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Japan’s domestic EV sales fall in 1H 2024

  • Market: Battery materials, Metals
  • 04/07/24

Japanese sales of domestic passenger electric vehicles (EVs) in the first half of the year fell sharply from the same period a year earlier.

Sales totalled 29,282 units during January-June, down by 39pc on the year, according to preliminary data from industry group the Automobile Dealers Association, the Japan Light Motor Vehicle and Motorcycle Association and the Japan Automobile Importers Association (JAIA).

The share of EVs in the total passenger vehicles sales was 1.6pc, down by 0.7 percentage points from a year earlier.

The sharp fall is mostly attributed to a decline in light passenger EV sales, which fell by 45pc on the year to 13,540 units. This is largely because the sales of Nissan's Sakura, one of the top-selling models in the market with a share of around 90pc, fell to 12,082 units, down by 38pc from a year earlier.

Light cars are defined as vehicles with a length, height and width of less than 3.4m, 2m and 1.48m respectively and an engine capacity below 0.66 litres, which is the Japanese standard.

Sales of ordinary passenger EVs also fell to 15,742 units, down by 31pc from a year earlier. The rate of decline was lower than that of light passenger EVs because of imported passenger EVs, for which sales increased by 16pc on the year to 10,689 units. Foreign EVs account for around 68pc of ordinary passenger EV sales.

Foreign brands are dominating Japan's EV market by "offering wider variety of models than domestic manufacturers," according to a representative of JAIA that spoke to Argus. BMW in June introduced its MINI's EV model to the Japanese market, but the sales volume was undisclosed.

Domestic EV sales in June totalled 5,010 units, down by 37pc, marking eight consecutive months of year-on-year declines.


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27/02/25

Mexico manufacturing exports decline in January

Mexico manufacturing exports decline in January

Mexico City, 27 February (Argus) — Mexico posted a trade deficit of $4.56bn in January, as manufacturing exports narrowed sharply at a time of mounting tensions in US-Mexico trade relations. The result, reported Thursday by statistics agency Inegi, was the widest monthly deficit since last August and compares with a $2.57bn trade surplus in December. Mexico exported goods valued at $44.45mn in January, down from the $51.7bn exported in December. This was largely due to a 14pc decrease to $39.77bn in the value of manufacturing exports in January from the previous month, with auto exports dropping 17pc to $12.47bn, the lowest in more than two years. The decline came despite the threat of 25pc US blanket tariffs on Mexican goods, in part due to seasonal base effects. Nevertheless, "the region's supply chains operated at full capacity" to avoid higher costs should the Mexican peso depreciate with the US tariffs, said Mexican bank Banorte. The bank added, "nervousness continues" over possible tariffs on Mexican exports with US president Donald Trump saying the tariffs would be implemented on 4 March. Bilateral meetings are ongoing to reach an agreement avoiding tariffs. Car tariffs Beyond the blanket tariff, Mexico is also facing a possible 25pc global tariff on US imports of aluminum and steel, effective 12 March, and possible targeted 25pc tariff on autos and other goods from 1 April. Nissan's global chief executive Makoto Uchida has said the company would have to analyze its production in Mexico if tariffs are enacted. Mary Barra, the chief executive of General Motors, said the company may shift production from Canada to Mexico should tariffs be applied on Canadian autos. Inegi reported the value of oil exports in January was $1.66bn, consisting of $1.2bn in crude sales and $457mn in other oil-related products. This compares with crude oil sales of $1.75bn in December. The average price of the Mexican crude oil mix for export stood at $67.57/bl in January, $2.27/bl higher than in December, but $3.57/bl lower than a year earlier. Meanwhile, Inegi reported daily crude export volumes averaging 573,000 b/d in January, lower than the 864,000 b/d in December and down from 982,000 b/d in January 2024. Agricultural goods represented $2.17bn of Mexican exports in January, up slightly from $2.15bn in December. The value of imports in January decreased only 0.2pc to $49bn, with lower imports of consumer and capital goods offsetting a small increase in intermediate goods. By James Young Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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UK steelmakers seek greater import protection


27/02/25
News
27/02/25

UK steelmakers seek greater import protection

London, 27 February (Argus) — UK steelmakers are concerned about potential trade diversion from the US and EU and are pushing for rapid measures to curb imports, sources suggest. The US is imposing 25pc tariffs on 12 March, while the EU steel safeguard review is expected to meaningfully reduce import volumes. As a result, UK Steel, which represents mills, told Argus current import quotas have been "liberalised year after year when UK steel demand has been shrinking, so there is real concern that the protection offered is not adequate". "We are reviewing options for tightening our current safeguards and working on a proposal to government for continued protection from trade diversion following the eventual expiry of steel safeguards," it added. One of the potential options could be a blanket tariff on all imports, outside of hot-rolled coil (HRC) for downstream processing. This could be the quickest and most viable solution to the threat of diversion, given the time it can take to adjust quota volumes, according to some sell-side sources. Atypical HRC suppliers have started offering into the UK recently, potentially because of the uncertainty surrounding the EU safeguard review and the ongoing dumping investigation against Egypt, Japan, India and Vietnam. Japanese HRC has recently been offered at about £500/t ddp West Midlands, when it is not typically seen in the market. Korean HRC has also been offered. Korean cold-rolled coil, and hot-dip galvanised in particular, have been offered at aggressive prices for a number of months. "This government will not allow the end of steelmaking in the UK, which is why we've committed up to £2.5bn of investment to rebuild the industry, while our plant for steel consultation will examine the long-term issues facing the industry," a Department for Business and Trade spokesperson said. The business secretary and industry minister continue to meet with the industry to "secure a green steel transition that's right for the workforce", the spokesperson added. Any blanket tariff could be justified on the grounds of national security or decarbonisation, sources suggest. In the case of the latter, it is not clear how less pollutant steel should be handled, or how you classify material rolled from blast furnace-based semi-finished steel in other regions. By Colin Richardson Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Illinois River lock reopening delayed: Corps


26/02/25
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26/02/25

Illinois River lock reopening delayed: Corps

Houston, 26 February (Argus) — The US Army Corps of Engineers (Corps) delayed the reopening of the Lockport Lock along the Illinois River by over a month after finding significant cracks in the lower gate walls. The Corps now estimates the lock to resume operations between 30 April and 6 May at the earliest. The Lockport Lock was previously scheduled to reopen on 25 March , after the two gates on the upper end of the lock were replaced. When the Corps dewatered the lock chamber earlier this month, severe cracks were found in both the lower gates. The Lockport Lock grants access to major trading hubs Chicago, Illinois, and Burns Harbor, Indiana, at the end of the Illinois River. The lock has been closed since 28 January. Major barge carriers had already planned transit routes for the previous reopening timeline of the Lockport Lock. These dates have been paused until April, instead of late February. The delayed timeline will prolong shipment of major products such as metals, asphalt, petcoke, fertilizer and biofuels. Another 5-6 weeks of work will be required for replacement of the lower gate walls, said the Corps. Both lower gates need to be pulled, and there are no spare castings for the Lockport gates, incurring an extended timeline. A different heavy lift crane must be brought in and funding must be acquired for the additional interim and permanent repairs, said the Corps. Work has already begun for replacement of the upper gates, including bulkheads, rebar installation and upper gates pulled into the chamber. By Meghan Yoyotte Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Delayed EU CO2 targets could 'kill' local EVs


26/02/25
News
26/02/25

Delayed EU CO2 targets could 'kill' local EVs

London, 26 February (Argus) — European carmakers' plans to delay CO2 targets, according to a recent report by clean energy think-tank Transport and Environment (T&E), will "effectively kill the dreams" of a local electric vehicle (EV) supply chain, as market participants reported to Argus this week. "There would be damaging consequences from the EU stepping back from its goals," advocacy group E-Mobility secretary general Chris Heron told Argus . "We are already seeing all of this discussion [to delay CO2 targets] is having a chilling effect on investment. A relaxation [of CO2 targets] will effectively kill the dreams of a European battery value chain," research group Circular Energy Storage wrote in a recent newsletter In response to the T&E report, a spokesperson from Europe's largest carmaker Volkswagen Group told Argus that the 2025 CO2 targets still represent a "particularly significant challenge". 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Infrastructure and lobbying weighs on BEV progress Other sources question whether European carmakers' lobbying tactics distract from the vital need to invest in electrification, as the market share of Chinese-branded EVs in the EU and UK continues to rise. "The power of the vehicle manufacturing regulatory compliance lobby hasn't changed… lobby, threaten, negotiate but always be ready to comply," Japanese carmaker Nissan former chief operating officer Andy Palmer told Argus . "To be fair to the OEMs, the pain needs to be shared. Charging infrastructure needs to be accelerated to allow batteries to be right sized… it's about fixing planning permissions and grid connections," Palmer added. Last year, 21 of the 27 EU member states were on track to meet public charging infrastructure targets, but next year this is due to fall to just two countries — Bulgaria and the Czech Republic, according to a report by T&E last year. Despite this, Europe's existing charging networks are not saturated by EVs, Herron added, suggesting that BEV sales must continue to increase to spur further charging installations. "Charging stations can accept 5-7 more vehicles today, but charging investments need predictability," he added. And market participants have also implored carmakers to shift to smaller, more affordable BEVs to support charging investments, despite them offering weaker profit margins than ICE sports utility vehicles (SUVs) (see graph) . "German OEMs missed a trick when they went for big margin EV SUVs when what the world wanted was electric Ford Fiestas," campaign group FairCharge founder Quentin Willson told Argus . "Legacy auto needs to change its behaviours and build EVs with global relevance and go for volume rather than high margins that incur steep depreciation for consumers." 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The commission also released its "Clean Industrial Deal" action plan today, a follow-up to the earlier Green New Deal, with plans to activate more investment in clean-tech but also a decision to delay the proposing of an EU 2040 climate target. The news today is a backtrack on last February's announcement , which recommended a 90pc reduction of net greenhouse gas emissions by 2040, compared with 1990 levels. By Chris Welch BEV January sales growth, year on year, % European carmakers' operating profit margins % Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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DRC cobalt clampdown 'offers only temporary reprieve'


26/02/25
News
26/02/25

DRC cobalt clampdown 'offers only temporary reprieve'

London, 26 February (Argus) — A ban on cobalt exports from the Democratic Republic of Congo (DRC) is a clumsy and temporary solution to the long-term problem of oversupply, traders have told Argus . The ban announcement, strategically timed to coincide with a large industry event, has caused a stir among market participants and led to some volatility in the market, but traders doubt the long-term impact of the ban. Prices for cobalt hydroxide remained stable at $5.60-5.80/lb, their lowest since the launch of the assessment and unaffected by the ban so far. Most participants said the ban will simply lead to stockpiling at mines in the DRC, with as much as 50,000-70,000t of cobalt hydroxide potentially affected, based on a range of trader estimates. "For now, by implementing only an export ban, they are simply relocating accumulated stockpiles from ports and China back to the DRC," said an analyst at a large mining firm operating in the DRC. "Once the ban is lifted, prices are likely to return to previous levels." Another trader said there is "plenty of stock outside the DRC not subject to the export ban", with stocks reportedly high at the port of Durban in South Africa, and in Malaysia. "We may see some impact on supply, with smaller mines potentially shutting down, but I don't think it will be enough to rebalance the market," an analyst said. Short-term metal volatility There was some short-term volatility in the metals markets, which tend to be more reactive than hydroxide. Prices for Chinese cut cathodes in Europe rose to $9.50-10.50/lb, while prices for metal in China increased to Yn153-178/kg ex-works on 25 February, up from a 10-year low of Yn150-175/kg ex-works on 20 February. Prices on the Wuxi and CME exchange indexes also jumped. Traders on the spot market offered material at speculative prices. One trader offered some Chinese material at $11.20-11.25/lb, but with no feedback yet. The element of surprise may temporarily jolt the market, traders said. "No-one knew in advance... it took several hours for market participants located in [the DRC] to officially confirm the information," one analyst said. "Of course the news is generating panic, most traders are short, nothing happens like it should happen," said one trader. "It looks like it was released on purpose during the Shanghai conference... to have maximum effect." Enforcement problems and potential for extensions Traders in the cobalt market said this kind of ban has not been attempted in the DRC before and could lead to issues with enforcement. "This one is a complete blanket ban on cobalt, it's not been done before in this kind of form... Most people are waiting for clarity on how [it will be] enforced at the border," one trader said. The nature of some of the smaller-scale and artisanal cobalt mines in the DRC make any blanket ban difficult to enforce and the border with Zambia has been described as "leaky". The border between the DRC and Zambia was closed from 20 March 2020 to 8 May 2020 owing to Covid-19, which caused a spike in cobalt prices later that year as hydroxide deliveries slowed to China. Market participants warned that if the ban continues there could be longer-term effects and it could be the opening salvo in a new strategy by the DRC to control its cobalt resources. "Maybe they are going to use the reverse Chinese strategy, of setting their lowest ideal price and stopping production if it reaches it or drops below it. If that is the case, this stop and start could go on for years," a trader said. An analyst said a move to quota systems could be good for the DRC, or the country risks "repeating the consequences of previous export bans", leading to a cycle of boom and bust in the markets. By Thomas Kavanagh and Chris Welch Annual mined cobalt production t Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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