Korea's LGES inks US energy storage system battery deal

Market: Battery materials, Metals
26/03/25

South Korean battery manufacturer LG Energy Solution (LGES) has secured a deal to supply Taiwanese electronics manufacturing firm Delta Electronics a total 4GWh of residential energy storage system (ESS) batteries.

The two firms signed a "strategic partnership" and the US-produced batteries will be supplied during 2025-30, said LGES on 26 March. LGES will begin the production of lithium-iron-phosphate (LFP) ESS batteries in the second half of 2025 at its plant in Holland, Michigan, which will be equipped with an ESS production line.

They will also under the partnership explore the power grid and commercial ESS markets, said LGES. Delta last year agreed to jointly develop new electric vehicle (EV) charging architecture in the US alongside the US' EV public charging station provider EVGo.

LGES last year said it plans to reduce its dependence on the EV battery business and is looking to produce ESS cells in the US from 2025 through its subsidiary, LGES Vertech.

The anticipation of higher tariffs on Chinese ESS batteries coming into effect in the US has driven LGES to expect greater growth in market demand for US-produced batteries, the firm said.

The firm earlier this week signed another LFP ESS battery deal with Polish state-controlled utility PGE and it intends to also expand ESS battery production in Europe.

By Joseph Ho

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28/03/25

US consumer confidence down on policy angst

Houston, 28 March (Argus) — The University of Michigan's gauge of consumer sentiment fell in March to the lowest level since November 2022, led by a slump in expectations over the "potential for pain" from US economic policies introduced by the new administration. Sentiment fell to 57, down from 64.7 in February and 79.4 in March 2024, according to the University of Michigan's consumer sentiment survey released Friday. The final reading for March was lower than the preliminary reading. The sentiment index fell to a record low of 50 in June 2022 on inflation concerns. The index of consumer expectations fell to 52.6, the lowest since July 2022, from 64 in February and 77.4 in March last year. The expectations index has lost more than 30pc since November last year. "Consumers continue to worry about the potential for pain amid ongoing economic policy developments," the survey director Joanne Hsu said. The decline "reflects a clear consensus across all demographic and political affiliations: Republicans joined independents and Democrats in expressing worsening expectations … for their personal finances, business conditions, unemployment and inflation," Hsu said. Current economic conditions slipped to 63.8 in March from 65.7 in February and 82.5 last March. Two thirds of consumers expect unemployment to rise in the year ahead, the highest reading since 2009. Year-ahead inflation expectations jumped to 5pc this month, the highest reading since November 2022, from 4.3pc last month. The University of Michigan survey comes three days after The Conference Board's preliminary Consumer Expectations Index fell in March to its lowest in 12 years, to below a threshold that "usually signals" a recession. By Bob Willis Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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UK steel importers oppose other countries' caps

28/03/25

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28/03/25

UK steel importers oppose other countries' caps

London, 28 March (Argus) — Steel importers in the UK suggest the imposition of a cap on any other countries' quotas could effectively stop trade, given the small volume of the quotas. In a recent submission to the Trade Remedies Authority, UK Steel said 15pc caps should be introduced on other countries quotas for hot-dip galvanised, plate and rebar. But in its submission to the TRA, trading firm Salzgitter Mannesmann argues that any cap based on a percentage of the quota "will ultimately most likely remove rather than reduce imports as shipments from many third countries, notably the far east, require a certain base volume to ship economically to the UK". Other trading firms and service centres told Argus they share the same view. Salzgitter Mannesmann also suggested a new country quotas for individual importers be added to the safeguard based on their imports over the past two or three years. The only local producer of hot-dip galvanised coil, Tata Steel, would be likely to argue against this as volumes from some countries, notably Vietnam, have increased dramatically in recent years. Salzgitter Mannesmann also suggests Tata Steel cannot produce hot-rolled coil over 1.85m wide, for which the UK has to totally rely on imports. Traders have for some time argued that there should be no import constraints on material, such as 2m wide, as there can be no injury to the producer on grades it cannot produce. Service centre Sebden Steel said the current measures make it "impossible" for the UK to be flooded with cheap foreign imports, and that people are "misinformed by mainstream media and UK Steel". "The UK producer is in a safe place already and any additional measures will only serve to cause injury to independent steel service centres, independent steel stockholders and the UK manufacturing base, which will all be faced with a further tightening of the supply chain and increased costs," it said. Importers, unsurprisingly, question why Tata Steel, now a re-roller until its electric arc furnaces are installed, can import on much more favourable terms than others. Tata has a much bigger quota than the rest of the market, at around 2.3mn t, but the main problem for importers is that the company has fewer constraints on where it can source, with only a 40pc cap on any given country within that quota. Independent service centres, which all compete with Tata Distribution, can only import much smaller quantities from different locations, given the fragmented composition of quotas; the other countries quota for 1A, for example, is less than 100,000 t/yr. EU mills have far and away the largest quota to sell 1A HRC into the UK, but given their higher costs compared with Asian producers, they struggle to compete; Tata's imports come from all over the world, as well as some from its sister mill in IJmuiden, the Netherlands. 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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Australia's Aurelia Metals to boost Cu, Zn processing

28/03/25

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28/03/25

Australia's Aurelia Metals to boost Cu, Zn processing

Perth, 28 March (Argus) — Australian metal producer Aurelia Metals is set to triple mixed metal ore processing capacity of ore from its Federation mine, after authorities in New South Wales state approved a project consent change. Aurelia produces mixed metal ore at its 600,000 t/yr Federation mine. It then hauls ore to its nearby Peak processing centre to produce a range of base and precious metals, including zinc, copper, lead, and gold. The company has been allowed to move only 200,000 t/yr of ore between its two NSW sites since Federation opened in mid-2024, because of consent restrictions. But the latest change allows it to move 600,000 t/yr of ore to Peak, the company announced on 28 March. Aurelia's updated consent comes as it continues to ramp up production at Federation. The company only processed 16,500t of Federation ore in October-December 2024, recovering 55t of copper, 626t of lead, 1,263t of zinc, and 502oz of gold. Aurelia is increasing its base metal production capacity, despite other Australian producers doing the opposite. Australian metal firm IGO paused its Forrestania nickel project in July-September 2024, and will close its Nova copper and nickel mine in 2027. But this phenomenon is not unique to Australia. Global metal producer Glencore cut its total copper output by 6pc in 2024, following planned production declines in Chile and Peru, and unplanned disruptions in the Democratic Republic of Congo. Copper prices have been quite volatile over the last year. The London Metal Exchange's (LME) copper cash price stood at $8,696/t on 27 March 2024, before bouncing between a high of $10,857/t and a low of $8,620/t over the next 12 months. LME's copper price stood at $9,787/t on 27 March. By Avinash Govind Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Recent deep-sea and short-sea cfr Turkey scrap deals

27/03/25

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27/03/25

Recent deep-sea and short-sea cfr Turkey scrap deals

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EU February EV sales rise on CO2 targets

27/03/25

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27/03/25

EU February EV sales rise on CO2 targets

London, 27 March (Argus) — Sales of battery electric vehicles (BEVs) and plug-in hybrid EVs (PHEVs) rose by 17pc as EU legislation forced carmakers to increase the electric portion of their fleets, according to industry association ACEA. Germany retained its spot as the largest market for BEVs and PHEVs with 31pc growth on the year earlier (see graph) , followed by 35pc growth in the UK. EV sales of Chinese brands BYD and Xpeng — as well as Chinese-owned brands Volvo, Polestar and MG— also rose last month, while sales of Tesla fell 44pc, according to consultancy Jato Dynamics (see graph) . Only France and Belgium registered falls in year-on-year EV sales at 15pc and 9pc respectively. Both registered upticks in sales of hybrid EVs, with sales in France rising in particular, up 51pc to 62,000 units. The continent's next largest HEV markets were Italy at 61,000 and Germany at 58,000 units. Overall car sales in the continent edged down 3pc on the year last month as petrol and diesel car sales slipped 24pc and 28pc respectively. Carmakers' push EU to delay CO2 targets The latest sales data comes as carmakers place increasing pressure on the EU Commission to relax legislation enforcing that carmakers electrify an increasing portion of their fleet. The commission requires carmaker sales to average around 93.6g of CO2 emissions per km, depending on the size of its fleet. For every 1g/km each firm falls over the required target this year, it must pay a €95 fine: missing the target by 10g/km while selling 100,000 units in 2025 would incur a €95mn fine. "While year-on-year BEV sales growth over the last two months has been positive, it masks the fact that car registrations have declined by 3pc and that were currently at 17pc market share for BEVs in Europe, when we would ideally be around 25pc", an ACEA spokesperson told Argus . BEV market share hit 16.9pc in Europe across January-February this year, up from 12.9pc on the year (see graph) . Charging infrastructure, high energy prices and weak tax and purchasing incentives have all contributed to a slower EV buildout than otherwise possible, the spokesperson said. "You need to look at what may be influencing this consumer behaviour", the spokesperson added, on the question of EU carmakers prioritising sales of more profitable internal combustion engine SUVs. "Are they perceived as safer vehicles, more carrying capacity, living in the countryside, etc? Currently, there is no information on why consumers are buying more SUVs." But when questioned on carmakers' lobbying against the Commission to delay CO2 targets, the spokesperson was reluctant to comment. "The key point of all of this is that it should all lead to higher investments." One consequence of the targets could be that carmakers simply sell fewer petrol-powered units to meet electric quotas. Other market participants have been more vocal . "We are seeing the early impacts from manufacturer plans to meet the EU's scheduled CO2 limits, embedding this into production lines", said Chris Heron, secretary general of advocacy group E-Mobility. "It is critical that European governments now help boost this early sales momentum across 2025, even with this month's concession to weaken those targets." "European manufacturers have risen to the challenge of the UK's ZEV mandate, with the likes of BMW and Mercedes exceeding their EV sales targets", said Colin Walker of the Energy & Climate Intelligence Unit, a think-tank, "There is every reason to believe they can replicate this success across the continent." The EU Commission on 24 March added its latest tweak to its CO2 standards for cars and vans , which allow carmakers to meet CO2 targets across a three-year period, rather than over single year, starting this year. And on 25 March, the bloc selected 47 strategic raw materials projects — including 22 lithium, 12 nickel and 10 cobalt projects — for which it estimates €22.5bn ($24.3bn) of capital investment will be required. By Chris Welch Europe new car sales by power source (pc).pdf Europe February plug-in EV sales by country.pdf Europe BEV sales in February by brand.pdf Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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