LME Minimum Volume Threshold Delay Gives Members More Time for Electronic Trading Shift

LME electronic platform

LME minimum volume threshold enforcement has been delayed until 24 August, giving members more time to adapt systems, workflows and automated trading processes. The London Metal Exchange said the extension followed requests from market participants for additional testing before enforcement begins.

The LME minimum volume threshold rule is part of a wider reform package designed to shift more trading activity onto the electronic LMEselect platform. The rule sets block trade thresholds at 15 lots for aluminium, 10 lots for copper, lead and zinc, and five lots for nickel.

The LME minimum volume threshold formally took effect on 30 March, but enforcement was initially suspended under a 12-week grace period. That non-enforcement window has now been extended by two months, delaying the first enforcement date to late August.

The delay does not change the direction of LME reform. It only gives members more time to prepare for a market structure that increasingly rewards electronic execution, price transparency and on-screen liquidity.

Electronic Trading Reform Moves Forward on a Slower Timeline

The LME’s reform package aims to increase activity on LMEselect while preserving the exchange’s daily-date structure and physical trading features. This balance is important because the LME serves both financial participants and physical metals users.

The minimum volume threshold is designed to push smaller trades toward electronic execution. Larger trades can still use block-style arrangements, but the thresholds create a clearer boundary between electronic order book activity and inter-office trading.

The exchange said members needed more time to modify and test automated systems. This is a practical issue, not just a regulatory one. Trading firms must ensure order routing, compliance monitoring, audit trails and execution systems can handle the new framework.

The revised timetable also delays the launch of the new automated crossing order type to 22 June. The tool has been available in the market test environment since 2 February, but the exchange wants to allow more build and testing.

The new schedule creates a two-month gap between the crossing tool launch and the end of the MVT grace period. The previous timeline offered only one month.

This matters because crossing functionality could help participants manage execution under the new regime. It gives members another tool before the LME starts enforcing minimum volume thresholds.

The Liquidity on Orderbook Programme has also been delayed. LOOP will now launch on 3 August instead of 22 June, shortly before the MVT grace period ends.

LOOP is intended to add liquidity on LMEselect before full enforcement begins. Its delayed launch means the market will have less time to observe how additional order-book incentives affect execution behaviour.

The expanded definition of short-dated carry will also take effect on 24 August. This change will allow more trades to qualify for lower transaction fees, aligning the carry fee change with the end of the grace period.

These timeline changes show that the LME is still committed to reform, but it is trying to avoid operational disruption. A rushed transition could weaken confidence among members, especially in markets where physical users rely on stable execution channels.

Fee Incentives and Audit Monitoring Reinforce the Order Book Strategy

The LME’s fee changes remain central to its market structure strategy. Client fees are now differentiated by venue, creating a financial incentive to use LMEselect.

Inter-office transaction fees have risen by about 20%. At the same time, client electronic trading and clearing fees have been reduced by 7.4-8.5%.

The exchange said these changes lowered the all-in transaction cost for a client outright trade on LMEselect by 4.5%. This makes electronic execution more attractive from a cost perspective.

The fee structure supports the same goal as the minimum volume threshold. The LME wants more price competition and liquidity to appear on the electronic order book.

This is strategically important for base metals markets. Aluminium, copper, zinc, lead and nickel all depend on transparent price discovery because LME prices influence physical contracts, hedging, inventories and financing.

More electronic liquidity could improve visible market depth. It could also reduce reliance on bilateral inter-office execution for trades that can be handled on-screen.

However, the transition also creates compliance and workflow challenges. Members must determine which trades fall below the thresholds, how to route them, and how to document exceptions.

The LME will continue monitoring sub-MVT inter-office trading during the grace period. It will also generate example audit requests for members.

Members will not be required to respond to these sample audit requests during the extended non-enforcement period. But the process gives firms a preview of the documentation and oversight expected after enforcement begins.

That approach is useful. It lets the exchange test market behaviour and helps members identify gaps before penalties or enforcement actions apply.

The latest delay also shows that the LME is managing competing priorities. It wants to modernise execution and improve transparency, but it must avoid disrupting the physical metals ecosystem that underpins its global benchmark role.

The reform package was first set out in September 2024 and refined through consultations and roadmap updates in 2025. The latest timeline adjustment suggests the LME is still responding to member feedback while maintaining its long-term direction.

For industrial users, the change may not immediately affect physical metal procurement. But it could gradually influence hedging costs, execution methods and liquidity conditions around benchmark pricing.

For brokers and trading firms, the impact is more direct. They must invest in systems, compliance procedures and client workflows that fit a more electronic market structure.

For the LME, the key test will be whether the reforms increase electronic liquidity without weakening the market’s daily-date flexibility. That daily-date structure remains one of the exchange’s defining features for physical metals users.

The Metalnomist Commentary

The LME delay is not a retreat from electronic reform; it is a controlled transition. The exchange is giving members more time, but the strategic direction remains clear: more order-book activity, stronger transparency and fewer small trades handled off-screen.

LME Electronic Trading Reforms Aim to Boost Liquidity and Transparency

LME

LME electronic trading reforms will roll out in the first quarter of 2026. The London Metal Exchange plans to steer more flow to LMEselect. The exchange wants deeper liquidity and better price transparency. LME electronic trading reforms will limit smaller inter-office trades. Therefore, members must execute many tickets electronically. LME electronic trading reforms follow consultations since September 2024.

What the LME electronic trading reforms change

Block thresholds will restrict off-screen activity on three-month contracts. Thresholds are 15 lots for aluminium and 10 for copper, lead, and zinc. Nickel carries a five-lot threshold under the new rules. Trades below those sizes must use LMEselect. The rules apply to each monthly date out to one year. Carry trades between those monthly dates also move on-screen. However, cash and daily dates remain exempt from thresholds.

The exchange also simplifies administrative categories for exempt trades. It removed a separate booking category after member feedback. Therefore, members avoid extra post-trade complexity. Crossing rules will arrive in February before thresholds start. An automated crossing solution will support orderly execution. As a result, firms can match interest more efficiently and with audit trails.

Why the LME electronic trading reforms matter

The reforms should tighten bid-ask spreads for core metals. Greater on-screen flow often improves price formation. Moreover, surveillance tools work best with electronic prints. Market makers can manage risk across time buckets more cleanly. Consequently, liquidity may migrate from the ring to LMEselect. Price discovery for three-month contracts could become more robust.

The Metalnomist Commentary

The LME is aligning microstructure with modern market standards. Success hinges on member adoption and screen depth across monthly dates. Watch nickel and aluminium thresholds for early signals on liquidity gains.

LME Market Structure Overhaul Aims to Boost Liquidity, Transparency, and Electronic Trading

LME

Phased Reforms Target Block Trades, Electronic Access, and OTC Incentives

The LME market structure overhaul is set to reshape metals trading dynamics over the next two years. The London Metal Exchange has published a detailed roadmap outlining structural reforms designed to enhance liquidity, increase price transparency, and encourage electronic trading through its LMEselect platform. Key components include new block trade thresholds, automated crossing, and adjusted incentives for exchange-based trading.

Phase One Targets Trading Efficiency and Fee Realignment

From 2025 through mid-2026, the LME will roll out metal-specific block thresholds, a new automated crossing mechanism, and fee reductions for certain daily spread trades. By revising the definition of short-dated carries and applying lower fees irrespective of execution method, the LME aims to shift activity from OTC to on-exchange venues. It will also launch a liquidity provider programme and introduce TAS trading and tick size optimisation.

Phase Two to Deliver Data Transparency and OTC Oversight

In late 2026, the second phase of the LME market structure overhaul will expand market data transparency. Planned initiatives include the publication of OTC and open interest data, and real-time visibility into inter-office risk transfers, subject to applicable waivers. These measures reflect the LME’s ongoing efforts to modernize its market infrastructure while preserving physical delivery integrity.

The Metalnomist Commentary

The LME market structure overhaul is a pivotal step toward aligning physical and electronic metals markets. As algorithmic trading and regulatory scrutiny intensify, the LME’s hybrid approach could redefine price discovery standards in global base metals.

Honeywell Defense Manufacturing Investment Boosts US Munitions Supply Chain

Honeywell

Honeywell defense manufacturing investment will expand US production capacity for components used in munitions platforms. Honeywell Aerospace Technologies plans to invest $500 million under a multiyear framework supply agreement with the US Department of Defense.

The investment will modernize and expand Honeywell’s manufacturing capabilities for navigation systems and actuators used in missiles. It will also support production of components linked to the company’s electronic warfare technology.

Honeywell defense manufacturing investment reflects a broader push to strengthen the US defense industrial base. The Pentagon is trying to secure faster, more reliable access to critical systems as munitions demand rises across the military supply chain.

Pentagon Supply Strategy Targets Faster Defense Production

The agreement forms part of the Department of Defense’s “Arsenal of Freedom” initiative. The program aims to streamline procurement and accelerate product acquisition by working more closely with private defense equipment and systems suppliers.

This approach matters because defense supply chains depend on specialized components with long qualification cycles. Navigation systems, actuators, missile components, and electronic warfare hardware require precision manufacturing, secure sourcing, and stable production capacity.

Honeywell’s investment therefore supports more than one product category. It strengthens the industrial infrastructure behind missiles, guided systems, and electronic warfare platforms at a time when defense readiness is becoming a manufacturing capacity issue.

Critical Minerals Demand Rises With Munitions Expansion

Honeywell defense manufacturing investment also has direct implications for critical minerals demand. Higher output of missiles, sensors, guidance systems, and electronic warfare components can increase demand for rare earths, germanium, tungsten, and other strategic materials.

Rare earths support high-performance magnets, sensors, and electronic systems. Germanium is important for infrared optics, semiconductors, and defense electronics, while tungsten is used in high-density, heat-resistant, and armor-related applications.

As the US expands munitions production, supply security for these materials will become increasingly important. Defense manufacturing growth will therefore reinforce the link between industrial policy, critical mineral access, and domestic processing capability.

The Metalnomist Commentary

Honeywell’s $500 million investment shows that defense production is becoming a critical minerals story as much as a manufacturing story. The US can accelerate munitions output only if component capacity and strategic material supply move together.

India Semiconductor Fabrication Plant Approval Advances Dholera Chip Hub

Tata Semiconductor Manufacturing

India semiconductor fabrication plant development has taken a major step forward after the government approved the country’s first chip fabrication facility at Dholera in Gujarat. The project will be developed by Tata Semiconductor Manufacturing inside a special economic zone.

The India semiconductor fabrication plant will cover 66.2 hectares, or 662,000m². It is designed to support high-value and capital-intensive semiconductor manufacturing, along with related electronic hardware, software and IT-enabled services.

The India semiconductor fabrication plant approval marks a strategic milestone for India’s effort to build a domestic semiconductor and electronics supply chain. The project supports New Delhi’s push to reduce dependence on imported chips and move deeper into advanced manufacturing.

Dholera SEZ Creates Platform for Chip Manufacturing

The Dholera project will be developed within a special economic zone designed to support semiconductor operations. The zone will include enabling infrastructure, streamlined logistics and a dedicated approval process to accelerate industrial activity.

This structure is important because semiconductor fabs require more than capital investment. They need reliable power, water, cleanroom infrastructure, high-purity gases, chemicals, precision equipment, logistics and a qualified supplier ecosystem.

The project is expected to support related industries around electronic hardware and software services. This could help Dholera develop beyond a single fab into a broader semiconductor manufacturing cluster.

The government did not disclose construction timelines or detailed production plans. However, approval of the site gives Tata Semiconductor Manufacturing a clearer path to proceed with India’s first major domestic chip fabrication project.

India Builds Domestic Electronics and Semiconductor Ecosystem

The Dholera approval follows other major semiconductor and electronics projects cleared in 2025. These include Micron Semiconductor Technology’s facility at Sanand in Gujarat and Aequs Group’s electronic component manufacturing special economic zone at Dharwad in Karnataka.

Together, these projects show that India is trying to build multiple layers of the semiconductor value chain. Fabrication, assembly, electronic components, hardware and supporting services all need to grow together for the ecosystem to become competitive.

The industrial significance extends to materials and supply chains. Semiconductor manufacturing requires high-purity silicon wafers, specialty gases, process chemicals, copper, aluminium, ultra-clean components and advanced packaging materials.

For India, the challenge will be execution. Building a fab is technically demanding, capital intensive and supply-chain dependent. The project must attract equipment suppliers, trained engineers, qualified vendors and long-term customers.

Still, the approval strengthens India’s position in global electronics manufacturing. As countries seek more resilient chip supply chains, India is positioning Dholera and Gujarat as strategic locations for semiconductor investment.

The Metalnomist Commentary

India’s first chip fab approval is a major industrial policy milestone, but the real test will be ecosystem depth. A successful semiconductor hub requires not only a fabrication plant, but materials, utilities, talent and qualified suppliers operating at global standards.

India approves Tata’s first semiconductor fabrication plant at Dholera in Gujarat.

#India #Semiconductors #Dholera #TataSemiconductor #Gujarat #ChipFab #Electronics #Manufacturing #SupplyChain #TheMetalnomist

Yageo AI Demand Lifts Sales as Tantalum Capacitors Gain Strategic Importance

Yageo Group

Yageo AI demand strengthened the Taiwanese electronic components manufacturer’s 2025 performance as high-end electronics and data centre applications supported sales growth. Net sales rose to NT$132.9bn, or about $4.26bn, up 9.3pc from a year earlier and 12.5pc in US dollar terms.

Yageo AI demand now accounts for around 13pc of the company’s sales, showing how artificial intelligence is reshaping the electronic components supply chain. The company said customer inventories have returned to healthier levels, while demand for AI-related products continues to grow despite geopolitical uncertainty.

Yageo AI demand also supported profitability. Earnings before interest, tax, depreciation and amortisation rose to NT$38.8bn in 2025 from NT$32.6bn in 2024. Fourth-quarter sales were particularly strong, rising 19.9pc from a year earlier to NT$35.96bn.

Tantalum Capacitors Benefit From AI Data Centre Growth

Tantalum-based capacitors are becoming more important as AI data centres increase demand for reliable, high-performance electronic components. Yageo is a major producer of tantalum capacitors, which are used across servers, power systems, industrial electronics, and advanced computing hardware.

The company’s tantalum product mix was its second-largest segment in the fourth quarter, accounting for 21.7pc of sales. Magnetics remained the largest segment at 26.4pc, highlighting Yageo’s exposure to several component categories tied to electrification, automation, and high-performance computing.

This product mix matters because AI infrastructure requires dense, stable, and reliable components. Capacitors, magnetic components, sensors, and thermal management devices all sit inside the wider hardware supply chain that supports data centres, power conversion, and electronics manufacturing.

Tantalum Supply Squeeze Adds Cost Pressure to Component Makers

Tantalum concentrate and metal prices have surged to record highs since the start of the year. The increase has been driven by tight supply in central Africa and rising downstream demand from AI-related applications.

This creates a strategic challenge for capacitor producers. Strong AI demand supports revenue growth, but raw material tightness can raise input costs and pressure margins if customers resist price adjustments. For manufacturers such as Yageo, access to reliable tantalum supply is becoming more important as demand shifts toward higher-end applications.

Yageo’s acquisition of Japan’s Shibaura Electronics also broadens its component platform. Shibaura produces thermistors and temperature sensors used in automobiles, home appliances, and industrial applications. The deal strengthens Yageo’s exposure to sensing and thermal control, both of which are increasingly relevant in electronics, industrial systems, and mobility.

The Metalnomist Commentary

Yageo’s results show that AI demand is moving beyond chips and servers into the deeper electronic materials chain. The next constraint may not only be semiconductor capacity, but also specialty components and critical minerals such as tantalum.

Efficient recycling process for rare earth elements through bioleaching and bioaccumulation

IMC University of Applied Sciences Krems

A research collaboration between BOKU Tulln and IMC University of Applied Sciences Krems is using the further development of bioleaching and bioaccumulation to develop a two-stage, environmentally friendly and sustainable process for recovering rare earth elements (rare earths).

In the bioaccumulation step, metal recovery rates of up to 85% were achieved from electronic scrap. The key to success lies in the combination of biotechnological processes. The promising foundations for these methods, which are currently under development, were recently published in Frontiers in Microbiology.

The sharp rise in demand for electronics in recent years, used in a wide range of electronic devices such as mobile phones, electric vehicles and computers, has led to an increase in waste containing rare earths. Most of this waste still ends up in landfills unused, even though rare earths are an important source of raw materials and have even been classified as critical raw materials by the EU.

For this reason, intensive research is being carried out into efficient methods of recovery. Compared to other methods, the microbiology-based methods of bioleaching and bioaccumulation represent a promising green alternative technology for recovering critical raw materials from electronic waste. It is cost-effective, does not produce hazardous or polluting secondary waste, and uses less energy.

The basic principles of the processes are based on the production of acids by certain microorganisms that can leach certain metals such as iron, copper or aluminum from the electronic waste. These metals interfere with the absorption process of valuable rare earths in the subsequent bioaccumulation. Both methods have been researched for some time by the two partners, BOKU Tulln and IMC University of Applied Sciences Krems, and the research teams have now joined forces in a promising collaboration and combined their expertise.

'Nothing comes from nothing' : Training for microbes

In addition to the researchers, the current study involved a number of other key players in the bioleaching process, which is summarized in the joint technology: bacteria of different species. For example, Acidithiobacillus thiooxidans and Alicyclobacillus disulfidooxidans, which were originally collected from an acidic mining lake (pH 2.6) in the Czech Republic and then grown together in the laboratory, were used in the bioleaching process. These acidophilic and chemolithotrophic organisms thrive in acidic environments and derive their energy from the oxidation of inorganic compounds.

In terms of bioaccumulation, Escherichia coli, the well-known intestinal bacterium, proved to be the most successful accumulator of rare earths.

The main practical challenge for the enrichment process used to recover rare earths is the high content of other metals typically found in e-waste. In particular, iron, copper and aluminum interfere with the biotechnological process. To overcome this problem, the researchers came up with another innovative option: "training" the microbes. Using a device called a morbidostat developed at IST-Klosterneuburg, the organisms are gradually accustomed to higher metal concentrations. However, the bioaccumulation process has to be carried out carefully so that the organisms do not lose their ability to accumulate the valuable substances.

Efficiency in stages

The methods currently used to extract rare earths are based on chemical processes, which are associated with the formation of environmentally harmful by-products and the creation of new problematic substances. A combination of biotechnological methods has clear advantages over chemical methods, as both the leaching and the accumulation in the cells of the bacteria are environmentally friendly and sustainable, and no hazardous or polluting substances are produced at any stage of the process.

However, further research is needed to overcome the wide variation in the composition of e-waste. Even if the concentration of interfering metals such as aluminum, iron or copper is changed, the technology must work in such a way that the results are reproducible and reliable.

The researchers at BOKU and IMC Krems are pursuing several strategies to achieve this. Another strategy is to acclimate the bacteria responsible for bioleaching and bioaccumulation to high concentrations of interfering metals. This is made possible by using a system called morbidostat. In this system, the micro-organisms are exposed to a gradually increasing concentration of interfering metals. Then researchers wait until acculturation occurs and the organisms start to grow further.

Together with the conditioning of the microorganisms, systems are being tested that can trigger a reduction in the concentration of interfering metals. The materials being investigated include the so-called lignin hydrogels developed at BOKU. The combination of these strategies aims to ensure the efficiency and sustainability of the innovative combination of bioleaching and bioaccumulation to develop a new, environmentally friendly method for recycling scarce rare earths.

Materion AI Demand Lifts Sales as Defence Orders Strengthen

Materion

Materion AI demand helped drive a sharp rise in first-quarter sales as electronics, defence and semiconductor customers increased orders for advanced materials. The US-based producer reported net sales of $549.8mn, up 30.8% from a year earlier.

Materion AI demand was most visible in the company’s electronic materials segment, where sales rose strongly on higher demand from chipmaking applications. Adjusted Ebitda increased by 8.6% to $52.9mn, showing that revenue growth translated into stronger earnings despite mixed performance across business units.

Materion AI demand also reflects a broader industrial trend. Artificial intelligence is increasing demand for logic chips, memory devices, thin-film materials, high-purity chemicals and precision components used across the semiconductor supply chain.

The company’s order backlog rose by more than 20% year on year at the end of the quarter. Defence orders exceeded $60mn, while open requests for quotations surpassed $300mn, indicating continued momentum in aerospace and defence materials.

AI Chips Lift Electronic Materials Sales

Materion’s electronic materials segment delivered the strongest growth in the quarter. Net sales rose to $363.3mn from $224.8mn a year earlier.

The segment produces tantalum sputtering targets for thin-film vapour deposition. These targets are used in semiconductor manufacturing, especially in logic and memory chip production.

Tantalum is important because it supports thin, reliable and high-performance films inside advanced chips. As AI workloads grow, semiconductor manufacturers need more materials that support higher computing power, better efficiency and tighter device architectures.

Materion also produces advanced chemicals and semiconductor materials. These products place the company deeper inside the AI hardware supply chain, where material purity, consistency and qualification are critical.

The sales increase shows that AI is not only driving demand for finished chips or data centre hardware. It is also increasing demand for upstream specialty materials that enable chip fabrication.

This is significant for minor metals and advanced materials suppliers. AI growth is pulling more value toward high-purity inputs, sputtering targets, deposition materials, precision optics and performance alloys.

Defence Backlog Supports Performance Materials Recovery

Materion’s aerospace and defence order rates increased by 50% over the past 12 months. Energy order rates rose by more than 20%, while semiconductor order rates increased by 10%.

The defence order book is especially important. More than $60mn of defence orders in one quarter, combined with over $300mn in open quotation requests, gives Materion stronger visibility into future demand.

Materion’s performance-materials segment had a weaker first quarter. Net sales fell to $155.7mn from $174mn a year earlier, mainly because of lower precision-clad material sales.

However, the company expects performance-material sales to improve from the second quarter. Aerospace and defence demand should support the recovery.

The segment includes beryllium products and alloys, along with niobium, tantalum and nickel alloys. These materials serve demanding applications where strength, conductivity, thermal stability, corrosion resistance or weight reduction are essential.

Materion had suspended clad-strip production in the fourth quarter of 2025 because of material quality problems. Production resumed as expected in January-March and returned to pre-issue levels.

Precision optics also strengthened. Sales rose by 43% to $30.8mn, with demand improving across life sciences, consumer electronics, automotive, aerospace and defence, and semiconductors.

The result shows that Materion is exposed to several high-value growth channels at once. AI supports electronics materials, defence supports performance alloys, and precision optics benefits from advanced manufacturing and semiconductor demand.

The Metalnomist Commentary

Materion’s quarter shows how AI and defence demand are pulling specialty materials deeper into strategic supply chains. The key signal is not just higher sales, but the growing importance of tantalum, beryllium, niobium, nickel alloys and precision optics in advanced manufacturing.

AI Growth Boosts Electronics Metal Demand, But Broader Semiconductor Market Faces Weak Recovery

AI

The explosive growth of Artificial Intelligence (AI) is undoubtedly driving demand for specific electronic metals, but the broader electronics market, particularly the semiconductor sector, is struggling with a slower-than-expected recovery. As we approach 2025, the demand outlook remains mixed, despite AI's role in pushing innovation and technological expansion.

AI Fuels Electronics Demand

This year, AI technologies, especially AI-powered chatbots and smartphones, gained widespread traction. Companies like Apple and Samsung have been rolling out their own AI systems, with Apple’s “Apple Intelligence” software joining Samsung’s Galaxy AI. At the same time, OpenAI's ChatGPT reached 200 million active weekly users, doubling from the previous year. These developments indicate the mainstreaming of AI tools in everyday life.

The continued growth of AI will be supported by the physical expansion of data centres and the increased demand for hardware capable of handling AI's vast data processing needs. This translates into higher demand for specialty materials that make up critical electronic components. As data centres require more energy-efficient solutions to process increasing data volumes, materials like gallium nitride (GaN) and indium phosphide (InP) will play a central role.

Gallium Nitride (GaN) and Indium Phosphide (InP) Boosted by AI Expansion

As AI technologies scale, the energy demands of data centres will rise significantly. According to research from Goldman Sachs, the data centre expansion needed to support AI could increase electricity consumption by up to 160% by 2030. This will likely spur greater demand for GaN-based power electronics, which are more energy-efficient than traditional silicon electronics. GaN-based devices generate less heat and can operate at higher temperatures, making them ideal for data centres where cooling accounts for up to 40% of energy consumption.

Another compound semiconductor, indium phosphide (InP), is expected to gain traction as well. InP is already used in data and telecom transceivers and is poised to play a key role in the future of 6G wireless and satellite communications networks. InP-based photonic integrated circuits enable faster, more energy-efficient data transfers, making them essential for the high-speed data transfers required by AI clusters in data centres. This has garnered attention from the U.S. government, with the CHIPS Act supporting multiple InP-related projects this year.

Wider Electronics Demand Faces Challenges

Despite the promising outlook for AI-driven growth in specific sectors, the broader semiconductor market is still grappling with weaker-than-expected recovery. Materion, a U.S.-based producer of specialty materials for electronics, reported slower-than-expected semiconductor recovery in its third-quarter results. The company, which manufactures materials for chip manufacturing, including tantalum sputtering targets and antimony chemicals, noted that while there is strong demand for high-performance chips used in computing, the market for 2025 remains uncertain.

The situation was mirrored by ASML, a major chip equipment manufacturer, which lowered its revenue forecast for 2025 from €30-40 billion to €30-35 billion. ASML highlighted that semiconductor manufacturers are curbing capacity expansions due to the ongoing weakness in chip demand recovery.

Semiconductor Shipments and Market Outlook

The global semiconductor industry witnessed a peak in silicon wafer shipments in 2022, driven by supply shortages and high demand for consumer electronics during the pandemic. However, shipments of silicon wafers—a key indicator of chip production—are expected to drop from 14,565 million square inches (MSI) in 2022 to 12,174 MSI in 2024. Although global silicon wafer shipments are projected to rise to 13,328 MSI in 2025, the recovery expected in 2024 has largely failed to materialize, indicating continued challenges in the broader electronics market.

Conclusion

The demand for electronic metals, particularly those used in AI and data centre technologies, is on the rise. However, the semiconductor sector as a whole is still experiencing a slow recovery, with uncertainty surrounding the broader electronics market heading into 2025. While AI's growth continues to offer opportunities for companies involved in the production of GaN and InP-based components, the overall demand picture for electronics remains mixed, with slower-than-expected recovery from the pandemic-induced boom.

Metallium Gallium Recovery Project Advances US Critical Minerals Recycling

Australian Metallium

Metallium gallium recovery project plans have moved forward after the Australian recycling firm completed the first phase of a US Department of Defense contract ahead of schedule. The company is developing a process to recover gallium from complex waste streams, including semiconductor scrap and electronic waste.

The project is strategically important because gallium is essential for semiconductors, military systems, optics and advanced electronics. Global supply remains highly concentrated, with China accounting for nearly all primary gallium production.

Metallium gallium recovery project development comes as China’s export controls have intensified competition for non-China supply. Higher prices and stronger defense-related demand are making recovery technologies more commercially relevant.

Flash Joule Heating Targets Low-Concentration Gallium Streams

Metallium is using its proprietary Flash Joule Heating process to recover trace gallium from steel, alloy scrap, semiconductor scrap and electronic waste. The company also aims to recover germanium and other critical minerals in later phases.

End-of-life gallium recycling remains difficult because the metal is present in very small quantities once used in finished products. This makes recovery technically challenging and usually uneconomic unless prices, feedstock access and process efficiency improve together.

Metallium can now apply for Phase II funding of up to $1mn to advance pilot-scale operations. The company expects to start full commercial operations at its Texas facility this year.

Feedstock Deals Strengthen US Recycling Scale-Up

Metallium gallium recovery project scaling is supported by both government funding and private capital. The company raised $55mn from investors in June to accelerate commercial development.

Glencore will supply 2,400 t/yr of electronic waste, becoming Metallium’s major feedstock supplier and offtake partner. This agreement gives the Texas facility a clearer route to steady input material, which is critical for recycling economics.

Metallium also signed a deal last week to supply US-based metals refiner and manufacturer Indium with several recovered metals from its US recycling operations. Together, these agreements help connect scrap collection, recovery technology and downstream advanced materials demand.

Gallium prices have risen by 175% year on year and remain supported by firm demand and limited ex-China availability. That price environment improves the case for niche recycling projects, especially where defense and semiconductor supply security are involved.

The Metalnomist Commentary

Metallium’s project shows that critical mineral security will increasingly depend on recovering trace metals from complex waste streams. Gallium recycling will not replace primary supply quickly, but it can become a strategic buffer for defense, semiconductor and optics supply chains.

Metallium Indium Offtake Deal Strengthens US Critical Metals Recycling Chain

Metallium

Metallium Indium offtake deal plans will strengthen the US recycling route for critical metals used in advanced electronics, semiconductors and thin-film manufacturing. Australian metals recovery firm Metallium has signed a binding 10-year offtake agreement with US-based metals refiner and manufacturer Indium.

The Metallium Indium offtake deal covers several recovered metals, including gallium, germanium, copper, tin, indium and gold. Pricing will be formula-based, while final quantities have not yet been disclosed.

The Metallium Indium offtake deal gives Metallium a long-term commercial outlet for metals recovered from its US recycling operations. It also gives Indium access to secondary supply for materials used in solders, fluxes, thermal interface materials, sputtering targets and semiconductor-related products.

Texas Recycling Facility Targets High-Value Electronic Scrap

Metallium expects to recover metals at its recently commissioned Texas facility using flash joule heating technology. The process rapidly heats scrap mixtures in a controlled chlorine atmosphere to recover metals from synthesized LED manufacturing scrap.

The plant was first commissioned in December, with initial recovery focused on copper, tin, gold and silver from printed circuit board feedstock. Metallium later plans to establish gallium and germanium processing lines, which would move the facility deeper into critical minor metals recovery.

This matters because gallium and germanium are strategically important for semiconductors, optoelectronics, infrared systems, LEDs, solar technologies and defense-related applications. Recycling can help reduce exposure to concentrated primary supply and export-control risks.

Indium Agreement Links Recycling to Advanced Manufacturing Demand

Indium’s role gives the agreement direct industrial relevance. The company supplies materials into advanced electronics, semiconductor and thin-film markets, where high-purity and reliable metal supply are essential.

The companies are also discussing feedstock supply separately, which could deepen the partnership beyond offtake. If feedstock and product flows are aligned, the arrangement could support a more integrated recycling-to-refining model.

Metallium’s recent A$75mn capital raise from US institutional investors and earlier US Defense Logistics Agency support add strategic weight to the Texas facility. The funding shows that US critical minerals recycling is becoming a defense, technology and industrial policy priority.

The Metalnomist Commentary

The Metallium-Indium agreement shows that critical mineral security is moving into electronic scrap and advanced recycling. The key opportunity is not only recovering copper and precious metals, but building domestic capacity for gallium, germanium and indium supply chains.

Japan Explores E-Scrap Opportunities in Southeast Asia Amid EU Supply Risks

Electronic Scrap

As concerns about European Union (EU) export restrictions grow, Japan is shifting its focus to Southeast Asia for electronic scrap (e-scrap) procurement to mitigate potential supply disruptions. This strategic pivot comes as the EU contemplates extending stringent controls on e-scrap exports, possibly affecting Japan, a nation heavily reliant on these resources for its non-ferrous metal production, including copper.

EU Regulations Tighten, Japan's Response

The recent implementation of the EU's Waste Shipment Regulation (WSR) in January 2023, which restricts scrap metal exports to non-OECD countries for environmental reasons, has raised alarms in Japan. Japanese custom data indicates that in 2023, Japan imported approximately 73,000 tons of e-scrap from the EU, accounting for about 40% of its total e-scrap imports. The Japanese Ministry of Environment highlights the country's dependence on imports to satisfy nearly half of its domestic e-scrap needs.

In response to the EU's policy shift and the consequent supply risk, Japan and the Association of Southeast Asian Nations (ASEAN) signed a circular economy initiative in August 2023, aiming to foster e-scrap procurement and processing in the region.

Challenges in Southeast Asia

Despite these efforts, the transition to Southeast Asian sources is not without challenges. A ministerial meeting between Japan and ASEAN in Laos in September revealed no specific advancements in circular economy discussions. The Economic Research Institute for ASEAN and East Asia (Eria) reported in 2023 that the region's smelting capacity for non-ferrous metals is significantly underdeveloped, with secondary production figures for aluminium and copper being notably low.

Moreover, the Global E-waste Monitor 2024 by the United Nations indicates a stark contrast in recycling rates between Asia (12% in 2022) and Europe (43%). Indonesia, while being the largest e-scrap producer in Southeast Asia, faces severe limitations in e-scrap management and infrastructure, often resorting to landfill disposal.

Conclusion

As Japan navigates these complex international dynamics, the necessity for diversified and secure e-scrap sources is more apparent than ever. The country's move towards Southeast Asia represents a cautious yet hopeful approach to securing the metals essential for its economic stability and technological advancements.

Japan Tungsten Plant to Cut Sumitomo Electric’s Reliance on China

Sumitomo Electric

Japan tungsten plant investment by Sumitomo Electric Industries will expand domestic tungsten powder capacity and strengthen Japan’s critical mineral supply chain. The company plans to build a new facility in Toyama city with about ¥15.9bn, or $100mn, in investment.

The new plant will be operated by group company Allied Material and is scheduled to start operations in the first half of fiscal 2028. Sumitomo Electric said the project will expand its tungsten supply capacity by around 50%.

Japan tungsten plant development matters because tungsten is essential for cemented carbide cutting tools, semiconductors, electronic components and advanced industrial manufacturing. The investment also reflects Tokyo’s wider effort to reduce exposure to China-dominated critical material supply chains.

Tungsten Powder Capacity Supports High-End Manufacturing

The Toyama facility will expand production capacity for tungsten powder near Sumitomo Electric’s existing plant. The company has not yet disclosed the precise capacity of the new line.

Tungsten powder is a key input for cemented carbide tools used in metal cutting and precision machining. These tools support automotive, aerospace, electronics, machinery and industrial equipment production.

The material also has strategic relevance in semiconductors and electronic components. This makes tungsten more than a tooling metal; it is part of the materials base behind advanced manufacturing and technology supply chains.

Japan Backs Domestic Recycling and Supply Security

The Japanese government will cover about ¥7.5bn of the investment through a subsidy aimed at securing critical mineral supply chains. This public support shows that tungsten is now treated as a strategic industrial material.

Global tungsten supply remains heavily dependent on China. Sumitomo Electric said it currently relies on China for about 30% of its tungsten imports.

The new Japan tungsten plant will help the company strengthen its domestic recycling system and gradually reduce that dependence. Recycling will be especially important because secondary tungsten can improve supply resilience without relying only on new mined material.

The Metalnomist Commentary

Sumitomo Electric’s investment shows that tungsten security is becoming a manufacturing competitiveness issue. Japan is not only adding capacity; it is building a recycling-backed buffer for cutting tools, semiconductors and advanced components.

MMC ReElement Rare-Earth Recycling Deal Strengthens Allied Supply Chains

MMC, ReElement

MMC ReElement rare-earth recycling plans mark another step in Japan’s effort to build resilient rare earth supply chains outside China. Mitsubishi Materials will invest in Indiana-based ReElement Technologies through preferred shares and collaborate on recycling rare earths from secondary sources.

The partnership will combine Mitsubishi Materials pretreatment and metal recovery capabilities with ReElement’s chromatography-based separation and purification technology. The companies aim to recover rare earths from home appliances, automotive parts and electronic scrap.

MMC ReElement rare-earth recycling is strategically important because recycling can reduce dependence on primary mining and imported separated rare earth products. It also gives Japan and North America another route to support domestic and allied manufacturing.

Chromatography Technology Targets High-Purity Rare Earth Recovery

ReElement’s technology uses proprietary chromatography-based processes to separate and purify rare earths. The company says the process can recover rare earths at purity above 99.5% and yield above 95%.

This matters because rare earth recycling is not simply a scrap collection business. The real challenge is separating complex mixed materials into high-purity products that can meet downstream specifications.

Mitsubishi Materials plans to apply the technology in North America and Japan. By integrating pretreatment, metal recovery, separation and purification, the companies could create a more complete recycling route for rare earth-bearing waste streams.

Japan and North America Build Circular Rare Earth Capacity

MMC ReElement rare-earth recycling cooperation fits a broader push to secure magnet and advanced materials supply chains. Rare earths recovered from appliances, automotive parts and electronic scrap could support manufacturing sectors that use motors, sensors, electronics and high-performance components.

The companies may also establish a joint venture to scale the model. That would move the relationship beyond financial investment and into deeper industrial collaboration.

For Mitsubishi Materials, the agreement supports its resource circulation strategy. For ReElement, the investment adds a major Japanese industrial partner with experience in metals processing and recycling.

The Metalnomist Commentary

MMC ReElement rare-earth recycling shows that supply security is moving from mining projects into urban mining and advanced separation. The strongest model will combine scrap access, pretreatment know-how and high-purity separation technology into one scalable value chain.

Vulcan US magnet plant signals new era for recycled rare earth magnets

Vulcan Elements

The Vulcan US magnet plant will anchor a new recycled rare earth magnet supply chain in North America. The project targets 10,000 metric tonnes per year of magnet production, focused on recycling magnets and electronic waste. As a result, the Vulcan US magnet plant directly supports US reshoring efforts in rare earth magnets for defence and clean energy.

Vulcan US magnet plant built on public–private financing

The Vulcan US magnet plant will rely on a blended finance structure combining US government and private capital. Vulcan secured a $620mn direct loan from the Department of Defense and $50mn in equity from the US Department of Commerce, alongside $550mn in private funding. This mix underlines Washington’s view of rare earth magnets as critical defence infrastructure rather than a pure commodity business.

Vulcan’s structure also gives federal agencies upside exposure. The Defense Department will receive warrants in both Vulcan and its processing partner ReElement Technologies, while Commerce takes a direct equity stake in Vulcan. Therefore the capital stack aligns national security objectives with commercial returns, a pattern increasingly common across US critical minerals projects.

Recycling and diversified feedstock at the heart of the model

Vulcan partners with ReElement Technologies to convert end-of-life magnets, electronic waste and mined concentrates into high-purity rare earth oxides. This model leans on urban mining and recycling to reduce dependence on imported primary rare earths. In parallel, supply agreements with Energy Fuels and ReElement provide neodymium-praseodymium and dysprosium oxides, plus broader light and heavy rare earth oxides.

The plant’s design aims squarely at high-performance permanent magnets for electric vehicles, wind turbines and defence platforms. By combining recycled material with mined concentrates, the project improves resilience against export controls and price volatility. If the Vulcan US magnet plant ramps as planned, it could become a key node in a closed-loop rare earth ecosystem in the US.

The Metalnomist Commentary

Vulcan’s entry shows how the magnet segment is becoming the strategic front line of rare earth industrial policy. Government-backed recycling-centric capacity may set a benchmark for future US projects, especially as defence supply chain audits tighten. The real test will be scaling efficiently while meeting strict magnet performance specs for automotive and defence customers.

LME Announces Reforms for Key Metal Contracts

The London Metal Exchange (LME) has announced a range of measures aimed at boosting electronic trading on its LMEselect platform while reducing ring trading activity in its three-month contracts for key industrial metals that serve as global benchmark references. The exchange said the measures, outlined in a white paper released today, aim to increase liquidity and enhance price transparency, while preserving its unique physical metal trading practices.

The LME's white paper mainly sets out a liquidity provider programme, the introduction of block trade rules, increased transparency for inter-office trades and over-the-counter (OTC) lookalike trades as part of its reforms. The block trade rules will require smaller trades involving each monthly date out to one year for metals such as aluminium, copper, zinc, nickel and lead to be executed electronically via LMEselect. But it said its daily prompt date structure, essential for physical market trading, will remain unaffected by this change.

To further support the block rules, the LME's new liquidity provider programme will incentivise the trading of "certain liquid instruments" at the front end of the curve, it said. And the LME added that it will require all trades, regardless of size, to be booked into the LME system and published on external market data feeds, a move designed to increase transparency by bringing even inter-office trades into the electronic fold.

The rules introduced for exchange-traded activity will also apply to OTC trades, the LME said. It will introduce similar block rules for OTC contracts that reference LME prices, creating a transparent central liquidity pool for all activity.

The exchange will work with members to assess the impact of proposed changes to their business models, with working groups established over the next 12 months to discuss the details of the implementation.

The proposed measures will undergo a formal consultation process and a regulatory approval process, with the LME aiming to implement the full package of reforms in the second half of 2025. Testing for the new trading system that incorporates the reforms has already started, the bourse said.

Open-outcry trading in the exchange's ring is used to set official prices used by both the physical and speculative markets, with LME select used for closing prices.

Surging Demand for NdFeB Magnets Driven by EVs and Renewables

CSRE

The demand for high-performance neodymium-iron-boron (NdFeB) magnets is expected to surge, driven by key applications such as electric vehicles (EVs), wind turbines, and energy-saving technologies. According to Zhang Anwen, counsellor at the Chinese Society of Rare Earths (CSRE), global consumption of NdFeB magnets is projected to reach 400,000 tons annually by 2030, a significant rise from 10,000 tons in 2023. The EV industry alone accounts for 30% of global magnet demand, followed by inverter air conditioners and industrial robots, both at 16%, and wind turbines at 12%.

A Rise in China’s Production

China’s magnet production has seen remarkable growth in recent years. In 2023, China produced 270,000 tons of rough NdFeB magnetic materials, an 18% increase compared to the previous year, and nearly double the 140,000 tons produced in 2025. The production of sintered NdFeB magnets alone climbed to 255,200 tons in 2023, further solidifying China’s dominance in the global magnet market. The country's output of samarium-cobalt magnets also rose to 3,723 tons in 2023, continuing a growth trend in the production of rare earth magnetic materials.

Key Applications Fueling Demand Growth

The automotive sector, particularly EVs, remains the largest consumer of NdFeB magnets. The demand for NdFeB magnets in China’s automobile industry alone reached 36,200 tons in 2023. The electronic power steering (EPS) system in the global market also contributed significantly, with an estimated 12,000 tons used. Additionally, China's production of industrial robots has driven up magnet consumption, as the country accounted for 72% of global robot production in 2023. The elevator and inverter air conditioner sectors also show robust growth, with magnet consumption in these areas increasing steadily over the years.

China's rare earth smelting and separation output reached 337,300 tons of rare earth oxide (REO) in 2023, a massive leap from 96,900 tons in 2010, driven by both plentiful feedstock supplies and the growing demand for magnets. With these figures in mind, the future of NdFeB magnets looks bright, particularly as the world continues its transition to cleaner energy and advanced technologies.

Canada adds iron ore to the list of critical raw materials

Iron raw materials

High-quality iron ore is required for the production of environmentally friendly steel and is an integral part of the decarbonization process 

Natural Resources Canada has added high-quality iron ore to the list of critical minerals. This was reported by Mining.com with reference to the Ministry’s data.

The list of critical minerals, which has already reached 34 types of raw materials, also includes phosphorus and silicon.

"These raw materials are integral to a wide range of products that are critical to the energy transition, often in short supply, and critical to Canada’s future economic prosperity," the government said in a statement.

Silicon is used to make chips and semiconductors used in most electronic devices. High-quality iron ore is needed to make environmentally friendly steel and is an integral part of the decarbonization process. Phosphorus is in demand for fertilizers and batteries.

The list of critical minerals was first released in March 2021 as part of Canada’s emissions reduction plan, which aims to reduce Co2 emissions by 40-45% below 2005 levels by 2030 and achieve zero emissions by 2050.

Champion Iron, which owns and operates the Bloom Lake mining complex in Quebec, welcomed the addition of iron ore to the List of Critical Minerals. The company’s mine, on the southern edge of the Labrador Trough, has one of the world’s highest iron ore reserves and can produce iron ore concentrate with an iron content of 67.5%. Champion Iron is working on several modernization projects to increase the iron content of iron ore concentrate to 69%.

As Metalnomist reported earlier, global iron ore exports in January-March 2024 increased by 6% compared to the same period in 2023 – to 376 million tons. In the short term, global iron ore exports will remain high as major global companies maintain their production forecasts.

FedEx Tariff Refunds Lawsuit Raises New Uncertainty for US Importers

FedEx

FedEx tariff refunds are becoming a major test case for companies seeking to recover duties paid under cancelled US import tariffs. The global shipping group has filed a lawsuit against the US administration after the Supreme Court struck down most of the duties imposed last year under emergency powers.

The case matters beyond FedEx. As an importer of record for goods entering the United States, FedEx sits directly inside the customs system used by manufacturers, retailers, refiners, traders, and industrial buyers. Its lawsuit could influence how other companies pursue refunds and how regulators manage a potentially complex repayment process.

FedEx tariff refunds could also affect trade compliance strategy across commodity and manufacturing supply chains. Many companies paid duties on imported inputs, finished goods, energy products, and industrial materials. If refunds become available, importers will need documentation, customs records, and legal clarity to recover what they paid.

Importers Face a Complicated Refund Process

The refund process is likely to be difficult because the total value of disputed duties is extremely large. The US had collected $133bn in tariffs under IEEPA by December, and economists estimate the amount may have since risen to about $175bn. That creates a major administrative challenge for customs authorities and eligible importers.

FedEx said it suffered injury from the cancelled tariffs and is seeking a full refund with interest. However, the company has not disclosed a specific monetary claim. It has also warned that no formal refund process has yet been established by regulators or the courts.

Hundreds of companies have already filed tariff refund lawsuits, including refiners Valero and Marathon Petroleum. This shows that the issue is not limited to logistics companies. It reaches energy, manufacturing, retail, metals, chemicals, and other import-heavy sectors that absorbed tariff costs during the disputed period.

New Tariffs Keep Pressure on Supply Chains

The legal fight over FedEx tariff refunds is unfolding as new US import duties take effect under a different trade authority. A new 10pc tariff on all US imports has started, while the administration has signalled a potential increase to 15pc. This means companies may be pursuing refunds for one tariff regime while preparing for cost increases under another.

For industrial buyers, that creates planning uncertainty. Tariffs affect landed costs, sourcing decisions, inventory strategy, and contract pricing. Companies importing metals, machinery, energy products, electronic components, and intermediate goods may need to reassess supplier exposure and tariff recovery options at the same time.

The dispute also highlights the growing legal risk around trade policy. Tariffs can be imposed quickly, but refunding them after a court ruling can take years. That gap leaves importers exposed to cash-flow pressure, accounting complexity, and uncertainty over whether duties can be recovered.

The Metalnomist Commentary

FedEx tariff refunds could become a benchmark for how importers recover costs from overturned trade measures. The bigger issue is that US tariff policy is now creating legal uncertainty as well as supply-chain cost pressure.

UK Unveils Critical Raw Material Recovery Plan for Defence Sector

Team Defence Information

MoD Targets CRM Recycling in Defence Supply Chain

The UK Ministry of Defence (MoD) has unveiled a comprehensive framework to recover critical raw materials (CRMs) from end-of-life military equipment, aiming to secure strategic resources and strengthen national supply chain resilience. Developed with trade association Team Defence Information, the plan embeds circular economy principles into procurement, maintenance, and disposal processes across the defence sector. This marks a significant departure from past practices, where most military equipment was discarded without extracting valuable materials.

Defence spending is set to rise, with Prime Minister Keir Starmer pledging an increase to 2.5% of GDP by 2027 from 2.3% in 2024. This growth will drive demand for specialty metals such as rare earth elements, tungsten, and cobalt — all of which face potential supply disruptions due to geopolitical tensions. The framework addresses these risks by prioritising domestic recovery and processing, reducing dependence on imports from politically sensitive regions.

Expanding Domestic Processing and Recycling Capacity

The new strategy identifies vulnerabilities within the UK's critical minerals supply chain, mapping gaps in domestic recovery and refining capabilities. It recommends building vertically integrated recycling operations capable of handling everything from dismantling retired military vehicles to processing complex alloys used in advanced defence systems. By leveraging its mature electronic waste recycling infrastructure, the UK can extend recovery efforts beyond precious metals such as gold, silver, and platinum group metals to include less commonly recycled elements essential for defence technologies.

However, achieving this goal will require substantial investment. The framework calls for stronger financial incentives, such as tax relief and targeted subsidies, to encourage both public and private sector participation. It also suggests that the MoD could directly fund projects aligned with its operational needs, enabling rapid scaling of pilot programmes. Collaboration with research institutions and industry will be key to developing cost-effective recovery methods for metals embedded in complex military hardware.

Strategic Benefits for National Security

Strengthening domestic CRM recovery is not just an environmental initiative but also a matter of national security. A reliable domestic supply of critical metals can shield the defence sector from price volatility, trade restrictions, and supply chain shocks. This is especially important as global competition for critical minerals intensifies, driven by the energy transition and the rapid growth of clean technologies.

The UK’s mature recycling infrastructure, combined with targeted investment in processing technologies, positions the country to become a leader in defence-related CRM recovery. If successfully implemented, the framework could serve as a model for other NATO members seeking to enhance their strategic resource independence while meeting sustainability targets.

The Metalnomist Commentary

The UK’s CRM recovery framework reflects a strategic convergence of defence policy and resource security. By integrating circular economy practices into military logistics, the country can reduce reliance on geopolitically sensitive imports and strengthen its industrial base. The key challenge will be balancing speed of implementation with cost efficiency, ensuring that recovery operations are both technically viable and commercially sustainable.