Alcoa Finalizes Venture to Support Smelter Restart in Spain

Alcoa Spain

Alcoa Invests in Joint Venture to Reopen San Ciprián Smelter

Alcoa has formed a joint venture with Spain’s Ignis Equity Holdings to revive its San Ciprián aluminum smelter. The Pittsburgh-based aluminum giant will invest $81 million for a 75% stake, while Ignis contributes $27 million for the remaining share. The move comes after prolonged shutdowns driven by extreme energy costs that began disrupting production in 2022.

Restart Hinges on Government Support and Renewable Energy

Alcoa may inject up to $108 million more to support operational needs. Any further funding will require mutual approval between Alcoa and Ignis. The venture also ties into a January memorandum with Spain’s national and regional governments to accelerate project approvals and labor coordination. Restarting the facility requires $10 million, with both partners seeking streamlined permits for renewable energy solutions to offset power costs.

Spanish Asset Sales Failed, But Local Cooperation Is Key

Efforts to sell the San Ciprián smelter and associated Spanish operations — including a foundry and alumina refinery — previously failed. However, the new partnership reflects a shift toward local cooperation to ensure long-term operational sustainability.

The Metalnomist Commentary

Alcoa’s renewed investment in Spain signals a strategic shift: instead of exiting, it’s doubling down with localized energy partnerships. As Europe grapples with power price volatility, ventures like this offer a template for industrial resilience through public-private coordination and renewable integration. The aluminum market will be watching closely.

Spain Awards €21mn to Bondalti’s Lithium Refinery Project

Bondalti’s Lifthium Energy

Spain has awarded Portuguese chemicals company Bondalti’s Lifthium Energy division €21 million to develop a low-emissions lithium hydroxide monohydrate (LHM) refinery in Torrelavega, northern Spain. This grant, part of the Perte Vec III funding initiative for the electric vehicle (EV) industry, is supported by the Next Generation EU recovery and resilience package. The Torrelavega refinery is set to be the first of three LHM production facilities planned across Spain and Portugal by Lifthium.

Lithium Hydroxide Monohydrate (LHM)

Innovative Low-Emissions Electrolysis Process

The refinery will utilize renewable energy sources, such as solar and wind, to power an electrolysis process that transforms lithium carbonate and lithium chloride into LHM. This electrochemical route is expected to significantly reduce carbon emissions, cutting them by 50% when using primary lithium carbonate sources and up to 70% when using recycled sources like battery waste. The refinery will produce approximately 28,000 tons per year of LHM, with construction expected to begin in 2026 and completion anticipated in 2027.

Lifthium has already tested its electrolysis process extensively, with over 2,000 hours of testing on a pilot prototype and ongoing commercial-scale tests. The company aims to replicate the technology in a second 28,000 t/yr LHM refinery in Portugal before 2030, with plans to invest €400-500 million in the process.

The Torrelavega project is among the first to benefit from the €300 million Perte Vec III program, which is focused on supporting the EV battery value chain. Other recipients include auto parts manufacturer Gestamp and Renault, which will receive funding for EV battery production at their Valladolid plant.

Spain Launches €750 Million Initiative to Boost Renewable Energy Manufacturing

Spain's Ministry for Ecological Transition and Demographic Challenge (Miteco) has unveiled a €750 million ($811.5 million) scheme aimed at enhancing the country's manufacturing capacity for renewable energy technologies. This initiative is set to support the production of electrolysers, solar panels, wind turbines, heat pumps, and batteries.

The scheme will be open to new projects as well as existing facilities looking to expand. Subsidies will be awarded through a competitive process, taking into account "economic, strategic, social, and environmental criteria," according to Miteco.

Spain is already home to several prominent hydrogen technology companies, including electrolyser manufacturers H2B2 and Ariema Enerxia, and electrode producer Matteco. This new initiative is part of a broader European effort to advance hydrogen technology. Just last week, the European Commission approved a €1.2 billion Spanish state aid program to support the development of electrolyser plants in designated hydrogen hubs.

Alcoa San Ciprian Power Shutdown Threatens Smelter Restart Plans

Alcoa San Ciprian Al plant

Grid Failure Hits Aluminium Operations in Spain, Impact Still Unclear

The Alcoa San Ciprian power shutdown has disrupted aluminium production at one of Spain’s key industrial sites. On 28 April, a full-scale electricity outage impacted Alcoa’s refinery and smelter operations in San Ciprian. The company is currently assessing the operational and financial impact, as the root cause of the national grid failure remains unknown.

Smelter Damage Risk Increases with Extended Power Loss

Power outages at aluminium smelters can cause irreversible damage if molten metal solidifies in potlines. Studies suggest damage becomes catastrophic after 3–5 hours of outage. The Spanish grid disruption reportedly exceeded that timeframe, placing significant pressure on San Ciprian’s backup power systems. The integrity of these systems will determine the plant’s future operability.

Timing Jeopardizes Recent Restart Investment

The incident follows Alcoa’s $81 million joint venture with Ignis Equity Holdings, aimed at restarting the idled smelter in 2024. The smelter had previously shut down due to high production costs, but restart efforts were already underway. The Alcoa San Ciprian power shutdown may now delay or derail those plans, raising uncertainty over Spain’s industrial power resilience and aluminium supply.

The Metalnomist Commentary

The Alcoa San Ciprian power shutdown underscores the vulnerability of energy-intensive industries to grid instability. As aluminium demand grows, securing stable and redundant energy infrastructure will be critical for operational continuity.

EU’s Copper Imports Increase in 2024 Despite Weak Demand in Germany

EU’s Copper Imports

Refined copper imports to the EU rose by 3.2% in 2024, led by Italy and Spain, despite falling demand in Germany.

Imports Rise, But Key Markets Show Strain

EU countries imported 1.71 million tonnes of refined copper in 2024, a 3.2% increase year on year, according to customs data. Italy remained the bloc’s top importer with 543,363 tonnes, representing 32% of total EU imports.

Germany, however, experienced a 13% drop in copper imports, falling to 413,245 tonnes. This reflects persistent challenges in Germany's industrial sectors due to rising energy prices and sluggish demand. The effects of the Covid-19 aftermath and Ukraine-related energy shocks have slowed recovery across EU economies.

Spain, Sweden, and the DRC See Significant Gains

Meanwhile, Spain increased its refined copper imports by 28%, reaching 142,231 tonnes, showing resilience in its industrial sectors. Sweden saw the largest year-on-year growth, with 119% more imports, totaling 107,794 tonnes.

On the supply side, Chile remained the largest exporter, delivering 307,885 tonnes to the EU — a 21% increase from 2023. The Democratic Republic of Congo (DRC) overtook Poland as the second-largest supplier, with 200,992 tonnes, up 11%. Together, Chile, DRC, and Poland made up 40% of the EU’s total refined copper supply in 2024.

Despite an overall 2.9% rise in global copper consumption, the EU market remains fragile. According to the International Copper Study Group, weak demand from automotive and construction sectors continues to weigh on European copper use.

The Metalnomist Commentary

The EU’s rising copper imports contrast sharply with the weakening of its core manufacturing sectors. Germany’s downturn reflects broader industrial deceleration, while southern and northern Europe appear more resilient. As the energy transition accelerates, copper sourcing will remain a geopolitical and industrial priority — and import trends are the first signal to watch.

India's Manganese Alloy Imports Surge, Prompting EU Trade Protection Measures

Manganese Alloy

Rising Indian Imports Disrupt European Manganese Market

India's manganese alloy exports to Europe have surged, reshaping market dynamics and triggering a safeguard investigation by the European Commission. In January-November 2020, India accounted for only 3% of EU ferro-manganese imports, but by 2024, this share skyrocketed to 28%, totaling 104,376 metric tons.

The silico-manganese market also saw a dramatic shift. India’s share of EU silico-manganese imports grew from 10% in 2020 to 29% in 2024, reaching 164,722 metric tons. Other countries, including Georgia and Zambia, also expanded their presence, filling gaps left by Ukraine’s production collapse due to conflict with Russia.

European Producers Struggle to Compete

European manganese alloy producers have faced declining exports amid India's rising market share. France, Slovakia, and Spain saw major drops in silico-manganese exports between 2020 and 2024. France’s exports fell 64%, while Slovakia and Spain recorded declines of 35% and 11%, respectively.

Similarly, EU ferro-manganese exports have weakened. France's shipments fell 28%, while Slovakia’s exports dropped 47%. These declines stem not only from rising Indian competition but also from weaker demand in the EU stainless steel industry.

EU Commission Launches Safeguard Investigation

To protect European manganese and silicon-alloy producers, the European Commission initiated a safeguard investigation on December 19, 2024. Possible outcomes include higher customs duties or import quotas.

European buyers have increased their purchases of Indian manganese alloys in anticipation of potential restrictions, driving Indian manganese alloy prices higher in January. Meanwhile, Norwegian producers, who supply 40% of ferro-manganese and 35% of silico-manganese to Europe, are expected to receive exemptions from trade measures.

Alcoa San Ciprian smelter restart resumes after power outage

Alcoa

Alcoa San Ciprian smelter restart resumes after a damaging power outage. Alcoa San Ciprian smelter restart follows government assurances on grid resilience. Alcoa San Ciprian smelter restart advances under an $81mn joint venture with Ignis.

Timeline, power reliability, and investment

Alcoa paused the restart to assess damage and power reliability. Authorities outlined measures to strengthen Spain’s grid resilience. The joint venture now restarts the plant with staged milestones. Completion is targeted by mid-2026, assuming stable energy supply.

Alcoa expects a wider 2025 loss from San Ciprian. Management guides a $90–110mn net loss this year. Delay costs stem from equipment damage and prolonged idling. Government backing aims to restore competitive baseload power.

Market implications and risk factors

The restart matters for European primary aluminum supply. Spain and Galicia seek industrial jobs and strategic metals output. Reliable power pricing remains the decisive competitiveness factor. As a result, long-term energy contracts are pivotal.

Alcoa explores long-term power contracts and onsite energy solutions. Grid upgrades and renewable sourcing could reduce volatility over time. However, execution risks include supply chain lead times and permits. Therefore, ramp discipline and cell integrity will be critical.

The Metalnomist Commentary

San Ciprian’s path hinges on bankable power and disciplined ramp. Watch transformer availability, anode supply, and cell relining schedules. Price-sensitive casthouse products could improve margins during restart.

India Launches First Private Military Aircraft Plant in Partnership with Airbus

Tata Advanced Systems

India has officially launched its first private military aircraft manufacturing facility, marking a significant milestone in its defense and aerospace sector. Tata Advanced Systems, in collaboration with Airbus, has unveiled the final assembly line for the Airbus C-295 military transport aircraft in Vadodara, Gujarat. This is a key development under India's “Make in India” initiative, aimed at boosting local defense manufacturing capabilities and reducing dependency on foreign suppliers.

Strategic Milestone for India’s Aerospace Industry

The Tata Aircraft complex, which is the first private plant in India to assemble military aircraft, will produce the Airbus C-295 in collaboration with Airbus Spain. The plant is expected to deliver its first C-295 aircraft by 2026, with more than 85% of the assembly and production of 13,000 components to be completed domestically. Out of the 40 C-295 aircraft planned, 16 will be assembled in Seville, Spain, with six already delivered to the Indian Air Force (IAF).

The C-295 program is part of India's broader efforts to modernize its military equipment. As the largest customer for the Airbus C-295, India plans to purchase a total of 56 aircraft. This move aligns with the Indian government’s ongoing push to encourage private defense manufacturing, a sector that has traditionally been dominated by state-run entities.

Airbus's Expanding Role in India

Airbus, which views India as a critical resource hub, is not only involved in aircraft assembly but is also expanding its footprint in India through the manufacturing of components, engineering development, and maintenance, repair, and operations (MRO) services. The company is investing in various aspects of the Indian aerospace ecosystem, including pilot training and academic partnerships to strengthen local expertise and human resources.

The Tata-Airbus collaboration is a reflection of India's growing role as a key player in the global aerospace and defense industry, with both companies working toward creating a self-sufficient defense manufacturing base within the country.

Envision AESC Launches Battery Plant in France to Boost Global EV Supply

Envision AESC

Strategic Expansion into Europe

Chinese battery manufacturer Envision AESC has inaugurated a 10GWh per year battery plant in Douai, northern France. The facility’s initial phase will produce enough cells to power 200,000 electric vehicles annually, supporting Europe’s growing demand for clean transportation. While the company has not disclosed timelines for subsequent phases, the project represents a significant step in its global manufacturing strategy.

Envision AESC’s goal is to achieve a total global battery capacity of 400GWh per year by 2026, with operations spanning 13 battery manufacturing bases across China, Japan, the US, the UK, France, and Spain. This broad geographic footprint is designed to meet the surging needs of the rapidly developing EV sector and strengthen resilience against supply disruptions.

Scaling Capacity Amid Geopolitical Shifts

The company is simultaneously doubling its production in Cangzhou, China, to 20GWh per year by 2026 and constructing a gigafactory for lithium iron phosphate batteries in Navalmoral de la Mata, Spain, scheduled to start output in 2026. These moves align with a wider trend among Chinese battery firms expanding overseas in response to geopolitical pressures, including higher US import tariffs and the EU’s Critical Raw Materials Act.

Envision AESC is a joint venture between Chinese-owned Envision and Japanese-owned AESC, itself a collaboration between automaker Nissan and component maker Tokin. By strategically positioning manufacturing assets within key markets, the company aims to enhance customer proximity, reduce logistics risks, and align with local regulatory requirements.

The Metalnomist Commentary

Envision AESC’s French facility marks another decisive step in the localization of battery supply for Europe’s EV market. By combining European production with a global expansion strategy, the company is hedging against trade tensions while capturing market share in high-growth regions. The challenge ahead will be scaling production efficiently while adapting to evolving environmental and trade policies in multiple jurisdictions.

Stellantis and CATL Partner to Construct a €4.1 Billion Battery Plant in Spain

CATL

Stellantis, a prominent Franco-Italian-American automotive manufacturer, together with Chinese battery industry leader Contemporary Amperex Technology Co. Ltd (CATL), has announced an ambitious joint venture. The partnership plans to invest €4.1 billion ($4.3 billion) to establish a lithium iron phosphate (LFP) battery production facility in Zaragoza, Spain. Scheduled to commence operations by the end of 2026, the plant is projected to achieve an impressive output capacity of up to 50GWh annually. This capacity could supply electric vehicle (EV) batteries to approximately 1 million vehicles per year, based on an average battery pack size of 50kWh.

Strategic Expansion and Future Goals

This new venture builds on a prior preliminary agreement between Stellantis and CATL, further solidifying their collaboration. Strategically positioned adjacent to Stellantis’ existing automotive plant in Zaragoza—which has historically manufactured over 14 million Opel and Citroen vehicles since 1982—the battery facility represents a significant step toward supporting Stellantis' electric mobility ambitions. CATL, already operating two battery plants in Germany and Hungary and constructing another in Hungary, contributes extensive expertise and capacity to the partnership.

Market Dynamics and Company Prospects

Despite recent challenges, including declining sales in the European Union and the U.S. and intense competition from Chinese EV manufacturers that led to the resignation of CEO Carlos Tavares, Stellantis remains committed to its electrification strategy. The company has set ambitious targets, aiming for 100% EV sales in Europe and 50% in the U.S. by 2030. This is part of Stellantis' broader strategy to adapt to shifting market demands and increase its stake in the global EV market, which includes recent joint ventures with other major players like Samsung SDI, TotalEnergies, Mercedes-Benz, and Leapmotor.

Europa Plant Drives 3Q Rise in Acerinox’s Stainless Steel Output Amid Challenges

Acerinox

Acerinox, a prominent Spanish stainless steel producer, saw an uptick in its steel output in the third quarter of 2024, driven by the reactivation of the Acerinox Europa plant in Los Barrios, Spain. This follows a significant five-month shutdown due to workers' strikes earlier this year. The plant’s resumption in production helped the company achieve a rise in melt shop production from the second quarter, signaling a positive recovery. However, despite the production increase, Acerinox's revenues in the stainless steel segment faced a decline due to ongoing challenging market conditions, particularly in Europe and the US.

Key Highlights from Acerinox’s Third-Quarter Performance:

• Production and Shipments Growth: Acerinox’s stainless steel output rose by 11.85% year-on-year, totaling 473,000 tons in the July-September period. The ramp-up of the Acerinox Europa plant contributed to a notable 23.2% increase in shipments from the previous quarter.

• Market Challenges: Despite the rise in shipments, the company’s stainless steel revenues declined both on a quarterly and yearly basis. Finished stainless steel prices have decreased, primarily due to reduced alloy surcharges, although the base price in the US remained stable.

• EBITDA Decline: The group’s earnings before interest, taxes, depreciation, and amortisation (EBITDA) for the third quarter fell by 9% year-on-year, amounting to €86 million. The group's performance in the January-September period also showed a significant retreat, with EBITDA down by 47%, reflecting the industry's overall weakness.

• High-Performance Alloys Struggles: Acerinox’s high-performance alloys segment experienced a 46% year-on-year decline in EBITDA, driven by a sharp drop in nickel prices. However, the segment saw a 5.9% increase in output, reaching 18,000 tons in the third quarter.

• Strategic Moves and Diversification: In response to persistent weakness in the European market, Acerinox has diversified its portfolio. The company’s recent acquisition of Haynes aims to strengthen its foothold in the US market, especially focusing on higher value-added products. Additionally, Acerinox sold its loss-making subsidiary, Bahru Stainless, for $95 million to improve its balance sheet.

Outlook for Acerinox in Q4 2024:

Acerinox anticipates that market conditions will remain challenging in the fourth quarter. Geopolitical uncertainties, macroeconomic volatility, and market seasonality are expected to impact demand for stainless steel, particularly in Europe. The company has curtailed production at the Acerinox Europa plant in response to low demand and declining prices. However, Acerinox expects its EBITDA for the final quarter to surpass third-quarter levels, thanks to the sale of Bahru Stainless, though adjusted EBITDA is projected to remain lower.

The global stainless steel industry continues to grapple with high production costs, low sales prices, and declining demand, particularly in Europe. Meanwhile, the aerospace sector and the high-performance alloys market are expected to provide some relief for Acerinox as the company focuses on diversifying its revenue streams.

BAE Systems Defence Demand Lifts Sales and Strengthens Backlog

BAE Systems

BAE Systems defence demand pushed the company to stronger sales and a larger order book in 2025. The UK defence group reported sales of £30.7bn, up 10pc from the previous year. Orders also reached £36.8bn, lifting backlog to £83.6bn. As a result, BAE Systems defence demand is becoming a clear signal of how geopolitical tension is feeding industrial growth.

This matters because BAE Systems sales growth is tied directly to rising military spending across Europe and beyond. Conflicts in Ukraine and the Middle East have increased urgency around fighter aircraft, defence systems, and military readiness. That is supporting both current production and future programme visibility. Therefore, BAE Systems defence demand now carries wider significance for the aerospace and defence supply chain.

Defence Metals Demand Is Rising Alongside Aircraft and Systems Output

Defence metals demand is also rising as major programmes expand. BAE’s portfolio uses titanium and aluminium in airframes and structures, while high-temperature alloys remain critical for engines. Infra-red emitters, lasers, and imaging systems also rely on minor metals such as gallium and germanium. Consequently, BAE Systems sales growth matters not only for defence primes, but also for metals and advanced materials suppliers.

The Eurofighter Typhoon adds another important layer to that story. Turkey’s planned acquisition of 20 Typhoon aircraft is expected to be worth £4.6bn to BAE. That programme supports a multinational industrial base across the UK, Germany, Spain, and Italy. As a result, BAE Systems defence demand is helping sustain both national and cross-border aerospace manufacturing.

Aerospace Alloy Demand Faces Opportunity and Labour Risk

Aerospace alloy demand should remain firm if BAE meets its 2026 sales growth target of 7-9pc. That outlook suggests the company still sees healthy programme momentum despite an already strong 2025. Suppliers tied to structures, engines, and advanced components may benefit from that continued growth. Therefore, BAE Systems sales growth is likely to keep supporting upstream metals demand.

However, labour disruption remains a near-term risk. Strike action continues at BAE’s Warton and Samlesbury sites in Lancashire, where parts for Typhoon and F-35 jets are produced. More than 1,000 workers are involved in the current dispute. Meanwhile, the gap between strong profits and contested pay talks could create operational pressure if the issue drags on.

The Metalnomist Commentary

BAE’s results show that defence demand is no longer a short-cycle boost. It is becoming a structural driver for aerospace manufacturing and strategic metals consumption. The bigger question now is whether supply chains and labour stability can keep pace with the new defence growth cycle.

Alcoa aluminum output rises as alumina and bauxite slip

Alcoa Aluminum

Alcoa aluminum output increased in the second quarter despite upstream weakness and tariff pressure. The Brazil Alumar ramp-up offset delays at Spain’s San Ciprián smelter and stabilized smelting utilization. Management maintained 2025 aluminum production guidance at 2.3–2.5 million tonnes, signaling operational confidence. However, shipments lagged as the restart pause and trade frictions disrupted flows across key corridors. Alcoa aluminum output momentum nevertheless underpins a cautious but improving outlook for margins.

Tariffs reshape shipments and guidance

Tariffs continue to weigh on realized economics and delivery patterns across North America. Alcoa cut full-year shipment guidance to 2.5–2.6 million tonnes to reflect power and logistics headwinds. It also expects about $90 million of tariff costs in the third quarter, pressuring profitability. Canadian metal was redirected away from the United States to mitigate incremental import charges. Peers face similar headwinds, confirming broader cost inflation across global aluminum supply chains. As a result, Alcoa aluminum output strength must translate into disciplined commercial execution.

Upstream constraints and sourcing strategy

Bauxite and alumina production declined as the Kwinana refinery closure reduced available refining capacity. Even so, Alcoa kept 2025 alumina production guidance at 9.5–9.7 million tonnes, highlighting operational flexibility. To honor contracts, the firm will ship more alumina than it produces through third-party sourcing. This strategy preserves customer commitments while the San Ciprián restart progresses toward mid-2026 completion. Meanwhile, the Brazil Alumar ramp provides volume resilience across the smelting portfolio.

The Metalnomist Commentary

Alcoa is leaning on Alumar’s ramp and agile sourcing to bridge upstream gaps and tariff friction. Watch the cadence of San Ciprián’s restart, tariff pass-through in contracts, and regional premia trends. If physical tightness persists, disciplined sales mix could translate output gains into durable cash flow.

Alcoa Maintains 2024 Guidance as Third-Quarter Production and Revenue Climb

Alcoa

Alcoa Corporation, a leading U.S.-based integrated aluminum producer, upheld its 2024 production guidance for alumina and aluminum despite achieving increased quarterly production and revenue in Q3. The company continues to project aluminum production at 2.2-2.3 million metric tonnes (t) and alumina output at 9.8-10 million t, unchanged from prior estimates.

Third-Quarter Highlights

Aluminum production grew 5% year-over-year, reaching 559,000 t in Q3 2024 compared to 532,000 t in the same period last year. Aluminum shipments also rose slightly to 638,000 t from 630,000 t. Meanwhile, bauxite production declined to 9.4 million dry metric tonnes (dmt) from 10.7 million dmt a year ago. Alumina output decreased to 2.435 million t, down from 2.805 million t, with shipments falling to 2.052 million t.

Revenue and Market Dynamics

Alcoa’s Q3 revenue rose nearly 12% year-over-year to $2.9 billion, driven by higher alumina prices, which averaged $485/t compared to $354/t in Q3 2023. Aluminum prices also increased to $2,877/t, up from $2,647/t a year earlier. Third-party aluminum sales rose approximately 10% to $1.8 billion. Improved alumina pricing and lower raw material costs helped narrow segment losses to $11 million from $15 million in the same period last year.

The company posted $90 million in profits, a significant improvement from the $168 million loss reported in Q3 2023.

Strategic Developments

Alcoa raised its annual shipment forecast by 200,000 t to 12.9-13.1 million t, reflecting increased trading volumes. However, a wider spread between production and shipments emerged due to external sourcing of alumina amid the ongoing curtailment of the Kwinana refinery in Australia.

Alcoa is advancing a strategic partnership with IGNIS, a Spanish renewable energy investment firm. The agreement includes selling 25% of Alcoa's operations in Spain and a potential €175 million ($189 million) investment by Alcoa if required. The deal is contingent on government and employee support.

On 15 October, Alcoa signed a long-term supply agreement with Aluminum Bahrain (Alba) to deliver 1.5 million t of smelter-grade alumina over 10 years beginning in 2026, bolstering its position as a global alumina supplier.

Outlook

With strong alumina prices and strategic partnerships, Alcoa expects its alumina segment performance to improve by $30 million, driven by increased shipments and reduced production costs. As global aluminum demand remains steady, Alcoa’s ability to adapt through cost efficiency and partnerships positions it favorably for future growth.

EQ Resources tungsten output falls in 2Q25 as grades drop

EQ Resources

EQ Resources tungsten output declined in the second quarter on lower feed grades. EQ Resources tungsten output from Mount Carbine fell sharply, while Saloro ran at full capacity. As a result, EQ Resources tungsten output mixed weak Australian volumes with stronger Spanish performance.

Mount Carbine grades weigh on production and throughput

EQR produced 6,983 mtu at Mount Carbine, down 61pc year over year. The mine processed 54,573t of ore, 27pc lower than last year. Feed grade averaged 0.17pc tungsten versus 0.44pc a year earlier. Management continues its expansion to access higher-grade ore bodies. However, the site will still process lower-grade ore during the build-out.

Saloro offsets declines; financing and downstream push

EQR produced 28,203 mtu at Spain’s Saloro mine, up 21pc year over year. The operation ran at nameplate after a 2024 ramp-up. Companywide output reached 35,187 mtu, down 15pc on the year. EQR secured $7.5mn royalty financing from Oaktree to extend Saloro north. The firm also pursues downstream value via Tungsten Metals Group. The planned purchase includes a 4,000 t/yr ferro-tungsten plant in Vietnam. Closing has been delayed since the November 2024 agreement.

The Metalnomist Commentary

Tungsten supply remains tight outside China, so grade recovery at Mount Carbine matters. Stable Saloro output and Oaktree funding help bridge the gap. Downstream alloy capacity, if closed, could hedge price cycles and lift realized margins.

Almonty tungsten plant funding accelerates Sangdong build and U.S. defense supply

Almonty

Almonty tungsten plant funding reached $90mn in its Nasdaq debut. Almonty tungsten plant funding will prioritize the Sangdong tungsten oxide facility. The company sold 20mn shares on 14 July. Meanwhile, proceeds will also support working capital.

Sangdong focus and defense offtake

The funding accelerates construction of the Sangdong tungsten oxide facility. Almonty holds a binding supply deal with Tungsten Parts Wyoming. The agreement targets domestic defense applications for tungsten oxide. Therefore, the project strengthens U.S. tungsten supply-chain resilience.

Market outlook and corporate positioning

Demand for tungsten in defense and technology is rising. As a result, offtake visibility and pricing stability could improve. The company is shifting its incorporation to the United States. Meanwhile, it operates projects in South Korea, Portugal, and Spain. Investors view Almonty tungsten plant funding as a lever to diversify supply.

The Metalnomist Commentary

Almonty’s equity raise ties capital to near-term processing capacity and long-term defense demand. Execution now depends on plant delivery, oxide qualification, and steady feedstock. Watch construction milestones and contract ramp with TPW.

China Challenges EU's EV Tariffs at WTO

In a significant escalation of trade tensions, China has filed a formal complaint with the World Trade Organization (WTO) over the European Union's (EU) imposition of provisional anti-subsidy duties on imports of Chinese battery electric vehicles (BEVs). Beijing argues that the EU's actions lack a solid factual and legal foundation and violate WTO rules, potentially undermining global efforts to combat climate change.

A spokesperson for China's Ministry of Commerce expressed strong dissatisfaction with the EU's decision, urging immediate rectification. "The EU's preliminary ruling is baseless and disrupts the stability of China-EU economic and trade relations, as well as the supply chain of electric vehicles," the spokesperson said.

The European Commission had imposed these additional duties on July 5th, targeting three major Chinese EV manufacturers. BYD, Geely, and SAIC faced new tariffs of 17.4%, 19.9%, and 37.6%, respectively. The duty on SAIC, China’s largest automaker, was slightly reduced from an initial 38.1%. The final determination on these duties, which could last for five years, will be made by EU member states.

SAIC, a key player in the EV market, with significant exports to the UK, France, Germany, and Spain, has formally requested a hearing on these temporary countervailing duties. The Chinese government also called for expedited consultations with the EU to reach a mutually agreeable solution.

China, which accounted for 59% of global BEV sales in the first half of the year, sees this move as detrimental not only to its economic interests but also to the broader goal of global climate cooperation. Meanwhile, Europe’s EV market growth has slowed significantly, largely due to the reduction of fiscal subsidies, slow progress in building charging infrastructure, and broader economic challenges.

Ferroglobe Idles French Plants Amid Weak Silicon and Ferro-Alloy Demand

Ferroglobe

Ferroglobe, a major producer of silicon and ferro-alloys, has idled its French operations for the fourth quarter of 2024, citing weak demand from the steel and aluminum industries. The decision, announced earlier than initially planned, reflects a challenging environment for shipment volumes across all product segments.

Production Curtailment and Market Challenges

The idling of Ferroglobe’s French plants aligns with the company’s strategy to maximize rebates on its energy agreements. However, CEO Marco Levi cautioned that depressed prices in Europe have elevated the company’s absorption costs, compressing profit margins.

In the third quarter, Ferroglobe shipped 56,910 tons of silicon metal, relatively flat compared to 57,031 tons in the same period last year. However, shipments declined 9.5% quarter-on-quarter, primarily due to weaker volumes in Europe, the Middle East, Africa, and the U.S., stemming from subdued demand in the automotive and construction sectors.

The company reported an average selling price of $3,401/t (€3,161/t), buoyed by stronger U.S. market premiums. Still, the lag between index prices and realized prices in other regions impacted profitability.

Future Investments and Trade Developments

Ferroglobe is advancing plans for a new brownfield silicon metal plant in the U.S. The facility, which could achieve a minimum capacity of 60,000 tons, is expected to be operational by early 2028. The project is in its permitting phase, which will take approximately 18 months before construction begins.

The company also sees a glimmer of hope in the U.S. ferro-silicon market. On November 1, the U.S. Department of Commerce implemented preliminary anti-dumping rates against imports from Brazil, Malaysia, and Kazakhstan. Ferroglobe is lobbying for similar trade defense measures in the EU to level the playing field against low-cost suppliers from Kazakhstan and Egypt.

Segment Highlights and Cost Efficiency

Silicon-based alloy shipments dropped 2% year-on-year to 45,489 tons, reflecting muted EU steel demand. Manganese alloy shipments rose 14.4% year-on-year to 64,495 tons but fell 21% quarter-on-quarter due to market slowdowns. Ferroglobe achieved a 3% reduction in raw material and energy consumption costs, driven by lower energy prices in France and Spain, and falling manganese ore costs. The company remains cautiously optimistic about a market recovery in the second half of 2025 as demand stabilizes across key industries.

ICL and Dynanonic Partner to Boost LFP Cathode Production in Europe

BMW

Israeli specialty minerals company ICL and Chinese battery cathode producer Shenzhen Dynanonic have formed a joint venture to manufacture lithium iron phosphate (LFP) cathode active material (CAM) in Europe. This collaboration aims to enhance the region’s battery supply chain and support the growing demand for EV and energy storage solutions.

Repurposing the Sallent Site for LFP Production

ICL has repurposed its Sallent site in Spain, previously used for potash production, to develop the new LFP cathode production facility. The joint venture represents a strategic shift towards sustainable battery materials. The companies will initially invest €285 million ($293 million), with ICL holding an 80% stake and Dynanonic the remaining 20%.

Strengthening Europe’s Battery Supply Chain

The new LFP facility will boost Europe's domestic production of battery materials, reducing reliance on Asian imports. The demand for LFP cathodes has surged due to their cost-effectiveness, safety advantages, and long cycle life compared to nickel-manganese-cobalt (NMC) alternatives. The European EV market and energy storage sectors will directly benefit from this development.

ICL and Dynanonic’s Strategic Vision

By leveraging ICL’s European presence and Dynanonic’s expertise in LFP cathode technology, the joint venture positions itself as a key player in the battery materials industry. This investment aligns with Europe’s push for battery independence and sustainable energy solutions.

ETM to buy Spanish tin, tantalum, niobium mine at Penouta

Energy Transition Minerals

ETM to buy Spanish tin, tantalum, niobium mine in a court-run auction. The €5.2mn deal secures Penouta’s mine and plant. The move strengthens EU supply of critical minerals and diversifies risk from non-OECD sources.

What ETM gets and how fast it can restart

Penouta is Spain’s only developed tin, tantalum and niobium mine. Section B covers tailings reprocessing and remained active until October. ETM can restart Section B quickly, subject to routine approvals. The site produced 603t of concentrates in 2023. Sales included 519t of tin and 110t of tantalum-columbite. Nearby logistics and existing circuits lower restart capex and execution risk.

Permitting risks and the strategic upside

Section C mining was suspended after environmental litigation in 2023. ETM plans a reinstatement bid through appeal or a new application. The process will require full administrative and environmental reviews. However, success would unlock primary ore and scale. That upside supports EU battery, aerospace and electronics supply chains. ETM to buy Spanish tin, tantalum, niobium mine also aligns with EU Critical Raw Materials goals.

Penouta strengthens price discovery for European tin and tantalum. It also diversifies niobium sourcing beyond Brazil. Meanwhile, local jobs and rehabilitation of legacy wastes aid social license. ETM to buy Spanish tin, tantalum, niobium mine positions Galicia as a strategic hub in Europe’s critical minerals map.

The Metalnomist Commentary

Penouta’s quick Section B restart could generate cash while permits advance. Yet, timing on Section C remains the swing factor for value. Watch the permitting cadence and offtake traction with European OEMs.