GM idles Fairfax as UAW strike ripples out
US automaker General Motors (GM) has idled its Fairfax, Kansas, sedan and SUV plant as an ongoing strike ripples further into the industry.
The Fairfax plant had to shut down today because of a lack of stamped parts provided from GM's Wentzville, Missouri, plant, the automaker said in an email. The United Auto Workers (UAW) union began striking at Wentzville on 15 September.
GM said 2,000 employees were being laid off at Fairfax.
The UAW is striking Ford, GM and Stellantis at three separate plants, one each per automaker. The strike, which has encompassed less than 10pc of the union's membership, could expand on Friday afternoon if the union believes not enough progress has been made in contract negotiations.
The UAW has demanded 40pc wage increases, the restoration of cost of living adjustments, and the end to the tiered system of workers, among other demands. The automakers have increased their wage offers to half the level the union wants, and both sides appear to remain far apart.
In Canada, union Unifor and its represented auto workers struck a tentative deal with strike-target Ford yesterday.
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Lynas to produce heavy rare earths in Malaysia by 2025
Lynas to produce heavy rare earths in Malaysia by 2025
Beijing, 28 June (Argus) — Australia-listed mining company Lynas Rare Earths plans to start producing two separated heavy rare earth (HRE) products at its Malaysian facility by 2025. Lynas will start production of separated dysprosium and terbium at one of Lynas Malaysia's solvent extraction circuits in 2025. The facility is designed to separate up to 1,500 t/yr of a mixed heavy rare earth compound containing mixed samarium, europium, gadolinium, holmium, dysprosium and terbium (SEGH). The HRE project has completed initial engineering and detailed engineering design is underway, with commissioning and ramp-up expected in mid-2025. Lynas' HRE product range will increase to five products — dysprosium, terbium, unseparated samarium/europium/gadolinium, holmium concentrate and unseparated SEGH — after the separation of dysprosium and terbium from the SEGH compound. Dysprosium and terbium are needed to produce high-performance rare earth magnets, which are used in consumer electronics, electric vehicle engines and other automotive applications. Lynas is also progressing pre-construction activities for its planned rare earth processing facility in the US. Its facilities in Malaysia and the US have been designed to accept third-party feedstocks once they start operations. The heavy rare earths production provides a pathway to accelerate Lynas' commitment to processing all of the elements at the firm's Australian Mount Weld ore site, said Lynas' chief executive officer and managing director, Amanda Lacaze. Supply chains More national governments have been taking action to build or diversify more resilient and sustainable rare earth supply chains, to keep up with a fast-evolving clean energy transition and reduce their heavy reliance on China-origin supplies. China is the largest supplier of medium and heavy rare earths in the world, and it has been implementing stricter export control policies for rare earth extraction and separation technology. There is limited progress on the development of rare earth projects outside China, especially in the HRE market, mostly because of exploration technique restrictions, ore resource shortages, production costs and capital pressure and environmental consideration and so on. US-based rare earth producer MP Materials aims to develop a facility to produce HREs in the next few years. It has started neodymium-praseodymium oxide production since the third quarter of last year and targets commercial production of finished magnets by late 2025. Australian mineral producer Iluka Resources plans to achieve an output capacity of up to 23,000 t/yr of rare earth oxide, including 5,500 t/yr of neodymium-praseodymium oxide and 725 t/yr of dysprosium and terbium oxide from its refinery in Australia. Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
China, EU launch talks ahead of EV provisional duties
China, EU launch talks ahead of EV provisional duties
Beijing, 28 June (Argus) — 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. Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
US House panel advances waterways’ projects bill
US House panel advances waterways’ projects bill
Houston, 27 June (Argus) — A Congressional committee on Wednesday advanced a bill to authorize a bundle of US port and river infrastructure projects for the US Army Corps of Engineers (Corps). The Water Resources Development Act (WRDA) biennially authorizes projects handled by the Corps' civil works program aimed at improving shipping operations at the nation's ports and harbors, and along the inland waterway system. The traditionally bipartisan legislation also approves flood and storm programs, and work on other aspects of water resources infrastructure. The House of Representatives' Transportation and Infrastructure Committee on Wednesday passed the bill by a 61-2 vote. The Senate Committee on Environmental and Public Works passed its own version of the bill on 22 May by a 19-0 vote. Neither the full Senate nor House have yet voted on the bills, which will need a conference committee to sort out different versions. A key difference is that the House bill did not include an adjustment to the cost-sharing structure for lock and dam construction and major rehabilitation projects. The Senate measure adjusted the funding mechanism so that 75pc of costs would be paid for by the US Treasury Department's general fund, with the rest coming from the Inland Waterways Trust Fund. The 2022 version of the bill made permanent an increase to 65pc from the general fund and 35pc from the trust fund, which is funded by a barge diesel fuel tax. The House committee's decision not to include the funding change drew disappointment from shipping interests. The Waterways Council was "disappointed that the House did not include a provision to modernize the inland waterways system", but was hopeful that conference negotiations would result in its inclusion, Tracy Zea, chief executive of the group, said. The latest House version of the bill authorizes 12 projects and 160 new feasibility studies. Among the projects receiving approval were modifications to the Seagirt Loop Channel near the Baltimore Harbor in Maryland. The federal government would pay $47.9mn towards an estimate $63.9mn project to widen the channel, which would help meet future demand for capacity within the Port of Baltimore. That would include increased container volume at the Seagirt Marine Terminal. The project was in the works before the 26 March collapse of the Francis Scott Key Bridge temporarily diverted freight from Seagirt and many other port terminals. The committee also authorized $314.25mn towards a resiliency study of the Gulf Intracoastal Waterway. The study would consider hurricane and storm damage and identify ways to improve navigation, reduce the maintenance requirements, and provide resiliency. The waterway connects ports along the Gulf of Mexico from St Marks, Florida, to Brownsville, Texas. The House version of the bill also includes provisions to strengthen flood control, wastewater, and stormwater infrastructure. "Critically, WRDA 2024 will help communities increase resiliency in the face of climate change," representative Rick Larsen (D-WA) said. By Abby Caplan and Meghan Yoyotte Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Mexico to tap economist for energy minister
Mexico to tap economist for energy minister
Mexico City, 27 June (Argus) — Mexican president-elect Claudia Sheinbaum appointed economist and lawyer Luz Elena Gonzalez to become energy minister in her government that will take office on 1 October. Gonzalez has a long record in public service and served as finance director of the Mexico City government during Sheinbaum's tenure as the capital's mayor from 2018-2024. She has no direct energy industry experience. Sheinbaum won a convincing victory in the 2 June presidential elections and will take office on 1 October when Morena political party founder and current president Andres Manuel Lopez Obrador ends his six-year term. Gonzalez will face a range of challenges as energy minister including completion of the long-delayed Olmeca refinery, development of a plan to tackle state-owned Pemex's enormous debt, expansion of Mexico's electricity generation and grid capacity with a renewed focus on clean energy and the construction of natural gas storage. She will also be in charge of policy decisions that will define the role of private-sector investors in the energy sector. Gonzalez will replace Miguel Angel Maciel, appointed following energy minister Rocio Nahle's resignation in October 2023 to pursue the Veracruz gubernatorial election. Nahle, who took office as energy minister in 2018, led efforts to build the Olmeca refinery and has been a strident supporter of Lopez Obrador's energy sovereignty policy that has sought to restrict private-sector investment. Sheinbaum also appointed Jesus Esteva as transport minister, Raquel Buenrostro as civil service minister, David Kershenobich as health minister and Edna Elena Vega as urban and rural development minister. All of the candidates appointed today have either worked with Sheinbaum during her period as Mexico City mayor or in Lopez Obrador's government. By Rebecca Conan Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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