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Yahoo
7 days ago
- Business
- Yahoo
The West Looks to Break China's Grip on Critical Minerals
Western governments have recognized the need to intervene and safeguard their existing critical minerals supply chain from extinction in a market heavily dominated by China. Even more efforts will be needed in the West to establish new manufacturing capacities and ensure that production is at prices higher than those in China. The U.S., Australia, and the EU have made the first steps to ensuring non-Chinese supply of critical minerals and rare earths—from bailouts in Australia to a direct government investment in companies in the U.S. But the West will need much more, in terms of support and investment, to tackle China's dominance. Beijing holds a dominant global position in the supply of critical minerals and rare earths, but its grip on the value chain – minerals processing and magnet production – is even tighter. The U.S., the EU, and Australia will require significant investment and federal incentives to establish a robust minerals refining supply chain at home or in allied countries, enabling the processing of raw materials and challenging China's dominance. This will likely require billions of dollars and years to build processing capacities that rival China's decades-long strategic positioning in mineral refining, its access to materials in Africa, and its cheaper labor and construction costs. Despite major deals and government support in the West for building domestic supply chains, China has raised its market share over the past few years, the International Energy Agency (IEA) warned in its new annual report, Global Critical Minerals Outlook. China dominates refining for 19 of the 20 minerals the agency has analyzed, holding an average market share of around 70%. 'Three-quarters of these minerals have shown greater price volatility than oil, and half have been more volatile than natural gas,' the IEA said, noting that major risk areas include high supply chain concentration, price volatility, and by-product dependency. China is also using its dominant position to restrict global supply through export controls in an increasingly protectionist and polarized world. And the West is considering ways to counter the Chinese grip on the supply chain that's key to the defense, automotive, and clean energy industries. Australia, for example, last week bailed out two struggling smelters ultimately owned by commodity trading giant Trafigura to help them convert into sites capable of producing critical minerals. Australia is also considering establishing price floors for rare earths to get new projects off the ground, Resources Minister Madeleine King told The Australian last week. 'Mechanisms for an appropriate price floor are under active consideration,' King said. In the U.S., rare earths miner and magnet producer MP Materials Corp announced last month it had entered into a transformational public-private partnership with the Department of Defense (DoD) to accelerate the build-out of an end-to-end U.S. rare earth magnet supply chain and reduce foreign dependency. With a multibillion-dollar package of investments and long-term commitments from DoD, MP Materials will construct its second domestic magnet manufacturing facility, the '10X Facility'. For a period of 10 years following the construction of the 10X Facility, DoD has agreed to ensure that 100% of the magnets produced at the 10X Facility will be purchased by defense and commercial customers with shared upside. DoD will also become MP Materials' biggest shareholder with a 15% stake. International partnerships and collaboration are also part of the arsenal to reduce dependence on China. Australia's Lynas Rare Earths, the world's top producer outside China, last month signed a preliminary agreement to collaborate with South Korean permanent magnet manufacturer JS Link to develop a sustainable rare earth permanent magnet value chain in Malaysia. The companies will work on an NdFeB permanent sintered magnet manufacturing facility near the Lynas Malaysia advanced materials plant in Kuantan. Another Australian firm, Arafura Rare Earths, said this week that Export Finance Australia (EFA) has provided a non-binding conditional Letter of Interest (LOI) relating to potential further investment to support Arafura's Nolans project in the Northern Territory. The German government is also appraising the project for potential support and could get both the Australian and German governments on board. The West is taking the first steps toward breaking free from China, but it will take time and a lot of money, including government funds, to build a true critical minerals supply chain. By Tsvetana Paraskova for More Top Reads From this article on Sign in to access your portfolio
Yahoo
01-08-2025
- Business
- Yahoo
Investors Seem Ready To Go All-In on Deep Sea Mining
Back in April, we reported that U.S. President Donald Trump signed a key executive order without much fanfare, aiming to boost the country's deep-sea mining industry as well as enable the stockpiling of deep-sea metals in a bid to counter China's dominance in rare earths and battery minerals supply chains. The order redirected his administration to expedite mining permits under the Deep Seabed Hard Mineral Resources Act and also streamline permit issuance for the U.S. Outer Continental Shelf. The administration is also required to work with U.S. allies to explore ways to share resources in international waters. Proponents of the order have argued that ramping up deep-sea mining would lower the country's reliance on large mining operations on land, often considered an environmental hazard. 'We want the US to get ahead of China in this resource space under the ocean, on the ocean bottom,' a Trump official said during the signing. The Pacific Ocean floor is thought to contain large amounts of polymetallic nodules-- potato-shaped rocks filled with critical minerals including nickel, manganese, copper and other minerals essential in a wide array of industries, including renewable energy, electric vehicles, electronics, defense, and advanced manufacturing. It's estimated that U.S. territorial waters harbour more than 1 billion metric tons of these nodules, and extracting them could boost the country's GDP by $300 billion over 10 years and also create 100,000 any country can engage in mining in its own territorial waters, the United Nations' International Seabed Authority is yet to formalize standards for mining in international waters. However, that has not stopped scores of companies from lining up to mine U.S. waters. Two months ago, California-based deep-sea mining pioneer Impossible Metals requested the U.S. Department of the Interior's Bureau of Ocean Energy Management (BOEM) to initiate a commercial auction for mineral leases in the deep sea off the coast of American Samoa. This request pertains to polymetallic nodules containing critical minerals like cobalt, lithium, and nickel. If approved, this would be the first competitive lease sale BOEM has conducted since 1991. And, investors are licking their chops at the prospects of raking in deep sea mining profits. Shares of Vancouver, Canada-based TMC The Metals Company Inc. (NASDAQ:TMC) surged more than 40% after Trump put pen on paper, with the shares now up 450% over the past 52 weeks. Wall Street remains optimistic that TMC has further room to run: Last month, Wedbush upgraded the deep sea mining company to Outperform with an $11 price target, good for more than 100% upside from the current price. Wedbush's Daniel Ives cited increased confidence in TMC's growth prospects following Trump's executive order in April. Further, Ives pointed out that General Motors (NYSE:GM) and Ford Motor Company (NYSE:F) recently announced plans to shift towards Lithium-Manganese-Rich (LMR) battery technology for their future electric vehicles, moving away from the conventional Lithium Iron Phosphate (LFP) technology. GM plans to start producing LMR batteries in 2028, while Ford is also actively working on integrating LMR into its future vehicle lineup. TMC's polymetallic seafloor nodules feature increased manganese vs. LFP batteries. "Overall, we believe that TMC is well-positioned to be a key player in the critical metal supply chain due to its first-mover advantage in deep sea mining while also receiving significant U.S. support as it looks to reduce its dependency on China in the global supply of critical rare earth minerals," Ives wrote. Other companies eyeing deep-sea mining include Russia's JSC Yuzhmorgeologiya, China Minmetals, Blue Minerals Jamaica and Kiribati's Marawa Research and Exploration. However, making deep-sea mining a commercial reality is bound to be fraught with challenges. First off, developers will need to figure out how to create machines that can operate efficiently at the crazy pressures that exist 5,000 metres or more below the ocean's surface. They will also need to develop new processing systems that can effectively separate the mixed minerals found in polymetallic nodules. However, the experts believe that creating a suitable and effective regulatory environment is likely to be the biggest challenge. A big reason why the International Seabed Authority is yet to create deep-sea mining standards is due to unresolved differences over acceptable levels of various parameters such as dust, noise and other factors by different countries. Opposition by environmental groups has also been a big challenge for the ISA, with several NGOs campaigning strongly against deep-sea mining, saying industrial operations on the ocean floor are likely to lead to irreversible biodiversity loss. Further, the U.S. has not ratified the United Nations Convention on the Law of the Sea (UNCLOS), which includes the International Seabed Authority (ISA). The U.S. has, instead, developed its own domestic regulatory regime for deep-sea mining activities. So far, the ISA remains underfunded and under-capacitated, curtailing its ability to monitor mining sites and respond quickly to environmental crises. Whether or not the organization, as well as various other stakeholders, will finally be able to get their act together and successfully launch an industry that has remained just-around-the-corner for three decades now remains to be seen. By Alex Kimani for More Top Reads From this article on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
27-06-2025
- Business
- Yahoo
US, China agree on deal for tariffs, rare-earth magnets
The U.S. and China have agreed on a trade deal that would reduce tariffs and expedite shipments of rare-earth metals. United States Treasury Secretary Scott Bessent said on Friday that U.S. tariffs on Chinese imports will now start at 30%, while China's duty rate on goods from the U.S. will be at 10%. The 20% fentanyl levy on China will also stay in place. In April, the Trump administration hit Chinese imports with a 145% tariff rate. China retaliated by slapping a 125% tariff on goods imported from the U.S. 'Now our tariffs are at 30% on them, we're at 10%,' Bessent said on Fox Business. 'We're collecting a substantial tariff income.' President Donald Trump announced the agreement with China on Thursday during a news conference that 'We just signed with China yesterday,' without further explanation. China's Commerce Ministry confirmed that both nations have reached a framework for a deal in a statement on Friday. 'China will review and approve export applications for controlled items that meet the required criteria, while the United States will lift a series of restrictive measures previously imposed on China,' the country's Ministry of Commerce said in a statement to China Daily News. U.S. levies on Chinese goods stood at an average of 51.1% for most imports before Thursday's trade deal was announced, while China's duties on American products were at 32.6%, according to the Peterson Institute for International Economics. Bessent also said China has agreed to remove its restrictions on exports of rare-earth metals. On April 4, China began restricting exports of rare-earth magnets to the U.S., which are used in high-tech products such as computer chips and electric vehicle batteries. 'We have an agreement with them that will make magnets flow to everyone who had received them before on a regular basis,' Bessent said. The post US, China agree on deal for tariffs, rare-earth magnets appeared first on FreightWaves. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
26-06-2025
- Business
- Yahoo
Siemens Gamesa, Chinese magnet suppliers discuss European production, COO says
By Christoph Steitz ERLANGEN, Germany (Reuters) -Wind turbine maker Siemens Gamesa is in talks with Chinese suppliers of rare earth permanent magnets about the possibility of bringing production to Europe, in a bid to cut the region's reliance on imports after curbs on supplies from China. Delays in Chinese rare earth export permits have caused European car makers and their suppliers to scramble for alternatives in a market that is dominated by the world's No. 2 economy, threatening production stops across the continent. The wind sector also depends on rare earths processed in China, most notably neodymium, which is used in permanent magnets - a key turbine component - but currently not affected by export permit delays. A division of Siemens Energy, Siemens Gamesa, the world's biggest maker of offshore wind turbines, has already taken steps to diversify away from China, including a deal earlier this week under which it will get permanent magnets from Japan's TDK. "Regarding the issue of Chinese magnet dependence it's also about the following question: Would I rather spend a little more money in Europe to become resilient? Or are there ways to incentivise suppliers from outside Europe to build a footprint in Europe?," Carina Brehm, Siemens Gamesa's chief operating officer said at a company event. "In general, we are also talking to Chinese suppliers about the possibility of building factories in Europe. If investments in sustainable structures are made here as part of fair competition, this is definitely an option." While Brehm did not identify any of the suppliers, some of the biggest include JL MAG Rare-Earth, Ningbo Yunsheng and Baotou Tianhe Magnetics Technology. Siemens Gamesa, which is trying to emerge from a quality crisis that has caused major losses in recent years, was working hard on its goal to break even in 2026, Brehm said. Asked about whether the onshore wind division, which was the source of the issues, was up for sale, Siemens Energy's finance chief Maria Ferraro said the portfolio was staying together with the expectation that double-digit margins would be generated in the future. "The team is rallying around ensuring the stability in that business. It's not easy. But what's important is that it's performing in line with our expectations," Ferraro said. Sign in to access your portfolio
Daily Mail
20-06-2025
- Business
- Daily Mail
SMALL CAP MOVERS: Robot revolution bodes well for these three miners
We are on the cusp of a robot revolution. And that bodes well for an overlooked trio of junior members of the mining exploration community. Let me explain. As robotics and automation gear up to double in scale by 2030, demand for rare earth elements, like neodymium and dysprosium used in electric motors, is soaring. China currently controls around 70 per cent of the global rare earth supply, creating a geopolitical bottleneck that could disrupt the robotics revolution. UBS earlier this week warned of a 'materials pinch point' as the world's appetite for automation and electrification grows, making miners and processors of these metals increasingly important. It forecasts the global stock of industrial robots will nearly double to almost six million units by 2030, driven by falling costs, AI advances and labour shortages. Rainbow Rare Earths, Harvest Minerals and Altona Rare Earths are among the UK companies quietly emerging as key players in the race to supply critical materials for the new industrial age. While Rainbow and Altona continue to trade under the radar, it was a different story for Harvest, which skyrocketed 60 per cent this week. This came after it reported more positive assay results from its rare earth exploration programme in Brazil and confirmed plans to accelerate drilling activity. The AIM-listed mine developer said new tests on 36 historical samples from its Arapuá project, in Brazil, showed total rare earth oxide (TREO) concentrations ranging from 2,110 to 2,657 parts per million. The samples also returned high titanium dioxide grades of up to 15.42 per cent, confirming mineralisation in a rock type known as 'Bone'. The other two are making similar headway, which is yet to be rewarded. So, watch this space. Now, turning to the wider market, the AIM All-Share was almost static at 761.13 as mounting tensions between Israel and Iran hit sentiment. The performance of the small-cap index mirrored that of the FTSE 100, which was also moribund. It was a good week if you were looking to raise funds, particularly in the Bitcoin treasury space. The stand-out was The Smarter Web Company, an Aquis-listed venture which came to the market with little fanfare in April as a provider of web services with ambitions in cryptocurrencies. Those ambitions have been realised. Not only did SMC raise just under £30million in a massively oversubscribed City investment round, it also struck a deal that could see it access a further £80-odd million. Smaller aspirants used interest in the sector to bolster their Bitcoin buying power. Vinanz raised £3.7million and Helium Ventures raked in £4million as did Coinsilium. Usually, in the wake of chunky new share issues, stocks retrench. Not so with the quartet mentioned above. Vinanz was the comparative 'laggard' with a 46 per cent gain, while the others saw triple-digit advances. Onto the fallers. Down 41 per cent, the week's biggest casualty was Revolution Beauty, which tanked after Mike Ashley's Fraser's Group pulled out of the running to acquire the business. Year-to-date, the stock has tumbled 72 per cent amid accounting issues and boardroom disputes. It launched a formal sale process at the end of last month after receiving a preliminary takeover approach from an unnamed company. It was also a week to forget for Litigation Capital, a fund set to back high-payout legal cases. The shares fell 35 per cent after it announced a court defeat in one of its funded cases and flagged a sharp slowdown in investment returns in the second half of the financial year. After a sharp rise in the stock price it was back to earth with a bump for investors in Karelian, which issued stock equivalent to 12.5 per cent of its share base to bring in a paltry £185,000. The price dropped 32 per cent. Still, those invested a month ago are still sitting on a 48 per cent gain. Finally, ACG Metals is quietly making progress, although the market has been slow to respond. Giving investors a nudge, Canaccord Genuity has launched coverage with a 'buy' rating and an 830p price target, a 53 per cent premium to the current share price. The key to achieving this valuation is the shift from gold to copper at its flagship Gediktepe project in Turkey. The change, scheduled for 2026, will see ACG move from its current gold oxide production to a copper sulphide operation. Canaccord describes a 'smooth transition at Gediktepe' as key to the investment case. For 2025, ACG has guided for 30,000–33,000 ounces of gold equivalent at all-in sustaining costs (AISC) of around US$1,150 per ounce. Canaccord is slightly more optimistic on output and believes cost performance could improve, particularly with a strong end to the year. Although 2026 is forecast as a lower-margin year due to the transition, Canaccord expects robust cash flow to follow as copper production ramps up, with net debt peaking next year before rapid deleveraging. With prices of the red metal strong and multiple 'de-risking' milestones ahead, Canaccord sees ACG as well placed for a re-rating if it can deliver on execution.
