Glencore Offtake Deal Increases Recycled Lithium Supply

Glencore announced a $500 million commitment from the US Export-Import Bank to establish a strategic critical minerals reserve, aiming to bolster US supply chains. The partnership, VaultCo, will focus on sourcing and delivering critical minerals to prevent future supply disruptions, according to the company.

Glencore partners with the US government to build a critical minerals reserve. The US Export-Import Bank (EXIM) committed $500m to the deal, with Glencore sourcing and delivering minerals for VaultCo. Glencore also agreed to sell a 40% stake in its DRC operations to Orion CMC, valued at $9bn. VaultCo aims to secure supplies for US industry, with EXIM and private capital backing.

Glencore suspended Peter Hill, its head of steelmaking raw materials, pending a review of its dealings with Singapore-based iron ore trader Radiant World. This follows a $2bn lawsuit by Radiant against Glencore units, alleging misrepresentation in audited accounts. Glencore denies wrongdoing and plans to contest the claims, citing evidence of falsified documents.

Glencore (LON: GLEN) alleges Radiant World fraudulently created emails implying a $100M repayment plan to Mizuho Bank. Mizuho is suing Radiant in Singapore, claiming fraud over iron-ore receivables. Radiant denies wrongdoing, stating the dispute stems from a commercial disagreement with Glencore. Mizuho seeks to place a Radiant unit under judicial management, with $97.28M exposure. Radiant has $870M outstanding to six creditors, including Jefferies and Intesa Sanpaolo.

Nth Cycle, a metals refiner, signed a 10-year, $1B off-take deal with Glencore for its Project SHIELD facility in South Carolina. The agreement covers 100% of feedstock and offtake needs, with Glencore supplying black mass and Nth Cycle providing refined products. The deal aligns with U.S. export controls and DOE funding, targeting final agreements by late 2026.

Nth Cycle, a metals refining startup, signed a $1 billion offtake agreement with Glencore to supply lithium and other critical minerals from recycled batteries. The deal was signed ahead of Nth Cycle's planned public listing later this year and coincides with the UN General Assembly.