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Power electronics driving new demand for metals

  • : Metals
  • 21/08/23

Advances in a technology that underpins the consumption, distribution and increasingly the generation of electricity is driving demand for new types of microchips that combine silicon with carbon and electronic metal gallium.

"When we think about digital, the digital age, we are usually thinking about the processing of communications and data and performing calculations. But there is another important area, the control of power," the University of Edinburgh's chair of power electronics, professor Stephen Finney, said.

Huge systems such as interconnectors that connect the power grids of different countries, factories, a mobile phone or a single LED light bulb all rely on microchip systems that can control, measure and convert electricity. More than 80pc of the energy generated globally passes through some kind of power electronics. Hidden away from view in grid infrastructure and inside devices and machines, many people are unaware of the technology.

"All those packets of biscuits we ate during lockdown, they were made using power electronics," UK Research and Innovation's Challenge Director - Driving the Electric Revolution, professor Will Drury, said. "The most efficient and often the only way to run a machine is to alter the amount and form of electricity it receives. And data centres consume an awful lot of power and need power electronics to make them affordable to operate."

A mobile phone is a mini-power system. The direct current (DC) battery is charged from a 50Hz alternating current (AC) grid and different voltages are needed for different components.

"If you wonder why the power supply for your laptop or mobile phone charger is much smaller today, it is because people have got better at building the power electronics in it. And more change is coming," Finney said.

Generation gap

Electricity in the 1950s was largely generated from rotating turbines. By controlling the amount of fuel and regulating the speed, it produced a fixed frequency AC grid. "Now we are talking gigawatts of wind power and significant amounts of photovoltaic," Finney said. "We need to capture the maximum amount of energy from what is available. We need power electronics to connect up offshore wind and use high voltage DC to transport electricity over longer distances and connect national grids for pooling," he said.

Changes in the way electricity is produced and consumed will require solid-state (semiconductor) substations and transformers and smart grids that relay information and use temporary storage. The question for the UK is whether it imports this technology or seeks to manufacture some of its own.

All of these advances will also require new materials. Conventionally, silicon was used for power electronics, but as the demands increased, scientists and engineers began to look to new materials — compound semiconductors. In a compound semiconductor, the wafer is made of two or more elements chemically combined in an ultra-high purity crystal lattice. This combination makes it possible to obtain some important properties. Silicon carbide — silicon combined with carbon — and gallium nitride — gallium and nitrogen — are what is known as wide-bandgap semiconductors. This means that they handle much higher voltages than silicon, which is why they are so important to power electronics and essential for the growing electric vehicle industry.

"There is an opportunity in automotive semiconductors, which is why we need to keep investing," Drury said. The UK has a long history in power electronics — a company in Wales has been making industrial drives — power electronics converters attached to motors — since the 1970s. The UK government launched a power electronics strategy in 2011 looking at key growth areas, followed in August 2019 by the launch of the Driving the Electric Revolution Challenge with funding of £80mn ($110mn) from the Industrial Strategy Challenge Fund (ISCF). The goal is to make the UK a global leader in the manufacture of the core technologies that support electrification — power electronics, electric machines and drives (PEMD) and accelerate supply chain development. So far the ISCF has invested £33mn in four industrialisation centres, designed to support research and development in the UK by enabling businesses and researchers to develop and scale new PEMD technologies and manufacturing processes. It has also provided around £40mn in funding to over 40 projects from wind turbine generators to electric propulsion for boats, and from electric hub motors for farm vehicles to nuclear coolant system components.

Net zero race

"Power electronics is a race to cope with increasing electricity consumption," Drury said. "We cannot achieve net zero without power electronics," he said.

Power electronics is a technology of the future. As all industries push to increase energy efficiency and reduce CO2 emissions, power electronics will play a key role.

By Caroline Messecar


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25/04/04

Egyptian rebar clears EU customs as merchant bar

Egyptian rebar clears EU customs as merchant bar

London, 4 April (Argus) — Egyptian rebar has cleared at the Lithuanian port of Klaipeda under a product code that sits under a different EU quota category, a mill test certificate sent to rebar buyers and obtained by Argus shows. The documentation shows a parcel of steel products with the properties and specifications of rebar registered under HS code 722830, which is for hot-rolled bar, not rebar. The material is supplied by an Egyptian steel mill, and the mill test certificate obtained by Argus contains the assertion "HS code for rebar is: 72 28 30 69 00", followed by the signature of a senior quality engineer. The mill's website indicates it produces rebar, rebar in spools and rebar in coil, which fall respectively under the rebar and wire rod EU import quotas. Hot-rolled bar under the HS code 72283069 falls under category 12 for "non-alloy and other alloy merchant bars and light sections", for which there is currently no import restriction on Egyptian material. A trading company is thought to have discharged at least 17,000t of rebar and rebar in coils at Klaipeda on 28 March, after loading at the Egyptian port of Alexandria on 24 February. But it is not clear how much material in total has passed through customs or under which HS codes. As of 1 April, the EU's Egyptian rebar quota is capped at about 27,500t, after previously having had no limitation within the "other countries" allocation of about 138,000t. Some market participants estimated that there were about 80,000t of Egyptian rebar waiting to clear at EU ports on 1 April, but only about 30,000t cleared under the rebar quota on the first day, according to market participants, meaning duties paid by companies clearing material on that day will not be as high as feared. Trade data also show that Bulgaria imported 17,000t of hot-rolled bar from Egypt under HS 72283069 in January 2025, nearly three times as much as the whole EU imported in the full year of 2024 or 2023, a sign that companies are increasingly keen to seek ways around EU safeguards as they tighten. By Brendan Kjellberg-Motton Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Tariffs and their impact larger than expected: Powell


25/04/04
25/04/04

Tariffs and their impact larger than expected: Powell

New York, 4 April (Argus) — Federal Reserve chairman Jerome Powell said today tariff increases unveiled by US president Donald Trump will be "significantly larger" than expected, as will the expected economic fallout. "The same is likely to be true of the economic effects, which will include higher inflation and slower growth," Powell said today at the Society for Advancing Business Editing and Writing's annual conference in Arlington, Virginia. The central bank will continue to carefully monitor incoming data to assess the outlook and the balance of risks, he said. "We're well positioned to wait for greater clarity before considering any adjustments to our policy stance," Powell added. "It is too soon to say what will be the appropriate path for monetary policy." As of 1pm ET today, Fed funds futures markets are pricing in 29pc odds of a quarter point cut by the Federal Reserve at its next meeting in May and 99pc odds of at least a quarter point rate cut in June. Earlier in the day the June odds were at 100pc. The Fed chairman spoke after trillions of dollars in value were wiped off stock markets around the world and crude prices plummeted following Trump's rollout of across-the-board tariffs earlier in the week. Just before his appearance, Trump pressed Powell in a post on his social media platform to "STOP PLAYING POLITICS!" and cut interest rates without delay. A closely-watched government report showed the US added a greater-than-expected 228,000 jobs in March , showing hiring was picking up last month. By Stephen Cunningham Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Silicon, ferro-silicon hit by US tariffs


25/04/04
25/04/04

Silicon, ferro-silicon hit by US tariffs

London, 4 April (Argus) — Silicon and ferro-silicon prices in the US are likely to surge because of steep tariffs on imports announced this week, while prices in Europe might fall as countries hit by high tariffs redirect material to the EU. The tariffs announced by President Donald Trump on 2 April exempted a number of minor metals and ferro-alloys, listed in Annex II of the executive order, but ferro-silicon and silicon metal of less than 99.99pc purity were not among the exemptions. The US steel industry is a major consumer of imported silicon products. The tariffs are the second major US trade announcement on ferro-silicon in two weeks after the International Trade Administration (ITA) determined anti-dumping duty rates against ferro-silicon imports from Brazil, Malaysia and Kazakhstan on 25 March. A final decision on anti-dumping duties is due on 12 May, and it remains to be seen how the new tariffs will impact the ITA's decision. Several major silicon and ferro-silicon producing countries are now subject to Trump's adjusted reciprocal tariffs, above the 10pc applied to all imports. Vietnam now has one of the highest tariff burdens at 46pc, Kazakhstan is subject to 27pc and Malaysia to 24pc. The countries have been major suppliers of silicon products to the US. In 2024, the US imported 27,084t of ferro-silicon from Malaysia, 13,119t from Vietnam and 10,262t from Kazakhstan. Silicon and ferro-silicon producer Ferroglobe, which has operations in the US, Canada and Europe, and which petitioned for the anti-dumping duties before the ITA, says it is too early to predict the full impact of the tariffs. "As a vertically integrated local producer in both the US and the EU, we believe that Ferroglobe will benefit from a more level playing field in both markets," the producer said. But sellers of heavily-tariffed material have taken immediate steps to reduce their exposure. "I just cancelled a lot of vessels from Vietnam because you cannot pay a 46pc tariff," a trader said on Thursday. Countries with lower tariffs stand to benefit if prices surge. A producer in one such country told Argus he expects his company's margins and market share in the US to increase. Brazil is subject to only a 10pc tariff, making Brazilian producers now among the most affordable for the US market. The US imported 59,971t of silicon metal and 33,182t of ferro-silicon from Brazil in 2024, comprising 40pc and 21pc of total silicon and ferro-silicon imports, respectively. Iceland is also subject to the base 10pc tariff, although for silicon metal there is a pre-existing anti-dumping duty on PCC BakkiSilicon at 47.54pc, and 37.83pc on all other sales from Iceland. Norway's tariff was set at 16pc, making it more competitive than the EU, which is subject to 20pc. The US imported 9pc of its silicon metal from Norway in 2024. Norwegian silicon and ferro-silicon producer Elkem, which exports silicon-based products to the US from Canada, Paraguay, Iceland and Norway, told Argus the company will be increasing prices on all products going to the US. "Given that the US is a net importer of our products, we expect prices in the US to increase by more than the raised tariffs on Elkem's products," the company said. US exports might be redirected to EU The European ferro-silicon market has been rattled by concerns of dumping in Europe. Many expect more affordable material from Kazakhstan, Vietnam and Malaysia to flood the European market because of trade diversions from the US. A European producer expects large quantities of ferro-silicon to flood the market. "I am very afraid that Kazakhstan especially can ship material to Europe and will take the risk," he said. The EU has said it will take steps to prevent dumping of cheap goods in Europe. But with the European steel industry under pressure from the tariffs, the EU might hesitate to take measures that could increase costs for the steel sector. EU safeguard investigation could face delays The European ferro-silicon and silicon industries have already struggled to compete with affordable imports from third-country competitors with lower production costs. On 19 December, the European Commission announced a safeguard investigation on imports of silicon, ferro-silicon and manganese alloys. Many market participants expected a decision on trade protection measures in April. Some traders have held on to stock in the hope of prices increasing after the announcement. But now producers, traders and consumers told Argus this week that they expect any decision on safeguarding the ferro-alloy industry to be delayed until tariff negotiations have been concluded. Some planned meetings on the measures have been cancelled, the producer heard, as priorities have shifted. A trader with stocks in Europe told Argus that if he hears confirmation that the safeguard announcement will be delayed, he and other traders will look to sell material. "Prices are only inflamed because of the safeguarding," the trader said. "If it's a six-month delay, prices might stay firm, but if it's a year, we can't wait." By Maeve Flaherty Additional reporting from Samuel Wood Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

US adds 228,000 jobs in March: BLS


25/04/04
25/04/04

US adds 228,000 jobs in March: BLS

Houston, 4 April (Argus) — The US added a more-than-expected 228,000 jobs in March, showing hiring was picking up last month just as the new US administration began mass federal firings and announced tariffs on trading partners. Economists surveyed by Trading Economics had forecast job gains of 135,000 for March. The unemployment rate ticked up to 4.2pc in March from 4.1pc the prior month, the Bureau of Labor Statistics (BLS) reported today. Job gains in February were revised lower by 34,000 to 117,000 jobs. The unexpectedly strong job report comes amid mounting recession fears on the back of President Donald Trump's volley of trade tariffs unveiled this week and mass federal layoffs begun over the past month, which have yet to appear in the Labor surveys. US and global stocks have tumbled on the tariff news. As of 11am ET today, Fed funds futures markets are pricing in 43pc odds of a quarter point cut by the Federal Reserve at its next meeting in May and 100pc odds of at least a quarter point rate cut in June. Job gains averaged 159,000 over the 12 months prior to March. Federal government employment declined by 4,000 jobs in March following losses of 11,000 jobs in February. Employees on paid leave or receiving severance pay are counted as employed, the BLS said, so most of last month's announced federal job cuts do not show up in the data. Some federal job cuts have been reversed by court orders. Retail trade added 24,000 jobs, while transportation and warehousing added 23,000 jobs. Construction added 13,000 jobs and manufacturing added 1,000 jobs. Leisure and hospitality jobs grew by 43,000 and health care and social assistance added 78,000 jobs. Average hourly earnings rose by an annual 3.8pc, slowing from 4pc the prior month. By Bob Willis Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Funding cuts could delay US river lock renovations


25/04/03
25/04/03

Funding cuts could delay US river lock renovations

Houston, 3 April (Argus) — The US Army Corps of Engineers (Corps) will have to choose between various lock reconstruction and waterway projects for its annual construction plan after its funding was cut earlier this year. Last year Congress allowed the Corps to use $800mn from unspent infrastructure funds for other waterways projects. But when Congress passed a continuing resolutions for this year's budget they effectively removed that $800mn from what was a $2.6bn annual budget for lock reconstruction and waterways projects. This means a construction plan that must be sent to Congress by 14 May can only include $1.8bn in spending. No specific projects were allocated funding by Congress, allowing the Corps the final say on what projects it pursues under the new budget. River industry trade group Waterways Council said its top priority is for the Corps to provide a combined $205mn for work at the Montgomery lock in Pennsylvania on the Ohio River and Chickamauga lock in Tennesee on the Tennessee River since they are the nearest to completion and could become more expensive if further delayed. There are seven active navigation construction projects expected to take precedent, including the following: the Chickamauga and Kentucky Locks on the Tennessee River; Locks 2-4 on the Monongahela River; the Three Rivers project on the Arkansas River; the LaGrange Lock and Lock 25 on the Illinois River; and the Montgomery Lock on the Ohio River. There are three other locks in Texas, Pennsylvania and Illinois that are in the active design phase (see map) . By Meghan Yoyotte Corps active construction projects 2025 Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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