Yusheng germanium production resumes amid tight feedstocks and soft demand

Yusheng germanium

Yusheng germanium production has resumed in China after a month-long halt caused by mine security checks. Yusheng germanium production is ramping back up at a 50 t/yr capacity, but constrained feedstocks and low downstream demand still dominate market sentiment. As a result, Yusheng germanium production is returning to the market in a fragile balance between cost pressures and weak infrared sector consumption.

Feedstock constraints and price hike shape Yusheng germanium production

Guangxi Yusheng halted operations in early September after a security check at its Guizhou zinc and lead mine. The inspection disrupted feedstock supply and forced a pause in germanium output at the 50 t/yr facility. Now, the company has restarted production but faces low inventory levels.

Yusheng has raised its germanium sales price by 5pc on resumption. The producer cites tight stocks and firm feedstock costs as the main drivers. However, many buyers question whether the market can absorb higher prices. Demand from the infrared applications sector remains notably weak.

Some participants expect prices to hold rather than rise further. Firm concentrate and intermediate prices could support the floor, even as end-use demand struggles. In this environment, Yusheng germanium production acts more as a stabilising presence than a bullish catalyst.

Export controls weigh on germanium demand and trade flows

China has tightened export controls on downstream germanium infrared products since June. These products are treated as dual-use items with both civilian and military applications. The controls restrict the flow of value-added germanium components into global markets.

Last year, strong defence and security demand drove a surge in germanium consumption. Escalating geopolitical tensions boosted orders for infrared optics and other military-linked uses. Now, stricter controls are curbing that channel, adding another headwind to germanium demand.

As a result, domestic producers must navigate a market where feedstock remains firm, but downstream orders are cautious and policy constrained. For Yusheng, the challenge is to balance stable operations with a realistic view of off-take in sensitive end-use segments.

The Metalnomist Commentary

Yusheng’s restart underscores how policy, security checks and strategic controls now shape germanium more than classic supply–demand cycles. Tight feedstocks and export restrictions create a floor under prices, but weak infrared demand caps upside. For investors and suppliers, the germanium market is increasingly a geopolitical barometer, not just a specialty metals niche.

US Gallium Recovery Projects Target Domestic Supply Chain for Defense and Semiconductors

DOE(The US Department of Energy)

US gallium recovery projects will receive $5.4mn in funding from the Department of Energy as Washington tries to rebuild domestic supply for a metal critical to defense systems, semiconductors and advanced electronics. The funding will support five US-based projects under the Technology for Recovery and Advanced Critical-material Extraction – Gallium initiative.

The TRACE-Ga initiative is designed to prototype technologies that can recover gallium from US metal-processing feedstocks. This is important because the US is fully import-reliant for gallium and has not produced the metal domestically since 1987.

US gallium recovery projects are gaining urgency because gallium is essential for compound semiconductor materials, including gallium nitride. These materials support power electronics, radio-frequency devices, radar systems, satellite communications, fast chargers, LEDs and other high-performance technologies.

The funding is modest in scale, but strategically important. It signals that the US is no longer focusing only on mining new critical minerals. It is also trying to recover strategic metals from industrial by-products, waste streams and existing processing networks.

TRACE-Ga Funding Targets Recovery From Existing Feedstocks

The DOE award will support five companies working on gallium recovery technologies. Participants include PHNX Materials, Atlantic Alumina Company, Found Energy, Kunin Technologies and Indium Corporation.

The selection of companies shows how broad the recovery opportunity could become. Gallium is not usually mined as a primary product. It is commonly recovered as a by-product from other industrial processes, especially alumina and zinc-related supply chains.

This makes gallium recovery different from conventional mining. The key challenge is not only finding deposits, but identifying feedstocks where gallium exists in recoverable concentrations and developing technologies that can extract it economically.

Industrial waste refiner PHNX Materials could support recovery from complex waste streams. Atlantic Alumina Company brings relevance to alumina-linked feedstock. Found Energy adds an aluminum-related industrial angle, while Kunin Technologies focuses on mineral by-product recovery. Indium Corporation brings downstream metals refining and manufacturing expertise.

The TRACE-Ga initiative therefore targets the middle of the supply chain. It seeks to bridge the gap between laboratory recovery methods and scalable domestic production.

That gap matters because gallium supply is highly concentrated. China dominates primary gallium production and has used export controls to increase pressure on global buyers. For US defense and semiconductor supply chains, reliance on foreign gallium has become a clear strategic risk.

Domestic recovery could help reduce that exposure. Even if early projects produce limited volumes, they can prove process routes, identify feedstock partners and create the technical base for larger recovery systems.

The use of US metal-processing feedstocks also fits a wider circular materials strategy. Instead of waiting for new mines, the US can extract critical materials from industrial streams already moving through domestic facilities.

This could make recovery faster than new primary production. However, it still requires technical success, feedstock security, refining capability and customer qualification.

Gallium Nitride Demand Raises Strategic Pressure

Gallium’s strategic value has increased because of its role in gallium nitride and other compound semiconductor materials. Gallium nitride is widely used where high power, high frequency, efficiency and heat performance matter.

These applications are highly relevant to defense and advanced electronics. Radar, communications systems, satellite technologies, power conversion equipment and semiconductor devices all rely on materials where gallium can be difficult to substitute.

The DOE’s TRACE-Ga funding also sits alongside a larger notice of funding opportunity of up to $69mn. That programme targets technologies and processes that advance domestic production and refining of critical materials, including gallium and gallium nitride for semiconductor applications.

This shows that Washington is building a layered funding strategy. TRACE-Ga supports recovery prototypes, while broader DOE programmes aim to scale refining, alloying and advanced material production.

For the semiconductor industry, domestic gallium supply is not only a raw material issue. It is connected to wafer production, epitaxy, device manufacturing, packaging and defense procurement. A shortage or export disruption at the gallium stage can move through the entire compound semiconductor chain.

This is why gallium recovery matters even if volumes are small at first. Strategic materials often have low tonnage but high consequence. A reliable domestic supply stream can reduce procurement risk for critical systems.

The challenge will be commercialisation. Recovery from waste and by-products can be technically complex because gallium concentrations may be low and feedstock chemistry can vary. Companies must prove that their processes can recover gallium consistently, meet purity requirements and operate at competitive cost.

The US also needs downstream refining capacity. Recovering gallium-bearing material is not enough if the material cannot be refined into forms suitable for semiconductor and defense applications.

The DOE funding is therefore best understood as an early-stage industrial rebuilding tool. It does not immediately solve US gallium dependence, but it helps create the technologies and partnerships needed to rebuild supply.

The Metalnomist Commentary

US gallium recovery projects show that critical mineral security increasingly depends on recovering by-products from existing industrial systems. The strategic test will be whether TRACE-Ga can move beyond prototypes and create reliable domestic feedstock for gallium nitride, defense electronics and semiconductor manufacturing.

Mozambique's Moma Titanium Mine Continues Operations Amid Protests

Moma Titanium Mine

Kenmare Resources confirms that operations at its Moma titanium mine in northern Mozambique are ongoing, despite national protests following the October elections.

Mozambique-based mining company Kenmare Resources has confirmed that its Moma Titanium Mine in Nampula province, northern Mozambique, is continuing normal operations despite nationwide protests in response to the country's controversial 9 October general election results.

Operations Unaffected Amid Protests

The protests, which erupted after the announcement of the election results, have primarily been fueled by opposition claims of election fraud. Daniel Chapo of the ruling Frelimo party was declared the winner of the election with 71% of the vote, according to reports from Amnesty International. Venancio Mondlane, the leader of the opposition, who secured 20% of the vote, called for nationwide protests. These protests have been met with a heavy security presence, which has reportedly helped to calm the situation over the past weekend.

Despite the unrest, Kenmare Resources assured stakeholders that operations at the Moma mine have not been disrupted. The company has been taking preventative measures to safeguard its personnel and the integrity of its facilities, although no employees have been evacuated. Senior management remains on-site, and Kenmare continues to monitor the situation closely.

Moma Mine's Role in Global Titanium Supply

The Moma Titanium Mine is one of the largest producers of heavy mineral concentrates in the world, with a focus on producing titanium feedstocks such as ilmenite. The mine plays a crucial role in supplying raw materials for the global titanium industry, which is essential for a wide range of applications, including aerospace, automotive, and electronics manufacturing.

Kenmare’s operations at Moma include the extraction and processing of titanium-rich ores, which are then processed to produce feedstocks that support global titanium production. Despite the political instability in Mozambique, the mine’s operations continue to supply a steady output of these critical minerals.

Political Context and Industry Impact

The protests following the election results have raised concerns about the political stability of the region and the potential impact on mining operations. However, Kenmare Resources has reassured investors and stakeholders that there has been no disruption to its operations at the Moma site. The company’s proactive measures to ensure the safety of its staff and facilities have helped to maintain stability in its mining activities.

The Moma Mine is a key asset for Kenmare, and its continued operation is vital not only for the company but also for the broader titanium industry, which is heavily reliant on stable production and consistent supply.

Conclusion

Despite the protests that have unfolded in Mozambique following the election results, Kenmare Resources has successfully kept its Moma Titanium Mine operational. The company’s vigilance in monitoring the situation and taking necessary precautions underscores its commitment to both safety and maintaining a steady supply of titanium feedstocks. With a heightened security presence, the situation in Mozambique appears to be under control for now, ensuring that Kenmare’s mining operations remain unaffected.

Chinese titanium and zirconium buyers shift to low-grade ore as margins shrink

Zirconium

Chinese titanium and zirconium buyers shift to low-grade ore as profits shrink across ceramics and coatings markets. Demand has weakened with China’s real estate slowdown, compressing margins for titanium dioxide and zirconium producers. As a result, producers prioritise cheaper feedstocks even if processing costs and impurity levels rise.

Demand slump pushes buyers down the grade curve

Low demand in ceramics and coatings has shifted ore preferences down the grade curve. Downstream titanium dioxide producers now favour low-grade titanium ore to defend eroded operating margins. Conference delegates heard that low-grade ore currently outsells high-grade alternatives in China’s spot market.

Import data shows where Chinese titanium and zirconium buyers shift to low-grade ore geographically. China increased low-grade titanium ore imports from Mozambique and Nigeria while cutting Vietnamese high-grade purchases sharply. Mozambican volumes rose to 1.3mn tonnes, up 5.6pc year on year during January–July. Nigerian shipments grew 18pc to 153,500 tonnes, while Vietnamese supply fell 85pc to 20,800 tonnes.

Zircon feedstock downgrades and weak ceramics utilisation

Zircon buyers mirror this trend, shifting toward low-grade zircon sand and zirconium silicate feedstocks. Manufacturers increasingly accept 63pc or 63.5pc grades instead of traditional 64pc or 64.5pc material. China’s imports of Nigerian zircon ore jumped 367pc to 117,300 tonnes, while South African volumes edged lower. Meanwhile, ceramic tile demand has slumped, with industry run rates below 50pc so far this year.

Despite today’s weakness, executives expect Chinese titanium and zirconium buyers shift to low-grade ore to be temporary. They cite potential macroeconomic recovery, export growth and government support as medium-term demand drivers. In addition, planned output cuts at major titanium and zirconium producers could tighten markets and lift prices. As inventories normalise, buyers may gradually return to higher-grade feedstocks to maximise efficiency and product quality.

The Metalnomist Commentary

Today’s grade downgrades highlight how sensitive titanium and zirconium chains remain to construction and ceramics cycles. Producers able to flex between ore qualities and regions will manage this downturn best and capture upside later. For investors, Mozambique and Nigeria’s rising low-grade exports deserve close monitoring as potential leverage points.

REalloys DLA Contract Targets US Samarium and Gadolinium Metal Production

REalloys

REalloys DLA contract support will help scale domestic production of samarium and gadolinium metals, two rare earth materials with strategic value for defense and advanced manufacturing. The US Defense Logistics Agency awarded the contract to Terves, whose rare earth assets were acquired by REalloys in March 2025.

The REalloys DLA contract focuses on next-generation metallothermal processing for samarium and gadolinium. A core deliverable is the full plant design for a 300 t/yr modular facility that can reduce mixed samarium-europium-gadolinium feedstocks into high-purity metals.

The project matters because commercial-scale separated samarium and gadolinium metal production does not currently exist in the US. Domestic users therefore remain exposed to offshore supply at a time when rare earth supply chains are viewed as a strategic vulnerability.

Modular Metallothermal Processing Could Reduce Dependence on Offshore Supply

REalloys aims to advance both wet chemistry preparation and reduction-to-metal operations under the DLA-backed program. The goal is to establish a commercial-scale domestic route for producing rare earth metals from SEG feedstocks.

The company said its process differs from conventional rare earth production, which often relies on large solvent extraction circuits. A modular approach could offer a more flexible processing model if it can prove quality, cost, throughput, and repeatability at scale.

REalloys has also filed a provisional patent covering direct reduction of SEG feedstocks and direct recycling of all byproducts. The company said this zero-waste configuration could reduce capital intensity and lower production costs by up to 50pc compared with traditional processing routes.

Defense Demand Raises Strategic Value of Rare Earth Metals

The REalloys DLA contract fits into a wider US effort to reduce rare earth supply-chain exposure. The DLA manages the US National Defense Stockpile and has identified rare earth supply chains as a strategic vulnerability amid geopolitical tensions.

Samarium and gadolinium are not the highest-volume rare earths, but they carry high strategic importance. Samarium is used in specialty permanent magnets, while gadolinium has applications across advanced materials, electronics, and defense-related technologies.

REalloys is also developing an integrated North American rare earth platform. Its strategy includes the Hoidas Lake project in Saskatchewan and downstream metallization operations in Ohio, linking upstream resource development with US-based metal production capability.

The Metalnomist Commentary

The REalloys DLA contract shows that rare earth security is moving beyond mining and separation into metallization. For defense supply chains, the critical question is whether North America can produce qualified rare earth metals at commercial scale, not simply recover oxides.

China's Copper Scrap Imports Surge in 2024 Amid Tight Supply and Policy Changes

Copper Scrap

China’s copper scrap imports saw a notable 13% increase in 2024 as domestic refined copper producers turned to scrap due to a tightening copper concentrate supply. This shift helped offset the shortages in copper concentrate, which traditionally serves as the primary feedstock for refining operations. The increased demand for scrap also led to a significant month-on-month rise in December, with imports soaring by 25% compared to November.

December Surge Attributed to Price Dynamics and US-Related Imports

A key factor contributing to this December surge was the reopening of the import arbitrage in the second half of November. This shift occurred as domestic copper metal prices in China rose above those on the London Metal Exchange (LME), making imports more economically viable. Additionally, scrap buyers accelerated the clearance of US-origin copper scrap at customs to avoid potential countermeasures after the election of US President Donald Trump. This urgency, combined with strategic import decisions, led to a marked rise in imports in the final month of the year.

Government Policy Supports Copper Scrap Imports in 2025

In a bid to further boost the availability of copper scrap, China has expanded its import duty exemptions for recycled copper feedstocks. For 2025, the government broadened the scope of products under HS code 74040000 to include not only recycled brass and copper feedstocks but also recycled copper and alloy feedstocks. Import duties for these materials remain at zero, a move that further encourages the import of scrap and helps meet the growing demand for copper in China.

Copper Cathode Output Declines in 2023-24

Aurubis, Europe’s leading copper producer and recycler, reported a 4% drop in its copper cathode production for the 2023-24 fiscal year, totaling 578,000 tons. The decline was driven by a 30% reduction in output at its Hamburg facility, where operations were delayed following a maintenance shutdown. Despite the setback in Germany, the company maintained a solid performance in Bulgaria, with 229,000 tons produced at its Pirdop site.

Phoenix Tailings Raises $76M to Launch First US Standalone Rare Earth Metals Plant

Phoenix Tailings

Phoenix Tailings rare earth plant to meet US defense demand

US-based startup Phoenix Tailings has raised $76 million in Series B funding to build a rare earth metals plant in New Hampshire. The Exeter facility will be the first standalone US rare earth refinery capable of producing finished metals directly from diverse feedstocks. Once fully operational, the site will have a 500t/yr production capacity—matching the entire annual demand of the US defense sector.

Exeter facility to refine key rare earth elements for magnet manufacturers

Initial output from the Phoenix Tailings rare earth plant will start this summer at 200t/yr, ramping up to 500t/yr in time. The facility will produce neodymium-praseodymium, ferro-dysprosium, dysprosium, and terbium—all essential for permanent magnets used in defense, electric vehicles, and medical devices. It will process feedstocks from mines, coal ash, recycling streams, and other industrial byproducts, offering flexible sourcing.

Global investors back strategic US supply chain expansion

The oversubscribed $76 million Series B round was led by Envisioning Partners of Korea and included Escape Velocity, Builders Vision, Yamaha Motor Ventures, M Power, and Sumitomo’s Presidio Ventures. This strong international investor support highlights the growing urgency to establish domestic rare earth supply chains. Phoenix Tailings already runs a 40t/yr commercial facility and sources concentrates from allied nations.

The Metalnomist Commentary

The Phoenix Tailings rare earth plant represents a major step in reshoring critical mineral processing to the US. Its feedstock flexibility and defense-aligned production profile could reduce dependence on China’s REE dominance. This deal also shows that global capital is actively fueling secure and resilient rare earth value chains.

ATTM Titanium Sponge Operations Continue Despite Middle East Freight Risk

ATTM

ATTM titanium sponge operations remain normal despite rising logistics pressure from the war in the Middle East. The Saudi Arabian titanium sponge producer has reported no direct operational impact and does not expect material disruption to exports at this stage.

The company is a joint venture between Saudi group AMIC and Japan’s Toho Titanium. Its plant is located in Yanbu, on Saudi Arabia’s Red Sea coast, giving the facility strategic access to international titanium feedstock and export routes.

ATTM titanium sponge operations matter because the company supplies aerospace-grade titanium sponge to major Western markets, including the US, UK, France, and Italy. It also supplies ferro-titanium grades to Estonia, with smaller volumes shipped elsewhere.

Titanium Supply Chain Faces Freight and Feedstock Exposure

Regional freight markets have become more volatile as conflict disrupts shipping routes and energy-linked supply chains across the Middle East. Several aluminium production facilities have already faced production pressure because they could not secure imported feedstocks, energy supplies, or export access.

ATTM said it is actively managing logistics and does not anticipate material export disruption. This is important because Saudi Arabia imports most of its titanium ore and concentrate feedstocks from Mozambique and Australia.

ATTM titanium sponge operations therefore depend not only on plant performance, but also on inbound ore logistics and outbound sponge shipment routes. Any sustained disruption in freight availability, insurance costs, or port access could still affect titanium supply timing even if production remains stable.

Aerospace Sponge Output Remains Strategically Important

ATTM produced 12,000t of titanium sponge in 2025, compared with a nameplate capacity of 15,600 t/yr. That makes the company a meaningful non-Russian and non-Chinese titanium sponge source for aerospace and industrial customers.

The company’s relationship with Toho Titanium also strengthens its technical position. Aerospace-grade sponge requires strict control over chemistry, trace elements, and production consistency, making qualification and supplier reliability more important than spot-market availability.

For Western aerospace supply chains, stable ATTM titanium sponge operations provide reassurance during a period of geopolitical stress. However, the situation also highlights a broader vulnerability: titanium sponge supply remains concentrated in a small number of qualified producers, while feedstock logistics depend on long-distance maritime routes.

The Metalnomist Commentary

ATTM’s stability is positive for aerospace titanium buyers, but the real risk sits in logistics rather than furnace operations. Titanium sponge customers should treat Middle East freight disruption as a supply-chain risk that can emerge before production itself is affected.

US Critical Mineral Processing Funding Targets Domestic Battery Supply Chain

Critical Mineral

US critical mineral processing funding is moving into another major round as the Department of Energy prepares to allocate up to $500mn for processing, recycling, and derivative battery manufacturing projects. The funding opportunity is designed to support US-based projects that can strengthen domestic supply of critical minerals and battery materials.

The Department of Energy will target projects that process raw feedstocks, recycle critical materials, or manufacture battery materials and components. The agency specifically identified battery-related materials such as lithium, graphite, nickel, copper, and aluminum among its areas of focus.

US critical mineral processing funding is becoming a central tool in Washington’s effort to reduce dependence on offshore refining and battery material supply chains. The latest funding round also shows that the US is not only focused on mining, but on the midstream capacity needed to convert raw materials into usable industrial inputs.

DOE Funding Pushes Midstream Capacity Beyond Mining

Critical mineral processing remains one of the most difficult gaps in the US battery supply chain. Mining projects can expand raw material availability, but domestic industrial resilience depends on refining, chemical conversion, recycling, and component manufacturing.

The new funding opportunity will support projects that can process critical minerals from raw feedstocks and recycle valuable materials back into the supply chain. This approach reflects the growing importance of black mass, scrap, and secondary materials as strategic inputs for battery production.

DOE battery materials funding also gives policy support to companies working across lithium chemicals, graphite processing, nickel products, copper materials, aluminum inputs, and battery component manufacturing. These segments are essential for electric vehicles, grid storage, defense electrification, and industrial energy systems.

Battery Manufacturing Policy Enters Third Funding Round

The latest funding notice marks the third round in recent years under the DOE’s battery materials processing and battery manufacturing and recycling programs. In September 2024, the agency selected 25 projects to receive more than $3bn to expand domestic battery, component, and critical material supply.

The new $500mn opportunity extends that policy direction. It gives the US another mechanism to move from strategic mineral rhetoric toward physical processing capacity, especially in areas where China still dominates global refining and battery material production.

Applicants must submit non-binding letters of intent by 27 March, with full applications due by 24 April. The timeline signals that the DOE wants near-term project visibility and a faster pipeline of investable domestic capacity.

US critical mineral processing funding will be especially important for companies that can prove commercial readiness, feedstock security, and scalable production. The strongest projects will likely be those that connect raw material access with downstream battery customers and recycling loops.

The Metalnomist Commentary

The US is now treating processing capacity as the real bottleneck in critical minerals security. Funding can accelerate projects, but the strategic test will be whether supported companies can deliver cost-competitive, qualified material at industrial scale.

ReElement produces high purity samarium for samarium-cobalt magnets

ReElement

ReElement produces high purity samarium at minimum 99.9pc from recycled and ore-based feedstocks. ReElement produces high purity samarium as it targets commercial-scale output for defense and industrial markets. Therefore, the company is positioning samarium supply as a strategic input for samarium-cobalt magnet manufacturing.

ReElement produces high purity samarium with a clear focus on applications that need heat and corrosion stability. Samarium-cobalt magnets serve aircraft systems, munitions, communications hardware, and high-reliability motors. Meanwhile, buyers are tightening qualification requirements for rare earth oxides as supply security becomes part of procurement.

Why samarium-cobalt magnets matter in defense supply chains

Samarium-cobalt magnets matter because they hold magnetic strength at higher temperatures than many alternatives. Defense and aerospace platforms often operate near thermal limits. As a result, magnet makers prioritize consistent chemistry, low impurities, and dependable batch-to-batch performance.

Samarium also plays a niche but critical role in high-reliability electronics and actuators. That niche creates a leverage point for refiners that can deliver tight specs. However, commercial scale matters because qualification alone does not stabilize supply.

Partnerships signal a push toward integrated US magnet production

ReElement operates facilities in Indiana and is building a network around magnet recycling and refining. The company has an agreement with US magnet producer Vulcan Elements to process end-of-life magnets, e-waste, and concentrates into high-purity rare earth oxides. As a result, ReElement can pair recycled feedstocks with ore-based streams to smooth input variability.

ReElement also plans a larger integrated rare-earth and permanent magnet production complex with South Korean firm Posco. Posco will handle sourcing and magnet production, while ReElement will provide separation, refining, and recycling technology. Meanwhile, ReElement expects production expansion at its Marion facility and partner sites in 2026.

The Metalnomist Commentary

This announcement is less about one oxide and more about qualification momentum for an integrated magnet value chain. However, ReElement must prove throughput, yields, and cost control to sustain commercial contracts. The winners will be the teams that lock feedstock, scale refining, and keep quality stable under volume.

Weiming Launches Nickel Cathode Production in Zhejiang Province

Weiming

Chinese Manufacturer Aims to Boost Nickel Output with New Facility

Weiming, a major Chinese environmental protection equipment manufacturer, has started producing nickel cathodes at its subsidiary, Weiming Shengqing, located in Wenzhou, Zhejiang province. This development marks a significant milestone as the company ramps up its nickel production capacity to meet growing global demand for the metal.

The first phase of the project is focused on a 25,000-tonne-per-year (t/yr) production capacity for nickel cathodes. Weiming is progressing well with this phase, and it expects to complete the second phase—also adding another 25,000 t/yr—by the first half of 2025. Once fully operational, the plant will contribute significantly to China's nickel supply, which is essential for battery production and other industrial applications.

Sourcing Raw Materials for Cathode Production

Weiming uses nickel matte and mixed-hydroxide-precipitate (MHP) as the primary feedstocks for its nickel cathode production. In August 2024, the company received its first shipment of nickel matte from Indonesia, amounting to 1,429 tons. This shipment marks a key milestone in Weiming’s strategy to secure reliable and sustainable sources of raw materials for its operations.

The company also operates the Jiaman high nickel matte project in Indonesia in partnership with Merit International Capital. This project, with a nameplate capacity of 40,000 tons per year of nickel metal equivalent, is poised to further support Weiming’s nickel supply chain. Located in the Weda Bay region of North Maluku Province, the project features four production lines, each capable of producing 10,000 tons of nickel metal equivalent annually.

Future Outlook for Weiming's Nickel Production

As the demand for nickel continues to rise, particularly in the electric vehicle (EV) and battery sectors, Weiming's expansion into nickel cathode production strengthens its position in the global metals market. The company’s strategic investments in Indonesia, alongside its domestic production capacity, will help ensure a steady supply of nickel to meet both local and international demand.

With the second phase of the production facility expected to complete by mid-2025, Weiming is set to play an increasingly pivotal role in global nickel production. This expansion reflects broader trends in the metals industry, where companies are focusing on securing sustainable and high-quality feedstocks to support the green energy transition.

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Weak NCM Demand Restrains Nickel Consumption Growth in China

Lygend

China’s nickel consumption growth has been constrained this year, primarily due to weak demand in the nickel-cobalt-manganese (NCM) cathode active material (CAM) sector and the increasing market dominance of lithium-iron-phosphate (LFP) CAM.

NEV Battery Market Trends

Despite a 37% year-on-year increase in China’s new energy vehicle (NEV) battery production from January to September, NCM battery growth lagged at 19.2%, while LFP surged by 45.6%, according to the China Innovative Alliance of Automotive Battery Industry.

• NCM precursor output grew by 4%.
• NCM CAM production rose by 10%, highlighting a slower growth trend compared to downstream NEV battery production.
• Nickel sulphate output is projected to decline by 1%, even though total supply is expected to rise by 6% due to increased imports.

The discrepancy in growth rates between upstream, midstream, and downstream sectors is expected to stabilize next year as inventories decline and buying interest increases.

Rising Imports of MHP and Matte

China’s imports of mixed hydroxide precipitate (MHP) and matte, key feedstocks for nickel sulphate and class I nickel production, have risen sharply:

• MHP Imports: Up 17% to 1.07 million tons during January-September, with Indonesia accounting for 57% growth due to increased capacity from Chinese companies such as Lygend’s ONC, GEM’s QMB project, and Huayou’s Huafei facility.
• Matte Imports: Increased by 61% to 341,494 tons, driven by the ramp-up in new capacities.

Transition in Nickel Matte Production

A significant portion of the matte imports consists of low-grade matte (20% nickel content), which is further refined into high-grade matte (70% nickel content) in China for nickel sulphate or cathode production. However, some matte producers have shifted focus to producing nickel pig iron (NPI) due to its higher profit margins.

Nickel Metal Output Outlook

While nickel sulphate production is forecast to dip, China’s overall nickel metal output is expected to surge by 34%, reaching 320,000 tons in 2024. This increase underscores the country’s reliance on imported feedstocks and growing domestic capacity to meet demand.

Future Prospects

As inventories dwindle and buying interest rebounds, 2024 is likely to see a narrowing of growth disparities across the supply chain. However, China’s nickel market remains under pressure from fluctuating demand patterns, shifts in feedstock sourcing, and competition between NCM and LFP technologies.

High-Purity Iron Plant Targets US Rare Earth Magnet Supply Gap

Hertha Metals

High-purity iron is emerging as a hidden bottleneck in the US rare earth magnet supply chain as new defense sourcing rules approach. Houston-based Hertha Metals plans to build a 10,000 t/yr plant in Texas to produce high-purity iron used in neodymium-iron-boron permanent magnets.

The project targets a less visible vulnerability in magnet manufacturing. US policy has focused heavily on rare earth elements such as neodymium and praseodymium, but NdFeB magnets also require high-purity iron. Hertha Metals says about 90% of this material is currently produced in China.

The timing is strategically important. Updated Defense Federal Acquisition Regulations are set to take effect on 1 January 2027, restricting Chinese-origin rare earth magnets and constituent materials in covered US defense systems. That rule could force defense contractors, magnet makers and upstream material suppliers to rebuild supply chains around non-China sources.

Hertha Metals plans to break ground later this summer. The company says its Texas plant will become the first domestic producer of high-purity iron for this application, positioning the project at the intersection of magnet security, steelmaking technology and US industrial policy.

DFARS Rules Put Magnet Inputs Under Supply Chain Pressure

The 2027 DFARS deadline changes the strategic value of upstream magnet materials. Compliance will not depend only on where final magnets are assembled. It will also depend on the origin of constituent materials used in defense-related systems.

This creates a direct opportunity for domestic high-purity iron. NdFeB magnets require neodymium, praseodymium and often dysprosium or terbium for performance, but iron remains the major base component. If high-purity iron remains China-dependent, US magnet supply chains could still face compliance risk even if rare earth oxides or metals are sourced elsewhere.

Hertha Metals is trying to address that gap with its FLEXHERS process, short for flexible fuel hydrogen electric reduction smelting. The process combines electric arc furnace technology with natural gas or hydrogen to produce iron and steel.

The company says the technology can use lower-grade ores and iron ore fines that are difficult to process economically through conventional blast furnace routes. This could widen the domestic feedstock base and reduce dependence on imported high-purity iron.

Hertha currently operates a one-tonne-per-day demonstration plant in Conroe, Texas. It describes the site as the largest demonstration-scale single-step steelmaking facility in the US. Ore is sourced domestically from Minnesota, and the pilot facility is already producing material that meets customer specifications.

The planned high-purity iron facility will also produce trial steel products. Hertha sees the project as a stepping stone toward broader iron and steelmaking capacity, with a target of reaching roughly 500,000 t/yr of production within four to five years.

Cost competitiveness will be critical. Hertha says it does not plan to rely on a domestic supply premium. Instead, it aims to compete economically by replacing metallurgical coal with natural gas and electricity while using lower-cost ore feedstocks.

This claim matters because strategic materials projects often struggle when policy support is stronger than market economics. If Hertha can produce competitively without relying on premium pricing, the company could build a more durable position in both defense and commercial supply chains.

Hertha Metals CEO Laureen Meroueh

Domestic Iron Production Links Magnets, Electrical Steel and Clean Manufacturing

High-purity iron has strategic importance beyond NdFeB magnets. The material can also support electrical steel used in transformers, electric vehicle motors and other electromagnetic applications. These sectors are becoming more important as grid investment, electrification and domestic manufacturing policy expand.

The project also fits a wider shift in iron and steel markets. Traditional blast furnace production depends heavily on metallurgical coal and higher-emission processing routes. Meanwhile, demand for higher-grade iron inputs suitable for lower-carbon steelmaking is expected to rise as producers shift toward cleaner technologies.

Hertha’s process aims to sit inside that transition. By using electricity, natural gas or hydrogen, the company is positioning FLEXHERS as a lower-carbon alternative to legacy ironmaking. The ability to process lower-grade ore and fines could also help revive domestic iron production without requiring only premium feedstocks.

The US steel industry has increasingly focused on scrap-fed electric arc furnaces. That model supports recycling and lower emissions, but it does not fully solve domestic iron supply for high-purity applications. Magnets, electrical steel and advanced components often need controlled chemistry that scrap alone cannot easily provide.

This is where Hertha’s strategy becomes industrially relevant. The company is not only proposing another steel plant. It is targeting a specific materials gap between critical minerals policy, rare earth magnet manufacturing and advanced steelmaking.

Competition from subsidized overseas producers remains a risk. Hertha says it can compete on cost, but Chinese industrial support and below-cost exports could still challenge domestic producers. This is why policy, procurement rules and long-term customer commitments may become important even if the production technology works.

The company has not disclosed financing details, future fundraising plans or offtake agreements. That leaves open questions about capital structure, customer readiness and the pace of commercial scale-up. However, the 2027 DFARS deadline gives the project a clear market catalyst.

The broader implication is that rare earth magnet supply security cannot be solved by rare earth mining alone. The full chain includes ore, separation, metal conversion, alloying, magnet manufacturing and supporting inputs such as high-purity iron. Any weak link can create dependence.

Hertha Metals is betting that the next phase of US critical materials policy will recognise that reality. If the company can scale production, secure customers and maintain cost discipline, high-purity iron could become a small but essential piece of the domestic magnet supply chain.

The Metalnomist Commentary

Hertha Metals highlights a critical point often missed in rare earth policy: magnet security depends on more than rare earths. High-purity iron, electrical steel and alloy inputs will become strategic materials if US defense and electrification supply chains must move away from China.

Trump Accuses China of Violating Preliminary Trade Deal

U.S, China

Trump Accuses China of Violating Preliminary Trade Deal

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

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

New Tariff Measures and Export Restrictions Stir Controversy

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

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

Legal Challenges Undermine Tariff Legitimacy

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

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

The Metalnomist Commentary

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

Golden Dragon Magnet Output Expansion Strengthens Baotou NdFeB Capacity

Golden Dragon, Rare Earths

Golden Dragon magnet output is set to expand as the Chinese rare earths and magnet producer prepares trial production at the second phase of its Baotou plant in Inner Mongolia. The new phase is scheduled to start trial operations in December.

Golden Dragon magnet output at the second phase will add 5,000 t/yr of high-performance neodymium-iron-boron magnetic materials. The first phase began trial operations in September 2025 and is already running at full capacity of 5,000 t/yr.

Golden Dragon magnet output growth will lift the company’s Baotou high-performance NdFeB magnet capacity to 10,000 t/yr once the second phase is operating. The expansion reinforces Baotou’s role as a key rare earth magnet manufacturing hub in northern China.

The company also operates 15,000 t/yr of rough NdFeB magnet production capacity at its Changting facility in Longyan, Fujian province.

Baotou Expansion Adds High-Performance Magnet Capacity

The Baotou expansion strengthens Golden Dragon’s position in high-performance NdFeB magnets. These materials are critical for electric vehicles, wind turbines, energy-saving motors, robotics, consumer electronics and advanced industrial equipment.

High-performance NdFeB magnets require stable access to rare earth feedstocks such as neodymium and praseodymium. In higher-temperature applications, dysprosium and terbium can also be important to improve magnetic performance and durability.

Golden Dragon’s expansion is therefore not only a capacity addition. It reflects China’s effort to maintain scale and technical leadership in downstream rare earth applications.

The second phase also improves Golden Dragon’s ability to serve customers that require more consistent magnet quality and larger supply volumes. This is particularly important in sectors such as EV motors and wind power, where qualification and long-term supply reliability matter.

As a wholly owned subsidiary of Xiamen Tungsten, Golden Dragon benefits from its parent company’s broader rare earth and metals platform. That connection supports feedstock access, downstream integration and customer development.

EVs, Wind Turbines and Electronics Support Demand

Golden Dragon has been expanding magnet production in response to rapid growth across key application sectors. Demand continues to rise from wind turbines, consumer electronics, energy-saving motors, home appliances and new energy vehicles.

The demand outlook is especially important for high-performance NdFeB magnets. EV traction motors and direct-drive wind turbines require powerful, compact and efficient magnetic materials.

Energy-saving motors and smart appliances are also increasing magnet consumption. As efficiency standards rise, manufacturers need stronger magnetic materials to improve performance and reduce energy use.

Xiamen Tungsten’s 2025 results show the strength of this broader materials platform. The company’s revenue rose by 30.79% on the year to 46.26bn yuan, while profit increased by 34.89% to 2.3bn yuan.

Revenue from Xiamen Tungsten’s rare earths sector rose by 10% to 6bn yuan in 2025. This reflects continued demand for rare earth materials and magnet-related products despite growing competition in the sector.

For China’s rare earth value chain, Golden Dragon’s Baotou expansion reinforces a strategic advantage. China remains dominant not only in rare earth separation, but also in downstream magnet manufacturing, where industrial scale and customer qualification are difficult to replicate quickly.

The Metalnomist Commentary

Golden Dragon’s Baotou expansion shows that China is still building strength at the most valuable end of the rare earth chain. The strategic issue for global buyers is not only rare earth supply, but access to qualified magnet capacity at industrial scale.

Metlen Gallium Project Positions Greece as New EU Critical Materials Hub

Metlen Gallium Project

Metlen gallium project approval gives Greece a stronger role in Europe’s effort to build secure supplies of critical raw materials. The Greek industrial group has secured government approval for its strategic investment to develop gallium production alongside expanded bauxite mining and alumina refining.

Metlen gallium project benefits will include grants and tax incentives totalling around €118mn. These incentives come on top of Metlen’s planned €300mn investment in the gallium production project.

Metlen gallium project development is integrated into Aluminium of Greece operations in central Greece. The structure allows gallium to be recovered as a by-product of alumina refining, linking critical minerals supply to an existing aluminium value chain.

The project matters because gallium is essential for semiconductors, defence systems, artificial intelligence applications and photovoltaics. Europe’s dependence on imported gallium has become more exposed since China imposed export controls in 2023.

Gallium Recovery Strengthens Europe’s Midstream Supply

Metlen produced gallium for the first time in January and plans to scale output over the next two years. Production is expected to continue rising in 2026, with an additional 5-10t forecast for 2027.

The company aims to reach full capacity of around 50 t/yr by 2028. At that level, Greece could become one of the largest gallium producers outside China.

The output could also be sufficient to cover current European import requirements. That would make the project strategically important for Europe’s semiconductor, defence and clean technology sectors.

Gallium recovery from alumina refining is especially significant because it adds value to an existing industrial process. Instead of relying only on new mines, Europe can recover critical materials from established aluminium operations.

This approach improves supply-chain efficiency. It also shows how by-products from major metals industries can become strategic feedstocks for advanced manufacturing.

EU Incentives Back Critical Raw Materials Security

The project has been approved under Greece’s Strategic Investments framework. It is also included under the Clean Industrial Deal State Aid Framework, which supports clean energy, industrial decarbonisation and clean technology.

The European Investment Bank has approved €90mn in financing to support the gallium facility and modernisation of upstream bauxite mining. This gives the project both national and EU-level policy support.

The investment aligns with Europe’s effort to reduce dependence on China for critical minerals. China dominates global gallium production, and its export controls have tightened supply and pushed prices higher.

For the EU, the Metlen project provides more than gallium volume. It creates a domestic industrial route from bauxite and alumina into critical semiconductor materials.

That model could become important for other by-product metals. Europe has limited time to build resilient supply chains, so projects connected to existing industrial assets may offer faster results than standalone greenfield developments.

The Metalnomist Commentary

Metlen’s gallium project shows how Europe can turn existing aluminium infrastructure into critical minerals capacity. The strategic lesson is clear: by-product recovery may become one of the fastest routes to reducing dependence on China.

Cornex–Dongfeng power battery deal signals deeper EV supply-chain ties

Cornex

Cornex–Dongfeng power battery deal anchors five-year growth for both firms. The Cornex–Dongfeng power battery deal covers over 30GWh of supply. Therefore, the Cornex–Dongfeng power battery deal strengthens downstream EV launches and commercial fleets.

China’s battery demand keeps accelerating on EV and storage growth. Cornex will also expand R&D cooperation with Dongfeng Liuzhou. As a result, the partners can tailor pack designs and logistics. They did not disclose prices or delivery cadence.

Upstream security: LFP cathode and copper foil locked in

Cornex moved early to secure key feedstocks this year. It signed 150,000t of LFP cathode with Jiangsu Lopal in May. It added 152,000t of LFP from EVE Energy in June. It also secured 160,000t of copper foil from Nuode over five years. Consequently, the cell maker reduces cost volatility and quality risk across its lines.

Meanwhile, China’s battery ecosystem continues to scale. Power battery output reached 831.1GWh in January–July. Installed volumes hit 355.4GWh over the same period. Year-on-year growth was 58% and 45%, respectively. Those tailwinds support OEM ramp schedules and fleet electrification.

Market position: modest share, rising trajectory

Cornex installed 2.42GWh of LFP packs in January–July. That equals 0.7% of China’s installed base. However, it remains a top-15 domestic LFP installer. Therefore, the Dongfeng anchor order could accelerate share gains. R&D collaboration should compress qualification timelines and improve pack energy density.

Dongfeng plans passenger and commercial EV expansion. Cornex’s secured materials and new contracts improve delivery certainty. As a result, both sides can plan platform roadmaps with clearer cost curves.

The Metalnomist Commentary

Anchor agreements matter most when paired with upstream hedges. Cornex’s cathode and copper-foil locks de-risk this award and future bids. Watch how quickly the pair converts framework supply into model-specific SOP schedules and sustained monthly GWh.

Kenmare Resources Achieves Production Milestones in 2024

Kenmare Resources

Strategic Production Gains in Ilmenite and Other Heavy Minerals

Consistent Production Growth Despite Market Fluctuations

Kenmare Resources, operating primarily in Mozambique, reported a 2% increase in ilmenite production in 2024, surpassing the midpoint of its forecasted production range. The company's production of heavy mineral concentrates (HMC) remained stable, with significant activity in the latter half of the year boosting overall output.

Record Outputs in Secondary Minerals and Future Outlook

The final quarter of 2024 saw Kenmare achieving notable increases in the production of ilmenite, zircon, and rutile, with ilmenite production alone jumping 14% year-on-year. These gains reflect heightened processing capacities and improved recovery rates, positioning Kenmare well within the upper spectrum of its annual guidance.

Impact of Global Market Dynamics on Production and Pricing

Amidst a backdrop of rising global demand for titanium feedstocks, Kenmare has navigated shifting market dynamics, including the redirection of Chinese pigment production and the impact of international duties. These factors, combined with strategic increases in HMC exports, have influenced pricing and production strategies moving forward.

Fuye secondary copper smelter to add 180kt/yr capacity in Jiangxi

Fuye

Fuye secondary copper smelter plans will lift China’s recycled copper capacity. The Fuye secondary copper smelter will produce refined copper using scrap and residues. As a result, the Fuye secondary copper smelter strengthens supply amid concentrate tightness.

Capacity and feedstocks

Fuye will build a 180,000 t/yr secondary smelter in Shangrao, Jiangxi. The plant will process copper scrap, ingot, and electrolytic residues. The company did not disclose construction or launch dates. Fuye already runs three Chinese smelters totaling 800,000 t/yr.

Fuye’s 620,000 t/yr Heding smelter is co-owned with Jiangxi Copper. It also owns the Hefeng and Heli secondary smelters with 190,000 t/yr. Therefore, the new project deepens a recycling-focused footprint.

Scrap dynamics and market context

Copper scrap is filling a structural gap in concentrates. Scrap supplied nearly 20pc of global refined output in 2024, per ICSG. China’s copper scrap imports held near 1.15mn t in first-half 2025. Trade frictions had limited impact on volumes.

Pricing signals support steady scrap inflows. Metalnomist shows bare bright import cash spreads at 98.5–99pc of LME. #1 scrap held at 97.3–98.2pc and #2 at 94.5–95.5pc. Such levels keep scrap competitive versus cathode.

The Metalnomist Commentary

Fuye’s move underscores China’s push to derisk concentrate exposure with recycling. Location in Jiangxi aligns feedstock pools, established logistics, and OEM demand. Watch permitting cadence and long-term scrap contracts to gauge ramp speed.

EU probe MMG Anglo American nickel deal puts ferro-nickel supply at risk

MMG Anglo American

The EU probe MMG Anglo American nickel deal signals deep concern over European ferro-nickel security and stainless steel costs. Regulators fear the acquisition could divert low-carbon Brazilian ferro-nickel away from EU buyers and tighten an already fragile supply chain. As a result, the EU probe MMG Anglo American nickel deal sits at the intersection of antitrust, decarbonisation policy and China-related resource security.

EU probe MMG Anglo American nickel deal and ferro-nickel access

The EU probe MMG Anglo American nickel deal focuses on Anglo’s Barro Alto and Codemin ferro-nickel complexes in Brazil. These assets supply low-carbon ferro-nickel that European stainless mills increasingly value under upcoming CBAM rules. However, Brussels fears that MMG, controlled by China Minmetals, could redirect tonnages to Chinese or affiliated buyers.

The commission’s initial review found the business holds substantial market power in low-carbon ferro-nickel. European stainless producers have limited alternative options that meet both technical and carbon-intensity requirements. Therefore, any post-merger supply squeeze could raise input costs, compress margins and weaken EU mills against Asian competitors.

Market power, Chinese ownership and rejected remedies

Regulators rejected MMG’s first remedy package, which relied mainly on behavioural commitments and a supply agreement. Officials argued that these measures lacked structural guarantees and could be hard to monitor over time. Meanwhile, European industry groups warned that the deal would deepen Chinese influence over the nickel value chain.

European buyers also link the case to wider CBAM and decarbonisation pressures. They fear losing access to low-carbon ferro-nickel just as carbon costs rise and imports from Asia intensify. As a result, the EU probe MMG Anglo American nickel deal has become a test case for how Brussels balances open markets with strategic metals security. The commission now has until 20 March to clear, block or condition the acquisition, with possible timeline extensions.

The Metalnomist Commentary

The EU probe MMG Anglo American nickel deal highlights how nickel and ferro-nickel have moved into the heart of Europe’s strategic calculus. Antitrust scrutiny now intertwines with carbon policy and China risk, raising the bar for deals involving critical alloy feedstocks. Stainless producers that rely on low-carbon Brazilian ferro-nickel should prepare contingency sourcing strategies, regardless of the eventual ruling.