Carbon capture tax credit guidance sets backup reporting path for CCS tax credits

US, IRS(Internal Revenue Service)

Carbon capture tax credit guidance from US agencies adds a contingency plan. The IRS and Treasury issued carbon capture tax credit guidance tied to EPA reporting readiness. Carbon capture tax credit guidance targets CCS tax credits verification by mid-2026. Therefore, project developers gain a clearer compliance route.

The agencies said the EPA must launch an electronic reporting tool by 10 June 2026. If the system does not launch, taxpayers can use an alternate process. Meanwhile, the guidance covers qualified carbon captured and stored starting this year. As a result, early movers can plan documentation with fewer gaps.

Backup pathway relies on third-party technical certification

The guidance allows taxpayers to submit an annual report to a qualified independent engineer or geologist. That professional must certify the reported capture and disposal. However, taxpayers still carry the burden of accurate measurement and recordkeeping. Therefore, operators will likely tighten monitoring, measurement, and verification workflows.

This approach creates a de-risking mechanism for projects tied to regulatory timelines. Meanwhile, it shifts scrutiny toward third-party credentials and auditability. As a result, demand should rise for independent technical sign-off capacity. Companies may also standardize data packages to reduce certification friction.

What the policy signal means for industrial decarbonisation investment

The guidance improves confidence in CCS tax credits during a critical buildout window. Carbon capture tax credit guidance reduces uncertainty for financing and construction schedules. Therefore, emitters in cement, steel, refining, and chemicals can keep CCS timelines intact.

However, the backup route may raise compliance costs versus automated EPA reporting. Meanwhile, certification bottlenecks could emerge if many projects file at once. As a result, developers will likely pre-book third-party reviewers and align metering systems early. This can also influence contract terms with CO₂ transport and storage partners.

The Metalnomist Commentary

This move protects CCS tax credits from an IT rollout risk. However, third-party certification may become a new project choke point. The operators who standardize MRV data now will capture the next wave of capital.

Elkem delves into silicon production augmented by carbon capture and reuse.

Elkem

The Norwegian silicon producer Elkem is exploring an innovative approach to silicon manufacturing that integrates carbon capture and reuse, aiming to scale this method industrially by the early 2030s. The Norwegian Ministry of Climate and Environment-owned organization, Enova SF, has allocated 31 million Norwegian kroner (approximately $2.9 million) to support a medium-scale pilot project in Kristiansand, Norway.

Traditionally, silicon metal is produced by reducing quartz or quartzite with a carbon source such as coke, coal, or wood chips in an electric arc furnace, where silica reacts with carbon to produce molten silicon metal and carbon monoxide gas. The carbon monoxide can further react with oxygen to form carbon dioxide (CO2).

Under Elkem's innovative Sicalo concept, the carbon emitted during this process will be captured and recycled back into the silicon production cycle as a reducing agent, nearly eliminating all direct CO2 emissions. Despite the standard process's high energy demand—requiring 10-14 MWh per ton of silicon metal—Elkem utilizes over 80% emissions-free electricity and manages to reclaim some energy.

Elkem is nearing completion of the first research phase, which includes laboratory tests on various subprocesses. The Research Council of Norway had earlier contributed NKr16 million to this phase of the project.

Earlier in January, Elkem announced the completion of its initial carbon capture and storage pilot at its Rana facility in Norway, which achieved capture rates of up to 95%.

Hydro and Rio Tinto Collaborate on Carbon Capture for Al Smelters

Hydro

Hydro and Rio Tinto have forged a partnership to develop and assess carbon capture technologies for aluminum smelters. This alliance aims to accelerate decarbonization within the aluminum industry.

Joint Research and Development Initiatives

The agreement entails shared research and development costs, laboratory test results, and on-site pilot program data. The goal is to create commercially viable carbon capture technologies. The companies will invest roughly $45mn over five years, conducting work at Hydro's Norwegian facilities and Rio Tinto's European assets. Both companies will continue independent decarbonization efforts. A key focus will be anode consumption, representing 75pc of a smelter's direct carbon emissions. Hydro's HalZero smelting process and Rio Tinto's Elysis joint venture with Alcoa are central to this research.

Accelerating Technology Development

"The current technology readiness level is low and requires significant development efforts to mature from laboratory to commercial scale," the companies stated. The collaboration aims to expedite this development to reduce greenhouse gas emissions from smelters.

Elkem’s Silicon Product Sales Decline Amid Weak Demand

Elkem’s

Norwegian silicon and ferro-alloy producer Elkem reported an 11% year-on-year drop in silicon product sales during the third quarter of 2024, reflecting decreased demand in key markets such as silicone, aluminium, and steel. Sales for the quarter totaled 96,000 tons (t), down from 108,000t a year earlier and 13.5% lower than the previous quarter (April-June).

Falling Prices in Europe and Beyond

Silicon and ferro-silicon prices saw declines in the third quarter due to weak end-user demand, particularly in Europe.

• Ferro-silicon: Prices started the quarter at €1,430-1,500/t (ddp NWE) and fell 7% to €1,330-1,390/t, averaging €1,415/t for the period. Prices have continued to drop in October amid ongoing weak demand from steel markets.
• Silicon: Prices remained flat but appear to have reached a floor in Europe, aligning with stabilization in China that led to production cuts in southern regions. Despite this, further declines are possible, especially given a bleak outlook for January-March 2025.

Financial Performance and Divisional Trends

Elkem’s overall EBITDA for the third quarter doubled year-on-year to NOK1.2bn ($109.6mn), driven by improved performance in its silicones division. However, January-September EBITDA fell 5% year-on-year to NOK2.9bn.

• Silicone Sales: Increased significantly to 105,000t, up from 77,000t a year earlier.
• Carbon Solutions: Sales dipped slightly to 68,000t, down from 69,000t.

Carbon Capture Advancements

In October, Elkem secured NOK20mn in EU funding for its Sicalo carbon capture project, supplementing an earlier NOK31mn grant from Norway's environmental enterprise fund, Enova. This funding supports Elkem’s efforts to enhance sustainability in its operations.

Outlook

While silicones provided a strong counterbalance, weak silicon product and ferro-silicon demand continues to challenge Elkem’s performance. The company is focusing on innovation, including its carbon capture initiatives, to navigate challenging market conditions and prepare for future growth.

Challenging Market Conditions Limit Low-Carbon Aluminium Premium

Aluminium

Demand for low-carbon aluminium in Europe has grown steadily in recent years, with consumers willing to pay a premium for sustainable products like Hydro's Reduxa, Alcoa's EcoLum, and Rusal's Allow, which have a carbon footprint of 4t or less per tonne of aluminium. Despite this, tough market conditions have capped how much more buyers are willing to pay over regional premiums.

During the summer, some low-carbon aluminium was offered with no premium over standard aluminium, as overall demand in the aluminium sector remained weak. The upcharge for low-carbon aluminium continues to hover at lower levels, a result of sluggish demand across various industries, including automotive, construction, and packaging. This is compounded by the fact that the European premium for standard aluminium remains relatively high, driven by tight global supply and a shift away from Russian metal.

While the current market dynamics are challenging, the long-term outlook for low-carbon aluminium is optimistic. In recent years, manufacturers have increasingly prioritized sustainability, with life-cycle assessments and specific carbon footprint goals driving demand in industries like automotive, packaging, and construction. The introduction of market regulations, such as the EU’s carbon border adjustment mechanism, is expected to further accelerate demand for low-carbon aluminium, pushing companies to emphasize sustainability even more.

However, a liquid, widely available spot market for low-carbon aluminium is still far off. Most of the material is supplied to select customers through contracts, though some is sold on the broader market during slower periods, such as the summer months.

To secure its place in the broader market, low-carbon aluminium will need to solidify its definition and standardize how producers calculate carbon footprints, taking into account the raw materials they use. Investments in new technologies, such as inert anodes and carbon capture projects, are expected to lower emissions further, ensuring that low-carbon aluminium continues to evolve and meet future sustainability standards.

ExxonMobil battery anode graphite deal signals new push into EV batteries

ExxonMobil

The ExxonMobil battery anode graphite deal marks a strategic shift toward advanced battery materials. The company will acquire the US assets and technology of Superior Graphite to gain a foothold in battery anode graphite. As a result, the ExxonMobil battery anode graphite deal aims to convert refining-derived carbon streams into higher value synthetic graphite products.

Synthetic graphite strategy builds on ExxonMobil refining strengths

ExxonMobil battery anode graphite deal execution leans heavily on the group’s refining skills and feedstock access. Synthetic graphite production can use carbon-rich streams from existing oil refineries, rather than rely on traditional mined graphite. Therefore, the company can integrate battery anode graphite manufacturing into current industrial sites with established utilities and logistics.

Producing synthetic graphite is also less labour intensive than conventional mining operations. This shift supports more predictable quality and supply for high performance battery anodes, especially for EV and energy storage systems. Meanwhile, Superior Graphite’s technology portfolio should help accelerate product qualification with cell manufacturers and automotive OEMs.

ExxonMobil expects demand for higher performance batteries and advanced graphite materials to grow significantly. As a result, the company views synthetic graphite as a natural extension of its downstream product chain. However, it still needs to prove that oil-to-anode economics can compete with incumbent graphite suppliers in Asia.

Energy transition focus must still compete for capital

The ExxonMobil battery anode graphite deal fits into a broader energy transition strategy built around familiar skill sets. The company is already investing in carbon capture, hydrogen and low-emission fuels that leverage existing process and project expertise. Therefore, battery anode graphite offers another pathway where ExxonMobil can combine scale, engineering and feedstock advantages.

Yet internal capital allocation remains disciplined and competitive. Management has repeatedly stressed that new technologies, including carbon capture and hydrogen, must compete with core oil and gas projects for investment. Likewise, the ExxonMobil battery anode graphite deal will need to deliver attractive returns against upstream and petrochemical options. This requirement could limit speed of expansion if market conditions or pricing weaken.

In addition, graphite remains a politically sensitive material within global battery supply chains. Western buyers seek alternatives to Chinese-dominated supply, but must balance cost, performance and ESG criteria. If ExxonMobil can demonstrate low emission synthetic graphite at scale, it may win premium contracts from OEMs under pressure to de-risk their anode sourcing.

The Metalnomist Commentary

ExxonMobil’s move into battery anode graphite shows how oil majors now seek value in critical mineral adjacencies rather than pure mining. Success will depend on whether integrated refinery-based synthetic graphite can match Asian competitors on cost and performance. Market participants should watch for offtake deals with cell makers, which will reveal how quickly this new graphite platform gains traction.

Canada fast-tracks LNG and mining projects to reshape its resource strategy

Canada fast-tracks

Canada fast-tracks LNG and mining projects as Ottawa launches a new tier of “National Interest Projects.” The first list includes LNG, nuclear, mining and port infrastructure that will receive accelerated permitting and financing support. As a result, Canada fast-tracks LNG and mining projects to revive growth, enhance energy security and pivot trade away from US dependence.

Canada fast-tracks LNG and mining projects with LNG Canada Phase 2 at the centre of the plan. The proposed second phase in British Columbia would double existing 14mn t/yr capacity if sanctioned. Therefore, Phase 2 would create one of the world’s largest LNG export facilities and strengthen Canada’s Pacific energy footprint. Prime minister Mark Carney frames these assets as “nation building” projects that can transform Canada into an energy superpower.

LNG, nuclear and port projects gain streamlined federal backing

The fast-track list extends beyond gas export capacity into nuclear and logistics infrastructure. The Darlington New Nuclear Project in Ontario, centred on small modular reactors, aims to provide firm low carbon power. Meanwhile, an expansion of the Port of Montreal container terminal will support higher trade volumes with “reliable” partners beyond the US. These projects anchor a broader strategy that links energy, trade and industrial policy.

Canada will use a new Major Projects Office to shepherd these investments through remaining approvals. The office will coordinate regulatory and permitting processes and help secure necessary financing. Therefore, projects on the “National Interest Projects” list can bypass some red tape that previously discouraged investors. Streamlined reviews must conclude within two years, a major change in a country known for slow project timelines.

Canada fast-tracks LNG and mining projects to support critical minerals and oil sands

Canada fast-tracks LNG and mining projects partly to strengthen critical minerals supply. Two western mining projects made the first list: an expansion at the Red Chris copper gold mine in British Columbia and the McIlvenna Bay Foran Copper Mine in Saskatchewan. These assets support copper demand from electrification, grids and data centres, while reinforcing Canada’s role in allied critical mineral supply chains.

Carbon capture plans also feature prominently in the next wave of projects. Carney highlighted the Pathways Alliance 22mn t/yr carbon capture and storage project for referral to the Major Projects Office. Pathways could link to a new pipeline serving multiple markets and underpin “enormous” emissions reductions. However, it would also facilitate new oil sands growth, tying climate strategy directly to hydrocarbon expansion.

Political dynamics around these decisions remain complex yet pragmatic. Alberta premier Danielle Smith described her recent meeting with Carney as “exceptionally productive” and urged Albertans to be patient. She claims “Albertans are finally being heard,” signalling provincial support if projects deliver tangible economic benefits. Meanwhile, Carney plans a second tranche of major projects by mid November, which could include additional energy and infrastructure schemes.

The Metalnomist Commentary

Canada’s move to fast-track LNG and mining projects shows how permitting reform, not only subsidies, now drives resource strategy. If the Major Projects Office delivers credible two year timelines, global capital may revisit Canadian LNG, nuclear and mining assets. Market participants should watch which projects enter the second tranche, since that list will reveal how aggressively Ottawa intends to balance hydrocarbons, critical minerals and climate goals.

LME Green Premium Plans Tighten Carbon Thresholds for Copper and Aluminium

LME, Green Premium meet

LME green premium plans are moving into a more credible second phase. The exchange has tightened carbon thresholds for both copper and aluminium after industry feedback. It has also widened the data sources used in price assessments. As a result, LME green premium plans now look more practical for the physical market.

The biggest change is stricter carbon eligibility. The copper threshold falls to 4t of CO2 per tonne from 5t. The aluminium threshold falls to 8t from 10t. These limits cover scope 1, 2, and 3 emissions. Therefore, green metal premiums will now require stronger carbon performance than before.

This matters because the first proposal risked looking too loose. Market participants argued that the earlier copper threshold sat above the global average for LME brands. That would have weakened the premium’s value as a sustainability signal. Consequently, the revised framework gives low-carbon copper and low-carbon aluminium clearer differentiation.

LME Green Premium Plans Now Rely on a Broader Market Data Set

LME green premium plans now use a broader and more realistic pricing hierarchy. The exchange originally planned to rely only on transactions executed through Metalshub. It will now also recognize deals on other approved spot platforms. As a result, the assessment process should capture a wider slice of market activity.

The inclusion of long-term contract data is another important step. The LME will now accept executed long-term contracts that fall within the observation window. That matters because green metal trade is not limited to spot transactions. Therefore, green metal premiums may gain stronger liquidity support over time.

The exchange also clarified its three-layer data structure. Category one uses qualifying executed transactions and is sufficient if liquidity standards are met. Category two uses visible executable bids and offers. Category three uses corroborated and auditable market evidence only when the first two categories are insufficient. Meanwhile, this hierarchy gives the market a more transparent rule set.

Governance and Publication Rules Will Decide Market Credibility

Governance will be critical to whether the premium gains trust. The LME said it has strengthened measures to improve independence and transparency. It will also allow a formal objection window after each publication. That means traders can challenge inputs, treatment, and calculation outcomes. Therefore, the market will have more oversight than in the original concept.

Publication frequency will remain cautious at first. The exchange plans to publish global monthly premiums initially. Regional premiums and more frequent assessments may come later if liquidity improves. As a result, LME green premium plans are starting with a controlled rollout rather than an aggressive launch.

The broader implication is significant for metals markets. Buyers increasingly want verified carbon differentiation, especially in copper and aluminium. Producers also want recognition for lower-emission output when the market can support a premium. Consequently, the revised model could help turn decarbonisation data into a tradeable pricing signal.

The Metalnomist Commentary

The LME is making the right move by tightening thresholds and broadening the data pool at the same time. A green premium only matters if it is strict enough to mean something and flexible enough to reflect real trade. If liquidity develops, this framework could become an important reference point for low-carbon metals pricing.

India's Tata Steel Tests Biomass at Ferro-Chrome Plant

India's Tata Steel has carried out a trial using charcoal as a feedstock at its domestic ferro-chrome unit, with it also open to importing the biomass product. It said it finished the trial on 20 July, in which it replaced conventional reductants such as coke in the Athagarh ferro-chrome plant in east India's Odisha state with carbon-neutral biomass charcoal, made from the low-temperature burning of wood in an oxygen-starved atmosphere. The carbon released during the ferro-chrome production process was balanced by carbon absorbed by the trees from which wood for the charcoal was taken, it added.

The trial was part of Tata Steel's sustainability drive to cut emissions from its operations. Athagarh has a ferro-chrome production capacity of 55,000 t/yr. The use of 5pc of biomass in production is expected to lower carbon dioxide (CO2) emissions by 0.08/t of ferro-chrome, Tata Steel said, which is about 6pc of total CO2 emissions from the plant.

The company is carrying out more trials and feasibility studies to stabilize the use of biomass in ferro-chrome production, it said, adding that plans to commercialize biomass use as a feedstock have not been finalized yet. Tata Steel might also consider imports of charcoal if it is commercially and technically feasible.

Tata Steel is also working with Australian resources firm BHP to adopt low-carbon iron and steel production. This includes using biomass and carbon capture and utilization technology, which could cut emissions by up to 30pc for integrated steel mills.

German industry decarbonisation pressure tests Berlin’s policy toolbox

German Bundestag

Germany’s German industry decarbonisation pressure is intensifying as policymakers reject extra steel support while insisting current tools are enough.

German lawmakers have rejected an opposition motion for more targeted steel decarbonisation aid, but they openly acknowledge mounting competitiveness risks. They point to weak export markets, rising energy costs and the phase-out of free EU ETS allowances as key drivers of German industry decarbonisation pressure. As a result, firms in steel and chemicals now face climate policy tightening just as global demand softens.

Meanwhile, Berlin is promoting an industry power price and extended power price compensation as its main answer to German industry decarbonisation pressure. Officials stress that grid fee cuts, carbon cost compensation and tax reductions are not “subsidies” but cushioning against global shocks. However, industry groups warn these measures remain fragmented and late compared with US and Asian incentive schemes. The debate now centres on how much state help is needed to keep core assets onshore.

Germany searches for a cheaper decarbonisation path

Germany’s government insists German industry decarbonisation pressure must be managed without choosing the “most expensive way”. Policymakers now frame circular economy, raw materials partnerships and smarter infrastructure as cost-control levers. Therefore, they emphasise more recycling, reduced raw material dependence and tighter integration with resource-rich partners.

However, the steel and fertilizers sectors argue that ETS tightening and CBAM timing create a dangerous cost squeeze. Industry leaders warn that phasing out free allowances before export support is clear risks accelerating plant closures. They call for extended free allocation, slower ETS tightening and faster clarity on CBAM-linked export schemes.

Steel, chemicals and CCS at the heart of the debate

Steel, fertilizers and chemicals sit at the core of German industry decarbonisation pressure, because they rely on high-temperature processes and constant energy. Officials argue that extending power price compensation signals to investors that Germany wants these sectors to stay and evolve. As a result, Berlin is pushing Brussels to widen eligibility and lengthen compensation schemes.

At the same time, the government wants a more permissive stance on carbon capture and storage. Economy officials argue that onshore CCS should become the norm, not the exception, if Germany wants deep industrial decarbonisation at realistic cost. Yet political resistance to CCS, local opposition and permitting delays still threaten timely deployment.

The Metalnomist Commentary

Germany’s battle with German industry decarbonisation pressure shows how climate ambition and industrial policy now collide in real time. Unless export support, power price relief and CCS rules are aligned quickly, Europe’s largest industrial base risks losing capacity before low-carbon investments mature. For metals, fertilizers and chemicals, the next legislative cycle will decide whether Germany remains a core production hub or shifts further toward managed deindustrialisation.

Novelis Achieves Breakthrough Hydrogen Test for Aluminium Recycling at Latchford Plant

Novelis

Hydrogen Melting Furnace Cuts Carbon Emissions by Up to 90%

Net Zero Innovation Portfolio and HyNet Project Drive Industry Decarbonisation

Novelis, a leading US-based aluminium rolling and recycling company, has successfully tested hydrogen as a fuel for a recycling furnace at its Latchford, UK facility. The company reported that using hydrogen in the melting process can reduce carbon emissions by up to 90% compared to conventional methods.

Hydrogen Technology Supports Major UK Decarbonisation Initiatives

These tests were conducted under the UK’s Net Zero Innovation Portfolio and the regional HyNet project, both of which focus on low-carbon hydrogen production and industrial CO₂ capture. Novelis has participated in HyNet since 2017, supporting the shift to greener metals manufacturing across northwest England and north Wales.

The firm will now expand hydrogen-based, recycled alloy production processes at multiple European plants. Novelis also plans to publish results as part of the UK Industrial Fuel Switching programme later in 2024, sharing key findings with industry partners.

Latchford Expansion Doubles UBC Recycling and Cuts Emissions

In July 2023, Novelis announced a $90 million investment to more than double the Latchford plant’s used beverage can (UBC) recycling capacity. New equipment—including a dross house, shredding and melting systems—will boost recycling capacity by 85,000 t/year and lower annual carbon emissions by over 350,000 tonnes.

This hydrogen breakthrough supports Novelis’ broader push for sustainability and could drive innovation across global recycling operations. Latchford plant manager Allan Sweeney emphasized that these results will inspire further hydrogen research and deployment company-wide.

EGA Aluminium Recycling Strategy Expands With Eco Green Acquisition

EGA Aluminium Recycling

EGA aluminium recycling strategy has advanced with Emirates Global Aluminium agreeing to acquire an 80% stake in Italian aluminium recycler Eco Green. The deal strengthens EGA’s recycled aluminium footprint in Europe and adds another foreign recycling platform to its growing international network.

Eco Green operates near Verona in northeast Italy. The company collects, sorts and distributes around 23,000 t/yr of aluminium scrap, while its nearby casting facility produces more than 20,000 t/yr of secondary aluminium sows.

EGA aluminium recycling capacity will expand further because Eco Green is planning an additional 15,000 t/yr of recycled aluminium capacity at its casting facility. This gives EGA both existing production and near-term growth potential in the European secondary aluminium market.

The acquisition shows that EGA is moving beyond its traditional UAE-based integrated aluminium model. Instead of relying only on primary metal expansion, the company is buying recycling assets closer to scrap sources and downstream customers.

Eco Green Adds European Scrap and Casting Capacity

Eco Green gives EGA direct access to Italian aluminium scrap collection, sorting and secondary casting capacity. This is strategically important because scrap access is becoming a core competitive advantage in aluminium.

Secondary aluminium requires far less energy than primary aluminium. It also helps customers reduce embedded carbon in automotive, packaging, construction and industrial products.

The Verona-area location gives Eco Green access to Europe’s mature industrial scrap flows. Italy is one of Europe’s major manufacturing centres, which supports steady availability of post-industrial aluminium scrap.

The casting facility also gives EGA a route to convert collected scrap into secondary aluminium sows. This strengthens value capture because the business is not limited to scrap trading or sorting.

The planned 15,000 t/yr expansion will deepen that position. It should allow Eco Green to process more scrap internally and support EGA’s broader recycled aluminium supply targets.

EGA Builds a Global Secondary Aluminium Platform

The Eco Green deal follows EGA’s acquisition of German recycling company Leichtmetalle in 2024. EGA later announced an expansion of that facility, which will increase capacity more than six-fold.

EGA also bought a majority stake in US secondary aluminium smelter Spectro Alloys in 2024. Since then, it has announced two expansions that will lift Spectro’s total capacity to more than 200,000 t/yr of secondary aluminium ingots and billets, from 110,000 t/yr previously.

Following the Eco Green acquisition, EGA aluminium recycling capacity will total more than 400,000 t/yr across the UAE, Europe and the US. A further 200,000 t/yr is under development.

This creates a more diversified aluminium business. EGA can still rely on its primary aluminium base in the UAE, but recycling gives it lower-carbon growth in key consuming regions.

The strategy also responds to customer demand. Buyers increasingly want aluminium with lower carbon intensity, traceable scrap inputs and regional supply security.

For EGA, recycled aluminium acquisitions offer faster market entry than building new primary smelting capacity. They also reduce exposure to energy-intensive growth and place the company closer to circular aluminium supply chains.

The Metalnomist Commentary

EGA’s Eco Green acquisition confirms that global aluminium competition is shifting toward scrap control and secondary capacity. The winners in low-carbon aluminium will not only own smelters; they will own regional recycling networks close to customers.

Glencore Aluminum Recycling Stake Expands South Carolina Remelting Footprint

Aluminum Scrap

Glencore aluminum recycling exposure has expanded after the global commodities trading group acquired a 45% stake in a planned South Carolina aluminum facility. Alumicore will operate the plant and retain the remaining 55% interest.

The investment builds on Glencore’s earlier financial support for the recycling and remelting project. Those earlier investments were aimed at securing marketing rights for the plant’s future production.

Glencore aluminum recycling growth reflects rising interest in secondary aluminum supply in the US. Recycled aluminum can reduce energy intensity, support lower-carbon material demand, and improve feedstock optionality for manufacturers exposed to volatile primary aluminum markets.

Alumicore Platform Adds Recycling and Remelting Scale

The South Carolina site will become part of Alumicore’s wider recycling network. Glencore said the new plant, together with Alumicore’s operations in Monessen and Pittsburgh, Pennsylvania, will lift the company’s total recycling capacity to more than 120,000 t/yr.

Few details were disclosed about the planned facility near Charleston. However, the project appears focused on recycling and remelting, which are increasingly important parts of the North American aluminum value chain.

Aluminum remelting capacity gives processors a route to convert scrap into reusable material for downstream manufacturing. This is strategically relevant as automotive, packaging, construction, electrical and industrial customers look for lower-carbon aluminum inputs.

The marketing-rights element is also important. Glencore is not only taking an equity position; it is strengthening access to future metal flows from the facility. That fits the trading house’s broader strategy of combining physical assets, offtake control and scrap supply channels.

Charleston Area Becomes a Secondary Aluminum Growth Point

The deal also deepens Glencore’s footprint in South Carolina. The company previously entered a joint venture with nonferrous scrap recycler Zeb Metals in 2023 to develop an aluminum scrap and dross recycling operation around Charleston.

That earlier project and the Alumicore investment point to a regional strategy. Charleston offers logistics advantages, industrial demand access and a potential platform for collecting, processing and marketing secondary aluminum products.

Aluminum dross and scrap recycling are becoming more valuable as producers and traders try to capture more metal units from waste streams. Better recovery can reduce reliance on primary aluminum and support circular supply for domestic manufacturers.

For Glencore, the South Carolina investment strengthens its position in a market where recycled metal is becoming more strategic. For Alumicore, Glencore’s stake adds a global marketing partner with deep metals trading and supply-chain reach.

The Metalnomist Commentary

Glencore’s investment shows that aluminum recycling is becoming a strategic materials business, not only a scrap trade. Control over remelting capacity, dross recovery and marketing rights will matter more as customers seek lower-carbon aluminum supply.

Trialco emissions case: $1mn settlement triggers compliance overhaul

Trialco

Trialco emissions case leads to a $1mn settlement and compliance overhaul. The secondary aluminum smelter agreed to changes at its Chicago Heights facility. The consent decree follows federal claims of hazardous air pollutant emissions. Trialco will implement an OM&M plan and pursue a new FESOP permit.

Consent decree terms and timeline

The consent decree mandates new monitoring and operating standards at Trialco. The company must assess its capture and collection system for improvements. A 30-day public comment period runs through 8 August before final filing. Trialco has already upgraded equipment to meet federal compliance requirements.

Industry impact and competitive dynamics

The Trialco emissions case signals stricter oversight for secondary aluminum smelters. EPA violations in 2021 and 2023 preceded this enforcement action. The company did not admit liability under the proposed decree. Operational changes may raise costs, but they reduce regulatory risk.

Market effects should remain limited unless further closures occur. However, buyers may see tighter specs and documentation on emissions controls. As a result, contracts could include monitoring clauses and audit rights. The Trialco emissions case underscores ESG due diligence across scrap supply chains.

The Metalnomist Commentary

This settlement pushes U.S. recyclers toward uniform OM&M and transparent reporting. Competitive advantage will favor plants with efficient capture systems and low-carbon power. Watch final decree language and any precedent for sector-wide FESOP conditions.

JSL stainless steel fabrication unit anchors India’s downstream growth

JSL stainless steel

The new JSL stainless steel fabrication unit marks a strategic shift into value-added manufacturing for India’s largest stainless producer. Jindal Stainless (JSL) is moving closer to end users by fabricating bridge girders and structural components for the country’s expanding infrastructure sector. The JSL stainless steel fabrication unit is designed to capture demand for sustainable, durable and high-quality solutions as India builds roads, rail, ports and urban transport systems.

JSL stainless steel fabrication unit targets India’s infrastructure boom

The new facility will produce 4,000 t/yr of fabricated stainless steel in the 2025-26 fiscal year. Capacity at the JSL stainless steel fabrication unit is then expected to rise to 18,000 t/yr in the following year as orders scale up. This rapid ramp-up signals confidence in long-term stainless demand from bridges, metro structures and public works.

The company invested about 1.25bn rupees ($14mn) in the plant, located at Washivali, Patalganga near Mumbai. Its 400,000 square foot footprint gives JSL room to add new product lines, automation and modular fabrication cells. As a result, the facility can support complex designs and tighter project schedules for engineering, procurement and construction contractors.

The JSL stainless steel fabrication unit is operated by Jindal Stainless Steelway, a wholly owned subsidiary. This structure integrates service centres, distribution and fabrication under one group, improving margins and delivery reliability. Meanwhile, fabricated output also deepens JSL’s relationships with infrastructure clients, shifting the business mix from commodity coil sales toward engineered stainless solutions.

Moving up the stainless value chain with sustainable components

The unit focuses on components that offer long life and low maintenance in harsh conditions. Stainless bridge girders, structural members and precision assemblies can cut lifecycle costs versus carbon steel in coastal or polluted environments. Therefore, the JSL stainless steel fabrication unit aligns with India’s push for resilient, low-maintenance infrastructure assets.

Downstream fabrication also supports more efficient use of stainless steel through optimized cutting, welding and design. This reduces waste and supports sustainability goals alongside durability and corrosion resistance. At the same time, domestic fabrication capacity helps Indian projects reduce dependence on imported components, improving supply security and project cost control.

The Metalnomist Commentary

JSL’s move into stainless fabrication is a logical next step for India’s largest producer as infrastructure spending accelerates. By combining scale in flat products with project-ready components, JSL can capture more value per tonne and differentiate on service, not just price. The key question now is how quickly the market absorbs 18,000 t/yr of fabricated capacity as India’s bridge and transport pipeline matures.

Cyclic VAC US magnet recycling partnership boosts North American circularity

Cyclic Materials

The Cyclic VAC US magnet recycling partnership marks a major step toward a circular rare earth magnet supply chain in North America. Under a new 10-year exclusive deal, Cyclic Materials will recycle swarf from VAC’s Sumter, South Carolina magnet plant. As a result, the Cyclic VAC US magnet recycling partnership links cutting-edge US magnet manufacturing with low-carbon, recycling-based feedstock.

Building a circular rare earth magnet supply in the US

The Cyclic VAC US magnet recycling partnership will capture byproducts from VAC’s US production lines. VAC produces neodymium-iron-boron magnets for automotive, defense, industrial and renewable energy uses. Meanwhile, the Sumter facility will anchor long-term supply for General Motors’ EV platforms under a decade-long agreement.

Cyclic will process the swarf into recycled rare earth raw materials with a reported 75pc lower carbon footprint than mined material. In parallel, Cyclic plans to invest over $20mn in a Mesa, Arizona plant. That facility is designed to process 25,000 t/yr of end-of-life magnet components from early 2026. Together, these projects push US magnet recycling beyond pilots and into industrial scale.

VAC’s US growth links primary offtake and recycling loops

VAC’s US expansion combines primary offtake, federal funding and recycling partnerships into one integrated ecosystem. E-VAC, VAC’s US subsidiary, has secured more than $200mn from the US Defense and Energy departments. These funds support the Sumter plant, which will ramp magnet output through the decade.

At the same time, VAC signed an offtake agreement with Pensana for mixed rare earth carbonate from Angola’s Longonjo project. That deal will support eVAC’s magnet output rising from 2,000 t/yr to 12,000 t/yr by 2029. The Cyclic VAC US magnet recycling partnership adds a second feedstock leg, closing material loops around swarf and, in time, end-of-life magnets. Therefore, VAC’s model blends upstream mining offtake with downstream recycling to reduce dependence on Chinese supply.

The Metalnomist Commentary

This partnership shows how serious US and allied players have become about mine-to-magnet-to-recycle value chains. If Cyclic can scale its Arizona facility as planned, swarf and scrap could evolve from waste streams into strategic feedstock. For OEMs like GM, a resilient US magnet base that mixes primary and recycled material will be central to long-term EV and defense planning.

Silicon Anode Technology Gears Up for Mass Production

HPQ Silicon

As the electric vehicle (EV) industry continues to expand, the demand for more efficient and sustainable battery technologies is reaching unprecedented levels. Among the leading innovations in this sector is the development of silicon anode materials, which are poised to revolutionize the market currently dominated by traditional lithium-ion batteries with graphite anodes.

HPQ Silicon Advances Toward Commercial Manufacturing

Canada-based HPQ Silicon is at the forefront of this shift, having recently inked an initial agreement to construct a facility in northern Germany for producing silicon-based battery anode materials. This collaboration with a German industrial partner aims to leverage HPQ's proprietary Purevap Quartz Reduction Reactor (QRR) technology. This technology not only manufactures high-purity silicon—the critical feedstock for anode materials—but also incorporates a carbon off-gas capture system to produce green synthetic fuels, thus enhancing the sustainability of the production process.

NanoGraf and Other U.S. Advances

In parallel, U.S.-based NanoGraf has launched Onyx, a silicon oxide anode material that claims cost parity with synthetic graphite while improving battery cell energy density by 30%. Such advancements are not only a testament to the potential of silicon anodes to enhance lithium-ion batteries but also reflect significant strides in reducing production costs and increasing stability.

NanoGraf's expansion includes a new plant in Flint, Michigan, supported by a $60 million grant from the U.S. Department of Energy. This facility is expected to dramatically increase production capacity, aiming to meet the growing demand for silicon anode materials necessary to power up to 1.5 million EVs annually.

Growing Silicon Anode Landscape

The landscape for silicon anode production is also becoming more geographically diverse. Companies like Sila Nanotechnologies and Group14 Technologies are investing heavily in facilities in Moses Lake, Washington, to ensure a steady supply of essential materials like silane gas and silicon-carbon composites. These developments are crucial as they contribute to the overall resilience and sustainability of the supply chain in the battery manufacturing sector.

As these technologies move from pilot scales to full commercial production, the industry faces several challenges, including scaling up production and managing supply chain dynamics. However, the ongoing investments and collaborations signal a robust commitment to overcoming these hurdles, promising a significant shift in the battery technology landscape by 2030.

EU BEV Industry Faces Challenges Without Strong CO2 Targets and Tariffs

The European Union's battery electric vehicle (BEV) market is at risk of losing ground to Chinese-owned brands unless the EU enforces its planned CO2 emission reduction targets along with newly proposed tariffs on Chinese-made electric vehicles (EVs). According to Transport & Environment (T&E), a leading environmental lobby group, these measures are essential to maintaining the competitive edge of European carmakers. The European Commission announced today that it will proceed with provisional tariffs on Chinese-manufactured EVs, signaling a critical step in addressing market imbalances.

CO2 Targets Key to Curbing Chinese BEV Imports

T&E's analysis shows a significant increase in the market share of Chinese-owned BEV brands, projecting that imports will constitute over 12% of the EU market this year, up from 8% last year. In contrast, non-Chinese brands are expected to see a slight rise to 13%. Without the enforcement of CO2 reduction targets, T&E forecasts that Chinese brands could capture nearly 15% of the market by next year, a trend that could weaken local BEV producers unless incentives are aligned to encourage a shift towards carbon-neutral vehicles.

The EU has established CO2 targets that require all automakers to achieve net zero emissions across their fleets by 2035, with interim milestones starting next year. However, recent debates and scrutiny have created uncertainty, prompting resistance from industry players. Aurelien De Meaux, CEO of Electra, a Paris-based charging start-up, emphasized the need for policy stability, stating, "The path to 2035, including specific CO2 milestones, was established in 2014 and 2019. We rely on this stability to make informed and effective investments."

Tariffs Alone May Not Protect Western BEV Producers

While the European Commission's provisional tariffs aim to level the playing field, a report by the Rhodium Group suggests that tariffs alone might not suffice. Chinese brands continue to enjoy profit margins that can absorb the costs of EU tariffs, whereas Western brands like Tesla and BMW, which manufacture in China, could see diminished profitability if tariffs are enforced. This dynamic has led to concerns that the tariffs may inadvertently harm European carmakers with overseas production facilities.

Additionally, China's response to these tariffs has included the potential for retaliatory measures on other goods, and its automakers are considering expanding production capacity overseas. Since 2022, 11 Chinese-owned EV plants have been planned in Europe, but only three have advanced past initial planning, primarily due to tariff uncertainties.

The situation is further complicated by instability in the battery production sector. According to T&E, 59% of the planned battery production capacity in Europe is "less likely" to proceed by 2030, adding to the challenges faced by the EU's BEV industry. Maintaining a clear and consistent regulatory approach will be crucial to incentivizing local production and reducing dependency on imports, ensuring the long-term sustainability of Europe's BEV market.

Airbus titanium demand recovery pushed back to 2027

Airbus

Airbus titanium demand recovery is now expected only from 2027, not in the near term. The Airbus titanium demand recovery will be delayed because the airframer must first work through heavy inventories built since 2024. As a result, Airbus titanium demand recovery will follow a contraction in 2026, even as long-term build rates remain ambitious.

Airbus expects titanium consumption to fall again in 2026 as it adjusts stock levels. Inventory accumulated in 2024 came from higher build-rate plans that later ran into supply bottlenecks. Engine shortages, fuselage delays and other critical component issues limited actual aircraft output in 2025. Therefore, the company will use 2026 to rebalance stocks rather than ramp up fresh titanium purchases. Airbus has not disclosed exact volume figures, but messages to suppliers clearly signal another year of destocking.

However, Airbus also warned the supply chain against excessive destocking that could overshoot. The company stressed that underlying demand for aircraft remains strong, with firm build-rate targets later this decade. If mills and forgers cut titanium output too aggressively, they may struggle to respond when orders normalize. Because aerospace-grade titanium products have long lead times, any deep cuts today risk a future supply crunch once Airbus resumes higher procurement.

Misaligned demand signals frustrate titanium suppliers

Titanium producers see a mismatch between Airbus’ forecast and normal demand timing. One producer highlighted the typical 18–24 month lag between upstream titanium melt and a completed aircraft. On that basis, even a backloaded ramp to 12 A350s per month by 2028 and 75 A320s per month by 2027 should already be influencing metal orders. This perceived misalignment signals just how elevated Airbus’ titanium inventory still is. Suppliers holding finished or near-finished parts also face strict programme designations, which limit their ability to reallocate material.

Meanwhile, Airbus is configuring a backloaded delivery profile for 2025. The company expects engine deliveries to recover before year-end, allowing completion of A320neo “gliders” currently waiting on final assembly lines. It is also preparing to integrate Spirit AeroSystems “extremely soon” to stabilise structures supply for the A220 and A350. Once these bottlenecks ease, physical aircraft output should better align with planned build rates, but titanium drawdowns will still prioritise existing inventory before new orders.

Scrap circularity becomes strategic in Airbus titanium demand recovery

Scrap circularity now sits at the core of Airbus’ titanium strategy. The company aims for more than half of scrap generated by Airbus programmes to be reverted and allocated back into its own supply chain by 2028. This policy supports security of supply and reduces exposure to primary melt volatility. It also dovetails with wider decarbonisation trends, as revert-based flows typically carry a lower embedded carbon footprint.

However, Airbus must balance this scrap strategy with Europe’s broader titanium ecosystem. The EU is a net exporter of aerospace-grade titanium scrap to the US under long-standing circular arrangements. If more revert is retained within Airbus programmes, less high-grade scrap may be available for external consumers. That could tighten regional revert markets and reshape flows into US melting routes over time. For titanium producers and scrap processors, Airbus’ policy will influence pricing, contract structures and investment decisions in revert sorting and upgrading capacity.

The Metalnomist Commentary

The delayed Airbus titanium demand recovery shows that aerospace cycles are now driven as much by system bottlenecks and inventory management as by headline build rates. For titanium mills and forgers, the next 12–24 months will be about survival through disciplined capacity planning, flexible contracts and deeper scrap integration. When recovery finally arrives around 2027, the suppliers that invested in revert circularity and closer programme partnerships are likely to capture the strongest margins.

Mining states smelter economics drive shift toward regional value chains

Africa Mining

Mining states smelter economics are reshaping how resource-rich governments think about value addition and industrial policy. At the FT Metals and Mining conference, African and Middle Eastern officials outlined ambitious mining growth plans while acknowledging tough smelter economics. As a result, they increasingly favour flexible regional chains, trading platforms and targeted downstream moves over politically symbolic but uneconomic smelter projects.

Zambia and Saudi Arabia recalibrate mining growth and downstream strategy

Mining states smelter economics sit at the heart of Zambia’s long-term copper strategy. The government is holding to its 3mn t/yr copper target by 2031 but plans to stay out of smelter investment decisions. Instead, Zambia will focus on policy tools such as export waivers and a state-run trading house from Lusaka. These mechanisms aim to manage excess copper concentrate and attract private capital into processing where returns justify risk.

However, Zambia still needs major capital commitments to reach its copper goals. The country produced 840,000t of refined copper last year and expects to exceed 1mn t in 2025. To close the gap with its 2031 ambition, Zambia is relying on projects like First Quantum’s $1.25bn Kansanshi expansion and other greenfield or brownfield investments. Therefore, mining states smelter economics will influence whether future capacity focuses on concentrate exports, tolling deals or selective domestic refining.

Meanwhile, Saudi Arabia is building mining into its third economic pillar under Vision 2030. The kingdom wants to raise sector GDP from $35bn to $75bn by 2035, with 70pc from downstream activities. It is rolling out a fully integrated aluminium chain, planning to triple phosphate output by 2040 and constructing a battery metals trading platform. These moves show how mining states smelter economics can support more sophisticated value chains rather than simple ore exports.

Saudi Arabia is also using international deals to secure feedstock and technology. Its PIF-backed Manara Minerals JV is investing abroad, while the kingdom builds rare earth links with partners such as MP Materials and explores refinery projects with global miners. As a result, the country is positioning itself as a regional processing and trading hub, rather than relying solely on domestic ore extraction.

Regional chains rise as smelter economics and policy risks bite

Mining states smelter economics are driving governments to prioritise regional infrastructure over isolated national hubs. Guinea’s $20bn Simandou iron ore project illustrates this shift, combining Chinese rail capacity, US locomotives and French signalling in a single integrated corridor. This model aligns with calls from industry leaders to optimise at regional scale, where transport, energy and port infrastructure can support multiple producers and customers.

However, building new smelters remains challenging when copper treatment charges sit at historically weak or even negative levels. Industry voices argue that in-country smelting often “doesn’t pay” in today’s market, especially once high power costs and carbon considerations are included. Therefore, mining states smelter economics are pushing policymakers to abandon hopes of easy “green premiums” and focus instead on cost competitiveness and stable regulatory frameworks.

At the same time, state miners are exploring commercial tools to capture more value without over-investing in heavy assets. In the Democratic Republic of Congo, Gecamines plans a dedicated trading arm to market its 20–49pc joint-venture production share. The company wants to revive its own brand, sharpen market knowledge and improve pricing power. If logistics and finance constraints ease, executives believe the firm could “easily” join the top tier of global copper operations.

The Metalnomist Commentary

The debate around mining states smelter economics is shifting from ideology to hard numbers. Resource-rich governments increasingly recognise that modern value chains may rely more on trading hubs, corridors and selective downstream assets than on politically attractive but uneconomic smelters. For investors, the most attractive jurisdictions will be those that match geological potential with pragmatic policies on infrastructure, energy and fiscal stability.