South Korea boosts EV subsidies to spur demand
South Korea's government is increasing consumer subsidies for electric vehicles (EVs) as part of an investment programme aimed at speeding the rollout of zero-emissions cars, pointing to continued demand for cobalt, nickel and other metals used to make their batteries.
Consumers will be able to receive national government subsidies as high as 18.2mn won ($15,613) each to help pay for EV purchases in 2020, according to South Korea's environment ministry. Some local governments offer further incentives. Federal subsidies averaged about W10.9mn per EV in 2018 and have historically topped out at W14mn.
The new system will reward the most efficient cars by basing subsidy levels on driving range, rather than battery size. Incentives also will be sweetened for other types of EVs, including buses. Hydrogen fuel cell electric vehicles (FCEVs) will be eligible for subsidies as high as W42.5mn each.
Purchase incentives are part of a W1.15 trillion package of state spending that is designed to spur growth of the EV and FCEV industries. The budget, which rose by 69pc from last year's W680bn, also includes funding to help build charging stations. Subsidies will be offered this year for as many as 84,150 EVs, up by 54pc from 2019's cap, and for 10,280 FCEVs that is an 87pc increase.
But China is reconsidering plans to phase out its purchase incentives at the end of 2020. With Chinese incentives reduced in 2019, unit sales fell in the country for the first time, stalling the industry's growth and calling into question plans to wean the world's largest EV market off subsidies.
By Tony Cox
Related news posts
ASD completes purchase of Atlantic Steel Processing
ASD completes purchase of Atlantic Steel Processing
London, 1 July (Argus) — UK general steel distributor ASD has acquired the assets of Birkenhead-based decoiler Atlantic Steel Processing out of administration. The group, now owned by Spain's Hierros Anon, said the acquisition will enhance its presence in the UK's northwest and give it cost-effective access to the Irish markets — previously Ireland was an important region for Atlantic. Atlantic also introduces new products to ASD, in the form of decoiled hot-rolled sheet and reversing mill plate. Atlantic has the widest decoiling line in Europe, Yoder, capable of processing 2.5m-wide material. Hierros Anon has been on something of an acquisition spree of late, recently acquiring four country operations from Kloeckner, including ASD in the UK. Atlantic fell into administration on 3 May , as first reported by Argus . The business was affected by a difficult UK hot-rolled coil (HRC) and sheet market, and had a lack of cash after a management buyout in 2022. Continued difficult market conditions are likely to see more consolidation in the service centre and decoiling markets in the coming weeks, sources said. By Colin Richardson Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Lake Resources to delay Argentinian Kachi Li project
Lake Resources to delay Argentinian Kachi Li project
Singapore, 1 July (Argus) — Australian lithium developer Lake Resources expects further delays to its Argentinian Kachi lithium brine project, and will no longer continue with agreements to sell its Kachi supply. The firm's Kachi project previously faced a six-year delay that pushed its first phase production of 25,000 t/yr to 2027. The firm on 1 July said it now believes that this will "take longer than initially expected", citing macro environment conditions. The firm is also now "managing an ongoing process" for the potential sale of its lithium assets in other parts of Argentina, namely its Paso de Jama, Olaroz, Cauchari and Ancasti assets, as it focuses on the Kachi project. Major Chinese lithium-ion battery cathode active material precursor manufacturer CNGR has been looking to invest and potentially acquire significant stakes in some Argentinian lithium projects , including Paso de Jama, a source from CNGR told Argus early last month. Lake Resources will also cut more than 50pc of its global headcount to "right-size" its workforce and expenditure, on top of an earlier announcement in March about cutting 50pc of its "non-core operational and administrative" workforce. The firm will also no longer progress the non-binding offtake agreements signed in 2022 to sell its Kachi output to South Korean battery producer SK On and Netherlands-based commodity trading firm WMC Energy . The firm will rather focus on "competitive strategic partnering process" for equity investment and offtake agreements. Argus- assessed prices for 99.5pc grade lithium carbonate stood at 90,000-95,000 yuan/t ($12,382-13,070/t) ex-works China on 28 June, with recent bearish sentiment in the lithium market. Woes are also mounting for the downstream battery and electric vehicle industry. By Joseph Ho Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
UK HRC market ponders early closure of Tata BFs
UK HRC market ponders early closure of Tata BFs
London, 28 June (Argus) — The UK hot-rolled coil (HRC) market was pondering the potential premature closure of Tata Steel's blast furnaces today. Tata Steel UK could close both its furnaces and the wider heavy end at its Port Talbot site by 5 July because of the impending and "indefinite" strike by members of the trade union Unite, due to start on 8 July, company chief executive Rajesh Nair said in a note to employees on Thursday. Tata had initially planned to maintain blast furnace 4 until September, with blast furnace 5 going down this month. The strike, involving 1,500 workers, would mean Tata could not "maintain safe and stable operations", Nair said. Tata is trying to bring Unite back to the negotiating table, alongside other unions Community and GMB. The company said it will pursue legal action to challenge the validity of Unite's strike ballot — it has questioned whether the union met the 50pc participation threshold requirements at certain sites. Sources were caught somewhat off-guard by the news, which is complicated by the failure of the UK government to approve the Trade Remedies Authority's recommendation to suspend import quotas for HRC . With HRC import quotas still in place, supply from ‘other countries' sellers will be increasingly constrained — the duty-free quota is around 23,000/t quarter, but almost 50,000t could clear into this in 1 July, partially because of Tata's increased importation of Indian HRC. Should Tata's furnaces go off line early next month, it would need to increase imports of overseas tonnage, including from its parent company in India. Sources suggest HRC supply from its parent company could be booked for end-August arrival at the earliest. If quotas have not been suspended, there could again be duties payable for other countries' sellers. In a typical market, the disruption would clearly propel prices higher. But demand remains low, with mill tied and independent service centres competing to sell sheet as low as £620/ddp, a price which leaves no margin, based on average stock cost. Europe's imposition of a 15pc cap on countries selling into its own other countries quota is another complicating factor. That move effectively caps any country selling into that quota to 141,849t/quarter and could lead to material being diverted to the UK. The UK has not amended developing nation status as part of its latest safeguard review, meaning Vietnam — a major seller into the EU other countries' quota — can sell into the UK without quota. Vietnam is bearing the brunt of increased Chinese HRC exports, taking 3.9mn t over the first five months of this year, compared to 6.1mn t over the whole of 2023, which was a record high. By Colin Richardson Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Lynas to produce heavy rare earths in Malaysia by 2025
Lynas to produce heavy rare earths in Malaysia by 2025
Beijing, 28 June (Argus) — Australia-listed mining company Lynas Rare Earths plans to start producing two separated heavy rare earth (HRE) products at its Malaysian facility by 2025. Lynas will start production of separated dysprosium and terbium at one of Lynas Malaysia's solvent extraction circuits in 2025. The facility is designed to separate up to 1,500 t/yr of a mixed heavy rare earth compound containing mixed samarium, europium, gadolinium, holmium, dysprosium and terbium (SEGH). The HRE project has completed initial engineering and detailed engineering design is underway, with commissioning and ramp-up expected in mid-2025. Lynas' HRE product range will increase to five products — dysprosium, terbium, unseparated samarium/europium/gadolinium, holmium concentrate and unseparated SEGH — after the separation of dysprosium and terbium from the SEGH compound. Dysprosium and terbium are needed to produce high-performance rare earth magnets, which are used in consumer electronics, electric vehicle engines and other automotive applications. Lynas is also progressing pre-construction activities for its planned rare earth processing facility in the US. Its facilities in Malaysia and the US have been designed to accept third-party feedstocks once they start operations. The heavy rare earths production provides a pathway to accelerate Lynas' commitment to processing all of the elements at the firm's Australian Mount Weld ore site, said Lynas' chief executive officer and managing director, Amanda Lacaze. Supply chains More national governments have been taking action to build or diversify more resilient and sustainable rare earth supply chains, to keep up with a fast-evolving clean energy transition and reduce their heavy reliance on China-origin supplies. China is the largest supplier of medium and heavy rare earths in the world, and it has been implementing stricter export control policies for rare earth extraction and separation technology. There is limited progress on the development of rare earth projects outside China, especially in the HRE market, mostly because of exploration technique restrictions, ore resource shortages, production costs and capital pressure and environmental consideration and so on. US-based rare earth producer MP Materials aims to develop a facility to produce HREs in the next few years. It has started neodymium-praseodymium oxide production since the third quarter of last year and targets commercial production of finished magnets by late 2025. Australian mineral producer Iluka Resources plans to achieve an output capacity of up to 23,000 t/yr of rare earth oxide, including 5,500 t/yr of neodymium-praseodymium oxide and 725 t/yr of dysprosium and terbium oxide from its refinery in Australia. Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Business intelligence reports
Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.
Learn more