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June 2025

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Germany is cutting financial support for charities that rescue migrants at risk of drowning in the Mediterranean, saying it will redirect resources to addressing conditions in source countries that spur people to leave.

For decades, migrants driven by war and poverty have made perilous crossings to reach Europe’s southern borders, with thousands estimated to die every year in their bid to reach a continent grown increasingly hostile to migration.

“Germany is committed to being humane and will help where people suffer but I don’t think it’s the foreign office’s job to finance this kind of sea rescue,” Foreign Minister Johann Wadephul told a news conference.

“We need to be active where the need is greatest,” he added, mentioning the humanitarian emergency in war-shattered Sudan.

Under the previous left-leaning government, Germany began paying around 2 million euros ($2.34 million) annually to non-governmental organizations carrying out rescues of migrant-laden boats in trouble at sea.

For them, it has been a key source of funds: Germany’s Sea-Eye, which said rescue charities have saved 175,000 lives since 2015, received around 10% of its total income of around 3.2 million euros from the German government.

Chancellor Friedrich Merz’s conservatives won February’s national election after a campaign promising to curb irregular migration, which some voters in Europe’s largest economy see as being out of control.

Even though the overall numbers have been falling for several years, many Germans blame migration-related fears for the rise of the far-right Alternative for Germany (AfD), now the second largest party in parliament.

Many experts say that migration levels are mainly driven by economic and humanitarian emergencies in the source countries, with the official cold shoulder in destination countries having had little impact in deterring migrants.

Despite this, German officials suggest that sea rescues only incentivize people to risk the sometimes deadly crossings.

“The (government) support made possible extra missions and very concretely saved lives,” said Gorden Isler, Sea-Eye’s chairperson. “We might now have to stay in harbor despite emergencies.”

The opposition Greens, who controlled the foreign office when the subsidies were introduced, criticized the move.

“This will exacerbate the humanitarian crisis and deepen human suffering,” said joint floor leader Britta Hasselmann.

This post appeared first on cnn.com

Israeli forces shot dead a Palestinian teenager in the West Bank on Wednesday, Palestinian health authorities said, as settler violence against Palestinians surged in the occupied territory.

The military shot 15-year-old Rayan Tamer Hawshiya in the neck, the Ministry of Health in Ramallah said, after troops raided Al Yamoun, near Jenin. Residents in the northern town reported “heavy Israeli gunfire,” according to the minstry.

The Israeli military said that “terrorists hurled explosive devices at IDF forces” in Al Yamoun on Wednesday, adding that no IDF injuries were reported.

Separately, a 66-year-old Palestinian woman died from injuries after Israeli police shot her in the head in occupied East Jerusalem, according to local media reports.

Zahia Joudeh al-Obeidi “succumbed to her wounds” after Israeli police stormed Shuafat refugee camp, Palestinian news agency WAFA reported.

Israeli police said they launched an investigation into the circumstances of the death of an “East Jerusalem resident,” adding that the resident was “pronounced dead” by medical officials upon arrival at Shuafat checkpoint.

The killings came on the heels of a spate of attacks in the West Bank town of Kafr Malik, where Israeli settlers set fire to Palestinian homes and vehicles in what one Israeli opposition politician called a “violent Jewish pogrom.” Several people were killed and wounded, according to Palestinian and Israeli authorities.

The details of the deaths in Kafr Malik are unclear. The Palestinian foreign ministry said the settlers opened fire on Palestinian residents, while Israeli authorities said there was a firefight between Palestinian gunmen and Israeli security forces.

At least three Palestinians were killed and several were wounded, according to Palestinian officials. The Israeli military said “several” people were killed in the central town, but did not specify whether they were Palestinian or Israeli.

Israel has ramped up military operations in the West Bank, displacing thousands of Palestinians and razing entire communities as it targets what it says are militants operating in the territory.

Last year, Israeli Defense Minister Israel Katz said the state “must deal with the threat (in the West Bank) just as we deal with the terrorist infrastructure in Gaza, including the temporary evacuation of Palestinian residents.” He later warned that the tens of thousands of Palestinians who have fled their West Bank homes would not be allowed to return.

Human Rights Watch has accused Israel of inflicting “massive, deliberate displacement of Palestinian civilians” and making “much of the territory unlivable” in violation of international law.

Israeli settlers have also increased attacks on Palestinian communities and their properties, according to the United Nations’ human rights office.

Israeli troops or settlers have killed at least 947 Palestinians, among them 200 children, in the West Bank, including East Jerusalem, between October 7, 2023 and June 12, the UN reported on June 20. Between October 7, 2023 and June 26, at least 39 Israeli civilians have been killed in the West Bank, according to Israeli government officials.

Israel has occupied the West Bank since seizing the territory from Jordan in 1967. In late May, the Israeli government approved the largest expansion of Jewish settlements in the area in decades. The settlements are considered illegal under international law,

‘Stripped of basic dignity’

The IDF said security forces were deployed to the scene after “dozens of Israeli civilians” had set properties on fire. On arrival, the IDF said, the security forces were met with gunfire and rocks hurled by what it described as “terrorists” and they returned fire.

“Hits were identified, and it was later reported that there were several individuals injured and fatalities,” the IDF said, adding that five Israelis were arrested.

Israeli opposition politician Yair Golan condemned the settler attack, saying: “What happened this evening in Kafr Malik was a violent Jewish pogrom – dozens of rioters set fire to homes and vehicles, and assaulted Palestinians and security forces.”

Shortly after the violence in Kafr Malik, there was another settler attack close to the nearby village of Taybeh, according to the Israeli rights organization B’Tselem, which shared footage of masked men torching a parked car. Three people were injured and three cars were set on fire, it said.

A third settler attack took place around Jericho, according to the Palestine Red Crescent Society, which said eight people were injured due to smoke inhalation after a house was set on fire.

A UN official warned there has been “no respite” for Palestinian people in the northern West Bank, where he accused Israel of imposing “systematic forced displacement” on refugee communities in “violation of international law.”

“Out of the spotlight of the regional escalation, camps in the northern West Bank have faced ongoing destruction, with dozens of buildings demolished in the last twelve days,” Roland Friedrich, the director of affairs for UNRWA, the UN agency for Palestine refugees in the West Bank and East Jerusalem, posted on X on Wednesday.

“Even now, Israeli security forces are continuing to demolish homes and buildings in Jenin, Tulkarm, and Nur Shams camps. Stripped of basic dignity, many families have not even been able to save their belongings ahead of anticipated bulldozing.”

This post appeared first on cnn.com

It must have been the last thing NATO’s chief needed.

Late Tuesday, on the eve of a crucial summit that would lock in a generational investment in NATO’s defense, Donald Trump’s Truth Social account pinged with a single photo: a gushing message signed “Mark Rutte,” written in a carbon-copy Trump style and overflowing with sycophantic praise for the US president.

“You are flying into another big success in the Hague this evening,” Rutte’s message read.

“Europe is going to pay in a BIG way, as they should, and it will be your win,” he continued.

“You will achieve something NO American president in decades could get done.”

While the diplomatic world has bent toward many norms of the Trump White House, this was extreme.

Doubling down on the comments the following day, saying Trump deserved credit for his actions on Iran and NATO, Rutte waded through many observers’ incredulity at his kowtowing tone. But as the summit crescendoed, there was a growing sense he may have pulled off a diplomatic masterstroke.

Bromance

Rutte, the former Dutch prime minister, is no stranger to dealings with Trump, having deployed his easy charm in several visits to Washington, DC, during Trump’s first term.

Exuding an easygoing, relaxed image – his signature boyish grin never far from his face – Rutte’s charm offensive echoes that of other NATO leaders.

French President Emmanuel Macron has charted up a boisterous bromance with Trump; Finnish President Alex Stubb bonded with him over rounds of golf, and Italian far-right Prime Minister Giorgia Meloni has won a reputation as something of Trump whisperer: She’s a “fantastic woman,” in Trump’s words.

Rutte’s message – signed with his surname – perhaps spoke of a less pally relationship. So did one of Trump’s reactions Wednesday: “I think he likes me. If he doesn’t, I’ll let you know. I’ll come back and I’ll hit him hard,” Trump announced in his Wednesday news conference.

But in The Hague, Rutte seemed ready to do anything to burnish the US president’s ego and save him face.

Trump’s decision to attack Iran’s nuclear program was “extremely impressive,” the NATO chief told Trump. “The signal it sends to the rest of the world that this president, when it comes to it, yes, he is a man of peace, but if necessary, he is willing to use strength.”

Time and again around the summit, Rutte’s interjections soothed Trump’s passage – softening his landing after a fiery “f**k” at Iran and Israel’s latest exchange of missiles lit up international headlines.

Rutte’s response: a jokey aside in front of the world’s cameras.

“Daddy has to sometimes use strong language,” he said beside Trump, after the US president used the analogy of two children fighting to describe the conflict between Iran and Israel.

Rutte later said he wasn’t referring to Trump as “daddy” but was merely using a metaphor.

The Dutchman didn’t spare praise for Trump’s strikes on Iran – a conflict technically outside the NATO wheelhouse – as the president railed against suggestions in a leaked government assessment that undercut his claim the strikes “obliterated” parts of Iran’s nuclear program.

“I do think this is a kind of hold-your-nose moment. Ensure there are no fireworks in The Hague. Get a good photo op and go home,” she added.

Beyond Rutte, the whole summit was sculpted around Trump.

Slimmed down, the schedule featured a single session for leaders; experts have suggested this was for Trump, who earlier this month skipped the ending of the G7 summit, missing a meeting with Ukrainian President Volodymyr Zelensky.

Of course, the summit result is largely pre-ordained, after rounds of pre-negotiations to ensure the leaders had to only rubber-stamp declarations.

Ukraine’s war with Russia – by far the most pressing issue on NATO’s agenda – was also excised from the summit’s final declaration, the first time it has been missing since Russian President Vladimir Putin’s full invasion of Ukraine in 2022.

Even the crown jewel of the gathering, the promise to spend 5% of gross domestic product on defense (split into core defense requirements and 1.5% on defense-related spending by 2035), was a Trump-branded product.

Back in January, Trump lofted the idea of a 5% spending target for NATO members, a figure that hadn’t been given serious consideration before, as members limped towards 2%.

“They can all afford it. They’re at 2% but they should be at 5%,” he told journalists.

The ends, not the means

But Rutte may have had the last laugh.

The summit was, by all accounts, a win for NATO: Members unanimously agreed to boost spendings to post-Cold War highs – and thanked Trump for it.

Spain was a notable exception, pushing for softened language that may have left a loophole for the Iberian nation to meet its responsibilities for NATO military capabilities without having to spend 5% of GDP. (The final summit declaration signed by NATO members referred only to “allies” in its clauses on spending, while others spoke of commitments “we” will make.)

Leaders – led, of course, by Rutte – singled out Trump as the sole pressure responsible for finally corralling NATO allies to previously unthinkable spending targets.

Boosted defense spending “is the success of President Donald Trump,” Polish President Andrzej Duda told journalists at the summit.

“Without the leadership of Donald Trump, it would be impossible,” he added.

His Lithuanian counterpart suggested a new motto for the alliance, “Make NATO great again,” as he welcomed the pressure Trump had levied on stingy allies.

Everybody wins

But in public, comment on Rutte’s messaging to Trump was largely off limits, with leaders waving off or swerving around questions.

Finland’s president wouldn’t be drawn on the NATO secretary general’s messages, but he said, however, “Diplomacy has so many different forms.”

Casualties – particularly from diplomatic skirmishes with Trump – were fewer than expected. Only Spain caught flak from the US president over its foot-dragging over the 5% GDP spend.

“It’s terrible what they’ve done,” Trump said, threatening to use trade talks to force Madrid into line. “We’re going to make them pay twice as much,” he said.

Even Zelensky – who has had a turbulent relationship with Trump – came away with wins.

While he stopped short of committing further US aid to Ukraine, Trump suggested Kyiv may see future Patriot missile system deliveries from the United States – and he slammed Putin as “misguided,” conceding the Russian leader may have territorial designs that extend further than Ukraine.

Finally, Trump’s own views on NATO – often a prickly subject for the famously transactional president – saw a reversal.

“These people really love their countries,” Trump said of the NATO leaders at his news conference concluding the NATO summit. “It’s not a rip-off, and we’re here to help them protect their country.”

“I came here because it was something I’m supposed to be doing,” he added, “but I left here a little bit different.”

This post appeared first on cnn.com

Editor’s Note: Help is available if you or someone you know is struggling with suicidal thoughts or mental health matters.
In the US: Call or text 988, the Suicide & Crisis Lifeline.
Globally: The International Association for Suicide Prevention and Befrienders Worldwide have contact information for crisis centers around the world.

Japan has executed a man dubbed the “Twitter killer,” who was convicted of murdering and dismembering nine people, mostly women, in the country’s first use of capital punishment in nearly three years.

Takahiro Shiraishi, 34, was hanged Friday at the Tokyo Detention House. He was sentenced to death in 2020 after pleading guilty to killing the nine people – eight women and one man.

Shiraishi was arrested in October 2017 after police searched his home in the city of Zama in Kanagawa prefecture, on the outskirts of Tokyo, to investigate the disappearance of a 23-year-old woman who had expressed suicidal thoughts on social media, including Twitter, now known as X.

The high-profile mass murder case had gripped the nation for years and raised concerns over the use of social media.

The nine victims were aged between 15 and 26, according to Japanese public broadcaster NHK and TV Asahi, which both cited court proceedings. The victims had posted online that they wanted to kill themselves, and were subsequently contacted by Shiraishi through social media platforms, NHK and TV Asahi reported.

Using a handle which loosely translates as “hangman,” Shiraishi invited them to his apartment in Zama, promising to help them die, the Jiji news agency reported, citing the indictment.

Shiraishi pleaded guilty to murdering the victims, saying in court that he had killed them to satisfy his own sexual desires, NHK and TV Asahi reported.

He was found guilty in December 2020 of murdering, raping and dismembering the nine victims, and storing their bodies in his apartment.

Shiraishi’s lawyer appealed the ruling to the Tokyo High Court, but he later withdrew the appeal and the sentence was finalized, NHK reported.

“This case, driven by selfish motives such as sexual and financial gratification, resulted in the deaths of nine individuals over two months – a deeply serious incident that has caused shock and anxiety across society. I understand it is an especially heartbreaking case for both the victims and their families,” Justice Minister Keisuke Suzuki told reporters Friday at a press conference.

Shiraishi’s execution is the first the country has seen since July 2022, NHK reported.

In Japan, the death penalty is delivered by hanging, with execution dates not made public until after the penalty is carried out. Executions are shrouded in secrecy with little to no warning, and families and lawyers are usually notified only after the execution has taken place.

“The death sentence was finalized following a thorough trial process. After careful and deliberate consideration of all factors, I issued the execution order,” Suzuki said.

This is a developing story and will be updated.

This post appeared first on cnn.com

More than a third of the population of Tuvalu has applied to move to Australia, under a landmark visa scheme designed to help people escape rising sea levels.

The island nation – roughly halfway between Hawaii and Australia – is home to about 10,000 people, according to the latest government statistics, living across a clutch of tiny islets and atolls in the South Pacific.

With no part of its territory above six meters, it is one of the most at-risk places in the world to rising seas caused by climate change.

On June 16, Australia opened a roughly one-month application window for what it says is a one-of-a-kind visa offering necessitated by climate change. Under the new scheme, Australia will accept 280 visa winners from a random ballot between July and January 2026. The Tuvaluans will get permanent residency on arrival in Australia, with the right to work and access public healthcare and education.

“The opening of the Falepili Mobility Pathway delivers on our shared vision for mobility with dignity, by providing Tuvaluans the opportunity to live, study and work in Australia as climate impacts worsen,” Australian Foreign Minister Penny Wong said in a statement.

According to Tuvalu’s Prime Minister Feleti Teo, more than half of Tuvalu will be regularly inundated by tidal surges by 2050. By 2100, 90% of his nation will be regularly under water, he says.

Fongafale, the nation’s capital, is the largest and most populated islet in Tuvalu’s main atoll, Funafuti. It has a runway-like strip of land just 65 feet (20 meters) wide in some places.

“You can put yourself in my situation, as the prime minister of Tuvalu, contemplating development, contemplating services for the basic needs of our people, and at the same time being presented with a very confronting and disturbing forecast,” Teo told the United Nations Oceans Conference this month in Nice, France.

“Internal relocation in Tuvalu is not an option, we are totally flat,” the prime minister said on June 12. “There is no option to move inland or move to higher ground, because there is no higher ground.”

The visa scheme is part of a broader pact signed between Australia and Tuvalu in 2023, which binds Australia to defending Tuvalu both militarily and against rising seas.

Tuvalu, which claims 900,000 square kilometers of the South Pacific, is considered by Canberra as a crucial player in its ongoing struggle with China for regional influence.

Recognition is something Australia has said it will guarantee for Tuvalu, even if nobody can live there in the future. “The statehood and sovereignty of Tuvalu will continue, and the rights and duties inherent thereto will be maintained, notwithstanding the impact of climate change-related sea-level rise,” their treaty reads.

In 2022, at COP27 in Sharm El-Sheikh, Egypt, Tuvalu announced that it sought to become the first nation in the world to move entirely online. The government has since developed a plan to “digitally recreate its land, archive its rich history and culture and move all government functions into a digital space.” Australia now recognizes Tuvalu’s “digital sovereignty,” which the country hopes will allow it to “retain its identity and continue to function as a state, even after its physical land is gone.”

Australia’s Prime Minister Anthony Albanese said last year his country shared a vision for a “peaceful, stable, prosperous and unified region.”

“It shows our Pacific partners that they can rely on Australia as a trusted and genuine partner.”

Australia’s support for the Pacific island nation has stood in stark contrast in recent months to US President Donald Trump’s administration, which has imposed sweeping crackdowns on climate policies and immigration.

Tuvalu is among a group of 36 countries that the Trump administration is looking to add to the current travel ban list, according to the Associated Press.

The ban fully restricts entry of nationals from 12 countries: Afghanistan; Myanmar, also known as Burma; Chad; Republic of the Congo; Equatorial Guinea; Eritrea; Haiti; Iran; Libya; Somalia; Sudan; and Yemen. People from seven countries also face partial restrictions: Burundi, Cuba, Laos, Sierra Leone, Togo, Turkmenistan and Venezuela.

The 36 countries, including Tuvalu’s Pacific neighbors Tonga and Vanuatu, had been told to commit to improving vetting of travelers and take steps to address the status of their nationals who are in the United States illegally or face similar restrictions, the AP reported, citing a diplomatic cable sent by the State Department.

This post appeared first on cnn.com

Think trading against the trend is risky? You may want to reconsider. When a stock or ETF is trending lower, the smart money watches for signs of a reversal; those early signals can get you into a trend before everyone else and lead to favorable risk-to-reward ratios.

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The video premiered on June 25, 2025.

Melbourne, Australia (ABN Newswire) – Lithium Universe Limited (ASX:LU7) (FRA:KU00) (OTCMKTS:LUVSF) is pleased to announce that further to its announcement dated 18 June 2025 (Announcement), it has now settled the first tranche of its placement to sophisticated and professional investors (Tranche 1).

Highlights

– Successful settlement of Tranche 1 of the share placement to sophisticated and professional investors, raising $0.60 million

– Tranche 2 of the placement (subject to shareholder approval) is anticipated to be completed on or around 29 July 2025, raising $1.10 million

Tranche 1 comprised of 150,000,000 fully paid ordinary shares in the capital of the Company (Shares), which have been issued today under the Company’s existing capacity under ASX Listing Rule 7.1 (15% capacity). The Shares under Tranche 1 were issued at a price of A$0.004 per Share, raising A$600,000. In addition, subject to shareholder approval, the Tranche 1 investors will be entitled to one new option for every two Shares subscribed for and issued, expiring 36 months from the date of issue of the options, and an exercise price of $0.008 (Options).

Tranche 2 Placement

As detailed within the Announcement, the placement comprises a second tranche of 275,000,000 Shares at an issue price of A$0.004 per Share, subject to shareholder approval (Tranche 2). Investors under the Tranche 2 placement will also receive a free attaching Option on a 1 for 2 basis, subject to shareholder approval.

The Company will seek shareholder approval at an upcoming general meeting, which is scheduled to be held on or around Wednesday, 23 July 2025.

Cleansing for secondary trading

The Company advises that the Shares issued under Tranche 1 have been issued without disclosure under Part 6D.2 of the Act in reliance on sections 708(8) and 708(11) of the Corporations Act 2001 (Cth) (Corporations Act).

In accordance with Section 708A(11) of the Corporations Act 2001, the Company confirms:

– the Shares under Tranche 1 are in a class of securities that are quoted securities;

– the Company lodged a prospectus with the Australian Securities and Investments Commission on 20 June 2025 (Prospectus);

– the Prospectus includes an offer of securities by the Company in the same class as the Shares issued under Tranche 1; and

– the offer under the Prospectus is and was open at the time of issue of the Shares under Tranche 1.

Accordingly, the T1 Placement Shares are eligible for immediate trading without on-sale restrictions.

About Lithium Universe Ltd:  

Lithium Universe Ltd (ASX:LU7) (FRA:KU00) (OTCMKTS:LUVSF), headed by industry trail blazer, Iggy Tan, and the Lithium Universe team has a proven track record of fast-tracking lithium projects, demonstrated by the successful development of the Mt Cattlin spodumene project for Galaxy Resources Limited.

Instead of exploring for the sake of exploration, Lithium Universe’s mission is to quickly obtain a resource and construct a spodumene-producing mine in Quebec, Canada. Unlike many other Lithium exploration companies, Lithium Universe possesses the essential expertise and skills to develop and construct profitable projects.

Source:
Lithium Universe Ltd

Contact:
Iggy Tan
Executive Chairman
Lithium Universe Limited
Email: info@lithiumuniverse.com

News Provided by ABN Newswire via QuoteMedia

This post appeared first on investingnews.com

Cobalt prices are surging after the Democratic Republic of Congo (DRC), the world’s largest producer, extended its export ban by three months in a bid to address global oversupply and stabilize plunging prices.

According to the Financial Times, cobalt prices on China’s Wuxi Stainless Steel Exchange rose nearly 10 percent after the DRC government announced the news over the weekend.

The ban — originally set to expire on Monday (June 23) — will now remain in effect until at least September.

The DRC’s Strategic Mineral Substances Market Regulation and Control Authority (ARECOMS) said the extension was necessary “due to the continued high level of stock on the market.”

The ban, first imposed in February of this year, was initially slated to last four months.

It came after a prolonged slump in cobalt prices, which have plummeted approximately 60 percent over the past three years, reaching a nine year low of US$10 per pound earlier this year.

The DRC produced 72 percent of the global cobalt mine supply in 2024, as per market intelligence firm Project Blue.

The export halt has already begun to ripple through international markets. In China, where most of the world’s cobalt is refined, prices for the metal and related company stocks spiked.

‘We are likely to see an initial price spike, but real pressure will be later in the year as intermediate stocks begin to dry up,’ Thomas Matthews, a battery materials analyst at CRU Group, told Bloomberg. ‘In short, strap yourselves in.’

The government of the DRC is attempting to tackle a persistent supply glut that has undermined the cobalt market since 2022. By curbing exports, Kinshasa is aiming to drive up prices, thereby increasing revenues from royalties and taxes on mining companies, while also incentivizing further investment in its domestic mining infrastructure.

ARECOMS said that a follow-up decision will be made before the new deadline in September, signaling that the ban could be modified, extended or lifted depending on market developments.

Reuters reported last week that Congolese officials are also exploring a quota-based system for cobalt exports, which would allow selected volumes to leave the country while still exerting downward pressure on global supply.

The proposal has garnered support from major industry players.

Glencore (LSE:GLEN,OTC Pink:GLCNF), the world’s second largest cobalt producer and a key stakeholder in Congolese mining operations, is backing the potential quota system. The Swiss trader declared force majeure on some of its cobalt supply contracts earlier this year due to the export restrictions, citing exceptional circumstances. Nevertheless, Glencore has managed to fulfill its obligations so far, thanks to pre-existing cobalt stockpiles located outside the DRC.

By contrast, CMOC Group (OTC Pink:CMCLF,HKEX:3993,SHA:603993), the China-based firm that overtook Glencore as the world’s top cobalt producer in 2024, has been lobbying for the ban’s complete removal.

CMOC, which processes a significant share of Congolese cobalt in China, argues that prolonged supply constraints could jeopardize downstream industries and global battery production.

A race against the clock

Despite initial cushioning from global stockpiles, experts warn that refined cobalt supply may soon run thin.

Transporting cobalt from the landlocked DRC to China’s processing hubs typically takes about 90 days. This means that if shipments do not recommence soon, shortages could begin to materialize in late Q3 or early Q4.

‘Stockpiles of cobalt outside the DR Congo will reach very low levels by the September 21 deadline if nothing else changes,’ Jack Bedder, founder of Project Blue, told the Financial Times.

Cobalt plays a vital role in lithium-ion batteries used in electric vehicles, consumer electronics and renewable energy storage. While many battery makers have begun shifting toward lower-cobalt or cobalt-free chemistries, demand for the metal remains strong — especially for high-performance applications.

Complicating the supply/demand dynamics is the fact that cobalt is often a by-product of copper mining.

With copper prices rebounding sharply — trading around US$9,600 per metric ton this week on the London Metal Exchange — producers have little incentive to curb overall output.

The move to extend the cobalt ban also coincides with the DRC’s recent efforts to assert greater control over its vast mineral wealth. The Central African nation is currently in discussions with the US over a potential minerals partnership aimed at strengthening supply chain security for clean energy technologies.

The export suspension is just the latest in a series of efforts by resource-rich countries to assert more control over key commodities. Similar moves have been seen in Indonesia, which banned nickel ore exports in 2020 to spur domestic processing, and in Chile, where the government is pushing for greater state participation in the lithium sector.

Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.

This post appeared first on investingnews.com

One of the sharpest copper supply crunches in recent memory is rattling global commodities markets, as inventories at the London Metal Exchange (LME) plummet and the spot price soars.

Bloomberg reported that as of Monday (June 23), copper for immediate delivery was trading at a premium of US$345 per metric ton over three month futures, the widest spread since a record squeeze in 2021.

That dramatic price divergence reflects the market’s acute concerns over access to physical copper, with readily available inventories on the LME falling by around 80 percent this year alone.

Available stockpiles now cover less than a single day of global demand, amplifying anxiety across the supply chain.

Historic backwardation signals market distress

Backwardation in metals markets typically suggests that buyers are scrambling to obtain physical supply. In copper’s case, a combination of logistical, geopolitical and structural forces is driving the surge.

LME stockpiles have been rapidly drawn down as traders and manufacturers shift metal to the US in anticipation of potential trade barriers, spurred by US President Donald Trump’s tariff moves.

That migration has created acute shortages in Europe and Asia. Chinese smelters, responding to the price premium and slackening domestic demand, have begun exporting surplus copper to global markets. Yet those flows have not kept pace with the drawdowns, and China’s own inventories have also dwindled.

The LME had hoped recent regulatory interventions would prevent another disorderly squeeze like the one that disrupted the nickel market in 2022. Last week, the exchange enacted new rules mandating that traders with large front-month positions offer to lend those holdings if they exceed available inventories.

The so-called “front-month lending rule” is meant to discourage hoarding and promote liquidity.

However, recent copper trading data suggest that no single trader is behind the current squeeze. On Monday, the Tom/next spread — a one day lending rate — spiked to US$69 per metric ton.

This would only occur if no one entity held enough copper to trigger lending obligations under the new rules, indicating the tightness is likely the result of broad-based market dynamics rather than manipulation.

LME tightens oversight

As mentioned, the LME has begun cracking down on oversized positions across its metals complex.

In a June 20 statement, the exchange introduced a temporary, market-wide rule to manage large front-month exposures. Under the updated rules, traders holding positions in the front-month contract for a metal that exceed the total available exchange inventories — excluding any stock they already own — must offer to lend those positions at “level,” meaning they are required to roll them over to the next month at the same price.

The rule aims to rein in aggressive moves by commodities trading houses that have made deep inroads into metals markets over the past year. The LME emphasized in its release that recent market interventions are targeted, adding that the newly introduced rule offers a standardized approach.

Still, the unprecedented depth of copper’s backwardation — now extending years into the future — suggests that broader supply/demand dynamics are at play, beyond what position limits alone can control.

For manufacturers and industrial users, the squeeze presents a serious cost and planning risk. Many rely on the LME as a pricing and hedging mechanism. But when exchange inventories drop this low, even large players can face trouble sourcing metal to meet contract obligations. With exchange-based supply nearly exhausted, companies may increasingly turn to off-market deals or bilateral supply agreements — often at higher prices.

This shift weakens the LME’s role as a central clearinghouse for global copper, and raises questions about its ability to handle future shocks, especially as energy transition policies boost long-term demand for the metal.

Market watchers will also be looking to the next moves from Chinese exporters, US trade policy under Trump and the LME’s enforcement of its new regulations.

Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.

This post appeared first on investingnews.com