Lithium Mines Roar Back to Life

Mineral Resources will restart its Bald Hill lithium mine in Western Australia after an 18-month hiatus, betting that a rebound in prices of the battery material will support renewed production , according to Bloomberg. A ramp-up in activity at the site will begin in late May, with crushing and mining operations to start in June and first production of spodumene concentrate from July , the company announced Monday.

The restart follows a significant and sustained recovery in lithium prices and reflects extensive planning undertaken over recent months to ensure the operation can be brought back online safely and efficiently , Mining.com reported. Spot battery-grade lithium carbonate rose from about $13,433 per metric ton in early December to $26,278 by late January, a 95 percent increase , according to Investing News Network. The rally marks a dramatic turnaround from the price collapse that forced MinRes to place the mine under care and maintenance in November 2024 in a move to "preserve capital and protect the long-term value of the operation" .

Can Restarts Keep Pace With Demand?

The Bald Hill restart isn't happening in isolation. The rally reflects growing supply-side pressure, including delays at key operations such as CATL's Jianxiawo lepidolite mine in China, ongoing maintenance at other facilities and increased competition for material tied to long-term contracts , according to Fastmarkets data cited by Investing News Network.

Located 50km south-east of Kambalda in the Goldfields region of Western Australia, Bald Hill has a production capacity of approximately 165,000 dry metric tonnes per annum of 5.1% spodumene concentrate, equivalent to 140,000dmt of SC6 per annum , Mineral Resources stated. The company expects restart costs, including working capital, of about A$20 million in the fourth quarter of the 2026 financial year , according to Arabian Post. About 370 jobs are expected to be created, including roughly 110 redeployments from other company operations .

Meanwhile, Reuters reported that Compass Minerals plans to jump back into the lithium market by partnering with technology startup EnergyX to extract the battery metal from Utah's Great Salt Lake . The move comes after Compass suspended its lithium project in 2023 due to regulatory uncertainty in Utah. Mining.com noted that the company's latest initiative — internally dubbed "Project Powderhound" — marks EnergyX's third lithium project and its second in the US .

Why Is the Pentagon Scrambling on Rare Earths?

While lithium miners celebrate price recoveries, the Pentagon faces a more urgent crisis. Bloomberg reported that from an office a few blocks from the White House, a group of former Wall Streeters is at the forefront of the Pentagon's plan to crack China's critical-minerals stranglehold, with their goal to create an independent source for the rare earth elements and magnets used in everything from microwave ovens to missiles and prevent a repeat of last year, when President Donald Trump was forced to back down in his trade war after China cut off supplies .

An ominous Pentagon deadline looms large, with the entire American defense system to be banned from using any Chinese-origin rare earths materials beginning in January 2027 , according to OilPrice.com. With fewer than eight months on the clock, Washington is sounding the alarms at full blast .

The challenge is immense. China now dominates, controlling nearly 90% of global output of rare earth processing, NPR reported. Global appetite for dysprosium and terbium alone runs into the thousands of tons annually, according to industry estimates, but in the first quarter of 2026, Lynas produced a combined 8 tons of them , Bloomberg noted.

Defense One reported that investments and effort the Defense Department has made "represent the scale of [the] challenge: a billion dollars direct investment, nearly, and then commitments to buying rare earths, billions of dollars in the National Defense stockpiles, $5 billion from Congress within the industrial base fund to go ahead and invest in mineral deals" , according to assistant defense secretary for industrial base policy Mike Cadenazzi.

Can Congo Secure Its Mineral Wealth?

In Africa, the Democratic Republic of Congo is taking unprecedented steps to protect its critical mineral assets. Al Jazeera reported that the DRC plans to set up a paramilitary unit to secure the country's large mining sites, with the General Inspectorate of Mines announcing the creation of "the mining guard" on Monday, backed by investments from the United States and United Arab Emirates as Washington and its ally seek to lock in access to the minerals .

The $100m programme is being funded through partnerships with the US and UAE , the IGM stated. By the end of 2028, a gradual deployment is planned of a workforce of more than 20,000 guards covering the 22 mining provinces under IGM supervision .

The stakes are enormous. The Central African nation is responsible for about 70 percent of the global output of cobalt, a key mineral in the production of electric car batteries and defence technology , Al Jazeera noted. The country also has some of the world's richest deposits of copper, coltan and lithium .

However, researchers warn of limitations. According to The Conversation, the overall goal is to reduce smuggling, replace corrupt security forces, and improve transparency and the traceability of minerals, while the initiative also aims to limit the influence of armed groups, which have long been active in parts of eastern DRC and are often linked to illegal mining and the trade of minerals .

What About Copper?

Copper markets are also experiencing volatility amid the broader critical minerals surge. According to Trading Economics, copper fell to 6.25 USD/Lbs on May 15, 2026, down 4.81% from the previous day, though over the past month, copper's price has risen 3.05%, and is up 37.36% compared to the same time last year .

S&P Global reported that the 2026 average LME copper price forecast stands at just above $12,100/t . Analysts emphasized that the copper concentrate market is expected to remain tight for years, with a cumulative deficit of ~3 million tonnes projected by 2036 .

Mining.com noted that copper futures touched an all-time high above $6.58 per pound on May 12, 2026, capping a 40.86% gain over the prior twelve months as supply tightness collided with structural demand from grid build-out, electric vehicles, and AI data centers .

What Changed This Week

The mining and critical minerals sector experienced a fundamental shift as shuttered lithium operations in Australia came back online after 18 months of dormancy, driven by prices that nearly doubled since December. The Pentagon's race against a January 2027 deadline to eliminate Chinese rare earth materials from defense supply chains intensified, with billions in investments flowing to domestic processing capabilities. Meanwhile, the Democratic Republic of Congo launched a $100 million paramilitary mining guard backed by the US and UAE to secure cobalt and copper supplies amid ongoing conflict in mineral-rich eastern regions.

What to Watch

The lithium market faces a critical test in the coming months as multiple Australian mines ramp up production while demand from energy storage systems continues accelerating. The Pentagon's January 2027 deadline for eliminating Chinese rare earth materials will force decisions on domestic processing investments and alternative supply agreements. In Congo, the initial deployment of 2,500 to 3,000 mining guard personnel is expected by December 2026, which could reshape security dynamics across Africa's mineral-rich regions. Copper markets will be watching China's sulfuric acid export restrictions, which affect approximately one-fifth of global copper production, according to industry analysis. Finally, Compass Minerals' partnership with EnergyX on Utah lithium extraction could signal renewed momentum for US domestic lithium projects after regulatory setbacks in 2023.