Chile lithium mining license moves forward under private–indigenous JV model

Chile lithium mining

Chile lithium mining license dynamics are shifting as a private–indigenous joint venture moves first in the new Ollagüe process. The Chile lithium mining license application was filed by Kuska Minerals, a JV between Canada’s Wealth Minerals and the Quechua Indigenous Community of Ollagüe. The Chile lithium mining license bid positions Kuska as an early mover in a basin that the government already classed as high potential in 2024. By partnering with the CIQO, Wealth aligns directly with Chile’s requirement for agreements with affected native communities. This structure also helps the company streamline its own consultation process while offering the community a 5pc equity stake in future value.

Indigenous partnership reshapes Ollagüe lithium approvals

Chile now places indigenous consultation at the centre of lithium approvals, and the Ollagüe salt flat shows how this works in practice. Authorities recently completed native consultations that remapped the exploitable area to protect culturally sensitive zones and populated areas. As a result, the mining ministry opened a fresh application round focused on the remaining brine resources. Kuska is, so far, the only bidder to publicly submit an official application for this high-altitude basin. The JV is now verifying that it meets every technical and legal criterion and has committed to comply fully before the undisclosed deadline. This early alignment with both state and community expectations should reduce project risk if the license advances to the next stage.

Faster licensing supports Chile’s lithium expansion strategy

Chile is using a streamlined process in Ollagüe to accelerate lithium supply while preserving regulatory control. Officials expect the new licensing window to move relatively quickly, signalling to investors that administrative reforms are starting to bite. At the same time, the country has already approved seven other lithium-related permits this year, including projects linked to Eramet, a JV with Quiborax and Codelco, and two Rio Tinto applications. These approvals affirm Chile’s intent to turn selected salars into bankable projects, rather than leaving resources stranded amid policy debate. For downstream battery and EV supply chains, the Ollagüe basin could become another node in a diversified, ESG-sensitive lithium portfolio if Kuska’s bid succeeds.

The Metalnomist Commentary

Kuska’s structure shows how future lithium developers in Chile may need to blend foreign capital, state oversight and genuine indigenous participation. If this model delivers both social licence and predictable approvals, it could become a template for other high-potential salars. Global buyers should watch Ollagüe closely, as community-anchored licensing could shape both cost structures and long-term offtake security.

Argentina Salta Lithium Boom Positions Province as Global Energy Transition Hub

Argentina Salta Lithium

Argentina Salta lithium boom accelerates as the northern province emerges as the cornerstone of the country's expanding mining industry following government approval of Rio Tinto's Rincon project under the RIGI incentive program. The Argentina Salta lithium boom reflects strategic positioning within global energy transition supply chains, with provincial mining secretary Romina Sassarini declaring Salta will become "a reference point for lithium in the country and worldwide" as multiple international producers establish operations in the resource-rich region.

RIGI Program Attracts International Lithium Investment

Argentina Salta lithium boom benefits from the national government's RIGI economic and legal incentive program that provides fiscal and legal stability for major mining investments. Rio Tinto's newly approved Rincon mine represents the fourth lithium project in Salta, requiring $2.7 billion investment to produce 60,000 tonnes annually by decade's end. China's Ganfeng, France's Eramine, and South Korea's Posco already operate lithium production facilities while applying for RIGI incentives for expanded production stages.

Meanwhile, Argentina's lithium output surged from 75,000 tonnes in 2024 to projected 131,000 tonnes in 2025 according to mining trade organization CAEM. This rapid production growth positions Argentina as a critical supplier for global battery markets while establishing Salta as the primary production hub. The province's strategic importance extends beyond lithium to include copper and gold reserves, including First Quantum Minerals' $3.5 billion Taca Taca copper-gold-molybdenum project awaiting final permits.

Infrastructure Development Addresses Production Bottlenecks

However, massive infrastructure investments are required to support expanding mining operations and projected production growth. Mining projects operating and planned in Salta require additional 575MW of electricity generation capacity, prompting provincial development of comprehensive electricity plans emphasizing solar power deployment. The renewable energy focus aligns with sustainable mining practices while addressing power supply constraints.

Therefore, transportation infrastructure development becomes equally critical as the province pursues multilateral bank financing for the 2,400-kilometer bi-oceanic highway connecting Brazil to Chile through Argentina and Paraguay. This continental corridor will enable efficient lithium and mineral exports to Pacific and Atlantic markets while reducing logistics costs. Sassarini emphasized that coordinated efforts between provincial, company, and national government stakeholders will resolve logistic bottlenecks limiting industry growth.

Argentina Salta

Strategic Positioning Supports Global Supply Chain Integration

Furthermore, Salta's emergence as a world-class lithium exporter addresses growing global demand for battery materials essential to electric vehicle production and energy storage systems. The province's integrated approach combining multiple international producers, infrastructure development, and regulatory stability creates competitive advantages for sustained industry growth. Mining sector transformation generates substantial economic impact through employment, tax revenue, and supply chain development.

As a result, the RIGI program eliminates financial bottlenecks while creating frameworks for long-term industry development across multiple mineral commodities. Salta's strategic positioning within the Lithium Triangle region enhances Argentina's competitiveness against Chilean and Bolivian producers while serving diverse global markets. The coordinated development approach demonstrates how provincial governments can catalyze mining industry growth through targeted policy support and infrastructure investment.

The Metalnomist Commentary

Argentina's Salta province exemplifies how strategic resource endowments combined with supportive policy frameworks can rapidly transform regional economies into global supply chain hubs, particularly important as lithium demand accelerates through energy transition requirements. The province's comprehensive approach addressing both production capacity and infrastructure bottlenecks demonstrates sophisticated understanding of mining industry development requirements, positioning Salta advantageously within the competitive global lithium market as established and emerging producers seek reliable supply sources.

Dazhong Mining Expands Lithium Resources at Jiada Mine

Dazhong Mining

Lithium Resources at Jiada Mine Increase Significantly

Inner Mongolia Dazhong Mining has revised higher its lithium resource estimates at the Jiada spodumene mine in Sichuan. The mine’s reserves now total 1.4842mn t of lithium carbonate equivalent (LCE) with an average grade of 1.38pc lithium oxide. This upgrade raises Dazhong’s total lithium resources across its assets to 4.72mn t LCE. The company also operates the Jijiaoshan lithium mine in Hunan province, strengthening its domestic lithium footprint.

Dazhong’s Investment in Lithium Supply Chain Expansion

Dazhong is actively expanding into downstream lithium processing and battery production. The firm is building lithium carbonate and cathode active material production lines, alongside lithium-ion battery plants in Hunan, with an investment of 16bn yuan ($2.2bn). It also plans to develop a large-scale complex in Inner Mongolia with 40,000 t/yr lithium carbonate, 40,000 t/yr lithium salts, 250,000 t/yr lithium iron phosphate, 100,000 t/yr artificial graphite anode material, and 10 GWh/yr lithium-ion batteries. These projects highlight China’s ambition to dominate the entire lithium value chain.

Lithium Market Pressures Despite Long-Term Demand

The lithium market remains oversupplied, pushing prices to multi-year lows despite robust long-term demand forecasts. Chinese lithium carbonate prices are currently at Yn59,800-61,000/t ex-works, down 89pc from the November 2022 peak of Yn561,000-576,000/t. Rising supply from Chinese producers, including new capacity expansions like Dazhong’s, has weighed on spot prices. However, strong demand from electric vehicles, energy storage systems, and emerging battery technologies is expected to support recovery in the medium term.

The Metalnomist Commentary

Dazhong Mining’s resource upgrade and heavy downstream investments underline China’s strategy to secure leadership across the lithium supply chain. While today’s oversupply keeps prices depressed, structural demand from EVs and storage solutions suggests that projects like Jiada will be vital in balancing the global market in the next decade.

Appalachian Lithium Reserves Could Strengthen US Domestic Supply Security

USGS

Appalachian lithium reserves could give the US a much larger domestic resource base than previously recognised, according to a new assessment from the US Geological Survey. The agency said the eastern US Appalachian region may contain enough undiscovered, economically recoverable lithium to replace 328 years of US imports at 2025 levels.

Appalachian lithium reserves are hosted in pegmatites, large-grained rocks similar to granite. The southern Appalachian region is estimated to contain 1.43mn t of lithium oxide, while the northern Appalachian region holds another 0.90mn t.

Appalachian lithium reserves matter because the US still depends heavily on imported lithium. The country has only one current lithium producer and relied on imports for more than half of its supply in 2025.

The assessment adds another possible domestic supply route alongside lithium brine projects in the Smackover formation. Together, these resources could reshape US lithium strategy if they can be converted into permitted, economic and commercially scalable projects.

Pegmatite Resources Add a Hard-Rock Lithium Option

The Appalachian assessment points to hard-rock lithium potential in the eastern US. Pegmatite-hosted lithium is different from brine-based production because it usually requires mining, concentration and chemical conversion.

This gives the US another possible supply pathway. Hard-rock projects can produce spodumene concentrate, which can then be converted into lithium chemicals for batteries, energy storage and industrial uses.

Albemarle is already planning a lithium concentrator facility at Kings Mountain, North Carolina. The project is designed to produce 420,000 t/yr of lithium concentrate from spodumene.

That project is important because it could help rebuild a US hard-rock lithium supply chain. Domestic spodumene production would reduce reliance on foreign raw material and support future US conversion capacity.

However, resource estimates alone do not guarantee supply. Appalachian lithium projects would still need exploration, permitting, mine development, processing investment, environmental approvals and downstream customer qualification.

The strategic significance is still clear. The US lithium conversation is expanding beyond Nevada brines and western projects into eastern hard-rock resources with long-term supply potential.

Smackover Brines and Appalachian Pegmatites Broaden US Lithium Strategy

The Appalachian estimate follows earlier USGS work on the Smackover formation in southwest Arkansas. In 2024, the agency assessed that Smackover brines contain 5mn-19mn t of lithium, although it did not define economically recoverable volumes.

Several companies, including Equinor, ExxonMobil, EnergyX and Standard Lithium, are developing lithium projects in the Smackover region. Some are targeting commercial output around 2027.

The Smackover and Appalachian resource bases are strategically different but complementary. Smackover projects depend on brine extraction and processing technologies, while Appalachian projects would likely depend on hard-rock mining and spodumene concentration.

This diversification matters for US supply security. A lithium strategy based on multiple geological sources is more resilient than one dependent on a single basin, technology or company.

The US will still need processing capacity. Mining lithium ore or extracting lithium from brine does not automatically create battery-grade lithium carbonate or hydroxide.

That midstream gap remains the critical issue. Domestic resources must be connected to refining, chemical conversion, permitting, infrastructure and offtake agreements before they can reduce import dependence.

For battery manufacturers, the Appalachian assessment offers a long-term signal. More domestic resource potential could support future supply chains for electric vehicles, grid storage and defence-related battery applications.

The Metalnomist Commentary

The Appalachian lithium assessment is a resource-security signal, not an immediate supply solution. The US has the geology, but the decisive bottleneck will be converting resources into permitted mines, concentrators and battery-grade lithium chemicals.

Finniss Lithium Operation Restart Signals Australian Spodumene Supply Return

Core Lithium

Finniss Lithium Operation is returning to production after Core Lithium restarted mining at the Grants open pit in Australia’s Northern Territory. The move marks the reopening of an asset that had been in care and maintenance since 2024 because of weak lithium prices.

Finniss Lithium Operation will process its first ore in the September quarter, with the first spodumene concentrate shipment expected in the December quarter. Additional shipments are planned for 2027.

Finniss Lithium Operation restart reflects the sharp recovery in spodumene prices after supply constraints emerged in late 2025. Core Lithium approved the restart in March as stronger pricing improved the economics of bringing idled capacity back online.

The Grants pit will provide access to around 800,000t of ore and deliver about 100,000t of spodumene concentrate on a 5% lithium oxide basis. Mining has started in line with Core Lithium’s final investment decision schedule and cost expectations.

Grants Pit Brings Near-Term Spodumene Back to Market

The Grants open pit gives Core Lithium a near-term route back into the seaborne spodumene market. First ore processing in the September quarter and first shipment in the December quarter create a clear restart timeline.

This matters because Australian lithium producers are beginning to respond to stronger market conditions. Several operations that were halted during the downturn are now restarting as prices recover.

Spodumene prices have rebounded sharply from the lows reached in December 2025. The recovery has made previously idled hard-rock assets more attractive, especially those with existing infrastructure and established development plans.

For buyers, the return of Finniss adds incremental Australian supply at a time when lithium converters are reassessing feedstock security. But the restart also adds new supply into a market still vulnerable to oversupply if too many projects return at once.

Core Lithium’s timing is therefore important. The company is moving before the next wave of supply fully arrives, but it must still prove stable mining, processing and shipment performance after a long shutdown.

BP33 Sets Up Longer-Term Finniss Expansion

Core Lithium is also advancing infrastructure work at the BP33 underground mine. The company awarded a A$274mn underground mining services contract to Develop Global for a three-to-five-year period.

BP33 is expected to be developed by mid-2027. It should help lift ore production at Finniss to 1.2mn t/yr by mid-2028.

Core Lithium’s final investment decision summary outlines a longer-term plan to produce spodumene concentrate over a 20-year mine life. Expected unit costs are around A$762/t, giving the operation leverage to higher spodumene pricing if execution stays on track.

The restart and BP33 development show how lithium producers are rebuilding confidence after the 2024-25 market downturn. The key difference now is that investors and customers will focus more closely on cost discipline, grade, logistics and customer commitments.

For the broader battery supply chain, Finniss adds another signal that Australian spodumene remains central to global lithium raw material supply. The market recovery is bringing supply back, but long-term balance will depend on whether battery demand can absorb returning and new production.

The Metalnomist Commentary

Core Lithium’s restart shows that the lithium cycle has turned enough to bring idled Australian mines back into action. The risk is that recovering prices invite too much supply too quickly, making cost discipline and offtake quality more important than restart headlines.

Argentina Lithium Growth Could Challenge Chile’s Regional Lead

Argentina Lithium

Argentina lithium growth could reshape Latin America’s lithium map over the next decade as new projects advance under more investor-friendly rules. Argentina is expected to match Chile’s lithium output by 2035, with some industry participants arguing it could overtake Chile even earlier.

Argentina lithium growth is being supported by faster permitting, large brine resources and stronger investment incentives. By contrast, Chile’s lithium expansion remains constrained by restrictive legislation, lengthy approval processes and uncertainty around new project development.

Argentina lithium growth is strategically important because lithium remains central to electric vehicles, energy storage and battery supply chains. Global buyers want large-scale, politically stable and western hemisphere supply outside more exposed jurisdictions.

Chile remains the region’s largest producer today. However, its future output growth depends heavily on existing producers and slow-moving new projects, while Argentina has a deeper pipeline of advanced developments.

Chile’s Lithium Policy Slows New Supply

Chile has long been Latin America’s dominant lithium producer, but its regulatory system is limiting new investment. Lithium remains non-concessionable and is still treated under legislation linked to nuclear materials.

Companies seeking to extract lithium in Chile must apply for special mining contracts. These contracts are granted through public bidding processes that can be lengthy, bureaucratic and uncertain.

This creates a major exploration problem. Companies may be reluctant to explore land if they cannot be confident of later securing extraction rights.

Chile’s national lithium strategy also requires all new projects to use direct lithium extraction. DLE is viewed as more environmentally friendly than traditional evaporation ponds, but it creates technical and cost challenges.

Each DLE process must be designed around the specific chemistry of each brine resource. That means technology used at one salar cannot simply be copied at another.

This raises development costs and lengthens project timelines. Industry participants estimate that DLE projects may require investment of up to $44,000 per tonne of lithium carbonate equivalent, compared with about $26,000/t for evaporation projects.

Chile’s new supply pipeline is therefore moving slowly. The first major new project, Rio Tinto’s Maricunga, is expected only by the end of 2030, with another new project expected in 2032.

Until then, Chile may rely mainly on capacity increases from existing producers. That could limit its ability to respond to rising lithium demand if Argentina’s project pipeline accelerates.

Argentina’s Rigi Regime Attracts Lithium Capital

Argentina is moving in the opposite direction. Its government has streamlined licensing and introduced the Rigi incentive regime for large investments.

Rigi provides tax exemptions, import-export benefits and legal protections for approved projects. It also allows companies to settle certain disputes in courts outside Argentina, improving investor confidence.

Ten lithium projects have already applied to Rigi, with three approved. The programme has become a major signal to international investors seeking policy stability and faster project execution.

Argentina now has more than 60 active lithium projects and seven producing assets, the most in Latin America. Two new developments are expected to come on line this year, lifting projected output to 159,000t of lithium carbonate equivalent.

That remains below Chile’s 305,000t in 2024. However, Argentina has more than 20 projects in advanced stages, including eight close to production.

Argentina’s mining ministry expects output to reach 583,000 t/yr of lithium carbonate equivalent by 2035. That would put the country in position to match or overtake Chile if Chile’s permitting regime does not change.

The investment logic is clear. Argentina offers large brine resources, a more open policy framework and exposure to western hemisphere supply chains. That combination is increasingly attractive to battery makers, automakers and mining companies.

Chile still has enormous lithium potential. But potential alone does not create supply. Without faster approvals and clearer rules, Chile risks losing regional leadership to Argentina.

For the lithium market, this shift matters. Argentina’s rise could increase competition, diversify supply and give buyers more options in South America. It could also make Latin America’s lithium growth less dependent on Chile’s policy choices.

The Metalnomist Commentary

Argentina’s lithium advantage is not only geological; it is regulatory. Chile still has world-class resources, but Argentina is turning policy speed into supply-chain momentum.

Argentina Lithium Growth Could Challenge Chile’s Regional Lead

Argentina Lithium

Argentina lithium growth could reshape Latin America’s lithium map over the next decade as new projects advance under more investor-friendly rules. Argentina is expected to match Chile’s lithium output by 2035, with some industry participants arguing it could overtake Chile even earlier.

Argentina lithium growth is being supported by faster permitting, large brine resources and stronger investment incentives. By contrast, Chile’s lithium expansion remains constrained by restrictive legislation, lengthy approval processes and uncertainty around new project development.

Argentina lithium growth is strategically important because lithium remains central to electric vehicles, energy storage and battery supply chains. Global buyers want large-scale, politically stable and western hemisphere supply outside more exposed jurisdictions.

Chile remains the region’s largest producer today. However, its future output growth depends heavily on existing producers and slow-moving new projects, while Argentina has a deeper pipeline of advanced developments.

Chile’s Lithium Policy Slows New Supply

Chile has long been Latin America’s dominant lithium producer, but its regulatory system is limiting new investment. Lithium remains non-concessionable and is still treated under legislation linked to nuclear materials.

Companies seeking to extract lithium in Chile must apply for special mining contracts. These contracts are granted through public bidding processes that can be lengthy, bureaucratic and uncertain.

This creates a major exploration problem. Companies may be reluctant to explore land if they cannot be confident of later securing extraction rights.

Chile’s national lithium strategy also requires all new projects to use direct lithium extraction. DLE is viewed as more environmentally friendly than traditional evaporation ponds, but it creates technical and cost challenges.

Each DLE process must be designed around the specific chemistry of each brine resource. That means technology used at one salar cannot simply be copied at another.

This raises development costs and lengthens project timelines. Industry participants estimate that DLE projects may require investment of up to $44,000 per tonne of lithium carbonate equivalent, compared with about $26,000/t for evaporation projects.

Chile’s new supply pipeline is therefore moving slowly. The first major new project, Rio Tinto’s Maricunga, is expected only by the end of 2030, with another new project expected in 2032.

Until then, Chile may rely mainly on capacity increases from existing producers. That could limit its ability to respond to rising lithium demand if Argentina’s project pipeline accelerates.

Argentina’s Rigi Regime Attracts Lithium Capital

Argentina is moving in the opposite direction. Its government has streamlined licensing and introduced the Rigi incentive regime for large investments.

Rigi provides tax exemptions, import-export benefits and legal protections for approved projects. It also allows companies to settle certain disputes in courts outside Argentina, improving investor confidence.

Ten lithium projects have already applied to Rigi, with three approved. The programme has become a major signal to international investors seeking policy stability and faster project execution.

Argentina now has more than 60 active lithium projects and seven producing assets, the most in Latin America. Two new developments are expected to come on line this year, lifting projected output to 159,000t of lithium carbonate equivalent.

That remains below Chile’s 305,000t in 2024. However, Argentina has more than 20 projects in advanced stages, including eight close to production.

Argentina’s mining ministry expects output to reach 583,000 t/yr of lithium carbonate equivalent by 2035. That would put the country in position to match or overtake Chile if Chile’s permitting regime does not change.

The investment logic is clear. Argentina offers large brine resources, a more open policy framework and exposure to western hemisphere supply chains. That combination is increasingly attractive to battery makers, automakers and mining companies.

Chile still has enormous lithium potential. But potential alone does not create supply. Without faster approvals and clearer rules, Chile risks losing regional leadership to Argentina.

For the lithium market, this shift matters. Argentina’s rise could increase competition, diversify supply and give buyers more options in South America. It could also make Latin America’s lithium growth less dependent on Chile’s policy choices.

The Metalnomist Commentary

Argentina’s lithium advantage is not only geological; it is regulatory. Chile still has world-class resources, but Argentina is turning policy speed into supply-chain momentum.

Volt Lithium to Test Direct Lithium Extraction (DLE) Technology in North Dakota’s Bakken Formation

Wellspring Hydro

Volt Lithium, a U.S.-based lithium developer, is set to pioneer the use of Direct Lithium Extraction (DLE) technology in North Dakota’s Bakken formation, an oil-rich region known for its high production of lithium-bearing brines. In partnership with Wellspring Hydro, a wastewater recycler, Volt will deploy an advanced system that directly extracts lithium from oilfield brines, marking a significant step in meeting the growing demand for lithium, particularly in the electric vehicle and energy storage markets.

Collaborative Effort for Lithium Extraction

Volt Lithium’s new initiative aims to utilize the cutting-edge DLE technology to purify, extract, and refine lithium from brines extracted from the Bakken formation. The region is the second-largest source of brine production in the U.S., yielding around 2 million barrels per day (b/d) of lithium-bearing oilfield brine, according to Wellspring. Although the exact lithium concentration in the brine is not disclosed, the project presents an exciting opportunity to tap into this resource using a more sustainable and efficient method compared to traditional mining techniques.

The collaboration between Volt Lithium and Wellspring Hydro will be funded by an initial grant of $500,000, with the potential for up to $2 million in additional funding from the state of North Dakota. Volt plans to begin deploying a field study unit in early 2025 to assess the viability of the technology in the Bakken formation.

Direct Lithium Extraction: A Game Changer for Lithium Mining

Unlike conventional evaporation ponds, which require large amounts of land and water, DLE offers a much more efficient method for extracting lithium. This method is capable of higher recovery rates, as it selectively isolates lithium from brines, reducing the environmental footprint of extraction. However, DLE technology remains more expensive and complex, which has led to its gradual development and deployment. Still, its potential has drawn the interest of major oil companies such as ExxonMobil, which is also exploring the extraction of lithium from brine in the Smackover formation in Arkansas.

Volt’s efforts in North Dakota align with the broader trend of integrating advanced technologies into the lithium mining industry, responding to the growing demand driven by the global shift to renewable energy and the rise of electric vehicle production. The success of DLE could significantly reshape the economic landscape of lithium production, especially in the U.S.

Codelco Lithium Ascotan Move Expands Chile’s Strategic Control Over New Brine Assets

Codelco Lithium

Codelco lithium Ascotan plans mark another important step in Chile’s effort to keep stronger state influence over future lithium supply. Codelco and Quiborax formed a joint venture called Minera Ascotan and applied for a special lithium operating contract. That contract is required for lithium extraction in Chile. As a result, Codelco lithium Ascotan plans now sit at the center of Chile lithium strategy.

This move matters because Ascotan is not a minor asset. The salt flat is described as the third largest lithium reserve in Chile. That gives the project long-term strategic value inside one of the world’s most important lithium jurisdictions. Therefore, Codelco lithium Ascotan plans strengthen the state miner’s growing role in Chile’s next lithium phase.

The structure of the deal also reveals the political logic. Chile’s current framework requires public-private partnerships so the state can retain control while private capital supports development. That model has been in place since 2023 under the CEOL-based lithium strategy. Consequently, Chile lithium public-private partnership is now the main route for new project access.

Ascotan Salt Flat Adds to Codelco’s Expanding Lithium Portfolio

Ascotan salt flat adds another major asset to Codelco’s widening lithium position. The state miner is already set to become the majority owner in SQM’s Atacama operations from 2031. It is also advancing its partnership with Rio Tinto at Maricunga. As a result, Codelco lithium Ascotan plans are part of a broader portfolio build, not a standalone move.

That portfolio strategy matters because Chile wants more than royalty exposure from lithium. It wants stronger long-term participation in ownership, production, and strategic decision-making. Codelco is clearly becoming the state’s main operating vehicle for that ambition. Therefore, Ascotan salt flat could become another pillar in Chile’s effort to shape its own lithium future more directly.

The Quiborax partnership appears tactical as well as commercial. The article suggests Codelco likely chose a non-mining partner to secure the CEOL process more quickly. That reflects rising urgency ahead of a political transition. Meanwhile, it shows how project structure can be shaped by policy timing as much as geology.

Chile Lithium Strategy Faces a Political Test as New Leadership Nears

Chile lithium strategy now faces a more uncertain political backdrop. The article notes that incoming president Jose Antonio Kast has shown willingness to change the country’s lithium mining policy. He is scheduled to take office on 11 March. As a result, Codelco lithium Ascotan plans may also be an effort to lock in strategic progress before policy direction potentially changes.

The future ownership structure also remains important. Quiborax currently holds 66pc of the joint venture, but both initial partners are expected to make room for a new majority owner once the CEOL is granted. That new partner would be responsible for developing the project. Therefore, Chile lithium public-private partnership will remain central even if Codelco keeps strategic influence.

This makes the Ascotan move significant for the wider market. It shows Chile is still pushing forward with a state-guided lithium model, even as political uncertainty grows. If Codelco continues adding assets at this pace, Boric’s vision of making it Chile’s leading lithium producer could become more credible than many expected.

The Metalnomist Commentary

This move matters because it shows Chile is still trying to build lithium control through structure, not just ownership slogans. Codelco is becoming the state’s main instrument for that strategy. If Ascotan advances, Chile may prove that public-private lithium development can still move forward even in a changing political environment.

Chevron Joins the US Lithium Hunt

Chevron US lithium

Oil Majors Target Lithium in Smackover Formation

Chevron has officially entered the US lithium sector, joining ExxonMobil and Equinor in exploring lithium-rich brines in the Smackover formation. The oil giant acquired about 125,000 net acres in northeast Texas and southwest Arkansas, where high lithium content in briny groundwater has already attracted major interest.

The company plans to leverage its subsurface expertise to extract lithium from brine, aiming for lower costs and reduced environmental impact compared with hard rock mining or evaporation ponds. Chevron says this effort aligns with its broader strategy to support US energy leadership and build resilient domestic lithium supply chains.

Expanding Lithium Supply Amid Energy Transition

Chevron’s move mirrors a growing trend of oil companies pivoting toward critical minerals to secure positions in the energy transition. Smackover Lithium, a joint venture between Standard Lithium and Equinor, has already announced plans to produce 22,500 t/yr of lithium carbonate by 2028. Meanwhile, ExxonMobil signed a deal in November 2024 to supply up to 100,000 t of lithium carbonate to South Korea’s LG Chem, also sourced from the Smackover formation.

As demand for EV batteries accelerates, the region could become a cornerstone of the US lithium industry. Chevron’s participation underscores the convergence of oil and mining sectors, with traditional hydrocarbon firms now competing in battery materials.

Strategic Implications for US Lithium Supply

Chevron’s lithium strategy emphasizes domestic production to reduce reliance on imports and strengthen critical mineral supply chains. By applying oilfield brine extraction techniques, the company hopes to commercialize lithium with fewer environmental trade-offs.

Industry analysts believe oil companies could soon rival established lithium producers. As independent analyst Joe Lowry noted, “By early next decade, big oil and big mining will replace the likes of Albemarle at the top of the lithium world.”

The Metalnomist Commentary

Chevron’s entry into the lithium market highlights a strategic realignment of oil majors toward critical minerals. The Smackover formation is fast becoming a global lithium hotspot, and Chevron’s move strengthens US ambitions for secure, domestic supply. If successful, this strategy could reshape the balance of power in the lithium industry, positioning oil giants as major players in the battery supply chain.

Zijin Mining to Launch Manono Lithium Project in DRC in 2026

Zijin Mining

Zijin Mining plans to commence production at its Manono lithium project in the Democratic Republic of Congo (DRC) in the first quarter of 2026. The project, located in the northeastern portion of the Manono mine, aims to produce 100,000 tonnes per year of spodumene concentrate (SC), equivalent to lithium carbonate equivalent (LCE).  Zijin is also constructing a facility at the site to process some of the spodumene into lithium sulphate, with production also slated to begin in 2026.

Joint Venture and Project Significance

Zijin describes the Manono mine as one of the world's largest open-pit exploitable lithium-rich lithium, cesium, tantalum pegmatite deposits.  The DRC government granted Zijin exploration rights for the northeastern section of the mine on October 23, 2023. DRC's state-owned mining firm, Cominiere, which registered the exploration rights for Manono in 2023, partnered with Zijin to develop this section.  The two companies formed a joint venture, Manono Lithium, with Zijin's subsidiary, Jinxiang Lithium, holding a 61% stake and Cominiere owning the remaining 39%.

Zijin's Lithium Expansion Strategy

Zijin Mining has been actively expanding its lithium business. The company aims to increase its total lithium production dramatically, from 2023 levels to between 250,000 and 300,000 tonnes of LCE by 2028.  In addition to the Manono project, Zijin plans to start production at several other lithium projects. These include the Tres Quebradas (3Q) lithium brine project in Argentina (20,000 t/yr lithium carbonate, 2025), the Lakkor Tso Lithium project in Tibet (20,000 t/yr lithium hydroxide, 2025), and the second phase of the Xiangyuan mine in central China (capacity increase from 3,000 to 30,000 t/yr LCE, Q2 2025).

Vulcan Lithium Hydroxide Project Advances as German Construction Begins

Vulcan Lithium

Vulcan lithium hydroxide project development has moved into major construction in Germany, marking a key step for Europe’s domestic battery materials supply chain. Australian-listed Vulcan Energy has started building its 24,000 t/yr Lionheart lithium hydroxide project in the German state of Hesse.

The Vulcan lithium hydroxide project is scheduled to produce first output in 2028. The construction start follows Vulcan’s receipt of a six-year commercial production licence for the facility in March.

The Vulcan lithium hydroxide project is strategically important because Europe remains heavily dependent on imported lithium chemicals for battery manufacturing. Local lithium hydroxide production could support electric vehicle, battery cell and cathode supply chains across the region.

Vulcan plans to produce battery-quality lithium from low-impurity geothermal subsurface brines. The company will use direct lithium extraction technology, linking lithium production with geothermal resource development in the Upper Rhine Valley.

Geothermal Brines Support Europe’s Local Lithium Strategy

The Lionheart project is part of Europe’s broader effort to build domestic critical minerals capacity. Lithium hydroxide is a key input for high-nickel cathode chemistries used in electric vehicle batteries.

Vulcan’s route is different from conventional hard-rock lithium mining or evaporation pond production. The company plans to extract lithium from geothermal brines, then process it into battery-quality lithium hydroxide.

This matters because direct lithium extraction can reduce land use and accelerate processing compared with traditional evaporation routes. However, DLE projects still face technical and commercial execution risk because each brine system has different chemistry and operating requirements.

Construction of the surface extraction plant at Landau in the Upper Rhine Valley began in February. This upstream extraction work is critical because the lithium hydroxide plant depends on reliable brine supply and stable lithium recovery.

The project’s low-impurity geothermal brine base could give Vulcan a useful advantage if it can scale the process reliably. Battery customers require consistent quality, traceability and long-term supply security.

Public Funding Highlights Strategic Battery Materials Push

The Lionheart project received around €104mn in funding from Germany’s federal government and the states of Rhineland-Palatinate and Hesse last year. This public support shows how lithium processing has become an industrial policy priority in Europe.

Germany has a major automotive industry and is expanding battery manufacturing capacity. Domestic lithium hydroxide production could reduce exposure to overseas conversion hubs and strengthen regional supply resilience.

The project also fits Europe’s push to localise more of the battery value chain. Mining or extraction alone is not enough. Europe needs lithium chemicals, cathode materials, battery cells, recycling and downstream qualification with automakers.

Vulcan’s 24,000 t/yr planned capacity would not satisfy Europe’s full lithium demand. However, it could become a meaningful regional source if production starts as planned in 2028.

The next challenge is execution. Vulcan must complete construction, prove DLE performance, operate the geothermal brine system and qualify lithium hydroxide with battery customers.

The Metalnomist Commentary

Vulcan’s construction start shows that Europe’s battery supply-chain strategy is moving from policy ambition to industrial buildout. The project’s success will depend on whether geothermal brine extraction and lithium hydroxide conversion can scale reliably enough to meet automotive-grade standards.

Yahua Terminates Finniss Lithium Offtake Deal with Core Lithium Following Project Suspension

Yahua Lithium

Chinese lithium producer Yahua terminated its spodumene offtake agreement with Australia's Core Lithium for the suspended Finniss project operations. The Yahua Finniss lithium deal termination follows Core Lithium's decision to halt operations at the Australian project in July 2024. Core Lithium agreed to pay Yahua a $2 million settlement to resolve the contractual obligations under the original 2019 offtake agreement for the Yahua Finniss lithium supply arrangement.

Original Offtake Agreement Targeted 75,000 Tonnes Annual Spodumene Supply

The terminated offtake agreement required Yahua to purchase at least 75,000 metric tonnes per year of spodumene concentrate from Core Lithium's Finniss project. The parties signed this long-term supply contract in 2019 when lithium market fundamentals appeared more favorable for Australian project development. However, the Finniss project faced operational challenges and market headwinds that ultimately led to the suspension of mining activities.

Core Lithium's decision to halt operations reflects broader challenges facing Australian lithium projects amid volatile pricing and operational complexities. The $2 million settlement payment compensates Yahua for the terminated supply relationship while releasing both parties from future contractual obligations. Meanwhile, the Yahua Finniss lithium deal termination demonstrates the risks facing long-term offtake agreements when projects encounter operational difficulties.

Diversified Supply Strategy Shields Yahua from Feedstock Disruption

Yahua emphasized that the Finniss project termination will not affect its lithium feedstock supply security due to diversified sourcing strategies. The Chinese lithium producer owns the Kamativi lithium assets in Zimbabwe, providing direct control over spodumene production and processing operations. As a result, this backward integration strategy reduces Yahua's dependence on third-party Australian suppliers for critical lithium raw materials.

The company maintains additional supply agreements with established lithium miners including Australia's Pilbara Minerals and other global producers. These diversified supply relationships ensure consistent feedstock availability despite individual project disruptions or market volatility. Therefore, Yahua's multi-sourced approach provides operational flexibility and supply chain resilience across different geographic regions and mining operations.

Yahua's response to the Finniss project termination highlights the importance of supply diversification in the volatile lithium market. Chinese lithium processors increasingly pursue backward integration strategies and multiple supplier relationships to manage supply risks. Consequently, the Yahua Finniss lithium deal termination reinforces the strategic value of diversified sourcing approaches for lithium chemical producers.

The Metalnomist Commentary

The Yahua-Core Lithium offtake termination illustrates the fragility of long-term supply agreements in volatile commodity markets, particularly for emerging lithium projects facing operational and financial pressures. Yahua's emphasis on supply diversification through asset ownership and multiple supplier relationships reflects the evolving risk management strategies of Chinese lithium processors seeking to secure feedstock supplies amid market uncertainty and project development challenges.

Chengxin Lithium Secures License for Asia's Largest Lithium Deposit in Sichuan

Yajiang County Huilong Mining

Yajiang County Huilong Mining, a subsidiary of Chengxin Lithium, has obtained a mining license for the Murong lithium mine in Yajiang County, Sichuan Province, China. The license, effective until 2048, grants access to a resource of 61.095 million tons with an average grade of 1.62% lithium oxide, equivalent to 989,600 tons of lithium oxide. This positions Murong as one of Asia's largest hard rock monomer lithium deposits, with an annual production capacity of 3 million tons of ore.

Expanding Lithium Production Amid Rising Demand

In 2023, Chengxin Lithium increased its lithium salt production—primarily lithium carbonate and lithium hydroxide—to 56,700 tons, marking a 19% year-on-year growth. Sales rose by 11% to 52,900 tons, reflecting growing global demand for lithium-driven by electric vehicles and renewable energy storage solutions.

Chengxin's total production capacity now stands at 137,000 tons per year, with 77,000 tons sourced domestically from China and 60,000 tons produced in Indonesia. To diversify its feedstock, the company also taps its Sabi Star lithium mine in Zimbabwe, which contributes 200,000 tons annually of concentrate.

A Strategic Advantage for Chengxin and China

The Murong lithium mine acquisition strengthens Chengxin Lithium's foothold in the global lithium supply chain, critical for battery production and clean energy transition. This move aligns with China's strategy to secure domestic and international lithium resources, ensuring its leadership in the EV and energy storage markets.

Key Takeaways

Murong Lithium Mine: One of Asia's largest hard rock lithium deposits with high-grade lithium oxide reserves.

Production Growth: Chengxin's lithium salt production surged by 19% in 2023.

Global Supply Chain: Significant contributions from China, Indonesia, and Zimbabwe bolster Chengxin's raw material security.

With rising EV adoption and renewable energy investments, Chengxin's latest acquisition underscores its pivotal role in powering a sustainable future.

Rio Tinto Lithium Capacity Expansion Targets 200,000 t/yr by 2028

Rio Tinto, Lithium mining

Rio Tinto lithium capacity expansion is moving into a much larger phase. The miner expects lithium carbonate equivalent capacity to reach 200,000 t/yr by 2028. That would be more than triple the 57,000t produced in 2025. As a result, Rio Tinto lithium capacity expansion is becoming a major growth story in the global lithium market.

This matters because Rio Tinto now sounds more committed than before. The company had previously linked the target to market conditions and returns. It now says all in-house projects remain on track. Therefore, Rio Tinto lithium capacity expansion is shifting from conditional ambition to active execution.

The company also sees stronger demand support from battery storage. Management said battery energy storage systems are becoming a fast-growing demand pillar. That trend is now outpacing electric vehicle growth. Consequently, battery storage lithium demand is strengthening the case for faster capacity buildout.

Rio Tinto Lithium Projects in Argentina and Canada Drive the Growth Plan

Rio Tinto lithium projects in Argentina are central to the near-term ramp-up. A 10,000 t/yr expansion at Fenix and the new 15,000 t/yr Sal de Vida project should lift 2026 output to 61,000-64,000t LCE. Both projects are already mechanically complete and moving through commissioning. As a result, Rio Tinto lithium projects are starting to convert capital spending into real production growth.

Rincon is another major part of the plan. Its 3,000 t/yr starter plant is progressing well and should reach full capacity by year-end. Once fully developed, Rincon is designed for 60,000 t/yr. Therefore, Rio Tinto lithium capacity expansion has meaningful scale beyond the first Argentina assets.

Canada also matters more now. Rio Tinto increased its stake in Nemaska to 53.9pc and took direct management control. The company wants to build an integrated lithium chain in Quebec from mining to refining. Meanwhile, Nemaska’s mine is 60pc complete and still targets first production in 2028.

Battery Storage Lithium Demand and Chile Exposure Broaden the Strategy

Battery storage lithium demand gives Rio Tinto a broader demand base than EVs alone. That is important because it reduces reliance on one single end market. The company now sees storage as a consistent source of future lithium consumption. As a result, Rio Tinto lithium capacity expansion looks better aligned with changing battery market dynamics.

The strategy also reaches beyond Argentina and Canada. Rio Tinto expects its agreements with Codelco and Enami in Chile to close in the first half of 2026. Those deals would give the company access to two major untapped lithium resources. Therefore, Rio Tinto lithium projects are expanding across several of the world’s most important lithium regions.

Capital spending confirms the seriousness of the push. Rio Tinto spent more than $1bn on lithium expansion projects in 2025. That level of investment shows lithium is becoming a more meaningful business line inside the group. Consequently, lithium carbonate equivalent capacity is no longer a side opportunity for Rio Tinto.

The Metalnomist Commentary

Rio Tinto is no longer testing lithium. It is building a serious multi-region platform around it. The most important signal is not only the 200,000 t/yr target. It is that battery storage demand now gives the company a stronger reason to keep scaling aggressively.

Nevada North Lithium Project Resource Growth Strengthens US Lithium Supply Potential

Nevada North Lithium Project has increased its measured and indicated resource base, improving the scale potential of one of the more closely watched US lithium development assets. Canadian developer Surge Battery Metals updated the project’s estimate to 6.7mn t of lithium carbonate equivalent.

Nevada North Lithium Project now carries measured and indicated resources grading 3,820ppm lithium. That compares with 3.6mn t grading 4,016ppm in the project’s preliminary economic assessment.

Nevada North Lithium Project resource growth is strategically important because the US continues to seek domestic lithium supply for batteries, electric vehicles, energy storage and critical minerals security.

The project is jointly owned by Surge Battery Metals, with a 71% stake, and Evolution Mining, with 29%. Surge plans to deliver a comprehensive pre-feasibility study in the fourth quarter of 2026.

Larger Resource Base Improves Development Scale

The revised estimate shows a larger resource base, although the average lithium grade is slightly lower than in the preliminary economic assessment. That trade-off is common as projects expand and include broader mineralised zones.

The resource is constrained by an optimised pit shell based on a lithium carbonate equivalent price of $20,000/t. This assumption helps define what material could be economically considered under the current mine planning framework.

The increase to 6.7mn t of LCE improves the project’s strategic profile. Scale matters in lithium because battery supply chains need long-term, reliable and expandable sources of feedstock.

For Surge, the next milestone is the pre-feasibility study. That study will need to clarify mining design, processing route, capital cost, operating cost, recovery assumptions and permitting requirements.

Nevada North Li Project

US Lithium Projects Gain Momentum as Prices Improve

Recent lithium price increases are encouraging more exploration and development activity. Higher prices can improve project economics and attract financing, especially for assets in strategically important jurisdictions.

Nevada is already central to US lithium ambitions. The state offers domestic resource potential, established mining experience and proximity to battery and electric vehicle supply chains.

However, resource growth alone does not guarantee production. The project must still prove technical feasibility, commercial processing, environmental compliance and customer relevance.

The larger estimate gives Surge a stronger platform heading into the pre-feasibility stage. It also reinforces the wider US push to reduce dependence on imported lithium chemicals and battery raw materials.

If advanced successfully, Nevada North could become part of a more diversified North American lithium supply chain. Its value will depend on whether scale can translate into qualified, cost-competitive lithium production.

The Metalnomist Commentary

Surge’s updated estimate strengthens Nevada North’s strategic relevance, but the real test now moves from resource size to development economics. US lithium security will depend on projects that can pass feasibility, permitting and processing hurdles, not only publish larger resource numbers.

Sigma Lithium Waste Piles Cleared by ANM but Legal Uncertainty Remains

Sigma Lithium

Sigma Lithium waste piles are no longer under immediate safety threat according to Brazil’s national mining agency ANM. The regulator found no inconsistencies in the dry waste stacks and said there was not enough evidence to justify precautionary closure measures. As a result, Sigma Lithium operations regained regulatory support even though the dispute is not fully resolved.

This ruling matters because it directly challenges the earlier position of Brazil’s labour ministry. The labour ministry had argued that the integrity of the waste piles had been compromised. However, ANM reached the opposite conclusion after a new audit in January. Therefore, Sigma Lithium waste piles now sit at the center of a broader institutional conflict over mining oversight in Brazil.

Sigma has already restarted operations at its mine, and the waste pile issue did not block that restart. That means production should remain unaffected in the near term. Meanwhile, the regulatory disagreement still creates legal and reputational uncertainty around the site.

Brazil Mining Regulator ANM Backs Sigma’s Safety Position

Brazil mining regulator ANM has now given Sigma an important procedural win. The agency said the legal conditions needed for precautionary shutdown measures were not met. That strengthens Sigma’s position after earlier scrutiny over the dry waste stacks. As a result, the company now has the main mining regulator on its side.

The decision also highlights the fragmented nature of mining oversight in Brazil. ANM normally verifies mine safety standards, but its auditing role has weakened after a major budget cut. That gap has allowed the labour ministry to take on a larger role in certain investigations. Therefore, the Sigma Lithium waste piles case has become about governance as much as geology or engineering.

This overlap creates a difficult regulatory environment for operators. Even when ANM clears a company, other agencies may still pursue their own actions. Consequently, legal certainty can remain weak even after a favorable technical assessment.

Sigma Lithium Operations Continue Despite Ongoing Legal Risk

Sigma Lithium operations are expected to continue because the labour ministry cannot legally halt the mine. That is the most important near-term commercial point for the market. However, three of the five waste piles remain shut until further notice. Therefore, the case is not fully closed from an operating risk perspective.

The next phase may move into the courts. The labour ministry is expected to take the case to court despite ANM’s assessment. That means the regulatory dispute could evolve into a judicial test of agency authority and mine safety interpretation. As a result, investors may continue to watch the case even if production remains stable.

For Brazil’s lithium sector, this episode sends a wider signal. Regulatory clearance alone may no longer be enough when institutional responsibilities are split. Meanwhile, companies may need to manage parallel oversight from mining, labour, and legal authorities at the same time.

The Metalnomist Commentary

This is a regulatory victory for Sigma, but not a final one. The key issue now is less about immediate mine safety and more about how Brazil resolves overlapping authority between agencies. If that uncertainty persists, future lithium projects may face a more complicated path from compliance to operational confidence.

US Tariffs Could Boost Argentina’s Lithium Salts Production

Argentina Lithium

New Tariff Policies May Propel Argentina to the Forefront of Battery Materials Supply

US President Donald Trump’s new tariff measures, announced this week, could significantly impact the global lithium market. While many energy and mineral products, including lithium carbonate and lithium hydroxide, are exempt from new tariffs, the shift towards more localized battery production in the US could create new opportunities for Argentina's lithium sector. Argentina, with its lower-cost brine assets, could become a key player in the production of battery-grade lithium salts.

Shift in Global Battery Manufacturing and Tariffs Impact

Trump's recent tariff policy introduced significant duties on completed batteries from China, Japan, and South Korea. These duties are likely to accelerate the trend of localizing battery production in the US. Under the Inflation Reduction Act of former President Joe Biden’s administration, the US has already seen a shift toward local manufacturing, with major battery manufacturers like Panasonic, Samsung SDI, Ford, and Toyota planning to open around 10 new battery factories this year.

However, with a lack of domestic mining and processing capacity in the US, the country will increasingly rely on imports for raw materials to meet the demand for battery production. The US currently has only one operating lithium mine, Albemarle's Silver Peak mine in Nevada. Despite producing lithium carbonate and hydroxide, this mine cannot meet the higher purity standards required for battery-grade products needed in electric vehicles (EVs).

Argentina’s Competitive Edge in Lithium Salts Production

Argentina stands out due to its potential to produce high-quality, cost-competitive lithium salts. Brine operations in Argentina are expected to be more efficient and less costly than other South American and spodumene-producing countries. Although brine facilities require higher initial capital costs, their ongoing operational costs are lower than spodumene-based assets, making them an attractive option for global supply chains.

Argentina’s competitive advantage is further strengthened by its 3% royalty tax on lithium mining, compared to the 40% ceiling in Chile, which has a more developed lithium industry. Despite facing a 10% import tariff by the US, Argentina is well-positioned to expand its lithium production to meet the growing demand from battery factories in the US. According to Argentina’s Vice Minister of Energy and Mining, Daniel Gonzalez, "All of Argentina's lithium projects go to battery grade," signaling the country's commitment to producing high-purity lithium products.

While countries like Australia, Brazil, and some African nations rely on China for lithium processing, Argentina's direct production of battery-grade lithium offers it a strategic advantage in the global market.

Sinomine Lithium and Copper Expansion Targets Zimbabwe and Zambia Growth

Sinomine Resources

Sinomine lithium and copper expansion is accelerating as the Chinese miner prepares to raise up to 5.2bn yuan to fund new battery metals, copper and specialty metals projects. The targeted share placement will support projects in Zimbabwe, Zambia and Jiangxi province.

Sinomine lithium and copper expansion reflects the company’s move from a lithium-focused growth story into a broader multi-metal platform. The company entered lithium through the Bikita mine in Zimbabwe in 2021 and added copper exposure through its 65% stake in Zambia’s Kitumba project in 2024.

Sinomine lithium and copper expansion also shows how Chinese mining companies are securing upstream resources while building processing capacity closer to mine sites. That strategy is becoming more important as resource-rich countries push for more domestic value addition.

The fundraising plan will support a 100,000 t/yr lithium sulphate plant in Zimbabwe, the Kitumba copper project in Zambia, and a 2,000 t/yr caesium and rubidium products project in Jiangxi.

Kitumba Copper Project Strengthens Sinomine’s Diversification

The Kitumba copper project is central to Sinomine’s move into copper. Development is advancing through equipment procurement, civil works and installation, with trial concentrator production targeted by the third quarter of 2026.

Full concentrator commissioning is expected in the fourth quarter of 2026. Smelter trial production is also targeted for the fourth quarter, with full operations expected from the first quarter of 2027.

Kitumba’s mining and processing design capacity remains 3.5mn t/yr of ore. However, smelting design capacity has been revised down to 35,000 t/yr of copper cathode from the previous 60,000 t/yr.

At full capacity, the project is expected to average 33,000 t/yr of copper cathode and 55,000 t/yr of copper concentrate. This gives Sinomine exposure to both refined copper and concentrate flows.

The project matters because copper demand is increasingly tied to grids, electric vehicles, data centres, renewable energy and industrial electrification. Chinese miners are therefore looking beyond lithium to secure copper assets that can support long-term energy transition demand.

Zambia also gives Sinomine a strategic position in the African copper belt. The region remains one of the most important sources of copper growth, but project execution will depend on infrastructure, power, permitting and smelting economics.

Zimbabwe Lithium Sulphate Plan Moves Processing Downstream

Sinomine’s Bikita lithium operations in Zimbabwe have already ramped up after commissioning 2mn t/yr and 1.2mn t/yr expansion projects in July 2023. The projects reached designed capacity and product specifications by November 2023.

Lithium concentrate shipments to China have continued, but Zimbabwe’s policy environment is pushing Chinese lithium firms to process more material locally. The country imposed a ban on concentrate exports in February, accelerating interest in lithium sulphate production.

Sinomine’s planned 100,000 t/yr lithium sulphate plant fits that shift. Details on construction timing and commissioning have not yet been disclosed, but the strategic direction is clear.

Lithium sulphate gives producers a way to move further downstream before exporting material to China or other battery chemical markets. It also helps satisfy local value-addition requirements while preserving access to Zimbabwe’s lithium resource base.

Other Chinese battery materials companies are moving in the same direction. Huayou Cobalt shipped its first lithium sulphate cargo from Zimbabwe to China on 25 April, showing that the processing route is already becoming commercially active.

Sinomine’s specialty metals platform adds another layer. The company is a leading producer of caesium and rubidium salts, with integrated mining, processing and advanced materials capabilities.

The planned 2,000 t/yr caesium and rubidium products project in Jiangxi supports higher-value specialty materials growth. These metals serve specialised industrial, electronic and advanced technology applications.

Sinomine’s latest fundraising plan therefore points to a more integrated strategy. The company is securing lithium, adding copper, and expanding specialty metals processing while responding to changing export rules and downstream demand.

The Metalnomist Commentary

Sinomine’s strategy shows how Chinese miners are adapting to a world where resource ownership alone is no longer enough. The next advantage will come from controlling mine supply, local processing and downstream product routes across lithium, copper and specialty metals.

Battery Metals Mining Diesel Disruption Raises New Supply Chain Risk

Battery Metals Mining

Battery metals mining diesel disruption could become an immediate operational risk if the Middle East fuel crisis continues to restrict diesel and gasoil flows. Mining operations that rely heavily on diesel for haulage, transport, drilling, and remote-site activity are the most directly exposed.

The pressure will not affect every part of the battery supply chain equally. Upstream mining faces the clearest fuel availability and cost risk, while refining and processing may feel the impact later through logistics delays, higher freight costs, and reduced primary feedstock availability.

Battery metals mining diesel disruption is most relevant for parts of southern Africa, Australia, and southeast Asia. These regions host major copper, cobalt, lithium, and nickel operations, but their fuel exposure differs sharply by power source, transport route, and mine configuration.

Southern African Copper and Cobalt Face Fuel Logistics Pressure

The DRC and Zambia could face early pressure if diesel flows remain disrupted. Ports in South Africa and Tanzania reportedly had around two months of diesel stock moving inland, but mining operators may need to reduce fuel use by mid-April if the Strait of Hormuz does not reopen soon.

The risk is significant because the copper-cobalt belt depends on diesel for logistics, open-pit haulage, mine-site activity, and some ore concentration processes. The DRC relies heavily on hydroelectricity for power, but diesel generators remain important in areas with limited grid access and for backup supply.

Zambia also plays a crucial logistics role between the copperbelt and key export ports, including Durban. Fuel shortages along these routes could slow truck movements, disrupt concentrate and cathode shipments, and add costs across copper and cobalt supply chains.

Australia Lithium and Indonesia Nickel Show Different Exposure Profiles

Australia appears acutely exposed because it imports most of its diesel from Asia, which in turn depends heavily on Middle East supply. The country has already lowered fuel standards in preparation for supply chain disruption, while cancelled fuel shipments have raised concerns about supply from the second half of April.

Hard-rock lithium mining in Australia could be one of the most fuel-sensitive parts of the battery metals chain. Major spodumene operations such as Greenbushes, Pilgangoora, and Mt Marion rely on diesel for haulage, drilling, and remote-site logistics, even though crushing, grinding, and concentration use more electricity.

Indonesia’s nickel sector is more insulated from immediate fuel disruption because many processing operations rely on captive coal-fired power. However, nickel mining still needs diesel for extraction and internal logistics, while the sector remains exposed to sulfur, sulfuric acid, shipping, and broader energy cost risks.

The Metalnomist Commentary

Battery metals mining diesel disruption shows that energy security is now part of critical mineral security. The market often focuses on ore grades and processing capacity, but fuel logistics can decide whether copper, cobalt, lithium, and nickel supply actually reaches the next stage of the value chain.