Nornickel Nickel Surplus Forecast Shrinks as Indonesia Supply Tightens

Nornickel

Nornickel nickel surplus forecast has been cut sharply for 2026 as Indonesian ore constraints, higher feedstock costs and sulphur shortages slow the supply growth that drove recent oversupply. The Russian producer now expects a marginal global surplus of around 20,000t, down from its previous forecast of 240,000t.

Nornickel nickel surplus forecast reflects a major shift in supply conditions. Global nickel production is expected to fall by 5% to 3.71mn t in 2026, marking the first annual decline in a decade, while demand is forecast to rise by 2% to 3.69mn t.

Nornickel nickel surplus forecast also places Indonesia at the centre of the market balance. Lower effective mining volumes, declining ore grades and sharply higher ore prices are tightening feedstock availability for NPI, HPAL and Class 1 nickel producers.

The adjustment follows a 2025 surplus of around 278,000t, when supply increased by 7% and demand rose by 6%. The market is therefore moving from structural oversupply toward a much tighter balance.

Indonesia Ore and Sulphur Constraints Reshape Supply

Indonesia mined around 320mn t of nickel ore in 2025 against an approved quota of 379mn t. For 2026, quotas are expected at around 300mn t, but actual mining could be closer to 270mn t if utilisation remains near 90%.

Lower ore grades further reduce contained nickel availability. Indonesian NPI production fell by 8% year on year in January-May, suggesting smelters are already feeling the impact.

Philippine ore imports could reach around 25mn t this year and offset part of the shortfall. However, Indonesia’s July quota review remains a critical market variable.

Ore economics are tightening as well. Indonesia’s revised pricing formula has doubled or tripled minimum ore prices for some grades.

Nornickel estimates the new system could add as much as $5,000/t to the cost of Class 1 nickel produced from Indonesian feedstock on a cathode-equivalent basis.

HPAL producers face another problem: sulphur.

Middle East disruption has pushed sulphur prices from around $300/t to above $1,000/t. HPAL operations require roughly 10-11t of sulphur for every tonne of nickel produced.

Indonesia sourced more than 75% of its sulphur imports from the Middle East in 2025, leaving battery nickel projects highly exposed to disrupted maritime supply.

Around one-third of HPAL capacity is currently idle, while HPAL production fell by 20% year on year in May.

Nornickel expects Indonesian NPI output to decline by 11% this year and mixed hydroxide precipitate production by 9%. Class 1 nickel supply is forecast to fall by 2%.

Demand Growth Stays Modest as Stainless Scrap Use Rises

Nickel demand is still growing, but not strongly enough to create a clear deficit.

Nornickel expects stainless steel nickel consumption to rise by only 1% this year. Chinese producers are using more scrap, reducing their need for primary nickel units.

China’s average stainless scrap share is expected to increase to 24% in 2026 from 19% in 2025. That change could keep Chinese primary nickel demand in stainless steel broadly flat at around 1.6mn t.

A higher share of 316 stainless partly offsets the scrap effect because 316 contains more nickel than 304. Chinese 300-series stainless output increased by 3% in the first five months of the year, while 200-series production rose by 11%.

Battery-related demand remains stronger.

China’s nickel sulphate output is forecast to rise by 15% to 421,000t of contained nickel in 2026 and reach 455,000t in 2027. Indonesian nickel sulphate production is expected to increase by 18% to 59,000t this year.

Matte output is another growth area. Indonesian nickel matte production is forecast to jump by 48% as conversion from NPI becomes more attractive.

The market could loosen again in 2027. Nornickel expects the surplus to widen modestly to around 55,000t if Indonesian ore quotas increase, sulphur availability improves and new processing capacity ramps up.

The near-term nickel story has therefore changed. Oversupply has not disappeared, but the margin between surplus and balance has narrowed sharply as Indonesian policy and feedstock economics begin to constrain output.

The Metalnomist Commentary

Nickel’s biggest bullish driver is no longer demand acceleration but supply discipline in Indonesia. If ore quotas remain tight and sulphur costs stay elevated, the market could remain far more balanced than recent oversupply trends suggested.

EGA Al-Taweelah Recycling Plant Expands Low-Carbon Aluminium Capacity

EGA

EGA Al-Taweelah recycling plant has started operations in Abu Dhabi, adding 185,000 t/yr of low-carbon recycled aluminium capacity to Emirates Global Aluminium’s growing secondary metals platform.

EGA Al-Taweelah recycling plant will process both pre-consumer factory scrap and post-consumer aluminium scrap. The project strengthens EGA’s ability to supply customers seeking lower-carbon metal and higher recycled content.

EGA Al-Taweelah recycling plant also marks a recovery milestone after an Iranian missile struck the site on 28 March and delayed completion. Recycled cast metal production resumed in early May, with full ramp-up expected to take up to six months.

The pace of expansion will depend partly on scrap availability, highlighting how access to suitable recycled feedstock is becoming increasingly important to aluminium producers.

Scrap Supply Becomes Critical to EGA’s Ramp-Up

Construction of the Al-Taweelah recycling facility began in late 2023, and EGA charged its first melting furnace in January. Full completion had originally been targeted by the end of the first quarter.

The March missile strike disrupted that schedule and injured several employees. The restart of recycled cast metal production in May allowed EGA to resume the project’s commercial ramp-up.

The 185,000 t/yr facility gives EGA another route to reduce the carbon intensity of its product mix. Secondary aluminium requires significantly less energy than producing primary metal from alumina, making recycled units increasingly attractive to automotive, packaging and industrial customers.

However, scrap availability will determine how quickly the plant reaches nameplate output. Competition for clean pre-consumer and post-consumer aluminium scrap is rising as more producers invest in recycled-content products.

That makes collection, sorting, alloy control and long-term scrap sourcing increasingly important parts of aluminium competitiveness.

EGA Builds Global Secondary Aluminium Network

The Abu Dhabi project is part of a broader international recycling strategy. EGA has been expanding secondary aluminium capacity across Europe and North America through acquisitions and organic investment.

The company acquired German recycler Leichtmetalle in 2024 and later announced a major expansion that will increase the facility’s capacity more than sixfold.

EGA also bought a majority stake in US secondary aluminium smelter Spectro Alloys in 2024. Two subsequent expansions are expected to lift the plant’s capacity to more than 200,000 t/yr of secondary aluminium ingots and billets, from 110,000 t/yr previously.

In April, EGA announced the acquisition of an 80% stake in Italian aluminium recycler Eco Green, further extending its European recycling network.

The strategy gives EGA access to scrap pools closer to major customers while reducing reliance on primary aluminium growth alone. It also allows the company to offer a broader range of low-carbon products across different regions.

For the aluminium market, EGA’s expansion reinforces a wider structural shift. Recycling capacity is becoming a core strategic asset as customers demand lower embedded emissions and governments push for more circular material use.

The Metalnomist Commentary

EGA is turning recycling into a second growth platform alongside primary aluminium. The strategic constraint will increasingly be access to clean, traceable scrap rather than melting capacity itself.

EU Ferro-Titanium Imports Hit Highest Level Since 2024 as Russian Supply Dries Up

Ferro Titanium

EU ferro-titanium imports rose to their highest level in more than a year in the first quarter, supported by robust demand from steel mills and cored-wire producers. The increase also reflected a market shift as Russian receipts effectively disappeared and European suppliers captured more share.

EU ferro-titanium imports reached 8,431t in January-March, up 19% from a year earlier and 13% from the previous quarter. The total was the highest since the fourth quarter of 2024, when Russian material was still moving into the bloc in significant volumes.

EU ferro-titanium imports were concentrated in Estonia, Poland, Latvia and the UK. These destinations took a combined 5,119t, equal to 61% of the first-quarter total, up from 51% a year earlier.

The figures show how sanctions, scrap availability and steel-sector buying are reshaping the European ferro-titanium market. Demand has improved, but the supply base has changed sharply.

Sanctions Redirect Russian Ferro-Titanium Toward Asia

Russian ferro-titanium flows into Europe have effectively stopped since sanctions were imposed on Russian ferro-alloys in December 2024. That removed a major historical source of supply from the European market.

Before sanctions, the EU was still receiving 2,000-3,000 t/quarter of Russian ferro-titanium. Those flows helped lift imports to 11,661t in the fourth quarter of 2024.

Now, Russian material has shifted toward Asia. China has become the dominant buyer of Russian ferro-titanium, with imports from Russia rising to a record 3,855t in the first quarter, up from 816t a year earlier.

This shift matters because Europe still needs titanium units for steel and cored-wire production. Ferro-titanium is used to add titanium to steel, where it supports deoxidation, grain refinement and stabilisation in selected grades.

Market participants have said some Russian material may still be reaching Europe through third countries in circumvention of sanctions. That claim highlights the continuing importance of origin control, documentation and compliance in ferro-alloy trade.

Non-EU imports, excluding the UK, reached 1,388t in the first quarter, up from 1,179t a year earlier. India was the leading non-EU supplier, shipping 426t, double the year-earlier level but down 38% from the previous quarter.

Scrap Tightness Supports Ferro-Titanium Price Recovery

Titanium scrap availability became another pressure point. EU imports of unsanctioned titanium scrap from Russia fell sharply to just 37t in the first quarter, all into Germany.

This is a major change for the Baltic route. Estonia imported no Russian titanium scrap in the quarter, compared with an average of 601 t/quarter last year.

Lower scrap availability matters because titanium scrap is a key feedstock for ferro-titanium production. Tighter scrap supply can raise production costs and reduce prompt availability for alloy producers.

European standard-grade ferro-titanium prices averaged $4.70-4.97/kg Ti dp/df Rotterdam in the first quarter, down from $5.68-6.02/kg Ti a year earlier. However, the market strengthened through the quarter.

Prices opened at $4.30-4.60/kg Ti and closed at $4.85-5.30/kg Ti. The rally was initially triggered by the insolvency of Austrian trader LL-Resources, although its ferro-titanium subsidiary LLR-Ecotech said operations were unaffected.

The price rise then gained support from stronger mill demand under long-term contracts, prompt buying and quarterly spot enquiries. Tighter titanium scrap availability also added cost pressure.

The rally continued into the second quarter, suggesting that buyers remain sensitive to reduced Russian availability and constrained scrap flows.

For Europe, the key issue is not only volume. The region must secure compliant titanium units for steelmaking while avoiding sanctioned material and managing higher feedstock costs.

The first-quarter data therefore point to a more regionalised ferro-titanium market. Europe is relying more on domestic and approved suppliers, while Russian material is increasingly absorbed in Asia.

EU, Fe-Ti Import

The Metalnomist Commentary

Europe’s ferro-titanium market is becoming a compliance-driven supply chain. The real advantage will go to producers that can secure clean titanium scrap, prove origin and deliver reliable alloy supply into steel and cored-wire demand.

Derichebourg Recycling Results Rise on Non-Ferrous Strength and Scrap Policy Support

Chhattisgarh, Ferro‑alloy

Derichebourg recycling results improved in the first half of the company’s 2025-26 financial year as stronger non-ferrous demand, higher prices and increased metal volumes lifted earnings. The French recycling group reported Ebitda of €177.8mn for October-March, up almost 10% from a year earlier.

Derichebourg recycling results show how metal recyclers are benefiting from two linked forces. Non-ferrous scrap demand remains firm, while European steel policy is encouraging mills to source more feedstock from within the region.

Derichebourg recycling results also point to continued momentum in the second half. The company expects April-September performance to be comparable to the first half and forecasts full-year Ebitda of €350mn-370mn.

The market responded positively to the filing, with Derichebourg’s share price rising above €10 from €9.50 after the results were released.

Non-Ferrous Metals Drive Earnings Growth

Non-ferrous metals were the main earnings driver. Derichebourg sold 357,100t of non-ferrous metals in the first half, up 4.4% from a year earlier.

Revenue from the non-ferrous segment rose by nearly 20% to €1bn. The average non-ferrous price was almost 15% higher than in the same period last year.

Copper sales were especially strong, rising by 17%. Aluminium sales, excluding ingots, increased by 10%, supported by firm industrial demand.

However, the picture was not uniformly positive. Aluminium ingot sales fell by 15%, while lead sales dropped by 4%, mainly because of weaker demand from the automotive industry.

This split matters for recyclers. Copper and aluminium scrap remain exposed to electrification, infrastructure and industrial manufacturing, while automotive weakness can still pressure selected downstream products.

Derichebourg’s non-ferrous performance shows that scrap is becoming a strategic raw material, not only a waste recovery business. Buyers increasingly need reliable recycled metal flows for cost control, carbon reduction and supply security.

CBAM and Steel Quotas Support Ferrous Scrap Outlook

Ferrous scrap revenue fell by 5% to €649.9mn because lower average prices offset higher volumes. Derichebourg sold 2.13mn t of ferrous scrap, up 2.2% from a year earlier.

European mills increased scrap purchases ahead of the Carbon Border Adjustment Mechanism coming into force in January. CBAM has added complexity to imported steel and raw material calculations, pushing some steelmakers toward European suppliers.

The company also expects ferrous scrap demand to strengthen after the EU introduces new steel quotas and customs duties in July. These measures could support regional scrap flows by making local feedstock more attractive.

Turkey also contributed to stronger scrap demand as steel production increased. That remains important because Turkish mills are major seaborne scrap buyers and can influence European collection and export markets.

Derichebourg is also expanding geographically. The company agreed to acquire Germany’s Scholz Recycling, which operates 180 sites including joint ventures across Germany, the Czech Republic, Poland, Slovenia, Austria and Romania.

The deal is expected to close in the second half of 2026. It will strengthen Derichebourg’s recycling network in eastern Europe, where its presence has been smaller.

The acquisition fits the wider market direction. European recyclers are scaling up as policy, carbon rules and industrial demand make scrap supply more valuable.

The Metalnomist Commentary

Derichebourg’s results show that recycling is becoming a policy-supported industrial supply chain. CBAM, steel trade measures and non-ferrous demand are turning scrap networks into strategic assets for European metals security.

Alabama Scrap Shredder to Strengthen Outokumpu’s Stainless Recycling Loop

Jefferson Iron & Metal

Alabama scrap shredder investment by Jefferson Iron and Metal Brokerage will create a dedicated scrap processing route inside Outokumpu’s stainless steel mill in Calvert. The $22mn project will support a tighter closed-loop scrap supply system for the Alabama stainless operation.

Alabama scrap shredder capacity is planned at about 9,000 short tons per month. The shredder will process scrap generated at Outokumpu’s mill near Mobile, Alabama, and return the shredded material directly into the plant’s operations.

Alabama scrap shredder development is strategically important because stainless steel mills depend on clean, consistent and efficiently prepared scrap. Better on-site processing can reduce handling costs, improve material control and support higher recycled-content production.

Jefferson Shredding and Recycling, a subsidiary of Alabama-based Jefferson Iron and Metal Brokerage, plans to break ground next month. Operations are expected to begin in August 2027.

On-Site Shredding Improves Scrap Control

The project gives Outokumpu a more direct route for recovering and reusing internal stainless scrap. Instead of moving material through a longer external supply chain, the mill can keep more scrap within its own operating loop.

This matters because stainless scrap contains valuable alloying elements such as chromium, nickel and molybdenum. Preserving those units inside the mill system can improve raw material efficiency and reduce exposure to external alloy and scrap markets.

On-site shredding also supports better quality control. Stainless mills need scrap that is properly sized, separated and prepared for melting. Poorly controlled scrap can create chemistry risk, yield loss and operating inefficiency.

The Jefferson-Outokumpu structure is practical. Jefferson brings scrap processing expertise, while Outokumpu gains a dedicated recycling asset linked directly to its stainless production base.

Closed-Loop Recycling Supports US Stainless Competitiveness

The Calvert mill is one of the most important stainless steel assets in the US. Adding dedicated scrap processing strengthens its ability to compete in a market where recycled content, cost control and supply security are increasingly important.

Stainless steel recycling is already a major advantage for the sector. But the value rises when mills can shorten the route between scrap generation, preparation and remelting.

The project also fits wider trends in US metals manufacturing. Producers are trying to localise feedstock, reduce waste, lower logistics exposure and improve traceability.

For Jefferson, the investment expands its role from scrap broker and recycler into an embedded processing partner for a major stainless producer. For Outokumpu, the shredder improves scrap circularity and gives the mill more control over internal material flows.

The 2027 start-up timeline means the project will not affect near-term stainless supply. But once operational, it should strengthen the Calvert site’s raw material flexibility and recycling efficiency.

The Metalnomist Commentary

The Jefferson-Outokumpu project shows that recycling advantage is increasingly built inside the mill gate. In stainless steel, controlling scrap chemistry, size and flow can be as important as securing primary alloy inputs.

IonicRE Rare Earth Oxide Supply to AML Advances US Defence Magnet Chain

Ionic Rare Earth

IonicRE rare earth oxide supply to Advanced Magnet Lab marks a small but strategic step in building a non-China supply route for defence-grade permanent magnets. The Australian rare earths miner, refiner and recycler has started shipping high-purity rare earth oxides from its Belfast recycling facility to the US magnet producer.

IonicRE rare earth oxide supply currently involves kilogram-scale volumes of neodymium, praseodymium and dysprosium oxides. The material has 99.5-99.9% purity and will be used by AML to produce high-grade sintered neodymium-iron-boron magnets for US defence customers.

IonicRE rare earth oxide supply is important because magnet qualification starts with small, tightly controlled shipments. These early volumes help validate chemistry, process compatibility and performance before larger commercial deliveries begin.

The companies are already discussing a second sale of neodymium and dysprosium. They have also signed a non-binding memorandum of understanding for longer-term cooperation, with future commercial volumes likely to reach tonnes in 2027.

Belfast Recycling Turns Magnet Scrap Into Strategic Feedstock

IonicRE’s Belfast facility currently has 10 t/yr of rare earth recycling capacity. While modest, it gives western magnet producers a practical source of recycled rare earth oxides from end-of-life and industrial magnet scrap.

The supply chain includes used NdFeB magnet feedstock from German manufacturer Vacuumschmelze and scrap handler European Metal Recycling. IonicRE also has offtake relationships with automotive companies including Ford, Bentley and Wrightbus.

This structure matters because rare earth recycling can shorten supply chains and improve traceability. It also reduces dependence on newly mined material at a time when rare earth separation and magnet production remain highly concentrated in China.

The company’s planned additional Belfast facility received £12mn from the UK government in January. That plant is expected to produce 400 t/yr of light rare earths neodymium-praseodymium, as well as heavy rare earths dysprosium and terbium, by the first half of 2028.

Dysprosium is particularly important for defence magnets because it helps maintain magnetic performance under heat and stress. That makes recycled heavy rare earth recovery strategically valuable, even at relatively small volumes.

AML Link Connects Recycling to Defence Magnet Production

AML will use IonicRE’s oxides to produce high-grade sintered NdFeB magnets for defence applications. This connects recycled rare earth feedstock directly to one of the most sensitive parts of the US critical minerals supply chain.

The US is trying to secure rare earth permanent magnet supply outside China after Beijing imposed export controls on rare earth permanent magnets in April 2025. China controls about 90% of the supply chain, leaving US defence and industrial users exposed to licensing risk.

IonicRE brings a wider rare earth platform to the partnership. The company owns 60% of Uganda’s Makuutu rare earth project, holds a 50% stake in a Brazilian rare earth refining joint venture with Viridis, and has signed an MoU with US Strategic Metals for a Missouri recycling facility.

That portfolio gives IonicRE several possible feedstock and processing routes. But the AML shipment is important because it moves from strategy into physical supply.

The key challenge now is scale. Kilogram shipments can support qualification, but defence and industrial magnet markets will need repeatable tonne-scale supply, consistent purity and reliable delivery.

If IonicRE and AML can move from pilot volumes to commercial supply, the partnership could become a useful building block in the US rare earth magnet chain. It would also show how recycling can complement mining and refining in reducing China exposure.

The Metalnomist Commentary

This shipment is small in volume but large in strategic meaning. Non-China rare earth supply chains will be built through qualification steps like this, where recycled oxides prove they can become defence-grade magnets.

Heraeus Vmet PGM Recycling Partnership Targets Iridium and Ruthenium Supply

Heraeus Precious Metals

Heraeus Vmet PGM recycling partnership will strengthen recovery routes for platinum group metal-containing industrial scrap, with a focus on iridium and ruthenium coated materials. Germany-based Heraeus Precious Metals and Italy-based Vmet signed the agreement in March.

Heraeus Vmet PGM recycling cooperation brings together Vmet’s sourcing capabilities and Heraeus’ global refining capacity. The structure is designed to improve collection, processing and refining of complex PGM-bearing scrap streams.

Heraeus Vmet PGM recycling is strategically important because primary iridium and ruthenium supply is limited and unlikely to grow quickly. South African PGM miners have reduced production and limited capital investment in recent years, constraining future mine supply.

The partnership targets a more circular PGM supply chain for high-value industrial materials used in aerospace, defence, electrical and hydrogen applications.

Industrial Scrap Becomes a Critical PGM Feedstock

Vmet specialises in recycling PGM-containing industrial scrap, including ruthenium-coated titanium electrodes and catalyst residues. These materials can contain valuable metal units that are difficult to replace through primary mining alone.

This matters because iridium and ruthenium are small-volume but high-strategic-value metals. Global primary production was only 7.2t of iridium and 29.5t of ruthenium in 2022.

Such limited supply creates vulnerability. Even modest demand growth from hydrogen, electronics, aerospace or defence can tighten availability quickly.

Recycling therefore becomes more than an environmental solution. It becomes a supply-security tool for customers that need qualified PGMs in specialised applications.

Heraeus’ refining capacity adds scale and technical depth to the partnership. Processing coated materials and catalyst residues requires strong metallurgical expertise, sampling discipline and recovery control.

Hydrogen and Defence Demand Raise Circularity Value

Iridium and ruthenium are increasingly relevant to advanced industrial systems. They are used in electrical applications, aerospace and defence technologies, and selected hydrogen-sector processes.

Hydrogen demand is especially important because some electrolyser technologies rely on scarce PGMs. As governments invest in low-carbon hydrogen, pressure on iridium and ruthenium supply could rise.

At the same time, mine supply is not flexible. PGM output depends largely on South African mining economics, ore bodies and capital investment decisions.

This makes secondary supply strategically valuable. Recovered PGMs can reduce dependence on mined material, improve supply resilience and support customers with stronger traceability.

For Heraeus and Vmet, the opportunity lies in converting specialised scrap into reliable refined products. For end users, the partnership could improve access to metals that are difficult to source in large quantities from primary supply.

The deal also reflects a broader shift in minor and precious metals. Recycling networks are becoming part of industrial supply-chain strategy, especially where material scarcity, qualification requirements and geopolitical risk overlap.

The Metalnomist Commentary

The Heraeus-Vmet partnership shows that PGM recycling is becoming a strategic materials business. Iridium and ruthenium supply will increasingly depend on who can capture, process and refine complex industrial scrap before scarcity reaches end users.

Heraeus Remloy Magnet Recycling Sale Strengthens Mkango’s European Rare Earth Platform

Heraeus

Heraeus Remloy magnet recycling is set to move under Mkango Resources after Germany-headquartered Heraeus agreed to sell its rare earth magnet recycling unit to the Canadian company. The deal gives Mkango direct access to a German platform for producing neodymium-iron-boron alloy powders.

Heraeus Remloy magnet recycling is strategically important because NdFeB powders can be used by customers to manufacture new permanent magnets. These magnets are critical for electric motors, wind turbines, robotics, electronics, defence systems and advanced industrial equipment.

Heraeus Remloy magnet recycling operates from Bitterfeld in Saxony-Anhalt. The facility can produce 600 t/yr of rare earth magnetic powders, with potential to ramp up to 1,200 t/yr.

The transaction is expected to close in summer 2026, subject to regulatory approvals. Financial details were not disclosed.

Bitterfeld Facility Adds NdFeB Powder Capacity

Heraeus Remloy was developed as an in-house startup within Heraeus. Its focus on NdFeB alloy powders places it in a valuable part of the magnet recycling chain.

This matters because recycling rare earth magnets is not only about collecting scrap. The material must be processed into usable feedstock that magnet makers can qualify and reuse.

The Bitterfeld plant gives Mkango an operational base in Germany, one of Europe’s core advanced manufacturing markets. That location could support customers seeking regional rare earth magnet materials with stronger supply-chain traceability.

The facility’s 600 t/yr current capacity is modest in global terms, but meaningful for Europe’s early-stage magnet recycling industry. The option to ramp up to 1,200 t/yr adds future flexibility if demand strengthens.

For Mkango, the acquisition can deepen its downstream rare earth position. Instead of focusing only on mining or separation, the company gains a route into recycled magnet powder production.

Europe’s Magnet Recycling Chain Gains Strategic Relevance

The deal comes as Europe tries to reduce dependence on China-dominated rare earth and magnet supply chains. Recycling is becoming one of the fastest practical routes to add regional material availability.

NdFeB magnets contain neodymium and praseodymium, and some high-performance applications also use dysprosium or terbium. Recovering these materials from magnet scrap can reduce pressure on primary supply and improve circularity.

Permanent magnet recycling also supports European industrial policy. Automotive, wind power, automation and defence manufacturers increasingly need secure, traceable and lower-risk sources of magnet materials.

However, recycled powders still need customer qualification. Magnet producers require consistent chemistry, particle characteristics and performance before they can use recycled feedstock at scale.

Mkango’s challenge will be to turn the Bitterfeld asset into a reliable commercial platform. If it can expand production and secure customers, the acquisition could strengthen Europe’s rare earth recycling ecosystem.

The Metalnomist Commentary

Mkango’s purchase of Heraeus Remloy shows that rare earth recycling is moving from concept to industrial asset consolidation. Europe’s magnet security will depend on practical facilities like Bitterfeld that can convert scrap into qualified, reusable magnetic materials.

Global Recycled Metals Output Rises as China and Emerging Regions Expand Capacity

Recycled Metals

Global recycled metals output increased further in 2025 as China maintained its leading position and emerging regions expanded recycling capacity. Production of recycled copper, aluminium, lead and zinc reached about 59.2mn t, up 5.6% from a year earlier.

Global recycled metals output is becoming more important to non-ferrous supply security as mining, processing and trade flows face rising geopolitical and cost pressures. Recycling now provides a larger secondary source of industrial metal units for manufacturers, smelters and battery supply chains.

Global recycled metals output accounted for around 34% of total non-ferrous metal production in 2025. The sector also delivered cumulative savings of about 1.2bn t of primary mineral resources, underlining its growing role in resource conservation.

The growth shows that recycled metals are no longer a secondary environmental story. They are becoming a core part of industrial raw material strategy across copper, aluminium, lead, zinc and battery metals.

China Leads as Regional Recycling Capacity Expands

China remained the world’s largest recycled base metals producer in 2025, with output of 20.57mn t. That represented 34.7% of global production.

The country’s scale gives it a major role in recycled copper, aluminium, lead and zinc supply. It also strengthens China’s position across non-ferrous metals at a time when primary raw material security is under pressure.

Europe produced more than 10mn t of recycled base metals, while the US produced more than 6mn t. India and southeast Asia reached around 6mn t and 4mn t, respectively.

These figures show that recycling capacity is becoming more geographically distributed. Emerging regions are no longer only consumers of recycled raw materials. They are becoming processing centres in their own right.

Battery-related recycling is also growing quickly. Nickel, cobalt and lithium recovery is supporting the new energy industry as electric vehicle and energy storage supply chains look for more secure material sources.

China aims to increase domestic recycled material recovery to 23mn t by 2030 under its next five-year plan. That target implies annual growth of around 7%.

The country is also expected to strengthen recycled product certification and explore the inclusion of recycled materials in carbon trading systems. This could make recycled metal more valuable for customers seeking traceable and lower-carbon supply.

Trade Flows and Technology Move Toward Asia

Global recycled raw material trade is becoming more regional, more Asia-focused and more diversified. Europe and North America remain major exporters of recycled copper and aluminium feedstock.

Europe exports around 2mn t/yr of recycled copper and aluminium feedstock, while North America exports about 4.2mn t/yr. China and India remain the largest importers, with imports exceeding 4mn t and 2mn t, respectively.

Southeast Asia is becoming a key transshipment hub. Regional recycled aluminium feedstock trade reached about 1.3mn t of imports and 900,000t of exports.

Black mass from spent lithium-ion batteries is also increasingly moving toward Asian processing centres. This reflects Asia’s stronger battery materials processing base and growing demand for recovered nickel, cobalt and lithium units.

Technology is improving the recycling value chain. Advances in laser sorting, intelligent dismantling, multi-metal battery recovery and digital process control are raising recovery rates and product quality.

Leading producers have achieved recycling rates above 94% for aluminium and 95% for lithium. These levels show how recycling is moving closer to industrial-grade resource recovery rather than simple scrap handling.

New products are also expanding. High-strength recycled aluminium alloys, high-purity recycled copper and recycled rare-earth permanent magnets are gaining traction.

This matters because recycled metal must meet customer specifications before it can displace primary material. Better sorting, cleaner chemistry and stronger certification will determine how much recycled metal can enter high-value applications.

The Metalnomist Commentary

Recycling is becoming a strategic metals supply pillar, not just a sustainability tool. The next competitive edge will come from producers that can turn complex scrap and battery waste into certified, high-purity and customer-ready materials.

Aperam Recycling North America Names Evan Dyal as New Chief Executive

Aperam Recycling

Aperam Recycling North America will move into new leadership on 1 July as Evan Dyal succeeds Chris Niles as chief executive of the company’s regional operations. The appointment places a long-serving ELG Metals USA executive at the head of Aperam’s North American recycling platform.

Aperam Recycling North America is strategically important because stainless steel producers increasingly rely on high-quality scrap flows to manage costs, improve circularity and support lower-carbon production. Leadership continuity matters in a market where scrap sourcing, customer relationships and alloy knowledge are critical.

Dyal is currently general manager of Aperam Recycling’s Mobile, Alabama, location. He has spent more than 18 years with Aperam subsidiary ELG Metals USA, giving him deep operational experience in specialty metals recycling.

Chris Niles will leave the company after 25 years. His departure marks a leadership transition for a business tied closely to stainless steel, nickel-bearing scrap and specialty alloy supply chains.

Leadership Continuity Supports Stainless Scrap Strategy

Aperam’s choice of Dyal signals a preference for internal continuity. Recycling operations depend heavily on supplier networks, material knowledge and disciplined quality control.

This is especially important in stainless steel recycling. Scrap streams can contain nickel, chromium, molybdenum and other valuable alloying elements, making accurate sorting and processing essential.

North American stainless scrap supply remains strategically valuable as mills seek more recycled units and lower-carbon feedstock. Processors that can secure clean, reliable and specification-ready scrap will remain important to stainless producers.

Dyal’s Mobile experience gives him direct exposure to yard operations, logistics, supplier management and customer requirements. That operational background should support Aperam Recycling North America as competition for quality scrap intensifies.

Commercial Role Strengthens Regional Customer Focus

Aperam also promoted Andres Montes to chief commercial officer of North America. Montes currently leads specialty sales for the region.

The appointment adds commercial focus alongside the leadership change. Specialty sales are important because stainless and alloy scrap markets require close coordination between processors, mills, traders and industrial customers.

This matters as recycling becomes more central to metals procurement. Buyers increasingly want traceable scrap supply, reliable chemistry and stable delivery into melt shops.

For Aperam, strengthening North American leadership and commercial coverage supports its broader circular metals strategy. The company’s recycling platform can help secure feedstock, improve value capture and support lower-emission stainless production.

The Metalnomist Commentary

Aperam’s leadership change is small in size but meaningful in direction. Stainless steel recycling is becoming more strategic, and experienced operators with alloy scrap knowledge will matter more as mills compete for cleaner recycled feedstock.

GTP Tungsten Oxide Stockpile Expansion Strengthens US Defense Supply

GTP Tungsten & Powders

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

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

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

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

Recycling-Based Supply Supports Traceability and Security

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

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

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

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

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

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

Stockpiling Moves From Emergency Buffer to Industrial Tool

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

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

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

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

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

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

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

The Metalnomist Commentary

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

CFC Recycling Tennessee Expansion Adds Gallatin Scrapyard and Nonferrous Feedstock

CFC Recycling

CFC Recycling Tennessee expansion has advanced with the acquisition of Goolsby & Sons Recycling, giving the company a third scrapyard in the state. The deal strengthens CFC’s regional collection network and adds a new feedstock source for its nonferrous shredder.

CFC Recycling Tennessee expansion now links the company’s existing scrapyards in Tullahoma and McMinnville with a new site in Gallatin. The acquired location will be temporarily closed for upgrades before reopening in June.

CFC Recycling Tennessee expansion is significant because scrap processors are increasingly competing for reliable regional feedstock. Control over collection points, yard infrastructure and processing routes can determine margins in both ferrous and nonferrous recycling.

Financial details of the acquisition were not disclosed. CFC plans a soft opening on 18 May before fully reopening the Gallatin location in June.

Gallatin Yard Strengthens Regional Scrap Collection

The Goolsby & Sons site gives CFC another physical intake point for scrap in Tennessee. That matters because scrapyard density improves access to local industrial, demolition, commercial and consumer scrap flows.

CFC plans to renovate buildings and equipment at the Gallatin site. It also plans to concrete surfaces, improving yard handling, environmental control and operating efficiency.

These upgrades are practical but important. Better surfaces can reduce contamination, improve traffic flow, support cleaner material handling and help meet customer and regulatory expectations.

The acquisition also gives CFC a stronger footprint in a state with active manufacturing, construction and industrial activity. Regional scrap generation can support steady flows of steel, stainless steel, aluminium and other nonferrous materials.

For smaller recycling networks, yard expansion can create scale advantages. More sites improve sourcing reach, while centralised processing can lift equipment utilisation.

Nonferrous Shredder Feedstock Becomes Strategic

The deal adds a new feedstock source for CFC’s nonferrous shredder. The company operates a 3Tek Bravo 6280 hammer mill shredder used to process stainless steel and aluminium specialty items.

That detail is commercially important. Nonferrous scrap processing can carry higher value than ordinary ferrous scrap when material is sorted, upgraded and delivered into qualified downstream channels.

Aluminium specialty scrap is especially relevant because secondary aluminium demand is growing across automotive, packaging, construction and industrial markets. Processors with better collection and shredding capacity can capture more value from complex scrap streams.

Stainless steel scrap also remains valuable because of its nickel, chromium and molybdenum content. Efficient shredding and separation can improve recoveries and support alloy producers seeking recycled feedstock.

CFC’s acquisition therefore fits a wider industry trend. Scrap companies are not only buying yards for volume. They are building feedstock networks around specific processing equipment and higher-value material streams.

The Gallatin site should help CFC improve sourcing flexibility. Once renovated, it can support local intake while feeding the company’s broader processing platform.

The Metalnomist Commentary

CFC’s acquisition shows that regional scrap control is becoming more strategic as recyclers chase cleaner and higher-value feedstock. The real value of the Gallatin yard will depend on how effectively CFC channels material into its stainless and aluminium specialty shredding operations.

SRG NuCycle Acquisition Adds Low-Copper Shred Capacity in South Carolina

SRG

SRG NuCycle acquisition will expand Southeast Recycling Group’s scrap processing network with an automotive shredder capable of producing low-copper ferrous scrap. The deal strengthens SRG’s position in the southeastern US recycling market.

SRG NuCycle acquisition includes NuCycle’s Rock Hill, South Carolina, operations, its 4,000-horsepower Danieli shredder and auto parts yard Carolina Salvage. The transaction is expected to close later this month.

SRG NuCycle acquisition is strategically important because low-copper shred is increasingly valuable to steelmakers seeking cleaner ferrous feedstock. Better scrap quality supports electric arc furnace steelmaking, improves melt efficiency and reduces contamination risk in higher-grade steel products.

SRG will also gain downstream non-ferrous recovery capability through NuCycle’s existing system. This adds value beyond ferrous scrap by improving recovery of aluminium, copper, stainless and other non-ferrous fractions.

Low-Copper Shredder Strengthens Ferrous Scrap Quality

The acquired shredder is a 4,000-horsepower 80×108-inch Danieli unit. It includes a ballistic separator designed to produce a low-copper ferrous product.

This matters because copper contamination is one of the most important quality issues in ferrous scrap. Residual copper can limit the use of scrap in flat-rolled and higher-quality steel applications.

Low-copper shred gives processors a stronger product for steel mills that need cleaner scrap feedstock. It also helps bridge the quality gap between obsolete scrap and more controlled prime scrap streams.

SRG had previously planned to install a shredder at one of its existing sites. Instead, it chose to acquire an operating shredder platform, which can shorten the path to capacity and customer access.

The addition of Carolina Salvage also improves feedstock control. Auto parts yards can support shredder supply by bringing end-of-life vehicles and related material into the processing chain.

Consolidation Expands SRG’s Southeast Scrap Platform

SRG is also expanding through a separate merger with Morris Scrap Metal of Kings Mountain, North Carolina. Morris Scrap will join SRG as a new partner.

Once the NuCycle and Morris Scrap deals close, SRG will operate seven locations. The combined platform will have capacity of 300,000 gross tons per year of ferrous scrap and 150mn lb per year of non-ferrous scrap.

This scale gives SRG a stronger regional presence in the Carolinas and the broader southeastern US. It also improves collection density, logistics efficiency and customer coverage.

The deals continue SRG’s consolidation strategy after the company was formed last year from the merger of Carolina Metals Group and Spartan Recycling Group.

US scrap markets are becoming more competitive as steelmakers, aluminium producers and recyclers seek better feedstock quality and more reliable supply. Regional processors with shredding, sorting and non-ferrous recovery capacity are better positioned to serve that demand.

SRG’s expansion therefore reflects a wider industrial trend. Scrap recycling is moving from simple volume handling toward quality-controlled feedstock production for steel, aluminium and other metals supply chains.

The Metalnomist Commentary

SRG’s NuCycle deal shows that scrap processing value is shifting toward quality, not just tonnage. Low-copper shred and better non-ferrous recovery will matter more as US mills demand cleaner, more traceable recycled feedstock.

Yunnan Germanium Recycling Project Targets Feedstock Security for Strategic Metal Supply

Germanium Scrap

Yunnan Germanium recycling project plans will strengthen China’s largest germanium producer’s control over feedstock as demand from downstream high-end manufacturing remains strategically important. The company plans to invest 200.66mn yuan in a fully automated facility to process germanium-bearing waste slag.

The Yunnan Germanium recycling project will have capacity to process 150,000 t/yr of germanium-bearing waste slag. The company has not disclosed the construction timetable or launch date.

The Yunnan Germanium recycling project is designed to improve germanium resource utilisation and support raw material supply for downstream deep-processing products. This matters because germanium is a strategic minor metal used in defence, infrared optics, fibre optics, semiconductors and high-performance electronics.

The project also reflects a broader industry shift. Producers of critical and minor metals are increasingly trying to secure secondary feedstock as primary supply becomes more politically controlled and price volatility rises.

Recycling Capacity Reduces Dependence on External Raw Materials

Yunnan Germanium said partial reliance on externally sourced raw materials exposes it to germanium price volatility. Prices are influenced by global supply-demand conditions and demand from high-end manufacturing sectors.

The new recycling line should help reduce that exposure. By processing waste slag, the company can recover more germanium units from secondary material and support its downstream production chain.

This is strategically important because Yunnan Germanium already consumes significant germanium internally. In 2025, the company produced 29.7t of raw-material-grade germanium metal equivalent for external sales, excluding 68.95t used for internal consumption and third-party processing.

That internal use shows how the company is moving more material into higher-value products rather than selling all output into the merchant market. Recycling can strengthen that model by expanding available feedstock.

Yunnan Germanium also plans to diversify external suppliers of germanium-bearing waste slag. It will seek medium- to long-term supply agreements with quality provisions and emergency replenishment clauses.

The company also plans to build a raw material inventory reserve and a price-alert mechanism. It will adjust production and inventory strategies when germanium prices move by more than 10%.

These measures show a more disciplined approach to minor-metal procurement. In markets such as germanium, small disruptions can produce large price movements because supply is concentrated and liquidity is limited.

Export Controls Increase Strategic Value of Germanium Recovery

Germanium has become more strategically sensitive since China placed the metal under strict dual-use export controls in September 2023. China accounts for an estimated 60-70% of global germanium capacity.

This gives Chinese producers significant influence over global availability. It also makes domestic resource recovery more valuable, especially when export controls, defence demand and semiconductor-related applications increase policy attention.

Yunnan Germanium’s revenue rose to 1.07bn yuan in 2025 from 767mn yuan in 2024. Higher prices for key products, including raw-material-grade germanium, supported the increase despite lower external raw metal output.

The company’s recycling investment therefore supports both security and profitability. More stable feedstock access can improve operating flexibility when prices rise or external raw material supply tightens.

For downstream customers, the project may improve Yunnan Germanium’s ability to supply deeper-processed products. These include materials linked to optics, fibre communication, photovoltaics, infrared systems and compound semiconductors.

The broader market implication is clear. Germanium supply security will depend not only on mine output or primary production, but also on recycling, waste recovery, inventory control and long-term feedstock agreements.

The Metalnomist Commentary

Yunnan Germanium’s recycling plan shows that strategic minor metals are moving toward closed-loop resource control. In germanium, the advantage will belong to producers that can combine primary supply, secondary recovery and downstream processing under one feedstock strategy.

HyProMag Rare Earth Magnet Recycling Plant Opens in Germany

HyProMag

HyProMag rare earth magnet recycling has moved into commercial-scale production in Germany after the company opened a new recycling and manufacturing plant in Pforzheim. The facility strengthens Europe’s effort to build a circular rare earth magnet supply chain outside China.

HyProMag rare earth magnet recycling will focus on neodymium-iron-boron magnets and alloys. The plant will start with 100 t/yr of production capacity, with plans to increase output to 350 t/yr.

HyProMag rare earth magnet recycling is strategically important because NdFeB magnets are critical for electric vehicles, wind turbines, robotics, electronics, defence systems and industrial motors. Europe needs more local magnet capacity as China continues to dominate rare earth processing and magnet production.

The plant is permitted for production of up to 750 t/yr. HyProMag and parent company Mkango Resources are evaluating a scale-up to that level over the next three years.

HPMS Technology Targets Magnet Scrap Recovery

The Pforzheim plant will use Hydrogen Processing of Magnet Scrap technology, known as HPMS. The process was developed at the University of Birmingham and is designed to recover rare earth magnets from scrap streams more efficiently.

This technology matters because magnet recycling can reduce dependence on mined rare earth feedstock and conventional separation routes. It can also shorten supply chains by recovering material already embedded in end-of-life products and industrial scrap.

Recycled NdFeB magnets can support European manufacturers that need secure and traceable supply. Automotive, wind power, electronics and defence customers increasingly want material with clearer origin and lower supply-chain risk.

The initial 100 t/yr capacity is modest compared with China’s magnet industry. However, the strategic value lies in proving that commercial-scale recycling and magnet manufacturing can operate inside Europe.

The planned expansion to 350 t/yr, and potentially 750 t/yr, would make the site more meaningful for regional supply. It would also help Europe develop technical expertise in magnet scrap collection, processing, alloying and remanufacturing.

EU Critical Raw Materials Strategy Gains Recycling Base

HyProMag’s German plant fits directly into Europe’s critical raw materials strategy. The EU wants to reduce dependence on imported rare earth materials by supporting domestic mining, separation, recycling and manufacturing capacity.

Mkango Resources adds another layer to this strategy. The Canadian company owns a rare earths project in Malawi and a proposed rare earths separation plant in Poland.

Both projects have been selected as strategic projects under the EU Critical Raw Materials Act. This gives Mkango a broader position across upstream rare earth resources, midstream separation and downstream magnet recycling.

The German plant therefore is not just a standalone recycling facility. It could become part of a wider European rare earth value chain connecting African feedstock, European separation and recycled magnet production.

For Europe, this model is important. Mining alone will not solve rare earth dependence if separation, metal making, alloying and magnet manufacturing remain concentrated elsewhere.

HyProMag’s Pforzheim facility helps address one of the most difficult parts of the chain: turning rare earth scrap into usable magnet products. If the company scales successfully, it could support a more resilient European magnet ecosystem.

The Metalnomist Commentary

HyProMag’s plant shows that Europe’s rare earth strategy is moving from policy ambition into industrial execution. The key test will be whether recycling capacity can scale fast enough to supply real magnet demand in EVs, wind power and defence.

China Rare Earth Mining Regulations Tighten as Beijing Targets Illegal Supply

China Rare Earth Mining

China rare earth mining regulations are set to become more detailed as Beijing moves to strengthen control over mining, smelting, recycling and trading activity. The industry and information technology ministry has released a draft plan that would impose administrative penalties of up to 5mn yuan for violations.

China rare earth mining regulations already place rare earth production under a state quota system. The latest proposal would clarify penalty levels for companies that mine, smelt, process or trade rare earth materials outside approved channels.

China rare earth mining regulations are strategically important because China remains dominant across global rare earth mining, separation, metal production and magnet supply. Stronger enforcement could tighten unofficial supply and improve state oversight of material flows.

The draft plan released on 28 April sets clearer benchmarks for discretionary penalties. It is aimed at illegal mining, unauthorised smelting, quota breaches, unapproved feedstock use and failures in reporting or traceability.

Quota Enforcement Extends Across Mining, Smelting and Recycling

The draft plan targets enterprises that produce rare earth products beyond state-allocated mining quotas. Companies that conduct smelting without approved quotas would also face fines.

The rules would also cover comprehensive recycling firms that use rare earth ore as feedstock without authorisation. This is important because recycling and secondary processing can become loopholes if ore origin and flow reporting are weak.

Companies that buy, process or sell illegally produced rare earth ore or smelting products would also be penalised. This widens enforcement from producers to the broader trading and processing chain.

Firms that fail to comply with rare earth flow reporting and traceability requirements would face penalties. Companies that refuse or obstruct government supervision and inspection would also be targeted.

This shows that Beijing is not only regulating output volumes. It is building a more detailed control system around material origin, movement, processing rights and end-market access.

Rare earth traceability is becoming more important because these materials are strategic inputs for electric vehicles, wind turbines, robotics, defence systems, aerospace, electronics and high-end manufacturing.

The policy also strengthens China’s ability to monitor both primary and secondary supply. That matters as rare earth scrap recycling grows and as downstream magnet demand continues to increase.

State Control Reinforces China’s Strategic Rare Earth Position

China has tightened control over rare earth resources for more than a decade. The sector has been consolidated under several large state-owned groups to reduce illegal mining, improve environmental oversight and strengthen industrial coordination.

The State Council issued comprehensive rare earth regulations on 29 June 2024 covering mining, smelting, processing, recycling, trading and imports and exports. Those rules took effect on 1 October 2024, but did not define detailed penalty levels.

The latest draft fills that gap. It turns broad regulatory control into a more enforceable administrative system with clearer financial consequences.

China’s two major rare earth groups, Northern Rare Earth and China Rare Earth, now control domestic resources after China Rare Earth consolidated Xiamen Tungsten and Guangdong Rare Earth. Mining, smelting and separation quotas are allocated only to these groups and their affiliates.

Private firms and individuals are prohibited from processing rare earths. This gives Beijing a high level of control over domestic supply channels and industrial output.

From 2025, China also included imported rare earth ore in its quota system. This expanded oversight beyond domestic mining and gave the government more control over imported feedstock entering Chinese smelting and separation plants.

The move is strategically significant. China is treating rare earths as controlled industrial resources rather than ordinary commodities. Production discipline, traceability and export controls are now part of the same policy framework.

For global buyers, tighter regulation could reduce illegal or informal supply flows. It may also increase dependence on approved producers and make rare earth availability more closely tied to Chinese quota and export policy.

The Metalnomist Commentary

China’s rare earth enforcement push shows that Beijing wants full visibility over every stage of the value chain. For western buyers, the risk is clear: rare earth supply is becoming more regulated, more traceable and more politically controlled at the source.

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

Korea Zinc

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

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

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

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

Project Crucible Targets a Multi-Metal Refining Gap

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

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

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

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

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

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

FAST-41 Status Supports US Industrial Supply Security

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

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

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

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

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

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

The Metalnomist Commentary

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

Huahong Rare Earth Output Rises as NdFeB Scrap Recycling Supports Magnet Demand

Huahong Rare Earth

Huahong rare earth output increased sharply in 2025 as stronger demand from new energy vehicles, industrial automation and energy-saving motors lifted China’s rare earth recycling and magnet supply chain. Zhejiang Huahong Technology produced 8,794t of rare earth oxides during the year, up 71% from 2024.

Huahong rare earth output growth was also supported by tighter rare earth supply conditions in China. Stricter government controls on mining, processing and production capacity helped lift prices and encouraged stronger output from qualified oxide and magnet producers.

Huahong rare earth output is strategically important because the company recovers rare earth oxides from neodymium-iron-boron scrap. This recycling route gives China another feedstock source for magnet production at a time when primary supply, mining quotas and scrap availability remain sensitive.

Sales of rare earth oxides rose by 57% to 9,165t in 2025, while inventories increased by 7% to 359t. The figures show that downstream demand remained strong enough to absorb most of the company’s higher oxide output.

NdFeB Scrap Recycling Gains Value Under Tighter Rare Earth Supply

Huahong operates three production bases for NdFeB scrap recycling: Ji’an Xintai, Jishui Jincheng and Jiangxi Wanhong. Together, these sites have 12,000 t/yr of rare earth oxide capacity using neodymium-iron-boron scrap as feedstock.

This recycling capacity matters because magnet scrap is becoming a strategic rare earth resource. NdFeB magnets contain neodymium, praseodymium and, in higher-performance grades, heavy rare earths such as dysprosium and terbium.

Recovering these materials from scrap can reduce dependence on mined feedstock and improve supply efficiency. It also supports China’s circular rare earth strategy, especially as demand from electric vehicles, robotics and industrial motors rises.

Market participants said some oxide plants are facing shutdowns or output restrictions because their capacity exceeds government standards. Tighter mining quotas, limited spot availability and higher NdFeB scrap costs have also created pressure in the oxide market.

These conditions favour producers with approved capacity and secure scrap channels. Huahong’s stronger oxide output suggests that recycled feedstock is becoming more important in balancing China’s rare earth supply chain.

The company’s revenue rose by 41% to 7.83bn yuan in 2025, while profit increased by 157% to 204mn yuan. The profit growth shows how higher rare earth prices and stronger magnet demand improved margins across the business.

High-Performance Magnet Demand Drives Capacity Expansion

Huahong’s rare earth magnetic materials output rose by 27% to 15,791t in 2025. Sales increased by 19% to 14,035t, while inventories rose by 29% to 1,042t.

The growth reflects rising demand for high-performance magnets in new energy vehicles, industrial robots, automation systems and energy-saving motors. These sectors require magnets with stronger magnetic performance, thermal stability and reliability.

China produced 16.6mn new energy vehicles in 2025, up 29% from a year earlier. NEV sales rose by 28% to 16.5mn units, supporting demand for high-performance NdFeB magnets used in traction motors, pumps, sensors, braking systems and other vehicle components.

Huahong said high-performance NdFeB magnetic materials accounted for around 42% of China’s total magnet output last year. That share is likely to remain important as vehicles become more electrified, automated and motor-intensive.

Industrial robots also supported magnet demand. Global industrial robot output exceeded 600,000 units in 2025, with compound annual growth above 10%. Robotics growth increases demand for compact, efficient and high-torque motor systems.

Huahong plans to start trial operations at the first phase of its Baotou facility in May-June 2026. The first phase will add 10,000 t/yr of high-performance magnet capacity.

Once the first phase comes on line, Huahong’s total high-performance magnet capacity will reach 20,000 t/yr. This positions the company more deeply in the downstream magnet chain, not only in rare earth oxide recycling.

The expansion shows how China’s rare earth industry is moving toward integrated recycling, oxide production and magnet manufacturing. Companies with access to scrap feedstock and downstream magnet capacity may be better positioned as rare earth supply becomes more regulated.

The Metalnomist Commentary

Huahong’s growth shows that rare earth recycling is no longer a secondary supply story. As NEV and robotics demand rises, NdFeB scrap recovery is becoming a strategic feedstock route for China’s high-performance magnet industry.