Australia Backs Lithium-Ion Battery Surge in Western Australia

Canberra, Li battery 

Canberra’s CIS Program Expands Storage by 2.6GWh, Supporting Grid Reliability and Renewable Integration

Federal Government Underwrites Four Major Battery Projects in WA

Australia’s federal government has committed to underwriting four lithium-ion battery projects in Western Australia, adding 2.6GWh of storage capacity by late 2027. The investment comes through the Capacity Investment Scheme (CIS), a national program designed to stabilize revenue for renewable and storage developers over a 15-year period.

Although the government has not disclosed exact revenue floor levels for these projects, the financial backing provides long-term security, encouraging private investment in energy infrastructure.

PGS Energy and Neoen Lead Battery Expansion in WA

The largest of the new CIS-backed batteries is a 1.2GWh system in Marradong, developed by PGS Energy. Co-located with a solar farm, it will connect to the South West Interconnected System (SWIS) — the grid serving WA’s most populated regions.

Neoen, a French renewable energy company, will construct a 615MWh battery outside Perth. The company has already established a strong presence in Australia, operating the Collie Battery Energy Storage System since October 2024. That system alone manages 877MWh and is also connected to SWIS.

Two smaller battery systems, totaling 780MWh, will be built in WA’s rural areas. All four projects represent a regional leap forward in clean energy storage capabilities.

National Battery Strategy Accelerates Toward September Megaround

This announcement follows Canberra’s December 2024 decision to underwrite eight other batteries totaling 3.6GWh in three Australian states, excluding WA. The government plans another major round of funding in September 2025, targeting a cumulative 16GWh. So far, over 100 projects with 135GWh in capacity have applied.

Through the CIS, Australia is accelerating its transition toward a renewable-powered grid. Lithium-ion battery storage plays a pivotal role in managing variable solar and wind inputs while enhancing grid resilience.

Global Molybdenum Production Rose in 2025 as China Demand Strengthened

Molybdenum Production

Global molybdenum production increased in 2025 as mine supply and industrial consumption both expanded. Data from the International Molybdenum Association showed that global molybdenum production rose by 4% on the year to 672.6mn lb.

The increase was broadly matched by demand growth. Global molybdenum consumption also rose by 4% to 671.8mn lb, leaving the market close to balance over the full year.

Global molybdenum production growth was strongest in North America, while China remained the largest producer and consumer. The data showed a market supported by Chinese steel alloy demand, even as Europe, Japan and CIS markets weakened.

North America Led Supply Growth While China Remained Dominant

China remained the world’s largest molybdenum producer in 2025, lifting output by 1% to 302.1mn lb. South America, the second-largest producing region, was almost flat, with output rising by only 0.5% to 175.6mn lb.

North America delivered the strongest regional production increase. Output rose by 17% to 133.7mn lb, helping drive the global supply increase despite limited growth elsewhere.

Combined production from the rest of the world was flat at 61.3mn lb. Fourth-quarter global production reached 168.4mn lb, up 1% from a year earlier.

The supply data suggest that molybdenum remained available, but not heavily oversupplied. With annual production and consumption nearly equal, regional demand shifts became more important than headline global tonnage.

China Consumption Offset Weakness in Europe and Japan

China’s molybdenum consumption rose by 9% to around 337.8mn lb in 2025, reinforcing the country’s role as the main demand engine. The increase likely reflected stronger use in molybdenum-bearing steels, specialty alloys and industrial applications.

Europe moved in the opposite direction. Regional demand fell by 7% to 114.3mn lb, reflecting weaker industrial activity and pressure in steel-linked sectors.

Japan’s consumption declined by 3%, while CIS demand recorded the steepest fall at 12%. These declines showed that molybdenum demand remained uneven across major industrial regions.

Global consumption also softened late in the year. Fourth-quarter demand reached 166.4mn lb, down 2% from the previous quarter, suggesting some cooling after earlier strength.

The Metalnomist Commentary

The molybdenum market stayed balanced in 2025, but the regional split was clear. China’s demand strength supported global consumption, while weaker European and Japanese usage showed that molybdenum remains closely tied to industrial confidence and steel alloy demand.

Molybdenum Production and Consumption See Steady Growth in Q3: IMOA Report

Molybdenum

Global molybdenum production and usage witnessed moderate year-on-year growth during the third quarter of 2023, according to the International Molybdenum Association (IMOA). Both supply and demand were up, reflecting steady demand for molybdenum in industries such as stainless steel production, chemical processing, and high-strength alloys.

Global Production: China and South America Lead

Global molybdenum output reached 162.4 million pounds (mn lbs) in Q3 2023, marking a 0.3% increase year on year and a 2% rise compared to Q2.

• China maintained its dominant position as the world’s largest producer, contributing 74.5 mn lbs, up 1% year on year.

• South America, the second-largest producer, recorded a significant 7% increase in output, reaching 46.4 mn lbs.

• In contrast, North American production dropped by 5%, totaling 27.3 mn lbs, while output from other regions declined sharply by 19%, settling at 14.2 mn lbs.

This geographical disparity underscores China's continued dominance in molybdenum production, as well as South America's growing importance in the supply chain.

Consumption: Rising Demand Across Key Regions

Global molybdenum consumption rose to 164.1 mn lbs in Q3 2023, reflecting a 3% year-on-year increase and a 2% quarter-on-quarter rise.

• China accounted for the highest demand, consuming 80.5 mn lbs, an 8% increase compared to the previous year. Its consumption outpaced domestic production, indicating strong industrial demand for molybdenum.

• Europe ranked second with a modest 1% rise in demand, reaching 28.5 mn lbs.

• In the United States, consumption edged up by 1% to 15.9 mn lbs, while the CIS region reported a 1% decline to 5.7 mn lbs.

• Japanese demand fell by 4%, landing at 11 mn lbs, while other regions experienced a 6% drop, consuming 22.5 mn lbs.

The increase in demand in major economies like China and Europe highlights molybdenum’s critical role in sectors such as steel alloys and energy infrastructure. However, declines in regions like Japan and the CIS suggest uneven recovery in global industrial activity.

Outlook

With China leading both production and consumption, and South America’s output on the rise, molybdenum continues to be a key player in global industrial applications. As demand for advanced alloys and renewable energy technologies grows, the market for molybdenum is expected to remain resilient, though regional variations in production and usage may persist.

BaoTi Boosts Titanium Mill Products Output and Sales in 2024

BaoTi

Strong Demand from 3C, Aerospace, and Energy Sectors Drives Growth

China’s largest titanium producer, BaoTi, significantly increased its titanium mill products output in 2024. The company responded to higher demand from the computer, communication and consumer electronics (3C), aerospace, power, and shipbuilding sectors.

BaoTi produced 33,600 tons of titanium mill products last year, marking a 12% rise from 30,000 tons in 2023. The company plans further growth, targeting 43,000 tons of production by 2025.

Sales also grew steadily. BaoTi sold 31,300 tons of titanium mill products in 2024, a 6.5% increase from 29,400 tons the previous year.

Aerospace Leads Titanium Consumption Growth

China’s total consumption of titanium mill products reached 151,000 tons in 2024, up 1.6% compared to 2023. The aerospace sector posted the largest growth, consuming 32,193 tons, up by 2,816 tons from a year earlier. The power industry followed, with a 1,364-ton increase to 8,453 tons, driven by the new energy sector’s development.

Meanwhile, the 3C industry saw a 10% rise in titanium usage, reaching 11,000 tons in 2024. Domestic producers secured major orders from companies like Apple, Samsung, and Huawei, boosting demand.

The shipbuilding sector also expanded its titanium consumption by 1,191 tons, totaling 4,933 tons last year.

Global Titanium Output Rises Alongside China's Growth

China’s 32 major titanium manufacturers produced 172,000 tons of mill products in 2024, up 8.1% from 2023. Globally, titanium mill product output climbed by 8%, reaching 260,000 tons according to preliminary estimates.

Organizations such as CNIA-Ti, the CIS Titanium Association, and the Japan Titanium Association contributed to these global estimates. Stay tuned with The Metalnomist for more updates on global titanium market dynamics.

Assmang Cato Ridge FeMn smelter closure reshapes South Africa’s manganese alloys

US Brimstone

The Cato Ridge FeMn smelter closure marks Assmang’s permanent exit from ferro-manganese production. ARM is restructuring its manganese alloy portfolio after heavy losses. Assmang will shut the Cato Ridge Works following a Section 189 process. All employees will be retrenched by 31 August.

Restructuring details and asset sales

Assmang will sell Cato Ridge properties to Assore for R453mn. It will also sell its Sakura Ferroalloys stake to Assore. Once closed, Assmang will distribute R900mn to ARM. Therefore, ARM crystallizes value while exiting loss-making alloy exposure.

Market implications for South African manganese

The Cato Ridge FeMn smelter closure reflects South Africa’s escalating cost pressures. High power tariffs and logistics constraints erode alloy competitiveness. As a result, selling manganese ore increasingly outperforms alloy conversion. The closure leaves one remaining manganese alloy producer in South Africa.

Downstream users should prepare for tighter high-carbon FeMn availability from South Africa. However, global supply remains supported by Asia and the CIS. Contract buyers may seek diversified sources or renegotiate premiums. Meanwhile, the Cato Ridge FeMn smelter closure may shift trade flows.

The Metalnomist Commentary

This shutdown ends a chapter in South Africa’s alloy beneficiation and concentrates risk in one producer. Watch Eskom tariffs, rail reliability, and Asian alloy capacity for the next price signal. Offtake renegotiations and premium adjustments are likely through year-end.

China's Titanium Sponge Production to See Significant Expansion Amid Demand Growth

China's Titanium Sponge

China's titanium sponge production capacity is set to experience a major boost, potentially reaching between 300,000 and 500,000 tonnes per year over the next three to five years, according to An Zhongsheng, secretary-general of the China Nonferrous Metals Industry Association's titanium zirconium and hafnium branch (CNIA-Ti). This expansion is expected to be driven by increased demand across various sectors including aerospace, marine engineering, chemical production, computer, communication and consumer electronics (3C), daily necessities, and air conditioning, as reported at the China and CIS Titanium Industry Development Forum held in Xi'an, Shaanxi province.

Global civil aviation demand, recovering from the impacts of the Covid-19 pandemic, has put strain on aviation-grade titanium sponge supplies. An emphasized that while the aerospace industry is recovering, industrial sectors are propelling China's titanium market with consistent growth in recent years.

Currently, China's titanium sponge production capacity hovers around 300,000 tonnes per year. In the broader market, titanium's growing use in civilian products is anticipated to be a significant growth catalyst for the Chinese titanium industry.

Although global demand for titanium in the medical industry has surged, Chinese demand in this sector has been hampered by healthcare reforms promoting the use of cost-effective materials. Despite this, prices for titanium sponge are projected to remain relatively stable, enhancing its appeal across a range of applications. An Zhongsheng reassured industry stakeholders that China’s domestic supply of titanium sponge will meet future demands due to planned capacity expansions.

The anticipated rapid growth in titanium sponge production marks a transition for titanium from a rare metal to a more commonly used material, according to An. In the first half of this year, China produced 123,500 tonnes of titanium sponge, according to CNIA-Ti data.

Nevertheless, China continues to rely on imports for approximately 35-40% of its titanium ores and concentrates, reflecting its position in the global supply chain. Last year, global production of titanium ore and concentrate amounted to 8.75 million tonnes (t) of titanium dioxide equivalent, with China contributing 37%, followed by Mozambique (18%), South Africa (11%), and Canada (6%).

In the realm of titanium dioxide production, China led with 55% of global output in 2023, maintaining growth through domestic capacity expansions. Additionally, the world's titanium sponge production rose by 29% to 347,000 tonnes in 2023, with China’s output surging from a 25% share in 2022 to a dominant 63%. Russia, Japan, and Saudi Arabia also witnessed increases in their titanium sponge output, while Ukraine reported zero production.

For titanium mill products, global production in 2023 reached 248,000 tonnes, with China accounting for a commanding 64%, trailed by the United States (14%), Russia (13%), Japan (6%), and Europe (3%).

ICSG Copper Surplus Forecast Challenges Bullish Near-Term Market Narrative

Copper

ICSG copper surplus forecast has shifted the refined copper market outlook from deficit to surplus, challenging the more bullish tone around copper prices and strategic demand. The International Copper Study Group now expects a refined copper surplus of 96,000t in 2026 and 377,000t in 2027.

The revision marks a major change from ICSG’s October outlook, which had projected a 150,000t deficit for 2026. The new ICSG copper surplus forecast reflects weaker-than-expected demand growth and stronger secondary refined copper output.

The refined copper market is still exposed to mine disruption, lower ore grades and geopolitical risk. However, the latest forecast suggests that scrap-based production and slower consumption can offset some of the tightness from constrained mine supply.

ICSG expects global adjusted mine production to reach 23.559mn t in 2026 and 24.103mn t in 2027. Adjusted refined production is forecast at 28.76mn t in 2026 and 29.613mn t in 2027, while refined usage is expected at 28.664mn t and 29.236mn t.

Secondary Output and Slower Demand Ease Refined Copper Tightness

The biggest change in the ICSG copper surplus forecast comes from the refined side of the market. Stronger secondary output is expected to help balance constrained primary supply.

Refined copper production is forecast to grow by only 0.4% in 2026 before rising by 3% in 2027. Constrained concentrate availability will limit primary electrolytic growth this year, but solvent extraction-electrowinning and scrap-based output should provide support.

For 2027, ICSG expects primary refined copper production to rise by 2.3%, while secondary refined production increases by 5.7%. This gives scrap a larger role in balancing the market.

This matters because copper supply discussions often focus heavily on mines. But refined copper availability also depends on scrap collection, processing economics, smelter operations, SX-EW output and regional refined production.

Demand growth has also been revised lower. ICSG now expects refined usage to increase by 1.6% in 2026, down from its previous 2.1% forecast.

The downgrade reflects uncertainty from the Middle East conflict and disrupted trade flows. Chinese refined copper usage is expected to rise by 1.9% in 2026, while demand outside China grows by 1.3%.

Global refined usage is forecast to rise by 2% in 2027. Asia will remain the main growth engine, while EU and Japanese consumption are expected to stay subdued.

Asia outside Asean and CIS states will remain by far the largest refined copper-consuming region. Usage is projected at 20.469mn t in 2026 and 20.907mn t in 2027.

Mine Supply Risks Still Support Copper’s Strategic Value

ICSG’s near-term surplus forecast does not remove copper’s longer-term supply risk. The group revised down its 2026 mine production growth forecast to 1.6% from 2.3%, citing weaker growth in the Democratic Republic of Congo, Chile and Indonesia.

Output at Grasberg in Indonesia and Kamoa in the DRC remains constrained after major incidents in 2025. These disruptions show how quickly copper mine supply can tighten when large assets underperform.

Mine production growth is expected to recover to 2.3% in 2027. ICSG expects support from Chile, Zambia, Indonesia and the DRC, along with ramp-ups at Oyu Tolgoi in Mongolia, Malmyz in Russia, Julong in China and Almalyk in Uzbekistan.

Still, mine supply remains structurally difficult. Declining ore grades, slow permitting, higher capital intensity and longer project timelines continue to limit how quickly the industry can respond to higher prices.

Copper demand also retains strong strategic drivers. Energy transition investment, grid expansion, urbanisation, digitalisation, data centres and new semi-finished product capacity should continue to support long-term consumption.

This creates a split market narrative. On paper, refined copper may move into surplus in 2026 and 2027. Strategically, copper remains central to electrification, artificial intelligence infrastructure, manufacturing and industrial policy.

ICSG also warned that actual balances could diverge from forecasts. Its Chinese apparent demand calculation excludes changes in unreported stocks, including State Reserve Bureau, producer, consumer, trader and bonded inventories.

That caveat is important. Copper inventories can move through hidden channels, making the refined market appear looser or tighter than reported balances suggest.

The ICSG copper surplus forecast therefore does not end the bullish long-term copper case. It does, however, caution against assuming immediate refined scarcity when secondary supply is rising and demand outside China remains soft.

The Metalnomist Commentary

The ICSG copper surplus forecast shows that copper’s strategic story and near-term balance sheet can move in different directions. Data centres, grids and electrification support the long-term thesis, but scrap growth and weaker demand may keep the refined market looser than bullish headlines suggest.