Feature: US lithium landscape faces uncertainty, strategic shifts emerge

Recent developments in the US energy and mining sectors are highlighting funding uncertainties and mineral security.

Since President Donald Trump signed his "Unleashing American Energy" executive order on Jan. 22, funds from the Inflation Reduction Act and bipartisan infrastructure law were paused, raising concerns about billions in loans for renewable energy and battery projects.

US district courts have issued temporary restraining orders against the freezer, citing legal concerns.

Projects at risk include Calumet Specialty Products' sustainable aviation fuel expansion and Lithium Americas' Thacker Pass lithium mine, both of which could face delays. The Department of Energy has committed more than $60.6 billion in loans for clean energy projects, but the new administration's review raises uncertainty.

Brian Menell, CEO of TechMet, emphasized the importance of US critical mineral security, particularly in countering Chinese dominance. His company, valued at over $1 billion, plans to expand mining investments in Africa, focusing on collaboration with local communities.

Meanwhile, the California Energy Commission approved more than $61 million in energy storage grants, including $28 million for a Long Duration Energy Storage system to support critical hospital operations.

Collaborations

The mining sector is consolidating, with Rio Tinto's $6.7 billion acquisition of Arcadium Lithium aimed at boosting lithium production. Additionally, discussions between the US and Ukraine could reshape mineral supply chains, enhancing domestic economic independence from China.

Also, the US neighbor Rock Tech Lithium, from Canada has partnered with Arcore to form a new European entity, NewCo, to integrate Rock Tech's lithium converter facility in Guben, Germany. The company is also focused on ensuring the Lopare project development aligns with local stakeholder interests and adheres to environmental, social, and governance standards.

Additionally, Canadian miner Hudbay Minerals has announced plans to invest $25 million in 2025 in upgrades at its Constancia copper-molybdenum mine in Peru, aimed at addressing declining ore grades. The company is installing a pebble crusher at the Constancia mill, which operated at a capacity of 87,000 mt/d in Q4.

Hudbay has set production targets for 2025 of 80,000-97,000 mt of copper, 1,300-1,500 mt of molybdenum, 49,000-60,000 oz of gold and 2.48 million-3 million oz of silver. All-in sustaining costs have increased to $1.86/lb, from $1.81/lb the previous year.

As the energy and mining sectors navigate these challenges, strategic resource management and international collaboration could be key to a sustainable future.

Platts daily DDP US battery grade lithium carbonate was assessed at $11,000/mt Feb. 26, stable on the day and down $100 over the week, reflecting standard battery-grade quality, min 99.5% Li2CO3, delivered 15-60 days forward.

Platts daily DDP US battery grade lithium hydroxide closed at $11,100/mt Feb. 26, also unchanged on the day and down $100 on the week, reflecting standard battery-grade quality, min 56.5% LiOH H20, delivered 15-60 days forward and a minimum volume of 5 mt.

Platts is part of S&P Global Commodity Insights.