Critical Mineral Refining Capacity Beyond China
China controls over 60% of global lithium refining, 70% of cobalt refining, and 85% of rare earth processing. For supply chain strategists and government procurement teams, identifying alternative refinery operators is essential for de-risking mineral supply chains tied to the energy transition.
Lithium Refining
The largest non-Chinese lithium refining operations are concentrated in Chile, Australia, and Argentina. SQM and Albemarle operate major lithium carbonate and hydroxide plants in Chile's Salar de Atacama, with a combined capacity exceeding 300,000 tonnes per year. In Australia, Tianqi Lithium Energy Australia (a JV with IGO) operates the Kwinana lithium hydroxide plant (24,000 tpa), while Albemarle's Kemerton facility is ramping to 25,000 tpa. Covalent Lithium is commissioning a 50,000 tpa hydroxide refinery, also in Kwinana.
The United States is building domestic capacity: Albemarle's planned Chester County, South Carolina facility targets 100,000 tpa of lithium hydroxide, and Piedmont Lithium is developing a 30,000 tpa plant in Tennessee.
Cobalt Refining
Finland hosts the largest cobalt refinery outside China — Umicore's Kokkola facility processes up to 16,000 tonnes of cobalt annually and is expanding to 21,000 tonnes. In Norway, Glencore's Nikkelverk produces approximately 5,000 tpa of refined cobalt alongside nickel and copper. Canada is developing new capacity through Electra's planned cobalt refinery, while Jervois Global is restarting its São Miguel Paulista nickel-cobalt refinery in Brazil.
Nickel Refining
Indonesia has become the dominant non-Chinese nickel refiner, commanding over 70% of global refined nickel output, driven by HPAL (High Pressure Acid Leach) plants built in partnership with international miners. Key projects include the Ford–PT Vale–Huayou $4.5 billion HPAL plant and the BASF–Eramet $2.6 billion facility producing 67,000 tpa of nickel intermediates. Glencore's Nikkelverk in Norway remains the largest nickel refinery in the Western world at ~92,000 tpa.
Rare Earth Processing
Lynas Rare Earths is the only significant producer of separated rare earth materials outside China. Its Malaysian plant produces 10,500 tpa of NdPr oxide and has commissioned a heavy rare earth separation circuit capable of processing 1,500 tpa of mixed HREE compounds — making it the world's first commercial HREE producer outside China. MP Materials is building magnet-making capacity in Fort Worth, Texas, while the U.S. DOD has invested over $439 million in domestic rare earth processing.
- Key Trend
- The IRA (Inflation Reduction Act) and EU Critical Raw Materials Act are accelerating investment in non-Chinese refining capacity, with over $15 billion in announced projects since 2022.