Lifezone PGM Recovery Advances US Autocatalyst Recycling Strategy

Lifezone

Lifezone PGM recovery has reached an important pilot milestone after Lifezone Metals produced platinum, palladium and rhodium from US-sourced automotive catalytic converters. The result supports the company’s plan to build a US-based precious metals refinery using hydrometallurgical technology.

Lifezone PGM recovery is designed to reduce US dependence on imported platinum group metals. The US imports around 2mn oz/yr of PGMs, mainly from South Africa and Russia, creating strategic exposure for automotive, defense and aerospace supply chains.

Lifezone PGM recovery could become especially important for rhodium, which carries one of the highest supply chain risk ratings in the US. Rhodium is critical for emissions control systems and remains highly concentrated in global mine supply.

Hydrometallurgy Targets Cleaner PGM Recycling

Lifezone completed 1,179 domestic pilot batch tests over two years, using 1t of US-sourced autocatalyst material. The company recovered platinum and palladium at more than 99% purity, while rhodium reached 95%.

Further refining is still underway. Lifezone is targeting more than 99.95% purity for platinum and palladium and 99.9% purity for rhodium.

The hydrometallurgical route is strategically relevant because it can produce lower CO2 and sulphur dioxide emissions than traditional pyrometallurgical smelting and refining. This gives the project both supply-chain and environmental value.

Glencore Support Adds Scale to US Refinery Plan

Glencore continues to support the project after forming a joint venture with Lifezone at the end of 2023. The Swiss mining group invested $1.5mn for a 6% stake and has the option to fund 50% of the project capital.

Lifezone said its pilot plant work and feasibility study are close to completion. The company expects to reach a final investment decision in the first half of 2026 for a commercial US autocatalyst recycling plant.

The project could give the US a stronger domestic route to recover PGMs from end-of-life catalytic converters. If scaled, it would support circular supply for automotive emissions systems, aerospace manufacturing, defense components and high-value industrial applications.

The Metalnomist Commentary

Lifezone’s pilot milestone shows that recycling can become a strategic source of PGMs, not only an environmental solution. The decisive test will be whether the company can scale rhodium recovery to commercial purity and volume in a US-based refinery.

Lifezone Adjusts Kabanga Nickel Mine Plan Amid Market Pressures

Lifezone Metals

Lifezone Condenses Kabanga Nickel Mine Strategy

Lifezone Metals will simplify its Kabanga nickel project in Tanzania to adapt to ongoing nickel price volatility. The company will pursue full-scale construction of a 3.4mn t/yr underground mine and concentrator rather than a phased approach. A hydromet demonstration plant in Kahama, 350km away, will precede a full-scale ecological refinery using hydrometallurgical technology.

Market Dynamics Prompt Strategic Shift

The decision to shift from phased development stems from weak global nickel prices and rising Indonesian supply. Nickel mine production dropped by 50,000t globally in 2024, while Indonesia increased output by 170,000t to 2.2mn t. Lifezone aims to complete a definitive feasibility study for Kabanga by mid-2025, reflecting the new plan.

Resource Update and PGM Recycling Focus

Measured and indicated resources at Kabanga rose 7.3pc to 46.8mn t, while inferred resources fell by 35.4pc. Grades remain strong: 2.09pc nickel, 0.29pc copper, and 0.16pc cobalt for measured and indicated resources. Meanwhile, Lifezone is advancing a joint venture with Glencore to recycle platinum group metals (PGMs) from catalytic converters in the US.

The Metalnomist Commentary

Lifezone’s pivot illustrates the real-time flexibility required by mining companies in a volatile nickel market. With oversupply pressuring prices, optimizing scale and timing becomes critical. Simultaneously, its investment in hydrometallurgical refining and PGM recycling reflects a strategic bet on sustainability and future-facing technologies.

BHP exits Kabanga nickel project as Lifezone assumes full control

BHP

BHP exits Kabanga nickel project, selling its 17% stake to Lifezone Metals for up to $83mn. The transfer gives Lifezone 100% of Kabanga Nickel Ltd and full offtake rights. The move reflects BHP’s broader nickel retrenchment during a prolonged market slump.

Deal terms and strategic reset

Lifezone now owns KNL, which holds 84% of Tembo Nickel in Tanzania. The Tanzanian government retains a 16% stake in Tembo Nickel. Lifezone targets a 2026 final investment decision on the $2.49bn complex. The design pairs a mine with a hydrometallurgical refinery for battery-grade material. Nameplate output targets 50,000 t/yr of nickel in concentrate after ramp-up.

Project outlook and market headwinds

Nickel prices remain under pressure from Indonesian surpluses and softer demand. LME cash prices have fallen over 40% since early 2023. Economics across new projects have therefore tightened materially. BHP earlier placed Nickel West on care and maintenance. It plans a decision on that asset’s future by early 2027. Against this backdrop, BHP exits Kabanga nickel project to sharpen portfolio focus.

Lifezone frames Kabanga as a premier undeveloped sulphide deposit. Hydromet refining could deliver cleaner, higher-quality battery feed. The project aims to support EV supply chains with secure, traceable nickel. However, six years to full ramp leaves execution risk. Financing, power, and permitting will be decisive for timelines.

The Metalnomist Commentary

This handover trades super-major capital for specialist focus. If Lifezone proves its hydromet route at scale, Kabanga could reset African nickel. Yet market discipline and offtake financing must align before shovels truly matter.

Kabanga nickel project secures $60mn loan to advance development

Kabanga Nickel Project

The Kabanga nickel project will receive up to $60mn from Taurus Mining Finance. The Kabanga nickel project drew a first $20mn tranche on 29 August. The Kabanga nickel project aims to accelerate mine development and reach key milestones.

Funding structure and ownership

Lifezone Metals arranged a loan of up to $60mn with Taurus. Additional drawings depend on performance and milestone delivery. The company now owns 100% of Kabanga. BHP sold its prior 17% stake in July for up to $83mn. The facility supports mine construction and early works. It also strengthens working capital for long-lead items.

Revised plan and output profile

Lifezone updated the mine plan in April. The design targets a 3.4mn t/yr underground mine and concentrator. A July feasibility study outlines 902,000t nickel in concentrate over 18 years. The project also expects 134,000t copper and 69,000t cobalt in concentrate. The staged debt supports critical path activities. It also aligns cash flows with ramp-up timing.

Market context and strategic relevance

Global nickel markets face mixed signals. Battery demand grows, yet class-II supply weighs on prices. High-grade sulphide feed remains strategic for battery supply chains. Kabanga’s concentrate mix diversifies regional supply. The financing lowers execution risk. It also positions Lifezone for downstream partnerships.

The Metalnomist Commentary

Milestone-linked funding is prudent in a volatile nickel market. The ownership simplification post-BHP exit may speed decisions and offtake talks. Watch capex discipline and timetable risk as underground development advances.