Quarterly rare earths update - April 2024
Ellie Saklatvala, Senior Editor — Nonferrous Metals, provides a bitesize overview of the key price movements that happened in Q1 and how supply and demand fundamentals are shaping up as we move through Q2.
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LME nickel prices fall on expectations of higher supply
LME nickel prices fall on expectations of higher supply
Singapore, 6 August (Argus) — London Metal Exchange (LME) nickel prices dipped below $17,000/t in Asian trading hours today, pressured by market expectations that Indonesian nickel ore supply could increase. There were expectations that the nickel mining quota (RKAB) for a major Indonesian nickel operation has more than trebled from its initial allocation at the start of the year. The details remain unconfirmed, but the news fuelled expectations of higher nickel supply in 2026, weighing on market sentiment and prices. The LME three-month nickel price on LMEselect, LME's electronic trading platform, and interoffice telephone market fell to $16,760/t as of 09:21 UTC, down by $369/t from the closing price of $17,114/t on 5 August. Indonesia set the 2026 nickel RKAB quota at 260mn-270mn wet metric tonnes (wmt) in February and is expected to review the figure in the third quarter. Mining companies were allowed to submit revision applications by 31 July. The ministry of energy and mineral resources (ESDM) has indicated that any increase is unlikely to be significant and that additional allocations would mainly be directed towards smelters facing ore shortages. Although uncertainty remains over the final quota level, most market participants had expected only a modest increase of around 10pc, which would raise the 2026 RKAB quota to about 290mn-300mn wmt. But the potentially substantial increase for one mine has raised concerns that the broader quota revision could be larger than expected, boosting supply and putting further pressure on prices. Earlier this week, there was also market discussions of the possibility that additional RKAB allocations would favour companies paying higher royalties. Indonesia's energy minister Bahlil Lahadalia said firms contributing larger royalty payments would receive priority because policy decisions should deliver the greatest benefit to the state and the public, according to state news agency Antara . Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Japanese firms launch Al recycling from EV batteries
Japanese firms launch Al recycling from EV batteries
Tokyo, 6 August (Argus) — Japan's Prime Planet Energy and Solutions (PPES) and its partners developed and implemented a recycling scheme of aluminium scraps generated during the production process of electric vehicle (EV) battery cells' sealing boards. PPES — an automotive battery cell manufacturing joint venture between Japanese automaker Toyota and battery producer Panasonic with 51pc and 49pc stakes respectively — has partnered with metal producer Nippon Light Metal, manufacturing firm Fuji Springs and Panasonic subsidiary Panasonic Operational Excellence to launch the closed-loop recycling scheme to turn aluminium scraps into aluminium materials for EV battery parts, PPES said on 5 August. The companies plan to reduce the use of new aluminium ingot by 200 t/yr through this recycling process. They expect to enhance the supply security of aluminium, lower procurement costs and reduce the environmental burden from mining and refining. Metal recycling is increasingly important in resource-scarce Japan because of rising demand for metals for decarbonisation technologies such as EVs and stationary batteries for renewable power, as well as potential supply instability, especially from China. Japanese firms are attempting to develop recycling technologies and enhance partnerships with domestic and overseas organisations to address this. Japanese trading house Sumitomo plans to process used lithium-ion batteries from Australia and New Zealand into an intermediate material "black mass". Japanese industry group the Battery Association for Supply Chain signed an initial agreement with the European Battery Alliance and Brussels-based industry association Recharge in September 2025 to strengthen co-operation on battery recycling. By Nanami Oki Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Critical minerals to boost Brazil's GDP: AmCham
Critical minerals to boost Brazil's GDP: AmCham
Sao Paulo, 5 August (Argus) — Brazil's critical minerals industry could add up to R192bn ($37bn) to the country's gross domestic product (GDP) by 2050, according to the US chamber of commerce (AmCham) for Brazil. AmCham Brazil, the largest overseas US-centered business association in the world, published on 4 August a study about the potential economic gains that the critical minerals industry could bring to Brazil's GDP. For that, it considered two scenarios. In the first scenario, investment would come mainly from domestic capital and critical minerals output would remain focused on exports of lower value-added products — such as spodumene ore and rare earths carbonates — with zero to no domestic downstream integration. This case would focus on increasing critical minerals production by 2050, requiring R104.8bn in investments. The added output would lift Brazil's GDP by 1.1pc, translating into a R128.6bn rise, and create 304,000 jobs. The second scenario assumes greater foreign investment, expanded mineral processing in Brazil and growing use of higher value-added critical minerals products by the domestic industry. The necessary investments to support this expansion are R120.8bn, but returns could increase Brazil's GDP by 1.6pc, or R192bn by 2050, while also creating 750,000 jobs. Vertically integrating Brazil's critical minerals industry would bring R63.4bn in GDP gains, while also boosting domestic consumption of higher value-added critical minerals products by R32.3bn, according to AmCham. The study's result aligns with Brazil president Luiz Inácio Lula da Silva's push to vertically integrate the critical minerals industry in Brazil, despite skepticism from the industry towards the feasibility of adding downstream plants to the country without substantial federal grants. Production increases expected AmCham also expects Brazil's critical minerals output to increase across the board, including the addition of cobalt output, which is currently non-existent in the country. AmCham expects Brazil's copper, graphite, lithium, nickel, cobalt and rare earths output to consistently grow by 2050, with rare earths and graphite experiencing the sharpest growth spurts. Brazil has the world's second-largest rare earths reserves but minimal production. AmCham expects Brazil's rare earths output to rise from 20 metric tonnes (t) in 2024 to 12,800t in 2050, a 28pc compound annual growth rate (CAGR). Graphite is also expected to increase, going from 68,000t to roughly 1.6mn t, a 12.9 CAGR. By Pedro Consoli Brazil's critical minerals production projections metric tonnes Mineral 2024 output 2050 proj. output 2024-2050 CAGR (%) Copper 527,000 894,000 2.1 Graphite 68,000 1,600,000 12.9 Lithium 10,000 133,000 10.5 Nickel 77,000 117,200 1.6 Cobalt 0 17,400 na Rare earths 20 12,800 28.2 AmCham drew its figures from 2025 studies by Brazil's international relations (CEBRI), mining technology (CETEM), and mineral (IBRAM) institutes. AmCham Brazil Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
US auto sales slow in July from 2026 high
US auto sales slow in July from 2026 high
Houston, 5 August (Argus) — US automotive sales in July slipped after reaching their highest level this year in June, as consumers tempered purchases but continued to spend in the face of renewed inflationary pressures after the US and Iran resumed hostilities. Sales of light vehicles, which are pickup trucks and cars, fell to a seasonally adjusted annual rate of 16.3mn units in July, down from an upwardly revised 16.6mn in June, the Bureau of Economic Analysis reported on Tuesday. Last month's total represented a 1.8pc decrease from July 2025's annualized rate of 16.6mn. Buyers — primarily affluent ones — continued to spend in July, buoyed by continuous gains in equity markets that have increased household wealth. Still, affordability concerns linger with fuel prices rising again after the ceasefire agreement in the Middle East broke down and markets still expecting the US Federal Reserve to raise its target interest rate this year, which would raise borrowing costs. Average US retail gasoline prices ended the week of 3 August at $4.079/USG, representing an 8pc increase from the week ended 6 July, the latest US Energy Information Administration data shows. The Chicago Mercantile Exchange's FedWatch tool is showing a 53pc probability of a quarter-point rate hike at the Fed's September meeting, as policymakers seek to reel in inflation that remains nearly double their 2pc target. Sales of pickup trucks in July fell by 1.8pc to a 13.6mn annual unit rate on the month, while car sales ticked up by 0.6pc to a 2.7mn unit rate in the same period. US vehicle production in June increased to a seasonally adjusted rate of 10.68mn units, rising from an upwardly revised 10.41mn in May, the latest Fed data shows. Auto assemblies are reported with a one-month lag to sales. By Alex Nicoll Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.