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As the year closes, Republicans are looking to the past for another dance with a partisan exercise that tested the party’s unity and delivered President Donald Trump his crowning legislative achievement of the year.

Budget reconciliation is how congressional Republicans rammed through Trump’s ‘big, beautiful bill,’ earlier this year. But it’s a time-consuming, labor-intensive process that laid bare intra-party divisions and nearly exploded before liftoff.

Still, some Republicans want to take another stab at reconciliation, which allows a party in power to advance legislation with just a simple majority in the Senate as long as it adheres to strict, budgetary parameters.

‘We can do two more reconciliation bills without a single Democratic vote,’ Sen. John Kennedy, R-La., told Fox News Digital. ‘Doesn’t mean we wouldn’t welcome Democratic votes, but we can do them without a single Democratic vote.’

Turning once again to reconciliation would help Senate Republicans, in particular, address one of Trump’s desires to kill the 60-vote filibuster threshold in the upper chamber without changing the precedent that Democrats, for years, have threatened to do.

But they need a plan, first.

That would come from Senate Budget Committee Chair Lindsey Graham, R-S.C., the de facto maestro of the reconciliation process. His committee was responsible for drafting the budget resolution that unlocked the process in the upper chamber earlier this year, and he is reportedly eying drafting another resolution in the new year.

‘It would be political malpractice not to do another reconciliation,’ Graham told Semafor.

But many Republicans acknowledged just how difficult reconciliation is, especially after the latest exercise that dominated much of Congress’ attention for the first half of the year.

Senate Majority Leader John Thune, R-S.D., told Fox News Digital that ‘it’s always hard, but it’s an option, and one that we’re not ruling in or ruling out.’

‘I would say you have to have a reason to do it, you know,’ Thune said. ‘I mean, you don’t just do reconciliation for the heck of it. You got to have a, you know, a specific purpose. And so we’ll see. I mean, that purpose may, you know, may start getting some traction.’

Kennedy floated using reconciliation to tackle affordability issues, but some see the painstaking process as an avenue to grapple with another issue that has dominated Congress for several months: healthcare.

Lawmakers left Washington, D.C., without a fix to expiring Obamacare subsidies, effectively setting up a drastic hike in out-of-pocket healthcare costs for millions of Americans. There are bipartisan negotiations in the works to deal with the issue when lawmakers return, but Republicans have a gnawing appetite to drastically change the program.

Sen. Jim Banks, R-Ind., told Fox News Digital that Republicans ‘have to do something’ on healthcare.

‘Reconciliation is one pathway to do something, but it also limits what we can do,’ Banks said. ‘So we need bipartisan support to pass something that will help everybody.’

And Sen. Jim Justice, R-W.Va., who has been critical of Republicans’ inability to get a healthcare solution across the line, told Fox News Digital that reconciliation ‘may be an answer.’

‘The healthcare situation is really, it’s a big deal,’ Justice said. ‘It’s more than difficult, you know? And so we need to, we need to try to fix it. That’s for sure.’

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The recently launched ‘GenAI’ tool for U.S. service members and Department of War workers is a ‘critical first step’ in the future of warfare, according to a military expert.

This month, the Pentagon announced the launch of GenAI.mil, a military-focused AI platform powered by Google Gemini. Secretary of War Pete Hegseth said the platform is designed to give U.S. military personnel direct access to AI tools to help ‘revolutioniz[e] the way we win.’

On Monday, the Department of War also announced that the Pentagon is further integrating Elon Musk’s xAI Grok family of models into the GenAI platform, allowing employees to use xAI safely on secure government systems for routine work, including tasks involving sensitive but unclassified information.

In an interview with Fox News Digital, Emelia Probasco, a Navy veteran, former Pentagon official and senior fellow at Georgetown University’s Center for Security and Emerging Technology, explained that the tool will help train Department of War service members and civilians on the use of artificial intelligence in their everyday workflow, preparing them for further integration of AI in military matters.

Probasco said the tool will have a ‘big impact’ on the everyday functioning of the Department of War.

‘Prior to the rollout of this new website and having Gemini 3 available to the force, folks were either using sort of a tool that wasn’t as capable … or even worse, they were sort of going to their home computers and trying to do various things on their home computers, which they’re not supposed to do, but it was probably happening,’ Probasco explained. ‘Now they’ve got a more secure environment where they can experiment with these tools and really start to learn what they’re good for and what they’re not good for.’

While Probasco said she does not believe the tools, such as the GenAI platform, ‘fully changes war,’ she thinks ‘it’s the critical first step in training so that we know how to use it well.’

She said that the Department of War has ‘made it very clear in the past year that they want to forge ahead and be innovative and try new things and adopt AI.’

The GenAI tool, Probasco said, gives the department a type of sandbox to experiment with for still bigger innovations to come.

‘There are responsible people in the department who are trying to figure out what is the best use of this tool. Let’s try lots of experiments in sort of sandboxes or in safe places so that when a conflict comes, we are ready and ahead, frankly, of any adversary who has started to play with the tools,’ she explained.

Probasco said the Department of War understands that adversaries such as China are also developing and experimenting with artificial intelligence. Indeed, this month, President Donald Trump announced he would be partially reversing a Biden-era restriction on high-end chip exports, permitting Nvidia to export its artificial-intelligence chips to China and other countries.

The H200 chips are high-performance processors made by Nvidia that help run artificial intelligence programs, like chatbots, machine learning and data-center tasks. 

Lawmakers on Capitol Hill voiced that they are split over the decision, with some seeing the move as a dangerous concession and others as strategic.

Either way, Probasco said ‘we have lots of evidence’ that China ‘is doing rapid experimentation [with AI] across all domains of warfare.’

‘And it’s not, can I use a chatbot, but rather, ‘Can I gather up lots of information to start to target individuals for espionage?’ For example, [and], ‘Can I use data to create more sophisticated cyber-attacks?’’ she explained.

‘There is this sort of dynamic of a race between the two sides trying to figure out how to adopt it,’ she explained.

Though important, Probasco said the GenAI tool is ‘not going to necessarily be the weapon system that gains [the U.S.] an advantage.’

She assured the AI tool that will truly give the U.S. a military advantage ‘is underway,’ but said ‘that’s not the sort of thing you just roll out for every service member to use.’

‘It’s important to remember that using a chatbot to help you think through certain problems or do talking points is not what’s going to win the war. There are much more sophisticated military systems that use generative AI; they use other kinds of what’s called ‘good old-fashioned AI.’ There are lots of other techniques that militaries need to use,’ she said.

‘Those are already in the works, and they’ve been in the works for years,’ Probasco explained, adding, ‘That’s not going to be rolled out in a big public announcement where everybody can play with it.’

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As President Donald Trump rolls out his TrumpRx proposal to cut prescription drug prices, economists are raising questions about what happens when prices are capped and whether short-term savings for consumers come at the expense of future medical breakthroughs.

On Friday, Trump announced deals with nine pharmaceutical companies to lower prices on certain medications for Americans, along with $150 billion in promised new investments in domestic manufacturing and pharmaceutical research.

The announcement builds on the administration’s Trump Rx initiative, a government-run portal designed to steer consumers toward lower-cost prescription drugs offered directly by manufacturers. The program is central to Trump’s effort to tie U.S. drug prices to those paid in other wealthy countries, a policy known as ‘most favored nation’ pricing.

But economists caution that price-lowering agreements don’t eliminate costs and often shift them elsewhere, particularly into reduced drug development, delayed innovation, or higher prices in other parts of the market.

Michael Baker, director of healthcare policy at the American Action Forum, said government price setting shifts costs rather than eliminating them.

‘At the most basic level, government price setting only limits what patients pay for a drug — usually reflected in an out-of-pocket or co-insurance payment,’ Baker said. ‘This does nothing to address the overall cost of the drug, which someone still has to pay, nor does it lower the cost associated with development.’

As a result, Baker said, patients ultimately bear those costs through tighter coverage rules, fewer treatment options or reduced future innovation.

‘Patients will experience far less of the crown jewel of the U.S. healthcare system that they are currently accustomed to receiving,’ he added.

Economists say the effects of permanent price caps would also be felt upstream, in research and development.

‘We know for sure that if drug prices are capped permanently below the levels the firm would have set, that will lead to lower incentives for R&D to discover new drugs and bring them to market,’ explained Mark V. Pauly, professor of healthcare management at The Wharton School at the University of Pennsylvania.

Pauly added that the impact is expected to be negative, but its scale — including how many drugs might never be developed and their potential value — remains highly uncertain.

‘I do not know the answer, but I know for sure no one else does either,’ he added.

Others argue the administration’s approach avoids the most damaging forms of price control.

Ed Haislmaier, an expert in healthcare policy and markets at The Heritage Foundation, said recent agreements appear to involve companies trading lower prices for benefits such as expanded market access or relief from other costs, including tariffs.

‘In such cases, companies are likely calculating that revenue losses from lower prices will be offset by revenue gains from more sales,’ Haislmaier told Fox News Digital.

‘The kind of government price controls that are most damaging to innovation are ones that limit the initial price a company can charge for a new product. That is the situation in some countries, but fortunately not yet the in the United States,’ he added.

Ryan Long, Paragon’s director of congressional relations and a senior research fellow, suggested that pricing pressure abroad could force foreign governments to shoulder a greater share of drug development costs.

Long said this strategy would lead ‘to lower prices for American consumers without sacrificing U.S. leadership in biopharmaceutical innovation that leads to new treatments and cures.’

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Turning Point USA’s AmericaFest is very much like a circus, and I mean that in the best possible way. A circus can travel anywhere, put up its tents and put on a show.

The scale of last weekend’s event in Phoenix was nothing short of monumental, with 31,000 in attendance. That isn’t so far off of the estimated 50,000 souls who went to the 2024 Republican National Convention in Milwaukee.

To put it bluntly, TPUSA, along with other organizations, are capable of producing a much-needed midterm convention and a city like Phoenix, which hosted the conservative confab admirably, is exactly where it should be held.

As I’ve written in this column before, a midterm GOP conventionmidterm GOP convention, though a tad unconventional as a concept, is exactly what Republicans need to put Trump and his policy wins front and center before the electorate.

John and Lucy, a couple in their 40s who I met at the event, told me it was their first AmFest.

‘The energy is amazing,’ Lucy said. ‘I didn’t know what to expect, but I didn’t expect this.’

John concurred, saying, ‘This is like a rock concert, fireworks and loud music, I think it gets everyone pumped up.’

The atmosphere at AmFest was a whizzing and whirring technicolor explosion of light and sound, all resounding toward the goal of forwarding the conservative movement.

There is little doubt that 10 minutes at a pulsating and intense live event like Amfest – or a Trump rally – is worth 10 days of on-screen ads. It hits attendees in each of their five senses, and 50,000 may not sound like much, but that’s a veritable army to send back home in an off-year election.

One eager young conservative I met, Matt, who is studying finance in grad school and sports what might now be called the TPUSA mustache, told me, ‘I’d totally go to a midterm convention. Hell, I’d just go for the parties.’

That may sound a bit shallow to some, but it also sounds like exactly the kind of positive energy that a winning political movement needs.

When it comes to the question of where to hold a midterm convention, Phoenix can teach would-be convention planners a lot about the key question of location, location, location.

In places like New York City or Chicago, AmFest would have brought out hundreds of protesters, including many of the dangerous Antifa variety. Even vastly smaller events like a recent Mom’s For Liberty conference in Philadelphia attracted angry mobs.

In Phoenix, I never saw more than a dozen or so, and they were far more silly than menacing.

It’s worth noting that the local news channels did choose to focus almost as much attention on this bedraggled band of apparently unemployed naysayers as they did the tens of thousands inside the event.

Funny that.

But around the clean and very pretty downtown of soft light and perfect temperatures, one felt little to no resentment or pushback at the sudden flood of red MAGA hats and sparkly Trump outerwear. Everything was cool.

I asked one of my Uber drivers, a longtime Phoenix resident, why he thought the city was so welcoming in this way.

‘Nobody is uptight about politics. Everyone has weird ideas, we have weird politicians,’ he told me, laughing at his own joke for moment before adding, ‘It’s always been like this.’

Phoenix is not the only prime location for a midterm convention. Oklahoma City is another, as is Nashville. These are thriving places with better than average governance that truly do highlight the accomplishments of the Trump administration.

JD VanceJD Vance told the crowd at AmFest, ‘Why do we penalize corporations that ship American jobs overseas? Because we believe in the inherent dignity of human work and every person who works a good job in this country.’

The best place to sell that very popular message is in the smaller American cities where the jobs are being created, not one of the great metropolises still clinging to the dream that one day everyone can just work for the government.

As of now, the GOP has somewhere just north of seven months to put together a midterm convention, but the good news is that it is also flush with campaign cash. And the conservative movement has organizations like TPUSA that are capable of coming together to pull it off.

If Republicans want to hold onto Congress and give Trump a runway for his final two years, then their first priority for the coming fall should be to bring the circus back to town.

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President Donald Trump’s newly appointed envoy to Greenland said Tuesday the administration wants to open a dialogue with residents of the territory, stressing the U.S. is not seeking to ‘conquer’ the island.

During an appearance on Fox News’ ‘The Will Cain Show,’ Louisiana Gov. Jeff Landry, who was tapped as special envoy to Greenland by Trump on Sunday, said discussions must be had with Greenlanders to understand what they want moving forward.

‘What are they looking for? What opportunities have they not gotten? Why haven’t they gotten the protection that they actually deserve?’ Landry said.

Landry added that the U.S. ‘has always been a welcoming party,’ and that the Trump administration is not going to ‘go in there trying to conquer anybody’ or ‘take over anybody’s country.’

Landry’s comments came after Danish leaders sharply criticized Trump after he announced the appointment of the new special envoy to Greenland, a territory controlled by Denmark.

‘We have said it before. Now, we say it again. National borders and the sovereignty of states are rooted in international law,’ Danish Prime Minister Mette Frederiksen and Greenlandic Prime Minister Jens-Frederik Nielsen said in a joint statement Monday. ‘They are fundamental principles. You cannot annex another country. Not even with an argument about international security.’

Trump wrote on Truth Social Monday that Landry ‘understands how essential Greenland is to our National Security, and will strongly advance our Country’s Interests for the Safety, Security, and Survival of our Allies, and indeed, the World.’

On Tuesday, Danish Foreign Minister Lars Løkke Rasmussen called Trump’s comments ‘completely unacceptable,’ adding that he would summon the U.S. ambassador.

The Danish kingdom, he wrote on Facebook, is ‘sovereign and cannot accept that others question it.’

Trump has previously expressed ambitions for the U.S. to acquire Greenland, posting on Truth Social in December 2024 that ‘ownership and control of Greenland is an absolute necessity’ for national security purposes.

In another post from January 2025, Trump said Greenland is an ‘incredible place,’ and its people will ‘benefit tremendously if, and when, it becomes part of our Nation,’ before declaring, ‘MAKE GREENLAND GREAT AGAIN!’

Fox News Digital has reached out to the White House for comment.

Fox News Digital’s Alex Nitzberg and The Associated Press contributed to this report.

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The global lithium market endured a bruising 2025, with persistent oversupply and softer-than-expected electric vehicle (EV) demand driving prices for the battery metal to multi-year lows.

Lithium carbonate prices in North Asia slipped below US$9,550 per metric ton in February — their weakest level since 2021 — triggering production cuts and project delays, particularly in Australia and China. Despite brief rallies later in the year, prices remained under pressure, reflecting a market struggling to absorb rapid supply growth.

That imbalance has been years in the making. Global lithium carbonate output surged 192 percent between 2020 and 2024 while demand lagged, leaving the market with a large surplus.

Analysts estimate that supply exceeded demand by more than 150,000 metric tons in both 2023 and 2024, with inventories continuing to cap price recovery in 2025. Although the surplus is shrinking, high stockpiles have kept prices rangebound, with lithium carbonate largely hovering near US$10,000 for much of the year.

Volatility punctuated the lithium industry in the second half of 2025.

Prices rebounded sharply in July on supply cut speculation, briefly pushing lithium carbonate to an 11 month high above US$12,000 before retreating as producers denied meaningful reductions and inventories remained ample.

Policy uncertainty in the US, including threats to EV incentives, and regulatory signals from China further weighed on sentiment, underscoring the market’s sensitivity to both geopolitics and headlines.

Despite the prolonged downturn, analysts increasingly view 2025 as a potential inflection point. With roughly a third of global production estimated to be unprofitable at current prices, further supply rationalization appears likely.

Forecasts point to a sharply narrower surplus in 2025 and a possible deficit emerging in 2026, suggesting that while lithium’s near-term outlook remains constrained, the sector’s long-term fundamentals — driven by electrification, the energy transition and data-intensive technologies — remain intact.

Lithium in 2025: A tale of two markets

In contrast, the second half of 2025 saw a boost in prices across the lithium space as market fundamentals improved due to Contemporary Amperex Technology (SZSE:300750,HKEX:3750) curtailing operations at the Jianxiawo lepidolite mine in early August. Despite reports that Jianxiawo would restart operations in December, it is unclear if the mine, which is one of the world’s largest, is back in operation.

Concern over the removed supply pushed carbonate prices higher from mid-October through the end of the year, when they rose from US$10,417.37 to US$14,131.44, a 34 percent increase.

Battery energy storage demand key to lithium growth

Another trend Klein pointed to was the rapid growth in the battery energy storage system (BESS) market, which is expected to grow by 44 percent in 2025, representing a quarter of all battery demand.

“We’ve been talking about BESS being a very fast, growing and big part of the market, but it’s now become the consensus opinion that it’s very strong not only in China, but elsewhere,” said Klein.

Although BESS is one of the fastest-growing segments of the battery market, Klein believes its growth potential is not fully understood. “The market’s probably still underestimating that narrative about battery energy storage,” he said, adding that it is only now starting to be understood by people who are in the industry.

“But for the broader, generalist investor who still equates lithium with EVs, they don’t fully understand the battery energy storage angle, so I think they’re still underestimating that,” said Klein. The market is projected to balloon from US$13.7 billion in 2024 to US$43.4 billion by 2030, growing at a compound annual growth rate of 21.3 percent.

Industry analysts expect BESS installations could expand from roughly 205 gigawatt-hours in 2024 to between 520 and 700 gigawatt-hours by 2030, driven by renewable integration, grid stability needs and declining costs.

While EVs have dominated the lithium narrative, Del Real said the real opportunity was “never just a play on EVs or hybrids — it was a play on grid storage, energy storage,” with cheaper battery cells unlocking faster adoption.

That mispricing has created a contrarian opportunity, he added, noting that lithium’s neglect over the past six months has rewarded patient investors. “It’s lonely in the forest sometimes,” Del Real said. But when sentiment turns, “the re-rating can be spectacularly profitable if you know how to play it.”

Lithium exploration budgets evaporate

Lithium exploration budgets were sharply reduced in 2025 as miners retrenched amid prolonged price weakness.

S&P Global’s 2025 corporate exploration strategies study shows that spending on lithium and other critical minerals exploration fell significantly, even as overall non-ferrous exploration dipped only slightly.

Lithium, which had previously broken the US$1 billion mark for exploration spending, saw its allocation cut as junior companies tightened their belts and delayed programs. Cuts were most pronounced in traditional exploration hubs such as Canada, Australia and the US, where weakened junior sectors hit budgets hardest; meanwhile, regions like Chile, Peru and Saudi Arabia recorded relative gains in broader exploration funding.

Lithium remains a structurally important exploration commodity despite a sharp pullback in spending, Kevin Murphy, director of metals and mining research at S&P Global, said during a December webinar.

Murphy described the metal’s rise over the past decade as a “lithium renaissance.”

Once “completely inconsequential for exploration,” lithium has become the third most explored commodity globally over the past five years, underscoring how central it has become to future-facing supply chains.

However, that momentum stalled in 2025 as ongoing price weakness forced a reset. Murphy said lithium exploration budgets were “absolutely gutted,” falling to roughly half of 2024 levels, a decline he described as expected given depressed prices and the completion of several late-stage programs that wrapped up in late 2024 and early 2025.

“The lithium price has been depressed for too long for the budgets to be resilient,” he said, framing the downturn as cyclical rather than structural.

Lithium stocks stage H2 rally

Speaking at this year’s Benchmark Week event in November, Sean Gilmartin, senior equity analyst at Bloomberg, explained that lithium equities staged a sharp rebound in H2 after years of underperformance.

After lagging broader materials and chemical indexes for much of the first half of the year, lithium stocks surged in the second half of the year, closely tracking rising spot prices.

“Over a three year window, lithium names were still very much lagging,” Gilmartin said, “but we’ve flipped the script in a few months. Year-to-date, we’re seeing on average 47 percent gains, closely aligned with spot markets.”

He attributed the turnaround to stronger-than-expected lithium demand, particularly from BESS, as well as supply curtailments in China, which have tightened the market.

Despite the rebound, he cautioned that volatility remains a defining feature of the lithium equities space.

“You need to have a long-term view, and you have to be very adherent to your thesis,” Gilmartin said, noting that the demand story remains intact and that fundamentals continue to support growth through 2026 and beyond.

Securities Disclosure: I, Georgia Williams, hold no direct investment interest in any company mentioned in this article.

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Lundin Mining (TSX:LUN,OTC Pink:LUNMF) has agreed to sell its Eagle mine and Humboldt mill in Michigan to Talon Metals (TSX:TLO,OTCID:TLOFF), pivoting its US-based operations to focus on domestic supply.

The transaction will see Lundin Mining receive 275.2 million Talon shares, representing 18.4 percent of Talon’s outstanding equity, with a total implied value of approximately US$83.7 million based on recent trading prices.

Following the deal, Lundin Mining’s stake in Talon will rise to 19.99 percent.

The Eagle mine, acquired by Lundin Mining in 2013, has produced more than 194,000 metric tons of nickel and 185,000 metric tons of copper. It had generated over US$3.2 billion in revenue as of the third quarter of 2025.

The strategic rationale for the deal centers on consolidating US nickel-copper assets under a single operator, while allowing Lundin Mining to concentrate on its larger-scale copper operations in Brazil and Chile.

Talon will operate the Eagle mine and Humboldt mill while adding new exploration opportunities, including the Tamarack project and its newly discovered Vault zone. Discovered through recent drilling, Vault features 47.33 meters of 11.01 percent nickel and 11.4 percent copper, as well as platinum-group metals.

“The combination of Talon and Eagle will create a pure-play US nickel company anchored by the Eagle mine, the only primary nickel mine currently operating in the United States,” said Lundin Mining President and CEO Jack Lundin.

“This transaction unlocks meaningful synergies, including the opportunity to leverage the Humboldt Mill as a shared, centralized processing facility,’ the executive added.

Darby Stacey, who has managed Eagle mine operations since commissioning, will assume the role of CEO and director of Talon. Lundin Mining will nominate Jack Lundin and Juan Andrés Morel to Talon’s reconstituted 10 member board.

The deal also includes arrangements such as a production payment agreement for non-Eagle ore processed at the Humboldt mill, transitional services provided by Lundin Mining and investor rights protections.

The transaction is expected to close in early January 2026, pending approval from the TSX and customary closing conditions. Talon will continue to trade on the TSX under the symbol TLO.

Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.

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Nickel prices were stagnant in 2025, trading around US$15,000 per metric ton (MT) for much of the year.

The metal’s primary price motivation stemmed from persistent oversupply from Indonesian operations.

Overall, sentiment remained weak amid soft demand growth from the construction and manufacturing sectors, and declining interest in nickel as electric vehicle (EV) battery makers began to eye cheaper chemistries.

Nickel supply in 2026

The big question going into the new year is if nickel supply and demand will come into balance.

The most significant contributing factor over the last several years has been an abundance of supply from Indonesia, which has become the world’s top nickel producer.

The US Geological Survey estimates that full-year 2024 nickel production came in at 2.2 million MT, a staggering increase over the 800,000 MT it believes the nation produced in 2019.

In February 2025, the Indonesian government changed its quota system, effectively increasing nickel ore output to 298.5 million wet metric tons (WMT) from 271 million WMT in 2024. At the time, it said the increased production capacity was being limited to major production areas and was designed to reduce supply pressures.

The increase helped drive the amount of nickel sitting in exchange warehouses. Stockpiles at the London Metal Exchange (LME) had risen to 254,364 MT by the end of November, up from 164,028 MT at the start of 2025.

Meanwhile, the nickel price sank to US$14,295, toward the lower end of profitability for low-cost Indonesian miners.

The profitability question has raised the possibility of cuts — according to Shanghai Metal Market, the Indonesian government is proposing to cut nickel ore output to around 250 million MT in 2026. If the reduction comes to pass, it would mark a significant decline from the 379 million WMT laid out by Indonesia in 2025. Discussions on the final amount are ongoing, and the outlet states that it will be some time before the target is finalized.

“The global market is still forecast to remain in surplus — around 261,000 MT in 2026 — so further cuts would need to be significant to alter fundamentals,” she explained.

Additionally, there could be a wait-and-see approach as other new policies adopted by the Indonesian government in 2025 begin to take hold. The first, introduced in April, saw a shift from a flat 10 percent royalty to a more dynamic rate of 14 to 18 percent, depending on nickel prices. The second came in October, when the government cut the validity period of mining licenses from three years to one, providing the government greater oversight of production levels.

These prices, however, aren’t supportive of western producers, which began curtailing operations in 2024 when the LME average price was US$16,812 and reached US$21,000 in May of that year.

For her part, Manthy suggested that to get back to that range, there needs to be a more coordinated approach to constraining supply, and it may not make an immediate difference.

“To push prices to that range, cuts would need to be deep enough to erase most of the projected surplus. Given the scale — hundreds of thousands of MT — this seems unlikely without coordinated action. Even then, investor sentiment would probably require sustained prices above US$20,000 to materially improve producer attractiveness,” she said.

Nickel demand in 2026

The challenges faced by nickel go beyond oversupply; demand growth for the base metal is also soft.

Nickel’s primary use case is in the production of stainless steel, much of it destined for the Chinese housing market, which has yet to recover from its collapse in 2020.

While the Chinese government tried to stabilize the market in 2024 and earlier in 2025, it has done little to reverse the downward trend. According to a CNBC report on December 2, November sales were down 36 percent from the same period in 2024, and declined 19 percent through the first 11 months of the year.

“China’s property sector weakness has weighed on stainless steel demand, which accounts for over 60 percent of global nickel consumption. Even with broader economic growth, this stagnation has kept nickel prices subdued. A property turnaround would help, but given the surplus outlook, price upside would likely be limited,” Manthey said.

Adding to nickel’s woes is soft growth from the EV market.

Much of the increase in nickel production over the last five years was to fuel the need for EV batteries, but more recently producers like Contemporary Amperex Technology (SZSE:300750,HKEX:3750), one of the world’s largest battery makers, have shifted chemistry to lithium-iron-phosphate (LFP).

Nickel-manganese-cobalt batteries had been seen as superior due to their higher energy density and longer range. But recent advances in LFP technology have erased that gap, with vehicles using the chemistry achieving ranges of over 750 kilometers. Additionally, LFP batteries are cheaper to produce and less volatile, making them safer.

According to a December 1 Reuters article, nickel battery demand rose 1 percent year-on-year in September, while LFP battery demand increased 7 percent. However, the news outlet notes that most of the nickel demand was likely driven more by a rapidly growing EV market than by the benefits of its chemistry.

Although Reuters also notes that nickel chemistry remains the dominant battery technology in western EV markets, that too comes with a caveat, especially in the US, where the elimination of the EV tax credit in September has cratered EV demand. While US EV sales reached a record 1.2 million through the first nine months of 2025, much of that was driven by consumers seeking to take advantage of the US$7,500 credit before it expired.

Early data from Cox Automotive analysis indicates that American EV sales are down 46 percent in Q4 from the third quarter, and 37 percent from the same period last year.

Against that backdrop, Ford Motor (NASDAQ:F) has scaled back its EV plans, taking a US$19.5 billion writedown, and will pivot to extended-range EVs — which use gas-powered engines to augment range — and hybrid cars. Similarly, in mid-December, the EU dropped its plans to ban the sale of all internal combustion engine light vehicles by 2035.

These policy changes likely aren’t good news for nickel watchers.

“Any slowdown in energy transition policies adds to bearish sentiment for battery metals, including nickel,” Manthey said.

Nickel price forecast for 2026

Manthey suggested that nickel prices will remain under pressure throughout 2026.

“We expect prices to struggle to hold above US$16,000 given the surplus. Upside risks hinge on unexpected supply disruptions or stronger-than-forecast stainless and battery demand, but sustained levels above US$19,000 look unlikely under current fundamentals. We see prices averaging US$15,250 in 2026,” she said.

That’s in line with the World Bank’s 2026 nickel price outlook of US$15,500, rising to US$16,000 in 2027.

The primary reason for these projections is the ongoing nickel market surplus.

While it didn’t make a price prediction, Russia’s Nornickel, one of the world’s largest nickel producers, suggests that the market will see a surplus of 275,000 MT of refined nickel in 2026.

Low prices will be a challenge for nickel producers and investors alike. Until there is a shift in market fundamentals, a rebound for nickel doesn’t appear to be in the cards in the short or even medium term.

Securities Disclosure: I, Dean Belder, hold no direct investment interest in any company mentioned in this article.

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TORONTO, ONTARIO (December 22, 2025) TheNewswire – Laurion Mineral Exploration Inc. (TSX.V: LME|OTC: LMEFF|FSE: 5YD) (‘LAURION’ or the ‘Corporation’) is pleased to announce that it has closed its previously-announced non-brokered private placement (the ‘Private Placement’) consisting of flow-through units (the ‘FT Units’). Pursuant to the Private Placement, the Corporation issued 4,619,130 FT Units at a subscription price of $0.33 per FT Unit, for aggregate gross proceeds to the Corporation of $1,524,313.

Each FT Unit consists of one common share of the Corporation (each, a ‘FT Share‘) and one-half of one common share purchase warrant (each, a ‘Warrant‘). Each Warrant entitles the holder thereof to acquire one non flow-through common share of the Corporation at a price of $0.39 per share for a period of 24 months from the date of issuance. The FT Shares and the Warrants comprising the FT Units qualify as ‘flow-through shares’, as defined in subsection 66(15) of the Income Tax Act (Canada) (the ‘Tax Act‘).

The gross proceeds of the Private Placement will be used for ‘Canadian exploration expenses’ (within the meaning of the Tax Act), which will qualify, once renounced, as ‘flow-through mining expenditures’, as defined in the Tax Act, which will be renounced with an effective date of no later than December 31, 2025 (provided the subscriber deals at arm’s length with the Corporation at all relevant times) to the initial purchasers of FT Units in an aggregate amount not less than the gross proceeds raised from the issue of the FT Units. LAURION intends to allocate the proceeds from the Private Placement to advance the Corporation’s 2026 drill program on the Ishkõday property. Planned drilling will focus on key areas within the A-Zone/McLeod and CRK Trend, as well as the historic Sturgeon River Mine area. These zones have been prioritized based on their structural characteristics, surface observations and past drill results, as LAURION continues to build on its growing understanding of the broader mineralized system.

‘This financing enables us to keep advancing our disciplined, technically driven approach to unlocking the potential of the Ishkõday system,’ said Cynthia Le Sueur-Aquin, President and CEO. ‘We are targeting areas with strong structural and geological signals, guided by strong technical fundamentals and a clear strategy for long-term value creation.’

In connection with the Private Placement, certain arm’s-length finders received an aggregate of $66,559 as a cash finder’s commission and an aggregate of 201,693 finder’s warrants. Each finder’s warrant entitles the holder thereof to acquire one non flow-through common share of the Corporation at a price of $0.33 per share for a period of 24 months from the date of issuance.

Pursuant to applicable Canadian securities laws, all securities issued pursuant to the Private Placement are subject to a hold period of four months and one day, expiring on April 23, 2026. The Private Placement remains subject to the final approval of the TSX Venture Exchange (the ‘TSXV‘).

About LAURION Mineral Exploration Inc.

 

The Corporation is a mid-stage junior mineral exploration and development company listed on the TSXV under the symbol LME and on the OTCPINK under the symbol LMEFF. LAURION now has 278,716,413 outstanding shares, of which approximately 73.6% are owned and controlled by insiders who are eligible investors under the ‘Friends and Family’ categories.

 

LAURION’s emphasis is on the exploration and development of its flagship project, the 100% owned mid-stage 57 km2 Ishkõday Project, and its gold-rich polymetallic mineralization.

 

LAURION’s chief priority remains maximizing shareholder value. A large portion of the Corporation’s focus in this regard falls within the scope of its mineral exploration activities and more specifically, advancing the Ishkõday Project. A consequence of LAURION’s success and advancement over the past several years is that the Corporation has become positioned as an acquisition target for appropriate potential acquirors. Accordingly, the Corporation’s Board of Directors is aware that possible strategic alternatives and transactional opportunities may arise and/or could be procured in the short or medium terms. The Corporation will promptly issue a press release if any material change occurs.

 

FOR FURTHER INFORMATION, CONTACT:


LAURION Mineral Exploration Inc.

 

Cynthia Le Sueur-Aquin – President and CEO

Tel: 1-705-788-9186 Fax: 1-705-805-9256

 

Douglas Vass – Investor Relations Consultant

Email: info@laurion.ca

 

Website: http://www.LAURION.ca

 

Follow us on: X (@LAURION_LME), Instagram (laurionmineral) and LinkedIn ()

 

Caution Regarding Forward-Looking Information

 

This press release contains forward-looking statements, which reflect the Corporation’s current expectations regarding future events including with respect to LAURION’s business, operations and condition, management’s objectives, strategies, beliefs and intentions, the use of proceeds of the Private Placement, the Corporation’s ability to advance, expand and/or develop the Ishkõday Project and any possible strategic alternatives and transactional opportunities that may arise and/or could be procured in the future with respect to the Corporation. The forward-looking statements involve risks and uncertainties. Actual events and future results, performance or achievements expressed or implied by such forward-looking statements could differ materially from those projected herein including as a result of a change in the trading price of the common shares of LAURION, the TSXV not providing its final approval for the Private Placement (including the payment of finders’ fees in connection therewith) or any strategic alternatives or transactional opportunities, the interpretation and actual results of current exploration activities, future prices of gold and/or other metals, and those factors disclosed in the Corporation’s publicly filed documents. Investors should consult the Corporation’s ongoing quarterly and annual filings, as well as any other additional documentation comprising the Corporation’s public disclosure record, for additional information on risks and uncertainties relating to these forward-looking statements. The reader is cautioned not to rely on these forward-looking statements. Subject to applicable law, the Corporation disclaims any obligation to update these forward-looking statements. All sample values are from grab samples and channel samples, which by their nature, are not necessarily representative of overall grades of mineralized areas. Readers are cautioned to not place undue reliance on the assay values reported in this press release.

 

NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICE PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THE CONTENT OF THIS NEWS RELEASE.

  

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