China targets 20pc NEV share by 2025: Correction

Spanish Market: Metals, Oil products
06/11/20

Corrects target date in headline, first paragraph

China's state council has announced a development plan for the new energy vehicle (NEV) industry during 2021-35, targeting a 20pc share of NEVs in the country's total vehicles sales by 2025.

China aims to lower the average power consumption of a new battery electric passenger car to 12kWh/km by 2025, according to the plan, which also makes clear the country's ambitions to fully electrify public vehicles, commercialise fuel cell vehicles and realise the scale application of highly autonomous vehicles.

Battery electric vehicles (EVs) by 2035 will become the mainstay of new vehicle sales in the country, the plan said.

The government also wants to strengthen innovations to improve the industry's infrastructure of key components such as power batteries and new generation automotive motors, while promoting integration and a co-ordinated development of electric, network and intelligent technologies.

The plan is also designed to accelerate the development and application of automotive operating systems, build an efficient power battery recycling system and speed up the development of infrastructure such as power and hydrogen charging and battery replacing facilities.

The plan calls for the merger and reorganisation of competitive enterprises to strengthen industry integration. The government will implement preferential tax policies for NEVs, optimise traffic management and financial services, provide financial support for building charging points as public facilities, while providing preferential policies for parking and charging of NEVs.

The government is aiming for at least 80pc of NEVs by next year to be used in areas such as public transport, taxi services and logistics in the country's "ecological civilisation" pilot zones and key areas for air pollution prevention and control.

The plan comes after Beijing announced new development plans for strategic industries, including EVs, new energy resources and technology infrastructure, in response to the impact of the Covid-19 economic downturn and trade tensions with the US.

Chinese NEV output totalled 738,000 during January-September, down by 18.7pc from a year earlier. Sales fell by 17.7pc to 734,000, with higher output in recent months outweighed by the overall impact from the Covid-19 pandemic.

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14/01/25

Colonial shuts Line 1 due to Georgia spill: Update

Houston, 14 January (Argus) — Colonial Pipeline's main gasoline bearing line may be closed for more than a day as the company responds to a gasoline spill in Georgia detected on Tuesday. "Colonial has taken Line 1 out of service temporarily while we respond to a potential product release," the company said in a notice. "Normal operations continue on the remainder of the system." The spill occurred in Paulding County, Georgia, about 25 miles southwest of Marietta, Georgia. The company said it had crews on site responding to the incident. The company did not provide information on when the line would restart. Market sources said leak was small but it could take up to two days to resume operations. Line 1 has capacity to carry up to 1.3mn b/d of gasoline from Houston, Texas, to Greensboro, North Carolina. Cash prices for US Gulf coast 87 conventional gasoline in the Gulf coast ended Tuesday's session down by 3.19¢/USG at $2.115/USG, reversing gains from the previous session's 14-week high that was driven by higher blending demand. Liquidity fell during Tuesday's trading session with uncertainty over the length of the pipeline shut-down. The pipeline leak did not affect line space trading on Tuesday, which had already been falling. Values saw their sixth session of losses, shedding 0.25¢/USG day-over-day. A trade was reported at -1.5¢/USG, prior to the notice of the pipeline shut down, with no further trades reported for the remainder of the session. By Hannah Borai Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Biomethan: Missbrauchsverfahren gegen THE gestartet

14/01/25

Biomethan: Missbrauchsverfahren gegen THE gestartet

Hamburg, 14 January (Argus) — Die Bundesnetzagentur hat auf Anfrage von acht Unternehmen der Biogasbranche ein besonderes Missbrauchsverfahren gegen Trading Hub Europe eingeleitet. Die deutsche Gasbörse hat die Bilanzkreise der Landwärme Service am 11. Oktober 2024 gekündigt. Dadurch sind Vertragspartnern wirtschaftliche Probleme entstanden. Ein Unternehmen, dem ein Bilanzkreis vom Marktgebietsverantwortlichen gekündigt wird, darf Biomethan weder liefern noch entgegennehmen. Vertragspartner der Landwärme Service (LWS) konnten deshalb von einem Tag auf den anderen nicht mehr auf die Mengen zugreifen, die von LWS oder ihnen selber zuvor schon in den Bilanzkreis eingespeist wurden. Somit haben sie für 2024 auch keinen Anspruch auf Nachweise über die Nachhaltigkeit ihres bereits erhaltenen oder eingespeisten Biomethans. Diese sind allerdings notwendig für Anlagenbetreiber, da diese in der Regel EEG-gefördert sind. Sollten sie bis Ende Februar keine entsprechenden Nachweise erhalten, könnten Unternehmen daher ihre EEG-Förderung verlieren. Kunden, Lieferanten und Produzenten, die einen Vertrag mit LWS hatten, mussten sich dementsprechend umorientieren und versuchten neue Lieferverträge zu etablieren. Dies steigerte auch die Nachfrage und verteuerte Biomethan in Deutschland im Oktober. Grund für die Anträge für ein Missbrauchsverfahren ist nun, dass die Vertragspartner von LWS noch immer keinen Zugriff auf ihre Mengen haben und auch keine Informationen erhalten haben, was mit diesen geschehen ist. Ein Antragsteller erklärte, dass er sich von dem Verfahren eine Wiederherstellung der Mengen oder eine finanzielle Kompensation erhofft. Trading Hub Europe soll den betroffenen Geschäftspartnern im November ein Angebot gemacht haben, zumindest einen Teil der Mengen gegen Zahlung eines Ausgleichsenergiepreises wieder in Biogasbilanzkreise einzustellen, so Unternehmen. Dieser Preis war für viele jedoch zu hoch angesetzt und hätte nur etwa 30 % der Mengen wiederhergestellt. Gleichzeitig wäre das Problem der Nachhaltigkeitszertifikate durch dieses Angebot weiterhin nicht gelöst. Viele der betroffenen Unternehmen wollten dieses Angebot nicht annehmen, da es weder attraktiv noch wirtschaftlich war. Die Anträge der Unternehmen gingen zwischen dem 17. Dezember und 20. Dezember 2024 bei der Bundesnetzagentur ein. Bei den Antragsstellern handelt es sich um die Biomethanproduzenten und -händler Verbio und EnviTec Energy, die Versorger STAWG – Stadt- und Städteregionswerke Aachen, Energie Schwaben und Stadtwerke Passau sowie die Biomethandienstleister und -händler GETEC Energy Management und GETEC Green Energy. Der genaue Grund für die Kündigung der Bilanzkreise ist nicht bekannt. Laut Trading Hub Europe (THE) ist eine außerordentliche Kündigung aus wichtigen Gründen möglich. Dies ist zum Beispiel der Fall, wenn gegen Bestimmungen trotz Abmahnung schwerwiegend verstoßen wurde, der Bilanzkreisverpflichtete seiner Verpflichtung einer Sicherheitsleistung oder Vorauszahlung nicht fristgerecht oder vollständig nachgekommen ist oder wenn dieser fahrlässig falsche oder unvollständige Angaben bei der Zulassung gemacht hat oder nicht über Änderungen der Angaben informiert hat. Ein weiterer Grund für eine Kündigung kann eine erhebliche Unterspeisung des Bilanzkreises sein, hier sei die Kündigung auch ohne wiederholten Verstoß und ohne Abmahnung möglich. Von Svea Winter Senden Sie Kommentare und fordern Sie weitere Informationen an feedback@argusmedia.com Copyright © 2025. Argus Media group . Alle Rechte vorbehalten.

Cliffs still seeks US Steel, pledges no closures

13/01/25

Cliffs still seeks US Steel, pledges no closures

Houston, 13 January (Argus) — Cleveland-Cliffs chief executive Lourenco Goncalves said today that he remains open to buying US Steel, promising to keep all of the acquired assets open. Goncalves said Ohio-based Cliffs still wants to buy Pennsylvania-based US Steel and would invest in the company's assets. "Of course, we are going to keep [US Steel mills] open," Goncalves told reporters on Monday. "We are going to make them bigger, we are going to make them better, we are going to produce more." His comments come 10 days after President Joe Biden blocked Japan-based Nippon Steel's agreement to buy US Steel for $15bn, citing national security concerns. Nippon had committed to invest $1.3bn in US Steel's mills and to not cut any of US Steel's production for 10 years without government approval. Cliffs tried to buy US Steel for $54/share with half paid in cash and half in company stock before US Steel agreed to go with Nippon's $55/share all-cash offer. Goncalves promise to not close any acquired assets comes as the US steel market remains oversupplied , according to market sources. Goncalves said he cannot make a bid for US Steel until the company and Nippon cancel their merger agreement. He also dismissed antitrust concerns over Cliffs owning all US iron ore mines and all US blast furnace capacity. A combined company would have Cliffs running the mining side of the business and US Steel running the steelmaking operations, he said. A US Steel-Cliffs merger would have 32.1mn short tons (st)/yr of flat rolled raw steel capacity, in addition to plate making and seamless tube production. Goncalves did not say how he would finance such a purchase. Cliffs had $3.8bn in liquidity as of 30 September, including $39mn of cash, according to a third-quarter presentation. US Steel had $4.05bn in liquidity in the same period, of which $1.77bn was cash. Nippon is trying to buy US Steel. Both companies have sued Biden and others in the government over the denial, and filed a separate lawsuit against Cliffs, Goncalves and United Steelworkers (USW) International president David McCall, who endorsed a takeover by Cliffs. By Rye Druzchetta Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Mexico’s industrial output up 0.1pc in November

13/01/25

Mexico’s industrial output up 0.1pc in November

Mexico City, 13 January (Argus) — Mexico's industrial production edged up 0.1pc in November, as gains in autos and other manufacturing offset weaker construction, national statistics agency Inegi said. Mexican bank Banorte described the monthly increase as "rather small," noting it followed a 1.1pc decline in October and was largely driven by base comparison effects. The bank added that the overall industrial outlook remained "fragile." Manufacturing, which represents 63pc of Inegi's seasonally adjusted industrial activity indicator (IMAI), increased by 0.7pc in November, though it failed to fully recover from a 1.7pc drop in October. Transportation manufacturing, a key subsector accounting for 12pc of the sector, rose by 3.8pc after a steep 4.3pc decline the prior month. Despite recent volatility, Mexico's auto sector achieved record annual light vehicle production in 2024, reaching 3.99mn units. Yet, automaker association AMIA warned of potential challenges in 2025 because of economic uncertainty, which could affect investment and demand. Mining, which makes up 12pc of the IMAI, increased by 0.1pc in November following a 1.1pc decline in October. Growth was driven by a 41.4pc jump in mining-related services, while oil and gas output fell by 2.4pc, marking a fifth consecutive monthly decline for hydrocarbons. Construction, representing 19pc of the IMAI, contracted by 1.8pc in November after modest gains of 0.2pc in October and 1.1pc in September. As industry eyes potential policy shifts under US president-elect Donald Trump, Banorte projected a weak start to 2025 for Mexico's industrial output. But it expects momentum to build as government spending on priority infrastructure projects "moves more decisively." By James Young Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Lithium prices unlikely to recover in 2025

13/01/25

Lithium prices unlikely to recover in 2025

London, 13 January (Argus) — Prices for lithium carbonate equivalent (LCE) are unlikely to recover this year, according to market participants, owing to high inventories and Chinese overcapacity. While the vast majority of firms have either suspended or trimmed production at costs above Argus -assessed prices (see graph) , a number of other factors have weighed on price rises, including redundant Chinese lithium refining capacity, inventories of low and mid-grade concentrate and end-of-life LFP batteries. Chinese lepidolite, African low-grade ores and Brazilian tailings are "not immune" to low prices, according to supply chain consultantcy SC Insights. Prices are currently far below highs of $80,000/t in late 2022, although not at record lows by historical standards. "We have put our lithium plant in Zimbabwe on ice for now, margins are just too tight," a southern Africa-based producer said. The market could start to recover in the second half of 2026 as carmakers turn increasingly towards lower-cost lithium iron phosphate (LFP) batteries, SC Insights said. Between 2025 and 2026, major carmakers will start "socialising the intensions of using more LFP and LFMP [lithium iron manganese phosphate]", with it especially vital that LFMP producers "react early and offer a cost-competitive solution in CAM/LIB [cathode active material/lithium-ion battery] spaces". SC Insights forecasts that global annual LCE production will tip over 2.5mn t of LCE by 2030 (see graph) , from just over 1mn t last year, based on the adoption of these newer battery chemistries. Buildout of this supply will depend, SC Insights said, on the proposed restriction of CAM/LIB technology by China. The buildout of Argentinian lithium production could be a key factor in 2025, according to SC Insights, after global mining giant Rio Tinto announced last October that it would buy Arcadium Lithium. Argentinian president Javier Milei and Rio Tinto held a meeting in December 2024 and although it is unclear what the results of that meeting were, the relationship between Rio Tinto and the Argentinian government could be important for the lithium market this year. Argentina holds the third-largest reserves of lithium at 3.6mn t behind Chile and Australia, and the second-largest pool of resources at 23mn t, behind Bolivia, according to the US Geological Survey in January. By Chris Welch Cost of production, lithium carbonate equivalent (LCE) Lithium carbonate equivalent (LCE) production t Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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