EU Selects 13 Strategic Raw Material Projects Outside the Bloc

EU strategic raw material projects

EU Seeks to Diversify Critical Mineral Supply Chains

The European Commission has approved 13 strategic raw material projects outside the European Union, estimating a total capital investment of €5.5bn ($6.26bn) to bring them online. Chosen from 49 applications, these projects span Brazil, Canada, Greenland, Kazakhstan, Madagascar, Malawi, New Caledonia, Norway, Serbia, South Africa, the UK, Ukraine, and Zambia. Under the 2024 EU Raw Materials Act, the bloc aims by 2030 to domestically extract 10pc, process 40pc, and recycle 25pc of 17 strategic raw materials. Additionally, no single third country should supply more than 65pc of annual EU consumption.

Targeting Lithium, Nickel, Cobalt, Manganese, and Rare Earths

Ten of the approved projects focus on lithium, nickel, cobalt, manganese, and graphite, while two — Songwe Hill in Malawi and Zandkopsdrift in South Africa — will extract rare earth elements. Other notable initiatives include Rio Tinto’s Jadar lithium and boron project in Serbia, the Integrated Dumont Nickel Project in Canada, Kobaloni Energy’s cobalt processing in Zambia, and Balakhivka Graphite Deposit in Ukraine. The EU will provide coordinated support, including facilitating finance and connecting projects with potential off-takers. Industrial commissioner Stephane Sejourne emphasised that diversifying away from dependency on countries like China is critical, given current reliance levels exceeding 100pc in some refining and recycling segments.

The Metalnomist Commentary

The EU’s latest selections mark a significant expansion of its global strategic raw material network, signalling an urgent push to secure supplies ahead of the 2030 targets. While the €5.5bn investment is substantial, long-term success will depend on execution speed, environmental considerations, and stable geopolitical relations with host nations.

Spain Critical Raw Materials Plan Targets Mining Supply Chain Revival

Spain Mining

Spain critical raw materials policy is moving into a more active phase as the government prepares to invest €414 million to strengthen domestic mining and raw material supply. The funding will support recycling, mineral exploration, abandoned mine restoration, and workforce training across the Spanish mining sector.

The plan reflects Europe’s wider push to reduce dependence on imported critical minerals. Spain already holds an important position in the EU mining landscape. It ranks as the bloc’s second-largest copper producer and third-largest tungsten producer, giving the country a stronger base than many European peers.

Spain critical raw materials investment also comes as the EU accelerates project selection under the Critical Raw Materials Act. The European Commission has selected seven strategic mining and raw material projects in Spain, placing the country just behind Germany and France in the European project pipeline.

National Exploration Program Signals a Return to Resource Strategy

The most important part of the plan is Spain’s first National Mining Exploration Program in 50 years. The government plans to allocate €182 million to the program, marking a major shift from passive resource ownership to active resource development.

Exploration is critical because Europe’s raw material strategy cannot rely only on known deposits. Copper, tungsten, lithium, rare earths, and other strategic minerals require long development timelines. Without fresh exploration, permitting reform, and financing support, Europe’s supply ambitions will remain exposed to overseas sources.

Spain’s geological position gives the program clear industrial relevance. Copper supports power grids, electrification, renewable energy systems, and industrial manufacturing. Tungsten remains important for hard metals, defense applications, aerospace tooling, and high-performance manufacturing. As a result, the Spanish mining sector could become more strategically important to Europe’s energy transition and industrial security.

Financing Risk Remains the Main Barrier for Spanish Mining Projects

Spain critical raw materials funding addresses a long-standing complaint from mining companies. Industry players have asked for clearer financial and regulatory support because many emerging projects remain stalled despite strong policy interest.

The core problem is risk. Mining projects require large upfront capital, long permitting processes, and uncertain development timelines. Banks and investors often hesitate to provide credit lines, especially for early-stage projects that lack proven production economics.

The new funding can help reduce that gap, but it will not solve every obstacle. Spain must still convert policy support into bankable projects, faster approvals, skilled labor, and reliable infrastructure. If the government succeeds, the Spanish mining sector could become a stronger pillar of Europe’s critical raw materials strategy.

The Metalnomist Commentary

Spain’s plan is strategically important because it links exploration, recycling, and mine restoration into one raw materials agenda. However, the decisive test will be whether public funding can unlock private capital for projects that banks still view as too risky.

EU Raw Materials Platform Targets Strategic Metals Supply Security

EU, Raw Materials Platform

EU raw materials platform development has advanced as the European Commission launched a new online mechanism to connect European offtakers with suppliers of strategic raw materials. The EU raw materials platform is designed to support demand aggregation, joint purchasing and better market information across critical supply chains.

The platform covers all 17 strategic raw materials listed under the Critical Raw Materials Act. These materials are central to batteries, rare earth magnets, defence systems, semiconductors, renewable energy, advanced manufacturing and industrial resilience.

EU raw materials platform activity will take place through structured rounds. The first diversification round will target operational projects where materials are already available or expected in the near term, with a focus on rare earths, defence-related materials and battery metals.

The mechanism will not provide financing or directly support negotiations. However, it can improve visibility across supply, demand, storage, investment opportunities and financing options, which are often fragmented in strategic raw material markets.

Demand Aggregation Could Strengthen Minor Metals Markets

Demand aggregation is the most important function of the platform. Many strategic materials are needed in small volumes by individual companies, but they carry high industrial and defence value.

This is especially true for minor metals such as gallium and germanium. These materials are used in semiconductors, optics, solar technologies, defence electronics and advanced communications systems, but individual buyers may not require large enough volumes to support new supply projects alone.

Pooling demand can change that equation. If several European buyers aggregate requirements, suppliers may see larger, more stable offtake volumes. This can improve confidence for upstream mining, refining, recycling and midstream processing projects.

The same logic applies to rare earths. Magnet makers, motor producers, defence manufacturers and clean-energy equipment suppliers often need secure access to neodymium, praseodymium, dysprosium and terbium. Aggregated demand could make European purchasing more credible to non-EU suppliers.

Battery metals may also benefit. Lithium, cobalt, nickel, manganese and graphite supply chains are increasingly shaped by long-term offtake, regional qualification and industrial policy. A shared platform can help buyers identify supply options before shortages become acute.

The platform therefore addresses a structural weakness in Europe’s critical materials strategy. Europe has strong downstream industries, but many of those industries purchase strategic metals in fragmented, company-by-company channels.

By collecting and exchanging market data, the mechanism could help convert dispersed demand into more bankable offtake signals. That is important for suppliers seeking financing, customers and predictable long-term buyers.

Platform Supports EU Diversification but Does Not Replace Financing

The EU raw materials platform is part of a broader strategy to reduce external dependencies under the Critical Raw Materials Act. Europe wants to diversify supply, strengthen domestic processing and secure access to materials needed for the energy transition and defence.

However, the mechanism is not a full project-financing tool. Negotiations will take place outside the system, and the platform will not guarantee deals or provide direct financial backing.

This limits what the mechanism can achieve by itself. Strategic raw material projects still need permitting, capital, technology, customer qualification, logistics and long-term price visibility.

But the platform can still play a useful role. It can bring buyers and suppliers into the same market framework, improve demand transparency and identify where joint purchasing could support supply diversification.

The first diversification round will be important because it focuses on projects close to availability. This avoids the problem of relying only on long-dated mining projects that may take years to enter production.

The inclusion of storage options is also relevant. Strategic materials supply security is not only about production. It also depends on inventories, emergency access, buffer stocks and coordinated procurement during disruption.

The broader platform also includes gas and hydrogen mechanisms. This shows that the EU is applying a similar strategic procurement model across energy and raw materials, where fragmented buying can weaken market leverage.

For Europe’s industrial base, the key issue is execution. The platform must move beyond data sharing and create real commercial connections between offtakers and suppliers. Otherwise, it risks becoming another policy tool without enough market impact.

For suppliers, the opportunity is clearer. A credible pool of European demand could make projects more attractive, especially in rare earths, gallium, germanium and battery materials where supply diversification is politically urgent.

The Metalnomist Commentary

The EU raw materials platform is not a financing solution, but it could become an important demand-signalling tool. Its success will depend on whether Europe can turn fragmented buyer interest into real offtake volumes that support new strategic metals supply.

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.

EU Selects 47 Strategic Raw Materials Projects Under CRMA

EU

New Projects Aim to Boost European Raw Material Independence

The European Commission has announced 47 strategic raw materials projects across 13 EU countries under the Critical Raw Materials Act. These initiatives are part of the EU’s push to reduce foreign dependence and strengthen domestic supply chains by 2030.

The selected projects span extraction, processing, recycling, and substitution of key metals like lithium, nickel, and graphite. In total, they are expected to require €22.5 billion ($24.3 billion) in capital investment, with an accelerated permitting timeline.

Lithium and Nickel Dominate Strategic Focus

Among the 47 projects, 22 are focused on lithium, 12 on nickel, and 10 on cobalt—metals vital for green energy transitions. Projects also cover graphite, manganese, tungsten, and magnesium, all critical for battery, defense, and digital industries. The EU has set targets to meet 10% of its raw material extraction and 40% of processing needs internally by 2030. Savannah Resources’ Barroso lithium project in Portugal is among the featured initiatives with strategic classification status.

Stockpiling and Geopolitical Implications

The Commission is now gathering data on national stockpiles to assess safe storage levels for critical materials across the bloc. An EU raw materials center may coordinate stockpiling efforts starting next year, aligning with global practices in the US and China.

Given global geopolitical shifts, including US leadership changes, the EU is intensifying its focus on material security strategies. Officials stress that European clean tech independence should not lead to new forms of dependency—especially on China.

The Metalnomist Commentary

The EU's selection of 47 strategic raw materials projects signals a shift toward regional autonomy in critical mineral supply chains. If executed on time, the CRMA framework could reshape Europe's role in the global energy and defense materials landscape. However, execution speed and political cohesion across member states will ultimately determine the strategy’s success.

Lopal Marble Bar Lithium Project Deal Extends Chinese Battery Material Supply Strategy

Lopal

Lopal Marble Bar lithium project acquisition will give China’s battery cathode material producer Lopal Tech another upstream position in Western Australia’s lithium sector. The company has agreed to acquire the Marble Bar project from Global Lithium Resources for A$14.85mn.

The Lopal Marble Bar lithium project is located in the Pilbara region of Western Australia. The project has an estimated resource of 18mn t grading 1.0% lithium oxide.

The Lopal Marble Bar lithium project deal reflects a continuing push by Chinese battery material producers to secure upstream lithium resources. Cathode and battery material companies are looking beyond processing capacity and moving closer to mine supply.

This matters because lithium raw material security remains central to battery supply chains. Even as lithium prices fluctuate, companies with long-term access to spodumene resources can better protect conversion plants, cathode output and customer supply.

Marble Bar Adds Pilbara Resource Exposure

The Marble Bar project gives Lopal direct exposure to a known lithium-bearing region. Western Australia remains one of the world’s most important hard-rock lithium supply bases, with spodumene projects feeding converters and battery material producers across Asia.

The project’s 18mn t resource at 1.0% lithium oxide gives Lopal a potential raw material position, although the acquisition price suggests the asset is still at an early development stage.

For Global Lithium Resources, the sale allows the company to focus more heavily on its larger Manna lithium project. Manna has a resource estimate of 52mn t grading 1.0% lithium oxide.

This creates a clearer portfolio structure. Lopal gains Marble Bar, while GL1 retains its larger Manna asset and existing downstream-linked partnerships.

The transaction also shows that Chinese battery material producers remain willing to invest in Australian lithium assets despite market volatility. Long-term supply security continues to matter more than short-term price weakness.

Manna Links Lopal to Future Offtake Supply

Lopal already has exposure to GL1 through the Manna project. It holds a 5% equity interest in Manna and has signed an offtake agreement to buy 40% of the project’s output.

China’s Canmax has agreed to take another 30% of Manna’s output and also holds a 9.45% stake in GL1. Australian lithium miner Mineral Resources owns 9.85% of GL1.

These relationships show how lithium supply chains are being structured around equity stakes and offtake agreements. Battery material companies want secured feedstock before projects enter production.

For Lopal, the Marble Bar acquisition adds another layer to its Australian lithium strategy. It gives the company project ownership while maintaining future offtake exposure through Manna.

The broader industrial meaning is clear. Chinese battery material producers are not relying only on spot markets. They are building upstream positions, offtake rights and strategic relationships to support long-term lithium chemical and cathode material supply.

The Metalnomist Commentary

Lopal’s Marble Bar deal shows that lithium strategy is shifting from price speculation to resource control. Even in a weaker lithium market, Chinese battery material companies continue to secure upstream positions that can support future conversion and cathode supply.

Europe Faces Challenges in Strategic Battery Funding Amid Market Oversupply

EU Battery

European countries are struggling to adopt a unified and strategic approach to funding domestic battery supply chains as global oversupply of battery materials, led by China, continues to push prices lower through at least 2030. These issues were a key focus of the Future Battery Forum held this week in Berlin, Germany.

Oversupply in Battery Materials

The battery materials market, including nickel and cobalt, faces oversupply due to significant production increases from Indonesia and the Democratic Republic of Congo (DRC). According to Siyamend Al Barazi, head of unit mineral economics at Germany’s Dera (German Mineral Resources Agency), "markets will be oversupplied at least until 2030." China's state subsidies, estimated at $230 billion from 2009 to 2023, have further contributed to this glut, maintaining downward pressure on global prices.

European Critical Raw Material Challenges

Despite the establishment of the EU Critical Raw Material Act (CRMA), which identifies 34 critical and 17 strategic materials vital to green and digital technologies, European funding efforts fall short of addressing the massive investment needs for battery material production and processing.

In September, Germany's KfW bank approved a €1 billion raw materials fund, while similar initiatives were launched by Italy, France, and the UK. However, panelists at the forum, including Jonathan Vanherberghen from Rio Tinto, argued that these amounts are insufficient for large-scale projects. For example, the capital expenditure for Rio Tinto's Jadar lithium project in Serbia alone stands at $2.5 billion.

Fragmented Funding and Industry Concerns

The fragmented funding landscape in Europe has made it difficult to pool resources effectively. Vanherberghen noted that funds like KfW’s could be more impactful if extended over longer periods to accommodate changing market cycles. Similarly, Cris Moreno, CEO of Vulcan Energy, highlighted that funding of at least $1 billion annually is required to meet the region’s ambitions. Moreno’s own lithium project in Germany has an estimated cost of $1.4 billion.

Despite the challenges, these funding initiatives provide some support by attracting institutional investors and fostering collaboration with car manufacturers, which are under increasing pressure to meet carbon targets and ESG (Environmental, Social, and Governance) standards.

Toward a Unified European Strategy

Experts at the forum emphasized the need for a more unified and sizeable funding mechanism to bolster Europe’s battery supply chain. A single, cohesive approach would allow Europe to compete with countries like China, South Korea, and Japan, where government support for raw material projects is significantly more robust.

Vanherberghen concluded, "Funds like that will only support projects with the highest ESG standards. Bringing these things together could create a much more effective system than the fragmented approach currently in place."

Indian Stainless Steel Sector Faces Headwinds from Imports and Raw Material Volatility

ISSDA

India’s stainless steel sector may face short-term turbulence amid rising imports and fluctuating input costs, says the ISSDA.

Rising Imports and Raw Material Volatility Challenge Growth

The Indian Stainless Steel Development Association (ISSDA) warns that the domestic stainless steel sector could face challenges in early FY2025-26. Volatile prices for nickel and ferro-chrome, coupled with low-cost imports from China and Vietnam, are pressuring Indian producers. According to ISSDA president Rajamani Krishnamurti, these imports threaten local manufacturers’ margins and growth momentum.

However, India’s strong domestic demand and supportive government policies may offer some market stability. Still, the industry remains vulnerable to global supply chain disruptions and raw material dependency, particularly on Indonesian nickel.

Capacity Expansion and Infrastructure Demand Drive Optimism

Despite the headwinds, India’s stainless steel industry remains optimistic for FY2025-26.

The country’s installed capacity of 7.5 million t/yr remains underutilized, with 40% unused, but new investments aim to close this gap. Growth drivers include infrastructure development, urbanization, and Make in India initiatives.

The railways, construction, and public-private infrastructure projects are expected to boost stainless steel consumption. Additionally, renewable energy technologies such as solar panels and wind turbines present promising applications for stainless steel. The sector also sees long-term growth potential from green hydrogen and smart city development projects.

The Metalnomist Commentary

India’s stainless steel sector sits at a crossroads. Structural demand remains intact, but trade dynamics and global price shifts threaten stability. How India balances domestic capacity utilization, import regulation, and supply chain resilience will shape the industry’s mid-term outlook.

Germany Launches €1 Billion Raw Materials Fund to Strengthen Supply Chains

Germany has approved a €1 billion ($1.1 billion) raw materials fund aimed at boosting domestic and international raw material projects. The initiative, managed by state-owned development bank KfW, is designed to strengthen value chains and reduce reliance on foreign imports. The fund will focus on critical areas such as mining, processing, and recycling, and the German government will contribute through equity capital.

Eligible projects must have a binding offtake agreement and a completed feasibility study, as outlined by KfW in May. A government-led raw materials committee will oversee project negotiations and approvals. This strategic move aligns with Europe's growing emphasis on securing critical minerals, a priority under the EU’s Critical Raw Materials Act.

Germany’s initiative mirrors similar efforts in France and Italy, which have also launched raw materials funds. Italy's fund, valued at €1 billion, is expected to attract an additional €1 billion from private investors, while France has committed €500 million to its fund. The European Bank for Reconstruction and Development, along with the EU, launched a joint initiative in July to provide up to €100 million in equity investments for critical materials projects.

Key minerals such as lithium, copper, battery metals, and rare earth elements—essential for industries like aerospace and defense—are primary targets for these European initiatives.

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.

China Aerospace-Grade Titanium Sponge Exports Set to Rise as OEMs Diversify Supply

China Aerospace-Grade Titanium Sponge

China aerospace-grade titanium sponge exports are expected to rise over the next five years as western aerospace supply chains look for additional qualified raw material sources. Chinese producer Chaoyang Jinda Titanium expects international shipments of qualified aerospace-grade sponge to increase from around 1,000t this year to 10,000t by 2030.

The shift reflects a deeper change in the aerospace titanium supply chain. Western aircraft manufacturers and ingot melters are trying to reduce exposure to Russian supply, while aircraft build rates are expected to rise from 2027.

China aerospace-grade titanium sponge is therefore moving from a limited export niche into a potential supply-chain balancing tool. However, tariffs, qualification risk and geopolitical uncertainty will limit how quickly US and European buyers adopt Chinese material.

The opportunity is strongest in standard-quality structural titanium grades. Premium-quality sponge for engine, landing-gear and other critical applications is likely to remain controlled by established suppliers with long qualification histories.

Western Aerospace Buyers Face a Supply-Diversification Challenge

Aerospace-grade sponge demand is expected to recover from 2027 after a weaker 2026 caused by inventory normalisation. Mills have been reducing stocks of semi-finished titanium parts and raw materials, but aircraft production plans point to higher requirements later in the decade.

The timing is important. Airbus and Boeing both carry long aircraft backlogs, creating a decade of production visibility. This forces mills and original equipment manufacturers to look beyond short-term demand swings and secure raw material sources for future build-rate increases.

Western OEMs also continue to reassess Russian titanium exposure. If procurement from Russia declines, the market will need alternative aerospace-qualified sponge to fill the gap. Japan’s Toho Titanium and Osaka Titanium are expanding, while China is preparing to supply more qualified material.

Global approved aerospace-grade sponge supply excluding Russian products is expected to rise from about 74,000t this year to around 91,000t by 2030. Demand is expected to grow at a similar pace, leaving the market sensitive to which suppliers are included in purchasing programmes.

The supply-demand picture changes significantly depending on China and Russia. Excluding both suppliers creates a tighter market. Including them creates more apparent supply availability. This makes qualification and geopolitical acceptability just as important as physical capacity.

Some US ingot producers began qualifying Chinese titanium sponge in 2024. US imports from China rose to a 10-year high of 1,069t that year, showing that buyers were willing to test Chinese material when diversification pressure increased.

However, imports fell to 155t last year and no Chinese sponge imports were reported in January-February 2026. Tariff volatility, high mill inventories and policy uncertainty discouraged further purchasing.

This shows the main barrier for China aerospace-grade titanium sponge. Aerospace qualification requires multi-year commitments, stable documentation, repeatable quality and customer confidence. Buyers will not qualify a new source quickly if they fear trade rules could change again.

Titanium is exempt from the latest 10% US tariff, and overall duties have fallen back to 40% from 60%. But the rate itself is not the only issue. For aerospace buyers, volatility can be more damaging than the actual tariff level.

A mill can absorb or price a known tariff. It cannot easily build a long-term qualification strategy around unpredictable policy. This is why US buyers may limit Chinese sponge procurement to 15-20% of requirements, even if the material is technically acceptable.

Europe and Asia-Pacific may offer more immediate export channels. China already supplies aerospace-grade sponge to buyers in those regions, supporting shipments even when US demand is limited.

Capacity Expansion Could Change the Titanium Sponge Balance

China is preparing a large wave of aerospace-grade sponge capacity additions. Several major projects are scheduled to come on line soon, with combined new capacity of around 110,000 t/yr.

The scale is unprecedented. The planned additions exceed the combined existing capacity of Japan’s Toho and Osaka Titanium, Kazakhstan’s Ust-Kamenogorsk Titanium and Magnesium Plant, and Saudi Arabia’s ATTM.

China’s expansion is driven by two demand streams. Domestic aerospace demand is rising from the Comac C919 programme and military aircraft production. At the same time, producers expect higher export demand as western OEMs diversify away from Russia.

China’s titanium mill product demand already has a meaningful aerospace base. Aerospace applications accounted for about 20% of China’s titanium mill product demand in 2025, or roughly 31,280t. The chemicals industry remained the largest segment at 48%.

The domestic base gives Chinese sponge producers a stronger platform for quality improvement. Aerospace production experience matters because sponge qualification depends on consistency over time, not only nameplate capacity.

Still, some market participants question whether all new capacity can secure international aerospace qualification. New lines may need years of operating history before western melters and OEMs accept material for aircraft applications.

This is a critical distinction. China may have large physical capacity, but aerospace supply depends on approved, audited and repeatable production. Capacity alone does not guarantee market access.

Price competitiveness may support adoption. Domestic China aerospace-grade sponge prices have recently held firm at 55,000-57,000 yuan/t ex-works because of cost pressure. That remains competitive against some western supply routes, especially if buyers need alternative non-Russian material.

However, qualification is likely to split the market by application. Standard structural titanium grades are more likely to accept Chinese sponge over time. These grades support airframes and less critical structural components where qualification remains strict but less restrictive than engine-grade applications.

Premium-quality sponge will be harder to penetrate. Engine, landing-gear and other demanding aerospace uses require deeper qualification, tighter chemistry control and stronger confidence from prime contractors and tier suppliers.

Airbus’ titanium demand outlook adds another layer. The A350 is a high titanium-bearing platform, with titanium representing around 15% of aircraft weight. As A350 production rises toward 2027 and 2028, titanium demand visibility should improve across the supply chain.

That demand pull could make Chinese material more attractive if western supply tightens. But buyers will still balance cost, qualification, geopolitics and supply security.

For Chinese producers, the path is clear but difficult. They must prove consistent aerospace-grade quality, build long-term customer trust, manage export documentation and navigate trade policy risk.

For western OEMs, the decision is strategic. China aerospace-grade titanium sponge could reduce Russia exposure and improve supply flexibility. But it also introduces another geopolitical dependency at a time when aerospace and defence supply chains are under closer scrutiny.

The most likely outcome is partial adoption. Chinese sponge may become a growing supplement for standard-quality structural grades, while established Japanese, Kazakh, Saudi and other qualified suppliers remain central to premium aerospace applications.

The Metalnomist Commentary

China aerospace-grade titanium sponge will become harder for western aerospace supply chains to ignore as aircraft build rates rise and Russian exposure narrows. The decisive issue is not capacity, but whether Chinese producers can convert new output into trusted, qualified and politically acceptable supply.

European Stainless Tube Trade Shifts as Policy, Imports and Data Centres Reshape Demand

European Stainless Steel

European stainless tube trade is entering a more selective phase as producers defend margins through higher-value applications, tighter specifications and regional supply advantages. The market remains stable, but it is no longer driven mainly by volume growth.

European stainless tube trade is being reshaped by three forces at once. Imports continue to pressure commodity and process pipe segments. Policy measures such as CBAM and revised safeguards are changing cost structures. At the same time, automotive exhaust demand is declining as electrification advances.

Speakers at SMR’s Stainless Steel Tube and Pipe Market Insights Day in Dusseldorf said Europe is behaving like a mature and cyclical market. Asia remains the main centre of stainless steel consumption and commodity production, while Europe depends more on technical applications, certification and regulatory positioning.

European stainless tube trade is therefore moving away from simple price competition. Producers are increasingly competing on quality, traceability, sustainability, lead times and the ability to serve complex end uses.

Italy-based Marcegaglia Specialties said traditional sectors such as construction, energy, oil and gas, automotive, water and food processing remain the backbone of demand. However, the next stage of competition will depend more on sustainability and product complexity than on basic market expansion.

CBAM and Import Pressure Are Regionalising Stainless Tube Supply

European stainless tube trade is becoming more regional because policy and geopolitics are increasing the value of local supply. CBAM, revised safeguard measures and wider instability are pushing buyers to look more carefully at origin, emissions, delivery risk and compliance.

European producers already operate inside the EU regulatory framework. This gives them an advantage in some higher-value applications where customers require reliable documentation, stable quality and shorter supply chains.

But the policy environment is not simple. Some industry speakers warned that CBAM could become more protectionist than environmental if it raises costs for European downstream processors without fully addressing import competition.

This concern is especially relevant for stainless tube makers. They buy input material under EU cost structures, but still compete with imported finished or semi-finished products in certain market segments.

OSTP chief executive Andrea Gatti argued that CBAM and revised tariff-rate quotas are creating a difficult environment for downstream processors. He said the measures can raise raw material costs for European producers while leaving import pressure unresolved in some product categories.

One concern is the way carbon steel and stainless steel products remain grouped in some quota categories. This can obscure the real level of import pressure in specific stainless segments.

The issue is most visible in process pipe. Overall import penetration in European welded stainless pipe may look moderate, but import pressure is much stronger in process pipe than in automotive or structural applications.

Some imported process pipe is arriving at prices close to European producers’ raw material costs. This creates a serious margin problem for EU producers, especially when they must meet higher regulatory, labour and energy costs.

Asian imports are particularly competitive in pipe and fittings made to ASTM specifications. Around 15-20% of the European market still requires ASTM-based products, often because older engineering standards and end-user specifications remain in place.

This creates an opening for Asian suppliers. Many have long experience producing ASTM-based products and can compete aggressively in segments where buyers focus mainly on price and basic compliance.

Asian producers are also becoming more capable of supplying European-standard material. However, some barriers remain. Hot-rolled feedstock availability, customer qualification and more complex technical requirements still protect parts of the European market.

CBAM adds another layer of uncertainty. Importers and buyers still lack full visibility on the actual carbon values that overseas suppliers will declare. Some emissions disclosures remain incomplete or unreliable.

This creates pricing uncertainty. If importers use default emissions values, CBAM costs may rise sharply. If suppliers provide certified actual data, costs may be lower. But the market does not yet know which overseas suppliers can verify emissions credibly.

For European producers, this uncertainty is both an opportunity and a risk. It may make some imports less attractive, but it also complicates raw material sourcing and customer negotiations.

The broader result is regionalisation. Buyers are increasingly weighing whether cheaper imported material is worth the compliance, delivery and emissions risk. European producers can benefit if they turn regulation into a trusted supply advantage.

However, they cannot rely on regulation alone. Imports will continue to pressure standard grades and process pipe where price remains decisive. Europe’s defence must therefore come from technical capability, service and qualification depth.

Automotive Decline and Data Centres Redefine Growth Applications

European stainless tube producers also face structural demand change in automotive applications. Exhaust-related stainless tube demand is declining as electric vehicle adoption reduces the long-term need for combustion engine systems.

German tubemaker Schoeller Werk said about 40% of its business is still linked to automotive. Around 95% of that automotive exposure is tied to combustion engine applications.

This creates a clear transition risk. Combustion engine exhaust systems have historically used stainless tube because of heat resistance, corrosion performance and durability. Electric vehicles remove much of that demand.

Industry speakers described this shift as irreversible, even if the speed varies by region. Combustion vehicles may remain relevant for some years, but the structural direction is clear.

Marcegaglia also described the shift away from combustion-engine vehicles as a trend that stainless tube producers must manage. The market cannot assume that traditional automotive exhaust demand will return.

This forces producers to find new growth areas. Data centres emerged as one of the clearest near-term opportunities during the Dusseldorf discussions.

Data centre stainless demand is growing because cooling systems are becoming more important. AI workloads, higher server density and larger hyperscale facilities require more advanced thermal management.

Stainless tubes can be used in cooling circuits, heat exchangers and wider water infrastructure. These applications often require corrosion resistance, reliability and long service life.

Gatti said the strongest opportunity may not only sit in outer water infrastructure. Inner cooling circuits also present growth potential as specifications increasingly exclude carbon steel and favour copper or stainless steel.

Copper’s high price is helping stainless steel compete. In some data centre applications, stainless can win substitution from copper on cost grounds while still meeting performance requirements.

This creates a valuable opening for European producers. Data centres are not only a volume market. They require quality, traceability, reliability and tight specifications, which fit Europe’s competitive strengths.

However, Asian competition remains a threat. If data centre projects are specified to ASTM standards, Asian suppliers may still compete strongly. This means European producers need early involvement in specifications and project qualification.

Other higher-value markets may also support growth. Specialist energy systems, premium process pipe, food processing, water treatment and industrial heat exchangers all require more complex tube products.

The key difference is that these markets reward performance rather than only price. European producers are better positioned when customers value certification, documentation, short lead times, sustainability and technical support.

This is why Europe’s competitive advantage increasingly lies in complexity. Producers cannot win every commodity segment against lower-cost imports. But they can defend and grow in applications where failure risk, qualification standards and technical requirements matter.

The next decade will likely reward producers that invest in advanced materials and difficult applications. This includes higher corrosion resistance, special dimensions, better surface quality, stronger traceability and lower-carbon documentation.

Policy could help if it is implemented carefully. CBAM and safeguards may support regional supply, but they must avoid damaging downstream processors through higher input costs or poorly designed quota structures.

The real test for Europe is execution. Producers must turn sustainability and regulation into commercial value, not only compliance costs. That means proving lower carbon intensity, shorter logistics chains and stronger product reliability.

European stainless tube trade will therefore become more segmented. Commodity and ASTM process pipe will remain import-sensitive. Automotive exhaust demand will decline. Data centres and complex industrial applications will become more important.

For producers, the strategy is clear. Europe must compete where technical standards, certification, sustainability and customer proximity matter most.

The Metalnomist Commentary

European stainless tube producers are being pushed out of low-margin commodity competition and into higher-specification markets. The winners will be companies that convert regulation, traceability and technical complexity into pricing power, especially in data centres, energy systems and premium process pipe.

Australia EU Trade Deal Secures Critical Raw Materials Supply

Australia, EU trade

Australia EU trade deal negotiations have concluded after eight years, giving the EU a new framework to secure stable access to critical raw materials. The agreement targets minerals including lithium, bauxite, manganese, tantalum, nickel, cobalt, copper, and rare earth oxides.

The Australia EU trade deal will cut or remove bilateral tariffs on critical raw materials and value-added mineral products. This gives European manufacturers a more reliable supply route at a time when tariffs, export controls, and geopolitical pressure are reshaping global materials trade.

The agreement also strengthens Australia’s position as a preferred critical minerals partner for Europe. Australia produces around a third of global lithium and remains a major supplier of bauxite, iron ore, zirconium, and rare earth elements.

Critical Minerals Access Becomes Central to EU Trade Policy

The EU is using the Australia EU trade deal to reduce exposure to China-dominated supply chains and rising US tariff risks. The agreement reflects Brussels’ shift from traditional trade liberalisation toward strategic supply chain security.

Critical raw materials are now central to European industrial policy because they support batteries, electric vehicles, renewable energy, defence systems, aerospace, electronics, and advanced manufacturing. Stable access to lithium, nickel, cobalt, manganese, copper, and rare earths will determine how quickly Europe can scale clean-energy manufacturing.

The deal also includes deeper co-operation on critical raw materials, including possible co-financing of key projects. This matters because Europe needs not only raw mineral access, but also investment in processing, refining, and value-added material production.

Australia Gains Strategic Value as Europe Diversifies Supply

Australia stands to gain economically and strategically from the agreement. The deal is expected to add about $7 billion per year to the Australian economy, while European producers could save more than $1.1 billion in tariffs over the next decade.

The timing is important because Europe is rapidly diversifying its strategic trade partnerships. The EU recently moved forward with trade agreements involving Mercosur and India, showing that Brussels is building a wider network of reliable raw material and manufacturing partners.

The Australia agreement still requires approval by a majority of EU member states and consent from the European Parliament before ratification is complete. However, the strategic direction is already clear: Europe wants critical minerals supply from partners with stable governance, developed mining capacity, and lower geopolitical risk.

The Metalnomist Commentary

The Australia EU trade deal shows that critical minerals have moved from procurement strategy to trade architecture. Europe is no longer simply buying raw materials; it is building alliances to secure the minerals, processing capacity, and industrial resilience needed for the energy transition.

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.

EU US Critical Minerals Action Plan Targets Supply Chain Security

US EU

EU US Critical Minerals Action Plan marks a deeper transatlantic effort to secure strategic raw materials as China export controls and global protectionism reshape industrial supply chains. The US and EU have signed the plan to diversify sourcing, strengthen resilience and coordinate responses to mineral supply disruptions.

The EU US Critical Minerals Action Plan is significant because it moves beyond general diplomatic language. It allows both sides to use trade and market tools, including border-adjusted price floors, standards-based markets, subsidies to close price gaps and offtake agreements.

The EU US Critical Minerals Action Plan also includes stockpile cooperation, technical coordination, regulatory alignment and standards for mining, processing and recycling. This shows that Washington and Brussels are now treating critical minerals as industrial security assets, not only commodity inputs.

Price Floors and Offtake Tools Signal Stronger Market Intervention

The plan highlights a major shift in western raw materials policy. The US and EU are preparing to coordinate tools that can make non-China supply more commercially viable.

Border-adjusted price floors could help protect strategic mineral projects from low-cost competition. This matters because many western projects struggle to compete against established Chinese processing chains when prices fall.

Subsidies to address price gaps serve the same purpose. They can help bridge the cost difference between secure, traceable supply and cheaper material from dominant incumbent producers.

Offtake agreements are also central. Long-term purchase commitments can give miners, refiners and recyclers the revenue visibility needed to finance new capacity.

This is especially important for rare earths, gallium, germanium, graphite, lithium, cobalt, nickel, manganese and other strategic materials. Many of these markets are small, volatile or heavily concentrated in processing.

The plan also points to standards-based markets. This could support supply chains where environmental, labour, traceability and security standards become part of pricing.

For suppliers, the message is clear. Western buyers may increasingly pay for origin, compliance and resilience, not only the lowest spot price.

Transatlantic Coordination Raises Pressure on China-Linked Supply Chains

The plan will be implemented by the office of the US trade representative and the European Commission’s Directorate-General for trade and economic security. That structure places critical minerals directly inside trade and economic security policy.

The US has already moved aggressively in critical minerals. It has used the Defense Production Act, supported price floors and offtake agreements, and invested in overseas mineral assets to reduce reliance on China.

The EU has historically been more cautious about direct market intervention. However, its position is changing as supply risks increase and European manufacturers face tighter access to strategic raw materials.

Earlier this month, the European Commission launched a critical raw materials platform to match EU buyers with suppliers and aggregate demand. The new US-EU action plan builds on that direction and gives Europe a broader external coordination channel.

Rapid response mechanisms are also important. Export controls, shipping disruption, sanctions or sudden shortages can quickly affect defence, semiconductors, batteries, magnets, aerospace and clean energy manufacturing.

Stockpile cooperation could provide a temporary buffer. But the larger strategic goal is to build durable supply, processing and recycling capacity across allied economies.

The plan therefore strengthens the policy architecture for western mineral security. It also raises the likelihood that future raw material trade will be shaped by origin rules, price support, industrial standards and government-backed purchasing.

The Metalnomist Commentary

The EU-US plan shows that critical minerals policy is moving from risk awareness to market design. The decisive question is whether price floors, offtakes and subsidies can create real processing capacity before the next supply shock hits.

Brazil Critical Minerals Bill Moves Country Toward Domestic Processing Strategy

Critical Minerals

Brazil critical minerals bill approval by the lower house marks a major step toward turning the country’s mineral reserves into a domestic industrial development strategy. The bill establishes the national policy of critical and strategic minerals and creates incentives for companies to process and transform those materials inside Brazil.

Brazil critical minerals bill measures include a new mineral activity guarantee fund backed by R2bn in federal money. The fund will support projects linked to the production of critical and strategic minerals.

Brazil critical minerals bill incentives also include R5bn in tax credits over five years to encourage processing and transformation. This shows that Brazil does not want to remain only an exporter of raw materials.

The bill will now move to the senate. Mines and energy minister Alexandre Silveira said he will work directly with senators to accelerate approval, framing critical minerals as a matter of economic modernisation and national sovereignty.

Processing Incentives Target Value Creation Inside Brazil

The bill creates the national council for the industrialisation of critical and strategic minerals. The council will decide which minerals qualify as critical and strategic and will update the list every four years.

This structure is important because Brazil has large resource potential but still needs stronger domestic processing capacity. Without refining, separation, transformation and recycling, mineral wealth can leave the country as low-value raw material.

The proposed guarantee fund and tax credits are designed to change that pattern. They will support projects considered strategic under the national policy, with a focus on minerals that can strengthen Brazil’s industrial base.

Congress member Arnaldo Jardim, the bill’s rapporteur, said critical minerals represent a development opportunity for Brazil. He argued that the country should become a major rare earths producer, stimulate recycling through urban mining and make its processing industry more competitive.

That message reflects a broader shift in resource policy. Brazil is trying to position critical minerals as a tool for industrial development, not only export revenue.

Rare earths are especially important. Brazil has significant rare earth potential, and global buyers are searching for alternatives to China-dominated supply chains. If Brazil can move beyond mining into separation and processing, it could become more relevant to magnet, defence, electronics and clean energy markets.

Urban mining also deserves attention. Recycling can strengthen domestic supply, reduce waste and create secondary sources of critical materials from electronics, batteries, industrial scrap and end-of-life equipment.

US Interest Raises Brazil’s Strategic Importance

The bill comes as Brazil and the US are discussing critical minerals more actively. Presidents Luiz Inacio Lula da Silva and Donald Trump are expected to meet this week, and critical minerals are likely to be part of the agenda.

The US has long sought a critical minerals agreement with Brazil. Goias state has already signed a cooperation agreement with the US, although Brazil’s federal government has challenged its legal validity.

That dispute shows how politically sensitive critical minerals have become. Foreign partnerships can bring investment and market access, but the federal government wants to ensure that strategic minerals serve national interests.

Brazil holds about 10% of global critical minerals reserves, according to domestic research and mining institutions. The sector is expected to attract $21.3bn in investment by 2030.

This gives Brazil strong leverage. The country has rare earths, niobium, graphite, nickel, lithium and other minerals that are increasingly important to batteries, magnets, aerospace, electronics and energy transition technologies.

However, reserves alone will not determine Brazil’s role. The country must build processing capacity, permitting efficiency, infrastructure, financing tools and reliable industrial partnerships.

The new policy could help unlock that pathway. If approved by the senate and implemented effectively, it could shift Brazil from a raw material supplier toward a more integrated critical minerals economy.

The Metalnomist Commentary

Brazil is making the right strategic move by linking critical minerals to processing, tax incentives and industrial policy. The real test will be execution: Brazil must convert resource potential into refining, separation, recycling and customer-ready supply before global competitors secure the next wave of investment.

China Gallium Production Expands as Jiayuan Prepares Shandong Trial Plant

Jiayuan New Material

China gallium production is set to expand again as Binzhou Jiayuan New Material prepares to put its 30 t/yr gallium plant in Shandong province into trial operation at the end of April. The facility marks the first phase of a two-stage project designed for total capacity of 60 t/yr.

The new plant is located in Lingang Industry Park in the Zhanhua zone of Binzhou city. Domestic producer Zhuhai Fangyuan holds a 24% stake in Jiayuan, giving the project a link to China’s established gallium production base.

China gallium production has become more strategically important since Beijing introduced strict dual-use export controls on the metal in August 2023. Gallium is a critical feedstock for compound semiconductors, power electronics, radio-frequency devices, optoelectronics and other advanced technologies.

Alumina Integration Strengthens Jiayuan’s Feedstock Position

Jiayuan’s feedstock will come from nearby Binzhou Huihong New Material, a subsidiary of major Chinese alumina producer Shandong Weiqiao. Huihong is located in the same industrial park, giving the gallium project a close raw material supply base.

This matters because gallium is typically recovered as a by-product of alumina production. Alumina refineries can extract gallium from process streams, making alumina scale, process control and recovery technology central to gallium supply growth.

Huihong plans to gradually raise alumina output to 8mn t/yr from the current 4mn t/yr. Gallium production is expected to increase to 120 t/yr accordingly, creating a larger integrated alumina-gallium platform in Shandong.

The project therefore shows how China gallium production is increasingly tied to major alumina producers. Companies with large alumina capacity can add gallium recovery as a higher-value by-product route, especially when prices and strategic demand justify investment.

Export Controls and Semiconductor Demand Drive Capacity Additions

Chinese alumina producers have accelerated gallium capacity investment in recent years after prices surged in 2022. Demand from domestic high-tech sectors and the metal’s strategic role in semiconductor manufacturing have raised the value of integrated gallium recovery.

China’s export controls have further increased the importance of domestic capacity. Gallium is used in gallium arsenide and gallium nitride materials, which support semiconductors, LEDs, lasers, satellite communications, radar systems, chargers and power devices.

Several new Chinese production lines have recently entered the market. Facilities with combined capacity of 140 t/yr came on stream in Guizhou province in the fourth quarter of 2024.

Additional capacity followed in 2025. Vital launched an 80 t/yr facility in Chongqing in the second quarter, while Luoyang Heungkong Wanji started its 60 t/yr smelter and ramped output close to full capacity by September.

More projects are under development. Guizhou Qiya began construction of a 20 t/yr third-phase project in Kaili in September 2025, while Guangxi Xinfa received approval in November 2025 for a 100 t/yr project in Jingxi.

These projects show that China gallium production is expanding across several provinces. However, export licensing still gives Beijing significant control over how much material reaches overseas buyers.

The Metalnomist Commentary

Jiayuan’s Shandong plant reinforces China’s ability to turn alumina scale into strategic gallium supply. For global semiconductor and defense supply chains, the key issue is not only how much gallium China can produce, but how much it will allow to leave the country.