MINEX Forum

Tag: lithium

  • Trump Suggests Ukraine Pay US Aid with Rare Earth Minerals

    Trump Suggests Ukraine Pay US Aid with Rare Earth Minerals

    President Donald Trump proposed on Monday that Ukraine compensate the United States for its substantial financial support in the ongoing conflict with Russia by supplying rare earth minerals, a critical resource for advanced technologies.

    Speaking to reporters at the White House, Trump emphasized the potential for an “equalisation” deal, referencing the nearly $300 billion in aid the United States has provided to Ukraine. “We’re telling Ukraine they have very valuable rare earths,” Trump stated. “We’re looking to do a deal with Ukraine where they’re going to secure what we’re giving them with their rare earths and other things.”

    The proposal highlights the strategic importance of rare earth minerals, a group of 17 metals essential for manufacturing electronics, electric vehicles, and other high-tech products. These minerals are crucial for power generation and motion technologies, with no known substitutes.

    While Trump did not specify exactly which minerals he was referencing, Ukraine does possess significant deposits of uranium, lithium, and titanium. However, the country is not considered a top-five global producer of these resources.

    The United States currently has limited rare earth mineral production, with only one operating mine and minimal processing capacity. In contrast, China dominates the global market for these critical minerals.

    The US Geological Survey identifies 50 minerals as critical for the country’s economic and national defense interests, including various rare earths, nickel, and lithium.

    The feasibility and potential diplomatic implications of Trump’s proposed mineral-for-aid exchange remain unclear, and further details have not been provided.

  • Ukraine: A Potential Key Player in the Global Critical Raw Materials Race?

    Ukraine: A Potential Key Player in the Global Critical Raw Materials Race?

    In a recent statement, U.S. Secretary of State Marco Rubio provided a clear outlook on the future of American policy regarding critical raw materials. As global supply chains for these materials continue to shift, Ukraine’s vast reserves of key minerals could play a pivotal role in reshaping the global balance of power, particularly in the ongoing confrontation between the U.S. and China.

    Rubio highlighted several critical materials essential for advanced technology, renewable energy, and national security, including neodymium, dysprosium, lithium, cobalt, nickel, and titanium. Remarkably, Ukraine is home to abundant reserves of these very materials—and more. With its substantial deposits of germanium and gallium, Ukraine is positioned to be a critical player in the global supply of strategic resources.

    A Treasure Trove of Critical Materials

    • Titanium Ore (Ilmenite): Ukraine ranks 11th in the world for ilmenite reserves, found in the Irshanske, Byrzulivske, and Malyshevske deposits across the Zhytomyr, Kirovohrad, and Dnipropetrovsk regions. Titanium is vital for aerospace, defense, and high-tech manufacturing.
    • Lithium: As a key component in batteries, particularly for electric vehicles and renewable energy storage, Ukraine holds 1% of the world’s lithium reserves—equivalent to 30% of Europe’s supply. Major deposits can be found in Polokhivske (Kirovohrad region) and Balka Kruta (Zaporizhzhia region). The strategic importance of lithium was recently highlighted by China’s attempts to use the resource as leverage in international relations.
    • Germanium and Gallium: Crucial for electronics and telecommunications, these materials are abundant in Ukraine’s coal and lignite deposits in the Donetsk and Lviv-Volyn basins. Before the full-scale war, Ukraine was the world’s third-largest exporter of germanium, although exports have been halted due to the ongoing conflict. Ukraine’s reserves of these rare metals remain a critical asset for global tech industries.
    • Rare Earth Elements (Neodymium and Dysprosium): Located in the Zhytomyr region, these elements are indispensable in the production of magnets for electric vehicles, wind turbines, and high-tech equipment.
    • Nickel and Cobalt: Essential for battery production, Ukraine’s nickel and cobalt reserves are also noteworthy, found in deposits like Devladivske (Dnipropetrovsk region), Lypovenkivske (Kirovohrad region), and Dereniukhivske (Mykolaiv region). While the reserves are smaller compared to other countries, they still contribute to Ukraine’s strategic importance.
    • Manganese and Iron: Ukraine is a major global player in manganese and iron ore production, with significant deposits in the Nikopol Manganese Basin and the Kryvyi Rih Iron Ore Deposit. These resources are fundamental to the global steel and metallurgy industries.

    Ukraine’s Growing Role in Global Supply Chains

    As the global supply chain for critical raw materials becomes increasingly volatile, especially with rising tensions between the U.S. and China, Ukraine has the potential to become a key partner for the U.S. in securing access to these vital resources. With its diverse array of minerals and metals, the country offers not only essential raw materials but also strategic geopolitical leverage in a rapidly changing world order.

    The country’s natural resources, coupled with its strategic location in Europe, make it a valuable partner for countries looking to diversify their supply chains and reduce reliance on China.

    By prioritising partnerships with the U.S. and other nations, Ukraine can play a pivotal role in shaping the future of critical materials and ensure its place as a key player in the global economy.

    The Road Ahead

    The ongoing geopolitical shifts present an opportunity for Ukraine to position itself as a leading supplier of critical materials. With strategic investments in its mining and extraction sectors, Ukraine can not only boost its economy but also secure its place in the new global order. Now more than ever, the world needs Ukraine’s resources, and Ukraine is ready to take center stage.

  • Kazakhstan Commits to Expanding Mining Industry and Attracting Investment

    Kazakhstan Commits to Expanding Mining Industry and Attracting Investment

    At the annual meeting with his Government on 28 January 2025 Kazakhstan’s President Kasym-Jomart Tokayev has outlined the country’s commitment to strengthening its mining sector, with a particular focus on rare and rare-earth metals, including lithium. The global demand for these resources is on the rise, and Tokayev emphasised that Kazakhstan must seize this opportunity by attracting both foreign investment and advanced technologies.

    “Our country has great potential for the extraction and processing of rare and rare-earth metals,” said Tokayev. “The growing global demand for lithium presents a significant opportunity, and we must position ourselves to capitalise on this trend.”

    Kazakhstan has already seen the arrival of major foreign companies engaged in geological exploration. Additionally, a unified platform has been launched to facilitate the transparent and efficient distribution of subsoil use rights, which will further streamline and modernise the mining industry. President Tokayev stressed that the legal framework for this platform should be fully established by the end of the current parliamentary session.

    “Reforms in the area of subsoil use must continue, no matter the circumstances,” he continued. “This is a fundamental position that the government must steadfastly adhere to.”

    With its vast mineral resources, Kazakhstan is positioning itself as a key player in the global mining market, and these efforts to modernize and open up the industry aim to attract both international and domestic investors. The government’s commitment to these reforms underscores its focus on creating a more efficient, transparent, and competitive mining sector in the years to come.

  • Transforming Raw Materials into Strategic Strength: EIT Raw Materials Advocates for Bold Action in FP10

    Transforming Raw Materials into Strategic Strength: EIT Raw Materials Advocates for Bold Action in FP10

    Berlin, Germany – EIT RawMaterials, a leading knowledge and innovation community, has issued a compelling call for Europe to transform its raw materials sector into a cornerstone of strategic strength. The organisation has outlined key recommendations for the upcoming Framework Programme 10 (FP10), urging the European Union to invest €4 billion to secure its raw materials future.

    The Challenge: Dependency on Imports

    Europe’s heavy reliance on imported critical and strategic raw materials (CRMs and SRMs) poses significant risks to its green and digital transformation goals. With nearly 100% dependence on external sources for key materials like lithium, magnesium, and rare earth elements, the EU is vulnerable to global supply chain disruptions.

    The Solution: Innovation and Resilience

    EIT RawMaterials proposes a multifaceted strategy to reduce dependency and build resilience:

    • Domestic Production: Increase mining to supply 10% of Europe’s CRM needs.
    • Advanced Processing: Expand processing capacity to 40%.
    • Circular Economy: Reclaim 25% of CRMs through recycling.
    • Global Diversification: Limit reliance on single-country sources to 65%.

    Strategic Investments

    To meet these ambitious targets, the organisation recommends focusing on:

    1. Disruptive Technologies: Develop cutting-edge solutions like Direct Lithium Extraction and advanced recycling.
    2. Circular Economy: Scale up industrial symbiosis and recycling initiatives to retain valuable materials.
    3. Public-Private Partnerships: Allocate €1 billion to foster collaboration between industry and academia.
    4. Workforce Development: Train 1.2 million workers by 2030 to address the sector’s growing demands.

    A Sustainable Future

    EIT RawMaterials emphasizes the transformative potential of the raw materials sector, predicting a €2 trillion economic impact and the creation of 32 million jobs by 2030. Their initiatives also align with the EU’s Critical Raw Materials Act, which sets ambitious targets for mining, processing, and recycling by the end of the decade.

    Leading Innovation

    Since its inception, EIT RawMaterials has mobilized €600 million in funding and unlocked €3.6 billion for research and innovation. Its initiatives have fostered a thriving ecosystem of over 300 partners and 750 alliance members, driving sustainable solutions and workforce development across Europe.

    “The time to act is now,” said a spokesperson from EIT RawMaterials. “With bold investments and strategic collaborations, Europe can secure its industrial competitiveness, lead the global green transition, and build a resilient future.”

  • Ukraine Needs Security Guarantees to Attract Investment in Industry and Mining

    Ukraine Needs Security Guarantees to Attract Investment in Industry and Mining

    To attract investments in industrial production and the lithium and uranium deposits, Ukraine requires security guarantees, says the CEO of Metinvest.

    2025 must become the year of economic recovery, stated Metinvest’s General Director, Yuriy Ryzhenkov.

    For investments in industrial production and mineral resources, security guarantees are needed to attract international investments in key industries. This will provide the country with new jobs and technological opportunities, according to Yuriy Ryzhenkov, the CEO of Metinvest.

    He emphasised that building a people-centric business, where employee and community well-being take precedence over financial success, is crucial for Ukraine’s recovery.

    “We already have over 1,000 veterans and are ready to train anyone interested in jointly building an economically stable and peaceful Ukraine. Victory efforts are being made by workers maintaining production, mobilized soldiers in the armed forces, and even women, some as young as 19, working in mines,” said Ryzhenkov.

    Since the start of the full-scale invasion, Metinvest has directed 8 billion UAH to aid Ukraine and its citizens, according to the company’s website. Of this, 4.4 billion UAH has been allocated for military needs under the “Steel Front” initiative.

  • Germany Supports Savannah Resources’ Barroso Lithium Project with $270 Million Loan Guarantee

    Germany Supports Savannah Resources’ Barroso Lithium Project with $270 Million Loan Guarantee

    Germany’s export credit agency, Euler Hermes, has signed a non-binding letter of interest for a loan guarantee of up to $270 million to support Savannah Resources in developing the Barroso lithium project in northern Portugal. The guarantee covers 80% of a loan, making it an attractive proposition for Germany’s KfW IPEX-Bank and other financial institutions. KfW IPEX-Bank, a key development partner, has played a pivotal role in facilitating this process.

    This initiative reflects Germany’s and the European Union’s urgency to establish a domestic lithium supply chain and reduce dependence on imports, primarily from China, which currently supplies 97% of Europe’s lithium. Emanuel Proença, CEO of Savannah Resources, highlighted the importance of the move, linking it to the recently enacted European Critical Raw Materials Act. The legislation mandates that 10% of the EU’s critical raw materials must be sourced domestically and 40% processed within Europe by 2030.

    Savannah’s Barroso project, situated about 145 km from the deep-water port of Leixões near Porto, is a cornerstone of Europe’s efforts to bolster its lithium supply. A 2023 scoping study revealed the project’s potential to produce 26,000 tonnes of lithium carbonate equivalent annually over a 14-year lifespan, with an after-tax net present value of $953 million and a robust internal rate of return of 77.3%.

    Despite current lithium market oversupply and plummeting prices, Proença predicts a market rebound by the time Barroso begins production in 2027. He noted a likely deficit in lithium supply from 2027 onwards, supported by strategic developments such as the opening of AMG Critical Materials Group’s lithium hydroxide refinery near Berlin.

    The loan guarantee follows Savannah’s strategic partnership with AMG, which secured a 15.8% stake in the company and an annual offtake of 45,000 tonnes of spodumene concentrate for five years, with potential extensions.

    The Barroso project aligns with Europe’s broader commitment to building a sustainable battery value chain, as evidenced by similar initiatives across Serbia and the U.S., including significant funding for Lithium Americas’ Thacker Pass-project in Nevada.

  • Europe Moves Toward Lithium Independence with New German Refinery for EV Batteries

    Europe Moves Toward Lithium Independence with New German Refinery for EV Batteries

    As European automakers ramp up their pursuit of lithium for electric vehicle (EV) batteries, an Australian company is stepping in with a new refinery in Germany to help meet demand. Vulcan Energy has launched a pilot project at its plant west of Frankfurt to extract lithium from briny underground water near the French border. This lithium will be used by major auto manufacturers including Volkswagen, Renault, and Stellantis.

    In addition to producing lithium, the plant will use excess geothermal heat from water pumped from two kilometers below the Rhine Valley to warm homes in a local community. Francis Wedin, a senior executive at Vulcan, described the project as vital to Europe’s goal of reducing its reliance on foreign sources of critical materials. Currently, Europe’s lithium battery sector is struggling to gain a foothold as regional demand for EVs slows, but Vulcan hopes its plant will bolster Europe’s lithium industry and support the continent’s broader green transition.

    Set to begin commercial production by 2027, Vulcan’s project is partly funded by a 100 million euro ($106 million) subsidy from the German government. The EU, with its 2035 deadline to phase out new combustion engine vehicles, is eager to secure local lithium supplies to reduce dependency on China, a dominant player in global lithium mining and refining.

    Vulcan’s method involves drawing brine from geothermal reservoirs beneath Landau, where it’s processed into lithium hydroxide through electrolysis and crystallization. Notably, this approach has a carbon-neutral footprint and could be more cost-effective than China’s current methods. Vulcan’s Frankfurt facility aims to produce 24,000 tonnes of lithium hydroxide annually by 2027, enough for approximately 500,000 EV batteries.

    The EU has committed to refining 40% of its critical minerals domestically and has launched 28 lithium extraction or refining projects across the bloc. One competitor, AMG Lithium, opened a refinery in eastern Germany in September, sourcing raw materials from Brazil. Still, clean transport advocates warn that while securing lithium is critical, Europe needs further infrastructure to achieve full battery production independence.

  • UK Budget to Support Critical Mineral Imports to Strengthen Industry and Reduce Reliance on China

    UK Budget to Support Critical Mineral Imports to Strengthen Industry and Reduce Reliance on China

    The upcoming UK budget, spearheaded by Chancellor Rachel Reeves, will introduce greater financial support for companies importing essential minerals like lithium, graphite, and cobalt. These minerals are vital for sectors such as defense, aerospace, EVs, and renewables, and the initiative aims to reduce the UK’s dependence on China. Importers with long-term contracts with UK exporters can access UK Export Finance, enhancing partnerships with Commonwealth suppliers. This budget will also include broader economic measures, including tax adjustments and increased borrowing to boost public services and infrastructure.

  • Cornish Lithium to Launch £15m Demonstration Plant, Aims to Boost UK’s Clean Energy Transition

    Cornish Lithium to Launch £15m Demonstration Plant, Aims to Boost UK’s Clean Energy Transition

    A new lithium production demonstration plant is set to open in Cornwall, marking a significant step in the UK’s shift towards clean energy. Cornish Lithium announced that the £15m facility near St Austell will begin producing lithium hydroxide—a key component in electric vehicle (EV) batteries—from granite sourced from an old China clay pit. This initiative aims to reduce the UK’s reliance on importing carbon-intensive materials from countries like China.

    The unveiling ceremony will take place at the Trelavour Hard Rock project this Friday. The company plans to produce 10,000 tonnes of sustainable domestic lithium annually by 2027. According to CEO Jeremy Wrathall, lithium is essential for manufacturing EVs, grid-scale electricity storage, and rechargeable electronics. Currently, the UK imports 100% of its lithium, but by 2030, the demand is expected to reach 110,000 tonnes of lithium carbonate equivalent.

    Wrathall emphasized that Cornwall holds one of the largest lithium resources in Europe, with the potential to meet more than half of the UK’s EV industry needs. He noted that this resource is an untapped advantage, which could make UK industries more competitive and less vulnerable to global supply chain issues.

    The £15m demonstration plant was funded through the National Wealth Fund, alongside The Energy and Minerals Group, TechMet, and the UK Government’s Automotive Transformation Fund. Wrathall added that this project could benefit an area with a 4,000-year mining heritage and help tackle social deprivation. Business and Trade Secretary Jonathan Reynolds praised the project for supporting high-skilled jobs in the South West and bolstering the UK’s critical minerals supply chains.

  • Savannah Resources Predicts Lithium Price Rebound by 2027, Targets Production in Portugal

    Savannah Resources Predicts Lithium Price Rebound by 2027, Targets Production in Portugal

    Savannah Resources, a London-based mining company, anticipates a rebound in lithium prices by 2027, aligning with its plans to begin commercial production at its Barroso mining project in Portugal, according to CEO Emanuel Proenca. Lithium, a key material used in electric vehicle (EV) batteries and appliances, has seen an 80% price dropover the past year due to overproduction in China and a reduction in EV demand.

    Proenca emphasized that the market’s fundamentals remain strong, predicting a supply deficit from 2027 onward, which fits Savannah’s project timeline. He expressed optimism about global lithium demand, expecting it to grow 2.6 times over the next seven years, with a sharp acceleration starting in 2027.

    Savannah aims to bring the Barroso project online in 2027, delayed by a year due to a political change in Portugal. The company plans to build four open-pit mines in the northern Barroso region, extracting enough lithium for half a million EV batteries annually. Despite facing opposition from local residents and environmentalists, Proenca assured that the project would proceed.

    His optimism is echoed by Rio Tinto’s CEO, Jakob Stausholm, who recently announced the company’s acquisition of Arcadium Lithium for $6.7 billion, positioning Rio Tinto as a leading global player in lithium mining.