Weekly Metals News Digest – April 7-11

China Strikes Back at the U.S. with Rare Earth Export Controls

Chinese authorities have announced stricter export regulations covering seven strategic rare earth elements: scandium, dysprosium, gadolinium, terbium, lutetium, samarium, and yttrium. Under the updated measures, companies must obtain special export licences from the Ministry of Commerce. Applicants must justify the intended usage of the materials and provide clear end-user information.

These regulations apply broadly, encompassing raw ores, refined metals, and finished goods containing any of the restricted elements or their alloys. Though not an outright ban, the move could significantly disrupt international supply chains, increasing lead times and costs for industries dependent on these materials.

The rare earths in question are vital to numerous advanced technologies. Scandium is critical in producing radio frequency modules and high-frequency filters used in 5G base stations and smartphones. Dysprosium is essential for stabilising the magnetic properties of neodymium-based permanent magnets, which power wind turbines, electric vehicles, and hard disk drives. Additionally, dysprosium finds applications in nuclear reactors and satellite shielding due to its radiation-absorbing properties.

This development reflects growing geopolitical tensions between the U.S. and China and could lead to a restructuring of global supply chains. Key sectors likely to be affected include defence, electronics, aerospace, renewable energy, and automotive. Companies may face added pressure to develop alternative material sources or pivot toward different technological pathways that reduce reliance on Chinese rare earths.

Barrick Gold to Pivot Toward Copper and Rebrand

Barrick Gold, historically one of the world’s leading gold mining companies, has unveiled a significant rebranding initiative to become Barrick Mining. This rebranding reflects its increasing focus on copper, a metal critical for global electrification and energy transition efforts.

This strategic shift is grounded in the results of feasibility studies for two major copper projects. In Zambia, the company plans a $2 billion expansion of the Lumwana mine. The project will involve building a second open-pit operation, effectively doubling Lumwana’s copper output to 240,000 tonnes per year. Barrick also envisions increasing production to 450,000 tonnes annually over the longer term, while extending the mine’s life by three decades.

The second flagship initiative is the development of the Reko Diq copper-gold deposit in Pakistan. This will be executed in two stages. Phase one, due by 2028, requires $5.5 billion in investment and will yield 200,000 tonnes of copper and 240,000 ounces of gold annually. Phase two aims to double copper output by 2030, further boosting Barrick’s copper portfolio.

Barrick is also eyeing expansion into new geographies. It is actively reviewing opportunities in Saudi Arabia and exploring early-stage projects in Chile, Peru, Ecuador, and the U.S. The company’s pivot toward copper coincides with Glencore’s decision to shutter two deep Australian copper mines by late 2025 due to rising costs and operational challenges, creating space for Barrick to expand.

Lithium Prices Continue Downward Trend Despite Investment Surge

Lithium prices remain under pressure globally. In March 2025, the price of lithium carbonate in China fell by 2% from February to $10,200–$10,500 per tonne. Spodumene concentrate declined 4.7% to $820–840 per tonne, reflecting a continuing market imbalance caused by oversupply.

This price drop followed the resumption of production after the Lunar New Year and highlights a longer-term trend: for more than two years, lithium has been in surplus, eroding profitability across the industry. Fixed-price contracts have largely been replaced by variable agreements based on spot market indices, with discounts narrowing to 0–2% in 2025 from 5–10% in 2024, pointing toward market stabilisation.

Despite the soft pricing environment, global lithium investments are accelerating. UBS reports a 25% increase in lithium sales in 2024 and projects another 15% rise in 2025. General Motors has pledged $625 million to the Thacker Pass project in partnership with Lithium Americas. Rio Tinto, meanwhile, is investing $2.5 billion in Argentina's Rincon project and recently acquired Arcadium Lithium to boost its lithium asset base.

These investments are driven by expectations of future supply shortfalls. According to the International Energy Agency, global lithium demand could outpace supply by more than 150,000 tonnes by 2030. However, current oversupply is likely to persist through at least 2027. Meanwhile, favourable weather conditions are sustaining lithium extraction from brines, keeping supply high and limiting upward price momentum.

Altona Rare Earths Discovers Gallium in Mozambique

Altona Rare Earths, a UK-based mining company, has reported the discovery of unusually high concentrations of gallium at its Monte Muambe project in Mozambique. The metal, found in fluorite-rich rock formations, reached concentrations as high as 232 grams per tonne—a notable finding, as gallium is rarely associated with fluorite mineralisation.

Monte Muambe is known for its fluorspar and rare earth element potential. Gallium appears to have been deposited in fluorite veins during the cooling of a carbonatite intrusion and associated hydrothermal activity. A scoping study is now underway to assess the viability of extracting both fluorspar and gallium from the site. Preliminary expectations suggest a straightforward process involving mechanical crushing and gravity separation.

Gallium is typically obtained as a by-product of bauxite or zinc ore processing. Global production is limited to around 760 tonnes annually, with China responsible for approximately 750 tonnes. Japan, South Korea, and Russia account for the remainder. A strategic gallium plant in Greece, with a projected annual capacity of 50 tonnes, has recently received EU support.

Gallium is used extensively in LED manufacturing, semiconductor production, and high-efficiency charging systems. It also has niche applications in nuclear reactor cooling, mercury-free thermometers, and metal bonding agents. In the EV sector, gallium is seen as a potential game-changer due to its superior heat dissipation and electrical properties.

Japanese companies such as Mazda and Rohm Semiconductor are investing in gallium-based components to create lighter, more efficient electric vehicles. In parallel, Australian scientists have developed a palladium-gallium catalyst capable of accelerating chemical reactions by 10,000 times, potentially enabling novel applications in CO2 conversion and wastewater treatment.

Aluminium Duties Create Challenges for Electronics Makers

The U.S. government's imposition of 25% tariffs on imported aluminium is impacting the electronics sector. In response, Intel has updated its procurement policies, now requiring all suppliers to disclose the full origin history of aluminium used in components, including the country of smelting and casting.

This measure is designed to ensure compliance with U.S. customs regulations and prevent trade violations. Intel has circulated formal declaration forms to its suppliers and emphasised that accurate sourcing is vital for maintaining continuity in electronics manufacturing.

The aluminium tariffs have increased input costs across multiple industries. For electronics manufacturers, which use aluminium in structural frames, heat sinks, and thermal enclosures, the tariffs are pushing up component costs. These cost increases are now affecting product pricing and supply chain strategies.

Notably, Taiwanese electronics firm Asus is reportedly exploring relocating PC manufacturing to the United States to bypass tariffs, even though it may increase unit costs. This move reflects broader reshoring trends prompted by shifting trade policies, supply chain security concerns, and geopolitical dynamics.

In this environment, companies across sectors must navigate rising material costs, sourcing complexities, and changing regulatory landscapes as they adjust to the new realities of global trade.