China Expands Export Controls on Critical Minerals Amid Trade Tensions

China Critical Minerals

New Restrictions on Tungsten, Indium, and Other Critical Metals

China has intensified its trade strategies by imposing new export controls on additional critical minerals. This move is seen as a countermeasure against higher tariffs recently imposed by the United States. The newly restricted materials include various metals and compounds of tungsten, indium, tellurium, bismuth, and molybdenum. The export restrictions came into effect on February 4, as announced by China’s Ministry of Commerce.

Impact on Global Supply Chains

This expansion of export controls follows the introduction of similar measures in 2023-24, which included key materials such as gallium, germanium, graphite, and antimony. With the recent addition, the scope now covers more crucial metals used in various industries globally. According to industry estimates, China holds a dominant share of the global supply for metals like tungsten and bismuth. For instance, it is the world’s largest producer and exporter of tungsten, controlling nearly 80% of the global market. Similarly, China is responsible for 70-80% of the world's bismuth supply, which further underscores its influential role in the global supply chain.

The new export controls will allow China greater flexibility in deciding which countries can receive these critical minerals. Market participants have indicated that the export restrictions could drive up global prices, especially for tungsten and bismuth, due to China's near-monopoly on these materials. This is likely to cause disruptions for industries that rely heavily on these metals, from electronics to energy production.

Global Repercussions and Market Shifts

The broader implications of these controls may be felt across various sectors. As China continues to tighten its grip on critical mineral exports, consumers outside of China will face challenges in securing alternative sources of supply. However, some experts suggest that this move might spur increased investments in local production capabilities in non-China markets, as countries seek to reduce their dependence on Chinese supplies.

In the short term, global markets will likely experience higher prices for the affected minerals, particularly as exporters must follow a stringent verification process before shipping these critical materials. The procedural delays and uncertainty about permitted shipments will add to the volatility of the market.

Conclusion: Strategic Maneuver in Global Trade

China's latest export controls reflect a growing trend of resource nationalism, where nations leverage their dominance in critical industries to secure economic and political advantages. These measures come amidst heightened trade tensions, particularly with the United States, and are designed to protect China’s national security and economic interests. As the global demand for these minerals continues to rise, China’s role in the critical metals supply chain remains pivotal, making it essential for businesses worldwide to monitor these developments closely.

US Moves to Diversify Metal Supply with New Legislation

US Metal

The United States is taking proactive steps to reduce its reliance on China for critical minerals by introducing three new pieces of legislation. Congressman Rob Wittman, a Republican leader of the critical minerals policy working group, announced the bills this week, which aim to develop alternative supply chains for key minerals vital to technology, defense, and energy sectors.

Earth Sciences and Co-operation Enhancement Act of 2024

One of the key pieces of legislation is the Earth Sciences and Co-operation Enhancement Act of 2024, which seeks to fund international collaboration to diversify the critical mineral supply chain. This bill allocates $3 million for the 2025 fiscal year, aimed at financing research to locate new mineral resources and foster partnerships between US universities, private-sector companies, and scientists. The bill’s objective is to enhance cooperation with international partners and reduce the US's dependence on foreign-controlled resources.

Amendment to the Export Reform Control Act of 2018

Another significant bill, the Amendment to the Export Reform Control Act of 2018, proposes the introduction of export controls on black mass (recycled lithium-ion battery material) and swarf (by-products from magnet manufacturing). The legislation mandates that foreign entities seeking to export or re-export these materials will need a license. This move is designed to improve the US’s control over the recycling and recovery of critical minerals such as lithium, cobalt, and nickel from used batteries, a growing source of essential materials for various industries.

Securing Essential and Critical US Resources and Elements Minerals Act of 2024

The Securing Essential and Critical US Resources and Elements Minerals Act of 2024 rounds out the new legislative package by establishing a reserve to stabilize prices for critical minerals. The bill proposes a board of governors to oversee private-sector market makers who will be authorized to buy and distribute critical minerals, helping to maintain price stability and market-oriented practices. This reserve would be updated annually to ensure it covers the most critical minerals for the US economy.

These legislative moves come in response to the increasing political and economic pressure surrounding the US's reliance on China for critical minerals. Recent trade tensions have exacerbated this issue, with China suspending exports of gallium, germanium, and antimony to the US in early December. The new bills reflect the growing urgency to establish a more resilient and independent mineral supply chain, ensuring that the US can better meet its technological and industrial needs while mitigating the risks of supply disruptions.

UK-Canada Critical Minerals Partnership Targets Secure Supply Chains

UK-Canada Partner on Critical Minerals

Strengthened Cooperation in Critical Minerals and Semiconductors

The UK and Canada have committed to expand cooperation on critical minerals and semiconductors to secure supply chains. UK Prime Minister Keir Starmer and Canadian Prime Minister Mark Carney met in Ottawa this week, signing a joint statement to advance collaboration. Their plan centers on supply chain resilience for critical minerals and semiconductor technology, both vital to clean energy and digital industries.

The agreement underscores growing concerns about global resource security. By pooling expertise and capital, the two countries aim to protect strategic industries from geopolitical disruptions.

Strategic Mapping and Joint Investment in Supply Chains

A joint mapping exercise will form the backbone of UK-Canada critical minerals cooperation. This initiative will identify mineral reserves, infrastructure, and processing capacities. The results will guide project selection for joint investment, focusing on expanding production and building resilient supply networks.

Both governments also agreed to collaborate on semiconductor-related research, including chip design, photonics, and emerging materials. This aligns with broader efforts to diversify away from single-region dependencies in high-tech supply chains.

Geopolitical Context Elevates Urgency of Partnership

The agreement reflects broader geopolitical challenges affecting trade and security. The UK and Canada announced the partnership against the backdrop of conflicts in Ukraine and the Middle East, which have heightened concerns about resource access and supply stability.

By deepening cooperation, London and Ottawa are positioning themselves as reliable allies in the global race for critical minerals and semiconductor leadership. Their collaboration not only strengthens bilateral trade but also enhances collective resilience in an uncertain geopolitical landscape.

The Metalnomist Commentary

The UK-Canada critical minerals partnership represents a strategic step to reduce supply chain vulnerabilities. Mapping resources and investing jointly will help mitigate risks linked to geopolitical tensions and market concentration. However, successful implementation will require aligning regulatory, financial, and industrial priorities across both nations.

Australia Unveils $4.5 Billion Tax Incentive to Boost Critical Minerals Sector

the Critical Minerals Production Tax Incentive (CMPTI)

CMPTI Targets Lithium, Rare Earths, and Other Strategic Metals to Secure Global Supply Chains

Australia has passed a landmark law — the Critical Minerals Production Tax Incentive (CMPTI) — aimed at increasing domestic processing of critical minerals essential for the global energy transition. This A$7 billion ($4.5 billion) policy will grant eligible producers a 10% tax offset on processing and refining costs over a 10-year project lifespan, starting from July 2027 to June 2040.

The legislation stands as one of the most significant government-backed resource incentives in Australia's history. It is expected to attract international investment, enhance supply chain security, and cement Australia's role as a global powerhouse in the critical minerals market. Federal Resources Minister Madeleine King described the policy as a “game changer” for the nation’s mining and refining sector.

Critical Minerals in Focus: Lithium, Cobalt, and Rare Earths Lead the Pack

The CMPTI applies to all 31 minerals listed on Australia’s official critical minerals list, which includes high-demand metals such as lithium, cobalt, vanadium, tantalum, gallium, rare earth elements, and tungsten. These metals are essential for producing electric vehicles, solar panels, wind turbines, semiconductors, and advanced defense systems.

Notably, these same minerals are also recognized as critical by strategic global partners, including the United States, European Union, India, Japan, South Korea, and the United Kingdom. This alignment underscores the importance of Australia’s role in creating reliable, ethical, and diversified sources of supply.

Hydrogen Production Incentive Complements Clean Energy Push

In tandem with the CMPTI, the legislation also introduces a hydrogen production tax incentive of A$2 per kilogram for renewable hydrogen. This dual-incentive framework positions Australia to lead not just in raw material extraction but in the green energy revolution, promoting cleaner technologies and reducing reliance on carbon-intensive imports.

With the global demand for low-emission technologies surging, Australia’s tax incentive scheme enhances its appeal as a long-term partner in securing clean energy infrastructure.

Australia Invests A$138.5 Million in Critical Minerals to Strengthen Domestic Supply Chains

Resource Capital Funds

In a significant move to bolster its domestic critical minerals sector, the Australian government announced a new round of investments and grants totaling A$138.5 million ($88.4 million) over the past week. This follows the recent approval of the Future Made in Australia (FMA) investment framework, aimed at diversifying the nation's critical mineral supply chains and creating jobs to meet national security, climate, and energy goals.

Key Investments to Support Domestic Mineral Production

Federal Resources Minister Madeleine King highlighted that the majority of these investments will be channeled through Resource Capital Funds (RCF), a specialist investor focused on metal extraction. RCF will invest $75 million in decarbonization projects within the critical minerals sector, marking a significant step in Australia's ongoing efforts to support cleaner, more sustainable mining operations.

Additionally, grants totaling $13.4 million were awarded to five mineral processors across the country to aid the early-stage development of rare earth, vanadium, fluorite, and graphite plants. These projects will play a pivotal role in meeting both domestic and global demand for these vital materials.

This new funding comes on top of A$303.2 million in loans that have already been provided to Iluka Resources for its Eneabba Rare Earths Refinery project. This refinery, located in Western Australia, is a key part of Australia's strategy to become a more significant player in the global rare earths market.

Strategic Alignment with Global Security and Climate Goals

Minister King emphasized the critical importance of these investments in diversifying global supply chains for materials that are crucial to clean energy, climate initiatives, and national security. Australia's growing role in the global critical minerals supply chain is reinforced by its recent FMA package, which allocated $14.3 billion to support the minerals sector, including tax incentives for production.

Australia's commitment to securing its mineral supply chain aligns closely with the goals of its international partners. Prime Minister Anthony Albanese's government has been actively fostering partnerships to ensure a stable and diversified critical mineral supply. Notably, a year into office, the Australian government signed the Climate, Critical Minerals, and Clean Energy Transformation Agreement with the US, which seeks to accelerate the diversification of clean energy supply chains and ensure stable mineral supply for both countries.

Additionally, the US has shown increasing interest in Australian critical minerals, with the US government recently supporting Australian miner Lynas in its efforts to establish a rare earth plant in the US. These moves further underscore the global strategic importance of securing a steady supply of critical minerals like rare earths, lithium, and vanadium.

ReElement South African Antimony Contract Extension Strengthens Defense Supply Chain

ReElement

ReElement South African antimony contract received a significant extension as American Resources and its subsidiary ReElement Technologies expanded their existing five-year antimony agreement to ten years with an undisclosed South African mineral supplier. The ReElement South African antimony contract extension positions the US company to process 500 metric tonnes monthly of stibnite ore initially, with expected revenues of at least $29 million annually from contracted volumes, addressing critical supply chain vulnerabilities following China's antimony export restrictions.

Strategic Timing Capitalizes on Chinese Export Restrictions

ReElement South African antimony contract expansion comes at a critical juncture following China's December 2024 ban on antimony exports to the United States, alongside germanium and gallium restrictions. The partnership initially targets 1,000 metric tonnes per month of antimony-bearing ore with potential for significant volume expansion based on market demand and offtake agreements. ReElement confirmed the ore quality exceeds 50% antimony concentration, indicating high-grade material suitable for defense and commercial applications.

Meanwhile, ReElement demonstrated advanced refining capabilities achieving greater than 99.7% pure antimony(III) sulfide from antimony ore at its central Indiana facilities. The company will process stibnite ore into ultra-pure antimony(III) sulfide or antimony(III) oxide using proprietary refining technology. These compounds serve critical applications in ammunition production, missile manufacturing, flame retardants, batteries, and solar panels across defense and commercial sectors.

Market Fundamentals Support Long-Term Growth Strategy

However, the global antimony(III) oxide market provides substantial growth opportunities with 2023 valuations reaching approximately $852 million. Market analysts project compound annual growth rates of 4.9% through 2034, potentially reaching $1.43 billion total market value. Antimony trisulfide applications in military ammunition and antimony trioxide usage in flame retardants drive sustained demand across defense and commercial markets.

Therefore, the ten-year agreement with automatic renewal provisions supports long-term supply agreements while generating stable revenue streams for ReElement's operations. Initial tolling revenues from the first phase are projected to exceed $29 million annually, with substantial growth potential aligned with rising domestic demand for critical minerals. The extended contract duration delivers enhanced value for all stakeholders including commercial and defense customers requiring secure antimony supplies.

Domestic Processing Capabilities Address National Security Priorities

Furthermore, ReElement's antimony refining expansion aligns with broader US critical minerals supply chain security initiatives. The company operates as part of American Resources Corporation's integrated approach to critical mineral processing, focusing on rare earth elements, lithium, and now antimony refining capabilities. ReElement's Marion, Indiana facility provides the foundation for scaling antimony operations while evaluating additional domestic and international processing sites.

As a result, the partnership addresses urgent national security requirements for domestically produced antimony compounds essential to defense applications. Mark Jensen, CEO of American Resources and ReElement, emphasized the strategic importance: "China's recent ban on exports of antimony, germanium and gallium accelerated this opportunity, allowing us to showcase the versatility, scalability and flexibility of our technology on a global scale - filling the supply gap now present in the United States and other allied nations."

The Metalnomist Commentary

ReElement's antimony contract extension exemplifies how US critical minerals companies capitalize on Chinese export restrictions to establish alternative supply chains, particularly important given antimony's essential role in defense applications where supply security outweighs cost considerations. The partnership's focus on high-grade South African ore combined with domestic processing capabilities creates a vertically integrated approach that addresses both economic and national security objectives in the evolving critical minerals landscape.

G7 Critical Minerals Strategy Targets Supply Chain Security and Diversification

G7

G7 Agrees on Critical Minerals Action Plan

G7 leaders have introduced a comprehensive strategy to secure critical minerals supply chains and strengthen national and economic security. The group announced the Critical Minerals Action Plan, which focuses on addressing shortages, mitigating market disruptions, and diversifying production. It includes onshoring mining, processing, and recycling to reduce reliance on single markets.

The plan also emphasizes supporting mineral-rich emerging economies by expanding local processing capacity and improving artisanal mining practices. By tackling investment barriers, the G7 hopes to build more resilient global supply chains.

Standards-Based Markets and Investment Drive

The G7 agreed to develop a roadmap for standards-based markets in critical minerals by year end. This roadmap will establish criteria for traceability and transparency in cooperation with international stakeholders. Leaders stressed that non-market policies in the sector, such as China's restrictive measures, threaten access to rare earths and other essential materials.

Additionally, the G7 urged multilateral banks and private lenders to increase financing for critical mineral projects. Innovative funding mechanisms and risk-sharing initiatives are expected to mobilize private capital and secure long-term supply. Partnerships with developing economies will focus on infrastructure development and overcoming investment hurdles.

The Metalnomist Commentary

The G7’s push for coordinated action underscores growing concerns over China’s dominance in critical minerals. By aligning on standards and investment, the bloc is signaling intent to build secure, transparent, and sustainable supply chains. However, successful execution will depend on how quickly member nations and financial institutions translate commitments into actionable projects.

Idaho Antimony Project Receives Final Federal Permit for 148 Million Pound Reserve

Idaho Antimony Project

Idaho antimony project development reached a critical milestone as Perpetua Resources secured final federal permits for the Stibnite Gold project. The Idaho antimony project contains estimated reserves of 148 million pounds of antimony, addressing critical supply chain vulnerabilities as the US produced no marketable antimony in 2024 according to the US Geological Survey, making the Idaho antimony project essential for domestic critical minerals security.

Critical Minerals Initiative Accelerates Strategic Project Development

Idaho antimony project advancement benefits from federal critical minerals initiatives designed to strengthen domestic supply chains. The Stibnite project was selected in the first wave of a federal initiative launched in April to expedite permitting for critical mineral projects. This selection demonstrates government recognition of antimony's strategic importance for flame retardants, military applications, and lead-antimony alloys used in batteries and cables.

Meanwhile, the project began its permitting journey in 2016, reflecting the complex regulatory environment surrounding large-scale mining operations. The eight-year federal permitting timeline highlights challenges facing domestic critical minerals development despite government support for supply chain resilience. Idaho Governor Brad Little signed an executive order in January aimed at simplifying state-level mining permit processes.

State Permits and Financing Requirements Remain Outstanding

However, construction cannot commence until state permitting completion and additional financing arrangements. Idaho's regulatory approval remains pending despite the federal permit milestone, creating continued uncertainty for project timelines. The dual permitting structure demonstrates coordination challenges between federal and state authorities for critical minerals projects.

Therefore, Perpetua requires substantial additional financing beyond current funding commitments to begin construction activities. The company secured approximately $75 million from the US Department of Defense, $12.5 million in equity financing, and $8.5 million from silver production royalties. The US Export-Import Bank indicated potential provision of up to $1.8 billion in debt financing, representing the largest component of the financing package.

Domestic Supply Chain Partnerships Support Project Viability

Furthermore, Perpetua established strategic partnerships to develop comprehensive antimony processing capabilities within the United States. The company signed initial agreements with Sunshine Silver Mining and Refining and US Antimony in December to explore processing and testing opportunities. These partnerships address downstream processing requirements essential for complete supply chain integration.

As a result, the domestic partnership approach creates vertically integrated antimony production capabilities from mining through refining. This comprehensive strategy aligns with government objectives to reduce dependence on foreign antimony sources while supporting defense and industrial applications requiring reliable domestic supply. The partnerships also provide technical expertise and market access for Perpetua's antimony concentrate production.

The Metalnomist Commentary

The Idaho antimony project's federal permit approval represents a crucial step toward establishing domestic antimony production capability, addressing a critical gap in US strategic minerals supply where the nation currently produces zero marketable antimony despite significant defense and industrial demand. While state permits and financing challenges remain, the project's advancement through federal critical minerals initiatives demonstrates how government support can accelerate strategic resource development for national security priorities.

Honda Ontario EV Plan Suspended Amid Slower Market Growth Projections

Honda EV

Honda suspended its ambitious C$15 billion ($10.7 billion) Honda Ontario EV plan to build a comprehensive electric vehicle value chain in Canada. Chief Executive Toshihiro Mibe announced the two-year delay during the company's first-quarter earnings presentation, citing slower-than-expected EV market growth. The Honda Ontario EV plan postponement represents a significant setback for Canada's battery materials supply chain development and critical mineral processing ambitions.

Comprehensive Battery Supply Chain Project Faces Market Reality

The Honda Ontario EV plan encompassed a complete electric vehicle manufacturing ecosystem in Alliston, Ontario, including an EV assembly plant and standalone battery manufacturing facility. Honda partnered with Posco Future M to develop cathode and precursor materials facilities while collaborating with Asahi Kasei on separator plant construction. Meanwhile, this integrated approach aimed to reduce supply chain dependencies while supporting Honda's goal of 100% battery and fuel cell EV sales by 2040.

The comprehensive nature of the Honda Ontario EV plan positioned Canada as a strategic hub for North American electric vehicle production. Honda's investment would have created substantial demand for Canadian critical minerals, particularly lithium, nickel, and cobalt for battery cathode materials. However, slower market adoption rates have forced automakers to reassess their aggressive electrification timelines and associated capital investments.

Critical Mineral Processing Ambitions Face Automotive Headwinds

Canada's strategy to capture value from its abundant critical mineral resources through downstream processing suffers a major blow from the Honda Ontario EV plan suspension. The project represented a key opportunity to establish domestic battery materials manufacturing capabilities using Canadian lithium, nickel, and graphite resources. As a result, the delay undermines government efforts to build integrated critical mineral supply chains within North America.

Posco Future M's planned cathode and precursor facilities would have processed Canadian-sourced critical minerals into high-value battery materials for Honda's EV production. The partnership promised technology transfer and manufacturing expertise to establish Canada's position in global battery supply chains. Therefore, the Honda Ontario EV plan postponement reduces near-term demand prospects for Canadian critical mineral producers seeking domestic processing partnerships.

The two-year delay reflects broader challenges facing automaker electrification strategies as consumer adoption lags initial projections. Honda joins other manufacturers reassessing EV investment timelines amid market uncertainty and profitability concerns. Consequently, critical mineral demand growth may moderate as automakers adjust production capacity plans to match actual market conditions.

The Metalnomist Commentary

Honda's decision to pause its massive Ontario investment reflects the gap between aggressive EV transition rhetoric and market reality, highlighting risks for critical mineral producers banking on rapid battery demand growth. This setback underscores the importance of diversified demand strategies for Canadian critical mineral projects, as automotive electrification timelines prove more volatile than anticipated across the industry.

Quad Critical Minerals Initiative targets secure and diversified supply chains

Quad grouping

Quad launches coordinated push on mineral security

The Quad Critical Minerals Initiative launches to diversify and secure critical mineral supply chains. The Quad members are the US, Australia, Japan, and India. They aim to counter non-market practices and reduce single-supplier risk. Therefore, the initiative targets coercion, price manipulation, and disruption.

Scope, priorities, and policy context

The Quad Critical Minerals Initiative will strengthen access to ores, processing, and refining capacity. Officials highlighted the need for diverse and reliable global supply chains. However, the specific minerals list remains unspecified at the Quad level. Australia lists 31 critical minerals, while the US lists 50. Meanwhile, ministers discussed securing 36 of those 50 minerals. The effort follows earlier Quad pledges on clean energy supply chains. Therefore, coordination should support EVs, renewables, and defense technologies.

The initiative also intersects with trade tensions and tariff policy. Australia sought relief from proposed US steel and aluminium tariffs. However, no exemption deal has been reached. As a result, commercial terms may influence project timing and location.

The Metalnomist Commentary

This initiative elevates policy coordination into practical supply-chain action. Near-term proof points will be processing projects, offtakes, and permitting wins. Watch how tariff dynamics and domestic politics shape cross-border investment flows.

US UAE Gallium Production Partnership Challenges China's Critical Minerals Monopoly

EGA

US UAE gallium production partnership emerged through a strategic alliance between Emirates Global Aluminium (EGA), Tawazun Council, and RTX Corporation. The US UAE gallium production initiative targets extraction at EGA's Al Taweelah alumina refinery, representing a significant diversification effort away from Chinese-dominated gallium supply chains for critical defense and aerospace applications.

Strategic Partnership Addresses Defense Supply Chain Vulnerabilities

US UAE gallium production collaboration directly responds to China's dual-use export restrictions affecting defense contractors. RTX subsidiary Raytheon faces Chinese export bans, forcing the aerospace giant to secure alternative gallium sources for semiconductor, radio frequency device, and LED manufacturing. The memorandum of understanding establishes an exploratory framework for domestic gallium production capabilities.

Meanwhile, EGA and RTX plan additional agreements to conduct comprehensive feasibility studies for the Al Taweelah facility integration. The partnership leverages EGA's existing alumina refining infrastructure while providing RTX guaranteed access to critical materials. This strategic alignment addresses both companies' objectives of supply chain security and market diversification.

Gallium Applications Drive Defense Industry Demand

However, gallium's strategic importance extends beyond traditional aluminum production into advanced technology applications. The critical mineral serves essential roles in semiconductor manufacturing, radio frequency devices, light emitting diodes, and consumer electronics. Defense and aerospace sectors particularly depend on gallium for advanced radar systems, satellite communications, and electronic warfare capabilities.

Therefore, establishing UAE-based gallium production creates alternative supply sources for Western defense contractors facing Chinese export restrictions. The Al Taweelah location provides geographic diversification while leveraging established Middle Eastern industrial infrastructure. This positioning reduces dependence on single-source suppliers in geopolitically sensitive regions.

Regional Industrial Diversification Strategy

Furthermore, the gallium partnership aligns with broader UAE economic diversification initiatives beyond traditional hydrocarbon sectors. EGA simultaneously announced plans for joint anode manufacturing development with Chinese producer Sunstone, demonstrating comprehensive industrial expansion strategies. These partnerships position Abu Dhabi as a regional critical minerals processing hub.

As a result, the US-UAE collaboration exemplifies how allied nations coordinate critical minerals supply chain resilience against export control weaponization. The partnership model combines American technology expertise with Middle Eastern industrial capacity and geographic positioning. Such arrangements increasingly define international approaches to critical materials security in contested global markets.

The Metalnomist Commentary

The US-UAE gallium production partnership exemplifies strategic alliance formation in response to China's critical minerals export controls, demonstrating how defense contractors and allied governments collaborate to establish alternative supply chains. This initiative represents a broader trend of geographic diversification in critical materials processing, positioning the UAE as a key intermediary in Western supply chain security strategies.

Peru Backs Saudi Arabia’s Rise as a Global Critical Minerals Hub

Saudi Arabia

US-led strategy to diversify global refining draws international support

Peru has expressed strong support for Saudi Arabia’s growing role in the global critical minerals industry, aligning with US efforts to reduce dependence on China. Speaking at the Munich Security Conference, Peru’s Foreign Minister Elmer Schialer called the US policy a "good strategy" to counter mineral supply monopolies and lower global processing costs.

The US has backed Saudi Arabia's ambitions to build a diversified critical minerals refining and processing hub. This aligns with broader Western goals to create alternatives to China, which currently controls around 90% of global mineral processing capacity.

Saudi Arabia boosts global capacity with Vision 2030 investments

Saudi Arabia’s Vision 2030 aims to reduce the kingdom’s dependence on oil by investing in strategic sectors, including mining and electric vehicles. In January, Riyadh announced a new $100 billion mineral investment plan, with $20 billion already in advanced development stages.

The Ministry of Industry and Mineral Resources also upgraded the estimated value of Saudi Arabia’s unexploited mineral reserves from $1.3 trillion to $2.5 trillion. These reserves include high-demand resources like copper, gold, bauxite, potash, and rare earths—key materials for clean energy and defense technologies.

Global alliances forming amid China’s tightening controls

China has tightened its export restrictions on critical mineral processing technologies, especially following trade tensions with the US. In response, countries like Saudi Arabia are being courted by Western governments to build alternative supply chains.

Peru’s endorsement of Saudi Arabia’s mineral ambitions reflects growing support for a multipolar critical minerals market. Schialer emphasized that having multiple global centers for mineral refining would lower production costs and improve economic resilience.

Saudi Aramco and Ma'aden, the kingdom’s state-controlled mining firm, also launched a joint venture to explore and extract energy transition minerals. These steps position Saudi Arabia as a potential key player in the future of global mineral security.

Lynas Heavy Rare Earths Production Breaks China's Market Monopoly

Lynas Rare Earths

Lynas heavy rare earths production achieved a historic milestone by becoming the first non-Chinese producer of separated dysprosium. The Australian mineral company's Lynas heavy rare earths facility in Malaysia successfully produced separated dysprosium, marking a significant breakthrough in global supply chain diversification for critical minerals essential to advanced manufacturing and defense applications.

Malaysian Plant Establishes Alternative Supply Chain

Lynas heavy rare earths processing capabilities expanded significantly during the first quarter of 2025. The company constructed dysprosium and terbium processing circuits at its Malaysian facility, with capacity to separate up to 1,500 tonnes per year of heavy rare earths. These new circuits position Lynas to challenge China's dominance in the separated heavy rare earths market.

Meanwhile, Lynas plans to commence separated terbium production next month at the same facility. The processing circuits will eventually enable production of separated dysprosium, terbium, and holmium concentrate. Additionally, the facility will produce unseparated samarium/europium/gadolinium and unseparated mixed heavy rare earths, creating a comprehensive product portfolio.

Strategic Timing Amid Chinese Export Restrictions

However, the breakthrough comes at a critical juncture for global rare earths markets. Chinese suppliers recently limited offers for rare earth minerals, including dysprosium and terbium, following government export control tightening. This timing underscores the strategic importance of establishing alternative supply sources outside China's control.

Therefore, Lynas' production achievement addresses growing concerns about supply chain vulnerability in critical minerals. The company's Q1 2025 total rare earth oxide production reached 1,911 tonnes, including 1,509 tonnes of NdPr oxide. Production declined 46% year-on-year due to improvement and maintenance works across Malaysian and Western Australian operations.

US Partnership Strengthens Supply Chain Resilience

Furthermore, Lynas continues developing another rare earths processing plant in Texas with US government support. The American facility will produce both separated heavy and light rare earths, further reducing Western dependence on Chinese supplies. This dual-facility strategy creates redundancy and geographic diversification for critical mineral processing.

As a result, Lynas positions itself as a cornerstone of Western rare earths supply chain security. The company's expansion into heavy rare earths processing represents a strategic shift from its traditional focus on light rare earths production, addressing military and high-tech manufacturing requirements.

The Metalnomist Commentary

Lynas' achievement in producing separated heavy rare earths outside China represents a watershed moment for global supply chain resilience in critical minerals. The timing coincides perfectly with Chinese export restrictions, demonstrating the urgent need for alternative suppliers in materials essential to clean energy, defense, and advanced technology sectors.

US and Argentina Partner on Critical Mineral Supply

The United States and Argentina have entered into a preliminary agreement aimed at enhancing cooperation in the critical minerals sector. This agreement is designed to boost trade and investment in the exploration, extraction, processing, and refining of critical minerals. The primary objective is to raise awareness of the investment opportunities within this sector and to identify potential co-financing options for critical mineral investments.

This partnership is a strategic move by the United States to strengthen its position in the global critical minerals market and reduce its dependence on China, a dominant player in the field. Argentina, on its part, has acknowledged its significant potential in the mining of key minerals such as copper, lithium, and zinc.

India Waives Duties on Critical Minerals in 2024-25 Budget

In a strategic move to bolster key industrial sectors, India has announced the reduction or elimination of custom duties on 25 critical minerals, including lithium, copper, cobalt, and rare earths. However, the government will maintain its tax on copper scrap. This announcement was made by India's finance minister, Nirmala Sitharaman, during her 2024-25 fiscal year budget speech.

The full list of the 25 critical minerals has not been disclosed, but these minerals are deemed essential for industries such as nuclear energy, renewable energy, space, defense, telecommunications, and high-tech electronics. Of these 25 minerals, 23 will be fully exempt from custom duties, while the remaining two will see a reduction in duties.

Additionally, India is launching a critical mineral mission to strengthen the supply chain for these essential minerals, encouraging both private and public sectors to enhance their long-term competitiveness.

The budget also includes significant reductions in customs duties on precious metals. Duties on gold and silver have been lowered to 6%, and platinum to 6.4%. Furthermore, the basic customs duty on ferro-nickel, crucial for stainless steel production, has been waived to improve domestic production efficiency.

The duty on copper scrap remains at 2.5%, but the duty on blister copper has been reduced to zero from 2.5%. This measure aims to support the domestic copper industry by lowering import costs.

In its efforts to support environmental goals, the government has continued the zero customs duty on ferrous scrap and nickel cathode, aligning with its commitment to achieving net-zero carbon emissions. A new carbon market will also be established to aid the steel and cement sectors in reducing their greenhouse gas emissions. The government plans to launch this domestic compliance carbon market by the end of the year to help industries meet their emissions intensity targets.

Latam EV Market Set for Massive 2025 Expansion Driven by Chinese Automakers

Latam EV Market

The Latam EV market will experience unprecedented growth in 2025 as electric vehicle sales in Latin America and emerging markets double to 1 million units. According to the International Energy Agency (IEA), Chinese automakers drive this expansion by offering significantly cheaper models than traditional Western brands. The Latam EV market surge represents a critical shift in global automotive demand that will substantially increase battery materials consumption across the region.

Chinese Battery Technology Advantages Fuel Market Penetration

Chinese automakers captured 75% of all EV sales in emerging economies by leveraging superior cost advantages in battery pack manufacturing. China produces cheaper battery packs due to intense competition, enhanced manufacturing efficiency, supply chain integration, and access to skilled workforces. Meanwhile, Chinese battery pack prices fell 30% compared to only 10-15% decreases in Europe and the United States.

BYD and GWM electric vehicles now compete directly with conventional petrol cars in key Latam EV market segments. In Brazil, BYD's largest market outside China, the price gap between battery electric cars and conventional vehicles narrowed to just 25%. Therefore, Chinese manufacturers achieve price parity with internal combustion engines in Thailand and approach competitive pricing across Latin America.

Regional Manufacturing Expansion Promises Further Cost Reductions

Local production capacity remains minimal, with only 5% of EVs sold in emerging markets produced regionally currently. GWM and BYD plan to establish factories in Latin America by late 2026, potentially driving down costs further. As a result, these manufacturing facilities will bypass import tariffs while reducing transportation costs for the expanding Latam EV market.

Regional battery material demand will surge as local EV production scales rapidly across Latin America. Lithium, cobalt, nickel, and other critical minerals consumption will increase substantially to support growing battery manufacturing requirements. However, Latin America possesses significant lithium reserves, particularly in Argentina, Bolivia, and Chile, creating opportunities for vertical supply chain integration.

Global EV sales exceeded 17 million units in 2024, capturing 20% market share worldwide. The IEA projects 2025 sales will surpass 20 million units, representing over 25% of global automotive sales. Consequently, the Latam EV market expansion contributes meaningfully to this accelerating global electrification trend.

The Metalnomist Commentary

The Latam EV market boom signals a fundamental shift in global battery materials demand geography, with Chinese manufacturers leveraging cost advantages to penetrate price-sensitive emerging markets. This expansion will create substantial new demand for lithium, cobalt, and nickel while potentially enabling Latin America to capture more value from its abundant critical mineral resources through local processing and battery manufacturing integration.

Cygnus Metals and Doré Copper Mining Announce Completion of Merger to Enhance Critical Minerals Exploration

Cygnus Metals

Cygnus Metals, an Australian critical minerals explorer, has successfully completed its merger with Canadian firm Doré Copper Mining. This strategic consolidation aims to intensify the exploration and development of high-grade copper and lithium assets in Quebec, Canada.

Strategic Expansion in Quebec's Rich Mineral Landscapes

The merger forms a dual-listed critical minerals powerhouse in both Australia and Canada, focusing on two major projects in Quebec: the Chibougamau Copper and Gold Project and the James Bay Lithium Project. These projects position the newly merged entity to leverage Quebec's rich mineral resources for critical raw materials necessary for various high-tech and green technologies.

The Chibougamau project, in particular, boasts substantial measured and indicated mineral resources amounting to 3.6 million metric tonnes at a 3 percent copper equivalent. It also features an existing processing facility with a capacity of 900,000 tonnes per year, providing a solid foundation for rapid development and production scaling.

Future Plans and Industry Impact

Looking ahead, the company is set to prioritize resource growth at the Chibougamau site, with an extensive exploration drilling campaign planned for 2025. This initiative underscores the company’s commitment to expanding its copper and gold outputs while exploring potential lithium deposits critical for the burgeoning electric vehicle and renewable energy sectors.

The merger not only enhances the operational capacities and resource base of both Cygnus Metals and Doré Copper Mining but also strengthens their position in the global market for critical minerals, vital for the transition to sustainable energy sources.

CAML Expands with Acquisition of Antler Copper Project via New World Deal

Central Asia Metals(CAML)

UK-Based Producer Enters US Market with Strategic Arizona Asset

Central Asia Metals (CAML) has acquired New World Resources for $119 million, marking a major expansion into the United States. The deal includes the Antler copper project in Arizona, which has been designated by U.S. officials as part of a critical minerals expedited permitting initiative. This strategic acquisition strengthens CAML’s copper portfolio and aligns with growing demand for domestically sourced critical minerals.

Antler Project Positioned for Fast-Tracked Development

The Antler copper project is expected to complete all permitting by Q1 2026 and start production in 2027. Once operational, the mine will deliver 16,400 tonnes of copper, 34,500 tonnes of zinc, and 3,600 tonnes of lead annually. CAML’s decision to acquire New World is largely driven by Antler’s inclusion in the U.S. critical minerals initiative, which accelerates the approval timeline for high-priority mining projects that support energy transition and national security objectives.

New World Resources

CAML Strengthens Global Base Metals Portfolio

CAML currently operates copper production in Kazakhstan, and zinc and lead operations in North Macedonia. In 2024, the company reported output of 13,439 tonnes of copper, 18,572 tonnes of zinc, and 26,617 tonnes of lead. With the Antler project, CAML enhances its geographic diversification and increases its exposure to U.S. base metals demand, while securing a project poised for regulatory and market tailwinds.

The Metalnomist Commentary

CAML’s acquisition of New World marks a pivotal step into the North American critical minerals arena. The Antler project offers both scale and regulatory momentum, positioning CAML to benefit from U.S. policy support and long-term metals demand.

Critical Elements Lithium Secures Funding Interest for Rose Li-Ta Project

Critical Elements Lithium

Canadian company may receive up to $115 million to advance its Quebec-based lithium-tantalum project.

Critical Elements Lithium, a Canadian-based company, has received significant funding interest for its Rose Lithium-Tantalum project located in northern Quebec. The funding, potentially amounting to $115 million, was offered through a support letter from a leading Canadian financial institution. The support letter outlines the institution’s interest in providing long-term debt financing for the project, marking a crucial step toward advancing the company’s operations.

Rose Lithium-Tantalum Project Overview

The Rose project, situated in Eeyou Istchee James Bay, northern Quebec, is poised to become a major player in the lithium and tantalum markets. Critical Elements plans to produce 203,765 metric tonnes per year of spodumene concentrates and 580 tonnes of tantalite concentrates. These materials are essential for various industries, particularly in the production of electric vehicle batteries and electronic components, highlighting the project's strategic importance in the global supply chain for critical minerals.

A Promising Future for Critical Elements Lithium

With this potential funding, Critical Elements Lithium is positioned to accelerate its development efforts and continue advancing the Rose project. This move aligns with the growing demand for lithium and tantalum, driven by the shift toward renewable energy and electric vehicles. The project’s success could not only bolster Canada’s standing in the global minerals market but also help secure a more sustainable future by providing essential materials for green technologies.

Conclusion

The potential for up to $115 million in funding marks a significant milestone for Critical Elements Lithium. As the Rose Lithium-Tantalum project moves forward, it stands to contribute significantly to Canada’s resource-based economy while supporting the global transition to renewable energy.

US Antimony to Source Ore from Alaska to Strengthen Domestic Supply Chain

US Antimony Corporation (USAC)

US Antimony’s move to tap Alaskan antimony ore marks a significant step toward reducing reliance on foreign sources.

US Antimony Corporation (USAC) is making a strategic move to strengthen its domestic supply chain by sourcing antimony ore from its Alaskan mining claims. Starting in the second quarter, USAC will supply its Montana smelter with ore extracted from its newly acquired properties in Alaska. This marks the first time the Texas-based company has utilized domestically sourced feedstock for its operations, positioning it to reduce its dependency on foreign antimony supplies.

Strategic Move to Alaska

Over the past year, USAC purchased more than 210 mining claims covering approximately 33,000 acres in Alaska. These properties are known to contain significant antimony deposits, though past mining efforts in the region have focused primarily on gold, silver, and other metals. By tapping into these lesser-exploited deposits, USAC plans to support its smelting operations, primarily at its Thompson Falls facility in Montana. The proximity of these mining sites to existing infrastructure, including active mines, will facilitate a faster and more efficient supply chain for the company.

Implications for US Supply Chain and Onshoring Efforts

This move aligns with broader efforts by the US government to reduce reliance on foreign critical minerals, particularly from China. In January, President Donald Trump signed an executive order aimed at accelerating the permitting process for mining projects in Alaska. The strategic importance of reducing dependency on foreign sources of critical minerals, such as antimony, has been underscored by recent global supply chain disruptions, including China’s decision to restrict its antimony exports.

USAC’s plan includes gradually ramping up its ore extraction, eventually reaching 1,000 metric tonnes per month. This volume would supply both the Thompson Falls smelter and the company’s Madero smelter in Mexico. However, initial shipments from Alaska are expected to be modest, with volumes ranging from 100 to 200 tonnes per month until USAC can expand its Montana smelting capacity. The company is also awaiting a grant from the Department of Defense to support this expansion.

Impact of China’s Antimony Export Restrictions

USAC’s push to source antimony ore domestically is further fueled by China’s decision to impose export bans on antimony and restrict shipments to other global markets. In 2024, China accounted for 63% of all antimony shipments to the US, as per the US Geological Survey. These restrictions have created a more favorable market for USAC and other domestic companies looking to meet the growing demand for antimony. The company anticipates that high prices for antimony will persist due to the global shortage of this critical mineral, compounded by efforts to onshore mineral supplies to the US and other Western nations.

Conclusion

USAC’s decision to source antimony ore from its Alaskan mining claims represents a critical step in securing a reliable and domestically sourced supply of this vital mineral. As the US government continues to prioritize onshoring efforts and reduce its dependence on foreign critical minerals, USAC’s move sets an important precedent for the future of the domestic antimony market. With global supply chain disruptions highlighting the need for self-sufficiency, USAC is positioning itself as a key player in the race to secure critical mineral resources.