Mining Engineering’s Weekly Rundown: Episode 53

First, Compass Minerals is making a return to the lithium sector through a new partnership with EnergyX at Utah’s Great Salt Lake. The companies signed a memorandum of understanding that would see EnergyX invest more than $400 million into a direct lithium extraction project designed to produce up to 30,000 tons of lithium annually in two phases by 2030. The project arrives as lithium prices continue to rebound and the White House pushes for expanded domestic mineral production. Compass had previously suspended its Utah lithium ambitions after tighter state water regulations and later shut down the division entirely with a $75 million impairment charge. Under the new agreement, EnergyX will assume operational and regulatory risk while using its filtration technology to extract lithium from hypersaline brine already processed by Compass for fertilizer production. 

Next, U.S. drill bit manufacturers are rapidly shifting toward steel-based designs as tungsten prices surge due to Chinese export restrictions and tightening global supply. Tungsten prices have climbed from roughly $600 per metric ton last fall to about $3,000 today, creating significant cost pressure across the oilfield services sector. Manufacturers including Varel Energy Solutions and Ulterra Drilling Technologies are increasing production of steel-body polycrystalline diamond compact drill bits, which use less tungsten and cost less to manufacture. Analysts estimate the oil and gas industry could spend an additional $1 billion on drill bits this year if prices remain elevated. However, Tungsten-heavy bits generally perform better in harsh drilling environments and last longer under abrasive conditions. Companies now face a balancing act between reducing upfront equipment costs and maintaining drilling efficiency.

Finally, the White House says China has agreed to address U.S. concerns about rare earth shortages following last week’s summit in Beijing. Beijing introduced the restrictions in 2025 in response to U.S. tariffs, and six months after earlier negotiations, the White House now appears to acknowledge that China’s rare earth export regime is likely permanent. The latest statement specifically mentioned shortages of yttrium, scandium and indium, all minerals tied to aerospace, semiconductor and advanced electronics manufacturing. China also continues to tightly control exports of rare earth processing technology. Industry concerns remain especially high around indium, which is critical for photonic chips, fiber optic lasers and next-generation AI data center infrastructure. U.S.-bound Chinese indium shipments have fallen roughly 77 percent since the restrictions began. Analysts say companies including photonic chip producer Coherent could face higher costs, slower capacity expansion and growing supply uncertainty if export licensing remains politically driven. 

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