Japan and the U.K. are set to make joint investments in critical minerals in such places as Africa and set up a framework for discussing economic security at the ministerial level, with supply chains on the agenda…They aim to cooperate in developing mines -- which generally requires dealing with high costs and risks -- and to stabilize the supply of the minerals…The move comes with the development of cobalt and nickel mines crucial to such environmentally friendly technologies as electric vehicles and wind power in mind. Japan now depends on certain countries, including China, for these minerals. Under the framework, Japan and the U.K. would search for mining sites and set up refining facilities in such mineral-rich areas as Africa to diversify their supply sources…In Africa, Zambia is known for its production of copper and nickel, while Congo supplies about 70% of the world's cobalt. Many countries are showing interest in Mali's and Ghana's abundant undeveloped areas…Japan aims to pursue its interests in Africa by taking advantage of the network established there by the U.K., which has traditionally had relations with many of the continent's countries through the Commonwealth…Japan and the U.K. also aim to curb the growing Chinese influence in Africa, a continent of more than 50 nations that is important in the international political arena. China has been investing heavily in Africa for minerals and infrastructure.

The Inflation Reduction Act (IRA) is reshaping the landscape of metals and minerals demand, triggering a surge in critical minerals activity while structural permitting challenges in the US legal system could thwart the act’s efficacy, new analysis by S&P Global shows…In its Inflation Reduction Act: Impact on North America metals and minerals market report, released Thursday, market analysts highlight sourcing and production challenges as well as complications in navigating the permitting system…“Prolonged permitting processes and the spectre of potential post-permit litigation risks present formidable challenges across mining and refining countries. As the industry grapples with this multifaceted challenge, operational concerns stand out as a defining factor shaping domestic production prospects,” says Yergin…The report underscores the recognition, spanning the US political spectrum, that permitting stands as a significant hurdle in energy project development. Permitting challenges extend beyond the minerals sector, impacting diverse areas, from offshore wind ventures to natural gas pipelines…The IRA’s financial impact is significant, with the combined IRA and Bipartisan Infrastructure Law contributing a staggering $502 billion to new climate and energy investment…The situation is so acute that according to S&P Global data on 127 mines worldwide that began production between 2002 and 2023, a major discovery today likely would not be a productive mine until 2040 or after. Further, large and complex projects in politically sensitive areas can take longer…Anticipated growth in EV sales is projected to catalyze parallel expansion in battery raw material demand. The rise in EVs, coupled with IRA tax incentives, is forecasted to drive a 24% year-over-year increase in EV battery demand between 2021 and 2035. The intricate ties between EV battery demand and specific metals underscore the diverse battery compositions at play, according to S&P Global…The Act mandates sourcing minerals from domestic suppliers or Free Trade Agreement (FTA) partners. Yet, Yergin says that this quest exposes challenges embedded in prevailing trade patterns and the pivotal role non-FTA countries occupy in the critical metals market.

The cobalt hydroxide market has increasingly switched to conducting transactions on an outright $ per lb basis in 2023, due to cobalt metal price volatility and uncertainty in the hydroxide market…To capture the additional liquidity and reflect the changes within the cobalt hydroxide market, Fastmarkets has changed the frequency of its previously weekly cobalt hydroxide index to now be a...

Europe's carmakers have a fight on their hands to produce lower-cost electric vehicles (EVs) and erase China's lead in developing cheaper, more consumer-friendly models, executives said at Munich's IAA mobility show…"We have to close the gap on costs with some Chinese players that started on EVs a generation earlier," Renault CEO Luca de Meo told Reuters at the car show, adding when manufacturing costs decline, prices will also go down…Chinese EV makers, including BYD, Nio and Xpeng are all targeting Europe's EV market, where sales soared nearly 55% to about 820,000 vehicles in the first seven months of 2023, making up about 13% of all car sales…Xpeng plans to expand into more European markets in 2024, and Zhejiang Leapmotor…Technology announced five models for overseas markets, including Europe, over the next two years…According to auto consultancy Inovev, 8% of new EVs sold in Europe so far this year were made by Chinese brands, up from 6% last year and 4% in 2021…The average EV in China cost less than 32,000 euros ($35,000) in the first half of 2022 compared with around 56,000 euros in Europe, according to researchers at Jato Dynamics…"The base car market segment will either vanish or will not be done by European manufacturers," BMW CEO Oliver Zipse said on Sunday evening in reference to China's push into Europe.

As Shanghai sweltered in a heatwave in June, the car factory where Mike Chen works switched production to night shifts and dialled down the air-conditioning…For Chen, toiling through the early hours in his sweat-soaked uniform, it was the latest slap in the face after cuts in bonuses and overtime slashed his monthly pay this year to little more than a third of what he earned when he was hired in 2016…Millions of auto workers and suppliers in China are feeling the heat as an electric vehicle price war forces carmakers to shave costs anywhere they can…"SAIC-VW used to be the best employer and I felt honoured to work here," said Chen. "Now I just feel angry and sad."…The price war triggered by Tesla has sucked in more than 40 brands, shifted demand away from older models and forced some automakers to curb production of both EVs and combustion-engine cars, or shut factories altogether…Reuters interviews with 10 executives of carmakers and auto parts suppliers, as well as seven factory workers, point to a broader industry in distress, with penny-pinching on everything from components to electricity bills to wages - which is in turn hitting spending elsewhere in the economy…The problem is that while there has been huge investment in production capacity, helped by large state subsidies, domestic demand for cars has stagnated and household incomes remain under pressure, economists say…In the first seven months of 2023, China sold 11.4 million cars at home and exported 2 million, but growth came almost entirely from abroad. Exports leapt 81% but domestic sales only crept 1.7% higher - despite the widespread price cuts…Including factories making combustion-engine cars, China had the capacity to produce 43 million vehicles a year at the end of 2022, but the plant utilisation rate was 54.5%, down from 66.6% in 2017, China Passenger Car Association (CPCA) data show…At the same time, pay cuts and lay-offs in the auto industry and its suppliers - which employ an estimated 30 million people according to Chinese state media - are hitting living standards at a time when Beijing desperately wants to lift consumer confidence from near record lows…The EV battery market has also turned, with suppliers cutting prices for automakers. CATL, which counts Tesla as its biggest client, offered smaller domestic EV makers discounted batteries in February…Lithium iron phosphate (LFP) batteries, the type used by Tesla in China, were 21% cheaper in August than five months ago, while nickel-cobalt batteries were 9% to 18% cheaper, RealLi Research data show.

U.S. automaker Tesla sold 84,159 China-made electric vehicles (EVs) in August, a 9.3% rise from a year earlier, data from the China Passenger Car Association (CPCA) showed on Monday. Sales of China-made Model 3 and Model Y cars rose 30.9% from a month earlier.

Indonesia's financial regulator (OJK) is considering making coal-fired power plants that supply electricity to electric vehicle battery manufacturers eligible for green financing, its chief said on Tuesday, drawing criticism from environmentalists…OJK chief Mahendra Siregar told reporters Indonesia's "green taxonomy", a framework defining what investment is considered environmentally friendly, is currently being revised to include funding for early retirement of coal power plants, to match the taxonomy agreed by the Association of Southeast Asian Nations (ASEAN)…Under the same review, the OJK would consider to expand the green label to loans for coal-fired power plants used by industries that make products considered sustainable, such as batteries for electric vehicles, Mahendra said…"It is extremely concerning that now, new coal-powered generation could be seen as protecting or improving the environment. This simply goes against scientific evidence," analysts at IEEFA said…While many global banks have stopped funding coal assets, most Indonesian lenders have continued to finance projects related to the fossil fuel. Indonesia is one of the world's top carbon emitters and also the biggest exporter of coal globally.