US New Tariffs Could Disrupt China's Non-Exempt Metals Exports

China Tariffs

New tariffs on lithium, rare earth magnets, and more could affect China's metal exports to the US.

The United States has announced significant new tariffs on Chinese imports, with a notable focus on metals. While many non-ferrous metals and ferro-alloys have been exempted, some crucial exports from China, like lithium, rare earth magnets, and lithium-ion batteries, will face substantial increases in tariff rates. These changes are set to have a lasting impact on the trade between the US and China, especially in the energy storage and electric vehicle (EV) sectors.

High Tariffs on Lithium-Ion Batteries and Energy Storage

As of April 9, the US will implement an 82.4% tariff on electric vehicle (EV) power batteries and a 57.4% tariff on non-EV lithium-ion batteries from China. This substantial hike in tariffs will make Chinese-made batteries far more expensive and may eliminate the possibility of Chinese EV power batteries entering the US market. US consumers will likely absorb these costs, potentially leading to inflation in the US battery industry, especially in the energy storage sector.

China’s lithium-ion battery exports to the US had already been on the rise, with a 59% increase in exports during the first two months of the year. However, these new tariffs are expected to curb the growth of China's battery exports to the US and negatively affect lithium feedstock prices, which are currently at a four-year low.

Impact on Rare Earth Magnets

Rare earth magnets are another key area of concern, as these products were not exempted from the new tariffs. Despite some uncertainty about the exact tariff implementation, producers in China are anxious about the potential 54% tariff on rare earth magnets. China remains the dominant supplier of rare earth magnets globally, and while the US does have some alternatives, they are mostly focused on military applications with significantly higher prices. This makes it unlikely that the US can fully escape its dependence on China, especially for civilian applications.

China’s exports of rare earth magnets to the US in 2022 accounted for 12% of its total exports, and while tariffs could reduce this figure, China’s competitive pricing in the civil sector ensures its continued dominance in the global market.

Copper, Aluminium, and Hafnium: Other Affected Metals

While copper and aluminium are exempt from this latest round of tariffs, the copper industry remains on edge. US authorities are investigating the potential security implications of copper imports, and there’s speculation that a tariff may be imposed in the future. As for aluminium, Chinese exports are already subject to a steep 70% tariff, which is expected to discourage further aluminium exports to the US, pushing Chinese suppliers to seek alternative markets.

Hafnium, a critical metal used in aerospace applications, will also face a significant tariff hike, moving from 34% to 79%. This change could prompt US buyers to source hafnium from other regions, like Rotterdam, where the tariff is considerably lower.

Conclusion

The new US tariffs on Chinese metals exports are set to reshape the global metals market, particularly for lithium-ion batteries, rare earth magnets, and hafnium. While some sectors, like copper and aluminium, may have avoided immediate tariff hikes, long-term implications for the industry remain uncertain. The tariff increase on key metal exports from China to the US is expected to alter supply chains and increase costs for US consumers, especially in the EV and energy storage markets.

US Strikes Escalate Middle East Tensions, Impacting Global Supply Chains

President Donald Trump

The United States has dramatically escalated the conflict in the Middle East. US forces conducted airstrikes on three Iranian nuclear facilities. President Donald Trump confirmed these strikes on Saturday evening.

Unprecedented Strikes on Key Iranian Nuclear Sites

The US action marks a significant turning point. US bombers targeted the Fordow, Natanz, and Isfahan nuclear sites. Fordow is a heavily fortified underground facility. Natanz and Isfahan are also critical to Iran's nuclear program. These facilities have faced Israeli strikes since June 13. The International Atomic Energy Agency (IAEA) had warned about potential nuclear safety hazards. It cautioned against targeting Iran's Bushehr nuclear power plant. Washington-based military experts believe only the US Air Force possesses the munitions to destroy Fordow effectively. This direct US involvement deeply impacts global supply chains.

Geopolitical Ramifications for Commodities and Shipping

The US involvement in the Israel-Iran war is a watershed moment. President Trump previously criticized US military adventures. However, he now claims eliminating Iran's nuclear program justifies US involvement. The markets are closely watching Tehran's reaction. Iran's 2.5 million b/d of crude, condensate, and products exports are immediately at stake. These exports primarily head to China. Furthermore, oil markets fear contagion. Retaliatory attacks could jeopardize shipping through the Strait of Hormuz. This choke point is vulnerable for global oil flow. Around 17 million b/d, or a quarter of seaborne oil trade, passes through it.

Rising geopolitical tensions frequently cause commodity prices to surge. Gold prices have already increased significantly. Silver and platinum have also seen gains. Supply chain disruptions are a major concern. The Middle East conflict poses risks for various industrial sectors. This includes critical minerals, vital for many industries. Therefore, instability in this region affects global trade.

The Metalnomist Commentary

The direct US involvement in strikes on Iranian nuclear facilities introduces new levels of uncertainty for global industrial supply chains. Beyond the immediate impact on oil, the long-term implications for critical mineral flows and broader logistics cannot be overstated. Businesses must now brace for potential disruptions and reassess their sourcing strategies.

Japan's Response to U.S. Tariffs: Reluctance to Retaliate Amid Economic Concerns

Japan, U.S. Tariffs

The Japanese government has expressed disappointment over the U.S.'s recent decision to impose a 24% tariff on Japanese imports. However, despite this setback, Japan appears unlikely to take retaliatory measures against the U.S., citing concerns about the potential negative consequences for its national security and economy.

Japan's Diplomatic Stance on U.S. Tariffs

Japanese Minister for Trade and Industry, Yoji Muto, conveyed the country's frustration with the U.S. tariff decision, stating that it was "regrettable" despite Japan's request to be excluded from the measure. However, Muto indicated that retaliatory tariffs might not serve Japan's best interests, leaving the door open for diplomatic negotiations instead. Japan’s reluctance to retaliate likely stems from the nation’s reliance on the U.S. for national defense, given the significant role of the U.S. military in Japan's security arrangements.

Focus on Domestic Support Rather Than Retaliation

In response to the new tariffs, Japan is prioritizing support for its domestic industries over direct retaliation. Prime Minister Shigeru Ishiba promised financial assistance for affected sectors to mitigate the economic impact of the tariffs. The Ministry of Economy, Trade, and Industry has also formed a task force to explore other potential measures to support industries, particularly in sectors hit hardest by the tariffs.

Impact on Japan’s Automotive Industry

The U.S. tariff decision comes at a time when Japan's automotive industry is poised to feel the brunt of additional trade barriers. On April 3, the U.S. is expected to impose a 25% tariff on automobile imports, a measure that would significantly affect Japan’s top export industry. In 2024, Japan exported approximately 1.3 million vehicles to the U.S., with the U.S. accounting for over one-third of Japan’s total passenger car exports.

Japan's Path Forward: Economic Resilience and Diplomacy

Although Japan has refrained from retaliating, the country is clearly focused on cushioning its industries from the blow of new tariffs. With automobile exports under threat and broader economic uncertainties ahead, Japan will likely continue to emphasize diplomatic avenues and domestic support mechanisms to safeguard its economic interests.

ReElement Technologies Eyes $150mn Boost for US Rare Earth Refinery

ReElement Technologies

Expanding US Rare Earth Refining Capacity

ReElement Technologies has secured a letter of interest from the US Export-Import Bank for up to $150mn in funding to expand its rare earth element (REE) and critical mineral refinery in Indiana. The investment would support the Marion Advanced Technology Center, enhancing its ability to produce 99.5% purity rare earth oxides and compounds, including neodymium, dysprosium, terbium, samarium, yttrium, and gadolinium. This expansion aims to strengthen the United States’ domestic capacity to refine critical materials essential for clean energy, defense, and advanced manufacturing sectors.

The Marion facility, acquired in 2023, spans 50,000m² and is being transformed into a commercial-scale refining hub capable of producing not only rare earth oxides but also lithium carbonate, lithium hydroxide, and transition metals. This scale positions ReElement as a potential leader in US-based REE processing.

Competing with Chinese Production Costs

ReElement also operates a 700m² Commercial Validation Facility in Noblesville, Indiana, which produces REEs and battery-critical elements. The company claims to be one of the few — possibly the only — US commercial entity capable of producing these high-purity materials at costs competitive with, or lower than, Chinese production. This capability could significantly reduce the nation’s dependency on Chinese supply chains, a key strategic priority amid rising geopolitical tensions and growing demand for REEs in electric vehicles, wind turbines, and military technologies.

Industry analysts note that achieving cost parity with Chinese producers has historically been a major barrier for US refiners. If ReElement can scale production while maintaining cost efficiency, it could reshape the competitive landscape in the global REE market.

Strategic Implications for US Supply Chain Security

The potential $150mn financing aligns with Washington’s push to localize critical mineral supply chains. Rare earth elements are essential for energy transition technologies and high-performance defense systems, yet the US currently relies heavily on imports for refined materials. By expanding domestic refining capacity, ReElement could play a pivotal role in mitigating supply risks, fostering industrial resilience, and supporting US manufacturing competitiveness.

Furthermore, the partnership with the US Export-Import Bank underscores growing federal willingness to financially back strategic resource projects. This model of public-private collaboration may serve as a blueprint for accelerating critical mineral infrastructure nationwide.

The Metalnomist Commentary

ReElement’s potential funding deal is a milestone in US rare earth refining ambitions. By scaling production to commercial levels while competing with China on cost, the company could become a cornerstone of America’s critical mineral strategy. The challenge will be ensuring that operational efficiency and market demand grow in lockstep with expanded capacity.

Perpetua Receives $6.9M from U.S. Army to Advance Domestic Antimony Supply Chain

Perpetua Resources

Stibnite Gold Project to Support Strategic Ammunition Material Testing

Perpetua receives $6.9M from U.S. Army for antimony testing, reinforcing the strategic role of domestic critical mineral development in national defense. The funding will support feasibility testing of antimony trisulfide production from the company’s Stibnite Gold Project in Idaho, targeting military-grade applications such as munitions and explosives.

This award builds on Perpetua’s existing $15.5 million contract from the Defense Ordnance Technology Consortium (DOTC) received in 2023. To date, the U.S. Department of Defense has allocated more than $80 million to the company, highlighting the urgency to establish a “ground-to-round” domestic antimony supply chain. The Stibnite deposit contains an estimated 148 million pounds of antimony, making it one of the most significant potential sources in North America.

U.S. Eyes Antimony Independence as China Cuts Exports

The U.S. relies heavily on imports for antimony, a critical mineral essential to over 300 types of munitions. However, China suspended antimony exports to the U.S. in December 2024, intensifying the need for secure domestic sources. Between January 2022 and October 2024, the U.S. imported 15,665 tonnes of antimony, with 22% coming from China.

As part of a broader national push, Perpetua recently received final federal permits for construction at the Stibnite site after being selected for expedited approval. The mine will produce both antimony and gold, making it one of the few U.S.-based projects directly aligned with defense-critical materials policy. As Perpetua receives $6.9M from U.S. Army for antimony testing, the company moves closer to restoring a vital supply chain link that has been offshore for decades.

The Metalnomist Commentary

Perpetua’s expanded partnership with the U.S. Army signals a turning point in reshoring defense-critical mineral supply. The Stibnite project could anchor a secure domestic antimony chain as global geopolitical tensions continue to restrict foreign access.

Panama Rejects Trump’s Demand for Free US Canal Access

Panama president, Jose Raul Mulino

Tensions Rise Over Control of Strategic Trade Routes

Panama's president, Jose Raul Mulino, firmly rejected US president Donald Trump's demand for free US military and commercial access through the Panama Canal. Trump, during an address on 26 April, asserted that the US deserves free passage, citing America's historic support in the canal’s construction.

However, Mulino clarified that the Panama Canal Authority (ACP), an autonomous entity, solely governs transit operations and fees. “The neutrality treaty and the organic law of the Panama Canal regulate all ship transits,” he stated. Mulino emphasized that no alternative agreement exists that would permit such free access.

The US and Panama jointly managed the canal until it was officially handed over to Panama in 1999. Since then, Panama has independently operated the canal under international law.

Trump's Renewed Focus on Canal Control

Trump’s recent remarks align with his broader agenda of challenging Panama's ownership of the strategic waterway. He reiterated claims that China holds undue influence over the canal's operations, an accusation he made both before and after assuming office in January.

Earlier this month, US Defense Secretary Pete Hegseth announced Washington’s pursuit of an agreement for increased warship access through the canal. Currently, US shipping lines account for 74% of the cargo volume passing through the canal, followed by Chinese lines at 21%, according to the ACP.

Moreover, Trump declared that the US is “reclaiming” the canal following BlackRock's announcement of plans to purchase two ports flanking the canal from Hong Kong-based CK Hutchison. Yet, Mulino denounced Trump’s claim as entirely false, defending Panama’s sovereignty and national dignity.

Rising Geopolitical Tensions

Meanwhile, Beijing expressed discontent over CK Hutchison’s intended sale, criticizing the move as a "betrayal of Chinese interests." China’s government has confirmed it is closely monitoring the situation, signaling potential diplomatic friction.

The battle over the Panama Canal symbolizes broader tensions in global trade, sovereignty, and geopolitical influence, with the US, Panama, and China all holding strong, conflicting interests.

US Antimony Montana Smelter Expansion to Boost Domestic Critical Mineral Processing

US Antimony

Capacity to Increase Six-Fold Amid Strategic Demand for Antimony

The US Antimony Montana smelter expansion marks a significant step in strengthening America’s domestic critical mineral infrastructure. US Antimony announced plans to increase capacity six-fold to 300 tons/month, reinforcing its role as the only operational antimony smelter in the United States. The $15 million project will support growing demand across flame retardants, defense applications, and lead-alloy battery manufacturing.

Domestic Processing Capabilities Get a Strategic Boost

The US Antimony Montana smelter expansion is particularly timely, given rising geopolitical interest in critical mineral self-sufficiency. Antimony plays a key role in military-grade materials and energy storage, making local refining capacity strategically vital. The company also restarted its Madero smelter in Mexico earlier this month, signaling broader regional efforts to scale up antimony processing in North America.

Investment Reflects Long-Term Critical Mineral Prioritization

The Montana expansion supports U.S. government goals under the Defense Production Act and various critical minerals strategies aimed at reducing import dependence. As China dominates global antimony supply chains, initiatives like the US Antimony Montana smelter expansion enhance national resilience while meeting industrial and defense-related demand.

The Metalnomist Commentary

The US Antimony Montana smelter expansion underscores a pivotal reshoring trend in the U.S. critical minerals sector. As antimony remains essential for both civilian and military supply chains, expanding domestic smelting capacity is a strategic and economic imperative.

China Imposes Export Restrictions on Key Metals to the US Amid Trade Tensions

China's ministry of commerce

China has announced a significant decision to suspend exports of several critical metals to the United States, escalating trade tensions between the two global economic powerhouses. Effective immediately, exports of gallium, germanium, and antimony are halted, and stricter inspections are enforced on graphite exports, as per the directives issued by China's Ministry of Commerce on December 3rd.

Trade Implications and US Reliance on Chinese Metals

China, categorizing these materials as "dual-use" items, indicates their potential use in both civilian and military applications. The immediate prohibition of gallium and germanium exports could severely impact the US economy, given its substantial reliance on these metals for various technological and industrial applications. According to the US Geological Survey, a complete cessation could lead to a sharp decline in the US Gross Domestic Product (GDP) by approximately $3.1 billion within a year, potentially reaching $3.4 billion if germanium exports are also completely halted.

The US has been heavily dependent on Chinese supplies of these metals, with antimony imports from China constituting 22% of total US imports from January 2022 to October 2024. Antimony trioxide imports from China during the same period accounted for 69% of the total US intake.

Global Supply Chain and Economic Ramifications

This strategic move by Beijing is a direct countermeasure against the United States' third crackdown on China's semiconductor industry, which involved placing restrictions on semiconductor exports to 140 Chinese companies just a day before, on December 2nd. These restrictions by the US have been described by China's commerce ministry as a politicization and weaponization of economic and technological issues, severely undermining the stability of global supply chains and international trade rules.

China's stern response also includes new legislations passed in late October and a comprehensive list issued in mid-November aimed at controlling exports of dual-use items. With the new measures, exports to any US buyers with military end-use are explicitly prohibited.

IperionX Launches Feasibility Study for U.S. Titanium and Rare Earth Project

IperionX Project

Titan Project Targets Domestic Titanium, Rare Earths, and Zirconium Supply

U.S.-based IperionX has initiated a definitive feasibility study (DFS) for its Titan Critical Minerals project in Tennessee. The project, backed by more than $60 million in U.S. federal funding, aims to support a domestic titanium supply chain. The DFS is scheduled for completion by the second quarter of 2026.

Titan contains titanium, zirconium, and both light and heavy rare earth elements (REEs). Notably, it holds critical materials like dysprosium, terbium, neodymium, and praseodymium, which are essential for national defense and advanced technologies. IperionX says Titan has the potential to become the largest U.S. source of heavy REEs.

U.S. Strategic Goals Back Critical Mineral Development

The U.S. government’s financial support reflects the national urgency to reduce dependence on foreign critical mineral imports. These elements are vital for electric vehicles, wind turbines, and military technologies. Meanwhile, the ongoing progress at IperionX’s Virginia titanium facility signals broader ambitions to onshore titanium metal production.

IperionX is uniquely positioned as both a miner and metal producer, aligning with the Department of Defense’s push for vertical integration of strategic materials. Its titanium output, paired with rare earths from Titan, would significantly enhance U.S. resource security.

Focus Keyphrase: Titan Critical Minerals Project

The Titan Critical Minerals project represents a major leap toward domestic critical mineral self-sufficiency. With a unique mix of titanium, zirconium, and rare earths, Titan stands out among U.S. mineral assets. IperionX’s dual approach—upstream mining and downstream processing—further strengthens the value chain.

As global supply chains shift and geopolitical risks rise, Titan’s progress could redefine the U.S. role in global critical mineral markets.

The Metalnomist Commentary

Titan is more than a mine; it is a strategic asset. IperionX’s development could reshape America’s critical materials future—especially for defense and clean tech.

US Shifts DRC Strategy in Play for Minerals

DRC Mining

Washington’s pivot to resource diplomacy marks renewed interest in African lithium and cobalt amid China rivalry

KoBold Eyes Lithium as US Reengages in the DRC

The US is renewing its focus on the Democratic Republic of Congo (DRC), with minerals now central to diplomatic strategy. KoBold Metals, backed by Jeff Bezos, is in talks to acquire the Manono lithium project—America’s first major DRC investment since 2016. Meanwhile, the DRC offered the US access to mineral assets in return for help against the M23 insurgents in the northeast. As a result, the Manono mine, with 400mn tonnes at 1.65% lithium oxide, could become a strategic anchor for US battery supply chains.

Tshisekedi Looks to Trump, Presses for Security-Mineral Pact

President Felix Tshisekedi asked for US assistance during a recent Fox News interview, linking mineral rights to security support. He emphasized the need for American pressure and sanctions to suppress rebel groups threatening national stability. In return, the DRC hopes to forge a long-term economic and security partnership with Washington that echoes past Cold War-era ties.

US Seeks Leverage as China Dominates Cobalt Market

China owns 21 of 28 major cobalt mines in the DRC, including Tenke Fungurume and Kisanfu, the world’s largest cobalt producers. However, Beijing has shown reluctance to provide military aid, prompting Kinshasa to court U.S. engagement as a counterweight. Meanwhile, the U.S. has eased corruption compliance rules, possibly paving the way for broader business involvement in high-risk jurisdictions.

The Metalnomist Commentary

America’s mineral diplomacy in the DRC may redefine Africa’s geopolitical alignment. KoBold’s bid is more than a business move—it's a signal of strategic intent. Yet risks remain. Any minerals-for-security pact will demand clear red lines to avoid entanglement in regional conflict. The DRC’s mineral wealth is unmatched, but its volatility is equally unparalleled.

Perpetua Resources Secures $425mn to Advance US Antimony Mining

Perpetua Resources

Financing Boost for Strategic Mineral Development

US miner Perpetua Resources has raised $425mn through two financing agreements, reinforcing its position in critical mineral supply. National Bank of Canada Financial Markets and BMO Capital Markets purchased 24.6mn shares for $325mn, with the deal expanded from an initial $300mn due to stronger-than-expected demand. In parallel, private investor Paulson & Co. committed $100mn in a private placement, providing additional momentum.

This funding strengthens Perpetua’s development of the Stibnite Gold project in Idaho, which contains an estimated 148mn lbs of antimony reserves along with gold. The project recently secured its final federal permit in May, following its selection for a federal fast-track initiative in April. These milestones pave the way for construction and production to begin.

Strategic Role of Antimony in US Supply Chains

Perpetua has also received over $80mn from the US Department of Defense, including $6.9mn from the US Army in May. This support underscores antimony’s critical role in military applications, flame retardants, and lead-alloy batteries. The US produced no marketable antimony in 2024, according to the US Geological Survey, highlighting the importance of domestic projects like Stibnite to reduce reliance on foreign supply.

As a result, Perpetua’s financing success comes at a pivotal moment for US mineral security. With construction nearing, the company is positioned to become a vital domestic producer of antimony, a material central to both defense and energy resilience.

The Metalnomist Commentary

Perpetua’s $425mn financing underscores investor and government recognition of antimony’s strategic importance. With the US currently reliant on imports, the Stibnite project could emerge as a cornerstone of reshoring efforts in critical minerals. However, success will depend on balancing environmental concerns with the urgency of strengthening national supply chains.

US Antimony Revenue Doubles as Critical Mineral Demand Surges

US Antimony

US Antimony Corporation achieved remarkable financial performance in the first quarter, with revenue more than doubling to $7 million compared to the same period last year. The mining and processing company's impressive growth reflects surging antimony prices and significant operational improvements across its North American facilities.

Strong Financial Performance Driven by Strategic Market Position

Antimony sales dominated the company's revenue stream, generating $5.9 million and accounting for approximately 84% of total quarterly revenue. This substantial increase transformed the company's financial outlook dramatically. Net income reached $546,524, a striking turnaround from the $322,768 loss recorded in the first quarter of 2023.

The company's success stems from its unique market position as the operator of North America's only two antimony smelters. This exclusive status provides US Antimony with significant competitive advantages in a market where antimony serves critical applications including flame retardants, military equipment, and lead-antimony alloys for batteries and cables.

Expansion Plans Signal Continued Growth Trajectory

US Antimony expects second quarter revenue to climb further following the April restart of its Madero smelter in Mexico. Meanwhile, the company announced ambitious expansion plans for its Montana facility, targeting a six-fold capacity increase to 300 tons per month. These operational enhancements position the company to capitalize on growing demand for this critical mineral.

Therefore, the company's strategic acquisitions continue to strengthen its supply chain. US Antimony plans to begin sourcing antimony ore from Alaska in the second quarter, following its $5.25 million acquisition of additional antimony mining claims in Alaska during January. This vertical integration strategy reduces supply chain risks while expanding production capabilities.

However, the company's smaller zeolite division remains a minor revenue contributor compared to its core antimony operations. As a result, US Antimony's growth strategy focuses primarily on expanding antimony production capacity and securing additional ore sources.

The Metalnomist Commentary

US Antimony's exceptional Q1 performance underscores the critical importance of domestic mineral processing capabilities amid global supply chain uncertainties. The company's monopolistic position in North American antimony smelting, combined with strategic capacity expansions, positions it to capitalize on sustained demand for this essential defense and industrial mineral.

Almonty Tungsten Oxide Supply for US Defense Strengthens Critical Mineral Chain

Tungsten Parts Wyoming

Strategic Agreement Secures Domestic Defense Supply

Almonty Industries has signed a binding deal to supply tungsten oxide for US defense programs through Tungsten Parts Wyoming (TPW). The agreement ensures a monthly minimum of 40t of tungsten oxide for three years, reinforcing North America's critical mineral security. The agreement includes a hard price floor and automatic annual renewal, though pricing details remain undisclosed.

Multi-National Processing and Supply Chain

TPW will send the tungsten oxide to Metal Tech, an Israeli processor, for conversion into tungsten metal powder. Processing will occur in Israel or the US, after which the powder will feed into TPW’s products used in US military programs. These include tungsten super shot, blasting media, and specialized components for defense-grade applications.

Sandong Mine to Anchor Long-Term Supply

Tungsten oxide deliveries will begin once Almonty launches commercial-scale output from its Sandong mine in South Korea. The mine targets 2.3mn t/yr of oxide in its first phase, with nearly half committed to US-based Global Tungsten & Powders. Almonty also signed an offtake agreement with South Korea’s SeAH for all molybdenum output from the same project.

The Metalnomist Commentary

This deal marks a critical step toward onshoring and diversifying tungsten supply chains for US defense. As geopolitical risks mount, multi-national processing and guaranteed offtakes offer essential redundancy and resilience.

USAR and PolarStar to Produce Neo Magnets in U.S. for Strategic Industries

USA Rare Earth

Rare Earth Partnership Targets Domestic Magnet Manufacturing and Supply Chain Security

USAR and PolarStar to produce neo magnets in U.S., marking a significant step toward restoring American capacity in rare earth magnet manufacturing. USA Rare Earth (USAR) has signed an agreement with Minnesota-based PolarStar Magnetics to produce neodymium-iron-boron (NdFeB) magnets for defense, EVs, robotics, wind energy, and other high-tech applications. The collaboration is focused on delivering DFARS-compliant magnets that meet stringent requirements for U.S. aerospace and military supply chains.

PolarStar will conduct early-stage magnet testing at USAR’s Innovation Lab in Stillwater, Oklahoma, where prototyping began in Q2 2025. The Stillwater plant, designed for 5,000 tonnes/year of sintered neo magnet production, is scheduled to begin commercial operations in the first half of 2026. This facility will become the first vertically integrated rare earth magnet plant of its kind in the U.S., sourcing materials domestically and supporting onshore value chains across electric mobility, appliances, and clean energy sectors.

Vertical Integration Supported by Round Top Rare Earth Deposit

USAR also holds mining rights to the Round Top Mountain deposit in West Texas, which contains 15 of the 17 rare earth elements alongside gallium, lithium, and other critical minerals. This upstream control gives the company a unique position to support mine-to-magnet production in the U.S., reducing dependency on Chinese supply chains. As USAR and PolarStar produce neo magnets in U.S., they strengthen national supply chain resilience and advance U.S. industrial policy objectives for critical materials independence.

The partnership is expected to evolve into a multi-year supply agreement, enhancing domestic rare earth value chains across sectors including defense, EVs, wind turbines, and advanced manufacturing.

The Metalnomist Commentary

The USAR–PolarStar deal reflects a broader U.S. strategy to onshore critical magnet supply chains amid rising geopolitical tensions. Vertical integration from Round Top to Stillwater offers a rare model of strategic autonomy in rare earths—a potential template for allied nations.

Trump Accuses China of Violating Preliminary Trade Deal

U.S, China

Trump Accuses China of Violating Preliminary Trade Deal

US President Donald Trump has accused China of breaching a preliminary trade agreement reached in Geneva earlier this month. During a White House press briefing, Trump claimed that Beijing "violated a big part of the agreement," though he provided no specifics. US trade officials and aides also offered no documentation or clarification, raising uncertainty over the deal’s durability.

The Geneva pact aimed to temporarily pause 125–145% tariffs, allowing limited breathing room for both sides until 10 August. However, exemptions remain narrow. For instance, China’s tariffs on US crude oil and LNG are still too high to restore meaningful trade flows. On the other hand, US propane exports could rebound due to lower effective tariffs and exemptions for key petrochemical feedstocks.

New Tariff Measures and Export Restrictions Stir Controversy

The trade dispute has evolved beyond traditional tariffs. The US Department of Commerce recently required NGL exporters to apply for export licenses for ethane and butane bound for China. The department cited concerns over dual-use military applications. Meanwhile, the Trump administration announced new fees of $50/net ton on Chinese ship operators and $18/net ton on Chinese-built ships, effective this fall.

Adding further strain, China lifted some tech export restrictions, particularly for cloud services, while maintaining limits on rare earth exports to the US. These minerals are crucial for defense and electronics, making the move highly strategic.

Legal Challenges Undermine Tariff Legitimacy

A major legal complication emerged when the US Court of International Trade ruled that Trump’s tariffs under the 1978 International Emergency Economic Powers Act (IEEPA) were unlawful. The court concluded the law does not grant unlimited presidential authority over tariffs. Although a federal appeals court has stayed the ruling, the incident casts doubt on Trump’s long-term tariff strategy.

Trump criticized the idea of seeking Congressional approval for tariffs, stating it would involve "hundreds of people" and months of delay. Despite legal headwinds, Trump continues to favor unilateral action and hinted at resolving disputes directly with President Xi Jinping in the near future.

The Metalnomist Commentary

Trump’s renewed hardline stance on China—just weeks after a ceasefire—highlights the fragile nature of trade diplomacy. While tariffs offer political leverage, legal and structural challenges are mounting. Industrial stakeholders must prepare for an environment where regulatory unpredictability, rather than open markets, defines global trade norms.

Ucore Secures $18M DOD Grant to Expand U.S. Rare Earth Separation Plant

Ucore Rare Metals

Strategic Metals Complex to Process Key REEs by 2026

Ucore Rare Metals has received $18.4 million from the U.S. Department of Defense to expand its rare earth separation plant in Louisiana, significantly advancing domestic REE processing capabilities. The Focus Keyphrase "Ucore rare earth separation plant" reflects the facility’s rising strategic value amid efforts to reduce U.S. dependence on Chinese supply chains.

This funding increases a previous $4 million agreement with the U.S. Army Contracting Command and will support Phase II development of the Louisiana Strategic Metals Complex (SMC) in Alexandria. The plant aims to commercially separate six critical rare earth elements — including neodymium, praseodymium, and dysprosium — all of which are vital for defense and clean energy technologies.

Kingston Prototype Expansion and Commercial Scale-Up

The DOD grant also backs the expansion of Ucore’s REE separation prototype facility in Kingston, Ontario, enhancing the company’s technical foundation for scaling commercial operations. Together, the Louisiana and Ontario sites will form an integrated North American rare earth supply chain.

Ucore’s SMC facility will process both light and heavy rare earth oxides at commercial volumes. These include materials used in permanent magnets for electric vehicles, wind turbines, and military applications. The company plans to begin construction and initial production in the second half of 2026.

Strengthening U.S. Rare Earth Independence

This investment demonstrates the U.S. government’s commitment to de-risking critical mineral supply chains, especially in response to China's tightening export controls on rare earths. Ucore’s project is one of the few in North America capable of separating multiple rare earth elements at commercial scale.

The development aligns with national defense priorities and the Inflation Reduction Act’s push to localize materials essential to the energy transition and strategic manufacturing.

The Metalnomist Commentary

Ucore’s rare earth separation plant, backed by the Department of Defense, signals a decisive step toward reshoring high-value critical mineral processing. With construction slated for 2026, the SMC could become a cornerstone of U.S. rare earth independence in an increasingly geopolitically charged market.

DRC-Rwanda Peace Deal Could Reshape Tantalum Supply Chains

DRC Rwanda

Focus keyphrase: DRC-Rwanda peace deal

The DRC-Rwanda peace deal marks a turning point for mineral supply chains disrupted by over a year of regional conflict. On June 27, ministers from both nations are scheduled to sign a US- and Qatar-brokered draft agreement aimed at stabilizing eastern DRC. The agreement outlines disengagement of armed groups, territorial safeguards, and regional economic integration — all critical for restoring confidence in monitored mineral flows, especially tantalum.

However, market sentiment remains cautious as details about US investments are unclear and security conditions on the ground are still unstable. Even with this draft peace deal, many buyers and refiners continue to hesitate, concerned about conflict minerals and opaque sourcing risks. The tantalum supply chain — heavily dependent on artisanal and small-scale mining (ASM) in North Kivu — faces ongoing due diligence challenges.

Peace Agreement Tied to Strategic Mineral Talks with the US

The DRC-Rwanda peace deal lays the groundwork for potential US-DRC mineral agreements, which could reshape global sourcing strategies. DRC President Felix Tshisekedi and Senator Pierre Kanda Kalambayi previously proposed a comprehensive minerals security deal with the US. The proposal includes extraction rights for US firms, control of the Banana deepwater port, a strategic stockpile, and military training partnerships.

If these proposals materialize, the DRC could see increased foreign investment in downstream processing, moving the country beyond raw mineral exports. However, the scope of actual US commitments and their implementation timeline remain unclear. This uncertainty limits the immediate bullish response from industrial buyers and critical mineral traders.

Tantalum Markets Still Disrupted by Rebel-Controlled Territory

Despite diplomatic progress, M23’s control of eastern DRC territory continues to threaten tantalum supply chains. The seizure of Rubaya, Goma, and Bukavu has cut off major sources of monitored tantalite. These areas are key hubs for tantalum exports, and their occupation has introduced smuggled material into global supply streams, complicating OECD-aligned due diligence efforts.

Until secure logistics corridors and third-party verification systems are reestablished, tantalum refiners and electronics manufacturers may turn to alternative suppliers or delay sourcing decisions. For now, smuggling and instability keep price volatility high and certification efforts constrained.

The Metalnomist Commentary

The DRC-Rwanda peace deal is a long-needed diplomatic step, but its impact hinges on actual demilitarization and foreign engagement. Unless mineral security frameworks become enforceable, trust in DRC-origin material will remain fragile. The tantalum market, in particular, demands verified sourcing channels to rebuild supply chain confidence.

Trump Sets Two-Week Deadline for US Attack on Iran

Trump & Ali Khamenei

President Trump set a two-week deadline for US attack on Iran, heightening regional tensions. He said negotiations could still change his decision. However, the warning underscored a credible threat of US military action.

Oil Market and Geopolitical Impact

Oil futures fell as markets reacted to the US attack on Iran deadline. August Brent dropped 2.7% to $76.72/bl in Asian trading. Meanwhile, traders prepared for volatility amid holiday closures. As a result, energy and shipping sectors braced for price swings.

Translating rhetoric into action remains uncertain. Trump has issued similar two-week ultimatums before without follow-through. Therefore, supply chain managers should track both political signals and market data closely.

The Metalnomist Commentary

Trump’s ultimatum illustrates how geopolitical brinkmanship can swiftly ripple through commodity markets. Stakeholders in metals and energy sectors must remain vigilant as policy decisions unfold.

L&F Mitra Chem LFP Investment Targets U.S. Battery Supply Chain Strengthening

Mitra Chem

Korean cathode maker backs U.S. startup for local LFP material production

L&F invests $9.9mn in Mitra Chem for LFP production

L&F Mitra Chem LFP investment marks a strategic move to support domestic lithium iron phosphate (LFP) cathode production in the U.S. L&F invested ₩14.5 billion (approximately $9.9 million) in Mitra Chem through a preferred stock agreement to build collaboration. Mitra Chem develops iron-based cathodes for electric vehicles, energy storage, and military battery systems. As a result, the partnership strengthens U.S. battery material independence amid rising geopolitical and policy-driven localization needs.

L&F, a key Tesla supplier of high-nickel cathodes, is expanding its portfolio amid shifting industry dynamics. Notably, Mitra Chem’s CEO Vivas Kumar is a former Tesla executive, further deepening strategic alignment.

Weaker cathode demand pressures L&F’s 2024 earnings

Despite the new U.S. investment, L&F reported a net loss of ₩365 billion in 2024.

This widened from ₩194 billion in 2023, driven by softer-than-expected demand in the global battery market.

However, the deal with Mitra Chem signals L&F’s long-term pivot toward the fast-growing LFP segment. LFP technology is gaining traction globally due to its affordability, thermal stability, and use in stationary storage solutions.

The Metalnomist Commentary

L&F Mitra Chem LFP investment may look modest in size, but strategically it is critical. By aligning with a U.S.-based cathode startup led by Tesla alumni, L&F positions itself for a diversified and resilient future. As LFP gains global market share, this move could help offset volatility in nickel-based cathode demand.

Israel-Iran Escalation Raises Fears for Oil Supply Disruption

Israel-Iran War

Missile Strikes Spark Fears of Regional Energy Crisis

Israel has launched multiple strikes on Iran's nuclear sites, prompting immediate retaliation from Tehran. Iran responded with missile barrages targeting Tel Aviv, marking the most severe escalation in the region in years. While oil infrastructure remains untouched for now, market analysts are alarmed by the potential spread of conflict across oil-producing territories.

Meanwhile, Israel has suspended production at two major natural gas fields and halted pipeline exports to Egypt. Oil traders reacted swiftly to the escalation, pushing Nymex WTI crude prices up 8% to $73/bl. Market participants fear that further Israeli action may extend beyond nuclear sites and into Iran's oil fields, significantly destabilizing the global oil market.

Iran’s Islamic Revolutionary Guards Corps vowed a "crushing response" after Israel's attacks decimated sections of Iran's air defenses and military command. Reports indicate damage to facilities near Isfahan. The use of ballistic missiles by Iran, which are harder to intercept than drones, has heightened global military and energy market concerns.

U.S. and Allies Brace for Broader Conflict Spillover

The U.S. National Security Council, led by President Donald Trump, convened to discuss possible measures in response to the oil price surge. U.S. forces in the Middle East are now on high alert. Former officials worry that a lack of diplomatic infrastructure could limit Washington’s ability to contain the crisis.

According to former U.S. assistant secretary of state Barbara Leaf, the conflict could spread to Iraq, the Gulf, and Egypt. She also expressed concern that Israel might pursue regime change in Iran, a move that could further destabilize the region.

The immediate leadership losses in Iran, including top military commanders, suggest the Israeli strikes were highly strategic. However, the long-term implications remain uncertain. As tensions intensify, energy markets will likely remain volatile, with risk premiums baked into every barrel traded.

The Metalnomist Commentary

The strikes between Israel and Iran mark a turning point in geopolitical risk for energy markets. The fact that oil infrastructure has been spared — for now — is cold comfort to traders and governments bracing for wider escalation. A prolonged conflict could drastically alter global oil flows, supply chains, and defense-related industrial materials.