Pilbara signs lithium pact with POSCO

Spanish Market: Metals
28/02/18

Australian lithium developer Pilbara Minerals has agreed a strategic relationship with South Korean group POSCO regarding the second stage of its Pilgangoora lithium project in Western Australia.

The agreement involves POSCO initially receiving 80,000 t/yr of chemical spodumene concentrate. This will rise to 240,000 t/yr if the two companies establish a joint venture to produce 30,000 t/yr of lithium carbonate or hydroxide. The plant will be in South Korea.

POSCO will make an equity investment of A$79.6mn ($63.2mn) in Pilbara Minerals, which will help to fund the second stage of the Pilgangoora project.

The relationship with POSCO will transform Pilbara Minerals into a vertically integrated producer of lithium-ion battery materials and capture value across the mining and downstream processing stages, chief executive Ken Brinsden said.

The deal includes Pilbara Minerals making an investment decision on the second stage of Pilgangoora by 31 December, 2018. It must receive all regulatory approvals by 31 March. 2019, and produce first concentrate by 31 March, 2020.

The life of mine offtake agreement with POSCO means that 30pc of lithium concentrate output from stage one and stage two of Pilgangoora will go to the South Korean market.

PIlbara has offtake deals with China's General Lithium Corporation and Jiangxi Ganfeng Lithium Company for the first stage of Pilgangoora. It has a five-year, 75,000 t/yr agreement with China's Great Wall Motors for stage two production.

POSCO is one of South Korea's major industrial groups with interests in steel, engineering, construction, trading and battery metals. It is expanding its capacity to produce battery grade products and materials for the battery metals market in South Korea and Asia.

Its investment in Pilbara Minerals is the first direct investment by a South Korean manufacturer of lithium-ion battery materials into a supplier of spodumene concentrate, facilitating further commercialisation of POSCO's PosLX extraction technology, Pilbara Minerals said.

A definitive feasibility study into the second stage of the Pilgangoora project is underway, which looks to increase ore throughput to 5.0mn t/yr from 2.0mn t/yr.

Stage one of the Pilgangoora project will start producing lithium ore in the second quarter of this year. It will export its first lithium concentrate in the third quarter. First stage concentrate output is expected to be 330,000 t/yr from 2.0mn t/yr of ore. Output will rise to 800,000 t/yr from 5mn t/yr of ore if a go-ahead is agreed for a second stage.

Pilbara has a direct shipping ore agreement with Atlas Iron. This enables it to capitalise on the steep demand for lithium feedstock in the Chinese market and generate early revenue for Pilgangoora.

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11/11/26

US aims to grow mineral stockpile

Houston, 11 November (Argus) — The US Defense Logistics Agency (DLA) awarded up to $3.3bn in firm, fixed-price indefinite quantity/indefinite delivery (IDIQ) contracts for cobalt, gallium, nickel and high purity aluminum for the national defense stockpile, prompting questions over the quantities to actually be purchased. Under an IDIQ contract, the agency may place purchases during the established ordering period under a maximum total purchasing amount, although the agency is not obligated to buy that volume or value. The awarded values represent ceilings of what could be spent under the IDIQ contracts and are not guaranteed purchases. None of the acquisitions were announced officially by the awardee companies, but a spokesperson for the DLA noted awardees can choose to publicly share deals. Since the beginning of 2025 Metallus , Elmet , Largo , US Antimony and Global Advanced Metals all shared public updates on awards with the agency for strategic materials. The DLA committed $2bn to acquiring strategic and critical materials for the national defense stockpile throughout fiscal year 2026 (1 October 2025 to 30 September 2026), including high purity aluminum, according to an agency press release. Previously, the DLA would release the Annual Materials Plan (AMP), a list of potential material acquisitions including maximum quantities to be purchased, at the beginning of the agency's fiscal year in October. The DLA never released an AMP for the 2026 fiscal year and has yet to release one for 2027, leaving market participants still mulling which materials the agency already secured and what will be prioritized. Cobalt Switzerland-based miner and trader Glencore secured a contract to supply cobalt worth up to $900mn over a five-year period, according to an updated filing on the agency's procurement website. The DLA declined to comment on the quantity of material to be purchased. Glencore declined to comment on the award. Market participants noted without any confirmed information on the quantity or grade of cobalt the DLA plans to acquire, it would be difficult to gauge the impact on the market of the total tender as news of the award spread. When the contract was finalized in May, Argus assessed alloy grade prices on average at $30-31.50/lb which would imply a volume of approximately 13,276 metric tonnes (t) at the midpoint of the range, if the full $900mn were spent over the five-year ordering period at that level. Some sellers questioned whether the total volume of metal had already been removed from the market and was held in reserve for the DLA or if Glencore would need to acquire additional metal which could potentially tighten supply. Some market participants surveyed by Argus broadly dismissed supply concerns over the contract, particularly dependent on the grade and timeline. Others were also largely unconcerned about the tender's impact on the domestic cobalt markets, since the contract was awarded in May 2026, largely unbeknownst to participants until recently. The agency initially requested quotes for up to 16.5mn lb (7,480t) of alloy-grade cobalt cut cathode or rounds in August 2025 for a maximum of $500mn before the tender was cancelled . Ultimately, the request was not competed. Nickel Glencore was also awarded a separate contract from the DLA for up to $65mn to supply 1,500t of nickel cathodes and pellets over a five-year ordering period beginning in September. The agency initially issued a request for information on class 1 nickel products in March 2026 for 3,500t. Argus obtained a copy of the nickel contract from the DLA internet bid board system, where it was posted publicly for a time alongside other non-ferrous contracts for the national defense stockpile, including the gallium contract, before being pulled. After viewing the nickel contract, market participants surveyed by Argus posed few questions with some noting the expected volume to be purchased was relatively small and likely would not impact the market. Aluminum The Department of Defense announced Rio Tinto was awarded up to $995mn to supply high purity aluminum to the DLA on 25 September, noting it was a competitive acquisition with three responses received. The company will supply "a small volume" of high purity aluminum, Rio Tinto confirmed, but did not provide further details as to how much material the company could supply over the five-year period. Aluminum roller Arconic also received an IDIQ award to supply high purity aluminum for up to $995mn over a five-year period. The company did not respond to a request for comment. The Department of Defense awarded Arconic $45.5mn in 2023 to boost production of high purity aluminum for missiles and munitions. Gallium The DLA awarded Louisiana-based alumina producer Atlantic Alumina (Atalco) a contract to supply up to $350mn for 55,610kg (55.6t) of gallium over a five-year ordering period. Atalco did not immediately provide comment to Argus . The DOD has invested $400mn in the company, with a portion of the equity financing going toward scaling primary gallium production. The company expects to make 50t/yr of the semiconductor input once begins producing commercial volumes. By Jenna Baer Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Q&A: European Investment Bank on EU mineral strategy

11/11/26

Q&A: European Investment Bank on EU mineral strategy

London, 11 November (Argus) — The European Investment Bank (EIB) financed €1.2bn ($1.3bn) in 2025 for critical raw materials projects across the value chain, as the EU aims to strengthen supply-chain resilience. Argus spoke to EIB vice-president Nicola Beer about the sector's biggest financing gaps, the case for a broader financing toolbox that includes greater equity and risk-sharing capacity, and Europe's efforts to build more diversified supply chains. The EIB signed a framework agreement with Canada to support critical raw material investment. How important is foreign investment to Europe's long-term supply security, and is the EU doing enough to turn strategic partnerships into viable projects? Europe will never achieve critical raw-material security by trying to produce everything itself. What we need is diversification including more capacity at home, but also several reliable international partners. Canada has the abundant mineral resources Europe needs and Europe brings industrial demand, technology and capital. Bringing the two together should be a natural fit. But identifying common interests is the easy part. A mine or processing facility can take years to develop, requires large upfront investment and has to remain viable through volatile commodity-price cycles. Investors need confidence that there will be buyers for the material, while European industry needs confidence that the supply will actually be there. Where along the value chain does the EIB expect to deploy most of its capital over the next few years? I would resist choosing one part of the value chain. A mine without processing capacity or a refinery without reliable feedstock do not create resilience. Our approach is to invest across the value chain, from extraction and processing to refining, recycling, substitution and innovation. Financing needs will depend on the material and the bottleneck. Our job is to identify where investment can make the greatest difference to Europe's resilience and competitiveness. Likewise, there is no simple ranking of critical raw materials that determines what we finance. What matters is where Europe is most vulnerable and where investment can make the greatest difference. This is why we are developing a heat map that looks beyond supply concentration to the consequences any disruption would have for European industry. The EIB has said EU mineral exploration spending will need to rise to meet the Critical Raw Materials Act's domestic extraction goals. Could the EIB play a more direct role in supporting exploration projects? Exploration is where we have one of the biggest financing gaps and it is the highest-risk part of the value chain. Our study estimates that European exploration spending needs to increase from around €200mn to around €2bn a year. But that is an investment need for Europe, not an EIB financing target. The challenge is that only a tiny fraction of exploration prospects become operating mines. Traditional debt finance is therefore often not the right instrument at the earliest stages. If Europe wants significantly more exploration, it needs to find ways of absorbing more of that early-stage risk. The EIB could play its part in that, but the right frameworks and mandates would need to be in place. The discussions around the next EU budget will be decisive in determining how much risk Europe is prepared to share in early-stage exploration. You have spoken about the need for additional equity and risk-sharing instruments. Could the EIB eventually take a larger role in providing equity capital to critical minerals projects? There is no single financing instrument that fits all projects. The risks are very different depending on whether you are looking at exploration, a first-of-a-kind technology, a processing plant or an established industrial operation. The EIB already goes beyond traditional lending. We use venture debt to support innovative companies such as TWAICE Technologies, which develops software to help improve the performance and lifetime of batteries used in electric vehicles and energy storage. But that will not be enough for some of the highest-risk projects. Europe needs a broader financing toolbox, including more equity and risk-sharing capacity. The EIB can play an important role in that toolbox, but the objective should be to use the right instrument for the right risk, not simply to replace debt with equity. The EIB has emphasised the importance of transparent pricing and market data in critical mineral markets. What progress is being made on the proposed price index? It is true that we need to make opaque markets more transparent. Investors can deal with risk but they struggle with uncertainty. One idea under discussion is whether anonymised transaction data from trading platforms could contribute to more reliable price indices, validated by established price-reporting agencies. This could build on existing platforms or on a new reporting mechanism through which market participants provide relevant transaction data. The aim is to establish credible reference prices based on actual transactions, rather than to set prices politically. Better price signals would give companies and investors a more reliable basis for long-term contracts and investment decisions. What would success look like for the EIB's critical minerals strategy? Success would mean that in five years we spend less time talking about what Europe lacks and more time talking about what we have built. I want to see new critical raw-material projects in Europe, stronger processing and recycling capacity, and a much broader network of reliable international partners. I want European companies to treat resilience as a permanent part of investment and procurement decisions rather than something we only discuss after the next supply shock. By Cristina Belda Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Japan’s scrap export tender rises further in November

11/11/26

Japan’s scrap export tender rises further in November

Shanghai, 11 November (Argus) — The Japanese scrap dealer cooperative Kanto Tetsugen's export tender price rose further in November on renewed demand from Vietnam. A total of 20,000t of H2 scrap was awarded at ¥53,688/t ($338.18/t) free alongside ship (fas) today, up by ¥1,611/t from October. The result was equivalent to around ¥54,688/t fob, exceeding initial market expectations. The cargo is expected to be shipped to Vietnam, translating to an estimated price of around $395/t cfr. Vietnamese mills have been reluctant to raise their bids for imported scrap on a slower-than-expected recovery in steel demand, with most maintaining target prices at $380-385/t cfr for H2. The higher tender result included a quality premium of around $5/t and also reflected the limited availability of cheaper alternatives in the seaborne market for large-volume buyers. Many traders did not expect other Vietnamese mills or overseas buyers to follow at this price level, as many mills were already facing squeezed profit margins on the back of the current weak steel market. Argus ' daily assessment for Japanese H2 scrap was ¥52,000/t fob on 10 November. Tokyo Steel has kept domestic scrap prices unchanged since 22 October, with its H2 price at ¥51,000/t fas at its Tokyo Bay yard. Market participants were watching to see whether Tokyo Steel would raise domestic prices in response to the higher tender result. But trade sources said domestic mills had been receiving sufficient scrap supplies recently as overseas demand was subdued. Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

US monthly inflation up by 0.4pc in Oct

10/11/26

US monthly inflation up by 0.4pc in Oct

Houston, 10 November (Argus) — US consumer prices rose by 0.4pc in October from the prior month, a slower rate than in September as the surge in energy costs caused by the Mideast Gulf war moderates. The monthly gain in the consumer price index (CPI) compared with a 0.6pc seasonally adjusted gain in September and a 0.4pc rise in August, according to the Bureau of Labor Statistics (BLS). Analysts surveyed by Trading Economics had forecast a median monthly gain of 0.3pc for October. The BLS did not publish an annual headline inflation rate for October since the agency did not collect survey data in October 2025 due to the 43-day federal government shutdown. Annual CPI inflation was 3.7pc in September, and was last higher at 4.2pc in May. So-called core prices, which strip out food and energy, rose by a monthly 0.3pc in October, the same pace as in September and August, and above a forecast of 0.2pc. Annual core inflation was 2.6pc in September. The energy index rose by 0.7pc in October from the prior month, slowing sharply from a 5.2pc jump in September and a 2.1pc rise in August. Energy commodities rose by a monthly 0.8pc, after a 9.3pc gain the prior month, the BLS said. Gasoline rose by 1pc in October, after a 9.1pc jump in September that accounted for over half of that month's headline gain. Gasoline was one of the few indexes for which the BLS published an annual rate, rising by 37.4pc from a year earlier, up from 34.2pc in September. Shelter accounted for over 30pc of the monthly gain in the headline index, replacing gasoline, the BLS said. War-driven rise Inflation has been accelerating since the US-Israeli war on Iran broke out at the end of February, squeezing about a fifth of seaborne energy flows that transit through the strait of Hormuz. Because of the war and its inflationary spiral, US president Donald Trump's Republican party was handed a stinging defeat in nationwide midterm elections last week, losing control of both houses of Congress and effectively rendering Trump a so-called "lame duck" president for the remaining two years of his term. Following the release of the BLS report, the CME FedWatch tool showed an 85pc probability the Federal Reserve would hike its target rate by a quarter point at its next meeting ending 9 December, up from 84pc on Monday. FedWatch showed 10pc odds of a half point hike, compared with none a day earlier. The Fed raised its rate by a quarter point at its meeting in September, the first increase since 2023. By Bob Willis Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Unions to strike at South32's Australian Al refinery

09/11/26

Unions to strike at South32's Australian Al refinery

Sydney, 9 November (Argus) — Workers demanding higher pay are set to strike on 10 November at Australian metals producer South32's 4.4mn t/yr Worsley alumina refinery in Western Australia (WA), in an action the company said will not affect production. More than 200 of the Electrical Trades Union (ETU) and Australian Manufacturing Workers Union's (AMWU's) combined 256 members will take part in 48 hours of protected industrial action from tomorrow, both unions said on 9 November. The strike is deliberately planned to coincide with maintenance at the refinery's high-temperature bauxite digester. Delays to the restart of the digester will impose irrecoverable losses on Worsley's alumina production, the ETU said. South32 confirmed it is in enterprise agreement discussions with both unions and said no operational impacts are expected from the strike. The unions said they are aiming to increase South32's workers' pay to match Alcoa's, as Alcoa prepares to acquire South32's bauxite, alumina and aluminium assets across Australia, South Africa and Brazil. The deal is expected to close in the first half of 2027. Alcoa already operates WA's 4.2mn t/yr Pinjarra and 2.85mn t/yr Wagerup alumina refineries. South32's attributable production at Worsley increased by 2pc on the year in July-September to 966,000t. The company has set a production guidance of 5.26mn t of alumina for its fiscal year ending 30 June 2027. By Daniel Gage-Brown Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

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