The Democratic Republic of Congo has suspended nine subcontracting companies working at mines run by Eurasian Resources Group, as the cobalt and copper producer faces fresh complications in the country…The government first announced the ban on March 14, alleging that the firms aren’t controlled by Congolese nationals as required by law. The regulator said Tuesday the sanctions are still in place, after meeting with Kazakhstan-backed ERG last week…ERG “must appoint real companies with real Congolese shareholders,” Miguel Kashal Katemb, director general of the Regulatory Authority for Subcontracting in the Private Sector, said by phone…The allegations mark the latest sign of frayed relations between ERG and the Central African nation. The country supplies more than three-quarters of the world’s cobalt and is the second-largest copper producer, giving it an important role in the energy transition. The government says it’s striving to generate greater domestic benefits from its critical resources which are mined by international companies…State-owned miner Gecamines wants to take over some of ERG’s assets, saying the firm has been slow to develop them. The government has also halted activity at one of the company’s copper projects amid accusations of environmental damage…The latest measures affect firms with contracts at ERG’s two operating projects in Congo: Metalkol, which was the world’s fourth-biggest source of cobalt last year, and Frontier, which produced more than 100,000 tons of copper in 2023…Congo’s leaders made several attempts last year to regain potentially lucrative yet undeveloped permits from ERG, with Gecamines variously offering to buy some licenses, terminating the Swanmines joint venture and demanding the return of its permit for the Kalukundi copper-cobalt concession. ERG is fighting the cancellation in court. 

A US and European Union push to reach an accord on fostering critical mineral supply chains is set to miss another target this week, according to people familiar with the discussions. The final draft statement for a high-level trade and technology meeting in Leuven, Belgium, on Thursday falls short of a deal, instead it says the transatlantic allies “are advancing negotiations toward a critical minerals agreement,” according to a document seen by Bloomberg. An earlier version of the statement left open the door to an “agreement in principle.”…The US and EU are still hoping to reach an agreement later this year before elections on both sides of the Atlantic, said the people, who spoke on the condition of anonymity…An agreement is seen as important as it would allow European companies to access some of the benefits of the green subsidies in President Joe Biden’s Inflation Reduction Act, which provides handouts and tax credits over the next decade for clean-energy projects in North America…However, the benefits of having an FTA-like status through a minerals deal would likely not stretch to recycled critical minerals nor would it blunt final assembly provisions, meaning that many of what the EU sees as unfair irritants in the IRA would remain.

Despite billions of dollars of investment, fuel cell cars in the US are disappearing in the rearview mirror, overtaken by battery-electric models and stalled by hydrogen shortages and soaring fuel prices. Last year, drivers bought just 3,143 hydrogen cars in California — the only state that sells them — compared with 380,000 BEVs…Hydrogen’s proponents aren’t throwing in the towel. Toyota and Hyundai are pushing fuel cell models, albeit at heavy discounts, and Honda just announced a hydrogen hybrid version of its best-selling CR-V. California continues to build new infrastructure. But for drivers and would-be car buyers, the practical experience of going hydrogen-electric is bad and getting worse. “It’s clear what technology has won in the marketplace,” says David Reichmuth, a senior engineer with the Union of Concerned Scientists’ clean transportation program. “If we want to go as fast as possible to decarbonize, then the plug-in electric vehicle is clearly the technology with the infrastructure available to do that now.”…In 2018, Governor Jerry Brown set a target of 200 hydrogen stations by 2025, a goal to which the state has committed nearly $257 million. But last year Shell Plc quietly declined a $41 million state grant to build 50 stations, and California scaled back its target to 130 stations by 2027. In February, Shell shuttered six of its seven retail hydrogen stations in the state. A total of 66 stations remain, but 12 have been offline for more than 30 days and others sporadically shut down due to supply shortages or equipment problems…By contrast, California boasts just over 105,000 charging stations for plug-in vehicles. Battery-electric models accounted for 21% of new car sales in the state last year and Tesla’s Model Y and Model 3 were California’s top two best-selling vehicles…Across the state, the closures and downtime are leaving drivers scrambling to find fuel. On Reddit, one Mirai owner posted that their car had been towed twice recently after running out of fuel, as every hydrogen station within 25 miles had gone offline. A Sacramento-area tow truck driver chimed in that they tow several marooned hydrogen cars a month to the only fueling station still open in the state capital region. Complaints about fuel prices are just as common. Filling up a Mirai, a Hyundai Nexo or a Honda FCX Clarity runs a California driver about $200 — the equivalent of paying $14.60 for a gallon of gas…But deep discounts on fuel cell cars tell a different demand story. In March, Toyota offered up to $40,000 cash back on a new $49,500 2023 Mirai Limited, a lower-range model, plus 0% financing…Over at a Hyundai dealership, you could pick up a new $63,585 Nexo for $28,585 and pay no interest… Because a fuel cell powertrain weighs less than a battery, hydrogen-powered trucks can drive longer distances with greater loads…The state is also trying to green the hydrogen itself. Most of the hydrogen dispensed in California is gray, meaning it’s produced from natural gas, according to a state report released in December. Rasool says California has awarded $22 million for green hydrogen projects, including three plants that will tap renewable electricity to power electrolyzers, which produce hydrogen from water.

Chinese electric vehicle (EV) manufacturers have escalated a price war over the past couple of months, mainly prompted by intensifying market competition and falling battery manufacturing costs, according to market participants…Chinese EV producer Nio, whose sales surged by 31pc year-on-year to 160,000 units in 2023, on 1 April began offering a 1bn yuan ($138mn) package of subsidies to encourage gas-fuelled car owners to trade in their cars for a Nio-produced EV. Fellow automaker Chery on the same day also announced a "10bn yuan subsidy" campaign to offer discounts, coupons and purchase tax credits to car buyers…The automakers' promotion campaigns are adding fuel to the flames of competition in the Chinese EV market. China's largest EV producer BYD has reduced prices by as much as Yn20,000/unit for some NEV models to boost sales after the 10-17 February lunar new year holiday, with many of its domestic NEV counterparts, including SAIC GM-Wuling, Neta, X-Peng and Zeekr, following suit by cutting vehicle prices to attract orders…Domestic EV manufacturers' promotions are also part of their efforts to compete with vehicles running on fossil fuels, as EVs have not yet gained dominance in the Chinese automotive market, despite increased consumer adoption in recent years…The competition between internal combustion engine vehicles and EVs is expected to continue in the longer term. China's growing sales of NEVs — mostly battery electric vehicles — are eliminating gasoline demand by 25,000 b/d, according to Argus estimates. BYD last month unveiled a forecast that China's NEV penetration in weekly sales is likely to exceed 50pc in the coming three months.

Tesla has begun production of right-hand drive cars at its plant in Germany for export to India later this year, three people aware of the company's plans told Reuters, as it moves ahead with a possible entry into the world's third-largest car market…A team from Tesla is expected to visit India later this month to look at sites for a local car manufacturing plant that would require an investment of about $2 billion, said two of the three people, who declined to be named because the plans are not public yet…India last month slashed the import tax rate on certain electric vehicles if their makers invest at least $500 million in the country and start production there within three years. The move is a win for Tesla, which had lobbied for months for lower taxes, but faced resistance from local carmakers…Under the new Indian policy, companies can import up to 8,000 cars a year at the lower tax rate…Tesla's push into India comes at a time when slowing EV demand in its main U.S. and China markets coincides with intensifying competition from Chinese players…Tesla's India entry plan also includes investment in a charging network, which will come on top of the $2 billion earmarked for the plant, and sourcing more components locally, said one of the three sources…India's EV market, small but growing, is dominated by domestic carmaker Tata Motors. Electric models made up 2% of total car sales in 2023 but the government is targeting 30% by 2030.

Ford Motor Co. is delaying the start of electric vehicle production at its plant in Oakville, Ont., to 2027…The U.S. automaker had planned to start production in 2025 at the Canadian plant which employs 2,700 workers…Ford announced plans last year to spend $1.8 billion to transform its Oakville assembly plant into a hub for electric vehicle manufacturing including vehicle and battery pack assembly.