Wogen–EV Resources Antimony Deal Secures Offtake and Early-Stage Funding

EV Resources mine

The Wogen–EV Resources antimony deal advances Los Lirios in Mexico with secured debt. The Wogen–EV Resources antimony deal grants exclusive offtake rights, subject to studies. Therefore, the Wogen–EV Resources antimony deal de-risks early development and aligns financing with marketing.

Structured funding and conditional offtake accelerate timelines

Wogen and partner Xcelsior will arrange $2–3mn in secured debt. The facility funds scoping, site work, and a 100 t/d pilot plant. In exchange, Wogen receives exclusive offtake, pending a positive internal study. EV Resources will process Los Lirios ore and third-party feed. As a result, the project gains cash flow optionality before full-scale build.

Project scope, processing path, and strategic precedents

Los Lirios spans 1,552 hectares with historic pits and workings. The site lacks processing infrastructure after selective high-grade mining. The pilot emphasizes gravity recovery for antimony concentrates. Downstream processing remains a stated goal with Wogen support. Wogen’s Hillgrove precedent shows its offtake-plus-loan model. That 2024 deal provided $4mn for seven years of offtake.

The Metalnomist Commentary

Early debt tied to offtake can bridge juniors to feasibility. Execution now turns on pilot recoveries, permitting, and stable third-party ore. Watch grade control, arsenic levels, and logistics from Oaxaca to export terminals.

Honda Ontario EV Plan Suspended Amid Slower Market Growth Projections

Honda EV

Honda suspended its ambitious C$15 billion ($10.7 billion) Honda Ontario EV plan to build a comprehensive electric vehicle value chain in Canada. Chief Executive Toshihiro Mibe announced the two-year delay during the company's first-quarter earnings presentation, citing slower-than-expected EV market growth. The Honda Ontario EV plan postponement represents a significant setback for Canada's battery materials supply chain development and critical mineral processing ambitions.

Comprehensive Battery Supply Chain Project Faces Market Reality

The Honda Ontario EV plan encompassed a complete electric vehicle manufacturing ecosystem in Alliston, Ontario, including an EV assembly plant and standalone battery manufacturing facility. Honda partnered with Posco Future M to develop cathode and precursor materials facilities while collaborating with Asahi Kasei on separator plant construction. Meanwhile, this integrated approach aimed to reduce supply chain dependencies while supporting Honda's goal of 100% battery and fuel cell EV sales by 2040.

The comprehensive nature of the Honda Ontario EV plan positioned Canada as a strategic hub for North American electric vehicle production. Honda's investment would have created substantial demand for Canadian critical minerals, particularly lithium, nickel, and cobalt for battery cathode materials. However, slower market adoption rates have forced automakers to reassess their aggressive electrification timelines and associated capital investments.

Critical Mineral Processing Ambitions Face Automotive Headwinds

Canada's strategy to capture value from its abundant critical mineral resources through downstream processing suffers a major blow from the Honda Ontario EV plan suspension. The project represented a key opportunity to establish domestic battery materials manufacturing capabilities using Canadian lithium, nickel, and graphite resources. As a result, the delay undermines government efforts to build integrated critical mineral supply chains within North America.

Posco Future M's planned cathode and precursor facilities would have processed Canadian-sourced critical minerals into high-value battery materials for Honda's EV production. The partnership promised technology transfer and manufacturing expertise to establish Canada's position in global battery supply chains. Therefore, the Honda Ontario EV plan postponement reduces near-term demand prospects for Canadian critical mineral producers seeking domestic processing partnerships.

The two-year delay reflects broader challenges facing automaker electrification strategies as consumer adoption lags initial projections. Honda joins other manufacturers reassessing EV investment timelines amid market uncertainty and profitability concerns. Consequently, critical mineral demand growth may moderate as automakers adjust production capacity plans to match actual market conditions.

The Metalnomist Commentary

Honda's decision to pause its massive Ontario investment reflects the gap between aggressive EV transition rhetoric and market reality, highlighting risks for critical mineral producers banking on rapid battery demand growth. This setback underscores the importance of diversified demand strategies for Canadian critical mineral projects, as automotive electrification timelines prove more volatile than anticipated across the industry.

India EV Funding Gap Threatens 2030 Electrification Targets

India EV, TOYOTA

India EV funding remains far behind the level needed to meet the country’s 2030 electrification targets. The Institute for Energy Economics and Financial Analysis estimates that India invested $25.6bn across EV manufacturing, public subsidies, and charging infrastructure between 2020 and 2025, equal to only 18pc of required capital.

India now needs to mobilise another $117.82bn by 2030. That means around 82pc of the total investment requirement remains unfunded. The scale of the India EV funding gap is significant because the country’s targets require EVs to reach 30pc of private car sales, 70pc of commercial vehicle sales, 40pc of buses, and 80pc of two- and three-wheelers by 2030.

The funding shortfall has direct implications for battery materials, grid investment, charging equipment, automotive supply chains, and domestic manufacturing competitiveness. Without faster capital deployment, India may struggle to turn policy ambition into large-scale electrification.

EV Manufacturing Investment Remains Uneven Across Segments

India’s EV manufacturing investment has been concentrated heavily in electric three-wheelers. This segment represented around 78pc of total OEM investment between 2020 and 2025, reflecting early commercial adoption and a highly fragmented producer base.

IEEFA noted that more than 800 electric three-wheeler OEMs are registered on the government’s Vahan dashboard. This fragmentation has led to duplicate fixed investments across many small and mid-sized firms, which may reduce capital efficiency as the market matures.

Other EV segments have attracted much less manufacturing capital. Electric two-wheelers accounted for around 8pc of total OEM investment, electric four-wheelers also represented about 8pc, and electric buses contributed roughly 6pc. Electric four-wheeler investment remained limited because of high upfront costs, fewer models, and slower adoption.

OEM investment also declined from $4.3bn in 2020 to $2.1bn in 2025. This slowdown reflects earlier capacity expansion and a later shift toward better use of existing resources. However, it also shows that India EV funding momentum must strengthen if the country wants to meet its 2030 targets.

Charging and Financing Bottlenecks Could Slow EV Adoption

Public charging infrastructure has expanded quickly but remains underfunded. India’s public charger count rose from 5,151 in 2020 to 39,485 in 2025. However, estimated investment reached only around $230mn including installation and set-up costs, equal to just 9.6pc of the $2.36bn needed by 2030.

This charging gap creates a major adoption barrier. India’s charger-to-EV ratio remains well behind China, the EU, and the US. Without faster charging deployment, EV adoption could remain concentrated in certain vehicle segments and urban markets rather than scaling across the wider transport system.

High financing costs add another structural constraint. Commercial EV borrowers face interest rates of 15-33pc, which can weaken the total cost-of-ownership advantage that normally supports EV adoption. This is especially important for buses, delivery fleets, commercial vehicles, and small operators.

IEEFA proposes an integrated financing platform using partial credit guarantees, residual value protection, battery-as-a-service models, and co-lending structures. Such mechanisms could reduce lender risk and lower borrowing costs, helping India move from subsidy-led growth toward market-led EV scaling.

The Metalnomist Commentary

India’s EV challenge is no longer only about demand creation; it is about capital architecture. The country needs financing models, charging investment, and supply-chain depth that can support electrification at industrial scale.

Latam EV Market Set for Massive 2025 Expansion Driven by Chinese Automakers

Latam EV Market

The Latam EV market will experience unprecedented growth in 2025 as electric vehicle sales in Latin America and emerging markets double to 1 million units. According to the International Energy Agency (IEA), Chinese automakers drive this expansion by offering significantly cheaper models than traditional Western brands. The Latam EV market surge represents a critical shift in global automotive demand that will substantially increase battery materials consumption across the region.

Chinese Battery Technology Advantages Fuel Market Penetration

Chinese automakers captured 75% of all EV sales in emerging economies by leveraging superior cost advantages in battery pack manufacturing. China produces cheaper battery packs due to intense competition, enhanced manufacturing efficiency, supply chain integration, and access to skilled workforces. Meanwhile, Chinese battery pack prices fell 30% compared to only 10-15% decreases in Europe and the United States.

BYD and GWM electric vehicles now compete directly with conventional petrol cars in key Latam EV market segments. In Brazil, BYD's largest market outside China, the price gap between battery electric cars and conventional vehicles narrowed to just 25%. Therefore, Chinese manufacturers achieve price parity with internal combustion engines in Thailand and approach competitive pricing across Latin America.

Regional Manufacturing Expansion Promises Further Cost Reductions

Local production capacity remains minimal, with only 5% of EVs sold in emerging markets produced regionally currently. GWM and BYD plan to establish factories in Latin America by late 2026, potentially driving down costs further. As a result, these manufacturing facilities will bypass import tariffs while reducing transportation costs for the expanding Latam EV market.

Regional battery material demand will surge as local EV production scales rapidly across Latin America. Lithium, cobalt, nickel, and other critical minerals consumption will increase substantially to support growing battery manufacturing requirements. However, Latin America possesses significant lithium reserves, particularly in Argentina, Bolivia, and Chile, creating opportunities for vertical supply chain integration.

Global EV sales exceeded 17 million units in 2024, capturing 20% market share worldwide. The IEA projects 2025 sales will surpass 20 million units, representing over 25% of global automotive sales. Consequently, the Latam EV market expansion contributes meaningfully to this accelerating global electrification trend.

The Metalnomist Commentary

The Latam EV market boom signals a fundamental shift in global battery materials demand geography, with Chinese manufacturers leveraging cost advantages to penetrate price-sensitive emerging markets. This expansion will create substantial new demand for lithium, cobalt, and nickel while potentially enabling Latin America to capture more value from its abundant critical mineral resources through local processing and battery manufacturing integration.

China’s Lithium Market Sees Major Mining Rights Acquisitions Amid EV Boom

Inner Mongolia Dazhong Mining

The lithium mining landscape in China is witnessing significant acquisitions as companies like Sichuan Natural Resources Investment and Canmax secure key mining and exploration rights, positioning themselves strategically amid the electric vehicle (EV) industry’s surge. These developments reflect a broader optimism regarding the long-term value of lithium, a critical component in EV batteries.

Sichuan Natural Resources Investment Expands with Mackitan Mine

On December 3, Sichuan Natural Resources Investment, a domestic mining entity, successfully bid approximately Yn2.46 billion for the exploration rights to the Mackitan lithium mine located in Ganzi prefecture, Sichuan province. This site boasts an impressive 885,500 tonnes of lithium oxide resources with an average grade of 1.5 percent, marking a significant enhancement in the firm’s asset base.

Canmax Technologies Enters the Lithium Race

Parallel to Sichuan’s acquisition, Canmax Technologies, known for its electro-static discharge and cleanroom contamination control solutions, announced on December 2 that it had acquired the mining rights for a ceramic soil lithium-containing mine in Jiangxi province for Yn2.51 billion. Spanning across Fengxin and Yifeng counties, this mine is expected to have a productive lifespan of 22.9 years.

Recent Trends and Future Outlook

The lithium market reached record price levels in November due to escalating demand propelled by the burgeoning EV sector. However, rapid production expansions have slightly outstripped the pace of demand growth, leading to concerns about potential oversupply. Nonetheless, strategic mine acquisitions continue as firms anticipate stable long-term demand.

Volkswagen Secures Long-Term Lithium Supply with Patriot Battery Metals

Patriot Battery Metals

Volkswagen, through its battery subsidiary PowerCo, has sealed a decade-long offtake agreement with Patriot Battery Metals, a Canadian lithium explorer, to source 100,000 metric tonnes per year (t/yr) of spodumene concentrate (SC). This deal is a strategic move to secure critical lithium resources as Volkswagen continues to expand its electric vehicle (EV) and battery production globally.

Patriot’s Shaakichiuwaanaan Asset Powers the Deal

The spodumene concentrate will be supplied from Patriot's Shaakichiuwaanaan Mineral Resources in Quebec, Canada. Notably, this resource is the largest lithium pegmatite deposit in the Americas and the eighth-largest globally, making it a vital supply chain asset for lithium-ion battery production. The concentrate will have a target grade of 5.5% lithium oxide, ideal for battery applications.

PowerCo plans to use the raw materials to fuel its gigafactories in Europe and North America, including its St. Thomas, Canada facility, which is set to be its largest cell factory, boasting a production capacity of up to 90 GWh per year.

Volkswagen Invests in Patriot and Future Lithium Conversion

As part of the partnership, Volkswagen has invested $48 million for a 9.9% stake in Patriot Battery Metals, signaling its commitment to long-term lithium sourcing. The deal also hints at future collaborations, including the potential development of a lithium conversion facility to ensure supply chain resilience and further vertical integration.

Volkswagen’s EV Push Faces Challenges

Volkswagen has delivered 506,500 battery electric vehicles (BEVs) globally from January to September 2024, a 4.7% decline year on year. Despite overall growth in North America, BEV deliveries in the US fell by 26%, reflecting competitive challenges in the region.

In Europe, Volkswagen remains dominant with a 19% market share in the BEV segment, reaffirming its stronghold. To bolster its EV ecosystem, the German automaker also formed a $5.8 billion joint venture with Rivian in November 2024 to advance software and electronics architectures for scalable EV platforms.

Strategic Significance

This agreement underscores the importance of securing stable, long-term access to critical minerals like lithium as automakers ramp up EV production. It also highlights Canada’s growing role as a key player in the global battery supply chain, thanks to its abundant natural resources and strategic partnerships with major manufacturers like Volkswagen.

Australian Lithium Companies Maintain Optimism Amid Low Prices, Eye Long-Term Growth

Despite lithium prices hitting a five-year low, Australian lithium mining companies remain optimistic about the future, expecting a price recovery later in the decade that will sustain their operations. Industry leaders expressed confidence at the Diggers and Dealers mining forum in Kalgoorlie, Western Australia, citing the cyclical nature of the market and the long-term demand driven by the electric vehicle (EV) industry.

Dale Henderson, CEO of Pilbara Minerals, likened the current market situation to "a bright blue sky with a bit of cloud cover," noting that price volatility is expected in rapidly growing industries like lithium. "It's no surprise really, given that lows always follow periods of highs," he said, emphasizing the industry's resilience.

The lithium market’s connection to the EV industry, which has experienced explosive growth in recent years, is a key factor in the optimism. Henderson highlighted that the combination of government stimulus, technological advancements, and varying rates of consumer adoption is driving the industry's evolution. He cautioned, however, that the road ahead would not be a "straight line" and that businesses must prepare for continued volatility.

Despite recent industry cutbacks, most Australian lithium companies are steadfast in their long-term strategies, confident that demand for lithium will continue to grow. Core Lithium, for instance, suspended operations at its Grants open pit mine in January, awaiting a market rebound. CEO Paul Brown mentioned that a price around $18/kg LCE is necessary to support the industry.

Tony Ottaviano, CEO of Liontown Resources, echoed this sentiment, stressing the importance of maintaining a long-term perspective. "When you see a 60% price reduction in six months, there is only one response a company can do and it is blunt. We need to hold our heads while others are losing theirs and push through," he said. Ottaviano pointed out that while EV adoption may be slowing in the US and Europe, it is expected to pick up as new models become competitive with internal combustion engine vehicles. In China, EV prices are already on par with traditional vehicles.

Looking forward, industry experts underscored the need for new investment in lithium to meet the anticipated surge in demand from EV manufacturing. However, current low prices are hindering the flow of necessary capital. Ivan Vella, CEO of IGO, which owns 49% of the world’s largest lithium mine, Greenbushes, highlighted the challenge of financing the development of 80 new lithium projects by 2035, each requiring substantial investment.

The optimism expressed by Australian lithium companies underscores their belief in the sector's long-term potential, despite current market challenges. As the EV market matures and demand for lithium grows, the industry is preparing to navigate through the volatility and capitalize on future opportunities.

Lithium Ionic Brazil Lithium Resources Grow by Nearly One-Third in Latest Estimate

Lithium Ionic Mining

Canadian miner upgrades Bandeira project to 901,000 tonnes LCE as Brazil’s Lithium Valley gains momentum

Feasibility study update and 2026 production plan reaffirm long-term potential of Minas Gerais spodumene assets

Lithium Ionic Brazil lithium resources have grown significantly, with the Canadian company increasing its estimate for the Bandeira project by nearly 33%. The project now holds 27.2 million tonnes of lithium oxide, equivalent to 901,000 tonnes of lithium carbonate equivalent (LCE), according to the company’s latest technical assessment.

Successive resource upgrades reinforce investor confidence in Brazil’s Lithium Valley

This marks the third resource upgrade in just 13 months, following 15% and 30% increases in April and May 2024. Lithium Ionic also announced the potential to add another 615,432 tonnes of inferred LCE, indicating untapped upside across its broader lithium footprint. The updated resource base will be included in a revised feasibility study due in the second half of 2025.

Located in Minas Gerais, the Bandeira project lies at the heart of Brazil’s emerging Lithium Valley, a rapidly developing spodumene hub attracting global mining attention. Lithium Ionic plans to produce its first lithium concentrate batch in the second half of 2026, positioning itself as a key supplier to the EV and battery storage markets.

Regional consolidation includes Baixa Grande and Itinga project areas

Beyond Bandeira, Lithium Ionic holds 42,000 acres of mineral rights, including the nearby Baixa Grande and Itinga projects. These assets provide additional scalability for long-term operations, giving the company a strong strategic position in Latin America’s lithium supply chain. The expansion of Lithium Ionic Brazil lithium resources supports both near-term production targets and future growth potential.

The Metalnomist Commentary

Lithium Ionic’s resource expansion confirms Brazil’s strategic role in global lithium supply. As production timelines align with downstream EV demand, Latin America continues to draw investor interest as a sustainable, diversified alternative to Asia-dominated supply chains.

Japan US Critical Minerals Cooperation Expands Into Deep-Sea Resources and Recycling

US, Japan critical minerals Cooperation

Japan US critical minerals cooperation is moving into a broader strategic phase as both countries seek more resilient supply chains for rare earths, copper, nickel, and battery materials. Japanese prime minister Sanae Takaichi and US president Donald Trump agreed to expand collaboration during a summit in Washington.

Japan US critical minerals cooperation now includes an initial agreement on deep-sea mineral development. The agreement covers resources such as rare earth-rich mud around Minamitorishima and manganese nodules, which could become alternative supply sources outside conventional land-based mining.

Japan US critical minerals cooperation also reflects a shared concern over China’s dominant position in rare earth separation and refining. Both governments are trying to combine Japanese technology, US regulatory frameworks, and private-sector investment to accelerate non-China supply options.

Deep-Sea Minerals Add a New Layer to Rare Earth Security

Deep-sea mineral development could become a strategic supply route for rare earths and other critical minerals. Japan has long studied rare earth-rich mud near Minamitorishima, while manganese nodules offer potential exposure to metals used in batteries, alloys, and advanced industrial systems.

The new working group between Japan’s trade and industry ministry Meti and the US Department of Commerce will focus on technical cooperation. This structure suggests both governments want to move beyond political statements and build practical project-level collaboration.

The industrial meaning is clear. Rare earth supply security depends not only on mining rights, but also on separation technology, environmental standards, financing, and downstream demand from magnets, EV motors, defense systems, and renewable energy equipment.

Recycling, Copper, and Nickel Projects Broaden the Supply Chain Agenda

The summit also highlighted private-sector initiatives that extend beyond deep-sea resources. Mitsubishi Materials is considering cooperation with ReElement Technologies on rare earth recycling in Indiana, targeting recovery from used magnets and other secondary sources.

This recycling angle is important because magnet scrap can become a strategic rare earth feedstock. It also reduces dependence on primary mining and supports a circular supply model for high-value elements such as neodymium, praseodymium, dysprosium, and terbium.

Mitsubishi is also advancing a feasibility study for the Copper World project in Arizona, where it holds a 30pc stake alongside Hudbay Minerals. The project aims to produce around 100,000 tonnes per year of copper from around 2029, strengthening North American copper supply for electrification, grids, and manufacturing.

Sumitomo Metal Mining’s plan to expand nickel matte production at its Hyuga smelter adds another battery materials dimension. Supported by Meti subsidies under Japan’s economic security framework, the project links Japanese refining capacity with battery material security for both Japan and the US.

The Metalnomist Commentary

The Japan-US agenda shows that critical minerals cooperation is no longer limited to mining deals. The real strategy is to connect deep-sea resources, recycling, copper projects, nickel refining, and government-backed industrial policy into one supply chain security framework.

Hanrui Indonesian Nickel Smelter Faces Delays but Signals Long-Term EV Ambitions

Indonesian Nickel Smelter

Chinese cobalt major Hanrui has delayed the launch of its Indonesian nickel smelter, citing permit extensions and geological challenges. The Hanrui Indonesian nickel smelter project, located in Central Sulawesi, will now commence production in March 2026, ten months later than planned.

Construction Shifts Toward Nickel Matte Output

Hanrui Nickel Indonesia, a subsidiary of Nanjing Hanrui, will operate the facility within Huabao Industrial Park. While the project originally targeted mixed hydroxide precipitate (MHP), the company has shifted focus to nickel matte production. The plant will produce 20,000 tonnes per year of nickel metal equivalent using oxygen-enriched continuous blowing technology. Construction is expected to take 15 months, though a detailed timeline is still pending.

This pivot reflects Hanrui’s strategic move to meet rising demand for nickel matte in the global electric vehicle (EV) battery market. Indonesia, with its abundant laterite resources, remains central to Chinese companies’ raw material supply strategies.

Fiscal Incentives and Long-Term Strategic Goals

The Indonesian government has granted Hanrui Nickel Indonesia a seven-year corporate income tax exemption. Following that, the project will receive a 50% income tax reduction for an additional two years. These tax incentives are part of Jakarta’s broader effort to localize value-added processing and attract foreign investment into its nickel sector.

Despite the delay, Hanrui views the Indonesian nickel smelter as a cornerstone in its ambition to deepen involvement in the EV battery supply chain. The project is expected to enhance China’s influence in critical battery materials and align with global trends in securing upstream supply.

The Metalnomist Commentary

Although delayed, the Hanrui Indonesian nickel smelter illustrates China’s enduring strategy to dominate EV raw materials. With tax breaks and technological shifts toward nickel matte, Hanrui is positioning itself for long-term relevance in the global battery ecosystem.

Zabuye lithium project marks major step in China’s brine supply expansion

Zabuye lithium Salt lake

The Zabuye lithium project in Tibet has entered its second phase, expanding China’s brine-based lithium capacity. The Zabuye lithium project now adds sizeable battery-grade output at a time when the global lithium market is tipping into surplus. As a result, the Zabuye lithium project strengthens China’s ability to influence pricing and security of supply across the EV battery chain.

Phase-two expansion lifts Tibet’s brine lithium capacity

China’s Tibet-based producer has started up phase two at Zabuye with 9,600 t/yr of battery-grade lithium carbonate. The new phase also includes 2,400 t/yr of industrial-grade lithium carbonate, adding flexibility across downstream chemical and industrial customers. Commissioning of the second-phase lines began in late 2023, but full launch slipped from a planned June start into late September. However, the first phase, focused on 7,000 t/yr of lithium concentrate, has remained operational and continues to support the overall project. Zabuye draws on one of the world’s largest salt-lake resources, with proven reserves of around 1.84mn t of lithium in brine. This makes it Asia’s largest lithium brine lake and the third-largest globally, underlining its strategic relevance for long-term supply.

Zabuye lithium project scales into a looser global market

The timing of the Zabuye lithium project expansion coincides with strong growth in global brine output. Market forecasts indicate that global lithium brine production will rise by about 24pc in 2025 to above 370,000t LCE. At the same time, total lithium feedstock supply is projected to reach about 1.6mn t LCE in 2025. Meanwhile, demand is expected to come in near 1.5mn t LCE, implying a surplus of roughly 100,000t. Therefore, new brine tonnes from Zabuye will feed into an already better-supplied market, potentially reinforcing price pressure if demand underperforms. Yet high-quality, low-cost brine projects retain strategic importance, especially for integrated Chinese players.

Strategic shareholders reinforce China’s battery value chain

Zabuye’s ownership underscores its role in China’s EV and battery strategy. Major Chinese battery and lithium companies hold significant stakes in the project, tightening the link between upstream brine resources and downstream cathode and cell manufacturing. This integrated structure allows key players to secure battery-grade lithium carbonate volumes under long-term arrangements. In addition, the project’s location in Tibet diversifies China’s domestic resource base beyond traditional hard-rock and other brine hubs. However, higher-altitude operations and logistics can still pose cost and reliability challenges compared with coastal or overseas assets. Even so, the project is positioned as a core pillar in China’s wider lithium industrial ecosystem.

The Metalnomist Commentary

Zabuye’s phase-two launch shows how Chinese brine projects are still scaling even as the market moves into surplus. For global buyers, the combination of growing Chinese brine capacity and integrated ownership by major EV and lithium players suggests continued competitive pressure on higher-cost producers. The medium-term question is how long marginal assets outside China can remain viable if brine-led oversupply persists.

Vulcan Energy Resources Starts Lithium Hydroxide Production at German Demonstration Plant

Vulcan Energy Resources

Lithium and geothermal group Vulcan Energy Resources has begun production of lithium hydroxide at its demonstration plant in Frankfurt, aiming for commercial production by 2027. This represents a two-year delay from its original timeline but positions Vulcan as a leader in carbon-neutral lithium extraction and processing.

From Pilot Production to Commercial Goals

Vulcan first started producing lithium chloride at its pilot extraction plant on April 8, 2024, and on December 21, initiated lithium hydroxide production using lithium chloride as feedstock. The demonstration plant has a capacity of 55 tonnes per year (t/yr), sufficient for regulatory compliance across at least three of the four required stages before commercial-scale operations commence.

The company plans to supply lithium hydroxide to key partners, including LG Energy Solutions, Umicore, Stellantis, Renault, and Volkswagen. As part of Phase 1 production, Vulcan aims to deliver 24,000 t/yr of lithium carbonate equivalent (LCE), enough for around 480,000 electric vehicles (EVs) annually, assuming an average EV battery capacity of 50kWh.

Low-Carbon Lithium Production with Geothermal Power

Vulcan employs direct lithium extraction (DLE) technology at its plant in the Upper Rhine Valley, achieving up to 95% efficiency — far higher than the 40-60% typical of traditional methods. By using geothermal brine to power extraction, the company eliminates fossil fuels from its processes, claiming the lowest carbon footprint in the global lithium production industry.

According to Cris Moreno, Vulcan’s CEO, the integrated upstream and downstream operations will produce lithium hydroxide without reliance on fossil fuels. "This allows us to provide affordable baseload heat and power, offering a sustainable and economically viable alternative," Moreno stated.

Challenges and Opportunities

Although Vulcan has twice delayed its commercial production schedule, its innovative approach to lithium extraction aligns with growing demand for sustainable materials in the EV market. Vulcan plans to create at least 1,300 direct and 1,500 indirect jobs upon reaching Phase 1 capacity.

However, the company has yet to complete a definitive feasibility study for Phase 2, which will further expand production and meet growing demand from global automakers and battery manufacturers.

Patriot Expands Quebec Lithium Resource, Cementing Largest Pegmatite Deposit in the Americas

Patriot Battery Metals

Patriot's Shaakichiuwaanaan Project Emerges as a Strategic Lithium Asset

Patriot Battery Metals has increased indicated resources by 30% at its Quebec-based Shaakichiuwaanaan Lithium Project, reinforcing its position as the largest lithium pegmatite resource in the Americas. This development positions Canada as a growing heavyweight in the global battery metals supply chain.

The updated resource now totals 108 million metric tonnes, grading 1.4% lithium oxide. This equates to 3.75 million tonnes of lithium carbonate equivalent (LCE) — a critical input for electric vehicle (EV) batteries and energy storage systems. Located in the mineral-rich Eeyou Istchee James Bay region, the deposit is also the eighth largest lithium pegmatite resource globally, according to Patriot.

Strategic Metals Strengthen Project Value Beyond Lithium

In addition to lithium, the study revealed significant concentrations of tantalum, cesium, and gallium. These strategic metals play essential roles in electronics, semiconductors, and aerospace alloys. Their presence enhances the project’s economic potential and aligns with North America’s broader push for critical mineral independence.

Patriot’s advancement comes at a time when global supply chains are recalibrating around domestic resources. With China and other suppliers tightening controls on strategic materials, Western governments and manufacturers are increasingly turning to Canadian and U.S. projects for secure sourcing.

Feasibility Study Targeted for 2025

Patriot Battery Metals plans to release a maiden ore reserve and feasibility study by Q3 2025, based on the latest resource estimates. This timeline reflects growing investor interest in North American lithium development amid surging demand from the EV and energy sectors.

Meanwhile, the project's location in Quebec offers distinct advantages, including renewable hydroelectric power, government support, and proximity to U.S. manufacturing hubs.

The Metalnomist Commentary

Patriot’s 30% increase in lithium resources signals a strong step forward in North America’s bid for battery metal self-reliance. With a diversified mix of strategic metals and a globally ranked resource base, the Shaakichiuwaanaan Project stands poised to become a cornerstone in the Western critical minerals ecosystem.

China and Turkey Forge Rare Earth Partnership to Meet Growing Global Demand

China Mining 2024

China and Turkey have taken a significant step towards enhancing their cooperation in the rare earth sector, an industry critical to the global energy transition and high-tech manufacturing. Turkish Energy and Natural Resources Minister Alparslan Bayraktar announced on the social media platform X that the two nations signed a preliminary agreement to jointly develop rare earth resources. This move underscores the growing importance of rare earth elements (REEs) in industries such as electric vehicles (EVs) and renewable energy.

Turkey’s Rare Earth Potential

In July 2022, Turkey revealed the discovery of what it claims to be the world’s second-largest rare earth deposit in Eskisehir province, estimated at 694 million tons. This vast resource positions Turkey as a potential key player in the global rare earth market. Plans are already underway to establish rare earth separation and processing facilities capable of extracting 570,000 tons per year of REEs, as Bayraktar disclosed during the China Mining 2024 conference in Tianjin.

Strategic Partnership in Critical Minerals

The newly signed agreement between Bayraktar and China's Minister of Natural Resources Wang Guanghua highlights China's commitment to securing rare earth supplies amid escalating global demand. China, which possesses 44 million tons of rare earth reserves—38% of the global total—remains the world leader in rare earth production and refining, controlling nearly 70% of global output in 2023.

Global Market Implications

Rare earths are indispensable for producing NdFeB magnets, a key component in EVs, wind turbines, and industrial robotics. With increasing demand from the EV industry, China’s largest EV manufacturer, BYD, has also expanded its international production footprint. BYD’s partnership with Turkey’s industry ministry aims to produce 150,000 EVs annually, aligning with global electrification goals.

The Need for Diversification

Geopolitical tensions have driven western nations to reduce their reliance on Chinese rare earths. Companies like Australia’s Lynas Rare Earths and US-based MP Materials are investing in alternative supply chains, focusing on heavy rare earth (HRE) production.

This collaboration between China and Turkey not only secures Turkey’s strategic position in the rare earth market but also reflects the intensifying global race to secure critical minerals for the energy transition.

USA Rare Earth Serra Verde Acquisition Builds Ex-China Magnet Supply Chain

Serra Verde Group

USA Rare Earth Serra Verde acquisition will give the US rare earth producer direct access to one of the most important heavy rare earth projects outside China. The company has agreed to acquire Brazil’s Serra Verde Group for $2.8bn, accelerating its strategy to build a fully integrated mine-to-magnet supply chain.

The deal includes $300mn in cash and 126.85mn USA Rare Earth shares. After completion, USA Rare Earth shareholders will own 66% of the combined company, while Serra Verde shareholders will own 34%.

USA Rare Earth Serra Verde acquisition is strategically important because Serra Verde owns the Pela Ema ionic clay mine in Brazil. The project targets production of 6,400 t/yr of rare earth oxides by the end of 2027, with plans to double output later.

The acquisition gives USA Rare Earth exposure to four key magnet rare earth elements: neodymium, praseodymium, dysprosium and terbium. These materials are essential for high-performance permanent magnets used in electric vehicles, wind turbines, robotics, aerospace, defence systems and advanced industrial motors.

The transaction also strengthens the company’s position in yttrium. Initial Serra Verde output is expected to include 1,534 t/yr of yttrium, a material whose price has risen sharply in the US market and which has strategic applications in ceramics, phosphors, electronics, alloys and defence-related materials.

Serra Verde Adds Heavy Rare Earth Feedstock and Price-Floor Protection

Serra Verde’s Pela Ema project gives USA Rare Earth a near-term rare earth oxide production base. Ionic clay deposits are strategically attractive because they can contain valuable heavy rare earths such as dysprosium and terbium.

Initial planned output of 6,400 t/yr of rare earth oxides is expected to include 164 t/yr of dysprosium and 29 t/yr of terbium. These are small volumes compared with light rare earths, but they carry high strategic value because they improve magnet performance in high-temperature applications.

Dysprosium and terbium are especially important for permanent magnets used in EV traction motors, wind turbine generators, industrial robotics, guided systems and aerospace components. Without these elements, magnets can lose performance under heat and stress.

The deal also includes a 15-year offtake agreement previously signed by Serra Verde with a special-purpose vehicle funded by US government agencies, including the Department of Commerce and Department of Energy. This gives the project a policy-backed commercial structure rather than relying only on spot-market sales.

The offtake agreement includes price floors for neodymium, praseodymium, dysprosium and terbium. Floors are set at $110/kg for neodymium and praseodymium, $575/kg for dysprosium and $2,050/kg for terbium.

This structure is important because rare earth projects outside China often struggle when prices fall. Price floors can improve project bankability by protecting revenues and reducing the risk that China-linked supply undercuts new producers during market downturns.

Serra Verde will also share 70% of non-China index prices above the floor, net of separation costs. This gives the project exposure to upside while maintaining downside protection.

The company can also monetise non-offtake elements, including yttrium. That flexibility matters because ionic clay resources can contain multiple valuable rare earths beyond the main magnet feedstocks.

The market timing is favourable for heavy rare earth producers. US yttrium oxide prices have risen sharply, while dysprosium and terbium remain high-value magnet materials. Supply chains outside China remain thin, and buyers are increasingly focused on traceable, geopolitically secure material.

However, the acquisition does not remove execution risk. Serra Verde must still deliver target output, manage ramp-up, maintain product quality and connect mine production with separation, metal and magnet capacity.

Mine-to-Magnet Roll-Up Tests Western Rare Earth Integration

USA Rare Earth Serra Verde acquisition is part of a broader roll-up strategy. The company is building its supply chain through acquisitions rather than waiting for long greenfield development timelines.

USA Rare Earth bought UK-based Less Common Metals for $125mn in November. Less Common Metals gives the company rare earth metal and alloy production capability, a critical midstream step between separated oxides and finished magnets.

The company also acquired Texas Mineral Resources for $73mn in March to secure the Round Top heavy rare earth project in Texas. Round Top adds a US-based heavy rare earth resource to the group’s upstream portfolio.

Together, Serra Verde and Round Top are expected to give the combined company 17,100 t/yr of rare earth oxide mining capacity. Separation capacity will total 13,000 t/yr, while expanded metal and magnet-making capacity is planned at 27,500 t/yr and 10,000 t/yr, respectively.

This integration is the key point. Rare earth supply security cannot be solved by mining alone. Ore or concentrate must be separated, refined, converted into metals, alloyed and manufactured into magnets before it can support industrial customers.

Many western rare earth projects fail to cover the full chain. Some have resources but no separation. Others have separation but no heavy rare earth feedstock. Some can produce oxides but lack metal conversion and magnet-making capacity.

USA Rare Earth argues that the merged company will be the only fully integrated magnet supplier outside China. The claim reflects the company’s attempt to combine upstream heavy rare earth resources, separation, metal production and magnet manufacturing in one platform.

That structure could be attractive to customers in defence, aerospace, automotive, robotics and clean energy. These buyers increasingly need non-China supply options that can meet origin, traceability, qualification and security requirements.

The US government-backed offtake component also shows how rare earth supply chains are changing. Western governments are no longer relying only on free-market procurement. They are using price floors, strategic vehicles, financing support and industrial policy to build alternative supply.

Still, integration brings complexity. USA Rare Earth must combine assets across Brazil, Texas, the UK and planned downstream facilities. It must align mining output, separation chemistry, metal production, magnet capacity, customer qualification and government-backed offtake obligations.

The valuation also raises expectations. A $2.8bn acquisition price gives Serra Verde a large strategic premium. The deal will need to deliver heavy rare earth output, stable separation economics and customer demand to justify that value.

The broader market implication is clear. Heavy rare earth supply is becoming the strategic centre of the magnet market. Neodymium and praseodymium remain essential, but dysprosium and terbium determine performance in the most demanding applications.

China still dominates much of the rare earth separation, metal and magnet chain. The USA Rare Earth-Serra Verde deal is an attempt to create an alternative industrial route at scale.

If successful, the combined company could become a rare western platform with upstream resources, heavy rare earth exposure, midstream conversion and downstream magnet capability. If execution slips, it will show again how difficult it is to recreate China’s integrated rare earth ecosystem outside China.

The Metalnomist Commentary

USA Rare Earth Serra Verde acquisition shows that the rare earth race is shifting from single-asset mining stories to integrated supply-chain control. The deal’s real test will be whether USA Rare Earth can turn Brazilian ionic clay output, US heavy rare earth resources, separation capacity and magnet production into a bankable ex-China magnet platform.

US Targets 1 Million Tons of Lithium Production by 2035, Says DoE

Department of Energy (DOE)

The US Department of Energy (DoE) projects that the country could produce 1 million metric tons (t) of battery-grade lithium by 2035. This output would be sufficient to meet domestic demand while allowing for exports to trading partners.

Scaling Up Domestic Lithium Production

The DoE's Loan Programs Office Director, Jigar Shah, emphasized the need to expand lithium extraction, processing, and recycling to support the growing lithium-ion battery industry. He noted that diverse lithium resources across multiple US regions could be unlocked using advanced technology and infrastructure investments.

The US plans to increase lithium supply through three key sources:

• Spodumene deposits in Charlotte, North Carolina, expected to produce 100,000-150,000 t/yr of lithium carbonate equivalent (LCE).
• Albemarle’s Kings Mountain mine is one of the most advanced spodumene projects, projected to yield 50,000 t/yr of LCE.

• Brine and clay resources in Nevada, California's Imperial Valley, and the Arkansas Smackover Formation, estimated to contribute 500,000-1 million t/yr of LCE.
• These resources have lower lithium concentrations than South American reserves, but direct lithium extraction (DLE) technology can help process them efficiently.
• Recycling of end-of-life EV batteries, which could reduce the need for new lithium extraction, supplying 50,000-100,000 t/yr of LCE by 2035.

Government Investment in Lithium Infrastructure

The Biden administration has significantly increased investments in US lithium production to accelerate the clean energy transition.

In September 2024, the DoE selected 25 projects across 14 states, committing over $3 billion to expand domestic lithium supply. Additionally, the Thacker Pass lithium project in Nevada, operated by Lithium Americas, received a $2.3 billion loan to build a 40,000 t/yr lithium carbonate facility.

In December 2024, the DoE also allocated $17 million to 14 critical mineral technology projects, reinforcing efforts to scale up lithium production.

Lithium’s Role in the US Energy Transition

According to the US Geological Survey, the US has 1.1 million tons of lithium reserves, compared to a global total of 28 million tons.

Shah highlighted that advancements in direct lithium extraction (DLE) could rapidly unlock large lithium resources, much like hydraulic fracturing transformed the oil and gas industry.

With global lithium demand rising, the US is positioning itself as a key player in the lithium supply chain, reducing dependence on foreign imports and strengthening the clean energy sector.

PLS Boosts Pilgangoora Lithium Resources by 23% Amid Expansion Plans

Australia’s PLS

Higher Grade and Tonnage Strengthen Global Position

Pilbara Minerals (PLS) has expanded the Pilgangoora lithium resources by 23%, driven by a 10% rise in tonnage and a 12% improvement in grade. This boost elevates Pilgangoora’s standing to match the resource scale of Australia’s Greenbushes, the world’s largest hard-rock lithium mine.

Exploration since September 2023 added 39mn tonnes to measured, indicated, and inferred resources at the Western Australia site. As of 2025, Pilgangoora’s total mineral resource now stands at 446mn tonnes grading 1.28% Li₂O and 122ppm Ta₂O₅. Despite pausing exploration in March 2025 due to cost-cutting, PLS has identified a target of 76–102mn tonnes, indicating further growth potential.

Expanding Spodumene Production Capacity

Pilgangoora’s current nameplate capacity is 680,000 t/yr of spodumene, with Q1 2025 production at 125,000 tonnes—down from 188,200 tonnes in Q4 2024. The P1000 project is set to lift capacity to 1mn t/yr by Q3 2025, while the proposed P2000 project could double output to over 2mn t/yr within six years.

However, weaker market conditions may pressure higher-cost Australian spodumene producers to cut output. PLS’s large-scale, higher-grade reserves could provide a competitive advantage in maintaining production and market share during challenging pricing cycles.

The Metalnomist Commentary

PLS’s expansion at Pilgangoora reinforces Australia’s role as a dominant supplier of hard-rock lithium to global EV and battery markets. With both grade and tonnage growth, PLS is positioned to weather market volatility better than many peers. Long-term, the success of the P2000 project could transform Pilgangoora into one of the largest spodumene producers worldwide.

Aclara Brazil Rare Earths Pilot Plant Launches to Bolster Global Supply Chain

Aclara Resources

The Aclara Brazil rare earths pilot plant has officially started operations, marking a strategic milestone for critical mineral development in South America. Aclara Resources, a Canadian-based mining firm, invested R30mn ($5.3mn) to develop the pilot facility in Nova Roma, located in Brazil’s Goias state. The semi-industrial scale plant will process 250 metric tonnes per year of ionic clays, producing concentrate with over 95% purity.

Supplying Rare Earths for the EV Revolution

Aclara’s plant will extract both heavy and light rare earth elements, including dysprosium, terbium, neodymium, and praseodymium. These metals are essential to electric vehicle (EV) production, wind turbines, and high-performance magnets. Aclara stated the plant could support the manufacturing of up to 5 million EVs annually. The company emphasized its environmentally responsible extraction process as part of its commitment to sustainable mining.

Brazil Emerges as a Rare Earths Powerhouse

Brazil continues to attract investment in rare earth and critical mineral projects. Production at Mineracao Serra Verde’s Goias facility, with a 5,000t/year rare earth oxide capacity, began in late 2023. With the Aclara Brazil rare earths pilot plant now operational, Brazil strengthens its position as an emerging alternative to China in the global rare earth supply chain.

The Metalnomist Commentary

The launch of the Aclara Brazil rare earths pilot plant highlights Brazil’s increasing relevance in the global critical mineral landscape. As countries seek diversified rare earth sources, Brazil’s sustainable projects will play a key strategic role in decarbonization and supply security.

Australia's Iluka Predicts Increased Rare Earth Demand by 2033

iluka resources

According to Tom O'Leary, CEO of Australian mineral producer Iluka Resources, the evolving global demand driven by renewable energy technologies is expected to significantly increase the consumption of neodymium, praseodymium, dysprosium, and terbium by 2033. O'Leary shared these insights at the International Rare Earth Industry Association's annual conference in Tokyo, Japan, last week.

Iluka anticipates that the ongoing transition to renewable energy, particularly through electric vehicles (EVs) and wind power, will continue to drive the demand for rare earth materials over the next decade. O'Leary stated that global demand for praseodymium-neodymium and dysprosium/terbium is projected to rise from 63,000 tons per year (t/yr) in 2023 to between 93,000 and 171,000 t/yr by 2033. Specifically, the consumption of dysprosium/terbium is expected to grow from 1,100 t/yr to between 1,900 and 5,100 t/yr during this period.

In the EV sector alone, the demand for praseodymium-neodymium is expected to increase from 12,000 t/yr in 2023 to between 33,000 and 62,000 t/yr by 2033. Similarly, the EV sector's demand for dysprosium and terbium is likely to rise from 500 t/yr to between 1,300 and 3,000 t/yr over the same timeframe.

The wind power sector is also expected to see a significant rise in praseodymium-neodymium consumption, projected to grow from 6,000 t/yr in 2023 to 26,000 t/yr by 2033. The demand for dysprosium and terbium in this sector is anticipated to increase from 200 t/yr to between 300 and 1,600 t/yr.

Other application fields, including automotive, consumer electronics, industrial applications, and home appliances, are forecasted to consume between 53,000 and 83,000 t/yr of praseodymium-neodymium by 2033, up from 45,000 t/yr in 2023. The consumption of dysprosium and terbium in these fields is expected to grow from 300 t/yr to between 400 and 600 t/yr during the same period.

Iluka predicts that by 2030, 35% of global demand for dysprosium and terbium will come from e-mobility sectors, and 20% from wind power. "The global supply of dysprosium and terbium in 2030 is projected to fall short of total demand," O'Leary noted. "Iluka's Eneabba refinery is expected to account for more than half of the supply outside China once it starts commercial production by 2025."

Iluka, which produces zircon, ilmenite, and rutile in Australia and Sierra Leone, aims to achieve an annual output capacity of up to 23,000 t/yr of rare earth oxide (REO), including 5,500 t/yr of praseodymium-neodymium oxide and 725 t/yr of dysprosium and terbium oxide from its refinery, supported by a $1.25 billion non-recourse loan from the Australian government.

The company has also signed an initial agreement with rare earths developer Northern Minerals to supply concentrate to Iluka's Eneabba refinery, set to commence production in 2025-26. This agreement includes the provision of 30,500 t of rare earth concentrates from Northern Minerals' Browns Range project, with an annual supply of 5,000 t for the first four years.

Iluka has a secure supply of heavy rare earths from stockpiles at its Eneabba refinery and additional supply options from its Balranald project and Wimmera deposits in New South Wales and Victoria. The Eneabba refinery can be supplied for five years with its stockpile of 1 million t of high-grade rare earth concentrate, readily available at the surface. The Balranald project is expected to deliver an additional 5,000 t/yr of rare earth concentrate from 2026. Feasibility studies are ongoing at the Wimmera deposit, which has the potential to supply 15,000 t/yr of rare earth concentrates over a mine life exceeding 25 years.

Jogmec FPX nickel exploration in Canada targets low-carbon battery metals

Nickel

Japan’s Jogmec FPX nickel exploration in Canada signals a deeper strategic push into secure battery metal supply. The partners are testing awaruite nickel resources in Newfoundland and Labrador to support long-term decarbonisation. As a result, Jogmec FPX nickel exploration in Canada sits at the intersection of energy security, EV growth and critical mineral policy in both countries.

Strategic drivers behind Jogmec FPX nickel exploration in Canada

The first phase of Jogmec FPX nickel exploration in Canada focuses on the Advocate area in northwest Newfoundland and Labrador. Jogmec will pay C$1.64mn over three years for an option to acquire a 48pc stake from Shoreline Exploration. However, the exploration timeline and ultimate nickel yield remain uncertain, underlining the early-stage nature of the project.

Japan’s government has placed storage batteries on its list of 11 vital materials since late 2022. Therefore Jogmec is mandated to lock in battery metal supply, including nickel, to underpin its 2050 decarbonisation targets. Canada has emerged as Japan’s preferred partner for these efforts, combining resource depth, ESG credibility and strong policy backing for critical minerals.

Meanwhile, Jogmec and FPX are already familiar collaborators in awaruite nickel. They previously explored the 28km² Klow area in British Columbia, building geological knowledge and technical confidence. This continuity reduces project risk and strengthens the case for scaling Jogmec FPX nickel exploration in Canada into a long-term supply platform.

Awaruite nickel, FPX portfolio and supply chain implications

Awaruite nickel, hosted in ultramafic rocks, offers potential processing and ESG advantages compared with some sulphide and laterite routes. If exploration succeeds, Jogmec FPX nickel exploration in Canada could deliver large-scale, low-impurity feedstock for battery precursors. However, investors will still demand clarity on recovery rates, capex intensity and permitting pathways before committing major capital.

FPX Nickel sits at the centre of this emerging supply chain. Its 59,000 t/yr Baptiste Nickel Project in British Columbia already attracted a strategic stake from Japan’s Sumitomo Metal Mining. As a result, Japan’s industrial ecosystem could gain multi-asset access to Canadian nickel via Jogmec, Sumitomo and FPX, spanning both Baptiste and Advocate.

For Canada, this partnership reinforces its positioning as a reliable supplier of low-carbon critical minerals to advanced economies. For Japan, diversified awaruite supply helps reduce exposure to high-risk jurisdictions and volatile spot markets. Over time, successful Jogmec FPX nickel exploration in Canada could anchor new midstream investments in refining and active materials aligned with EV and storage demand.

The Metalnomist Commentary

Jogmec’s move with FPX shows how state-backed agencies are now competing directly for future battery nickel. If the Advocate and Baptiste projects advance on schedule, Canada could become one of Japan’s most strategic nickel partners outside traditional sulphide hubs. The key question now is whether policy support and project economics will align fast enough to meet the next wave of EV demand.