Canada needs to quickly ramp up production of critical minerals and play a global leadership role to defend against energy security crises triggered by countries that use fossil fuels as a weapon, said the head of the International Energy Agency.

Tesla Inc suppliers are bracing for pressure from Chief Executive Elon Musk and his team to cut their prices further after the electric car leader aggressively slashed vehicle prices in a slowing economy, industry officials who work with the automaker and its suppliers said…The suppliers saw as ominous last month's comments by Tesla Chief Financial Officer Zach Kirkhorn that the carmaker was "attacking every other area of cost" including the supply chain, and would work closely with suppliers. During Tesla's earnings conference call last week, Musk said a recession could lead to "meaningful decreases" in almost all its input costs…"It is never good for suppliers when (automakers) cut vehicle prices because that pressure rolls downhill," said Dan Sharkey, an attorney who represents suppliers to Tesla and other automakers. "I never like it, because I know eventually they're going to try to get it out of one of us."…In China, Tesla's second-largest market, the automaker has also pressed suppliers to lower costs, according to two people with knowledge of the matter who asked not to be named because the discussions were private…In a meeting with one supplier in mid-January, for example, Tesla floated a target of cutting costs by 10% because of intensifying competition, one of the people said…While the resulting pressure on suppliers to cut their prices is not new, one executive at a Tesla supplier who asked not to be identified said the EV leader during the COVID-19 pandemic had focused more on delivery over pricing and was willing to even pay more to get parts faster. He worries the comments on last month's earnings conference call signal that may change…Musk may seek to reassure suppliers that any potential losses they suffer in lower pricing will be made up in higher volume, industry officials said…Nevertheless, some suppliers are increasing prices due to material cost inflation…"Tesla will now be doing what every other (automaker) has been doing for decades," said the executive, who asked not to be identified.

Tesla plans to step up output at its Shanghai plant over the next two months to meet demand ignited by aggressive price cuts on its best-selling models, according to a planning memo seen by Reuters and a person with knowledge of the plan…The automaker plans to produce a weekly average of nearly 20,000 units at its Shanghai factory in February and March, according to the memo, which detailed output plans for Tesla's most productive and profitable manufacturing hub…That level of production would take the plant's output to roughly its rate in September, when it turned out 82,088 Model 3 and Model Y cars, according to data from China Passenger Car Association…Musk said 2023 deliveries could hit 2 million vehicles, so long as there was no external disruption…Tesla's price cuts in China have sparked what analysts have described as a price war, as Chinese automakers Xpeng and Seres' Aito have followed the company in cutting prices.

Germany's Economy Minister Robert Habeck and French Finance Minister Bruno Le Maire will head to Washington next week to press concerns about U.S. climate subsidies and urge a favourable treatment of European businesses…While European leaders welcome the new impetus towards green energy transition given by the Biden administration's so-called Inflation Reduction Act, they also fear that the $369 billion of subsidies largely targeting North America-based manufacturers could lure companies away from Europe…Some in Europe argue the subsidies breach World Trade Organization rules, but there is no appetite for a trade war with the United States and a recognition that Europe's best hope lies in influencing how the scheme is applied in practice…Under IRA, new electric vehicle tax credits apply to those with final assembly as well as key inputs made in North America, which includes Canada and Mexico - countries that have free trade pacts with the United States…One focus of the Franco-German trip is to seek treatment for Europe comparable to that for Mexico and Canada, a senior EU official said…While the scale of the U.S. subsidies has attracted most attention, the EU has large potential resources of its own. A German government source said an initial analysis showed they could even be comparable to those available under IRA…Chancellor Olaf Scholz said last month almost 180 billion euros would be available for 2023-2026 under the German climate and transformation fund, a supplementary budget to push green investments, while the IRA's $369 billion covers 10 years…"The real problems are the incentives to make firms move production to the United States," said the official, referring to the local content requirements…"Due to the IRA and the very high electricity and energy prices, especially in Germany, Europe is becoming less and less competitive," a spokesperson for Volkswagen said.