Weekly News Review June 2 – June 8 2025

China is tightening control over the export of rare earth magnets, gaining even deeper insight into global supply chains. Meanwhile, the EU is moving forward with the implementation of the Critical Raw Materials Act, which aims to secure access to essential resources.

All this and more from the newsroom in our weekly round-up.

CHINA IMPLEMENTS TRACKING SYSTEM FOR RARE EARTH MAGNET EXPORTS:

China has introduced a tracking system for rare earth magnets, requiring manufacturers to submit additional client information, trading volumes, and other details, according to a Reuters report citing sources familiar with the matter. The measure builds upon existing export restrictions imposed in April on seven of the 17 rare earth elements: dysprosium, terbium, yttrium, gadolinium, samarium, lutetium, and scandium, as well as their various compounds, including their use in magnets. In February, China proposed a traceability system for rare earth products, but it has yet to be formally implemented. The plan had also briefly mentioned export licenses before they were eventually enacted through a different measure two months later.

Customs Code Causes Confusion:

Although the measures do not constitute an outright ban, exporters must obtain licenses to ship restricted materials abroad. The licensing process is estimated to take approximately 45 working days. In addition, the most common type of rare earth magnets, neodymium-iron-boron (NdFeB) magnets, often include small amounts of dysprosium and terbium to enhance their performance and thermal stability. While neodymium is not subject to licensing requirements, customs authorities have struggled to determine which of them contain restricted materials, as they only use a single classification code for all rare earth magnets, regardless of their chemical composition. 

Importers Voice Concerns:

The delay in exports has already prompted some reactions abroad: The European Union has expressed concern over the impact of China’s rare earth export measures, citing risks to its industrial base due to heavy reliance on Chinese supply. The automotive sector, in particular, has echoed these concerns, reporting early disruptions in parts of its supply chain.

SOUTH AFRICAN CAPITAL TO BOOST US SUPPLY CHAIN:

Novare Holdings backs the expansion of ReElement Technologies’ Indiana refinery, which processes both rare earths and lithium.

U.S.-based resource company American Resources Corporation has secured a $150 million investment commitment from Novare Holdings, a South African investment firm. The funding will support the expansion of a critical materials refinery in Indiana, operated by its subsidiary ReElement Technologies.

According to the company, the facility is the only one in the world capable of producing both light and heavy rare earth elements as well as lithium. It can process a wide range of feedstocks, including mined ores and recycled materials.

The underlying refining technology, initially developed by pharmaceutical giant Purdue for high-purity drug production, is exclusively licensed to ReElement. The company claims the method is more environmentally friendly than conventional solvent extraction techniques while also being scalable and modular.

This is not the first collaboration between American Resources and Novare. In February, the two companies announced a joint venture to build Africa’s first integrated critical minerals refinery, aiming to increase local value creation in resource-rich countries that traditionally export raw materials for processing abroad.

The timing is notable: just days ago, Gabon became the latest country to introduce an export ban on unprocessed raw materials, following similar moves by Namibia and other nations seeking to capture more value from their mineral wealth.

RAMP-UP OF CLIMATE-FRIENDLY AVIATION FUELS OFF TO A SLOW START:

Sustainable Aviation Fuels (SAF) are considered a key pillar in making aviation more environmentally friendly. The industry has committed to achieving climate neutrality by 2050. However, the ramp-up of SAF production has been “disappointingly slow,” according to the International Air Transport Association (IATA).

Although SAF production is expected to double this year to reach two million tonnes, the association announced on Sunday, this still accounts for only 0.7% of total airline fuel consumption. Last year, the share stood at 0.5%. Currently, SAF is blended with conventional jet fuel.

IATA Director General Willie Walsh called the increase in production “encouraging” but emphasized the need for significantly faster progress. He urged fuel suppliers to scale up production and adopt fair pricing practices substantially. Walsh also criticized the EU’s climate targets, which were set without ensuring adequate market conditions or incentives for the production of sustainable aviation fuel (SAF). As a result, suppliers are exploiting supply shortages to charge excessive markups.

In addition to SAF’s current lack of economic competitiveness, the aviation sector is competing with other hard-to-decarbonize industries, such as heavy-duty transport and shipping, for access to these sustainable fuels. Another pressing challenge is the availability of hydrogen, a key component in the production of nearly all types of sustainable aviation fuels (SAFs). Producing climate-friendly green hydrogen not only requires renewable energy but also depends on critical raw materials, such as platinum group metals, which are known for their high volatility in their prices.

EUROPE: NEW PLATFORM LAUNCHED TO ROLL OUT NEW STRATEGIC METALS POLICIES –

The International Centre of Excellence on Sustainable Resource Management (ICE-SRM EU) officially launched last week to support Europe’s critical raw material policies. Hosted by the Geological Survey of Slovenia and coordinated by EuroGeoSurveys, the Centre is set to play a pivotal role in supporting the implementation of the Critical Raw Materials Act (CRMA), which came into force in 2024. 

The legislation aims to strengthen the EU’s domestic supply and enhance the resilience of critical mineral supply chains through ambitious goals: By 2030, the EU targets 10% of annual consumption from domestic mining, 40% of processing to occur within the EU, 25% of supply from recycling, and no more than 65% dependence on a single third country for any strategic material.

To help meet these goals, the Centre will assist member states in developing national exploration plans, streamlining permitting procedures, and adopting harmonized resource classification systems. According to the Centre, its work will also focus on identifying the reasons why data gaps exist in Europe’s geographical coverage and seeking possibilities to close them.

AFRICA: GABON TO BAN RAW MANGANESE EXPORTS BY 2029 –

The country joins a growing rank of resource-rich nations seeking to benefit more from their mineral wealth. 

On Friday, Gabon’s President Brice Clotaire Oligui Nguema announced that the country will ban all exports of unprocessed manganese from 2029. With the move, the Central African country aims to transition from an extractive industry to one centered on local value addition, thereby benefiting more from its mineral wealth.

It joins a growing list of resource-rich nations, such as Namibia and Indonesia, which have already enacted similar bans on critical minerals to boost domestic refining. In February, India’s Prime Minister Narendra Modi called it “unacceptable” for emerging economies to export raw materials only to re-import them as finished goods. 

To support the transition, Gabon’s government is granting mining operators a three-year window to invest in processing facilities, train local workers, and modernize infrastructure. 

Manganese is primarily used in the steel industry. However, it is also a key component in battery manufacturing as a cathode material and has numerous minor applications in the chemical industry.

According to the United States Geological Survey, Gabon is the world’s second-largest producer of manganese ore, accounting for nearly a quarter of global production capacity.

SILVER: ANALYSTS SEE OVERLOOKED POTENTIAL:

The metal sits 30% below its all-time high, while the gold-silver ratio hovers near historic extremes.

While gold has surged from one record high to the next in recent months, its lesser-followed cousin, silver, has remained largely overlooked by the market. Amid mounting geopolitical tensions and trade uncertainties that have shaken global equity markets and disrupted supply chains, both institutional and private investors have increasingly turned to gold as a safe-haven asset. However, analysts are now pointing to growing signs that silver may be poised for a comeback.

According to the Silver Institute, silver has entered its fifth consecutive year of market deficit as global demand continues to outpace supply. This is primarily driven by the metal’s dual role as both an investment vehicle and an industrial material. Over half of the global silver production is used in industries such as electronics, medicine, and solar energy, with the latter becoming increasingly important in recent years. The Silver Institute forecasted a 20% increase in demand from the photovoltaics sector in 2024 compared to the previous year, as reported in its World Silver Survey 2024. 

Gold-Silver-Ratio Points to Upward Potential:

Besides the supply shortage, the relationship between silver and gold also supports the case. Since the gold standard was abandoned in the 1970s, the gold-silver ratio, or the number of ounces of silver required to buy one ounce of gold, has averaged around 65. Today, that ratio has spiked to nearly 100, a level not seen since the onset of the COVID-19 pandemic.

According to Philipp Götzl-Mamba, precious metals expert at raw materials trader Tradium, the extreme ratio signals opportunities: “Given how significantly silver is undervalued compared to gold, we see clear bullish signals for the metal,” he said in an interview with Handelsblatt. Historically, such extremes have often preceded sharp rebounds in the silver price, he said further.

AUSTRALIA EYES RUBIDIUM PRODUCTION: NICHE METAL GAINING IMPORTANCE –

Until now, the global annual production of rubidium, estimated to be only a few tonnes, has likely come exclusively from China.

Among technology metals, rubidium is a niche product. Despite being twice as abundant in the Earth’s crust as copper, only a few tonnes are produced each year. This limited output is not due to scarcity but instead because rubidium is used in only a handful of highly specialized applications, including fiber-optic networks, night vision devices, atomic clocks, and certain epilepsy medications. Moreover, rubidium is not mined directly but is extracted as a byproduct of the mining of other metals, such as lithium and cesium.

However, demand for rubidium could rise as it finds new applications in growing sectors such as military technology and emerging fields like quantum computing. Data on the production and annual output of rubidium remains limited. Even the U.S. Geological Survey (USGS) can only speculate (PDF), naming China as the sole likely producer. Elsewhere, rubidium extraction was discontinued decades ago.

That may soon change. Australian mining company Everest Metals Corporation (EMC) has announced a breakthrough (PDF), positioning itself as an emerging producer of rubidium. A technical feasibility study released this week outlines plans for rubidium extraction at EMC’s Mt Edon project site. According to the study, a process developed in collaboration with Edith Cowan University has achieved recovery rates of up to 97% from ore samples. The process includes mining and ore processing to concentrate rubidium-bearing minerals, followed by roasting, leaching, and crystallization to produce rubidium chloride.

EMC is aiming for an annual production of up to one tonne, with the Mt Edon deposit estimated to contain approximately 7,900 tonnes of rubidium oxide. Located in Western Australia, the Mt Edon site is also considered promising for the extraction of cesium, tantalum, and lithium, the latter of which emerges as a byproduct in EMC’s processing workflow.

The following steps for the company include further testing of the technology and pursuing national and international funding. EMC aims to construct a pilot plant by 2026.

EUROPE EXPANDS LIST OF STRATEGIC METALS PROJECTS:

With the adoption of the Critical Raw Materials Act (CRMA) in April 2024, the European Union aims to secure the supply of key raw materials. A central component of the legislation is the designation of “Strategic Projects” that support the extraction, processing, and recycling of critical resources. These projects benefit from streamlined permitting processes and improved access to funding.

In March, the EU presented an initial list of 47 such projects located within the EU (we reported). On Wednesday, the European Commission announced the addition of 13 more projects, this time outside the EU. Among them are the Jadar lithium mine in Serbia and two rare earth projects: Zandkopsdrift in South Africa and Songwe Hills, developed by the Canadian mining company Mkango Resources.

Notably, Mkango already appeared on the March list for its rare earth separation facility in Puławy, Poland, which will process material from Songwe Hills.

The 13 newly added projects are spread across five continents, ranging from New Caledonia to Brazil. Greenland is also included, not for rare earth elements, which have recently garnered attention, but for a graphite mine intended for battery production. The territory has recently sought investment from both the EU and the United States.

More information on all listed projects can be found on the European Commission’s website.

CANADA: MULTI-MILLION DOLLAR FINANCING IN SIGHT FOR RARE EARTH PROJECT –

The state export credit agency offers support for the development of the Wicheeda mine.

Canadian mining company Defense Metals is moving forward with plans to extract rare earth elements at its Wicheeda deposit, located in British Columbia, the country’s westernmost province. To support the project, Export Development Canada (EDC), the national export credit agency, has now offered up to $250 million in financing.

Defense Metals had previously expressed interest in this kind of support, according to a statement. In March, the company had already received a grant of over $600,000 from Natural Resources Canada, the federal ministry responsible for natural resources. That funding was intended to help expand infrastructure at the site.

So far, Canada is home to just one active rare earth mine: Nechalacho, operated by Australia-based Vital Metals. That makes Wicheeda a key player in Canada’s ambition to become a leading producer of critical minerals needed for the energy transition while also offering Western nations an alternative to industry giant China.

To achieve this goal, the Canadian government developed a national strategy (PDF) that includes investments in infrastructure, research, and the entire rare earth value chain from extraction to processing. The latter, in particular, remains heavily dominated by China.

Extraction and Processing: Canada’s Emerging Rare Earth Value Chain:

One of the most talked-about developments in this space recently came from the Saskatchewan Research Council (SRC), a government-backed Canadian research organization, which announced in September the first-ever production of rare earth metals in North America (we reported). Just days later, the SRC announced a partnership with Defense Metals to process raw material from the Wicheeda site.

Last year, Defense Metals stated that its proposed open-pit mining project could eventually produce the equivalent of around 10% of the current global rare earth output (we reported). A target start date for operations has not been made public yet.

FIGURE OF THE WEEK: 25 million – photos per second is the current record for data transmission via an advanced fiber-optic cable.