MINEX Forum

Tag: Critical raw materials

  • EU Clamps Down on China Trade Imbalance Despite Rare Earth Breakthrough

    EU Clamps Down on China Trade Imbalance Despite Rare Earth Breakthrough

    The EU, after a one-day summit in Beijing, struck a tentative deal with China to ease export restrictions on crucial rare earths. However, the bloc remains resolute in its demand for a significant rebalancing of trade relations, amidst lingering tensions over industrial overcapacity and market access.

    Trade Concerns Remain Despite Rare Earth Deal:

    • The EU welcomed China’s rapid-fire approval of rare earth export licenses and a new oversight system for supply chain issues, addressing concerns triggered by Beijing’s earlier restrictions.
    • However, EU leaders emphasized the need for further progress to tackle the €300 billion trade deficit with China in 2024, exceeding the bloc’s acceptance of “fair competition” and calling for greater market access in China for European businesses.

    Key Points of Contention:

    • Market Access: The EU insists on reciprocal market access for its companies, similar to the access enjoyed by Chinese firms in Europe, highlighting persistent discrepancies in access and treatment.
    • Industrial Overcapacity: Brussels remains critical of China’s use of subsidies to fuel domestic industries, creating artificial competition and cutting into European firms’ market share.
    • Ukraine War: The EU criticized China’s support for Russia, accusing it of enabling the ongoing conflict, despite China’s denial.

    Impact of Recent Trade Disputes:

    • The recent trade dispute over electric vehicle tariffs was exemplified by the EU’s imposition of duties on Chinese-made EV imports, followed by retaliatory moves from Beijing targeting EU agricultural products.

    Looking Forward:

    • While the summit yielded progress on rare earths, fundamental disagreements persist regarding trade imbalance, market access, industrial practices, and China’s role in the Russia-Ukraine war.
    • The EU warned that failure to address these issues could compel it to reconsider its openness to Chinese trade and investment.

    Overall Tone:

    The summit signals a mixed bag for EU-China relations. While the rare earth accord offers a glimmer of hope, deep-rooted trade concerns and political disagreements suggest a more complex and potentially volatile future.

  • Vulcan Secures €104 Million in German State Grants for Clean Lithium Production

    Vulcan Secures €104 Million in German State Grants for Clean Lithium Production

    German-Australian start-up Vulcan Energy Resources has been awarded €104 million in public funding to advance its clean lithium production project in Germany, the company announced on Tuesday. The funding comes from the federal government and the states of Rhineland-Palatinate and Hesse, and is part of Berlin’s broader strategy to boost electric vehicle (EV) manufacturing and reduce dependency on foreign raw material imports.

    The grants will support Vulcan’s €690 million investment in a geothermal-powered lithium extraction and refining facility. The project includes a plant in Landau, where lithium chloride will be extracted from geothermal brines, and a conversion plant near Frankfurt to produce lithium hydroxide — a vital input for EV battery production.

    The company aims to commission its first large-scale industrial plant by the end of 2026, with a projected annual output of 24,000 tonnes of lithium hydroxide. This volume would be sufficient to power approximately 500,000 EVs per year, according to Vulcan.

    Germany currently relies heavily on lithium imports from countries such as Australia, Argentina, Chile, and China. However, a recent study by the Federal Institute for Geosciences and Natural Resources and the Fraunhofer IEG suggests the country has enough lithium reserves to meet domestic demand for decades.

    Germany’s lithium demand is expected to hit 170,000 tonnes annually by 2030, driven by a sharp rise in battery production needs. Economy Ministry State Secretary Stefan Rouenhoff emphasized the importance of the project, stating: “In times of increasing geopolitical challenges, it is necessary to intensify efforts to open up alternative sources of raw materials for our domestic economy.”

    The €104 million in grants will begin disbursement on October 1, spread over a 36-month period. The federal states of Rhineland-Palatinate and Hesse will each co-finance approximately 30% of the total support package.

  • EU Rearmament Plan Faces Hidden Achilles’ Heel: Critical Raw Materials Dependence

    EU Rearmament Plan Faces Hidden Achilles’ Heel: Critical Raw Materials Dependence

    As Europe escalates its defence preparedness in response to mounting geopolitical tensions, a critical but often overlooked vulnerability threatens to undermine its rearmament efforts: an overwhelming dependence on foreign supplies of critical raw materials (CRMs).

    From aluminium to tantalum, modern military hardware — including main battle tanks, aircraft and electronics — relies heavily on minerals that are scarce or nearly absent in Europe. The European Commission admits that the bloc currently produces just 1% to 5% of its CRM needs, while demand for materials like lithium and rare earths is expected to surge exponentially by 2050.

    A new report by the International Institute for Strategic Studies warns that many of the EU’s potential adversaries — including China, Russia, and Turkey — dominate global supply chains for these vital resources. From 2016 to 2020, China and the Democratic Republic of the Congo led global production of 17 CRMs listed by the EU as essential for civilian and defence technologies.

    Europe’s Critical Raw Materials Act, introduced in 2024, sets ambitious goals to localise 10% of CRM extraction, 40% of processing, and 25% of recycling by 2030. It also aims to ensure no more than 65% of any one material comes from a single country. But industry experts and analysts warn that implementation is lagging far behind targets.

    Rebecca Lucas of RAND Europe calls for deeper diversification and international collaboration, while the Aerospace, Security & Defence Industries Association of Europe (ASD) stresses that access to CRMs is now “indispensable” to Europe’s defence strategy.

    Stockpiling, while increasingly adopted at the national level — notably in France, Spain, and Germany — remains logistically and politically complicated at the EU level. Some materials require strict storage conditions and sensitive handling, complicating bloc-wide coordination.

    The EU is also turning to “trusted” partners like Australia, Canada, and South American countries to fill gaps in supply, according to EPP advisor Gregor Nägeli. But without significant progress in domestic production, recycling, and substitution technologies, Europe’s green and defence ambitions risk being hamstrung by a strategic dependency that rivals — and perhaps exceeds — its former reliance on Russian energy.

  • Savannah Resources Raises £4.24M to Advance Barroso Lithium Project in Portugal

    Savannah Resources Raises £4.24M to Advance Barroso Lithium Project in Portugal

    Savannah Resources Plc (LON:SAVS, AIM:SAV) has successfully raised £4.24 million ($5.81 million) to fund its flagship Barroso Lithium Project in northern Portugal, the company announced on Friday. The fundraising was completed through an accelerated bookbuild and subscription, with shares priced at 3.5 pence each.

    The raise included £2.22 million via a placement of over 63 million shares and a minimum of £2.02 million from the subscription of nearly 58 million shares. Savannah’s retail offer remains open until July 1, with final figures to be announced thereafter.

    Key institutional investors participated in the raise, including AMG Lithium B.V., Al Marjan Limited, Grupo Lusiaves SGPS, and Mário Nuno dos Santos Ferreira, as well as company directors Rick Anthon and Dale Ferguson, who subscribed for a combined 1,000,002 shares.

    The new shares are set to begin trading on AIM on July 2.

    CEO Emanuel Proença emphasized that the proceeds will bolster Savannah’s financial position and support continued development of the Barroso Lithium Project, designated a Strategic Project by the European Commission under the Critical Raw Materials Act in March 2025.

    According to the company, Barroso is Europe’s largest defined battery-grade spodumene lithium deposit and is forecasted to supply enough lithium for around 500,000 EV battery packs annually once in production.

    The bookbuilding was led by SP Angel Corporate Finance LLP, with Canaccord Genuity Limited, Caixa-Banco de Investimento, S.A, and Alantra Equities, SV, S.A acting as joint bookrunners.

  • EU Urged to Prioritise ESG in Central Asia’s Raw Materials Push

    EU Urged to Prioritise ESG in Central Asia’s Raw Materials Push

    The EU must prioritize Environmental, Social, and Governance (ESG) principles in its dealings with Central Asia to secure its access to crucial raw materials, commentators warn.

    The bloc arrived in Samarkand this April with a hefty €13.2 billion Global Gateway package, signaling a desire to move beyond merely buying raw materials from the region. A significant portion, €2.5 billion, is earmarked for new mining and processing projects in Kazakhstan, Uzbekistan, and beyond. This drive is born out of necessity: the EU still relies entirely on China for its heavy rare-earth imports and faces the growing risk of vulnerability.

    While geographically late to the game, Europe has a unique advantage: a reputation for robust ESG practices. Local executives cite European partners as “a sign of quality” due to their unwavering adherence to these standards, something often lacking in Chinese or Russian counterparts. However, this edge relies on Brussels consistently embedding ESG into every euro invested. This means robust monitoring and auditing of remediation plans, transparent royalty structures, and genuine upfront consultation with local communities.

    The EU’s Critical Raw Materials Act (CRMA) sets ambitious goals: attaining 10 percent mining, 40 percent processing, and 25 percent recycling of Europe’s annual CRM demand domestically or in trusted partner states by 2030.

    Realising these goals in Central Asia necessitates investment in sustainable technologies. This includes financing water-efficient processing plants, closed-loop waste systems, and solar-powered smelters, rather than simply opening more exploitative mines.

    The EU’s efforts are beginning to take shape, with the spotlight falling on graphite. Kazakhstan’s Sarytogan deposit has been placed on the EU Commission’s list of “strategic projects” eligible for expedited permits and loan guarantees under the CRMA. Meanwhile, the European Bank for Reconstruction and Development has taken a significant stake in the mine operator, marking a direct investment in the region’s CRM sector. The EU is now actively seeking downstream investors to refine indigenous graphite into anode-grade product, capturing added value that historically flowed to Chinese refiners.

    Lithium development is following a similar trajectory. A partnership between HMS Bergbau and Kazakhstan’s Creada Corporation aims to unlock the potential of Kazakh spodumene through extraction, processing, and refining into battery-ready lithium hydroxide. This would be a direct response to the EU’s new battery-passport regulations, which require materials of a certain purity.

    However, Europe faces a formidable competitor: China. The PRC Mineral Resources Law mandates environmental remediation planning before mining commences, setting a new baseline for responsible resource extraction. While welcomed, the application details remain vague, lacking guarantees on local community engagement and enforcement mechanisms, potentially creating loopholes for exploitation.

    Adding to the pressure, Chinese capital is expanding downstream. East Hope Group’s landmark $12 billion investment in Kazakh non-ferrous metals signifies a vertical integration approach—from mining and smelting to fabrication and renewable power generation. This $12 billion vertical integration project in Kazakhstan showcases China’s willingness to build a fully controllable supply chain.

    Europe must act strategically to counter these challenges.

    Firstly, financial aid should be contingent on stringent ESG benchmarks. EU financing must go hand-in-hand with clear, enforceable standards – ISO-compliant tailings dams, methane monitoring, gender-balanced workforce plans, and robust penalties for non-compliance.

    Secondly, the EU should focus on fostering value-adding industries beyond mining. This means investing in processing plants and recycling facilities, not just mines. By creating domestic processing hubs for cathode powders or rare-earth magnets, the CRMA’s 40 percent processing target can be achieved, generating jobs, technology transfer, and increased tax revenue for beneficiary countries.

    Finally, the EU must simplify visa requirements for Central Asian technical personnel. A targeted visa-facilitation agreement could allow them to train in Europe and return, strengthening the region’s skilled workforce.

    Securing a stable and sustainable supply of raw materials is a critical challenge for the EU. While China’s economic clout is undeniable, Europe has the opportunity to win this race by leveraging its commitment to ESG principles and building a truly sustainable, transparent, and trust-based partnership with Central Asia.

    Time is of the essence. The next 18 months, before China’s revised mining law takes full effect and East Hope’s megaproject begins construction, provide a crucial window for the EU to demonstrate its commitment to ESG beyond rhetoric. The stakes are high, as the fate of Europe’s essential raw materials supply hangs in the balance.

  • Rio Tinto Reevaluates Cost of Serbian Lithium Project Amid EU Backing and Local Opposition

    Rio Tinto Reevaluates Cost of Serbian Lithium Project Amid EU Backing and Local Opposition

    Rio Tinto is revising the estimated capital cost of its contentious Jadar lithium project in Serbia after it was designated one of the European Commission’s 13 strategic critical materials projects under the Critical Raw Materials Act (CRMA). Chad Blewitt, managing director of the Jadar mine, confirmed the update in an interview with Reuters on Wednesday.

    The project, initially valued at over €2.55 billion ($2.91 billion), is being recalculated to reflect EU environmental and human rights standards tied to its strategic status. “That will be reflected in the final capital cost,” Blewitt said, noting that no revised figure or timeline would be shared until the company secures a field exploitation licence.

    The Jadar project was halted in 2022 after mass protests over environmental concerns led the Serbian government to revoke Rio Tinto’s exploration permits. However, the Constitutional Court reinstated the licences in 2023, allowing the Anglo-Australian miner to resume planning.

    If realized, the mine could meet 90% of Europe’s current lithium demand, playing a central role in the continent’s green energy and digital transformation strategies. Despite this, local opposition remains strong, with activists threatening fresh protests and transport blockades if construction proceeds.

    “Whatever happens next will involve multiple stages of scrutiny and public consultation,” Blewitt emphasized, adding that the project could position Serbia as a pivotal supplier in Europe’s lithium supply chain.

    Rio Tinto is one of the few global mining giants heavily investing in lithium amid a market downturn. Its $6.7 billion acquisition of U.S.-based Arcadium Lithium and investments exceeding $1 billion in Chile signal a long-term bet on EV battery metals. While current lithium prices are depressed due to supply gluts, demand forecasts remain optimistic heading into the next decade.

  • EU Adds 13 Global Projects to Strategic List Under Critical Raw Materials Act

    EU Adds 13 Global Projects to Strategic List Under Critical Raw Materials Act

    The European Commission has expanded its list of strategic initiatives under the Critical Raw Materials Act (CRMA) by designating 13 new international projects aimed at diversifying and securing Europe’s long-term supply of essential raw materials. The newly added projects—located in Canada, Greenland, the UK, Norway, Kazakhstan, Serbia, Ukraine, Brazil, Zambia, Madagascar, Malawi, South Africa, and New Caledonia—complement the 47 strategic projects within the EU announced in March, bringing the total to 60 priority projects.

    The Commission’s focus lies heavily on critical battery materials, with 10 of the new projects targeting lithium, nickel, cobalt, manganese, and graphite. Two others center on rare earth elements (REEs), including Frontier Rare Earths’ Zandkopsdrift project in South Africa and Mkango Resources’ Songwe Hill project in Malawi, which will supply key REEs like neodymium, praseodymium, dysprosium, and terbium.

    Mkango’s Songwe Hill is paired with its Pulawy separation plant in Poland, forming a vertically integrated supply chain now backed by the EU. Together, the operations will produce 1,953 tonnes/year of Nd/Pr oxides and 56 tonnes/year of Dy/Tb oxides in the first five years of full production, with both projects enjoying coordinated EU-level support.

    In Zambia, Kobaloni Energy received strategic status for its cobalt refinery project—Africa’s first—viewed as critical for establishing a secure and traceable battery-grade cobalt supply. CEO Johnny Velloza described the EU endorsement as a major milestone toward accelerating development.

    GreenRoc Strategic Materials’ Amitsoq graphite project in Greenland also gained strategic designation, becoming the first and only such project in the country. The EU’s Commissioner for Industrial Strategy, Stéphane Séjourné, is expected to visit the site this year, underlining its growing strategic weight.

    The 13 new international projects are estimated to require a total of €5.5 billion in capital investment, with the Commission committing to deeper cooperation with host nations—particularly those with existing raw materials partnerships.

    The CRMA, which came into force in May 2024, provides a legislative backbone for the EU’s ambition to reduce critical material dependencies and accelerate projects essential to the green and digital transitions.

  • U.S. and Ukraine Near Landmark Deal on Mineral Access and Reconstruction Fund

    U.S. and Ukraine Near Landmark Deal on Mineral Access and Reconstruction Fund

    The United States and Ukraine are poised to finalize a landmark strategic agreement that would grant Washington preferential access to future Ukrainian mineral and energy projects in exchange for continued military aid and investment, according to multiple media reports.

    A draft of the agreement, obtained by Reuters, outlines the creation of a joint U.S.-Ukrainian reconstruction fund. This fund would receive 50% of profits and royalties from newly issued resource permits. While the U.S. will not directly own Ukrainian assets or infrastructure, the deal secures American or U.S.-designated entities first-in-line access to new mineral and energy development licenses.

    The proposed agreement exempts existing contracts and drops earlier provisions that would have allowed U.S. influence over Ukraine’s gas infrastructure.

    Bloomberg reported that the deal covers a wide range of critical resources including graphite, aluminum, oil, and natural gas. With Ukraine holding an estimated $15 trillion in mineral reserves—among the largest in Europe—the agreement positions the country as a key supplier of strategic raw materials.

    Ukrainian Prime Minister Denys Shmyhal described the plan as a “strategic investment partnership” that will help rebuild Ukraine and secure its long-term development. Crucially, only future U.S. military aid will be counted as contributions to the fund—previous military support, amounting to tens of billions of dollars, will not be monetized under this framework.

    The deal requires ratification by Ukraine’s parliament. Economy Minister Yulia Svyrydenko is currently in Washington to finalize negotiations.

    The agreement aligns with U.S. President Donald Trump’s broader policy goals, including securing critical resources and promoting a negotiated ceasefire with Russia. Although peace talks remain stalled, recent backchannel diplomacy—including a private meeting between Presidents Trump and Zelensky at the Vatican—suggests renewed communication.

  • EU Grants $36 Million to Advance Cinovec Lithium Project in Czech Republic

    EU Grants $36 Million to Advance Cinovec Lithium Project in Czech Republic

    The European Union has approved a $36 million grant to support the development of the Cinovec lithium project in the Czech Republic, marking a significant step in the bloc’s push to secure domestic supplies of critical raw materials.

    The funding, sourced from the EU’s Just Transition Fund, will be administered by the Czech Ministry of Environment and is conditional on the submission and approval of the project’s environmental impact assessment (EIA) by the end of 2025.

    European Metals Holdings (EMH), which holds a majority stake in the project, stated that the grant will accelerate key stages of development and may enable increased lithium output through improved economies of scale. EMH Executive Chairman Keith Coughlan noted that the funding would allow the company to “fast-track a number of critical path items” on the road to construction.

    Located in the Krusné Hory Mountains near the German border, Cinovec is the largest known hard rock lithium deposit in the EU. The project was designated as a Strategic Project under the EU Critical Raw Materials Act in March, and has also been recognized as a Strategic Deposit by the Czech government—two distinctions that are expected to streamline the permitting process and attract further institutional support.

    EMH has engaged engineering firm DRA Global Limited to complete a definitive feasibility study by the end of 2025. If environmental approval is secured, construction permits could follow within two years.

    In its latest financial update, EMH reported a cash balance of A$4.3 million and no debt as of the end of the first quarter. With Cinovec central to Europe’s ambitions for EV battery production and renewable energy storage, the EU’s financial backing is seen as a strategic investment in securing long-term raw material independence.

  • EU Opens Industry Consultation on Critical Raw Materials Cooperation Amid Supply Chain Pressures

    EU Opens Industry Consultation on Critical Raw Materials Cooperation Amid Supply Chain Pressures

    As the European Union works to shore up the security and sustainability of its raw material supply chains, European Commission Executive Vice-President Teresa Ribera has launched a public consultation aimed at promoting cooperation among industry players under EU competition rules.

    The move reflects Ribera’s dual mandate as Commissioner for a Clean, Just and Competitive Transition: guiding the bloc’s competition policy through 2029 while co-leading the Clean Industrial Deal, a pillar of the EU’s green and industrial transformation. According to her 2024 Mission Letter, Ribera must “modernise the EU’s competition policy” to enable innovation, resilience, and sustainability in an era marked by geopolitical tensions and unfair subsidy-driven competition.

    Announcing the consultation, Ribera invited stakeholders in extraction, processing, and recycling to identify barriers and opportunities for collaboration across the raw materials value chain. “Together, we can build sustainable supply chains and transform challenges into opportunities for prosperity, innovation and resilience,” she stated.

    The consultation comes as companies struggle to navigate legal uncertainty around cooperation. While the EU’s 2023 Horizontal Guidelines offer some room for sustainability agreements, they caution that even modest cooperation—such as setting a joint purchase price for recyclable phones—can breach antitrust rules. Meanwhile, the 2022 Vertical Guidelines do little to clarify how sustainability considerations might enable cooperation further down the supply chain.

    The legal ambiguity stands in contrast to growing EU policy imperatives. The Draghi Report on European Competitiveness (2024) urges the Commission to ease legal pathways for joint procurement and collaborative production efforts in critical raw materials. Likewise, the Commission’s Clean Industrial Deal communication commits to providing companies with tailored antitrust guidance aligned with EU economic and security priorities.

    While the EU’s 2024 Critical Raw Materials Act (CRMA) already outlines strategic public-sector projects to diversify sourcing, the CRMA stops short of addressing the private sector’s role in joint action. In March 2025, the Commission selected 25 Strategic Projects across 14 critical materials—including lithium, cobalt, nickel, graphite, and tungsten—but implementation rests largely with national governments and non-EU partners.

    Ribera’s new consultation, therefore, fills a key policy gap. The Commission is expected to initially focus on the 14 raw materials prioritized under the CRMA, particularly those essential to sectors like renewables, digital, aerospace and defence. Based on the feedback, the Commission will consider whether to issue new competition guidance—possibly by 2026—clarifying when and how companies may work together to strengthen critical supply chains without violating EU antitrust law.