The European Union and the US are nearing an agreement on critical minerals that would provide EU companies access to some of the massive green subsidies offered in President Joe Biden’s Inflation Reduction Act…The deal will likely be similar to an agreement the US signed with Japan this week that also included a commitment to not impose restrictions or export duties on cobalt, graphite, lithium, manganese and nickel that are used in electric car batteries, according to people familiar with the talks…Biden and European Commission President Ursula von der Leyen announced earlier this month in Washington that they were trying to reach a deal on critical minerals…The minerals agreement, and an earlier US concession covering leased electric vehicles made in the EU, are unlikely to address all of Europe’s concerns, said the people who spoke on the condition of anonymity. The US is expected to issue guidance on the legislation this week.

Australia is at risk of losing its head start in critical minerals processing because it has not yet laid down a national strategy, even as other governments are splashing out incentives to grab market share and bolster security…Supplier of nearly half of the world's lithium, Australia is also the world's third-largest cobalt exporter and a significant producer of rare earths, copper, graphite, manganese and other minerals key to the global energy transition…However those minerals are largely processed in China, including into materials essential in batteries and magnets for products from electric vehicles to missiles. Western nations want to ease its grip after supply was disrupted during the COVID-19 pandemic…Consultants say Australia should at least move to producing the chemicals and battery active materials needed for cell manufacturing…Industry executives are calling for a national strategy to speed that development by fast-tracking permitting, offering preferential access to industrial land and subsidies, among other measures…They want rapid action in light of new competition from the U.S., Canada and the European Union, which have laid out critical minerals strategies including billions of dollars in incentives…Cobalt Blue Holdings Ltd, with a market value of A$140 million, won a small grant and fast-track permitting status but still faces a funding shortfall and wants government assistance to secure a refinery site for its A$560 million project, investor relations manager Joel Crane said…"One of the largest issues we face is project funding," Crane said…"The elements for an effective critical minerals strategy are in place. The challenge is to stitch them together and deliver. This is a once-in-a-century opportunity," the Grattan Institute said in a report last month.

U.S. carmaker Ford has joined PT Vale Indonesia and China's Zhejiang Huayou Cobalt's as their new partner in a $4.5 billion nickel processing plant in Indonesia, the companies said on Thursday…The investment is Ford's first in the Southeast Asian country and underscores growing appetite among automakers for raw materials used in producing electric vehicle (EV) batteries, which account for about 40% of a vehicle's sticker price, aiming to cut costs and close the gap on EV market leader Tesla…Volkswagen, Europe's biggest automaker, this month said that it would invest 180 billion euros ($196 billion) over five years in areas including battery production and the sourcing of raw materials…The proposed high-pressure acid leaching (HPAL) plant will be located in Pomalaa in Southeast Sulawesi, where Vale operates a nickel mine…Febriany Eddy, chief executive of Vale Indonesia, said the deal is unique in bringing the U.S. automaker into an upstream nickel business…"Ford can help ensure that the nickel that we use in electric vehicle batteries is mined, produced within the same ESG standards as part of our business around the world," Christopher Smith, Ford's chief government affairs officer, said at the signing ceremony.

European Union member states gave final approval Tuesday to a plan that would require all new cars sold in the EU to be zero-emission vehicles starting in the year 2035…President Biden has said he supports the proliferation of electric vehicles, and in 2021 he signed an executive order setting a goal that half of all new passenger cars and light trucks sold in the U.S. in 2030 be zero-emission vehicles, including plug-in hybrids…Several states have announced future bans on gas-powered cars, though. California, Maryland, Massachusetts, New Jersey, New York, Oregon and Washington have all said they would prohibit the sale of new gas-powered vehicles beginning in 2035, Money reported…Some of the challenges of switching to zero-emission vehicles include the persistently high cost of electric cars, China's dominance of the electric battery supply chain, and a lack of charging infrastructure.

As the world accelerates toward emissions-free driving, Canada is making a big push into batteries for electric vehicles -- touting tax incentives, bountiful critical minerals and clean energy to attract multinationals…Its efforts appear to be paying off with companies such as Volkswagen and Stellantis opening plants and more than Can$18 billion (US$13 billion) in investment attracted to the sector, which is emerging as second only to top battery manufacturer China…This week Ottawa doubled down with the introduction of a 30 percent tax credit for new machinery and equipment used to manufacture clean technologies, and to mine or recycle cobalt, lithium, nickel and other critical minerals used in EV batteries…The Germany-based auto giant is also the first new manufacturer to set up shop in Canada in 35 years…Multinational automaker Stellantis and LG Energy Solution have also partnered on a new battery plant in Canada, while French tire manufacturer Michelin is expanding its local facility…And General Motors has signed a longterm agreement with Brazilian mining giant Vale for supplies of Canadian nickel for use in EV batteries…"Making the greenest vehicles in the world is really our intention to attract more investment," said Champagne, as the West seeks to bring back manufacturing lost in past decades to China, which now controls 75 percent of the world's production of advanced lithium-ion batteries…Sarah Houde, of economic development agency Propulsion Quebec, said Canada is one of the world's only countries "that has all the minerals necessary for the production of batteries."…The relative proximity of its mines to battery factories and auto assembly plants in both Canada and the United States is also a plus…According to the International Energy Agency, demand for essential minerals could quadruple or even increase sixfold by 2040…Canada is also hoping to tap into some of the billions of dollars announced by Washington for electric vehicles, batteries and renewable energy projects.