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UK extends grants for EVs in 2020 budget

  • Market: Electricity, Metals
  • 11/03/20

The UK government has unveiled an extension of its grant scheme for plug-in vehicles in its budget announcement today.

The grant of up to 35pc of the vehicle's value — but with a cap at £3,500 ($4,500) — will be extended until the 2022-23 financial year, overhauling previous plans to abolish it. The grant is available to buyers of any vehicle which emits less than 50g/km of CO2 and can travel at least 112km without any emissions at all.

All battery electric vehicles and most plug-in hybrid electric vehicles are eligible. The grant also applies to motorcycles, mopeds and electric taxis.

The budget also included an exemption for zero-emission cars from vehicle excise duty, which charges additional taxes on higher-value cars.

And UK chancellor Rishi Sunak announced a £500mn investment over five years to support the rollout of a fast-charging network for electric vehicles (EVs), on top of a £1bn investment announced in September 2019 to scale-up EV production in the UK.

The UK is behind some world leaders in EV technology. UK firms filed only five of the 3,400 global patents in automotive battery technology last year. There are still no plans for any gigafactories in the UK, despite several announced for other European countries over the last two years.

A report by the Faraday Institution, a UK government funded battery research centre, has called for investment into gigafactory production, warning that 114,000 direct automotive jobs would be lost by 2040 if the UK does not have any.

Scaling up battery and EV production would require access to battery metals such as cobalt, nickel and lithium. There is one lithium project in development in the UK, but other metals would need to be imported. Argus assessed prices for chemical grade cobalt metal at $17-17.50/lb in Rotterdam yesterday. Lithium hydroxide prices were assessed at $10-11.50/kg fob China yesterday.


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18/03/25

Groups to sue Alliant over Iowa coal ash discharge

Groups to sue Alliant over Iowa coal ash discharge

New York, 18 March (Argus) — Three environmental groups intend to sue Alliant Energy subsidiary Interstate Power and Light, alleging that groundwater discharges from the Ottumwa coal plant's coal ash impoundment in Iowa violate the Clean Water Act. The groups — the Iowa Environmental Council, Sierra Club, and Environmental Law & Policy Center — filed a formal notice to sue the utility on 12 March, initiating a 60-day period for the company to respond and comply with the Clean Water Act. The environmental groups claim Ottumwa has continued to release groundwater with arsenic and other toxic pollutants into the Des Moines River through a drain under the plant's lined coal ash pond despite being told by Iowa regulators in 2023 that such releases were not allowed under the plant's stormwater permit. The utility also has not applied for a new permit since the Iowa Department of Natural Resources mentioned the issue, the groups claim. "We want the unpermitted pollution to stop," said Environmental Law & Policy Center senior attorney Josh Mandelbaum. "We will evaluate any response by the utility, but if there continues to be unpermitted pollution, we intend to act." Alliant said that it is abiding by all regulated and required groundwater monitoring processes. The company "proactively" reached out to the Iowa Department of Natural Resources about the permit and has been "actively communicating" with the department while "systematically working" toward a solution for the groundwater discharge. "The system under the landfill is engineered so the groundwater does not come into contact with the contents of the landfill," the coal plant operator said in its statement. Still, environmental groups insist that "a solution has not been implemented and Alliant continues its unpermitted discharge". The Ottumwa coal plant received 1.27mn short tons (1.15mn metric tonnes) of coal from four Wyoming mines in 2024, according to the most recent US Energy Information Administration data. By Elena Vasilyeva Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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S Korea's automotive output, sales, exports rise in Feb


18/03/25
News
18/03/25

S Korea's automotive output, sales, exports rise in Feb

Singapore, 18 March (Argus) — South Korea's automotive output, domestic sales and exports rose in February compared with a year earlier, with the country closely monitoring potential US trade measures. The country's auto output rose by 17pc on the year to almost 352,000 units in February, according to South Korea's trade and industry ministry (Motie). Domestic sales rose by 15pc on the year to around 133,000 units, supported by a 30pc reduction on individual consumption tax on passenger cars until the first half of 2025, which has been capped at 1mn Korean won ($690). Exports rose by 17pc on the year to almost 233,000 units, with auto export revenue hitting an all-time high for the month of February at $6.07bn. Motie is planning to collect the automobile industry's opinions on the possibility of US trade measures, and will continue to closely monitor the potential impact and prepare "prompt" response measures, it said on 18 March. Eco-friendly vehicle domestic sales rose sharply by 50pc on the year to about 60,350 units in February, while exports rose by 32pc to almost 69,000 units. Eco-friendly vehicles in South Korea refers to hybrids, battery electric vehicles (BEVs), plug-in hybrids and hydrogen-fuelled vehicles. Hybrid domestic sales were up by 25pc on the year to about 44,600 units, while BEV domestic sales almost quadrupled to about 14,300 units, which Motie attributed to the EV subsidies it introduced in January. The January support measures included additional 20pc subsidies for young South Koreans' first EV and highway toll fees exemptions for EV owners until 2027. But BEV exports in February dipped by 2pc on the year to about 23,150 units, while hybrid exports continued to rise by almost 62pc to about 39,500 units. By Joseph Ho South Korea's car exports in 2025 units South Korea's domestic car sales in 2025 units Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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EU prepares CBAM export scheme


17/03/25
News
17/03/25

EU prepares CBAM export scheme

Brussels, 17 March (Argus) — The European Commission is preparing a "solution" for exported goods under the bloc's carbon border adjustment mechanism (CBAM), to be presented before the end of the year. The commission will also expand the scope of the CBAM to "certain" steel and aluminium-intensive downstream products. The changes to the CBAM will be announced as part of a European steel and metals plan. In a draft of the plan to be formally presented on 19 March, the commission points to the need to address the problem of carbon leakage for CBAM goods exported from the EU to non-EU countries. The draft also notes that the commission is currently "quantifying" risks, before proposing an extension of the CBAM to "certain" steel and aluminium-intensive downstream products, so as to address the risk of European producers relocating outside the bloc to avoid higher carbon costs. The metals plan also announces an anti-circumvention strategy for the CBAM to be presented in the second half of 2025. The commission points to the risk of goods from low-carbon production facilities in non-EU countries being redirected to European customers, while carbon-intensive production continues for other markets. The metals plan also points to the risk of "greenwashing" carbon accounting practices, with "electro-intensive metals production benefiting from market-based instruments to appear low-carbon". The commission put forward proposals last month to simplify the CBAM, exempting some 90pc of the firms currently covered by the mechanism. By Dafydd ab Iago Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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EU steel action plan to introduce melt and pour clause


17/03/25
News
17/03/25

EU steel action plan to introduce melt and pour clause

London, 17 March (Argus) — The European Commission will introduce a "melted and poured" rule as part of its steel and metals action plan, to underpin the effectiveness of its trade defence measures. The rule will mean the origin of goods is determined by the location at which the metal is originally melted, regardless of where it was further processed. This will prevent minimal transformation to evade dumping and other duties and provide greater clarity over the origin of the product, a draft of the plan suggests. The move will clearly have big ramifications for steel, where material produced in countries with duties, such as China, is further processed — for example, from hot-rolled into hot-dip galvanised — before being sent to the EU without paying duties. The commission said it will "remain vigilant, as overcapacities generated under non-market conditions may also have the effect of driving unrelated market-based producers in other third countries to export quantities to the EU that are displaced from their domestic or other traditional non-European markets". And the rule will have major implications for the EU's imports of cold-rolled and hot-dip galvanised, among other products, with one trading firm saying it would be a "game changer". European steel association Eurofer requested a melt and pour on Chinese steel as part of its request for a functional review of the steel safeguard. The commission also will "proactively" open duty investigations based on a "threat of injury" without waiting for material injury to occur. The carbon border adjustment mechanism will be extended to certain downstream products to prevent a shift to downstream goods that then avoid paying the carbon taxes required on upstream products, such as steel. European service centres and distributors have been requesting this move to protect themselves and their customers, which could face greater import penetration without an extension of the measures. 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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Norway cold on EU VAT power sales harmony


17/03/25
News
17/03/25

Norway cold on EU VAT power sales harmony

London, 17 March (Argus) — Norway will not harmonise its value-added tax (VAT) legislation for cross-border power sales with the EU despite pressure from market operator Epex Spot, with the country's finance ministry claiming that its current rules are "satisfactory", it told Argus . Norway's finance ministry has not "found any reasons" to consider better integrating its VAT procedures on cross-border power sales, the ministry said, adding that EU rules are not "binding" and that, as such, "there is no ongoing work" to align the Nordic country with the broader European market. The decision follows a series of letters sent by Epex Spot that highlighted its significant objections to the existing VAT arrangements. The market operator argues that the system allows for potential double taxation on some sales while others can go completely untaxed. They added that this increases the risk of VAT tax fraud in Norway, with the system "leav[ing] the door open to well-known tax fraud methods", Epex Spot's public and regulatory affairs director, Davide Orifici, told Argus last year . In response to the ministry's statement, Epex Spot told Argus that while the legislation "is not binding for Norway", it hoped that Norway would align with EU rules "on a voluntary basis" to "secure the Norwegian power market against VAT fraud". It added that Norway's "tax authorities themselves" had confirmed to the media that Norway was, in effect, "keeping the doors open to fraud". Epex conducted discussions with Norway's tax authorities late last year, which were characterised as "good", but the finance ministry appears to be unmoved on EU VAT harmonisation. This is the latest flashpoint in a lingering dispute within Norwegian politics over whether it is best to pull back or move closer to the EU power market. Norway's coalition government fell apart earlier this year as the country's centre party left the ruling alliance over lead-partner Labour Party's willingness to align Norway more closely with the EU and adopt the bloc's fourth energy package. This leaves the Labour Party to govern as a minority government until parliamentary elections take place on 8 September. By Daniel Craig Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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