Weekly Metals News Digest – August 26-30
Emirates Global Aluminium Expands into U.S. Secondary Aluminum Market
Emirates Global Aluminium has announced plans to acquire an 80% stake in Spectro Alloys, a leading U.S. secondary aluminum producer with a capacity of approximately 110,000 tons of ingots. This acquisition will bolster Emirates Global Aluminium's presence in the growing U.S. secondary aluminum market, which saw a capacity of 4.9 million tons in 2023 and is projected to expand to 7.6 million tons by 2033. In 2023, the company sold around 550,000 tons of primary aluminum in the U.S.
For Spectro Alloys, the partnership with Emirates Global Aluminium offers significant investment opportunities to expand its operations. The company is currently working on increasing its production capacity of secondary aluminum alloys by 55,000 tons per year, with the first phase set for completion in 2025. This move follows Emirates Global Aluminium’s acquisition of Germany's Leichtmetall and the construction of a 170,000-ton per year plant in the UAE.
Zijin Mining Aims to Strengthen Global Market Position
Zijin Mining, one of China's largest mining firms, is reassessing its strategy for acquiring new deposits and mines in light of rising investment costs, geopolitical tensions, and a weakening global economy. The company, which mines copper, gold, silver, zinc, lead, and lithium, operates in North and South America, Africa, and Asia. However, increased global competition, particularly in metals critical for electric vehicles and military equipment, has spurred the U.S., the European Union, and other countries to boost their own production capacities.
Despite these challenges, Zijin Mining remains committed to expanding its global footprint and strengthening its resource base in China and allied countries. The company targets an output of 1.2 million tons of copper in 2025 and aims to increase this to 1.5-1.6 million tons by 2028. To meet these goals, Zijin will accelerate the expansion of its existing operations in Tibet, Serbia, and the Democratic Republic of Congo, and is considering the acquisition of a major global copper producer.
Germany Poised to Become Europe's Largest Lithium Production Hub
Germany is set to become a major center for lithium production in Europe, with a lithium hydroxide plant expected to start operations near the Polish border in late 2026 or early 2027. The project, led by Rock Tech, is anticipated to secure €800 million in funding for its construction. Rock Tech also plans to build a similar facility in Canada, targeting a combined output of 120,000 tons of lithium hydroxide annually, which could capture up to 30% of the European and North American markets.
Although Rock Tech has not yet disclosed its raw material sources for the German plant, it may purchase them on the global market. In Canada, the company owns the Georgia Lake project, with over 16 million tons of ore containing 0.88-1% lithium. Additionally, Australian company Vulcan Energy Resources is developing a lithium hydroxide plant in Germany, using underground brines. With these projects, Germany is on track to become Europe’s largest lithium production center within the next 5-10 years.
Boliden Secures Copper Raw Materials in Finland
Swedish steelmaker Boliden, one of Europe’s leading copper producers, has signed a long-term agreement with Eurobattery Minerals to source copper concentrate from the Hautalampi project in Finland. The agreement, set to last a minimum of 10 years, will see Boliden smelting the concentrate into pure copper at its facilities in Finland or Sweden.
The Hautalampi project, located in the Outokumpu mining district, covers 277 hectares and contains identified copper, cobalt, and nickel mineralization. Eurobattery Minerals plans to develop an underground mine and concentrator with a projected life of over 12 years. For Boliden, this deal reduces the risks associated with raw material supply, complementing its production of over 89,400 tons of copper in 2023. Eurobattery Minerals is also in discussions with potential customers for nickel and cobalt concentrate supply.
Russia's Growing Rare Earth Consumption
Russia’s consumption of rare earth metals is expected to double to 3,000 tons within six years, according to the Russian Ministry of Industry and Trade. In 2023, Russia's demand for rare earths reached 1,420 tons, with significant usage in oil and gas processing (830 tons), renewable energy (200 tons), and glass and optical equipment (100 tons). By 2024, consumption is projected to increase to 1,500 tons, reaching 2,500 tons by 2027.
Currently, Russia’s rare earth industry is underdeveloped, with production limited to Solikamsk Magnesium Plant, which produces collective carbonate. The plant plans to establish a separation complex by 2027 to produce neodymium, praseodymium, lanthanum, and cerium.
China’s Continued Dominance in the Rare Earth Metals Market
Russia's plans to boost rare earth metal production and consumption highlight broader global market dynamics, particularly the ongoing trade conflict between China and the United States. The U.S. recently persuaded Canada to impose duties on imports of aluminum, steel, and electric vehicles from China, which dominates global production. In response, China restricted rare earth exports, driving up prices and impacting key consumers like the U.S. and the European Union.
These developments are likely to spur increased rare earth mining and processing efforts in the U.S. and Europe. However, China is expected to maintain its dominance in the global rare earth market, with its share unlikely to fall below 60% by 2030, given its substantial reserves and large-scale production capabilities.
