Quarterly battery materials market update – November 2024
Thomas Kavanagh, Editor - Battery Materials, provides an overview of battery materials market with key updates on electric vehicles, lithium, cobalt, nickel and more, including:
- EV market update: tariff wars heat up
- Lithium: production cuts
- Cobalt: Chinese exports increase
- Nickel: uncertainty reigns
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S Africa energy regulator approves FeCr tariff relief
S Africa energy regulator approves FeCr tariff relief
London, 1 June (Argus) — The National Energy Regulator of South Africa (Nersa) has approved an electricity tariff agreement between energy utility Eskom and ferro-chrome smelters that will prevent the shutdown of the country's ferro-chrome industry in the near term. Eskom's new tariff for ferro-chrome producers Samancor and Glencore-Merafe is set at 62 South African cents/kWh (4¢/kWh), down from 87.44¢/kWh at the start of 2026 and less than half the 135¢/kWh these producers were paying at the end of 2025. The tariff for Samancor is set for five years and the tariff for Glencore-Merafe is for three years, both effective from 1 June. Nersa also confirmed that any revenue shortfall from the lower tariff price will be borne by Eskom directly and cannot be recovered through increased levies on standard tariff customers. Merafe Resources said today that it has called off its Section 189 retrenchment process at the Glencore-Merafe joint venture in response to the approval of the new tariff, which will prevent the potential loss of thousands of jobs. The company is still in talks with Eskom to finalise the details of the power purchase agreement that will use the tariff. Samancor's position is still not clear. The company moved forward with a retrenchment notice in March, at which time it planned to cut 2,400 jobs across its smelting operations and corporate offices, according to South Africa's National Union of Mineworkers. That notice came despite Eskom's initial announcement in February of its intent to offer the lower 62¢/kWh tariff. It is possible that Nersa's approval of a longer tariff period for Samancor may be an incentive to halt the retrenchment process, but Samancor has not yet issued any public statement to that effect. Production costs for South African ferro-chrome remain extremely challenging, even under the new tariff, but general consensus across the market is that the agreement will avert the almost total collapse of production that threatened to occur without electricity price relief. Production at Glencore-Merafe and Samancor dropped sharply last year as they struyggled in the face of lower-cost competition from Chinese ferro-chrome producers that benefited from lower energy prices. This dynamic has pushed South Africa towards sales of chrome ore overseas to China in recent years, rather than utilisation of ore reserves to produce higher-value ferro-chrome. Glencore Ferroalloys chief executive Japie Fullard [told Argus in April](https://direct.argusmedia.com/newsandanalysis/article/2816436) that the 62¢/kWh tariff only represents a breakeven margin at Glencore-Merafe's smelters, other than the more technologically advanced Lion operation, which has a lower production costs. But he emphasised that the group wants to continue to beneficiate ore in South Africa, despite the lack of strong margins. By Ronan Murphy Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Brazil renews quota policy for import steel
Brazil renews quota policy for import steel
Sao Paulo, 29 May (Argus) — Brazil will extend its steel import quota regime for another 12 months from June, the foreign trade chamber Camex's executive management committee (Gecex) said on 28 May. Steel imports within the quota threshold will remain subject to reduced 10-16pc tariffs, while a 25pc duty applies to volumes exceeding the quota. The quotas cover 19 steel products across flat, long and tubular steel segments, regardless of origin. The foreign trade authority assigned individual quota volumes for each product based on historical import levels. Gecex will also increase quota volumes for four coated flat steel products by 15pc, it said. The adjustment aims to avoid double protection, as the products became subject to antidumping duties in February 2026. Brazil imposed AD duties on imports of cold-rolled coil (CRC), hot-dipped galvanized (HDG) and other coated steel products from China earlier this year. Quota allocations will renew every four months through June 2027. Importers will be able to access lower tariffs on around 540,000 metric tonnes (t) of steel during each of the three periods. Steelmakers' association Instituto Aco Brasil requested that Gecex raise import tariffs to 35pc, which is the country's highest rate at the World Trade Organization (WTO). The group also proposed to eliminate the current quota system so the higher duty would apply to all imports. Gecex ultimately rejected the proposals, citing concerns that the measure could increase costs for downstream manufacturing sectors that consume steel products. The Brazilian quota regime was introduced in 2024 to curb rising steel imports and will now remain in effect for a third consecutive year. By Isabel Filgueiras Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Australia's BHP iron ore port workers set to strike
Australia's BHP iron ore port workers set to strike
Sydney, 29 May (Argus) — Electrical workers at global mining firm BHP's iron ore port operations in the Pilbara region of Western Australia (WA) plan to strike as early as June if a ballot of union members authorises protected industrial action. Electrical Trades Union (ETU) members working at Port Hedland are planning to hold strike action after six months of failed negotiations with BHP, the union said on 29 May. BHP has made contingency plans to ensure operations can continue safely and reliably if a strike goes ahead at the port, a spokesperson told Argus . The ETU has lodged an application for a protected action ballot order with Australia's national workplace relations tribunal, the Fair Work Commission (FWC), which would authorise the union's 200 port staff members to legally strike. BHP is negotiating a new enterprise agreement for its port operations team, which will cover a total of about 450 port employees, excluding contractors, Argus understands. Port Hedland is the world's largest bulk iron ore export port and is a key export hub in BHP's WA iron ore supply chain. The firm produced 257mn t of iron ore in the fiscal year ended 30 June 2025. By Emma Partis Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Galan begins Li brine processing in Argentina
Galan begins Li brine processing in Argentina
Sao Paulo, 28 May (Argus) — Australian firm Galan Lithium has completed the commissioning of its 60,000 metric tonnes (t)/yr Hombre Muerto West (HMW) lithium chloride project in Argentina. The firm has also processed HMW's first-ever lithium chloride batch, aiming to yield maiden production and first sales by the second half of this year. Galan expects HMW to become the joint-largest lithium project in Argentina when it reaches its full 60,000t/yr capacity, although there is no timeline for that to happen. For now, the plant has a 4,000t/yr capacity, with ramp-up to 5,200t/yr scheduled to the first half of 2027. The milestone officially makes Galan the eighth active lithium producer in Argentina, and officially completes the company's transition from an exploration company — referred to as juniors in the mining space — to a lithium miner and producer. Argentina has the highest number of lithium producers in Latin America, and ranked second in global brine-based lithium production in 2025 behind only Chile, according to fellow producer SQM. By Pedro Consoli Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.