Geopolitical Events

China expanded export controls to include rare earth processing technologies and certain rare earth permanent magnets critical for EVs, wind turbines, and military applications. This represents an escalation of strategic mineral controls.

China imposed export restrictions on antimony, a critical mineral used in flame retardants, batteries, and military applications including ammunition primers and night vision equipment. China produces about 48% of global antimony.

The US Treasury prohibited the import of Russian-origin aluminum, copper, and nickel into the United States and banned these metals from being traded on the LME and CME, escalating sanctions on Russia's metals industry.

The European Union adopted the Critical Raw Materials Act to reduce dependency on single suppliers and increase domestic extraction, processing, and recycling of critical minerals.

China implemented export permit requirements for certain graphite products, including synthetic graphite used in EV battery anodes. China controls approximately 65% of global natural graphite production and 90% of graphite processing capacity.

China announced export controls on gallium and germanium products, requiring exporters to apply for licenses. These elements are critical for semiconductors, fiber optics, and defense applications. China produces about 80% of global gallium and 60% of germanium.

Indonesia extended its ban on bauxite ore exports, following its earlier nickel ore export ban, to promote domestic aluminum processing and capture more value from mineral resources.

Australia and the United States signed a critical minerals agreement to strengthen supply chains and reduce dependence on China for processing of rare earths, lithium, and other strategic materials.

Chile announced plans to nationalize its lithium industry, creating uncertainty for existing and future lithium projects. Chile holds the world's largest lithium reserves and is the second-largest producer.

Japan and the United States signed a critical minerals trade agreement allowing Japanese-processed minerals to count toward EV tax credit requirements under the US Inflation Reduction Act.

Zimbabwe banned exports of raw lithium ore to encourage domestic processing and value addition. The country has significant lithium deposits and aims to capture more value from its mineral resources.

Canada ordered three Chinese companies to divest from Canadian critical minerals companies, citing national security concerns over foreign control of lithium and other strategic resources.

The US Inflation Reduction Act included provisions requiring increasing percentages of critical minerals in EV batteries to be sourced from the US or free trade agreement partners to qualify for tax credits.

President Biden invoked the Defense Production Act to boost domestic production of critical minerals needed for large capacity batteries, including lithium, nickel, cobalt, graphite, and manganese.

Western sanctions on Russia following the Ukraine invasion impacted global aluminum and nickel markets. While not directly banning exports, sanctions created supply chain disruptions and price volatility for Russian-origin metals.

Political instability following the military coup in Myanmar disrupted rare earth mining operations. Myanmar had become a significant supplier of heavy rare earths to China.

Indonesia banned exports of unprocessed nickel ore to promote domestic processing and capture more value from its mineral resources. This significantly impacted global nickel supply chains, particularly for stainless steel and EV batteries.

US imposed Section 301 tariffs on Chinese imports including various critical minerals and processed materials. China retaliated with tariffs on US goods. This trade war increased costs for mineral supply chains.

The DRC revised its mining code, increasing royalties on cobalt from 2% to 10% as a strategic mineral. This increased costs for cobalt producers while giving the DRC greater revenue from its resources.