Battery Metals and Rare Earths: Lithium, Nickel, Cobalt — 2026-09-12
Indonesian nickel royalty revenues doubled to IDR 21 trillion by August 2026 despite lower ore production, signaling a shift toward value-added smelting. Meanwhile, lithium stocks slid on ample supply concerns, with Chinese carbonate prices dipping to 144,750 CNY/tonne, and cobalt rallies faded as DRC exports resumed under new quotas.
Battery Metals and Rare Earths: Lithium, Nickel, Cobalt — 2026-09-12
Top developments
Indonesia’s Nickel Royalties Hit IDR 21 Trillion Amid Production Cuts
The Indonesian Ministry of Energy and Mineral Resources (ESDM) reported that non-tax state revenue (PNBP) from nickel reached IDR 21 trillion ($1.3 billion) through August 2026, a two-fold increase from previous years. This surge occurred despite a decline in raw ore production, which stood at 173.79 million tons by September 1, 2026, compared to 320.37 million tons in all of 2025. The data highlights the success of Indonesia’s "hilirisasi" (downstreaming) policy, where higher value-added processing offsets volume constraints.
Lithium Equities Slide as Supply Comfort Overwhelms Demand
Lithium stocks faced pressure on Friday, September 11, with the LIT ETF falling 2.66% to US$71.81. Major producers Albemarle and SQM dropped roughly 3-4% amid concerns over ample supply. In China, battery-grade lithium carbonate spot prices slipped 0.69% to 144,750 CNY/tonne, reflecting a market where supply availability is currently outweighing demand signals.
Cobalt Rally Fades as DRC Export Quotas Take Effect
The recent surge in cobalt prices is reversing as exports from the Democratic Republic of Congo (DRC) pick up under the country's strict new export quota regime. This development tests Kinshasa’s ability to control global prices, as increased shipment volumes challenge the scarcity narrative that drove earlier gains.
R3 Lithium Launches Georgia Recycling Complex
R3 Lithium announced the launch of a recycling complex in Georgia designed to produce 99%-pure lithium carbonate from scrap materials. The facility targets supplying over 50% of U.S. output by 2027, representing a significant shift toward domestic secondary supply chains for battery metals.
Local view
Indonesia: Local media outlets Mediaindonesia and Antaranews are highlighting the ESDM's report that nickel PNBP reached IDR 21 trillion by August 2026. Stakeholders note this "double jump" in revenue validates the government's strategy of restricting raw ore exports in favor of domestic smelting, even as physical ore production volumes decrease.
Chile: Revista Digital Minera REDIMIN reports that Chile has fallen to third place in global lithium production rankings, surpassed by China, despite growing its own output by 14.5% in 2025. This shift underscores the intensifying competition in the lithium triangle and China's expanding role in global lithium supply chains.
Context & numbers
- Lithium Carbonate (China): 144,750 CNY/tonne (spot price, Sept 11).
- Nickel PNBP (Indonesia): IDR 21 trillion (approx. $1.3B USD) through August 2026.
- Chile Lithium Production: Grew 14.5% in 2025 but dropped to #3 globally behind China.
- LIT ETF Performance: Fell 2.66% to US$71.81 on Sept 11.
On the radar
- China Rare Earth Export Controls: Market participants are watching for China’s expected export controls in November 2026, which may affect access to rare earth refining technology and feedstock for non-Chinese refiners.
- El Niño Impact on Indonesian Nickel: Local reports indicate that El Niño-induced droughts are affecting water supplies for smelters in the IMIP industrial park in Morowali, potentially threatening nickel export volumes in late 2026.
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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