Impala Lac de Iles palladium mine closure set for 2026

Impala Platinum Lac de Iles

Impala Lac de Iles palladium mine closure will proceed in 2026. The company plans to end commercial production around 31 May 2026. Impala Lac de Iles palladium mine closure reflects prolonged price pressure and insufficient cash flow.

Price pressure, timeline, and operations

Palladium prices have fallen each year since 2021. The 2024 average was $998/oz, down 59% from 2021 levels. Prices peaked at $1,169/oz on 3 July 2025, yet support remains weak. Therefore, management will wind down as tailings capacity and targets allow. The operation currently employs about 750 people.

Market context and strategic implications

Persistent low prices made the site unsustainable at current costs. The mine produced under prior ownership until Impala acquired it in 2019. As a result, Impala prioritizes balance-sheet discipline over volume. Meanwhile, the industry still faces cyclical PGM headwinds. Consequently, the Impala Lac de Iles palladium mine closure signals continued margin stress.

The Metalnomist Commentary

This closure shows disciplined capital allocation in a stressed palladium market. Watch labor transition plans, reclamation costs, and price-linked sensitivities into 2026. A durable palladium rebound would be needed to alter this path.

Lithium Americas to Start Thacker Pass Build in May 2025

Lithium Americas to Start Thacker

Lithium Americas confirms Thacker Pass construction start in May, targeting production by late 2027 to boost U.S. lithium supply.

Thacker Pass Lithium Project Set for Major Construction Phase

Lithium Americas (LAC) will begin major construction at its Thacker Pass project in Nevada starting May 2025. The company aims to reach initial production by late 2027, reinforcing its role in North America's lithium supply chain. Engineering progress has already reached 55% and is expected to exceed 90% design completion by year-end.

LAC’s CEO Jonathan Evans emphasized the readiness to move forward after securing funding and partnerships. “Once we declare final investment decision, our team will focus on execution,” Evans said. This milestone follows the finalization of a $2.26 billion Department of Energy (DOE) loan in October 2024.

Funding and Strategy Behind the U.S. Lithium Push

In March 2025, LAC received a $250 million investment from Orion Resource Partners to support Phase 1 development. The DOE loan—secured under the Advanced Technology Vehicles Manufacturing Loan Program—will help build processing infrastructure. Meanwhile, LAC reported a $42.6 million net loss in 2024, up from $5.1 million in 2023, mainly from DOE and GM deal costs.

The Thacker Pass project is one of the most advanced lithium developments in the United States. Its strategic importance has grown amid increasing global demand for EV battery-grade lithium. The project also marks a significant step toward U.S. efforts to reduce reliance on imported lithium, especially from China.

The Metalnomist Commentary

Thacker Pass isn't just a mining project—it’s a cornerstone of U.S. energy security policy. As governments and automakers race toward EV adoption, domestic lithium supply is becoming as critical as oil once was. The Metalnomist will be watching closely as Lithium Americas enters this pivotal execution phase.

GM Invests $625 Million in US Thacker Pass Lithium Mine to Secure EV Supply Chain

Lithium Americas (LAC)

General Motors (GM) has made a significant investment in the Thacker Pass lithium mine, located in Nevada and owned by Lithium Americas (LAC). The automaker will inject $625 million into the project, acquiring a 38% stake, marking the largest investment in a lithium mining project by a US carmaker to date. This deal comes as part of a broader effort to strengthen the supply chain for electric vehicle (EV) materials, following a $2.3 billion loan commitment from the US Department of Energy to support Thacker Pass earlier this year.

Jeff Morrison, GM's senior vice-president of global purchasing and supply chain, emphasized the importance of this partnership: "We're pleased with the significant progress Lithium Americas is making to help GM achieve our goal to develop a resilient EV material supply chain. Sourcing critical EV raw materials, like lithium, from suppliers in the US is expected to help us manage battery cell costs, deliver value to our customers and investors, and create jobs."

The first phase of development at Thacker Pass will be backed by an initial cash infusion of $330 million from GM. This phase aims to produce 40,000 tonnes of lithium carbonate annually, all of which GM will secure through an offtake agreement. This supply is projected to be sufficient for approximately 800,000 electric vehicles, highlighting the scale and significance of this partnership in meeting future EV demand.

Recent lithium carbonate prices have shown some volatility, with rates declining to $9.30-9.60/kg CIF China from $9.50-9.80/kg as recorded on October 8.

The collaboration between GM and LAC underscores the growing importance of domestic lithium production for the US EV industry and the need for a stable supply chain for critical raw materials. As electric vehicles gain popularity, such strategic partnerships are crucial in ensuring sustainable growth and meeting market demand.

Implats Considers Early Closure of Canadian Palladium Mine Amid Slumping Prices and Profit Decline

Impala Platinum

Weak Market Conditions May Accelerate Wind-Down of Lac des Iles Mine as Group EBITDA Falls 23%

Implats Signals Potential Early Shutdown of Lac des Iles Mine in Canada

South African platinum group metals (PGM) miner Impala Platinum (Implats) is considering an early closure of its Lac des Iles palladium mine in Ontario, Canada, citing sustained market weakness. CEO Nico Muller noted that an accelerated wind-down could be the most economically effective response to deteriorating palladium market conditions.

While Implats had already scaled back operations at the site last year, the outlook for palladium prices has further worsened, prompting the potential closure. No final date was provided, but the move would significantly affect the company’s North American operations.

PGM Earnings Slide as Palladium Prices Hit Multi-Year Lows

Implats posted earnings before interest, tax, depreciation, and amortisation (EBITDA) of R6.5 billion ($351.62 million) for the first half of its 2025 financial year, a 23% decline from the previous year. This was driven by lower PGM prices, particularly palladium, which fell 17% year-on-year to $916 per troy ounce, according to Johnson Matthey.

Despite a 5% increase in sales volumes, total group 6E production — including platinum, palladium, rhodium, iridium, ruthenium, and osmium — fell 4.2% to 1.82 million ounces, largely due to reduced throughput in Canada.

Processing Efficiency Boosts Refined Output Despite Mining Constraints

Milled tonnage at Implats’ managed operations dropped 4% year-on-year to 13.74 million tonnes, reflecting lower throughput at both Impala Canada and the Marula site in South Africa. However, refined and saleable 6E output rose 2% to 1.79 million ounces, driven by greater processing availability.

The company's ability to offset mine-level setbacks with improved refining efficiency shows resilience, but long-term market recovery will be critical to sustaining profitability—particularly in palladium.

Rio Tinto Hydropower Investment of $1.2 Billion Secures Low-Carbon Aluminum Future

Rio tinto Aluminium

Rio Tinto hydropower investment reaches $1.2 billion for modernizing the Isle-Maligne hydroelectric power plant in Quebec, Canada. The massive Rio Tinto hydropower upgrade represents the mining giant's largest investment in hydroelectric assets since the 1950s, targeting sustainable aluminum production at its Saguenay–Lac-Saint-Jean operations through 2032.

Comprehensive Modernization Enhances Production Capacity

Rio Tinto hydropower modernization encompasses extensive infrastructure improvements across multiple facility components. The project will replace electrical and mechanical equipment throughout the Isle-Maligne plant while constructing facility extensions and new mechanical workshops. Additionally, engineers will improve water intake systems and hydraulic passages to optimize power generation efficiency.

Meanwhile, the upgrade includes critical spillway modifications enabling year-round operations during Canadian winter conditions. These enhancements ensure continuous power supply for aluminum smelting operations regardless of seasonal weather challenges. The comprehensive scope demonstrates Rio Tinto's commitment to long-term operational reliability in Quebec's challenging climate.

Strategic Investment Supports Integrated Aluminum Operations

However, the Isle-Maligne facility serves as a cornerstone for Rio Tinto's extensive Quebec aluminum infrastructure. The Saguenay–Lac-Saint-Jean operations include one alumina refinery, five wholly owned aluminum smelters, and six hydropower plants. These integrated facilities account for nearly half of Rio Tinto's global aluminum output, making reliable power generation essential.

Therefore, the modernization project directly impacts Rio Tinto's competitive position in North American aluminum markets. Sebastien Ross, Rio Tinto Aluminium's managing director for Atlantic operations, emphasized that the investment ensures long-term competitiveness for Canadian and American customers. The low-carbon aluminum production capability provides significant marketing advantages in environmentally conscious markets.

Decades-Long Commitment to Sustainable Metal Production

Furthermore, the $1.2 billion investment timeline extends through 2032, demonstrating Rio Tinto's long-term commitment to Quebec operations. The hydroelectric power source enables low-carbon aluminum production, aligning with global sustainability trends and regulatory requirements. This positioning strengthens Rio Tinto's market differentiation in premium aluminum segments.

As a result, the modernization project reinforces Quebec's role as a strategic aluminum production hub for North American markets. The combination of abundant hydroelectric resources, existing infrastructure, and skilled workforce creates competitive advantages that justify substantial capital investment in facility upgrades.

The Metalnomist Commentary

Rio Tinto's $1.2 billion hydropower investment exemplifies how integrated mining companies leverage renewable energy assets to maintain competitive advantages in commodity markets. The project's scale and timeline demonstrate the capital intensity required to modernize aging industrial infrastructure while positioning aluminum operations for decades of low-carbon production in increasingly sustainability-focused markets.

Russian PGMs Continue Flowing to Europe via East Asia Despite Direct Import Declines

Russian PGMs Mining

Hong Kong and China Re-export Platinum and Palladium to Europe as Shortages Persist and Prices Stay Depressed

Russian Metal Flows Persist Despite Western Sanctions

Russian-origin platinum group metals (PGMs) continued entering European markets in 2024, despite significant declines in direct exports. Instead, the metal flowed indirectly via Hong Kong and China, both of which ramped up PGM exports after stockpiling Russian volumes in 2023–2024.

The UK, for instance, imported a quarter of Hong Kong’s 857,379 oz of platinum in the first eleven months of 2024—up 500% year-on-year, despite zero direct imports from Russia for two consecutive years.

Re-export Surge Undercuts African Suppliers

As the UK increased platinum imports via Asia, its platinum purchases from South Africa—the world’s largest platinum producer—fell 4% year-on-year. Market participants say rebranded Russian metal, sold at a discount, is undercutting South African supply in Europe.

Meanwhile, Switzerland absorbed most of Hong Kong’s 121,682 oz of palladium exports in 2024, sharply up from prior years. China’s palladium exports also jumped 87%, with half shipped to Switzerland, reinforcing the growing role of East Asia as a trade intermediary.

Global Deficit Grows as Output Shrinks

With supply tight, the EU and UK may continue to rely on these indirect Russian flows. According to the World Platinum Investment Council, platinum and palladium demand will remain robust through 2025, even as global production falls.

Non-Russian producers are scaling back: Sibanye-Stillwater announced job cuts at its U.S. palladium mine, and Impala Platinum may shut its Canadian Lac des Iles site early. Despite tightness, spot prices remain weak, limiting producer incentives to boost output.

Europe's Strategic Dilemma in PGM Supply

Palladium prices have plunged 57% in 2023, followed by another 36% drop in 2024, averaging $998/oz, per Johnson Matthey data. Although sanctions remain in place, Europe’s automotive and industrial sectors have few alternatives for essential PGMs.

Market insiders expect indirect Russian-origin PGM flows into Europe to persist in the medium term, particularly as Asia profits from discounted access. The gap between policy and procurement realities is widening, reinforcing the fragility of Europe’s critical metals strategy.

Rio Tinto Explores Gallium Extraction in Canada Amid Global Supply Shift

Rio Tinto

Global mining giant Rio Tinto is investigating the feasibility of extracting gallium from its operations in Canada, positioning itself to play a critical role in the North American supply chain for this strategically significant metal. The company plans to establish a demonstration plant in Quebec's Saguenay-Lac-Saint-Jean region, which could eventually produce up to 40 million tonnes of gallium annually, accounting for 5-10% of global output.

Leveraging Bauxite for Gallium Extraction

The gallium extraction initiative focuses on utilizing the gallium present in the bauxite ore processed at Rio Tinto's alumina refinery in Quebec. This approach highlights the company’s innovation in valorizing existing materials in its production processes.

During the project's initial phase, Rio Tinto will evaluate the technology required to extract gallium. If successful, the company aims to build a demonstration facility capable of producing 3.5 million tonnes annually in its early stages, with plans to expand capacity as demand grows.

Gallium, a critical metal primarily used in the semiconductor and solar panel industries, has seen a surge in strategic importance following China's decision to restrict exports of gallium and other vital minerals to the U.S. As the world's largest gallium producer, China's actions underscore the need for alternative sources, making Rio Tinto's initiative a pivotal development.

Strengthening North American Critical Mineral Supply

Rio Tinto’s project aligns with broader efforts to bolster the North American supply chain for critical and strategic minerals, ensuring a more resilient and independent supply network. Rio Tinto Aluminium’s chief executive, Jerome Pecresse, emphasized the project’s role in addressing geopolitical and supply chain challenges in the global critical metals market.

With the growing reliance on gallium for advanced technologies, including semiconductors and renewable energy solutions, Rio Tinto’s project represents a significant step forward in diversifying the global supply of this vital resource.

Rio Tinto to Explore Gallium Extraction in Canada Amid Global Supply Concerns

Rio Tinto

Rio Tinto, a leading global mining group, has announced plans to investigate the potential for gallium extraction in Canada. This strategic move is poised to enhance North America's supply chain resilience for critical minerals, particularly in light of recent trade tensions.

Expanding North American Capacities in Critical Metals

The company is currently assessing the feasibility of extracting gallium from bauxite processed at its alumina refinery in Saguenay-Lac-Saint-Jean, Quebec. This initiative underscores Rio Tinto's commitment to valorizing additional resources within its operations and follows the Chinese government's recent decision to suspend exports of gallium to the United States. Given that China is the world's largest gallium producer, this development has significant implications for the global supply chain, especially for industries dependent on semiconductors and solar panels.

Demonstrating Technological and Environmental Leadership

Following the preliminary technology development phase, Rio Tinto plans to establish a demonstration plant in Canada with the capacity to produce up to 3.5 tonnes of gallium per year. This facility not only aims to showcase the company's innovative extraction techniques but also has the potential to scale up to 40 tonnes per year, which would account for 5-10% of global gallium production.

Jerome Pecresse, Chief Executive of Rio Tinto Aluminium, highlighted the project's broader goals: "The research and development project aims to help strengthen the North American supply chain for critical and strategic minerals." This initiative reflects the growing importance of securing stable and environmentally responsible sources of critical raw materials.

Rio Tinto to Test Titanium and Scandium Sorting Technology

Rio Tinto Titanium Mining

Rio Tinto Invests in Ore-Sorting Innovation

UK-Australian mining firm Rio Tinto will invest C$7.6mn ($5.6mn) to test a new ore-sorting technology at its Lac Tio mine in Quebec, Canada. The technology will sort ore based on titanium and scandium content directly at the source, reducing the amount of material transported to Rio Tinto’s iron and titanium metallurgical and critical minerals complex in Quebec.

The government of Quebec will contribute C$2.5mn ($1.8mn) through its support program for critical and strategic metals processing. This partnership underscores the region’s focus on developing advanced processing capacity for critical minerals.

Importance of Titanium and Scandium in Global Markets

Rio Tinto’s Quebec operations already produce titanium dioxide, covering 19% of global demand, alongside scandium oxide. Titanium dioxide is widely used in pigments and sunscreens, while scandium oxide plays a vital role in high-strength aluminum alloys for aircraft, as well as in electronic ceramics and glass.

As a result, the new sorting technology has the potential to increase efficiency, reduce carbon intensity, and strengthen North America’s position in critical minerals supply chains. By advancing titanium and scandium processing, Rio Tinto could also enhance the security of supply for industries facing rising demand.

The Metalnomist Commentary

Rio Tinto’s investment in titanium and scandium ore-sorting technology signals a clear shift toward greater efficiency and sustainability in critical minerals. By reducing transport needs and improving resource utilization, the project strengthens Quebec’s role as a global hub for strategic materials. This initiative also highlights the increasing importance of scandium, a rare but essential element for advanced manufacturing.

Lithium Americas Thacker Pass project reshaped by US equity move

Lithium Americas

The Lithium Americas Thacker Pass project has entered a new phase as the US government links financing to direct equity. The Department of Energy (DOE) will take a 5pc stake in Lithium Americas and another 5pc in its joint venture with General Motors. This move reshapes risk sharing on the Lithium Americas Thacker Pass project and signals stronger US commitment to domestic lithium supply. As a result, the Lithium Americas Thacker Pass project now sits at the intersection of industrial policy, EV demand and capital markets.

US equity stake deepens support for Lithium Americas Thacker Pass project

The DOE has restructured its $2.26bn loan by adding equity warrants in Lithium Americas and its GM joint venture. This makes the US government not only a lender but also a partial owner of the Lithium Americas Thacker Pass project. LAC will draw an initial $435mn before the end of 2025, which will fund early construction and infrastructure. The joint venture structure remains intact, with Lithium Americas holding 62pc and operatorship and GM holding 38pc. This equity-linked design aligns incentives across government, miner and automaker, while anchoring long-term US battery material security.

The Thacker Pass development targets 160,000 t/yr of lithium carbonate across five phases. Each phase is planned at 40,000 t/yr, providing staged capacity that can track market demand. This phased approach reduces execution risk and gives lenders more confidence in the project ramp-up. It also lets the partners adjust capex timing if pricing or EV demand changes. For the DOE, the structure supports a scalable North American supply chain that can feed US gigafactories and reduce reliance on foreign lithium.

GM will also amend its offtake agreement to allow additional buyers into the portfolio. Under the existing terms, GM can take up to 100pc of Phase 1 and 38pc of total production for 20 years. The updated agreement will free some Phase 1 volumes for third-party offtake contracts. That shift reflects slower US EV adoption than previously expected and uncertainty after the expiry of key tax credits at the end of September. It also allows Lithium Americas to diversify its customer base and reduce single-buyer exposure.

Lithium Americas Thacker Pass project balances market risk and supply security

The Lithium Americas Thacker Pass project is now a test case for how policy-backed critical mineral projects manage demand cycles. On one hand, government equity and cheap debt lower financing costs and signal strong policy support. On the other, the partners must adapt to a softer EV sales trajectory and evolving battery chemistries. Allowing third-party offtake from early phases helps ensure plant utilisation and broader market participation. It also widens the strategic impact of Thacker Pass beyond a single OEM.

At the same time, the project remains central to US ambitions for a resilient battery supply chain. Domestic lithium carbonate output can reduce exposure to price spikes, export controls and shipping disruptions. The phased build-out allows careful monitoring of market conditions while keeping long-term capacity targets intact. If EV adoption reaccelerates later in the decade, Thacker Pass will already have a built foundation for further expansion.

The Metalnomist Commentary

The DOE’s equity stake turns Thacker Pass into a flagship example of industrial policy meeting market reality. The Lithium Americas Thacker Pass project gains financial strength and strategic backing, but must now prove it can thrive in a slower, more competitive EV landscape. For battery and automaker supply chains, the real story is optionality: diversified offtake and phased growth give this project room to adjust without losing strategic relevance.