Industrial & Raw Material Supply Chain Daily — 2026-06-24
Crude oil prices are hovering near four-month lows on hopes for smoother transit through the Strait of Hormuz, while the global EV battery industry faces cobalt supply chain risks. Additionally, China has detained two Japanese nationals on charges of smuggling rare earth materials, signaling stricter supply chain controls.
Industrial & Raw Material Supply Chain Daily — 2026-06-24
1. Commodities Market Trends
Crude Oil (WTI/Brent): WTI crude $72.52/barrel (-0.69, -0.94%), Brent crude $76.37/barrel (-0.71, -0.92%) — Oil prices are continuing their weekly decline as tankers passing through the Strait of Hormuz are expected to clear the area soon. Despite some optimism, energy prices are generally trending downward.
Natural Gas / LNG: Henry Hub natural gas $3.15/MMBtu (-0.06%) — The energy market remains generally weak.
Industrial Metals: Copper $6.14/lb (unchanged), Gold $4,064.70/oz (-65.20, -1.58%) — Gold futures have dropped to a two-week low, continuing to weaken under pressure from a strong dollar and expectations of U.S. interest rate hikes.
Battery Metals: The global EV industry is exposed to cobalt supply chain disruptions. Nearly half of all electric vehicles currently rely on cobalt-based batteries, and despite the adoption of cobalt-free (LFP) batteries by companies like Tesla and BYD, supply chain risks remain high.
2. Supply Chain Issues
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Cobalt Supply Chain Vulnerability: The global cobalt supply chain is highly interconnected and more fragile than expected. Disruptions in one country can trigger a chain reaction across multiple countries and industries, meaning battery supply chain protection requires total systemic coordination.
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Growth in EV Battery Recycling: The global EV battery recycling market is expected to reach $19 billion by 2033, growing at an annual rate of 45%. Governments and automakers are increasing investments in battery recycling.
- China’s Semiconductor Self-Sufficiency and Stricter Controls: China has detained two Japanese nationals, including an employee of a major Japanese electronics firm, for alleged smuggling of rare earth materials. This is a signal that China is tightening its control over the export of critical minerals.
3. Core Industry Trends
Semiconductors
- Deepening Chip Shortage: European OEMs are facing a severe parts shortage in 2026, with the supply of allocated semiconductors across the Bill of Materials (BOM) reaching an urgent state.
Secondary Batteries & EVs
- China’s EV Truck Market Expansion: Beijing is fully pushing into the electric truck market following its success in passenger cars. This measure accelerates new energy vehicle development policies by more than a decade.
Automotive, Shipbuilding & Steel
- Rio Tinto to Triple Lithium Production: Mining giant Rio Tinto plans to make lithium its fastest-growing business unit by 2028 to meet demand in the EV and battery storage markets.
4. Corporate Moves
- DHL Group Expands New Energy Logistics: DHL has significantly expanded its new energy logistics capabilities globally to meet the growing demand for energy resilience.
5. Daily Insight
While the drop in oil prices is interpreted as a sign of easing tensions in the Strait of Hormuz, the vulnerability of battery metal supply chains is emerging as a key risk for future EV production. There is growing concern about the ripple effect that a disruption in the single-source cobalt supply chain could have on the entire global battery industry.
China's tightening control over rare earths and semiconductor materials is expected to intensify pressure on global OEMs to diversify their supply chains. As a result, the battery recycling market and the development of alternative materials are gaining strategic importance.
6. What to Watch Next
- U.S. Interest Rate Hikes: The Federal Reserve's rate hike outlook continues to drive dollar strength and precious metal weakness.
- Strait of Hormuz Transit Status: The timing of normalized tanker traffic is key to whether oil prices continue their downward trend.
- China’s Export Control Policy Changes: We need to keep tracking trends in the tightening of controls on rare earths and critical minerals.
7. Reader Action Items
- Re-evaluate Battery Supply Chain Risks: Procurement teams should audit cobalt dependency and review roadmaps for adopting alternative technologies like LFP.
- Respond to Chinese Regulations: Diversify import routes for rare earths and semiconductor materials and establish local self-sufficiency strategies.
- Leverage Falling Oil Prices: Capture opportunities to reduce energy costs, but prepare for volatility caused by shifts in the situation at the Strait of Hormuz.
Source Policy: All figures, company names, and contract details in this briefing are sourced strictly from the original text provided above.
This content was collected, curated, and summarized entirely by AI — including how and what to gather. It may contain inaccuracies. Crew does not guarantee the accuracy of any information presented here. Always verify facts on your own before acting on them. Crew assumes no legal liability for any consequences arising from reliance on this content.
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