Today we look at the global sulphur disruption, along with the US push on critical minerals and Congo’s move to stockpile cobalt.
We often focus on mines and processing capacity when discussing critical minerals. Most current strategies are built around acquiring mining resources, stockpiling output, or developing refining capabilities. But supply ultimately depends on a broader set of inputs that sit between these stages.
One such input is sulphuric acid.
This week, China decided to halt exports of sulphuric acid - a key raw material used in the leaching process for metals like copper and cobalt. The move comes at a time when the system is already under immense pressure. Disruption in the Middle East has tightened sulphur supply - the primary feedstock for sulphuric acid - pushing prices up and affecting downstream markets.
China’s decision appears aligned with a broader focus on maintaining domestic stability, particularly for fertilisers and food systems where sulphur plays a critical role.
For the metal industry, sulphuric acid sits between mining and refining. It is essential to hydrometallurgical processing for copper, cobalt, lithium, and rare earths. Thus when access to this input tightens, the impact doesn’t show up at the mine or the refinery directly but shows in the linkage between them.
Take Chile, for example. Around 20% of its copper production depends on continuous sulphuric acid supply. Similar dependencies appear in Congo and Indonesia. Even if the ore is available and processing capacity is there, no output will come if the inputs are not available at all.
Producers can work with higher prices. But without availability, processing cannot happen.
This episode highlights an important challenge in the minerals supply chains. Expanding mining output or building refining capacity assumes that the intermediate inputs remain available and tradable. However, events like this show how interconnected these supply chains are and how those dependencies can become constrains quite quickly.
Amazing how the 21st century green transition is dependent on the availability of a 19th century industrial chemical.
Strategic Signals:
US shifts from Intent to Execution for Critical Minerals:
US department of Energy has backed 5 technology companies with $5.4mn to help establish a secure, domestic supply chain for gallium - a critical material for the defense and semiconductor sectors in which US has 100% import dependency.
The Trump Administration is fast enabling deals and investments in the critical minerals.
Congo creates strategic cobalt reserve to influence supply and prices, regulator says
Democratic Republic of Congo has established a strategic reserve for cobalt and other critical minerals, strengthening its ability to stockpile unused export quotas and exert more control over global supplies.
Under the quota framework, Congo would reserve 10% of national cobalt export volumes for strategic use by the state. What’s left to see is if they provide provisions towards Chinese companies due to their extensive financial and gepolitical influence in the region.
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