US imports of critical minerals and lithium in the second quarter of 2023 fell by double-digit percentages year over year, according to an S&P Global Market Intelligence analysis.

Imports of critical minerals, which include lithium compounds along with rare earths, manganese, cobalt and other materials, fell the most, dropping 49.1% year over year to reach 126,272 metric tons. Gabon, a key global manganese producer, accounted for 27.2% of US critical mineral imports, followed by China at 13.2%.

– Learn more about China's rare earth imports in 2023. – Read the August 2023 commodity briefing service on lithium and cobalt.

Executives at Eramet SA, the second-largest global manganese producer, said manganese alloys prices and demand remained weak throughout the first half of 2023.

"After a very good performance and record financial results in 2022, we have experienced a much more challenging first semester in 2023 ... the main [reason] has been the deteriorated market environment with very sharp reduction in our commodity prices," Christel Bories, chairman, CEO and president at Eramet, said during a July 27 earnings call. "We had two relining plan[s] this year and an adjustment of our production due to the poor market conditions and poor market demand, especially in Europe and in US."

Second-quarter imports of processed lithium materials, including lithium carbonate, lithium oxide and lithium hydroxide, fell 22.8% year over year to hit 3,324 metric tons. Of this, 56.1% came from Chile and 39.3% from Argentina.

US imports of refined lithium compounds dropped to 11,479 metric tons, down 33% from 17,131 metric tons in the year-ago period. Canada supplied 49% of these imports, followed by China at 17.4%.

The US is seeking to reduce its dependence on foreign countries for critical minerals, with a particular eye toward curtailing imports from China.

In 2022, a record year for lithium exploration spending, companies budgeted more for lithium exploration in the US than in any other country, partially in response to incentives for domestic minerals production under the Inflation Reduction Act.

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