Weekly News Review January 12 – January 18 2026

China released the first batch of December export data this week, showing that rare earth exports reached a record high for the full year 2025 despite tighter controls. Meanwhile, the Australian government provided further details on its planned critical minerals reserve, with an initial focus on rare earths, gallium, and antimony.

All this and more from the editorial team @rawmaterials.net and @strategicmetalsinbest.com

AUSTRALIA TO LAUNCH RESERVE OF RARE EARTHS GALLIUM AND ANTIMONY:

The government intends to secure rights to domestically produced minerals. Partner countries are also to benefit.

Australia is planning to establish a strategic reserve of raw materials. The initial focus will be on rare earths, gallium, and antimony, all sourced from domestic production. This was announced in a joint statement by Finance Minister Jim Chalmers, Resources Minister Madeleine King, and Trade Minister Don Farrell.

Specifically, the government plans to secure access to and sales rights for minerals produced in Australia. When needed, these materials can be stored, released, or sold to companies and partner countries. A budget of around $800 million (AUD 1.2 billion) has been allocated for these measures. Most of the funding will go toward the actual purchase of raw materials, with just under 15 percent earmarked for stockpiling.

It was reported last week that guaranteed price floors and price ceilings could be introduced as part of the national raw-materials reserve to reduce investment risk for projects.

The named critical minerals are important to a wide range of civilian and military sectors. Gallium, antimony, and seven of the 17 rare earth elements, as well as many related compounds and products, are subject to strict export controls by China, the world’s main producer. As a result, exports have fallen sharply at times.

In response to these supply uncertainties, Australia’s planned raw-materials reserve is also intended to stabilize partner countries’ supply chains. With the United States, for example, a comprehensive agreement on the development of joint mineral projects was concluded at the end of October.

In rare earths, Australia is already the world’s largest producer after China, with mining company Lynas as the key player. The country also has an active antimony mine at Costerfield, and further projects to mine and process the metal are in development. Gallium, by contrast, is currently produced only in small quantities as a by-product of aluminum production, but an expansion is planned, including the construction of a refinery under the U.S. agreement.

AUSTRALIA’S MINING COMPANY TERMINATES OFFTAKE DEAL WITH CHINA’S SHENGHE:

The Australian mining company VHM has terminated its offtake agreement with China’s Shenghe Resources. The deal had originally envisaged the sale of around 60% of output from the Goschen project in the southeastern state of Victoria to the Chinese group. Production of rare earths, zircon, and titanium at the site is scheduled to begin by the end of 2027.

VHM said the decision was taken because several contractual conditions had not been met. By cancelling the agreement, the company can now approach a broader range of potential buyers, as global demand, particularly outside China, continues to rise. The move also comes against the backdrop of the Australian government’s recently announced plans to support domestic critical minerals projects through price guarantees and other market-stabilisation measures.

Amid growing geopolitical tensions, an increasing number of countries are seeking to reduce their dependence on China for critical raw materials. China not only dominates the mining and processing of many strategic minerals at home, but also holds extensive positions across global supply chains. As a result, several mining companies worldwide have begun adjusting their strategies and scaling back cooperation with Chinese partners.

Brazilian rare-earth producer Serra Verde, for example, has recently shortened its offtake agreements with Chinese customers in order to supply more Western buyers. In Canada, the government has gone even further in the case of Vital Metals, blocking the export of rare-earth feedstock to China so that it can instead be processed domestically.

US GOVERNMENT TAKE A STAKE IN ALUMINUM PRODUCER TO SCALE GALLIUM PRODUCTION:

The U.S. government has made another move to secure the domestic supply of critical minerals, taking a $150 million equity stake in Atlantic Alumina Co. (ATALCO), Bloomberg reported. The investment will fund the establishment of the country’s first large-scale gallium production facility in Gramercy, Louisiana, alongside a $300 million contribution from a private investment company. Gallium is essential for satellite systems, military radar, aerospace, semiconductors, and energy technologies. It is not mined directly but extracted as a byproduct in zinc or bauxite production, the latter of which forms the base of aluminum production.  

The ATALCO investment follows a series of U.S. government moves to secure critical raw materials. The Pentagon has previously taken stakes in companies such as MP Materials and Trilogy Metals and has provided funding to strengthen domestic and overseas supply chains. These efforts aim to reduce dependence on China for strategic minerals, a key national security priority.

KOREA ZINC PARTNERS WITH US FIRM TO BUILD RARE EARTH MAGNET RECYCLING FACILITY:

Korea Zinc has partnered with U.S.-based Alta Resource Technologies to establish a joint venture in the United States focused on recycling rare-earth permanent magnets and producing purified rare-earth oxides. According to Yonhap News Agency, the facility will process up to 100 tons of magnet material per year and will be built at an existing U.S. recycling site operated by PedalPoint, Korea Zinc’s wholly owned subsidiary. Operations are scheduled to begin in 2027.

The project marks Korea Zinc’s latest move into critical minerals and advanced materials supply chains. The company, the world’s largest producer of refined zinc, is positioning itself as a key supplier of strategically important materials for U.S. and allied industries amid growing concerns about global supply security.

Just a month ago, the company announced a major investment of approximately $7.4 billion to build a large-scale smelter in Tennessee, which is expected to begin operations in 2029 (we reported). In addition to zinc, the facility is designed to process lead and copper and to refine a range of critical minerals, including antimony, indium, bismuth, tellurium, gallium, and germanium. The rare earth recycling capabilities would complement this push.

Biochemistry in Search for Critical Minerals:

The joint venture with Alta is set to employ biochemistry to extract the valuable critical minerals from end-of-life magnets. The startup uses engineered proteins that selectively bind to and separate metal ions. According to the company, this process can achieve purities higher than those of conventional recycling methods, especially with complex feedstocks such as magnets. Alta has gained support from major institutions, including the Defense Advanced Research Projects Agency (DARPA) and In-Q-Tel, the strategic investment arm of the U.S. Central Intelligence Agency (CIA).

RECORD YEAR FOR CHINA’S RARE EARTH EXPORTS: DESPITE EXPORT RESTRICTIONS –

Although overall exports rose throughout 2025, a closer look at the monthly data reveals pronounced volatility.

Despite export restrictions imposed in April, China’s rare earth exports reached a record high last year. In total, the world’s largest producer shipped 62,585 metric tons of rare earths abroad, an increase of nearly 13 percent compared with 2024, according to the latest data released on Wednesday by China’s General Administration of Customs. The last time China exported a comparable volume was in 2014, Reuters reported.

On a monthly basis, exports declined sharply toward the end of the year. In December 2025, shipments fell 20 percent from November, totaling 4,392 metric tons. Year-on-year, however, export volumes were still 32 percent higher than in December 2024.

More detailed data on exports of the elements directly affected by export controls, such as terbium and dysprosium, will not be available until next week, when authorities release a more granular breakdown. The bulk of exports is likely to consist of less critical rare earths such as lanthanum and cerium. As a result, aggregate figures may mask potential supply bottlenecks for other, more strategically important elements within the group.

In April 2025, Beijing imposed strict export controls on seven rare-earth elements, as well as on numerous related compounds and downstream products, such as permanent magnets. The move was widely seen as a response to U.S. tariffs. Following the measures, exports initially collapsed but subsequently recovered gradually. Nevertheless, analysts caution that export patterns are likely to remain volatile and that a sustained stabilization should not be expected.

Rare earth elements are essential inputs for a wide range of industries, including consumer electronics, automotive manufacturing, energy infrastructure, and military technologies.

US OPTS FOR NEGOTIATIONS  IN CRITICAL MINERAL IMPORTS:

The U.S. administration has held off on imposing immediate tariffs on imports of processed critical minerals following a comprehensive national security review. The U.S. Department of Commerce concluded that imports of processed critical minerals and their derivative products pose a significant risk to national security due to heavy reliance on foreign suppliers and limited domestic processing capacity. These materials are essential for defense systems, advanced technologies, and critical infrastructure, underscoring the strategic vulnerability created by current supply chains.

The review found that, as of 2024, the U.S. was fully import-reliant for 12 critical minerals and at least 50% reliant for another 29. It notes that even where domestic mining exists, limited processing capacity forces materials to be exported for refining before being reimported.

However, rather than resorting to tariffs at this stage, the administration will seek negotiations with foreign trading partners to secure reliable material streams and strengthen supply-chain resilience. The presidential proclamation authorizes the Secretary of Commerce, Howard Lutnick, and U.S. trade representatives to explore mechanisms such as price floors for critical mineral imports. A measure that the G7 finance ministers also discussed this week regarding rare earths. However, tariffs remain a potential measure if negotiations fail to yield substantial results within 180 days.

The review was initiated last April following China’s export controls on seven rare earth elements. China dominates the processing of rare earths and numerous other critical minerals, leaving the United States and much of the world highly import-dependent. Drawing on the investigation’s findings, the Trump administration aims to diversify supply sources and reduce its strategic dependence on single-country providers.

KAZAKHSTAN MAKES MAJOR INVESTMENT IN RARE EARTH EXPLORATION:

The Central Asian country plans to invest in geological exploration over the next three years at a level equal to what it spent in the past 15 years combined.

Resource-rich Kazakhstan aims to expand the production of critical raw materials and establish itself as a major player in this sector. To achieve this goal, the government has announced a significant expansion of geological exploration: nearly $470 million will be invested in surveying mineral resources over the next three years, matching the total exploration spending of the past 15 years.

Regions with high potential for copper, gold, lead, zinc, rare earth elements, barite, and bauxite have already been identified. Advanced studies will include analysis of satellite data, among other methods. The government also aims to produce geological maps covering approximately 100,000 square kilometers, four times more detailed than those from the Soviet era, and to develop modern geological infrastructure.

These initiatives are expected to attract increased private investment into the mining sector. In the past five years, approximately $1 billion in private funds have already flowed into the industry, highlighting growing international interest in Kazakhstan’s resource potential.

USA: BIPARTISAN BILL SEEKS $2.5 BILLION BOOST FOR DOMESTIC CRITICAL MINERALS:

A bipartisan group of U.S. lawmakers has introduced legislation to strengthen the domestic production of rare earths and other critical minerals, proposing the creation of a new independent agency backed by $2.5 billion in federal funding. The initiative aims to reduce America’s heavy dependence on Chinese processing, which currently accounts for the majority of global supply.

The bill, sponsored by Senators Jeanne Shaheen and Todd Young, would establish a Strategic Resilience Reserve tasked with building stockpiles, stabilizing prices, and supporting domestic and allied mining and recycling projects. Supporters argue that secure access to these materials is essential for defense systems, electric vehicles, advanced electronics, and other high-tech industries.

Lawmakers from both parties described the proposal as a market-oriented alternative to recent Pentagon efforts that have included direct equity investments in mineral companies. The new body would instead focus on encouraging private production through long-term purchasing commitments and coordinated supply-chain planning.

The announcement comes days after a Commerce Department review warned that the U.S.’s reliance on imported processed critical minerals poses a significant national security risk. The review authorized officials to seek arrangements such as price floors with foreign suppliers and to strengthen supply-chain resilience, while keeping the option of tariffs open if talks fail to deliver results within 180 days.  

RARE EARTHS FROM GREENLAND TO BE PROCESSED IN SAUDI ARABIA:

The U.S. mining company Critical Metals Corp. (CRML) is developing the Tanbreez deposit in Greenland, from which rare earth elements are expected to be extracted in the future. The company is pursuing a multi-track strategy for processing these critical materials: refining is planned in the United States and Romania, while initial processing steps will also take place near the mine site.

An additional future location has now been added, Saudi Arabia. On Thursday, CRML announced plans to establish a joint venture with the Saudi industrial and investment group Tariq Abdel Hadi Abdullah Al-Qahtani & Brothers Company (TQB). The partnership aims to build a rare earth refinery in the Gulf state. Twenty-five percent of Tanbreez’s output is to be processed there and subsequently used in the U.S. defense sector.

The agreement was concluded at the Future Minerals Forum in Riyadh, Saudi Arabia’s capital, which has developed into a major industry event. Saudi Arabia is seeking to diversify an economy that has long relied heavily on oil and gas exports, while also benefiting from its largely untapped deposits of critical minerals. In addition to expanding domestic resource production, the country is investing in the processing of imported materials, as this segment of the value chain is even more dominated by China than mining itself. Amid rising geopolitical tensions, many countries are aiming to reduce their dependence on imports from the People’s Republic.

In November, the Saudi state mining company Ma’aden and MP Materials, the largest U.S. producer of rare earths, had already announced plans for a joint refinery in Saudi Arabia. Shortly before that, the United States and Saudi Arabia agreed to deepen cooperation on critical raw materials.

FIGURE OF THE WEEK :  – $16.7 BILLION WORTH  OF INDUSTRIAL ROBOTS WERE INSTALLED GLOBALLY AS OF 2025.