Struggling Western Miners Battle Chinese Competition and Low Prices

Western miners, like Jervois Global in Idaho, face economic challenges as Chinese firms flood the market with cheap cobalt. This has led to calls for a two-tier pricing system to ensure sustainably sourced metals. Despite support, such pricing models are yet to be widely adopted.

By Ernest Scheyder and Pratima Desai

SALMON-CHALLIS NATIONAL FOREST, Idaho, July 22 (Reuters) - The sole U.S. cobalt mine lies inactive in Idaho due to the economic impact of cheap Chinese cobalt flooding the market, impacting the global production of metals used in electric vehicles.

Jervois Global had to halt operations at their Idaho site in June 2023, resulting in over 250 job losses, as cobalt prices plummeted due to China's increased production. The company requires prices to return to $20 per pound to resume operations but faced pricing around $12.17 in July.

The situation is driving Western companies and policymakers to consider a two-tier pricing system to ensure a premium for sustainably sourced metals. Industry leaders are urging government intervention for tariffs or supply transparency to assist the industry.