Weekly News Review July 13 – July 19 2026

Despite rising temperatures, the critical minerals sector showed no signs of slowing down this week. Key developments included China’s latest June export data, the final investment decision for a new gallium refinery in Australia, and the European Union’s plans to expand financial support for critical mineral supply chains.

CHINA’S RARE EARTH EXPORTS DECLINE IN JUNE:

Shipments fell both month over month and year over year.

China exported nearly 5,105 metric tons of rare earths in June, according to the latest data from the country’s customs authority. Shipments fell 7% from 5,490 metric tons in May. The year-over-year decline was considerably steeper, at 34%. However, China had exported a record 7,742 metric tons in June 2025.

During the first half of the year, China exported 30,483 metric tons of rare earths, down 6.4% from the same period in 2025.

The statistics cover all 17 rare earth elements. More detailed data on the composition and destinations of the exports will be released in the second half of the month.

In April 2025, Beijing introduced export controls on seven rare earth elements considered particularly critical and in strong demand. The restrictions temporarily placed significant strain on global supply.

GALLIUM FROM AUSTRALIA: US PARTNERS CLEAR THE PATH –

Final investment decision made as Alcoa moves ahead with refinery in Western Australia.

U.S. aluminum producer Alcoa has received the final go-ahead to begin construction of its gallium refinery in Australia. The company will build and operate the facility at its existing Wagerup alumina refinery in Western Australia.

Australia and the United States are providing financial support for the project in exchange for offtake rights to the critical technology metal, as Prime Minister Anthony Albanese announced when unveiling the initiative last year. Japan is participating through a joint venture between the state-backed Japan Organization for Metals and Energy Security (JOGMEC) and trading house Sojitz. The partnership has already supported the project’s development and will purchase a portion of the refinery’s future output.

The facility is expected to produce 100 metric tons of gallium annually, equivalent to around 10% of current global annual production, according to Australia’s Minister for Resources, Madeleine King.

China remains the world’s leading exporter of gallium but introduced strict export controls on the metal in the summer of 2023. As a result, alternative sources of supply are becoming increasingly important for global technology and semiconductor supply chains.

CHINA FURTHER CONSOLIDATES ITS RARE EARTH STRENGTH:

State-owned enterprise and private mining group join forces to increase flexibility.

State-owned China Rare Earth Group has established a joint venture with the mining company Ji’nan Yuxiao Group and a subsidiary of Shenghe Resources. The new company has been capitalized with approximately $120 million, according to the Global Times. It will focus on processing rare earth materials and manufacturing and marketing products such as rare earth metal alloys.

The location of the production facilities, planned processing capacity, and timeline for the start of operations have not yet been disclosed.

According to the newspaper, China Rare Earth Group provides access to an extensive portfolio of rare earth mines and significant expertise in rare earth processing. Ji’nan Yuxiao Group brings experience in international mining, mineral processing, and logistics, while Shenghe Resources contributes its long-standing capabilities in the extraction, processing, and commercialization of rare earth materials.

Industry analysts quoted by the Global Times believe the partnership will give the companies greater operational flexibility while strengthening China’s domestic rare earth supply chain. Increased utilization of domestic resources is also expected to reduce reliance on overseas mining assets and enhance the country’s long-term raw material security.

EUROPE: EU PLANS FINANCIAL SUPPORT FOR CRITICAL MINERALS SUPPLY CHAIN DIVERSIFICATION:

According to media reports, a new “solidarity instrument” is to help companies build alternative supply chains and cushion the impact of potential Chinese retaliation.

The European Union’s heavy reliance on imports of critical raw materials and intermediate goods from China has long been recognized. However, the bloc has made only slow progress in developing alternative supply chains. The European Commission is now reportedly working on a new financing instrument to support companies in diversifying their sources of supply.

The proposed “solidarity instrument” would also cushion the economic impact of potential retaliatory measures by China, Bloomberg reported, citing people familiar with the matter. The instrument’s design and exact cost remain unclear, although the funding required could be substantial. EU member states are currently negotiating the bloc’s next multiannual budget.

The plan would form part of the EU’s broader strategy to rebalance its trade relationship with China. Alongside political dialogue, Brussels is considering new instruments to diversify supply chains and make greater use of existing trade policy measures, including anti-subsidy investigations, according to Bloomberg. The European Commission has stressed, however, that none of these measures is aimed exclusively at China.

The EU recently gave China until October to make progress in its ongoing trade dispute.Among other issues, Brussels is seeking what it considers more balanced trade and investment relations, as well as changes to China’s export controls.

In recent years, Beijing has introduced numerous restrictions affecting the supply chains of critical raw materials such as gallium, germanium and certain rare earth elements. These measures have once again highlighted Europe’s dependence on Chinese supplies and the associated vulnerability.

At the same time, industry representatives have repeatedly criticized the lack of financial support available to reduce these risks.

EU RAW MATERIALS POLICY:

Targets set out in the CRMA to reduce dependence will be difficult to meet.

At the beginning of the year, the European Court of Auditors warned that the EU was at risk of missing the raw materials targets set out in the Critical Raw Materials Act. Efforts to diversify import sources had so far “not produced tangible results”. The Munich-based ifo Institute, a leading center for economic research in Germany, has now reached a similar conclusion.

The EU accounts for more than 5% of global mine production for only four of the 27 critical raw materials examined, while its share is zero for nine, according to the researchers. Announcements are no longer enough; concrete projects and firm financing commitments are needed, said Isabella Gourevich of the ifo Institute.

The study also points out that the EU may have substantial raw material deposits, but it remains unclear whether they can be developed economically.

According to the study, higher tariffs would offer only limited protection for Europe’s raw materials industry against particularly low-cost imports.

For nearly all products examined for which data were available, the EU has already exhausted the scope permitted under World Trade Organization rules. Reliable market prices and production cost data are also unavailable for many raw materials.

The ifo Institute therefore considers direct support measures—such as financing commitments, risk sharing and long-term offtake agreements—to be more effective.

RARE EARTHS: IEA SEES PROGRESS, BUT DEPENDENCE REMAINS HIGH –

Supply chains remain highly concentrated—not only for rare earths, but also for other critical minerals and processing technologies, according to the latest Global Critical Minerals Outlook. The International Energy Agency argues that diversification and strategic stockpiles could significantly reduce supply risks at comparatively modest cost.

Critical minerals are becoming increasingly central to energy, industrial, and national security policy. They are essential not only for batteries, wind turbines, and electricity grids, but also for semiconductors, artificial intelligence, aerospace, and defense applications. The International Energy Agency (IEA) examines trends in supply, demand, and investment in its annual Global Critical Minerals Outlook, the 2026 edition of which has now been released.

According to the report, supply risks have intensified further, reflected in the recent rebound in prices for many critical minerals. The increase was driven in part by new export restrictions imposed by major producing countries. At the same time, investment by many of the world’s leading mining companies in critical mineral projects declined by nine percent in 2025.

Geographic concentration across supply chains continued to increase, particularly in the refining of key energy-transition minerals such as nickel, manganese, and graphite. Rare earths, however, stand out as a notable exception. New refining projects in the United States and higher production in Malaysia reduced China’s share of global rare earth refining from more than 90 percent in 2023 to 85 percent in 2025. According to the IEA, this share could fall to 70 percent by 2035 if announced projects move forward as planned. The analysis, however, does not distinguish between light and heavy rare earth elements, where China’s dominance—particularly in heavy rare earth production—remains substantially stronger.

Additional risks are emerging because export controls increasingly target not only raw materials, but also processing technologies and manufacturing equipment. In autumn 2025, China expanded its export restrictions to cover several rare earth elements under this broader framework. While some of these measures have been suspended until November 2026, the IEA warns that their full implementation could put production activities worth approximately $6.5 trillion per year outside China at risk.

The Cost of Preparedness Would Be Modest Compared with the Economic Impact of Supply Disruptions:

Despite the high concentration of global value chains, the IEA argues that diversification is financially achievable, particularly for strategically important specialty minerals with relatively small markets. Building more resilient supply chains for magnet-related rare earth elements, for example, would require investment of around US$60 billion over the next decade.

Strategic stockpiles could also play an important role in mitigating short-term supply disruptions. For eleven particularly vulnerable critical minerals, the agency estimates that the annual net cost of maintaining inventories outside the dominant supplier country would amount to less than $900 million. Compared with the potentially severe economic consequences of supply interruptions, the IEA concludes that these costs would be relatively modest.