US Brazil Rare Earth Partnership Targets Faster Critical Minerals Development

Brazil rare earths

US Brazil rare earth partnership discussions are gaining momentum as Washington looks to secure more non-China supply of rare earths and other critical minerals. Brazil is emerging as a strategic partner because of its large resource base and relatively favorable geology.

US Brazil rare earth partnership interest is particularly focused on ionic clay deposits, which can offer simpler processing routes than harder rock rare earth deposits. Brazil and Malaysia have both attracted attention because of their potential in this type of resource.

US Brazil rare earth partnership activity is already visible through financing and acquisitions. Recent investment in Serra Verde and Aclara Resources shows that capital is moving toward projects capable of supplying heavy rare earths outside China.

Brazil holds the world's second-largest rare earth reserves, but currently produces less than 1% of global output. The gap between geological potential and commercial production creates a significant opportunity if projects can move quickly.

Ionic Clay Resources Strengthen Brazil's Strategic Position

Brazil's rare earth advantage comes partly from the composition of its mineral resources. Ionic clay deposits can contain valuable light and heavy rare earth elements while offering potentially simpler processing compared with some conventional deposits.

That matters because heavy rare earths such as dysprosium and terbium remain among the most strategically constrained materials in the global magnet supply chain.

These elements are used in high-performance permanent magnets for electric vehicles, wind turbines, defence systems, aerospace and advanced industrial motors.

Serra Verde has already become an important example of Brazil's potential. The heavy rare earth producer has attracted major investment, while Aclara is also advancing projects with international financial support.

The challenge is speed. Large reserves do not automatically translate into supply if permitting, infrastructure, processing and financing take too long.

Brazil therefore has an opportunity to negotiate from a stronger position as the US, Europe and Asian economies compete for diversified rare earth supply.

Geopolitics Raises the Value of Brazilian Critical Minerals

Brazil's neutral relationships with a wide range of countries give it unusual flexibility in critical minerals diplomacy.

As geopolitical tensions increase elsewhere, buyers place greater value on jurisdictions that can supply strategic materials without the same level of political or trade risk.

That makes Brazil attractive not only to the US but also to other countries seeking long-term access to rare earths, lithium, nickel, graphite and other critical minerals.

However, Brazil still needs to convert resource potential into processing capacity. Mining alone will not capture the full value of rare earth supply chains.

Separation, refining, metallization and magnet production remain the higher-value stages where global capacity is most concentrated.

If Brazil can move downstream while maintaining open commercial relationships, it could become one of the most important alternative critical minerals platforms outside China.

The Metalnomist Commentary

Brazil's opportunity is larger than simply exporting rare earth concentrate. The real strategic prize is using geopolitical demand to build domestic separation and processing capacity before global capital moves elsewhere.

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.

Sigma Lithium Appeal Removes Nighttime Restrictions at Grota do Cirilo

Sigma Lithium

Sigma Lithium appeal has overturned a lower court ruling that had fined the company and restricted nighttime operations at its Grota do Cirilo spodumene mine in Minas Gerais. The decision reduces immediate legal and operational pressure on Brazil's largest spodumene producer.

Sigma Lithium appeal is important for the lithium market because restrictions on nighttime activity could have affected mine utilisation, processing schedules and future concentrate output. The original ruling required the company to halt noisy activities between 10pm and 6am.

Sigma Lithium appeal also removes potential legal collateral of $10mn associated with the lower court decision. The case stemmed from complaints by residents near Grota do Cirilo over noise, dust, blasting vibrations and wider community impacts.

The legal relief comes as Sigma works to restore stable production after an operational shutdown that affected first-quarter output.

Environmental Dispute Remains Important Despite Legal Relief

The original class action alleged that operations at Grota do Cirilo caused dust and noise above permitted levels, persistent vibration from blasting and adverse effects on nearby communities.

Sigma challenged those claims using environmental monitoring data from four surrounding communities. The company reported dust measurements of around 36-37 micrograms/m³, compared with Brazil's threshold of 240 micrograms/m³.

It also released vibration data showing readings below legal limits across multiple frequencies.

Sigma said 95 of 96 acoustic measurements taken during daytime and nighttime periods complied with requirements. One nighttime measurement exceeded the applicable limit.

The appeal decision removes the immediate restriction, but community relations remain strategically important. Mining companies increasingly need to demonstrate both legal compliance and acceptable local environmental performance to maintain operating stability.

For lithium projects, social licence can become as important as ore quality or processing capacity, particularly when mines operate close to local communities.

Grota do Cirilo Production Recovery Remains the Main Market Issue

Sigma temporarily shut Grota do Cirilo in September to change feedstock providers, adjust pit geometry and upgrade equipment.

The plant restarted on 31 January but only returned to what the company described as industrial production cadence on 20 March, near the end of the first quarter.

Sigma subsequently reported no first-quarter production, although it sold 23,000t of lithium concentrate equivalent during the period.

This makes operational recovery more important to the lithium market than the court decision alone. The appeal gives Sigma greater flexibility, but sustained mine output and reliable concentrate shipments will determine the project's contribution to global supply.

Brazil is becoming an increasingly important hard-rock lithium jurisdiction outside Australia and Africa. Stable output from Grota do Cirilo would strengthen that diversification and increase South America's role in global spodumene supply.

The Metalnomist Commentary

The appeal removes one immediate operating constraint, but Sigma's larger challenge is restoring consistent production at Grota do Cirilo. For lithium buyers, reliable tonnes and community stability will matter more than the legal victory itself.

Sigma Lithium Court Appeal Removes Operating Restriction at Grota do Cirilo

Sigma Lithium

Sigma Lithium court appeal has removed a lower court ruling that had fined the company and restricted nighttime operations at its Grota do Cirilo mine in Minas Gerais. The decision reduces immediate legal and operational pressure on Brazil's largest spodumene producer.

Sigma Lithium court appeal is important for the lithium market because Grota do Cirilo remains one of Brazil's most significant hard-rock lithium assets. Restrictions on nighttime operations could have affected mine utilisation, processing schedules and future concentrate output.

The original case was brought by residents in communities near the mine, who alleged excessive noise, dust, blasting vibrations and wider community impacts. The lower court had ordered Sigma to halt noisy activities between 10pm and 6am.

The overturned ruling also carried potential legal collateral of $10mn, making the appeal decision financially significant for the company.

Legal Relief Improves Operational Flexibility

Sigma challenged the allegations by releasing environmental monitoring data from communities surrounding Grota do Cirilo.

The company reported dust measurements of around 36-37 micrograms/m³, significantly below Brazil's permitted threshold of 240 micrograms/m³. It also said vibration measurements remained below legal limits.

Sigma reported 96 acoustic tests conducted during daytime and nighttime periods, with 95 measurements compliant and one nighttime reading above permitted levels.

The appeal ruling removes the immediate nighttime operating restriction, giving Sigma greater flexibility to manage mining and processing schedules.

However, community relations remain important. Large mining projects increasingly face pressure to demonstrate not only regulatory compliance but also acceptable impacts on surrounding communities.

For lithium producers, maintaining operational continuity depends on environmental performance, local acceptance and legal stability as much as resource quality.

Grota do Cirilo Output Recovery Remains the Key Market Issue

The legal decision comes as Sigma works to restore production following an operational interruption.

Grota do Cirilo temporarily shut in September as the company changed feedstock providers, adjusted pit geometry and upgraded equipment. Operations resumed on 31 January.

Sigma said the plant returned to an industrial production cadence on 20 March, only 11 days before the end of the first quarter.

The company subsequently reported no first-quarter production, although it sold 23,000t of lithium concentrate equivalent during the period.

That makes production recovery the more important issue for the lithium market. Legal relief improves operating flexibility, but sustained output and reliable concentrate shipments will determine Sigma's contribution to global supply.

Brazil is emerging as an increasingly important source of spodumene outside Australia and Africa. Stable production at Grota do Cirilo would strengthen that diversification.

The Metalnomist Commentary

The appeal removes one immediate obstacle, but Sigma's bigger challenge is restoring consistent mine and plant performance. For the lithium market, reliable tonnes from Grota do Cirilo matter more than courtroom relief alone.

International Graphite Wogen Offtake Builds Asia-Pacific Supply Route

Graphite

International Graphite Wogen offtake plans could create a new Australia-to-Asia graphite supply route as International Graphite prepares to commission its Collie processing facility in Western Australia. The non-binding agreement combines concentrate supply with downstream sales of micronised spherical graphite.

International Graphite Wogen offtake terms allow Wogen to supply up to 10,000 t/yr of graphite flake concentrate to Collie. In return, International Graphite would supply at least 3,000 t/yr of micronised spherical graphite to Wogen’s Pacific arm for exclusive marketing across Asia-Pacific.

International Graphite Wogen offtake is strategically relevant because Japan and South Korea are major battery and advanced materials markets seeking more diversified graphite sources outside China. Commercial terms will be negotiated on a spot basis, while Wogen may provide credit lines to support transactions.

The companies aim to convert the arrangement into a binding agreement before the 4,000 t/yr Collie facility begins commercial production in mid-2027.

Collie Creates Midstream Graphite Capacity Outside China

The Collie plant gives International Graphite a route into higher-value graphite processing rather than relying only on upstream mining. The facility will produce micronised spherical graphite from imported flake concentrate during its initial operating phase.

This matters because graphite value chains depend heavily on processing. Natural graphite must undergo sizing, shaping, purification and coating before it can qualify as active anode material for lithium-ion batteries.

The material produced at Collie will still require additional processing before use in battery anodes. That means the project sits in the midstream rather than representing a fully integrated battery-anode supply chain.

However, the Wogen agreement creates a commercial bridge into Japan and South Korea. Both markets have established battery, automotive and electronics industries that require secure sources of processed graphite.

Wogen’s ability to supply up to 10,000 t/yr of concentrate also gives International Graphite feedstock flexibility while its own mining plans remain on hold.

The Collie commissioning schedule has moved to mid-2027 from an earlier January 2027 target. Production is expected to ramp over the following 18 months.

Springdale Delay Highlights Processing-First Strategy

International Graphite ultimately plans to source flake graphite from its Springdale project in Western Australia. But the company has paused exploration and drilling while concentrating capital and management resources on Collie and its Italian midstream joint venture with Alkeemia.

This sequencing reflects a pragmatic strategy. Building processing capability first can establish customers, product qualification and market access before the company commits larger capital to mine development.

Springdale received A$4.7mn in Australian federal government support in 2023. The resource could eventually provide domestic feedstock to Collie and create a more vertically integrated Australian graphite chain.

For now, the project will rely on external concentrate. That reduces near-term upstream development risk but increases dependence on third-party feedstock availability and pricing.

The Wogen arrangement helps manage that exposure while providing an outlet for processed material. If converted into a binding contract, it would cover a substantial share of Collie’s planned production capacity.

The broader opportunity is ex-China graphite diversification. China remains dominant in spherical graphite and battery-anode processing, making new midstream capacity in Australia strategically important even before full anode qualification is achieved.

The Metalnomist Commentary

International Graphite is prioritising the hardest commercial step first: building processing capacity and customer routes before expanding its mine. If Collie secures reliable feedstock and qualifies into Asian markets, Springdale can later become the upstream anchor of a more integrated ex-China graphite chain.

Mt Marion Lithium Expansion Advances as MinRes and Ganfeng Lift Spodumene Supply

Mineral Resources

Mt Marion lithium expansion is moving ahead after Mineral Resources and Jiangxi Ganfeng Lithium reached a final investment decision on a A$490mn upgrade at the Western Australian mine. The project will raise 6% spodumene concentrate output from 500,000 t/yr to 600,000 t/yr.

Mt Marion lithium expansion reflects renewed confidence in spodumene markets after a period of stronger pricing, Chinese demand and supply disruption from Zimbabwean export controls. The decision also reinforces Australia’s role as a core lithium feedstock supplier to global battery material chains.

Mt Marion lithium expansion includes A$220mn for underground mine development, A$240mn for a flotation plant and A$30mn for non-processing infrastructure. Construction is scheduled to begin in July-September.

The partners expect to commission the mine within 12 months of construction starting, with production ramp-up over the following six months. That timeline makes Mt Marion an important near-term growth project in the Australian hard-rock lithium sector.

Underground Mining Extends Mine Life and Feed Flexibility

The underground mine will supplement ore from the existing open pit and contribute up to 40% of processing feed. This will extend Mt Marion’s remaining mine life by six years beyond the previous estimate of 10 years.

That is strategically important because mine life extension improves supply visibility for customers and investors. Battery chemical producers need stable spodumene feedstock to support long-term lithium hydroxide and lithium carbonate production.

The underground development also gives MinRes and Ganfeng more operational flexibility. Combining open-pit and underground ore can support feed blending, grade control and continuity as the mine matures.

The project will cause minimal disruption to existing operations, according to the company. That matters because the mine is already a major producing asset and any downtime could affect near-term shipments.

Mt Marion is also backed by a strong downstream partner. Ganfeng is one of China’s leading lithium companies, giving the project a direct link to one of the world’s largest battery materials markets.

Flotation Plant Targets Higher-Grade Product Mix

The new flotation plant will remove SC3.5 product from MinRes’ mix and deliver a minimum SC5 grade product. This is a key upgrade because higher-grade concentrate can improve processing efficiency for downstream converters.

SC6 remains the benchmark product for hard-rock lithium supply. Increasing SC6 output to 600,000 t/yr gives Mt Marion stronger exposure to higher-value concentrate markets.

The investment economics are highly sensitive to price. At an assumed SC6 price of $2,700/t, MinRes expects the expansion payback period to be less than one year.

Spodumene prices have risen in recent months, supported by Zimbabwe’s lithium concentrate export controls and strong Chinese demand. The latest Australian SC6 assessment was $2,661/t on 19 May, down from $2,811/t a week earlier but still elevated enough to support renewed investment.

MinRes also cited higher lithium prices as a reason for restarting operations at its Bald Hill mine in Western Australia. Together, these moves suggest producers are again positioning for stronger lithium feedstock demand.

The broader lithium market remains volatile, but the Mt Marion decision shows that high-quality Australian assets can still attract capital when pricing, partners and mine-life extension align.

The Metalnomist Commentary

Mt Marion’s expansion shows that lithium investment is returning first to established, scalable assets with strong downstream links. The key lesson is that the next lithium cycle will reward producers that can improve grade, extend mine life and secure reliable routes into China’s battery supply chain.

Sinomine Lithium and Copper Expansion Targets Zimbabwe and Zambia Growth

Sinomine Resources

Sinomine lithium and copper expansion is accelerating as the Chinese miner prepares to raise up to 5.2bn yuan to fund new battery metals, copper and specialty metals projects. The targeted share placement will support projects in Zimbabwe, Zambia and Jiangxi province.

Sinomine lithium and copper expansion reflects the company’s move from a lithium-focused growth story into a broader multi-metal platform. The company entered lithium through the Bikita mine in Zimbabwe in 2021 and added copper exposure through its 65% stake in Zambia’s Kitumba project in 2024.

Sinomine lithium and copper expansion also shows how Chinese mining companies are securing upstream resources while building processing capacity closer to mine sites. That strategy is becoming more important as resource-rich countries push for more domestic value addition.

The fundraising plan will support a 100,000 t/yr lithium sulphate plant in Zimbabwe, the Kitumba copper project in Zambia, and a 2,000 t/yr caesium and rubidium products project in Jiangxi.

Kitumba Copper Project Strengthens Sinomine’s Diversification

The Kitumba copper project is central to Sinomine’s move into copper. Development is advancing through equipment procurement, civil works and installation, with trial concentrator production targeted by the third quarter of 2026.

Full concentrator commissioning is expected in the fourth quarter of 2026. Smelter trial production is also targeted for the fourth quarter, with full operations expected from the first quarter of 2027.

Kitumba’s mining and processing design capacity remains 3.5mn t/yr of ore. However, smelting design capacity has been revised down to 35,000 t/yr of copper cathode from the previous 60,000 t/yr.

At full capacity, the project is expected to average 33,000 t/yr of copper cathode and 55,000 t/yr of copper concentrate. This gives Sinomine exposure to both refined copper and concentrate flows.

The project matters because copper demand is increasingly tied to grids, electric vehicles, data centres, renewable energy and industrial electrification. Chinese miners are therefore looking beyond lithium to secure copper assets that can support long-term energy transition demand.

Zambia also gives Sinomine a strategic position in the African copper belt. The region remains one of the most important sources of copper growth, but project execution will depend on infrastructure, power, permitting and smelting economics.

Zimbabwe Lithium Sulphate Plan Moves Processing Downstream

Sinomine’s Bikita lithium operations in Zimbabwe have already ramped up after commissioning 2mn t/yr and 1.2mn t/yr expansion projects in July 2023. The projects reached designed capacity and product specifications by November 2023.

Lithium concentrate shipments to China have continued, but Zimbabwe’s policy environment is pushing Chinese lithium firms to process more material locally. The country imposed a ban on concentrate exports in February, accelerating interest in lithium sulphate production.

Sinomine’s planned 100,000 t/yr lithium sulphate plant fits that shift. Details on construction timing and commissioning have not yet been disclosed, but the strategic direction is clear.

Lithium sulphate gives producers a way to move further downstream before exporting material to China or other battery chemical markets. It also helps satisfy local value-addition requirements while preserving access to Zimbabwe’s lithium resource base.

Other Chinese battery materials companies are moving in the same direction. Huayou Cobalt shipped its first lithium sulphate cargo from Zimbabwe to China on 25 April, showing that the processing route is already becoming commercially active.

Sinomine’s specialty metals platform adds another layer. The company is a leading producer of caesium and rubidium salts, with integrated mining, processing and advanced materials capabilities.

The planned 2,000 t/yr caesium and rubidium products project in Jiangxi supports higher-value specialty materials growth. These metals serve specialised industrial, electronic and advanced technology applications.

Sinomine’s latest fundraising plan therefore points to a more integrated strategy. The company is securing lithium, adding copper, and expanding specialty metals processing while responding to changing export rules and downstream demand.

The Metalnomist Commentary

Sinomine’s strategy shows how Chinese miners are adapting to a world where resource ownership alone is no longer enough. The next advantage will come from controlling mine supply, local processing and downstream product routes across lithium, copper and specialty metals.

Finniss Lithium Operation Restart Signals Australian Spodumene Supply Return

Core Lithium

Finniss Lithium Operation is returning to production after Core Lithium restarted mining at the Grants open pit in Australia’s Northern Territory. The move marks the reopening of an asset that had been in care and maintenance since 2024 because of weak lithium prices.

Finniss Lithium Operation will process its first ore in the September quarter, with the first spodumene concentrate shipment expected in the December quarter. Additional shipments are planned for 2027.

Finniss Lithium Operation restart reflects the sharp recovery in spodumene prices after supply constraints emerged in late 2025. Core Lithium approved the restart in March as stronger pricing improved the economics of bringing idled capacity back online.

The Grants pit will provide access to around 800,000t of ore and deliver about 100,000t of spodumene concentrate on a 5% lithium oxide basis. Mining has started in line with Core Lithium’s final investment decision schedule and cost expectations.

Grants Pit Brings Near-Term Spodumene Back to Market

The Grants open pit gives Core Lithium a near-term route back into the seaborne spodumene market. First ore processing in the September quarter and first shipment in the December quarter create a clear restart timeline.

This matters because Australian lithium producers are beginning to respond to stronger market conditions. Several operations that were halted during the downturn are now restarting as prices recover.

Spodumene prices have rebounded sharply from the lows reached in December 2025. The recovery has made previously idled hard-rock assets more attractive, especially those with existing infrastructure and established development plans.

For buyers, the return of Finniss adds incremental Australian supply at a time when lithium converters are reassessing feedstock security. But the restart also adds new supply into a market still vulnerable to oversupply if too many projects return at once.

Core Lithium’s timing is therefore important. The company is moving before the next wave of supply fully arrives, but it must still prove stable mining, processing and shipment performance after a long shutdown.

BP33 Sets Up Longer-Term Finniss Expansion

Core Lithium is also advancing infrastructure work at the BP33 underground mine. The company awarded a A$274mn underground mining services contract to Develop Global for a three-to-five-year period.

BP33 is expected to be developed by mid-2027. It should help lift ore production at Finniss to 1.2mn t/yr by mid-2028.

Core Lithium’s final investment decision summary outlines a longer-term plan to produce spodumene concentrate over a 20-year mine life. Expected unit costs are around A$762/t, giving the operation leverage to higher spodumene pricing if execution stays on track.

The restart and BP33 development show how lithium producers are rebuilding confidence after the 2024-25 market downturn. The key difference now is that investors and customers will focus more closely on cost discipline, grade, logistics and customer commitments.

For the broader battery supply chain, Finniss adds another signal that Australian spodumene remains central to global lithium raw material supply. The market recovery is bringing supply back, but long-term balance will depend on whether battery demand can absorb returning and new production.

The Metalnomist Commentary

Core Lithium’s restart shows that the lithium cycle has turned enough to bring idled Australian mines back into action. The risk is that recovering prices invite too much supply too quickly, making cost discipline and offtake quality more important than restart headlines.

Bald Hill Lithium Mine Restart Signals Stronger Spodumene Recovery

Bald Hill Lithium

Bald Hill lithium mine operations are restarting after Mineral Resources responded to a sustained recovery in lithium prices. The Western Australian mine had been on care and maintenance since November 2024.

Bald Hill lithium mine ramp-up will begin in late May, with crushing and mining operations scheduled to start in June. First spodumene concentrate production is expected in July.

Bald Hill lithium mine shipments are planned from the Port of Esperance in the third quarter of 2026. Full capacity is expected in the fourth quarter.

The restart shows that stronger spodumene prices are beginning to bring suspended Australian lithium capacity back into the market. It also confirms that producers are becoming more confident after the severe lithium downturn that forced project closures and delays.

Spodumene Prices Bring Idled Capacity Back

Bald Hill has production capacity of about 165,000 dry metric tonnes per year of 5.1% spodumene concentrate. On a normalized 6% spodumene concentrate basis, capacity is around 140,000 dmt/yr.

The restart is modest compared with Australia’s largest lithium operations, but it matters for market sentiment. Idled mines returning to production show that the price recovery is no longer only a paper-market signal.

Mineral Resources also operates the Wodgina and Marion lithium mines. The company has lifted production guidance for both assets for the fiscal year ending June 2026.

Wodgina guidance increased to 280,000 dmt of SC6, while Marion guidance rose to 220,000 dmt of SC6. Together with Bald Hill, these assets strengthen MinRes’ position as a major Australian spodumene producer.

The restart also adds more supply to the seaborne lithium concentrate market. That could help converters secure feedstock, but it also raises the risk that returning capacity eventually caps price upside if demand growth slows.

Posco Stake Reinforces Battery Supply Chain Link

South Korean steelmaker Posco acquired a 30% stake in MinRes in November 2025 for $765mn. That investment gives the restart a stronger downstream battery supply-chain connection.

Posco has been expanding across battery materials, and access to Australian spodumene can support long-term lithium chemical production. For MinRes, the relationship provides strategic capital and potential customer alignment.

Western Australia remains one of the world’s most important lithium supply regions. Its hard-rock mines feed converters in China, South Korea and other battery manufacturing hubs.

The Bald Hill restart therefore fits a wider supply-chain pattern. Lithium producers are trying to rebuild volumes as prices recover, while downstream players seek more secure feedstock before battery demand accelerates again.

The key question is whether the recovery remains strong enough to absorb returning supply. If prices hold, more idled lithium capacity could follow Bald Hill back into production.

The Metalnomist Commentary

Bald Hill’s restart shows that lithium’s recovery is becoming operational, not just financial. The market now needs to watch whether returning Australian supply supports battery security or creates the next round of oversupply pressure.

Hancock Lithium Mine Plan Advances as Spodumene Prices Recover

Hancock Lithium Mine

Hancock lithium mine plans in Western Australia are moving forward as stronger lithium concentrate prices revive confidence in large-scale spodumene development. Hancock Prospecting plans to build the A$1bn Andover mine, targeting production of up to 1.1mn t/yr of lithium concentrate.

Hancock lithium mine construction is scheduled to start in November 2028, with a two-year construction period. The project is planned for a 30-year operating life and would process 6mn t/yr of ore.

Hancock lithium mine development reflects a shift in lithium sentiment after the deep price collapse that forced project delays and suspensions across the sector. Spodumene prices have rebounded as Chinese battery demand improves and supply expectations tighten.

The Andover project is strategically important because Australia remains one of the world’s key hard-rock lithium supply bases. New capacity from Western Australia could support converters, battery producers and electric vehicle supply chains seeking long-term spodumene feedstock.

Andover Adds Scale to Western Australia’s Spodumene Pipeline

The Andover mine would become a major new lithium concentrate source if developed as planned. Annual output of up to 1.1mn t would give the project meaningful weight in the seaborne spodumene market.

The project sits within a broader ownership structure shaped by recent consolidation. Hancock Prospecting and Chilean lithium producer SQM partnered to acquire Azure Minerals in a A$1.7bn deal completed in May 2024 through their jointly owned company, SH Mining.

Andover is 60% owned by Azure, while Croydon Gold, a subsidiary of the Creasy Group, holds the remaining 40%. The involvement of Hancock and SQM gives the project both Australian mining strength and global lithium-market experience.

SQM’s role is especially relevant. The Chilean producer brings downstream lithium market knowledge, while Hancock adds financial capacity and Australian project execution capability.

The planned 30-year mine life also matters. Battery supply chains need long-duration feedstock sources, not only short-cycle spot supply. A project of this scale could support long-term offtake and conversion strategies.

Price Recovery Revives Lithium Project Economics

The Andover plan comes after a sharp recovery in spodumene concentrate prices. Prices rose in April as tighter supply expectations followed Zimbabwe’s introduction of export quotas for lithium concentrate.

Spodumene prices had previously collapsed to $900-1,100/t cif China in January 2024, down 83% after supply growth outpaced demand. That downturn forced many lithium developers to slow, delay or reassess projects.

Prices later began recovering in late 2025 as demand from China’s lithium-ion battery sector improved market sentiment. Stronger pricing has now made large hard-rock projects more attractive again.

However, lithium remains a volatile market. New supply from Australia, Africa, South America and China can quickly change balances if demand growth slows or inventories rebuild.

For Hancock, timing will be critical. Construction is not expected to start until late 2028, meaning the project will enter the market after the current price recovery has already been tested by several more years of battery demand and supply growth.

The strategic value remains clear. If lithium demand continues to rise from electric vehicles and energy storage, Andover could become an important feedstock source for global converters. If supply again expands too quickly, project economics may face renewed pressure.

The Metalnomist Commentary

Hancock’s Andover plan shows that lithium investment confidence is returning, but only for projects with scale, strong sponsors and long-term strategic value. The market has recovered from its deepest downturn, but future winners will still need cost discipline and secure downstream demand.

AMG Lithium Hydroxide Sales Lift First-Quarter Profit as German Refinery Starts Output

AMG Lithium

AMG Lithium hydroxide sales drove a sharp first-quarter turnaround as AMG Lithium began selling unqualified battery-grade lithium hydroxide from its new German refinery. The subsidiary of AMG Critical Minerals sold $21mn of lithium hydroxide in January-March, helping revenue rise by 89%.

AMG Lithium hydroxide sales marked the first commercial contribution from the German refinery. The plant produced its first commercial batches during the quarter, giving AMG a new downstream revenue stream beyond spodumene concentrate.

AMG Lithium hydroxide sales remain at an early stage because the material has not yet completed customer qualification and approval processes for long-term supply contracts. The “unqualified” label does not mean the product lacks battery-grade characteristics. It means customers have not yet fully approved it for routine contracted supply.

The result shows how lithium producers are trying to move further down the battery materials chain. Spodumene mining remains important, but lithium hydroxide refining offers higher-value exposure if qualification, consistency and customer approvals are achieved.

German Refinery Adds Downstream Lithium Exposure

AMG Lithium’s first-quarter performance shows the strategic value of adding refining capacity in Europe. The German refinery allows the company to convert lithium feedstock into lithium hydroxide closer to European battery and cathode customers.

Battery-grade lithium hydroxide is a key input for nickel-rich cathode chemistries used in electric vehicles and high-performance batteries. European supply remains strategically important as the region seeks to reduce dependence on imported battery chemicals.

The refinery’s first commercial batches therefore carry industrial significance beyond the initial sales value. AMG is building a position in the midstream lithium chain, where qualification, product quality and customer trust determine long-term value.

However, qualification remains the key hurdle. Battery customers require strict consistency, impurity control and process reliability before committing to long-term supply agreements.

The company’s current sales are therefore an early commercial step, not a fully mature refinery ramp-up. The next stage will depend on customer approvals, stable production volumes and the ability to secure higher-value contracts.

Brazil Spodumene Recovery Supports Integrated Model

AMG’s Brazil lithium mine also improved during the quarter. Spodumene production rose by 11% on the year to 13,454t, recovering after ore grade and equipment issues affected output last year.

The mine is back operating in line with AMG’s 2026 target guidance of 130,000 t/yr. Current capacity is around 100,000-110,000 t/yr, according to the company.

Spodumene pricing also strengthened. AMG’s average realised cif China spodumene sales price rose to $916/t in the first quarter, up 43% from $640/t a year earlier.

Higher lithium prices supported the lithium segment’s profitability. AMG Lithium swung to a $15.4mn profit from a $13.9mn loss a year earlier, helped partly by the upward valuation of existing inventory.

But the group’s overall profit still fell by 25% because AMG excludes inventory mark-ups from its final figures. This shows that headline lithium segment improvement partly reflects accounting treatment rather than only operating cash generation.

Shipping delays also capped first-quarter performance. More than 12,000t of spodumene shipments were delayed into April-June, pushing related revenue into the second quarter.

For AMG, the strategic direction is clear. The company is combining Brazilian spodumene production with European lithium hydroxide refining to capture more value across the lithium chain. The model will become stronger if refinery qualification progresses and delayed shipments translate into second-quarter revenue.

The Metalnomist Commentary

AMG Lithium’s first-quarter profit shows how quickly downstream refining can change the earnings profile of a lithium producer. The real test is not the first $21mn of hydroxide sales, but whether AMG can qualify the product, scale output and turn European refining into a durable margin advantage.

Liontown Lithium Production Holds Flat as Kathleen Valley Shifts Underground

Liontown

Liontown lithium production was flat in January-March as the Kathleen Valley operation completed its first full quarter as a fully underground mine. The Australian miner produced 96,000t of spodumene concentrate during the quarter, unchanged from a year earlier but down 9% from the previous quarter.

Liontown lithium production is now being reshaped by the transition away from previously mined open-pit ore toward underground feed. The shift is important because underground ore is expected to support more stable grades and recoveries as Kathleen Valley moves deeper into its long-term operating model.

Liontown lithium production also faced shipment disruption from tropical cyclone Narelle, which temporarily affected port operations at Geraldton in Western Australia. Two shipments were delayed, including one that was deferred into early April.

The quarter shows a lithium producer moving through a technical transition rather than a demand-led slowdown. Kathleen Valley is still ramping toward its longer-term target of around 500,000 t/yr of spodumene concentrate.

Underground Feed Improves Recovery Outlook

Kathleen Valley’s underground mining performance improved during the quarter. Underground ore mined totalled 402,000t, up 31% from the previous quarter, with an average grade of about 1.4% lithium oxide.

Lithia recoveries improved in late March as underground ore became the dominant feed source. Liontown achieved its 70% recovery target, while underground ore accounted for 67% of the feed mix in the first weeks of April.

This is a key operational milestone. As the feed mix shifts away from open-pit stockpiles, Kathleen Valley should gain better consistency in processing performance, grade control and recovery rates.

However, the transition also affected quarterly output. Lower production volumes and variable recoveries pushed unit operating costs higher, showing that underground ramp-up periods can create temporary cost pressure before stable-state performance is reached.

Kathleen Valley has a 2.8mn t/yr mining capacity and is expected to produce around 500,000 t/yr of spodumene concentrate. Reaching that level will depend on sustained underground ore delivery, process stability and shipment execution.

Port Disruption and Cost Pressure Shape Near-Term Performance

Cyclone-related disruption affected sales during the quarter. Tropical cyclone Narelle interrupted operations at Geraldton for several days in March, delaying two shipments.

Liontown ended the quarter with 26,270 dry metric tonnes of concentrate in inventory. This was up from 13,800dmt in the previous quarter and 22,519dmt a year earlier, partly reflecting shipment timing.

Unit operating costs on a fob sales basis rose to A$981/t from A$910/t in the previous quarter. The increase was driven by lower production volumes and recoveries during a period of variable feed mix.

This cost movement matters because lithium markets remain highly competitive after the price correction of the past two years. Producers need scale, grade control and low operating costs to defend margins.

Kathleen Valley’s underground transition could improve cost performance over time if recoveries remain stable and mined volumes continue rising. But the quarter shows that ramp-up execution remains critical.

For the wider lithium market, Liontown’s flat output adds to a more disciplined supply picture. New spodumene supply is still entering the market, but operational transitions, weather disruptions and cost pressure continue to affect how quickly nameplate capacity becomes reliable production.

The Metalnomist Commentary

Liontown’s quarter should be read as an underground ramp-up story, not a weak demand signal. Kathleen Valley’s recovery performance is improving, but cost control and shipment reliability will determine how competitive the operation becomes as lithium supply remains under pressure.

Appalachian Lithium Reserves Could Strengthen US Domestic Supply Security

USGS

Appalachian lithium reserves could give the US a much larger domestic resource base than previously recognised, according to a new assessment from the US Geological Survey. The agency said the eastern US Appalachian region may contain enough undiscovered, economically recoverable lithium to replace 328 years of US imports at 2025 levels.

Appalachian lithium reserves are hosted in pegmatites, large-grained rocks similar to granite. The southern Appalachian region is estimated to contain 1.43mn t of lithium oxide, while the northern Appalachian region holds another 0.90mn t.

Appalachian lithium reserves matter because the US still depends heavily on imported lithium. The country has only one current lithium producer and relied on imports for more than half of its supply in 2025.

The assessment adds another possible domestic supply route alongside lithium brine projects in the Smackover formation. Together, these resources could reshape US lithium strategy if they can be converted into permitted, economic and commercially scalable projects.

Pegmatite Resources Add a Hard-Rock Lithium Option

The Appalachian assessment points to hard-rock lithium potential in the eastern US. Pegmatite-hosted lithium is different from brine-based production because it usually requires mining, concentration and chemical conversion.

This gives the US another possible supply pathway. Hard-rock projects can produce spodumene concentrate, which can then be converted into lithium chemicals for batteries, energy storage and industrial uses.

Albemarle is already planning a lithium concentrator facility at Kings Mountain, North Carolina. The project is designed to produce 420,000 t/yr of lithium concentrate from spodumene.

That project is important because it could help rebuild a US hard-rock lithium supply chain. Domestic spodumene production would reduce reliance on foreign raw material and support future US conversion capacity.

However, resource estimates alone do not guarantee supply. Appalachian lithium projects would still need exploration, permitting, mine development, processing investment, environmental approvals and downstream customer qualification.

The strategic significance is still clear. The US lithium conversation is expanding beyond Nevada brines and western projects into eastern hard-rock resources with long-term supply potential.

Smackover Brines and Appalachian Pegmatites Broaden US Lithium Strategy

The Appalachian estimate follows earlier USGS work on the Smackover formation in southwest Arkansas. In 2024, the agency assessed that Smackover brines contain 5mn-19mn t of lithium, although it did not define economically recoverable volumes.

Several companies, including Equinor, ExxonMobil, EnergyX and Standard Lithium, are developing lithium projects in the Smackover region. Some are targeting commercial output around 2027.

The Smackover and Appalachian resource bases are strategically different but complementary. Smackover projects depend on brine extraction and processing technologies, while Appalachian projects would likely depend on hard-rock mining and spodumene concentration.

This diversification matters for US supply security. A lithium strategy based on multiple geological sources is more resilient than one dependent on a single basin, technology or company.

The US will still need processing capacity. Mining lithium ore or extracting lithium from brine does not automatically create battery-grade lithium carbonate or hydroxide.

That midstream gap remains the critical issue. Domestic resources must be connected to refining, chemical conversion, permitting, infrastructure and offtake agreements before they can reduce import dependence.

For battery manufacturers, the Appalachian assessment offers a long-term signal. More domestic resource potential could support future supply chains for electric vehicles, grid storage and defence-related battery applications.

The Metalnomist Commentary

The Appalachian lithium assessment is a resource-security signal, not an immediate supply solution. The US has the geology, but the decisive bottleneck will be converting resources into permitted mines, concentrators and battery-grade lithium chemicals.

Yongshan Lithium Molybdenum Output Falls as Concentrate Supply Tightens

Yongshan Lithium

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

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

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

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

Concentrate Tightness Hits Ferro-Molybdenum Production

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

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

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

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

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

Higher Prices Support Market but Not Volumes

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

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

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

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

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

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

The Metalnomist Commentary

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

LB Titanium Dioxide Output Falls as Sponge and Battery Materials Expand

LB Titanium

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

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

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

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

Titanium Sponge Offers a Stronger Counterweight

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

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

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

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

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

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

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

Iron Phosphate Growth Signals Battery Materials Diversification

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

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

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

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

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

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

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

The Metalnomist Commentary

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

Critical Metals Tanbreez Acquisition Consolidates Greenland Rare Earth Control

Critical Metals

Critical Metals Tanbreez acquisition will give the US critical minerals developer full ownership of one of Greenland’s most closely watched rare earth projects. The company has agreed to acquire Australian mining firm European Lithium in an all-stock deal valued at $835mn.

The Critical Metals Tanbreez acquisition is designed to consolidate ownership of the Tanbreez rare earth project, where European Lithium currently holds a 7.5% stake. Completion of the transaction would give Critical Metals 100% ownership.

The Critical Metals Tanbreez acquisition strengthens the company’s position in the race to build rare earth supply chains outside China. Greenland is becoming strategically important because western governments and manufacturers want new sources of rare earth concentrate tied to secure processing and offtake routes.

European Lithium shareholders would receive 0.035 Critical Metals shares for each European Lithium share under the letter of intent. The proposed transaction is expected to close in the second half of 2026.

Tanbreez Ownership Supports Mine-to-Market Strategy

Full ownership of Tanbreez would give Critical Metals greater control over project development, financing, offtake and downstream strategy. This matters because rare earth projects often struggle when ownership, processing and customer structures are fragmented.

Critical Metals plans to invest $30mn to fast-track development of Tanbreez. That investment signals an effort to move the project beyond resource positioning and toward a more commercial supply-chain role.

Tanbreez could become an important source of rare earth concentrate for non-China buyers. However, concentrate alone is not enough to secure the rare earth value chain. Material must still be separated, refined, converted into metals or alloys, and qualified by downstream users.

The company’s offtake agreements provide early commercial direction. Critical Metals has an agreement with Ucore Rare Earths for as much as 10,000 t/yr of rare earth concentrate and another with REalloy for 15% of Tanbreez’s annual output.

These agreements help anchor future sales channels. They also show that buyers are willing to secure upstream access before full project development is complete.

Saudi Processing Plan Adds Downstream Dimension

Critical Metals also plans to form a joint venture in Saudi Arabia to build a rare earth processing facility. This is strategically important because processing capacity remains the key bottleneck in ex-China rare earth supply chains.

A Greenland-to-Saudi processing route would add a new geopolitical configuration to the rare earth market. It would connect western-controlled resources with Middle Eastern industrial investment and processing ambitions.

Saudi Arabia has been seeking a larger role in critical minerals, downstream processing and industrial diversification. A rare earth processing venture would fit that strategy while giving Critical Metals another route to move beyond concentrate sales.

For global rare earth buyers, the key issue will be reliability. They need traceable feedstock, qualified processing, stable offtake and predictable geopolitical access.

The transaction also reflects a wider industry trend. Rare earth companies are consolidating ownership and building downstream partnerships because customers no longer want isolated mining assets. They want integrated supply chains that can deliver usable material.

Critical Metals’ strategy is therefore not only about acquiring European Lithium. It is about controlling Tanbreez, securing offtake, adding processing optionality and positioning the project as part of an ex-China rare earth supply network.

The Metalnomist Commentary

The Critical Metals Tanbreez acquisition shows that rare earth strategy is shifting from exploration ownership to full supply-chain control. The real test will be whether Greenland feedstock, Saudi processing and offtake agreements can become a bankable alternative to China-dominated rare earth flows.

PLS Lithium Phosphate Offtake Signals Shift Toward Midstream Battery Materials

PLS Lithium

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

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

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

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

Lithium Phosphate Could Shorten the LFP Supply Chain

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

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

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

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

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

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

Quality Testing Will Determine Commercial Potential

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

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

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

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

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

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

The Metalnomist Commentary

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

US Copper Flows Shift West as Washington Targets African Supply Chains

Copper

US copper flows are becoming a strategic policy priority as Washington seeks to redirect African copper away from China-oriented supply chains and into western manufacturing networks. The shift shows how copper is moving beyond its traditional role as an industrial commodity.

US policymakers are pursuing a dual strategy. They want to accelerate domestic copper projects and processing while also securing international copper sources that can feed US and allied supply chains faster.

The Democratic Republic of Congo has become central to this effort. The country offers high-quality resources and faster supply potential than many long-dated greenfield copper projects.

US copper flows are therefore being reshaped through offtake agreements, financing structures, infrastructure plans and strategic partnerships. The goal is to create secure mine-to-end-use supply chains that support American manufacturing and reduce dependence on China-linked material routes.

African Copper Becomes a Strategic Supply Target

The DRC’s copper output has historically moved east into Chinese-controlled or China-oriented value chains. Washington now wants to build alternative routes that connect African copper to the US and allied industrial base.

This is not only about copper cathode or concentrate volumes. It is about who controls logistics, financing, offtake, processing and final market access.

The US is already using state-backed financing and trading structures to compete for African copper and cobalt. The DRC, Zambia and Guinea are emerging as priority jurisdictions in this wider mineral strategy.

Glencore’s possible sale of a 40% stake in two DRC copper-cobalt mines to the US-backed Orion Critical Mineral Consortium shows how policy and capital are beginning to move together. More US interest is also emerging in Congolese copper-cobalt, manganese, gold and lithium assets.

This matters because China has built deep influence across African mining, processing and trading channels. Western buyers cannot change copper flows only by expressing demand. They need financing, infrastructure, political support and long-term offtake commitments.

The US strategy also reflects a broader recognition that copper supply security cannot rely only on domestic mines. US copper resources are substantial, including brownfield leach opportunities and idle stockpiles, but permitting remains a major constraint.

International supply partnerships can move faster than many US projects. That makes African copper strategically valuable as Washington tries to support manufacturing, grid expansion, defence supply chains and electrification.

Inventory Distortions Change Copper Market Economics

US copper flows are also being affected by tariff expectations and inventory shifts. Around 1.9mn-2mn t of copper metal inventory is now sitting globally, with roughly 1.2mn t located in the US.

That is an unusually high share because the US consumes about 2mn t/yr, while China consumes roughly 15mn t/yr. The result is a market where headline global stocks look large, but copper outside the US can feel much tighter.

This inventory concentration changes copper economics. The same copper unit can carry different value depending on location, policy exposure, tariff risk and available delivery route.

That marks a major shift from the older copper market model. Copper was once priced mainly around construction cycles, manufacturing demand and visible exchange stocks. It is now increasingly priced around jurisdiction, logistics and strategic access.

The CME-LME arbitrage has reopened to encourage flows into the US. This reflects how policy expectations can pull metal across regions even when global balances appear more comfortable.

Physical demand remains supportive. Chinese demand has stayed resilient, Yangshan premiums have strengthened, and Shanghai inventories have continued to draw. These signals suggest that the broader copper market remains tighter than simple stock numbers imply.

Copper’s role in grids, electrification and data centres has also changed how governments view the metal. Copper is now becoming a strategic asset for industrial policy, not only a material input for construction and manufacturing.

The biggest commercial opportunities may therefore shift from pure price arbitrage to control over flows. Traders, miners and governments will increasingly compete through logistics, financing, offtake and jurisdictional positioning.

US copper flows will remain central to that competition. The race is no longer only about producing more copper. It is about deciding where copper goes, who processes it and which industrial systems it supports.

The Metalnomist Commentary

Copper is becoming a policy metal because electrification has turned physical access into a strategic advantage. The next copper cycle will not be defined only by price, but by who controls African supply routes, financing and end-use allocation.