China, EU launch talks ahead of EV provisional duties

Spanish Market: Battery materials, Metals
28/06/24

China and the EU have launched talks on the EU's anti-subsidy investigation on battery electric vehicle (EV) imports from China ahead of the planned start of provisional duties for early next month, according to China's ministry of commerce.

The European Commission on 12 June announced provisional duties on Chinese battery EV manufacturers, setting an additional rate of 17.4pc for BYD, 20pc for Geely and 38.1pc for SAIC, as well as 21pc for other producers that co-operated in the investigation, from the current 10pc duty.

"Minister Wang Wentao held video talks with the European Commission's executive vice-president and trade commissioner Dombrovskis on 22 June," said the ministry's spokesperson He Yadong. "The working teams of the two sides have maintained close communication and stepped up consultations."

When asked for comments regarding industry discussions on whether the two sides are likely to set minimum import prices and volumes to replace the duties, similar to the approach taken in the EU-China photovoltaic dispute in 2013, He Yadong did not answer directly, saying "We hope that the EU will push for positive progress in the consultation as soon as possible and reach a solution acceptable to both sides so as to avoid the adverse impact of escalating trade frictions on China's and EU's economic and trade relations."

The European Commission said on 12 June that if talks with the Chinese government do not lead to an "effective" solution, the provisional countervailing duties will start from 4 July and definitive duties would be published before November, it said.

China's main economic planning agency the NDRC on 17 June said the EU's punitive duties on battery EV imports from China will increase the EU's dependence on fossil energy. But many industry participants remain hopeful that the duties can be negotiated down via the talks before the duties are imposed.

The EU, China's largest trade partner since 2020, has introduced more protectionist moves against China in recent years, especially in the EV and battery raw materials sectors, including anti-subsidy duties on EVs and the Critical Raw Materials Act.

China's exports of battery EVs to Europe fell by 15pc in January-May from a year earlier and by 22pc in May, according to data from the China Passenger Car Association (CPCA). Exports to main European destinations during January-May consisted of 115,318 units to Belgium and 67,956 units to UK.

Chinese EV producers complained that the EU was requiring them to provide far more information than they needed for an anti-subsidy investigation. "Chinese EV and battery companies were required to provide information such as their battery components and chemical formulations, EV production costs, EV parts and raw material procurements, sales channels and pricing methods, customer information in Europe, and their supply chains," He Yadong said.

China has taken up more than 60pc of the world's EV sales, driven by its decarbonisation targets and ambition of making up for its slower development of internal combustion engine vehicles. But it is facing more geopolitical restrictions from the US, EU and some other western countries. The US has raised its duty on China's EVs to 100pc from 25pc. Canada will also launch a consultation on 2 July for a potential punitive duty on China's EVs. Turkey has also imposed a 40pc duty on all Chinese vehicle imports.

China exported 519,000 new energy vehicles during January-May, up by 14pc from a year earlier, according to data from the China Association of Automobile Manufacturers (CAAM). But exports in May fell by 9pc from a year earlier and by 13pc from the previous month to 99,000.

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18/11/24

Cop: Progress on actions to cut emissions uncertain

Baku, 18 November (Argus) — Progress on mitigation — actions to cut greenhouse gas emissions — is uncertain at the UN Cop 29 climate summit, as talks on a specific text related to the issue are at risk to be pushed back to 2025, losing any progress made in the past year. Some countries had proposed using the mitigation work programme — a work stream focused on reducing emissions — to progress the commitment made at Cop 28 in 2023 to "transition away" from fossil fuels. But talks have stalled and could end without a conclusion at the summit. Developed countries as well as developing nations including some small island states and countries in Latin America — such as Brazil, Colombia, Peru, Mexico — have expressed disappointment about how mitigation talks were going. New Zealand called on countries to follow up on last year's decision on mitigation at Cop 28 and Norway added that these issues deserved "more than silence on mitigation". Switzerland complained that mitigation was "held up by a select few", and said that the discussion was critical for increased commitments for next year's 2035 Nationally Determined Contributions (NDCs). NDCs are countries' climate plans that include emissions reduction targets. Cop parties are due to submit new versions by February 2025. The US also said that Cop 29 needed to "reaffirm the historical Global Stocktake decision" taken last year. And developed nations, led by the EU, called for the discussion to continue this week — the second week of Cop 29. But countries including Bolivia, Iran and Saudi Arabia, for the Arab Group, pushed back on this. The mitigation work programme is "not… open to reinterpretation", Saudi Arabia's representative said today. The country said earlier that it did not want new targets to be imposed, complaining about the "top-down approach" taken by developed countries. India reminded developed countries that they have yet to deliver on their new finance commitment — a crucial step for more ambitious NDCs in developing nations. But "Cop 29 cannot and will not be silent on mitigation", the summit's president, Mukhtar Babayev said today. "On mitigation we have been clear that we must make progress, "he said, adding that he has asked ministers from Norway and South Africa to consult on what an outcome on mitigation could look like. EU climate commissioner Wopke Hoekstra today said that it is "imperative that we send a strong signal this week for the next round of NDCs", he said. Points related to mitigation — including transitioning away from fossil fuels and phasing out inefficient fossil fuels subsidies — are currently mentioned in the draft text for the new finance goal, known as the new collective quantified goal (NCQG). It is the key issue at Cop 29. Developed countries agreed to deliver $100bn/yr in climate finance to developing nations over 2020-25, and Cop parties must decide on the next stage — including the amount. Developed countries are likely push for the fossil fuel language to stay in the finance goal text, especially if mitigation talks stall elsewhere. But countries such as Saudi Arabia have long opposed this, while developed countries have received some criticism for still not having given an amount for the new finance target. By Georgia Gratton, Prethika Nair and Caroline Varin Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Cop: G20 momentum key to Cop climate finance outcome

18/11/24

Cop: G20 momentum key to Cop climate finance outcome

Baku, 18 November (Argus) — The outcome of the G20 leaders' summit in Brazil taking place on Monday and Tuesday on climate financing will be key to the success of the UN Cop 29 climate conference in Baku, Azerbaijan, summit president Mukhtar Babayev said today. "We cannot succeed without [the G20], and the world is waiting to hear from them," Babayev said. The leaders' summit takes place at the beginning of the second week of the Cop 29 conference. Progress at Cop 29 last week towards agreeing a new climate finance target for developing countries — the so-called NCQG — was not sufficient, Babayev said. He is concerned that parties are not moving towards each other fast enough. Little progress was made in the first week on three main areas of disagreement: the amount of climate finance which should be provided, how it should be structured, and which countries should contribute. Babayev urged G20 leaders, including US president Joe Biden who will be present in Brazil, to send a "positive signal of commitment to solving the climate crisis," and deliver clear mandates for Cop 29. The talks in Baku move from the technical to the political phase this week. Ministers typically have more authority to move red lines. But parties should focus on wrapping up less contentious issues early in the week so as to leave time for major political decisions, according to Simon Stiell, executive secretary of UN climate body the UNFCCC. Babayev expects talks on the amount of climate financing which will be on the table to continue until the last day of the summit at the end of this week, he said. The Cop presidency has invited former and upcoming Cop hosts the UK and Brazil to advise and "ensure an ambitious and balanced package of negotiated outcomes." Both countries have in the past week communicated more ambitious emissions reduction targets, which have been broadly welcomed. The EU today called for the Cop presidency to step up its role in the process. "We do need a presidency to lead, to steer us in the direction of a safe landing ground," European commissioner for climate action Wopke Hoekstra said. Hoekstra declined to be drawn on the amount of climate financing that the EU would like to see. Developing countries have pushed for a high goal of $1.3 trillion/yr, well above the previous target of $100bn/yr. The EU today reiterated instead its desire for the base of contributor countries to be enlarged beyond the current roster of countries defined as developed under the UNFCCC, and for as much private finance to be mobilised as possible to add to public finance. By Rhys Talbot Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Cop: Argentina pulls delegation from Baku

13/11/24

Cop: Argentina pulls delegation from Baku

Montevideo, 13 November (Argus) — Argentina's government today withdrew its delegation from the UN Cop 29 climate summit in Baku, Azerbaijan. The country's foreign affairs ministry confirmed to Argus that the delegation had been told to leave the event, which began on 11 November and will run through 22 November. No reason was given for the decision, but it fits the general policies of President Javier Milei, who has expressed skepticism about climate change. Milei eliminated the country's environment ministry shortly after taking office in December 2023. He is also pursuing investment to monetize oil and gas reserves, with a focus on the Vaca Muerta unconventional formation. Vaca Muerta has an estimated 308 trillion cf of natural gas and 16bn bl of oil, according to the US Energy Information Administration. In October, the government created the Argentina LNG division with a plan to involve private companies and the state-owned YPF to produce and export up to 30mn metric tonnes (t)/yr of LNG by 2030. It wants to export 1mn bl of crude. The plans are closely linked to a new investment framework, known as RIGI, that will provide incentives for large-scale investments. The administration is also pushing hard for investment in critical minerals, including copper and lithium. Argentina has the world's second-largest lithium resources, estimated at 22mn t by the US Geological Survey. It has copper potential that the RIGI would help tap. The government has not specified if pulling out of Cop 29 means Argentina will withdraw from the Paris Agreement, which Argentina ratified in 2016. The country's nationally determined contribution calls for net emissions not to exceed 359mn t of CO2 by 2030. This represents a 21pc reduction of emissions from the maximum reached in 2007. By Lucien Chauvin Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Cop: Guterres warns of exploitation in minerals race

13/11/24

Cop: Guterres warns of exploitation in minerals race

London, 13 November (Argus) — Demand for critical minerals vital to the electric vehicle and renewable energy sectors should be met without causing a "stampede of greed" that exploits local communities and harms those living in poverty, UN secretary-general Antonio Guterres has said. "We are here to respond to a key challenge — turning the energy transition towards justice," Guterres told the UN Cop 29 climate summit in Baku, Azerbaijan. Guterres warned that as the energy transition accelerates, it could present more risks than opportunities for many developing countries rich in metals such as copper or lithium unless managed with justice and equity. "For developing countries rich in resources, [the energy transition] is a huge opportunity to generate prosperity, eliminate poverty and drive sustainable development. But too often this is not the case," he said. "Too often we see the mistakes of the past repeated in a stampede of greed that crushes the poor," Guterres added. "We see developing countries ground down to the bottom of value chains, as others grow wealthy on their resources." In response to concerns in developing countries rich in battery minerals, the UN in April established the Panel on Critical Energy Transition Minerals. The panel of governments, international organisations, industry and civil society developed "voluntary principles" for managing value chains for critical energy transition minerals. The panel's report outlines seven voluntary guiding principles covering environmental and human rights, responsible investment and finance, transparency and anti-corruption measures, and international co-operation. It also identifies five "actionable recommendations", including establishing an advisory group to accelerate benefit-sharing and economic diversification, developing a mineral traceability framework and creating a fund to address mine closures and other mining legacies. The UN code has no enforcement mechanisms, and so implementation depends on the participation of industry, governments and civil society. By Cristina Belda Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Echion, CBMM open Nb anode material facility

13/11/24

Echion, CBMM open Nb anode material facility

London, 13 November (Argus) — UK-based niobium battery materials company Echion and the world's largest niobium producer CBMM have opened a niobium anode production facility at CBMM's industrial complex in Araxa, Brazil, this week. The facility will produce up to 2,000 t/yr of Echion's proprietary XNO active anode material, equivalent to 1GWh of lithium-ion cells. The niobium-based anode material is designed to enable safer fast-charging, reducing the risk of overheating or battery damage. The material can also maintain high-energy density at extreme temperatures and high power across more than 10,000 charging cycles, Echion said. Echion and CBMM aim to supply the XNO anode material to electrified heavy-duty industry, commercial and mass-transport customers, as these sectors could benefit the most from safe ultra-fast charging and long-life batteries. Echion already has some downstream customers for its XNO products. Leclanche, a Swiss energy storage technology supplier, announced its XN50 lithium-ion battery cell that uses XNO anode material in September. Leclanche is expected to replace its existing lithium titanium oxide offering with this new range of batteries. Meanwhile, CBMM began testing niobium-titanium-oxide anode materials in short-range lithium-ion batteries earlier this year as part of a project to produce electric buses with Japan's Toshiba and Germany's Volkswagen. CBMM is the world's largest producer of ferro-niobium used to produce high-strength steels, but has expanded into niobium-based battery materials in recent years. The company aims to have 30pc of its revenues come from non-steel-based products by 2030. By Sian Morris Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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