Chilean mining giant Codelco has taken a significant step in its initiative to boost Chile’s lithium industry by announcing a thorough due diligence process for Australian lithium developer Lithium Power International. Codelco’s move represents a strategic effort to position itself in the burgeoning lithium market.

China has escalated its use of critical minerals as a strategic lever in the deepening trade conflict with the United States, expanding export controls on key rare earth elements in a move that could disrupt global supply chains for advanced manufacturing and defense technologies.

In response to President Donald Trump’s sweeping “reciprocal tariffs” on Chinese imports, Beijing announced on Friday it would impose tighter export restrictions on seven types of rare earths—elements crucial for a broad array of high-tech applications, from electric vehicle motors and wind turbines to advanced missile guidance systems and stealth technologies.

Copper markets entered September on a volatile note, briefly breaking above the $10,000 per ton mark in London before retreating as traders reassessed the balance of supply and demand, particularly in China. Prices rose 3% in August and are now up roughly 14% on the year, reflecting both financial tailwinds from a weaker U.S. dollar and the growing belief that the Federal Reserve could move toward interest rate cuts later this year.

Yet beneath these macro supports, the real story remains how China, the world’s largest consumer, will shape the trajectory of the metal. On the bullish side, Chinese import premiums have climbed, a sign that buyers are willing to pay extra to secure shipments from abroad. Inventories, which normally rise seasonally ahead of peak autumn demand, remain relatively tight, adding to the sense of market firmness.