Weekly News Review March 10 – 16 2025

Welcome to our weekly news review.

UNITED STATES: US GOVERNMENT PUSHES FOR STRATEGIC METAL MINING ON MILITARY BASES –

In an unprecedented move, an executive order could be signed this month. The goal is to reduce dependency on China. 

The U.S. government reportedly plans bold steps to reduce reliance on China for critical mineral processing. According to Reuters, sources close to the administration said President Donald Trump plans to authorize the construction of refining facilities on Pentagon military bases through an executive order, which is expected to be signed as soon as possible.

China dominates the global processing of essential minerals in consumer products and military equipment, leaving the U.S. and its allies dependent on Chinese imports. According to the U.S. Geological Survey, the nation was 100% reliant on imports for 12 of the 50 minerals classified as critical in 2024. In response, Trump recently vowed to “dramatically expand production of critical minerals and rare earths here in the USA.” As trade tensions with China escalate, Washington may seek to bolster national security and mitigate foreign supply chain risks by pushing for more domestic refining capabilities.

Bold Action, but Questions Remain:

While manufacturers view the move as a step toward securing vital resources, some U.S. mining companies may feel overlooked due to the emphasis on refining rather than new domestic mining operations. 

Industry experts, however, question the feasibility of the plan. For example, Ashley Zumwalt-Forbes, former Deputy Director for Batteries and Critical Materials at the U.S. Department of Energy, raised concerns about operational challenges in a social media post, noting that much of the technical expertise remains in China. Additionally, uncertainties persist regarding raw material sourcing and establishing a stable offtake market for refined minerals.

SOUTH KOREA TO JOIN FORCES WITH MONGOLIA:

The high-tech nation with scarce natural resources and the mineral-rich Central Asian country seek closer cooperation. However, challenges remain in developing supply chains.

The South Korean Ministry of Industry announced on Wednesday that South Korea and Mongolia plan to deepen their cooperation on critical raw materials following a meeting between government representatives from both countries. The partnership aims to support Mongolia in developing its vast mineral resources while helping South Korea secure and stabilize its supply chains. As a high-tech nation with limited natural resources, South Korea seeks to diversify its imports to ensure a more reliable supply for its industries.

Conversely, Mongolia boasts extensive mineral reserves and a significant mining sector, contributing around 25% of the country’s GDP. While coal remains its primary export, Central Asia is also a key producer of minerals such as fluorspar and molybdenum.

Rare Earths and Lithium in Mongolia: Potential and Challenges:

The extraction of critical metals essential for the energy transition, such as lithium and rare earths, is still in its early stages. A 2023 joint study by Mongolia’s Mineral Resources Authority and Germany’s Federal Institute for Geosciences and Natural Resources highlighted the need for further exploration efforts and substantial investments.

One key challenge for Western investors is transportation. As a landlocked country between Russia and China, Mongolia depends on its neighbors for export routes. Additionally, due to a lack of domestic processing infrastructure, raw materials would likely need to be refined in China.

The South Korean Ministry of Industry also cited these logistical and infrastructural hurdles as reasons for South Korean companies’ limited engagement in Mongolia’s mining sector so far. To address this, a joint center for rare metals will be established to support South Korean businesses in accessing Mongolia’s mineral resources and developing necessary technological solutions. Geological agencies from both countries also plan to conduct joint exploration projects. Furthermore, a research initiative at a Mongolian tin mine will focus on developing mining technologies tailored to local conditions.

FIGURE OF THE WEEK: 1 terawatt-hour – In 2024, global electric vehicle sales surged by 25% to 17 million units, driving annual battery demand beyond the 1-terawatt-hour mark for the first time.

SPAIN SEEKS TO EXPAND STRATEGIC METALS MINING:

Spain is the fourth-largest market in the European Union, with a diverse industrial sector complementing its service-based economy. However, automotive manufacturing and renewable energy equipment production rely heavily on imports of raw materials. The Spanish government has launched the Plan de Acción de las Materias Primas Minerales 2025-2029 to reduce this dependency. This initiative aims to increase the availability of strategic materials—such as rare earth elements and nickel—by developing new mining projects and promoting secondary mining. Additionally, recycling efforts will be expanded.

A key component of the plan is modernizing Spain’s mining legislation to align with the EU’s Critical Raw Materials Act (CRMA) requirements. This regulation sets binding targets for extracting, processing, and recycling critical raw materials by 2030.

Spain has significant mineral reserves, including rare earth deposits. However, past mining proposals have faced opposition. With the CRMA and the new action plan, the issue may gain fresh momentum, potentially paving the way for more excellent domestic resource development.

EUROPE TAKES GREAT STRIDES IN STRATEGIC METALS SOURCING:

The bloc pledges millions in funding under the Global Gateway initiative.

The European Union has taken two significant steps to diversify its raw material supply. On Thursday, the EU signed agreements with Kazakhstan under the Global Gateway initiative, encompassing the raw materials sector. Global Gateway is the EU’s geopolitical investment strategy to support worldwide infrastructure projects with a total budget of €300 billion by 2027. As part of efforts to expand cooperation on critical raw materials, the European Bank for Reconstruction and Development pledged a €3 million investment on Thursday.

In an interview with the Astana Times, this funding aims to promote advanced extraction technologies and sustainable standards, said Jozef Síkela, EU Commissioner for International Partnerships. He conducted negotiations on-site with Kazakhstan’s Deputy Prime Minister and Foreign Minister, Murat Nurtleu.

A raw materials partnership has linked Kazakhstan and the EU since late 2022 (we reported). The Central Asian nation reports that it produces 18 of the 34 raw materials classified as critical by the EU and plans to scale up the extraction of additional resources such as rare earth elements.

Platinum Group Metals: EU-South Africa Agreement to Boost Local Value Creation:

Also, on Thursday, the eighth EU-South Africa summit occurred in Cape Town. High-ranking officials in attendance included European Commission President Ursula von der Leyen, European Council President António Costa, and South African President Cyril Ramaphosa. The leaders agreed to strengthen their strategic partnership, including Global Gateway investments amounting to €4.7 billion. According to von der Leyen, most of this funding will support clean energy initiatives in South Africa, a country still heavily reliant on coal power.

The summit also saw the establishment of closer cooperation on critical raw materials. South Africa holds the world’s largest reserves of platinum group metals and is the leading supplier globally. These resources are crucial for producing green hydrogen, which is expected to play a key role in making heavy transport and parts of the industry more environmentally friendly. The EU and South Africa are working towards a trade agreement to enhance local value creation in the raw materials and hydrogen sectors while facilitating investment for European companies.

UNITED STATES GEOLOGICAL SURVEY 2025:

The U.S. Geological Survey recently adjusted its estimates of the world’s rare earth reserves based on company and government reports.

Surprisingly, the values for Vietnam were reduced significantly from 22 million to 3.5 million tons.

The same applies to Russia, which will likely have fewer reserves than previously assumed. The emerging subcontinent India thus moves into third place.

So far, rare earth production there has been comparatively manageable, with the USGS estimating the amount at just under 3,000 tons. The discrepancy between reserves and production is much more significant when placing two: mine production in Brazil was only 20 tons in 2024.

The full report is available for download here in our expert publications section. 

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