GM to slow growth of EV production

Spanish Market: Battery materials, Metals
24/10/23

General Motors (GM) said it would temper the pace of it's electric vehicle (EV) production growth in the near term, cutting output targets and delaying the roll-out of a few electric models.

The shift in strategy comes amid what GM anticipates will be an industry-wide slowdown in demand for EVs and the ongoing United Auto Workers (UAW) union strike, which expanded to the US automaker's SUV plant in Arlington, Texas, on Tuesday.

GM withdrew plans to make 400,000 EVs in North America from 2022 to 2024 and 100,000 EVs in the second half of this year as part of the reworked approach, chief financial officer Paul Jacobson said in a third-quarter earnings call. GM will not be giving updated targets but is "moving to a more agile approach" as it seeks to maximize its Ultium battery profitability over volumes.

"We're going to respond to demand," chief executive Mary Barra said. "We're going to make sure we have the right products at the right time, but we're not over-building."

As part of the slowdown, GM is delaying the launch of its electrified models of the Chevrolet Equinox, the Chevrolet Silverado RST and the GMC Sierra Denali at its Orion assembly plant in Michigan by a few months to "ensure their success."

The pause will allow GM to implement some improvements to the manufacturing process it picked up on during the early stages of production, Jacobson said.

The company still expects EV capacity of 1mn units/yr in North America by the end of 2025 and for its joint-venture battery plant in Ohio to reach full capacity by next month.

By Alex Nicoll

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21/11/24

Cop: EU, four countries commit to 1.5°C climate plans

Baku, 21 November (Argus) — The EU, Canada, Mexico, Norway and Switzerland have committed to submit new national climate plans setting out "steep emission cuts", that are consistent with the global 1.5°C temperature increase limit sought by the Paris Agreement. The EU and four countries made the pledge at the UN Cop 29 climate summit in Baku, Azerbaijan today, and called on other nations to follow suit — particularly major economies. Countries are due to submit new climate plans — known as nationally determined contributions (NDCs) — covering 2035 goals to the UN climate body the UNFCCC by early next year. The EU, Canada, Mexico, Norway and Switzerland have not yet submitted their plans, but they will be aligned with a 1.5°C pathway, EU climate commissioner Wopke Hoekstra said today. The Paris climate agreement seeks to limit the global rise in temperature to "well below" 2°C and preferably to 1.5°C. Canada's NDC is being considered by the country's cabinet and will be submitted by the 10 February deadline, Canadian ambassador for climate change Catherine Stewart said today. Switzerland's new NDC will also be submitted by the deadline, the country's representative confirmed. Pamana's special representative for climate change Juan Carlos Monterrey Gomez also joined the press conference today. Panama, which is designated as carbon negative, submitted an updated NDC in June. It is planning to submit a nature pledge, Monterrey Gomez said. "It is time to streamline processes to get to real action", he added. The UK also backed the pledge. The UK announced an ambitious emissions reduction target last week. The UAE — which hosted Cop 28 last year — released a new NDC just ahead of Cop 29, while Brazil, host of next year's Cop 30, released its new NDC on 13 November during the summit. Thailand yesterday at Cop 29 communicated a new emissions reduction target . Indonesia last week said that it intends to submit its updated NDC ahead of the February deadline, with a plan placing a ceiling on emissions and covering all greenhouse gases as well as including the oil and gas sector. Colombia also indicated that its new climate plan will seek to address fossil fuels, but it will submit its NDC by June next year . By Georgia Gratton Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

ArcelorMittal could close two service centres in France

20/11/24

ArcelorMittal could close two service centres in France

London, 20 November (Argus) — Europe's largest steelmaker ArcelorMittal is contemplating closing two service centres in France as part of a restructuring at its Centres de Services business in the country. The company informed staff on Tuesday that it might close its Reims and Denain sites because of a "sharp drop in activity among its industry and automotive customers", the company told Argus . Negotiations with trade unions will begin shortly, it said. Rumours about the potential closures have been circling since just before a large industry event in Hannover, Germany, in late October. Further consolidation and restructuring is expected throughout the European service centre market because of the fall in real consumption, and the difficult financial position it has caused for some processors. Most service centres have been selling processed sheet at a loss in recent months, because of weak end-consumption. German cold-roller Bilstein, that sells predominantly to the automotive industry, will reduce headcount and is contemplating closing one of its five lines, or reducing shifts across its business. There have also been market discussions about ArcelorMittal selling other automotive-facing service centres in Europe, as part of a wider reorganisation of the EU processing sector. Germany's largest steelmaker, ThyssenKrupp, has closed some of its distribution sites in its home country. Participants note the service centres are not part of ThyssenKrupp Steel Europe, which is still in talks with Daniel Kretinsky over taking a 50pc share in the business. ThyssenKrupp's ownership change could have wider ramifications for the service centre and steelmaking sector in general, with Kretinsky open to finding a strategic partner. By Colin Richardson Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Graphjet launches Malaysian biomass-to-graphite plant

20/11/24

Graphjet launches Malaysian biomass-to-graphite plant

Singapore, 20 November (Argus) — Nasdaq-listed Graphjet Technology has started operations at its artificial graphite plant in Malaysia, which will produce battery-grade graphite using recycled palm kernel shells (PKS), the firm said on 19 November. Graphjet's facility has the capacity to produce 3,000 t/yr of graphite by recycling up to 9,000 t/yr of PKS, which is sufficient to produce batteries for 40,000 electric vehicles (EVs)/yr. The firm has already received its first shipment of PKS, it said. Graphjet has another artificial graphite production facility planned in US' Nevada, and it plans to produce hard carbon at the Malaysian facility to use as feedstock at the Nevada facility. The Nevada facility is expected to have the capacity to recycle 30,000 t/yr of PKS to produce 10,000 t/yr of battery-grade artificial graphite and is slated to begin production in 2026, said Graphjet in April. China, the dominant producer of graphite, added a number of graphite products into its export licensing scheme at the end of last year. The move back then alarmed its neighbours, Japan and South Korea , which are major battery-producing countries and they have since been looking to reduce their dependency on Chinese graphite. China's graphite flake exports fell by 23pc to 44,103t during January-September following the exports curb, according to Chinese customs data. By Joseph Ho Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Japan, Peru sign deal to enhance copper supply chain

19/11/24

Japan, Peru sign deal to enhance copper supply chain

Tokyo, 19 November (Argus) — The Japanese and Peruvian governments have signed a strategic partnership to bolster the copper supply chain, with a comprehensive road map to promote bilateral business opportunities for natural resources. This agreement came as Japan accelerates efforts to secure copper supplies, while Peru is a key global copper supplier. The two countries rolled out a comprehensive road map for enhancing political and economic relationships on 17 November. This includes organising an annual bilateral meeting for mining and energy investment as well as conducting joint research on efficient mining operations, such as removal of impurities from copper ores, according to the road map. Unlike conventional initial agreements that are typically signed without a specific closing date, the Japanese-Peruvian road map has set a 10-year timeline that will end by 2033. This seems to reflect Japan's sense of urgency in securing base metal supply including copper. "Japan would like to continue to co-operate with Peru to strengthen the resilience of the supply chain of mineral resources such as copper", said Japanese prime minister Shigeru Ishiba in Peru on 17 November. Japan's current strategic energy plan that was revised in 2021 aims to lift base metal self-sufficiency to 80pc by 2030, up by around 30 percentage points from the 2018 level. But the strategy appears to not be on track, the country's ministry of trade and industry Meti reiterated in late October without disclosing the current rate. Japan appears to be especially concerned about copper supply. Meti forecasts global copper demand to double to around 50mn t in 2035 following the global electrification of applications including electric vehicles, while there will likely be a 10mn t/yr supply shortage. The country's domestic copper ingot demand is forecast to exceed 1.4mn t by 2030, according to Meti, up by 400,000 t from the 2022 level. This is partially attributed to the adoption of more artificial intelligence, it added. Japan is making efforts to diversify copper supply sources, given the deterioration in quality of copper supplied by the world's biggest producer Chile, Meti said. Peru and Argentina are prominent suppliers in the region, according to Meti, adding that Japanese government support is essential for acquiring stakes in upstream operations in those countries, given their higher risks. By Yusuke Maekawa Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Cop: Progress on actions to cut emissions uncertain

18/11/24

Cop: Progress on actions to cut emissions uncertain

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