Inside a $1.1B deal to reshore critical minerals refining | TechCrunch

"Indonesia and China dominate the refining process. Dig a little deeper, though, and it's apparent that Chinese companies control around 75% of the nickel refining capacity in Indonesia, too, giving the country control of more than half the world's supply."

"As relations with China have soured, "a lot of companies are starting to really look at how do we how do we start to refine here in the U.S.?" Megan O'Connor, co-founder and CEO of Nth Cycle, told TechCrunch."

"These are really valuable resources that we're currently mostly shipping to China. You don't necessarily want to be giving up that value material and then having to buy it back," O'Connor said."

The U.S. and Europe face a critical nickel shortage despite the mineral's essential use in batteries, missiles, electronics, and steel. Indonesia and China dominate global nickel refining, with Chinese companies controlling approximately 75% of Indonesian refining capacity. This concentration has prompted American companies to develop alternative refining solutions. Nth Cycle has created an electrochemical system to refine nickel and other critical minerals domestically, recently securing a $1.1 billion agreement with commodity trader Trafigura to expand production capacity. The shift reflects broader concerns about supply chain vulnerability and the loss of valuable resources through overseas recycling and processing, driving investment in modular, decentralized refining technologies.

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