Global, the deal creates a bridge between operating cash flow at Woodlawn and future growth from Sulphur Springs and Pioneer Dome.

The transaction therefore strengthens a portfolio spanning copper, zinc, lead and lithium rather than relying on a single commodity cycle.

The Metalnomist Commentary

Trafigura is using capital as a tool to secure future physical supply, not simply as a financial investment. For Develop Global, the deal reduces financing risk while accelerating exposure to copper and lithium markets where new supply remains strategically valuable.

Tianhao Magnesium Alloy Plant Targets NEV and Aerospace Lightweighting Demand

Huizhou Tianhao New Material Technology

Tianhao magnesium alloy plant development has started in Huizhou, Guangdong province, as Chinese manufacturers expand capacity for lightweight materials used in new energy vehicles, electronics and aerospace.

Tianhao magnesium alloy plant is designed to produce 20mn units/yr of magnesium alloy profiles. The company has not disclosed a start-up timeline, but construction began on 4 June.

Tianhao magnesium alloy plant development reflects rising demand for lightweight structural materials across NEVs, consumer electronics, low-altitude aviation and aerospace. Magnesium's low density gives it an advantage where reducing component weight can improve energy efficiency and vehicle performance.

China already dominates global magnesium production and processing, giving domestic manufacturers strong access to metal feedstock and downstream fabrication capabilities.

Lightweighting Drives Magnesium Alloy Demand

Magnesium alloys are increasingly used where manufacturers need lower weight without abandoning metallic structural materials. This is especially relevant to electric vehicles, where reducing vehicle mass can improve driving range and offset battery weight.

Consumer electronics provide another important demand segment. Magnesium alloys can be used in lightweight housings and structural components that require stiffness and dimensional stability.

The low-altitude economy could become a larger growth market. Drones, electric vertical take-off aircraft and other lightweight aviation platforms need materials that can reduce mass while maintaining adequate structural performance.

Aerospace applications add further demand potential, although qualification requirements remain much stricter than in consumer or automotive markets.

China produced 428,400t of magnesium alloy in 2025, up 8% from the previous year. Stronger lightweighting demand and pressure to reduce carbon emissions supported the increase.

The Tianhao project therefore enters a market where both production and downstream applications are expanding.

China Strengthens Its Magnesium Processing Advantage

Global magnesium metal consumption reached around 1.2mn t in 2025. Magnesium alloy production represented the largest end-use segment at roughly 650,000t.

Other major applications included steel desulphurisation, aluminium alloying and metal reduction. However, magnesium alloy demand is expected to grow fastest as transportation and electronics markets seek lighter materials.

Global magnesium alloy consumption could reach 1.39mn t by 2028 if current growth expectations materialise. NEVs, consumer electronics and low-altitude aviation are expected to provide much of that increase.

China is well positioned to capture this growth because it controls a large share of global magnesium metal production and already has extensive alloying and fabrication capacity.

That advantage could deepen as manufacturers move further downstream into profiles, castings and finished components rather than selling primary magnesium alone.

For international buyers, this creates a familiar critical materials challenge. Strong Chinese integration can deliver low costs and scale, but it also increases geographic concentration across the magnesium supply chain.

The Metalnomist Commentary

Tianhao's project shows that magnesium is moving further into high-growth lightweighting applications. China's advantage lies not only in producing magnesium metal, but increasingly in converting it into higher-value components for EVs, electronics and aerospace.

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.

Xingtai VRFB Stack Facility Nears Start-Up as Vanadium Storage Demand Rises

Xingtai Meifan Energy Storage

Xingtai VRFB stack facility is nearing commercial start-up in Hebei province as China expands manufacturing capacity for long-duration energy storage. Xingtai Meifan Energy Storage has invested 1.25bn yuan in the 2GW stack production plant.

Xingtai VRFB stack facility development is strategically important because stack production remains one of the largest cost components in vanadium redox flow battery systems. Large-scale domestic manufacturing could further reduce costs and accelerate deployment.

Xingtai VRFB stack facility preparations are close to completion. Cutting lines for proton exchange membranes and carbon felt have entered trial operation, while installation of key equipment on the automated stack production line is in its final stage.

The plant could begin operations around the end of June, adding significant new capacity to China's already fast-growing VRFB manufacturing base.

Localised Stack Production Reduces VRFB Costs

VRFB system economics depend heavily on electrolyte and stack costs. Electrolyte accounts for around 50% of total system cost, stacks for about 30% and other components for the remaining 20%.

Historically, stack costs represented as much as 40% of total system expenditure. Greater localisation and scale in separators, bipolar plates, carbon felt and other core components have gradually reduced that share.

Xingtai Meifan's new facility reinforces this trend. Automated manufacturing and domestic sourcing can lower unit costs while improving consistency and production speed.

China has already developed a fully localised VRFB stack supply chain. Commercial deployment of 100kW-class stacks and the expansion of large energy storage projects are helping the sector move toward industrial-scale production.

This is important because VRFBs compete differently from lithium-ion batteries. They offer long cycle life, high safety and the ability to scale energy capacity separately from power capacity.

These characteristics make VRFBs particularly attractive for grid applications requiring long-duration storage rather than short-duration peak balancing.

Vanadium Demand Gains New Structural Support

Growth in VRFB deployment is creating a new source of vanadium demand outside traditional steelmaking.

China's VRFB sector is expected to consume around 40,000t of V2O5 equivalent in 2026 based on the current pipeline of planned and ongoing projects.

This demand could become increasingly important for vanadium producers. Steel remains the dominant end-use market, but energy storage offers a new structural growth channel.

Electrolyte demand is particularly relevant because VRFB systems use large quantities of dissolved vanadium. Larger storage durations require more electrolyte, meaning vanadium consumption rises with total energy capacity.

The technology's aqueous electrolyte also gives VRFBs an inherent safety advantage for stationary storage. This can be important for utilities, industrial sites and grid operators managing fire risk.

As stack costs decline, electrolyte pricing will become an even larger factor in total system economics. That could strengthen the connection between vanadium prices and the competitiveness of VRFB projects.

The Metalnomist Commentary

China's VRFB expansion is turning vanadium into an energy storage material as well as a steel alloy. If stack costs keep falling, electrolyte demand could become one of the most important new sources of structural vanadium consumption.

Texas LFP Plant Links Domestic Lithium Supply With Cathode Production

EnergyX

Texas LFP plant development is moving forward after Wildcat Discovery Technologies and EnergyX formed a joint venture to produce lithium iron phosphate cathode active material in Hooks. The project represents more than $230mn of investment and is designed for around 15,000 t/yr of CAM capacity.

Texas LFP plant plans are strategically important because the facility will sit next to EnergyX’s Lonestar lithium project in the Smackover formation. This creates a potential domestic route from lithium extraction and conversion to cathode material production.

Texas LFP plant supply will also benefit from a structured lithium pricing agreement. EnergyX will provide lithium carbonate to the joint venture at commercially favourable terms, including a market discount and price floor and ceiling intended to reduce exposure to lithium price volatility.

The project strengthens US efforts to localise more of the battery value chain, particularly for LFP chemistry used in electric vehicles and stationary energy storage.

Co-Location Reduces Battery Supply Chain Risk

The Hooks facility is designed to produce about 15,000 t/yr of LFP cathode active material, with potential for future expansion.

Its location beside EnergyX’s Lonestar lithium operation is the project’s main industrial advantage. Co-locating lithium supply and cathode production can reduce logistics complexity, shorten supply chains and improve feedstock security.

EnergyX plans to produce 48,500 t/yr of lithium hydroxide at Lonestar by 2030. The first phase is expected to reach 14,250 t/yr by 2028.

The project is targeting operating expenditure of about $3.85/kg, which could strengthen the economics of downstream battery material production if that cost structure is achieved at scale.

The joint venture will initially receive lithium carbonate under a pricing structure that limits exposure to extreme market movements. This gives the cathode operation greater cost visibility during periods of lithium volatility.

For battery materials projects, this kind of feedstock agreement can be as important as plant capacity. Cathode producers need reliable supply, predictable chemistry and manageable pricing to compete with established Asian producers.

LFP Growth Supports US Battery Localization

LFP chemistry is gaining market share because it offers lower cost, strong cycle life and improved thermal stability compared with nickel-rich cathode systems.

It also avoids nickel and cobalt, reducing exposure to two globally concentrated and price-sensitive battery metals. However, LFP still depends heavily on lithium supply and specialised cathode manufacturing capability.

The Wildcat-EnergyX project therefore addresses two major US supply-chain gaps at the same time: domestic lithium production and domestic cathode active material manufacturing.

Stationary energy storage is likely to be an important demand source. Large grid batteries increasingly favour LFP because of its durability, safety characteristics and lower material cost.

EV demand could provide another growth route, particularly as automakers expand lower-cost vehicle platforms using LFP cells.

The project also illustrates a wider shift in US battery strategy. Rather than building isolated mines or chemical plants, developers are increasingly trying to connect extraction, conversion and active material production within regional industrial clusters.

The Metalnomist Commentary

The Wildcat-EnergyX venture is strategically stronger because it links lithium supply directly with LFP cathode production. US battery localization will depend less on individual plants and more on integrated regional chains that control feedstock, processing and pricing risk.

Lygend Nickel Capacity Reaches 400,000 t/yr at Obi Island

Lygend

Lygend nickel capacity in Indonesia has increased to around 400,000 t/yr in nickel metal equivalent following the commissioning of all phase 2 rotary kiln electric furnace lines at its Obi Island complex.

Lygend nickel capacity now spans nickel pig iron, mixed hydroxide precipitate and nickel sulphate, giving the Chinese producer exposure to both stainless steel and battery supply chains. The latest expansion highlights Lygend's ability to complete large projects despite weaker margins and tighter Indonesian nickel policies.

Lygend nickel capacity growth comes from 12 new RKEF lines commissioned in May. The phase 2 facilities add 185,000 t/yr of nameplate nickel metal equivalent capacity for NPI production in North Maluku.

The expansion strengthens Obi Island's position as one of Indonesia's major integrated nickel production centres and adds more supply to an already heavily concentrated global nickel market.

Obi Island Expansion Deepens Lygend's Integrated Nickel Position

The phase 2 project significantly expands Lygend's pyrometallurgical capacity. NPI produced through RKEF technology remains a major feedstock for stainless steel production, particularly across Asia.

Lygend also produces MHP and nickel sulphate, extending its position beyond stainless steel into battery materials. MHP can be refined into nickel sulphate for lithium-ion battery cathodes, giving the company exposure to multiple downstream markets.

This integrated structure can provide greater flexibility during weak nickel cycles. Producers focused entirely on one product face greater exposure to changes in stainless steel or battery demand.

Obi Island also gives Lygend scale advantages. Concentrating mining, smelting and downstream processing in one industrial location can reduce logistics costs and improve feedstock integration.

The company's ability to complete phase 2 is notable because other Indonesian nickel projects have faced delays, financing problems and weak economics. Higher operating costs and lower nickel prices have made new capacity increasingly difficult to justify.

Indonesian Policy Raises the Bar for New Nickel Projects

Lygend's expansion comes as Indonesia increases government control over nickel production, pricing and exports. Reduced RKAB mining quotas are tightening access to ore and increasing competition for feedstock.

Adjustments to the HPM pricing formula have also raised raw material costs for processors. At the same time, higher royalty rates are putting additional pressure on smelter margins.

These changes are affecting project development. Several NPI and HPAL projects have been delayed, slowed or cancelled as companies reassess returns under weaker market conditions.

The contrast with Lygend is important. Large integrated producers with existing infrastructure, financing and downstream capacity are better positioned to absorb policy changes than smaller standalone operators.

Indonesia's nickel industry may therefore enter a consolidation phase. Future growth could become increasingly concentrated among large producers capable of controlling ore supply, processing costs and multiple product routes.

For the global nickel market, Lygend's new capacity adds further supply pressure. But Indonesia's tighter policy framework could limit how quickly other projects follow.

The Metalnomist Commentary

Lygend's Obi expansion shows that scale and integration are becoming decisive in Indonesia's nickel industry. As margins tighten and Jakarta strengthens control over ore and exports, smaller projects may struggle while established producers continue to consolidate supply.

Chile Lithium Carbonate Exports Lead Global Trade Despite Argentina’s Rapid Rise

Chile Lithium

Chile lithium carbonate exports remained the largest globally in 2025, although the country lost significant market share as Argentina rapidly expanded production. Chile shipped almost 225,750t of lithium carbonate worth $1.9bn, accounting for 62.2% of global exports.

Chile lithium carbonate exports had represented around 78% of global trade in 2024. The fall to 62.2% represents a 15.8 percentage-point decline in only one year and signals a major change in South America’s lithium supply structure.

Chile lithium carbonate exports still give the country a dominant position in battery raw materials, but Argentina is emerging as a much stronger competitor. Argentina exported 102,842t, equivalent to roughly 28-30% of global lithium carbonate flows.

Chile also maintained its position as the world’s leading copper exporter. Chilean producers shipped 5.7mn t of copper in 2025, generating $53.6bn in export revenue and accounting for 16.2% of global exports.

Argentina Changes the Balance of South American Lithium Supply

Argentina’s rapid increase in lithium carbonate exports is reducing Chile’s historical dominance of the market. The shift reflects new production capacity entering the Argentine lithium sector and creating a second major South American export platform.

This competition has strategic implications for battery manufacturers. Greater supply diversification between Chile and Argentina can reduce dependence on a single producing country and provide buyers with more procurement options.

For Chile, the challenge is maintaining competitiveness while expanding production and moving toward higher-value lithium processing. Resource quality alone will not guarantee continued market dominance as neighbouring projects add capacity.

The change also matters for pricing. A broader supply base can increase competition between producers, especially during periods when lithium markets are already well supplied.

At the same time, Chile remains a major strategic supplier because of its established operations, infrastructure and long experience in lithium carbonate production.

The market is therefore moving from overwhelming Chilean dominance toward a more balanced South American structure, with Argentina becoming increasingly important to global battery supply chains.

Copper Leadership Gives Chile a Second Strategic Advantage

Chile’s copper position remains even more deeply established. The country has held the leading global export position for decades and shipped 5.7mn t in 2025.

State-owned Codelco remains central to the sector, alongside major international miners operating across the country’s large porphyry copper deposits.

Copper export revenue of $53.6bn demonstrates the metal’s importance to Chile’s economy. It also gives the country exposure to structural demand from power grids, renewable energy, electric vehicles, data centres and industrial electrification.

The combination of copper and lithium gives Chile an unusually strong position in the energy transition supply chain. Few countries are leading exporters of both a major electrical metal and a core battery material.

However, the two markets face different competitive dynamics. Chile’s copper leadership remains firmly established, while lithium faces faster capacity growth from Argentina and other emerging producers.

Chile’s long-term industrial opportunity therefore lies not only in maintaining export volumes, but in capturing more value through processing, technology and downstream manufacturing connected to both metals.

The Metalnomist Commentary

Chile remains a critical supplier of both copper and lithium, but its lithium dominance is becoming less absolute. Argentina’s rise shows that future leadership in battery materials will depend increasingly on capacity growth, processing economics and speed of project development.

Jinchuan Copper Output Jumps as DRC Export Curbs Hold Back Sales

Jinchuan Copper

Jinchuan copper output rose sharply in the first quarter as production ramped up at the Musonoi mine in the Democratic Republic of Congo. However, export restrictions prevented the company from converting higher mine production into equivalent sales growth.

Jinchuan copper output increased by 29.5% year on year to 18,021t. Copper sales moved in the opposite direction, falling by 2.2% to 11,689t after the DRC imposed an export ban during January-February.

Jinchuan copper output growth therefore reflects stronger mine performance rather than improved market access. The widening gap between production and sales shows how government export controls are becoming an increasingly important factor in Central African metals supply.

The effect was even more pronounced in cobalt. Jinchuan produced 2,139t during the quarter, compared with only 71t a year earlier, but sold just 7t as export quotas constrained shipments.

Musonoi Ramp-Up Creates Copper and Cobalt Stockbuild

Musonoi was the main driver of Jinchuan’s production growth, offsetting power-related difficulties at the Ruashi operation. The results show that the company can add significant copper and cobalt volumes when mining and processing assets operate normally.

But physical production is no longer the only constraint. DRC policy now determines how quickly those tonnes can reach international customers.

The country previously halted exports and now limits shipments to roughly half of production. This creates a structural gap between mine output and material available to international markets.

For cobalt, the impact is particularly visible. A production increase to more than 2,100t combined with sales of only 7t suggests substantial inventory accumulation or delayed shipments rather than weak underlying demand.

Copper is facing similar pressure, although the imbalance is less extreme. Jinchuan produced more than 18,000t but sold less than 12,000t during the quarter.

If export restrictions remain in place while Musonoi continues ramping up, inventories could continue to rise inside the DRC. The timing of future quota releases would then become increasingly important for international copper and cobalt availability.

DRC Policy Becomes the Key Variable for Cobalt Supply

The DRC occupies a dominant position in global cobalt supply, making export policy highly relevant to battery, aerospace and superalloy markets.

Chinese companies control around 63% of DRC cobalt supply and have expanded refining capacity to absorb material from the country. That gives Chinese firms a strong downstream position, but it does not eliminate exposure to Congolese export policy.

Jinchuan’s results illustrate this clearly. Investment in mining and processing can increase output, but actual sales still depend on export permits and quota allocations.

This changes the risk profile of mining investment. Companies must now manage not only ore grades, power availability, processing capacity and commodity prices, but also government control over physical flows.

For cobalt buyers, this can tighten internationally available units even when mine production itself is rising. That distinction is critical when assessing market balance.

The same principle applies to copper. New African production cannot automatically be treated as immediate global supply if regulatory controls delay shipments.

Jinchuan’s expansion strategy therefore remains tied to the DRC’s policy framework. Its mines can produce more metal, but future revenue growth increasingly depends on how much material authorities permit to leave the country.

The Metalnomist Commentary

Jinchuan’s results show why mine production alone no longer tells the full cobalt supply story. In the DRC, export permissions are becoming as important as mining capacity in determining how much copper and cobalt actually reaches the global market.