According to foreign media reports, ASX-listed Lindian Resources signed a binding agreement to acquire a 51% equity stake in the Sareco Mixed Rare Earth Carbonatite (MREC) processing plant in Kazakhstan. The plant was previously operated by a joint venture between Japan’s Sumitomo Corporation and Kazakhstan’s national atomic energy company, Kazatomprom, and will now be jointly operated by Lindian (51%) and its domestic joint-venture partner, the RA Group (49%). The acquisition will upgrade Lindian’s business from rare earth concentrate production to higher-value MREC production, significantly improving its economic returns.

On Feb 24, 2026, China placed 20 Japanese firms, including Subaru, on an export control watchlist for unverifiable end-use of dual-use items. This signals tighter controls on critical minerals and tech amid geopolitical and supply chain shifts. The analysis examines the firms' supply chain roles and the long-term industrial implications.

On February 24, 2026, China's Ministry of Commerce issued Announcement No. 12 of 2026, adding 20 Japanese entities, including Subaru Corporation, to the export control "watch list" on the grounds of "inability to verify the end-users and end-uses of dual-use items." This move marks the first time since January 2026 that China has explicitly implemented such list-based management measures targeting Japanese enterprises, signaling a shift toward more precise, systematic, and in-depth development of export controls in the fields of critical minerals and high-tech materials. This article will conduct an in-depth analysis of the core backgrounds of these 20 enterprises, reveal their deep-seated connections with supply chains of critical materials such as rare earths, and explore the potential impact of this measure on the future global industrial landscape.

[SMM Survey: North American Magnesium Industry Accelerates Layout, Chinese Export Prices Rise, Global Magnesium Market Awaits Post-Holiday Volume Release] Recently, the global magnesium industry has shown a pattern of accelerated regional layout alongside trade competition. In North America, Western Magnesium relocated to a new plant in Las Vegas, accelerating the construction of its clean magnesium demonstration production line; it plans to commission its continuous vacuum reduction process within six months, aiming to verify scalability feasibility and promote low-carbon magnesium production. Innomin Minerals is advancing a large magnesium ore project in British Columbia, Canada, with drilling confirming near-surface wide mineralization, magnesium grade consistently above 20%, leaching recovery rate close to 99%, and associated nickel, cobalt, and platinum group metals further highlighting the resource value. On the export market, post-Chinese New Year, China's magnesium ingot FOB offers broke through $2,400-2,450/mt, showing a significant increase compared to pre-holiday levels. Orders accumulated during the holiday are mainly for March shipment, with concentrated post-holiday shipments by traders boosting short-term activity; however, overseas buyers, affected by high ocean freight rates and high prices, are placing orders cautiously, with a strong wait-and-see sentiment. Industry insiders expect a potential peak in new overseas orders from late February to early March, with subsequent trends needing to monitor the pace of European inventory digestion and changes in ocean freight rates.

I. Cobalt Price Review During Chinese New Year During the 2026 Chinese New Year holiday (February 15 to February 23), domestic refined cobalt electronic night session trading saw prices rebound slightly from previous lows. The spot market was relatively sluggish due to logistics suspensions. Overseas prices showed divergence: the low end of standard-grade refined cobalt remained stable, while the high end increased by $0.1/lb; both low and high ends of alloy-grade refined cobalt rose by $0.3/lb and $0.4/lb, respectively. CIF China cobalt hydroxide prices remained stable. II. Market Dynamics Cuba's fuel shortage will force Sherritt to suspend its nickel-cobalt operations: Due to ongoing tight fuel supply in Cuba, Sherritt International Corp. plans to suspend mining and processing operations at its Moa nickel-cobalt joint project and has already scaled down operations ahead of schedule, with suspension expected in the short term. Planned maintenance will be conducted during the shutdown. Failure to secure fuel deliveries is the direct cause of the suspension; the company is communicating with relevant parties and evaluating alternative input sources. The project, in partnership with state-owned General Nickel Company SA, typically ships semi-finished products to a refinery in Alberta, Canada, which has an integrated capacity of approximately 38,200 mt. However, this production accounts for a relatively small share of global nickel supply, so the impact on the international market is limited, though it will affect the company's finances and Cuba's economy. Meanwhile, Energas SA, an energy joint venture in which Sherritt holds a one-third stake, continues normal operations, supplying natural gas for power generation to Cuba's power grid, unaffected by this incident. Overall, the suspension reflects the direct constraints of Cuba's long-term economic and energy crisis on industrial projects. Sumitomo's Madagascar nickel-cobalt project shuts down due to cyclone damage: Japan's Sumitomo Corporation stated on February 18 that its Ambatovy nickel-cobalt project in Madagascar was shut down after Tropical Cyclone Ghezani hit the island last week, causing facility damage. Operations were suspended immediately once signs of the cyclone became apparent, with safety as the top priority, the company said in a statement. It added that a detailed assessment of the damage, including equipment conditions and the impact on revenue, is currently underway. Sumitomo will work to identify the extent of the losses as soon as possible and collaborate with relevant parties to implement appropriate recovery and reconstruction measures, the statement added. A company spokesperson said the timeline for restarting operations is undetermined and assessing the extent of the damage is expected to take several weeks. Ambatovy is owned by Sumitomo, with state-owned Korea Mine Rehabilitation and Mineral Resources Corp (KOMIR) producing approximately 28,000 mt of nickel and about 2,500 mt of cobalt in 2024. III. Post-Holiday Outlook Supply side, cobalt raw materials from the DRC are still unable to be replenished in the short term, and enterprises are facing pressure from raw material shortages. Coupled with production halts at some enterprises during the Chinese New Year holiday, production plans have been reduced. Refined cobalt production in February is expected to remain low, and the overall supply of cobalt salts is projected to decline slightly. Demand side, prior to the Chinese New Year, some downstream ternary cathode precursor enterprises showed increased purchase willingness and active inquiries due to concerns about rising cobalt sulphate prices after the holiday. However, as logistics were about to halt at that time, actual transactions were relatively limited. With the resumption of logistics after the holiday and downstream enterprises gradually resuming production and restocking, demand is expected to be gradually released. Looking ahead, against the backdrop of continued support from raw material costs, phased tightening of supply, and phased recovery in demand, refined cobalt and cobalt salt prices are expected to resume an upward trend.

【SMM Vanadium Express】A joint venture between Sumitomo Corporation and a Kazakhstan-based partner has commenced the construction of a vanadium electrolyte production facility, aiming for completion by late 2025.

On June 12th, Bloomberg reported that Teck Resources and Sumitomo Metal Mining are locked in a dispute over treatment and refining charges (TC/RCs) in a major copper concentrate supply agreement. The disagreement, centered on shipments from Teck’s Quebrada Blanca and Highland Valley mines, has prompted the appointment of lawyers to select an industry expert as an independent referee. The clash highlights cracks in the traditional benchmark pricing system, after Antofagasta’s 2025 deal with Chinese smelters set TC/RCs at $21.25/2.125 cents, far below historical norms. Some Japanese buyers, including Sumitomo, have resisted adopting this benchmark amid sharply falling spot TC/RCs, which have recently turned negative. The situation underscores growing tension between well-funded Chinese smelters and financially pressured Western peers, with some smelters in the Philippines and Namibia already suspending operations.

On Friday, Mitsuhiro Furusawa, a former Japanese vice finance minister, stated that amid the narrowing trend of the interest rate gap between the US and Japan, the yen is expected to continue appreciating against the US dollar, potentially reaching around 135-140 yen per US dollar by the end of the year. Furusawa previously served as a deputy managing director at the International Monetary Fund (IMF) and as Japan's vice finance minister for international affairs, making him the top official responsible for exchange rate matters in Japan. Currently, he serves as the president of the Sumitomo Mitsui Banking Corporation's Global Financial Affairs Research Institute, maintaining close ties with current central bank policymakers in Japan and overseas. Yen Expected to Continue Appreciating The market widely speculates that Trump, who previously accused Japan of currency manipulation, will pressure the Japanese government to help weaken the US dollar against the yen to give US exports a trade advantage. However, Furusawa stated that it remains unclear whether the Trump administration will explicitly adopt a weak dollar policy. "It is not easy for policymakers to intentionally push down the dollar," Furusawa said. "After clearly stating that tariffs are the main tool (for negotiations), I believe the US government does not need to rely too much on currency to achieve its goals." Nevertheless, Furusawa noted that the US may wish to avoid further appreciation of the dollar to prevent harm to exports. Meanwhile, Japan aims to prevent excessive yen weakness from driving up inflation. "Therefore, their intentions in this regard are aligned. This suggests that the yen may gradually appreciate," he said. Additionally, the divergence in monetary policy directions between Japan and the US will also support the yen. Amid widespread market concerns about a US recession triggered by tariff shocks, there is speculation that the US Fed's next move could be an interest rate cut, while the Bank of Japan (BOJ) is currently considering further rate hikes. BOJ Governor Kazuo Ueda recently stated that if Japan's economic conditions improve and inflation continues to meet the 2% target, the central bank will proceed with rate hikes. However, he also hinted that rate hikes would need to wait until the impact of Trump's tariffs becomes clearer. "If Japan successfully reaches a broad trade agreement with the US—possibly at the G7 summit this month—it will reduce uncertainty," Furusawa said. Once real wages in Japan rise, it will support consumption. "If we see these positive developments, the BOJ may raise interest rates again in the second half of the year," Furusawa said, adding that the yen "may appreciate to around 135-140 yen per US dollar by the end of the year." As of press time this Friday, the US dollar-Japanese yen exchange rate was hovering around 144.11. Furusawa said that the Bank of Japan may ultimately want to raise its short-term policy interest rate target, currently at 0.5%, to above 1%, though success is uncertain. Japan may struggle to use US debt as a bargaining tool Japan is continuing trade negotiations with the US, with a focus on making progress on automobile tariffs. According to Japanese media reports, the two sides may seek to reach an agreement before the G7 summit on June 15-16. Last month, Japanese Finance Minister Shunichi Suzuki said that Japan might use its holdings of over $1 trillion in US Treasury bonds as leverage in trade negotiations with the US government, a statement that caused a stir. However, Furusawa believes that as a negotiating strategy, it is reasonable for Japan to claim that "all options are on the table." But it is doubtful whether Japan can actually use US debt as a bargaining tool. He explained that part of the reason is that if Japan were to actually sell off US Treasury bonds, it could anger Trump and disrupt trade negotiations, potentially backfiring.

Sumitomo Electric Industries announced that its vanadium redox flow battery energy storage system (BESS) and energy management system sEMSAR have been adopted by the Kuroyama Solar Power Plant in Minamikyushu City, Kagoshima Prefecture. The project was designed and constructed by Mitaden Co., Ltd., and a completion ceremony for the "Kuroyama Solar Power Generation Facility Project" was held on April 22.

According to a report from Mining.com, Gerard Rheinberger, manager of Rio Tinto's Simandou project, announced on Monday that the Simandou iron ore mine in Guinea is expected to produce its first ore in November this year. Located in the new south of Guinea, the Simandou iron ore mine will become the world's largest high-grade iron ore mine, with its iron ore being a key raw material for low-carbon steelmaking. Once operational, the mine is expected to produce 120 million mt of iron ore annually. Rio Tinto, the world's largest iron ore producer, holds a 25% stake in the project, with the remaining shares owned by Chinese enterprises. The Simandou iron ore deposit is divided into four blocks: Simfer, a joint venture between Rio Tinto, Chalco Iron Ore Holdings Limited, and the Guinean government, is developing Blocks 3 and 4 in the south. The northern blocks are being developed by a consortium. Rio Tinto also disclosed that it has reached an agreement with Sumitomo Metal Mining Co., Ltd. to transfer a 30% stake in its Winu copper-gold project in Western Australia to the latter. The $399 million deal includes an upfront payment of $195 million and an additional payment of $235.4 million based on future project progress, including funds required for project expansion. In December last year, the two companies agreed to establish a joint venture to develop and operate the Winu copper mine. The mine, discovered by Rio Tinto in 2017, has not yet been developed. As of the end of 2024, the Winu copper-gold mine has inferred and indicated ore resources of 741 million mt, containing approximately 3 million mt of copper and 250 mt of gold. Rio Tinto is currently advancing a feasibility study for mining and processing 10 million mt of ore annually and has already applied for environmental permits.