The International Energy Agency is launching a program to secure the supply of minerals critical to energy security, as demand rises fast while manufacturing remains in the hands of a few key producers, its executive director said on Tuesday…Fatih Birol said the production of electric cars, solar panels and other energy equipment requires a steady supply of minerals such as lithium, cobalt and copper…The IEA continues to keep an eye on oil and gas markets, Birol said, but the supply chain of energy technologies is an important emerging security challenge…"Currently, we are A, not able to keep up with the demand, and B, the ability of manufacturing these critical minerals is concentrated in one single country or two," he said…He did not give further details, but said the program was "inspired by our oil security mechanism", which requires member countries to hold 90 days' worth of oil stocks that can be released in the event of global supply disruptions…China is the main producer for 30 out of 50 critical materials, according to a U.S. Aerospace Industries Association paper last year, and is the world's top miner and processor of rare earths…The IEA's move comes as countries escalate efforts to cut emissions, requiring ready supplies of critical minerals such as lithium, copper, nickel, cobalt, manganese and graphite used in batteries, and rare earth elements used in wind turbines and electric vehicles.

Canada plans to boost its energy security by slashing the time it takes to develop new critical mineral mines by nearly a decade with improved permitting processes, energy minister Jonathan Wilkinson told Reuters on Tuesday…Ottawa is focused on six critical minerals key to making electric vehicles and wind turbines: lithium, graphite, nickel, cobalt, copper, and so-called rare earth elements…"(We're) looking at how do we optimise the regulatory and permanent processes so you can take what is a 12 to 15-year process and bring it down to maybe five," he said…The country will have to continue importing cobalt, Wilkinson said, due to its limited resources of the metal. China controls most of the world's refined cobalt and rare earths supplies…To cover costs, Canada is putting in place investment tax credits to pay for a "significant chunk" of the capital associated with new mining and mineral processing projects, Wilkinson said…Funds are also ready to be made available for infrastructure like transmission lines and roads that will help accelerate the development of new minerals, he added.

The U.S. government has reimbursed auto dealers for about $135 million in advance point-of-sale consumer electric vehicle tax credit payments since the start of the year through Feb. 6, the Treasury said on Wednesday…Prior to 2024, U.S. auto buyers could only take advantage of the $7,500 new electric vehicle credit or $4,000 used EV credit when they filed tax returns the following year…The Internal Revenue Service has received more than 25,000 time of sale reports, including more than 19,500 - or 78% - with advance payment requests and approximately $135 million has been paid to dealers since Jan. 1, Treasury said in disclosing the previously unreported figures…"One month into implementation of this provision, there is strong demand for this new upfront discount, which will continue momentum in growing this industry in the United States," Deputy Treasury Secretary Wally Adeyemo said in a statement…In January, many EVs lost eligibility for tax credits after new battery sourcing rules took effect, including the Nissan Leaf, some Tesla Model 3s , Chevrolet Blazer EV, Cadillac Lyriq, Ford Mach-E and Ford E-Transit…The Treasury issued guidelines in December aimed at weaning the U.S. electric vehicle supply chain away from China. The number of EV models qualifying for U.S. EV tax credits fell on Jan. 1 to 19 from 43, but since then Volkswagen regained eligibility for versions of its ID.4 EV.

On the outskirts of Monterrey, Mexico, Chinese auto-parts makers are rapidly setting up plants to supply Tesla Inc.’s next factory. They join the ranks of Chinese manufacturers that opened Mexican facilities in response to Trump-era tariffs — and this new surge has set off alarm bells in Washington…Chief Executive Officer Elon Musk invited Chinese suppliers to Mexico to replicate the local supply chain at Tesla’s Shanghai plant, according to people with knowledge of the situation. The company plans to build a cheaper next-generation electric vehicle at a massive facility in the state of Nuevo Leon, helped in part by $153 million in local government incentives…Tesla didn’t respond to a request for comment. Its Austin plant isn’t the only one in the US buying Chinese-owned Mexican-made parts, as exports continue to rise…The value of Chinese auto parts made in Mexico and exported to the US reached $1.1 billion in 2023, up 15% over the previous year, according to previously unreported preliminary data from INA, Mexico’s national auto-parts industry association. Last year, there were 33 Chinese auto-parts makers registered in Mexico, 18 of which exported to the US, according to INA…The trade war then-President Donald Trump started in 2018 helped spur Chinese investment in third-party countries like Mexico. By 2023, Chinese industrial companies were using 9.31 million square feet of Mexican industrial park space, up from 1.28 million square feet in 2019, according to market data from development firm Finsa…Electric vehicles assembled in Mexico can also qualify for a US consumer tax credit of as much as $7,500 under the 2022 Inflation Reduction Act, President Joe Biden’s signature climate law. To do so, they must adhere to strict limits on the amount of battery materials coming from “foreign entities of concern,” or firms with ties to rival countries such as China…Automakers and some global suppliers have not spoken up about the trend for fear of endangering their own interests in China. But the trade group for Canadian auto-parts manufacturers and the United Auto Workers have flagged what they deem an “alarming” increase in China’s Mexican investments to avoid US trade policy enforcements…US tax lawyers have even identified a path through which a Chinese-owned subsidiary based in Mexico could build full EVs that would qualify for the $7,500 US tax credit, so long as no battery minerals or components were sourced from China…BYD, Chery Automobile Co. and SAIC Motor Corp.’s MG brand already are looking to open plants in Mexico. These manufacturers could start construction in four years, begin production in six years and then export vehicles to the US, said Roland Berger consultant Oscar Silva Eguibar…“The only way that the Chinese companies can avoid anti-dumping measures and really be able to export EVs to the US would be by establishing full manufacturing capacity in Mexico,” he said…Bloomberg reported earlier this month that the Biden administration was considering restricting all imports of electric Chinese “smart cars” no matter where they’re assembled. US officials are concerned that the vast troves of data these vehicles collect could present hacking or national security threats…China dominates the mining and processing of critical minerals such as lithium needed for EV batteries, adding to US concerns…US and Canadian concerns could lead to changes in the next review of the North American free trade agreement USMCA in 2026, said Kelly Ann Shaw, a partner at law firm Hogan Lovells in Washington, who has focused on international trade.

Congo state miner Gecamines said it has made a firm proposal to buy some of Eurasian Resources Group's copper and cobalt assets in the country in a bid to claw back projects owned by partners and build reserves in metals key to the green transition…The Democratic Republic of Congo's mining unit wants to buy three of the Khazakh miner's assets in the country and has funds to finance the purchase, Robert Lukama, the chairman of Gecamines told Reuters…Luxembourg-based ERG is 40% owned by the Kazakhstan government and its assets in Congo include, opens new tab Frontier mine, Comide, Metalkol, Boss Mining and some development and near-production assets…Gecamines, which ranked among the world's top copper producers in the 1980s, is pushing for a bigger role in production and supply of critical minerals. Last year the state miner said it was leveraging its shareholding in joint ventures to secure rights to buy and trade in copper and cobalt…He added that Gecamines is focused on creating value and is "entitled" to claim back undeveloped assets…ERG has been negotiating with DRC authorities to lift the suspension of its Boss Mining operations. The government halted the operations in June last year after accusing ERG of polluting the environment.