Shipments of cobalt hydroxide from South Africa are likely to be delayed due to serious civil strife in the country; most market participants preferred to hold back activity until the effects on the markets become clearer…The civil strife in South Africa, with significant incidents in KwaZula-Natal province in eastern South Africa, was sparked by the jailing of former South African president Jacob Zuma. The South African national logistics service declared force majeure on Monday July 12 for operations at the ports of Durban and Richards bay…This has resulted in some depots being shut down and port operations stagnant…Durban port is a crucial port for trade with the Democratic Republican of Congo (DRC); mined cobalt hydroxide is transported to and shipped out from Durban, so logistic delays are likely, sources said…Fastmarkets' assessment for the price of cobalt hydroxide payable indicator, min 30% Co, cif China was 88-89% of Fastmarkets' standard-grade cobalt price (low-end) on July 14, unchanged from previous assessment on July 9…Fastmarkets' assessment for cobalt sulfate 20.5% Co basis, exw China rose to 79,000-81,000 yuan ($12,203-12,512) per tonne on Wednesday July 14, unchanged from prices on July 9.

Is there going to be a supercycle? We think so, but I’m pretty sure it will be different from any of the others we’ve seen before…First off, this will be the first commodities supercycle in history where hydrocarbons aren’t fuelling the boom. That’s not to say that oil, gas, and coal won’t play an important role in the energy mix; the global economy will rely on them for years to come. Instead, this time, it will be the metals critical to the energy transition that will electrify the markets…What is our justification for supporting a supercycle narrative? Well, fundamentally, Wood Mackenzie believes that US$50 trillion of investment will be needed over the next three decades to achieve a 1.5˚C global warming trajectory. This will electrify societies’ infrastructure and engineer out the aspects of economic activity that most significantly contribute to carbon emissions. Metals supply will play a vital role in achieving this…The winners will be the industrial metals needed to electrify society - cobalt, lithium, copper, nickel, and aluminium, among others…Finally, while China's move to secure battery raw materials is well documented, less well-known is its increasing self-sufficiency extending downstream. 75% of global lithium-ion batteries, 70% of all solar panels and 60% of electric vehicles are made in China…As this concentration of control grows, the role of non-Chinese participants in these supply chains is one of the most important questions that will need to be answered as this transition unfolds. Those who choose to participate too late in the cycle – be they nations seeking to secure supply for themselves, customers wanting to protect their production lines, or investors wanting to cash in on supernormal profits – are likely to find that they either can’t afford to participate or are precluded from the supercycle altogether.

Sales of new cars and vans that produce carbon emissions will be banned as of 2035, proposals tabled by the European Commission revealed on Wednesday (14 July), a move which all but guarantees that the era of the internal combustion engine (ICE) is drawing to a close in the EU…The new rules will result in the bloc deepening its shift to electric vehicles, with the European Commission expecting “almost 100%” of cars on the roads in 2050 to be emissions free…The announcement came as the EU executive released a package of climate and energy laws, which aims to reduce the bloc’s greenhouse gas emissions by 55% by 2030, and set a path for achieving net zero by 2050…At present, EU-produced cars are allowed to emit 95g of carbon per kilometre driven. This will be scaled back by 55% by 2030, moving to 0g in 2035. Vans, which are permitted 147 g/km, will face a 50% reduction by 2030, but must also be emissions free by 2035…Incentives for zero and low-emission vehicles will be phased out in 2030, with the EU executive reasoning that the clean vehicles will no longer be competing with petrol and diesel engines, removing the need for government support…“This is a turning point for the auto industry and good news for drivers. The new EU rules will democratise electric cars and give a major boost to charging, meaning clean cars will soon be affordable and easy to charge for millions of Europeans,” said William Todts, executive director of Transport & Environment (T&E)...To facilitate the roll out of zero-emission vehicles, the Commission aims to push up the number of charging and fuelling points along major highways. The EU executive set a target to install an electric charging point every 60 kilometres, with a hydrogen refuelling station every 150 kilometres.

South Korea’s LG plans to invest $5.2bn to start producing the chemicals and materials used in electric vehicle batteries, as the global industry leader urgently tries to cut its dependence on China…The four-year investment by the world’s biggest EV battery maker comes as plans by countries and carmakers to pivot away from fossil fuel-powered vehicles are complicated by the industry’s heavy reliance on refineries and factories in China. The country is by far the planet’s largest processor of most of the minerals needed for battery production… “We will reinvent our company as the world’s largest battery material producer,” said Shin Hak-cheol, LG Chem’s chief executive…LG will hunt for investments and partnerships across mining, smelting and refining companies to improve its metal sourcing, Shin added…To meet that demand, LG said it would start building a cathode materials plant in Korea in December with an annual capacity of 60,000 tonnes. It expects its cathode production capacity to increase nearly seven-fold from 40,000 tonnes this year to 260,000 in 2026. 

UK electric van maker Arrival, said on Thursday that LeasePlan, one of Europe's largest car leasing companies, has made an initial order for 3,000 vans and will become its preferred leasing partner…LeasePlan has a global fleet of approximately 1.9 million vehicles in 30 countries. The Amsterdam-based company aims to achieve net zero emissions from its fleet by 2030…Arrival went public earlier this year via a merger with a special purpose acquisition company and its largest public van order to date is for up to 10,000 vans for package delivery giant UPS, which also owns a stake in the startup…The British van and bus maker said in May that it will also develop an electric car for Uber Technologies Inc that will go into production in late 2023.

United Airlines announced today what could be an important step toward electric commercial flight…The major airline announced that it invested in Heart Aerospace, a Sweden-based electric aircraft startup, and agreed to buy up to 200 electric planes…Battery technology has improved enough that short-range commercial planes are starting to make sense...The startup is developing the ES-19, a 19-seat electric aircraft meant for short flights. It believes that there’s an opportunity for electric aircraft to reopen short regional air routes with lower costs, thanks to fuel savings…At first, the startup plans for the ES-19 to only have up to 250 miles (400 km) of range but a commercially viable range for short-range flights with 19 passengers…Several major companies seem to agree with this strategy, as United Airlines Ventures (UAV), Breakthrough Energy Ventures, which is Bill Gates’s investment vehicle, and Mesa Airlines have announced an investment of an undisclosed amount in Heart Aerospace…Heart Aerospace is aiming for the ES-19 to enter commercial use as early as 2026…While the company aims for 250 miles of range at first, it expects the range to quickly improve with battery technology.

Europe’s largest battery storage project, the 100-megawatt system in Minety in Wiltshire, South West England, is now fully operational. Controlled and optimised by Shell-owned Limejump, the battery will help balance the UK’s electricity demand, providing electricity for up to 10,000 homes for a day before being recharged…Shell Energy Europe Limited signed a multiyear offtake agreement in early 2020 to trade all of the power from the battery, as part of Shell’s wider work to help accelerate the transition to cleaner energy sources. The Minety project, consisting of two 50-megawatt batteries, was developed by Penso Power and funded by China Huaneng Group and CNIC Corporation…Shell aims to make power a significant business that could sit alongside its oil, gas and chemicals businesses. It is building an integrated power business that includes generating renewable electricity, buying and selling it, storing it and supplying it directly to customers.

UK prosecutors have told Swiss authorities they have proof of an alleged money-laundering ring spanning from Africa to Europe that paid almost $380 million in cash bribes to authorities in the Democratic Republic of Congo…Companies repeatedly bribed officials to further their business interests in the mineral-rich nation, according to the Swiss court judgment that cited information from UK prosecutors. Congo is Africa’s biggest producer of copper and supplies about 70% of the world’s cobalt, a critical input for the batteries that power electric vehicles…The $379 million that was allegedly siphoned off in bribes over a five-year period is more than Congo’s total spending on health care last year. According to the World Bank, about one of every six people living in extreme poverty in sub-Saharan Africa is in Congo, a country the size of Western Europe with a population of more than 90 million…The UK’s Serious Fraud Office has been investigating the transactions with help from Swiss authorities, according to the judgment, which provides the most extensive account yet of alleged bribery in Congo…The UK prosecutors have records and affidavits showing that the alleged cash bribes went to “people in senior positions” in Congo’s government, as well as to “the right-hand” adviser of former President Joseph Kabila, 50, the Swiss court decision said. It refers to Kabila as “President M.”…Also making an appearance in the court decision is “C,” an individual alleged to be the main source of cash for the bribes. Information provided suggests that it’s Dan Gertler, an Israeli billionaire active in Congo who’s been sanctioned by the US for alleged corruption there…“The SFO investigation suggests that Congo doesn’t only have a huge corruption problem but also a gigantic money-laundering problem.”