Glencore to Pay $152 Million Fine to Settle Bribery Investigation in Congo

Swiss-based commodities giant Glencore has agreed to pay approximately $152 million to settle a criminal investigation into bribery related to its business activities in the Democratic Republic of Congo (DRC). The case centers on a 2011 incident involving a Congolese public official and a business partner who allegedly bribed the official in connection with the acquisition of mining stakes.

The Swiss Attorney General's office found that Glencore had failed to implement adequate organizational measures to prevent the bribe. Although Glencore did not admit to these findings, the company has agreed not to appeal the summary penalty order issued by Swiss authorities.

The settlement includes a CHF$2 million ($2.3 million) fine and an additional $150 million in compensation, which reflects the estimated financial benefit obtained by Glencore’s business partner from the transaction. Notably, Swiss investigators did not find evidence that Glencore employees were aware of the bribery scheme, nor did they conclude that the company directly profited from the deal.

The bribery case is linked to the business partner's acquisition of minority stakes in two mining firms in the DRC from the state-owned mining company, Gecamines. According to Swiss authorities, these shares were purchased at a price "less than their value," raising concerns about the fairness of the transaction.

In a related investigation by Dutch prosecutors, the case was dismissed following the resolution of the Swiss probe. Glencore’s operations in the DRC include its Mutanda Mining subsidiary and the Kamoto Copper Company, a joint venture with Gecamines. The company has recently faced challenges in the region, with copper production falling by 9% and cobalt output dropping by 27% in the first half of 2024 compared to the previous year.

This settlement marks another chapter in Glencore's ongoing legal and regulatory challenges as the company continues to navigate the complex and often controversial landscape of global mining and trading.

Switzerland Adopts EU’s Russian Aluminium Ban in Sanctions Alignment

Russian aluminium

Federal Council Moves to Restrict Russian and Belarusian Aluminium Imports

Switzerland has adopted the EU’s Russian aluminium ban, aligning with Brussels’ 16th sanctions package targeting Moscow’s industrial exports. The Focus Keyphrase "Switzerland Russian aluminium ban" marks a significant shift in Swiss trade policy, historically characterized by neutrality, as the country intensifies its stance against Russian aggression.

The Federal Council announced it will implement all remaining relevant EU sanctions, including a ban on Russian primary aluminium imports and a prohibition on chromium ore exports to Russia. These measures aim to reduce materials that contribute to Russia’s military and technological advancement. Switzerland imported approximately 173,000 tonnes of unwrought Russian aluminium in 2023, according to Global Trade Tracker.

Belarusian Aluminium Also Targeted as Sanctions Widen

In parallel, Switzerland will enforce additional sanctions on Belarus, citing its complicity in the Ukraine war. These include a ban on Belarusian primary aluminium imports and expanded restrictions on dual-use and military-enhancing goods.

The Council emphasized that aligning sanctions with the EU is intended to prevent circumvention via Belarus, ensuring a more unified and effective European sanctions regime. This harmonization reduces the risk of Russian commodities entering EU markets indirectly through Swiss or Belarusian channels.

Strategic Impact on European Aluminium Supply Chains

The Swiss ban on Russian aluminium imports adds further pressure on Europe’s primary aluminium supply, which is already constrained by energy costs and limited regional production. Traders and manufacturers must now reassess sourcing strategies, particularly for unwrought aluminium, as the region seeks alternatives from non-sanctioned producers such as Norway, Canada, and the Middle East.

Meanwhile, the ban on chromium ore exports to Russia may impact specialty alloy production and stainless steel supply chains, especially those tied to aerospace and defense markets.

The Metalnomist Commentary

Switzerland’s adoption of the Russian aluminium ban underscores a growing consensus in Europe on restricting key industrial imports tied to Moscow. As sanctions converge and enforcement tightens, metals traders and manufacturers will need to recalibrate logistics and risk strategies in a rapidly evolving geopolitical landscape.

Constellium’s Earnings Drop in Q3 Due to Swiss Flooding Impact

Constellium’s

France-based aluminium producer Constellium has reported a decline in earnings for the third quarter of 2024, with the effects of severe flooding in Switzerland continuing to impact its operations. The flood, which affected the company’s facilities in the Valais region of Switzerland, had significant repercussions across several key business divisions, especially aerospace, transportation, and automotive.

Financial Performance in Q3

For Q3 2024, Constellium posted earnings before interest, taxes, depreciation, and amortisation (EBITDA) of €110 million ($119 million), marking a 35% drop from the same period last year. Additionally, revenue fell by 5% to €1.6 billion. The company shipped 352,000 tonnes of aluminium products in the third quarter, a decrease of 5% year-over-year.

Impact of the Flooding in Valais

The flooding in late June severely disrupted operations at Constellium’s Sierre and Chippis facilities, both located in the Valais region, which are vital to its aerospace, automotive, and packaging operations. The impact was particularly felt in Constellium’s aerospace and transportation division, which saw its EBITDA fall by 41% year-over-year to €47 million. The automotive structures and industry division also suffered, with its EBITDA plummeting 61% to €10 million. Similarly, Constellium’s packaging and automotive rolled products division saw a 9% drop in EBITDA to €61 million for the quarter.

Revised Full-Year Forecast

As a result of the operational disruptions and broader market challenges, Constellium revised its full-year EBITDA forecast, lowering it to €580-600 million from the previous estimate of around €710 million. CEO Jean-Marc Germain acknowledged the significant challenges faced during the quarter, citing weakened demand across multiple end markets and the continued impact of the flooding at the company’s Swiss facilities.

“The team faced significant challenges in the third quarter, including increased demand weakness across several of our end markets, and the ongoing impact from the flood that occurred back in late June at our facilities in the Valais region in Switzerland,” Germain said. “We continue to face uncertainties on the macroeconomic and geopolitical fronts, and we have a demand environment that has continued to weaken throughout the year, which accelerated during the third quarter and has now spread to most of our end markets.”

Outlook for Constellium

Despite these setbacks, Constellium is working to mitigate the impact of the flooding while navigating global market uncertainties. The company’s ability to recover will depend largely on the stabilization of macroeconomic conditions and the resumption of full operations at its Valais facilities.

EXAR Commits $40 Million to Expand Argentina’s Leading Lithium Plant

EXAR

Joint Venture to Pilot Direct Lithium Extraction at Cauchari-Olaroz for Higher Efficiency and Sustainability

EXAR to Introduce DLE Technology at Cauchari-Olaroz

EXAR, a joint venture formed by Lithium Argentina, Ganfeng Lithium, and Argentina’s state-owned JEMSE, has announced a $40 million expansion at its Cauchari-Olaroz lithium facility. This move will pilot Direct Lithium Extraction (DLE) technology to enhance recovery rates and reduce processing time.

DLE can shorten lithium brine processing from 12 months to just one week. The pilot plant, designed to produce 5,000 tonnes per year, will test the method before full-scale implementation. Although EXAR has not set a construction timeline, the company emphasized its focus on efficiency and sustainability.

Cauchari-Olaroz Leads Argentina’s Lithium Output

In 2024, EXAR became Argentina’s top lithium carbonate producer, delivering 25,400 tonnes. The company forecasts 2025 production to rise between 30,000 and 35,000 tonnes at Cauchari-Olaroz, already the country’s largest lithium operation.

By piloting DLE at this critical facility, EXAR aims to stay ahead in the race to modernize lithium extraction methods. The approach supports Argentina’s broader push to boost domestic processing and minimize environmental impact.

Strategic Partnership Backs Innovation and Growth

The EXAR partnership brings together global expertise and local access. Ganfeng Lithium contributes technical know-how from China, Lithium Argentina offers Swiss-based project oversight, and JEMSE ensures alignment with national development goals.

As demand for battery-grade lithium carbonate surges worldwide, EXAR’s investment could establish Argentina as a leading supplier of sustainably sourced lithium.

China's Jiayuan to Secure Copper Cathode Supply from Swiss Firm IXM for Lithium-Ion Foil Production

Guangdong Jiayuan

Guangdong Jiayuan, a leading Chinese copper foil producer, has reached an agreement with Switzerland-based trading firm IXM to purchase a significant quantity of copper cathode feedstock. The deal, valued at approximately 5.066 billion yuan ($694 million), is set to support Jiayuan’s expansion of refined copper foil production, which is critical for lithium-ion batteries, copper-clad laminates, and printed circuit boards.

Details of the Copper Cathode Purchase Agreement

The agreement between Jiayuan and IXM will see the Chinese company secure 60,000 tons of copper cathode from IXM’s Geneva operations between December 2024 and November 2025. Additionally, Jiayuan will purchase 10,000 tons of cathode from IXM’s Shanghai branch during 2025. The price of the copper cathode will be determined through a negotiated pricing methodology, which will be finalized when both parties sign the contract.

Jiayuan, with a production capacity of 100,000 tons per year of refined copper foil, has seen steady growth in its production. In the first half of 2024, the company produced 24,000 tons of copper foil, marking a slight increase of 0.1% year-over-year. This agreement will ensure a steady supply of high-quality copper cathode to meet the growing demand for copper foil in key sectors such as electric vehicle (EV) batteries and electronic components.

China's Booming Copper Foil and NEV Industries

China’s refined copper foil production capacity reached 1.6 million tons per year in 2023, a 51% increase from the previous year. Notably, the production capacity for lithium-ion copper foil—used in batteries for electric vehicles—rose sharply by 68%, reaching 950,000 tons per year in 2023. With China’s new energy vehicle (NEV) market expanding rapidly, the demand for lithium-ion copper foil is expected to grow significantly. Industry experts predict that deliveries of lithium-ion copper foil in China will reach 1.1 million tons per year by 2025.

The Chinese NEV industry is experiencing robust growth, with production rising by 35% to 11.345 million units in the first 11 months of 2024. Sales of NEVs have also surged, increasing by 36% over the same period. As the NEV market continues to expand, the demand for copper, particularly copper foil for lithium-ion batteries, is expected to increase, further driving the need for stable copper supply agreements like the one between Jiayuan and IXM.

Copper Market Trends and Prices

On December 12, 2024, Metalnomist-assessed grade-A copper cathode prices, based on the London Metal Exchange (LME) official cash prices, were in the range of $40-60 per ton cif Shanghai. These prices remained flat compared to December 10, but they had dropped from the previous range of $45-60 per ton observed on December 5 due to a rebound in copper prices during the week. The fluctuating prices highlight the importance of securing stable supply contracts for manufacturers like Jiayuan as copper remains a critical commodity in the transition to a low-carbon economy.

EU and UK Move Toward Linking Carbon Markets

EU and UK

The EU and UK have formally agreed to work toward linking their carbon emissions trading systems (ETS), a move expected to benefit both industries and climate policy alignment. The announcement, made during a summit in London, emphasized that a EU and UK carbon markets link would support fair trade and reduce carbon leakage between jurisdictions. According to the joint statement, such a link would also exempt both regions from their respective carbon border adjustment mechanisms (CBAM), providing a more level playing field for domestic industries while maintaining environmental ambition.

ETS Link Could Unlock Significant Economic Gains

The linking of the EU and UK carbon markets could generate significant cost savings. UK Prime Minister Keir Starmer claimed British businesses could save £800 million in EU carbon taxes, while a recent industry-commissioned study projected up to €1.2 billion in savings from lower hedging costs due to improved market liquidity. While there is no timeline for implementation, market participants note that linking the Swiss ETS to the EU’s system took nearly a decade. Still, the potential economic efficiency and regulatory clarity have made the EU and UK carbon markets discussion a top priority for energy-intensive sectors across Europe.

Shared Climate Goals, Independent Ambitions

The agreement stressed that neither side should be constrained from pursuing more ambitious climate goals. The UK’s ETS remains guided by the legally binding Climate Change Act and its Paris Agreement commitments. The UK targets a 68% GHG reduction by 2030 and 81% by 2035, compared to 1990 levels. The EU aims for a 55% net reduction by 2030 and is still shaping its 2035 benchmark. Despite regulatory differences, both jurisdictions reaffirmed their commitment to net-zero emissions by 2050. The agreement also includes cooperation on hydrogen, CCS, biomethane, and a potential UK entry into the EU’s internal power market—further aligning EU and UK carbon markets within a broader clean energy framework.

The Metalnomist Commentary

The potential linkage of EU and UK carbon markets signals a return to pragmatic climate diplomacy. While structural alignment will take time, the economic and environmental incentives suggest both sides are committed to meaningful integration—setting a precedent for future carbon market collaborations globally.

Constellium Aluminium Earnings Rise Despite Flood Disruptions

France’s Constellium

Packaging and Automotive Segments Lead Quarterly Growth

France-based aluminium producer Constellium posted strong results for the first quarter, driven by robust demand in packaging and automotive rolled products. The company reported EBITDA of $186 million, up 26.5% year on year, underscoring resilient Constellium aluminium earnings despite ongoing challenges. Revenues rose 5% to $2 billion, although overall shipment volume declined by 2% to 372,000 tonnes.

Aerospace and Industrial Divisions Weaken on Demand Slowdown

Constellium’s aerospace and transport division recorded an EBITDA decline of 14% to $75 million, with shipments down 11%. The automotive structures and industry division also struggled, reporting a 50% EBITDA drop to $16 million as shipments fell 12%. However, these declines were partially offset by packaging and rolled products, which saw EBITDA rise 25% to $60 million with a 2% increase in shipments.

Recovery Continues After Swiss Flood Event

Operations in Valais, Switzerland, are still recovering from a severe flood in 2023 that impacted output across key product lines. Nevertheless, Constellium demonstrated operational resilience. CEO Jean-Marc Germain highlighted that packaging demand remains robust, helping offset weakness in other sectors and boosting Constellium aluminium earnings.

The Metalnomist Commentary

Constellium's ability to grow EBITDA amid operational setbacks and weak industrial demand highlights strategic positioning in resilient sectors. As infrastructure rebuilds and packaging demand persist, Constellium aluminium earnings are poised for stable performance through 2025.

Leclanché Introduces Niobium-Based Battery Cells for Industrial and Heavy-Duty EV Applications

Leclanché

Swiss energy storage company Leclanché is set to launch a new battery cell solution that leverages XNO, a niobium-based anode material developed by UK-based Echion Technologies. The XN50 battery cell will replace Leclanché’s current lithium titanium oxide (LTO) offering, with a focus on heavy-duty electric vehicles (EVs), rail, and marine applications.

The XN50 promises significant advancements over LTO cells, delivering 50% higher energy density and the ability to fast charge in under 10 minutes. Moreover, the niobium-based cells offer enhanced safety and performance, particularly in extreme weather conditions. These new cells will be available alongside Leclanché's existing nickel manganese cobalt (NMC) batteries, which use graphite anodes. Leclanché has been producing LTO cells since 2012 and introduced NMC batteries in 2019.

Niobium’s Growing Role in Battery Technology

Niobium, traditionally used in steel alloys and defense applications, is now becoming a key material in battery and fuel cell technologies due to its high energy density. Echion’s XNO materials, developed from mixed niobium oxide compounds and microparticle designs, are sourced from Brazilian niobium producer CBMM. The XN50 is the first battery cell to incorporate XNO on a commercial scale, offering manufacturers a cutting-edge solution for industrial and mass transportation use. Additionally, Echion has signed a deal with Taiwanese battery manufacturer GUS Technology to supply XNO for heavy-duty EV battery production.

As demand for niobium-based anode materials continues to rise, Echion plans to open a 2,000 t/yr XNO manufacturing facility this year to supply major cell manufacturers and original equipment manufacturers (OEMs). The versatility of niobium extends beyond batteries, with Canadian project developer NioBay Metals currently exploring niobium-titanium alloys for hydrogen fuel cells, presenting new market opportunities for niobium and titanium.