Weekly News Review May 18 – May 24 2026

There was a lot going on this week in critical raw materials. However, the high-level meeting between the US and Chinese presidents produced surprisingly few tangible results.

On Wednesday, Chinese customs authorities released a series of data on foreign trade involving critical raw materials and components made from them. A sharp decline can be observed in gallium and germanium.

GALLIUM AND GERMANIUM: CHINA’S EXPORTS NEAR ZERO IN APRIL:

The latest customs data from Beijing shows that exports of both critical materials collapsed in April, with gallium shipments reduced to just 3 kilograms and germanium shipments reduced to virtually zero.

China exported just 3 kilograms of gallium in April, all of which went to Malaysia. No other country received any shipments. The figure marks a collapse of more than 99 percent compared to both the previous month, when 5,350 kilograms were exported, and the same month a year earlier, when shipments totaled 4,777 kilograms.

Germanium exports were similarly negligible.

Germany and Japan each received less than one kilogram, with no other destinations recorded. The figures are all the more striking given that April 2025 was already a historically weak month for germanium, with exports falling 93 percent month-on-month to just 98 kilograms. Even against that low baseline, April 2026 represents a further near-total collapse.

The drop also reverses what had appeared to be a partial recovery in March, when germanium exports rebounded to 998 kilograms and gallium shipments held steady at 5,320 kilograms.

Whether the April figures reflect deliberate policy tightening by Beijing, licensing bottlenecks, or a temporary disruption remains unclear. China has previously used its dominant position in both metals to apply geopolitical pressure, cutting Japan off from gallium supplies earlier this year and formally banning exports to the United States in December 2024, which it later lifted.

Both gallium and germanium are critical inputs for semiconductors, fiber optics, photovoltaics, and defense systems. China controls the vast majority of global production and refining capacity, and has maintained strict export licensing requirements on both materials since the summer of 2023.

DYSPROSIUM AND TERBIUM EXPORTS CONTINUE TO DIVERGE IN APRIL:

Beijing’s trade restrictions continue to affect exports of the two heavy rare earths.

China once again exported significantly more dysprosium in April. According to customs data, 11,046 kilograms were shipped overseas, an increase of almost 40% compared with both the previous month and the same month last year. All of the material exported in April went to South Korea.

Terbium exports declined slightly, with only 500 kg leaving the country, compared to 653 in March. Austria, South Korea, and Vietnam were the only recipients.

Overall, however, exports remain well below the levels seen a year earlier. Both rare earth elements, which enhance the performance of magnets, have been subject to strict export rules since April 2025.

CHINA’S EXPORT OF RARE EARTH MAGNETS EDGE DOWN SLIGHTLY:

Shipments of the high-tech components declined modestly in April but remained well above last year’s levels.

China’s exports of rare earth magnets eased slightly in April, according to the latest data from the country’s customs authority. After reaching 5,238 metric tons in March, exports slipped to 5,126 tons in April — a decrease of just under two percent.

Compared with the same period last year, however, export volumes have nearly doubled. In April of the previous year, China exported only 2,627 tons. That was also the month when Beijing introduced export restrictions on several rare earth elements and related components, measures that continue to disrupt global supply chains.

The leading destinations in April 2026 were Germany, South Korea, the United States, Vietnam, and India. The same countries also ranked among the top five importers in the previous month, although in a slightly different order.

NO CLEAR BREAKTHROUGH ON RARE EARTHS AFTER US CHINA TALKS:

Hardly any new information on rare earths following the meeting between the Chinese and U.S. heads of state.

The summit between U.S. President Donald Trump and his Chinese counterpart, Xi Jinping, last week was described as positive by both sides. However, few details or concrete outcomes have been made public so far. There is also no new status on the export restrictions on rare earths, which have been in place since April 2025. A White House statement, however, indicates that China will address US concerns about potential supply bottlenecks in rare earths and other critical minerals. These include yttrium, scandium, neodymium, and indium.

In addition, China is said to address bans and restrictions on the sale of plants, equipment, and technologies for the production and processing of rare earths. This likely refers to regulations announced last October, which were suspended one month later for a one-year period. According to Chinese sources, this pause remains in effect until November 10, 2026.

If implemented, the rules would have far-reaching consequences, requiring foreign companies to obtain approval to export magnets containing even small amounts of Chinese rare-earth materials. The same would apply if Chinese technologies were used in mining, processing, or magnet manufacturing.

China has not yet confirmed the White House’s statements and remains reserved. However, remarks from the United States’ chief trade representative, Jamieson Greer, suggest that ongoing dialogue is underway between the two sides.

According to him, exports of rare earths from China to the US have recently increased again.

If US companies encounter issues with export regulations, they would reach out to their Chinese counterparts, which Greer describes as constructive.

Meanwhile, Beijing’s fundamental stance, restricting exports when they may pose risks to national security under so-called “dual-use” considerations, appears unchanged.

AUSTRALIA: RARE EARTH MINING AND PROCESSING PLANNED AT A SINGLE SITE IN NORTHERN AUSTRALIA –

Arafura Rare Earths has made the final investment decision for its Nolans Project rare earths development in Australia’s Northern Territory. The company will now move into the pre-construction phase, with major construction works scheduled to begin in September 2026. Nolans is expected to become Australia’s first fully integrated rare earths operation capable of processing material from ore to oxide at a single location.

The investment decision follows a series of financing and offtake milestones, including support commitments from Export Finance Australia, the National Reconstruction Fund Corporation, and Germany’s raw materials fund. Arafura positions Nolans as a strategic contributor to Western supply chains for magnet rare earths, which are essential for electric vehicles, wind turbines, and advanced technology applications.

On the commercial side, Arafura points to long-term offtake agreements with Hyundai Motor Company, Kia Corporation, Siemens Gamesa, and Traxys across Europe and North America. Together with a letter of support from Export Finance Australia, these agreements already cover 93 percent of the company’s targeted binding offtake volume, according to Arafura.

However, not all arrangements have been fully finalized: the EFA support letter is non-binding, and additional negotiations with manufacturers in Germany and elsewhere in Europe are still ongoing.

Several steps also remain before construction can officially commence. Arafura must still finalize financing agreements, secure shareholder approvals, and award key construction contracts. The company also intends to keep part of its future production available for spot market sales.

PLATINUM GROUP METALS FACE A YEAR OF DIVERGENCE AND DISRUPTION:

Supply constraints, a shifting automotive industry, and war in the Middle East are pulling the PGM markets in different directions.

The five platinum group metals, platinum, palladium, rhodium, ruthenium, and iridium, are often discussed as a group, but their outlook for 2026 is anything but uniform. Platinum is set to record its fourth consecutive annual deficit, according to both Johnson Matthey’s annual PGM Market Report and the World Platinum Investment Council’s latest Platinum Quarterly.

The WPIC warns that above-ground platinum stocks could fall below three months of demand by year-end. Palladium and rhodium, by contrast, are both forecast to tip into modest surplus as declining output of petrol and diesel vehicles weighs on autocatalyst demand, the single largest use of both metals.

The WPIC notes that Q1 2026 briefly bucked the trend, with platinum recording a 268,000-ounce surplus, its first in six quarters, as investment demand eased following the late-2025 price rally and the outbreak of war in Iran unsettled markets. But the council expects this to reverse throughout the remainder of the year, with the full-year deficit forecast at 297,000 ounces.

On the supply side, total platinum supply is forecast to grow just 2 percent in 2026, with recycling up 9 percent on higher prices but mine supply stable. The most significant supply development across all PGMs is a steep drop in Russian palladium shipments: Norilsk Nickel has guided for output to fall 10 to 11 percent, its lowest level in at least two decades, and has been permanently excluded from the US market following anti-dumping rulings last year.

War in Iran Continues to Be an Uncertainty Factor:

Demand is shifting as much as supply. The WPIC forecasts total platinum demand to fall 9 percent to 7.67 million ounces in 2026, with jewelry down 12 percent and investment demand down 54 percent, partly offset by 9 percent growth in industrial consumption. Johnson Matthey points to the AI-driven boom in data center construction as a key new demand driver, lifting demand for hard disk drives that use platinum and ruthenium.

This year will also see the first meaningful commercial use of iridium in green hydrogen electrolysis, as large projects in Germany and Portugal near completion.

The biggest unknown is the Iran war.

Damage to regional petrochemical infrastructure has pushed feedstock prices sharply higher across Asia, where many PGM-catalyzed chemical processes are concentrated. If disruption is prolonged, planned capacity expansions may be canceled, removing a meaningful source of long-term demand across the group.

CANADIAN RARE EARTHS COMPANY ACQUIRES RARE EARTH RECYCLING FACILITY IN GERMANY:

Canadian rare earths company Mkango Resources is continuing to build out an integrated value chain for critical raw materials. Its portfolio includes the Songwe Hill mining project in Malawi and a planned processing facility in Puławy. Through subsidiaries and strategic investments, Mkango is also active in rare-earth recycling operations across Europe and North America.

The company is now expanding the recycling segment further. Mkango has signed an agreement with the German technology group Heraeus to acquire its recycling business for approximately €8 million.

Through its Remloy division in Bitterfeld, Heraeus recycles end-of-life neodymium-iron-boron (NdFeB) magnets. The facility uses a so-called “medium-loop” recycling process — a melting technology that converts scrap magnets into reusable alloys for the production of new magnets.

This process is expected to complement Mkango’s existing recycling technologies, particularly those operated by its subsidiary Hypromag in Pforzheim. The broader objective is to cover the entire magnet recycling and recovery chain.

Remloy’s facility currently has an annual processing capacity of around 500 tonnes of NdFeB alloy. Following initial pilot production runs, commercial sales are expected to begin later this year.

According to the company, Remloy also holds inventories exceeding 300 tonnes of magnets, alloys, and related raw materials, which should support further operational expansion and near-term production ramp-up.