Tag Archives: united-states

Impact of #US Tariffs on #Canadian #Nickel Industry

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Tariffs will disrupt the long-standing flow of nickel between Canada and the US

Canada is the single largest supplier of nickel metal to the US market, typically delivering between 35–40% of the United States’ annual primary nickel requirements over the past decade according to trade statistics and CRU’s Nickel Service. However, US President-Elect Donald Trump has announced potential 25% tariffs on Canadian imports, threatening to disrupt the flow of nickel across the border.

This will not only have a negative impact on the Canadian nickel industry, which is already struggling with high costs amid a global market in chronic surplus, but also on the US industry that needs a stable and secure source of high-purity nickel in a world that is increasingly dominated by China.

US market has no domestic nickel industry and is fully reliant on imports

In the US, nickel is largely used to make stainless steel followed by uses in foundry, alloying and plating applications – very little nickel is used domestically in battery applications. When it comes to stainless steel, the US has a mature scrap collection and distribution network meeting more than 80% of stainless-steel nickel requirement. The remainder needs to be secured by purchasing ferronickel or high-purity nickel. For all other applications, high-purity nickel is required.

The US has one operating nickel mine located in Michigan, owned by Lundin. This mine produces a concentrate that is exported, given the US has no domestic nickel smelters or refineries with the capability to process nickel-bearing concentrates. However, this mine is anticipated to exhaust its production by the end of 2025, leaving the US with no domestic nickel industry. As a result, the US will be completely reliant on imports to meet its primary nickel requirements.

Depending on the permanence of tariffs, US domestic nickel refining may become an attractive proposition and there is at least one company with plans to build a carbonyl nickel refinery producing high-purity nickel. However, the challenge this plant will have is sourcing intermediate feed.

Tariffs will push Canadian nickel to other markets

Although Canada is home to several large nickel producers, only one has the right surface assets and ore sources to be able to supply the US market from Canada. Vale produces high-purity nickel from its Sudbury and Long Harbor operations. However, its Canadian assets sit in the third and fourth quartile of CRU’s Net Cash Cost Excl. Royalties Industry Costs Curve.



Despite being positioned near the top of the cost curve, Vale’s operations appear to be able to turn a profit at YTD prices. However, when simulating for the impact of tariffs, Vale’s operations come under tremendous pressure.



Read more at: https://www.crugroup.com/en/communities/thought-leadership/2024/impact-of-us-tariffs-on-canadian-nickel-industry/

#US government backs #Aclara’s separation facility study for #REE

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Canada’s Aclara Resources announced on Wednesday a collaboration with the U.S. Department of Commerce’s International Trade Administration to find the best location for its planned rare earth separation facility.

This partnership, through the SelectUSA program, aims to find a cost-effective site for the plant, and to contribute to a resilient supply chain for critical materials essential in the U.S. high-tech sectors.

The location study will evaluate potential sites for Aclara’s separation facility with a focus on operational efficiency, cost management, and project timelines, the rare earths developer said in a statement.

“Aclara believes that it can contribute towards securing a resilient and independent supply chain for rare earths, which are critical materials for electromobility and other key high-tech sectors of the U.S. economy,” chief financial officer François Motte said.

Aclara aims to produce high-purity mixed rare earth concentrate (MREC) from its Penco module in Chile and the Carina project in Brazil. The company plans to use its patented technology designed to extract heavy rare earths from ionic clays. 

Read more at: https://www.northernminer.com/fast-news/us-government-to-assist-aclara-with-location-study-for-new-facility/1003873185/

#DOE Announces $2.26 Billion Loan to #Lithium Americas Corp.

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As part of the Biden-Harris Administration’s Investing in America agenda, the U.S. Department of Energy (DOE), through its Loan Programs Office (LPO), today announced the closing of a $2.26 billion loan to Lithium Americas Corp’s subsidiary, Lithium Nevada Corp. (including $1.97 billion of principal and $289.7 million of capitalized interest), to help finance the construction of facilities for processing lithium at Thacker Pass in Humboldt County, Nevada.

The project is located next to a mine site that contains the largest confirmed lithium resource in North America. Once fully operational, the facilities are expected to produce approximately 40,000 tonnes per year of battery-grade lithium carbonate—supporting good-paying, high-quality jobs while helping ensure the United States can meet anticipated skyrocketing demand for the critical minerals necessary for the clean energy future. Today’s announcement reinforces the Biden-Harris Administration’s whole-of-government approach to building America’s clean transportation future, boosting America’s global manufacturing competitiveness, and securing reliable domestic critical minerals supply chains.  

Read more at: https://www.energy.gov/lpo/articles/doe-announces-226-billion-loan-lithium-americas-corp

#India reaches out to critical mineral producers for processing technology

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NEW DELHI: India has reached out to key critical mineral producers to bring in processing technology into the country, officials said. The move comes close on the back of the government rolling out auctions of critical mineral mines.

“Talks are on with the United States (US), Australia, and United Kingdom (UK), South Korea, and Japan for processing technology. Brazil and Argentina are also positive about collaborating with India,” a senior mines ministry official told ET.
According to another official aware of the plan, agreements with countries are being lined up and will soon be signed.

While India is going ahead with auction of mines holding critical minerals, there are no facilities for their beneficiation.

“We want to target India’s first critical mineral beneficiation and processing plant in the next 3-5 years,” the official quoted above said. “We want to ensure that development of critical mineral processing and extraction happen in parallel.”

Read more at: https://economictimes.indiatimes.com/industry/indl-goods/svs/metals-mining/india-reaches-out-to-critical-mineral-producers-for-processing-technology/articleshow/108924719.cms?from=mdr

A millennial is building #America’s first #Nickel-#Cobalt refinery

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America had no nickel-cobalt refineries of its own.

The promise of the largesse doled out by the Inflation Reduction Act (IRA), Joe Biden’s signature bill to catalyse America’s clean-energy transition. Subsidies for electric cars attracted $110bn in investments in green manufacturing and battery-making within a year of the IRA’s passage in 2022. But as firms boosted production it became clear that China’s grip on the world’s mineral mines and refineries could prove perilous for its political foes. If China decides not to export refined metals tomorrow, as it has threatened to do, dozens of brand-new American gigafactories could soon sit idle.

Even with subsidies, mining and refining in America are not for the faint of heart. Regulations can make both activities uncompetitive. But the maths flipped in refiners’ favour in December 2023 when the tax agencies charged with implementing the IRA made it more protectionist. Their new rules clarified that companies selling electric cars made with materials processed by firms with at least 25% Chinese ownership are ineligible for subsidies. For makers of batteries and cars this was bad news—their inputs got pricier overnight.

Read more at: https://www.economist.com/united-states/2024/02/29/a-millennial-is-building-americas-first-nickel-cobalt-refinery

#China likely to beat #Europe, #US in meeting battery metals demand through recycling – study

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China is the most likely candidate to first meet its entire demand for the three most important raw materials for batteries – lithium, cobalt and nickel – through recycling, new research has found.

According to a study by a team at the University of Münster, the race to achieve a complete circular economy for key battery metals will see Europe arriving in second and the US in third place.

In detail, the results show that China is expected to be able to employ recycling to meet its own demand for primary lithium for electric vehicles from 2059 onwards; in Europe and the US, this will not happen until after 2070. 

When it comes to cobalt, recycling is expected to ensure that China will be able to meet its needs after 2045, at the earliest; in Europe, this will happen in 2052 and in the US not until 2056.

Finally, for nickel, China can probably meet demand through recycling in 2046 at the earliest, with Europe following in 2058 and the US from 2064 onwards, according to the report.

Read more at: https://www.mining.com/china-likely-to-beat-europe-us-in-meeting-battery-metals-demand-through-recycling-study/

#China metals firms see #US rules unlikely to upend supply chains

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Chinese firms producing and processing battery materials see new US rules aimed at limiting Beijing’s grip on the electric-vehicle industry as less stringent than feared, allowing them to preserve a key role in the global supply chain.

Washington’s move, which seeks to cut China out of US tax credits and curb the country’s control over joint ventures, created uncertainty at the end of last week, with questions swirling around the status of Chinese-owned battery-material operations outside the mainland, and over the impact on the wider car and battery industry.

Read more at: https://www.mining.com/web/china-metals-firms-see-us-rules-unlikely-to-upend-supply-chains/

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