Thailand woos Chinese EV investment, secures Chery

: Battery materials
24/04/23

Chinese state-owned auto producer Chery Automobile will build an electric vehicle (EV) factory in Thailand after more than two years of discussions with Thailand's Board of Investment (BOI), which has secured multiple other EV-related investment.

Chery will build a plant in Rayong province with a first phase capacity of 50,000 unit/yr of battery and hybrid EVs, which is scheduled to begin production in 2025, BOI said on 22 April. The plant's capacity is expected to be expanded to 80,000 unit/yr by 2028 in a second phase. Chery's project has also been approved by BOI for the country's investment promotion. Thailand's investment promotion strategy grants successful projects tax and non-tax incentives.

BOI secretary-general Narit Therdsteerasukdi this month met executives from seven Chinese battery manufacturing firms, including Gotion High-tech, China Aviation Lithium Battery and the world's largest battery producer CATL. Two major manufacturers are expected to invest in cell-level battery production in Thailand this year, which will each come with 6-10 GWh of capacity in their first phase and with a combined investment value of over 30bn baht ($810mn).

All the firms were interested in Thailand's incentives for EV battery manufacturers, said Narit.

"I believe that in two years Thailand will have a large-scale battery cell factory. This will be another milestone to strengthen the supply chain and the long-term foundation of the electric vehicle industry in Thailand," said Narit.

Thailand aims to attract Bt1 trillion of investment for its future automobile industry by 2030 as it seeks to become a future mobility hub, Thai prime minister Srettha Thavisin said in February. The country has since secured Bt240bn of investment from Japanese car producer Isuzu.

Thailand last year also secured Bt9.8bn of investment from Chinese major auto manufacturer Changan Automobile, similarly after two years of discussions.

Thailand's EV registrations in 2023 more than quadrupled from a year earlier to nearly 90,000 units, reaching a 10pc vehicle sales share that is comparable to the US, according to the IEA's Global EV Outlook 2024.

By Joseph Ho

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25/04/24

Indonesia developing ETS ahead of EU CBAM introduction

London, 24 April (Argus) — Indonesia is developing its own emissions trading system (ETS) in conjunction with the EU ahead of the introduction of Europe's carbon-border adjustment mechanism (CBAM), delegates at the inaugural Argus Nickel Indonesia conference heard today. The country is working closely with the European Commission to develop an ETS to offset any potential tariffs and duties imposed under the new CBAM, which will be introduced in 2026, Head of Centre for Green Industry at Indonesia's Ministry of Industry, Apit Pria Nugraha, told delegates. "We are now working hand in hand with the commission to establish a mandatory carbon market," Nugraha said. "One of the motivations is to use carbon credits to offset the CBAM tariff." He added that the country is working to decarbonise its stainless steel industry by switching to new furnace types and upgrading facilities ahead of the CBAM. While Indonesia's main buyer is China, the country has ambitions to be a global supplier of stainless steel, as well as nickel and cobalt to the battery industry. Nickel is not yet directly impacted by the CBAM, but is indirectly impacted owing to the inclusion of stainless steel in the mechanism. "We are also exploring mechanisms such as preferential treatment for certified green products, export benefits linked to sustainability metrics and finance solutions to de-risk innovations," Nugraha said. "Companies which meet CBAM and ESG standards early will be rewarded with pricing premiums and strategic partnerships. Indonesia must move fast to lead on quality and sustainability." Nickel industry prepares for increased scrutiny Indonesia's rapidly growing nickel industry is preparing for increased scrutiny that will come with the CBAM, and carmakers increasing ESG demands as they transition to electric vehicles. "ESG is one of the top priorities for the global mining and metal companies — we can no longer ignore it," Head of Sustainability at Nickel Industries, M. Muchtazar, told delegates. "Those who have strong ESG policies and implementation will prevail against the competition." Muchtazar explained that the new generation of high-pressure acid leaching operations planned by Nickel Industries will significantly reduce the carbon footprint of its nickel mines, with a shift towards solar power and re-usable heat from its sulphide plants — averaging 6.97t of CO2 per tonne of nickel produced, lower than the estimated 13t average — into Class 1 nickel, according to a report by CarbonChain. CBAM is likely to become an "effective import tariff" on high-emission producers of products going into steel and could be extended out to new products in the future, including Class 1 nickel, Carboneer managing director Simon Goess told delegates. He estimated that an importer of 85,000 t/yr of pig iron, ferro-nickel and crude steel could face charges of €20mn-40mn ($22.8mn-45.5mn) by 2034, assuming indirect emissions become targeted by the CBAM by 2030, a significant proportion of the value of those imports. "Green nickel is more than just a buzzword, it is a competitive imperative," Nugraha said. "We must act now to advance sustainability into our nickel industry, not just for compliance but for resilience, profitability and also global leadership." By Thomas Kavanagh Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Posco delays Argentinian lithium projects on low prices

25/04/24

Posco delays Argentinian lithium projects on low prices

Singapore, 24 April (Argus) — South Korean conglomerate Posco, which owns battery materials producer Posco Future M, is pushing back the completion of its Argentinian lithium projects by half a year because of a sluggish recovery in lithium prices. Its 25,000 t/yr lithium hydroxide plant in Argentina came on line last year. Posco was planning to complete its phase 2 — alongside an upstream brine project that provides feedstock to the plant, which would have raised its capacity by another 25,000 t/yr — by July-September. But this has now been postponed to January-March 2026. Posco is looking to ramp up its phase 1 by the end of 2025, but pushed back the completion schedule to "build optimal production system" given a market slowdown and slow recovery in lithium prices, it said in its latest quarterly results presentation on 24 April. It earlier this year ended a nickel refinery joint venture with major Chinese lithium-ion battery cathode active material (CAM) precursor manufacturer CNGR. The joint venture's liquidation is expected to be completed by June, Posco said on 24 April. Posco Future M's revenue rose by 17pc on the quarter but fell by 26pc on the year to 845bn South Korean won ($589mn), because of higher CAM revenue and more anode active materials' (AAM) sales. Operating profit came in at W17bn, rebounding from a loss of W41bn a quarter earlier but was lower than W38bn a year earlier. The subsidiary reported recovering CAM sales, partly owing to rising sales of high-nickel products, with a boost to AAM sales because of higher overall demand for non-Chinese AAM, said Posco. Chinese lithium carbonate prices have continued to trend downwards recently, weighed down by the trade war between the US and China since early April. Prices for 99.5pc grade lithium carbonate were assessed at 69,000-72,000 yuan/t ($9,463-9,874/t) ex-works China on 22 April, down from Yn69,500-72,500/t ex-works on 21 April and Yn70,000-73,500/t ex-works on 17 April. By Joseph Ho Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Indonesia stands committed to Ni controls: Ni Indonesia

25/04/23

Indonesia stands committed to Ni controls: Ni Indonesia

London, 23 April (Argus) — Indonesia remains committed to controlling nickel exports as well as increasing downstream value, the country's environment minister told delegates at the first Argus Nickel Indonesia conference today. Cecep Mochammad Yasin, director of mineral business development at the energy and mineral resources ministry, said the rapid growth of Indonesian nickel output made it necessary to adjust royalty rates and maintain output controls to preserve "invaluable nickel reserves" and stabilise prices on the international market. The Indonesian government in March adopted Regulation 19 of 2025, increasing royalty rates for nickel ore to 14-19pc, up from a previous flat rate of 10pc, while Ferronickel and NPI royalty rates were introduced at 5-7pc and nickel matte at 3.5-5.5pc. The new rates will take effect from the end of April. "This is a critical step towards ensuring that our natural resources give optimum benefits to all Indonesians by gradually increasing royalty rates," Cecep said. Preserving Indonesia's mineral wealth Cecep emphasised his country's commitment to preserving nickel reserves, saying Indonesia needed to maintain production controls to increase the longevity of critical minerals. "We have a responsibility to manage this resource to ensure availability for future generations," he said. "Massive exploitation of natural resources without regard for conservation will result in resource depletion. We must learn from other countries' experiences to make sure our nickel reserves are not depleted too quickly." Indonesia earlier this year set a production quota for nickel ore in 2025 at around 200mn t, a reduction from 2024's estimated production of 215mn t. The government had previously approved 240mn t of production out to 2026, but a reduction was made in January owing to a nickel supply glut in the international market. Since then, nickel prices have continued to fall, reaching their lowest since early 2020 at $14,000-14,030/t on the London Metal Exchange (LME) on 9 April after US tariffs were announced. Prices have since bounced back to about $15,000/t on continued trade negotiations between the US and other economic partners. The minister also hinted at working with other nickel producing countries "to create a shared understanding of global production management", which he said would be a "key step" towards international price stability. Government officials warned delegates that over the coming years, the quality of nickel grades will decline, as some of the low-hanging fruit has already been picked. "Resource quality will gradually decline," Indonesia's National Economic Council executive director Tubugas Nugraha said. "Over the next 2-3 years this trend will be balanced by increased production, but in the longer term the nickel content, especially in our NPI products will face structural challenges." Increasing downstream ambitions Indonesia has ambitions to add further value downstream in the supply chain, including in stainless steel and battery production, delegates heard. "By promoting the growth of domestic nickel processing and refining industries, we can increase added value and reduce reliance on exports," Tabagus told delegates. "Downstreaming can also absorb part of the supply and produce consistent demand." Tubagus added that downstreaming is part of Indonesia's 2045 plan for economic development, moving from extracting raw ore to producing value-added materials. He added that the country's ambition was to become a "global hub" for stainless steel, battery raw materials and electric vehicle (EV) components. Under the Indonesia Emas 2045 plan, the country plans to invest over $600bn into commodity linked industries in the coming decades, in order to escape what Indonesian national development planning ministry energy resources director Nizhar Marizi called its own "middle-income trap". Tax revenues will be key to this plan, as a report by the World Bank in December 2024 highlighted, saying Indonesia would need "structural reforms" to increase tax receipts and fund its ambitions. By Thomas Kavanagh Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

South Korea's LGES exits Indonesia's $8.4bn EV project

25/04/22

South Korea's LGES exits Indonesia's $8.4bn EV project

Singapore, 22 April (Argus) — Top South Korean battery firm LG Energy Solution (LGES) has pulled out of Indonesia's Grand Package project, which is supposed to be an integrated electric vehicle (EV) battery project worth 142 trillion Indonesia rupiah ($8.4bn). "Taking into account various factors, including market conditions and investment environment, we have agreed to formally withdraw from the Indonesia [Grand Package] GP project," LGES told Argus on 22 April. The mega project was in the making since 2019. It involves an LG consortium that consists of multiple South Korean firms including LGES, LG Chem, LX International and Posco Future M, major Chinese cobalt refiner and nickel-cobalt-manganese precursor producer Huayou, Indonesian state-controlled mining firm Aneka Tambang (Antam) as well as consortium Indonesia Battery. Original plans included building a $1.1bn battery cell plant and were supposed to be followed by a smelter, precursor and cathode plant as well as "mining cooperation" with Antam. "However, we will continue to explore various avenues of collaboration with the Indonesian government, centering on the Indonesia battery joint venture, HLI Green Power," the firm added. The HLI Green Power is LGES' 10 GWh/yr Indonesian battery production joint venture with South Korean conglomerate Hyundai Motor, which started mass production last April. LGES earlier this year also invested in Chinese battery cathode maker Lopal Tech's lithium iron phosphate plant in Indonesia . LGES last year said it plans to reduce its dependence on the EV battery business and has signed multiple energy storage system battery supply deals so far this year, including with Taiwanese electronics manufacturing firm Delta Electronics and Polish state-controlled utility PGE . By Joseph Ho Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Hyundai, Posco partner on $5.8bn US steel mill

25/04/21

Hyundai, Posco partner on $5.8bn US steel mill

Houston, 21 April (Argus) — South Korea's Hyundai Motor and steelmaker Posco signed an agreement in principle to jointly invest in a $5.8bn new US steel mill as part of a plan to boost cooperation in the steel and battery sectors. Hyundai aims to boost its global competitiveness through a stable supply of key mobility materials, while Posco seeks to lead in automotive steel and battery material supply. Under the agreement, Posco will collaborate with Hyundai through an equity investment in the automaker's [electric arc furnace (EAF) integrated steel mill project]( https://metals.argusmedia.com/newsandanalysis/article/2647645) in Louisiana, US. The $5.8bn Louisiana EAF steel mill, set to begin operations in 2029, will produce 2.7mn metric tonnes (t)/yr of high-quality hot- and cold-rolled automotive steel sheet. The partnership also expands to battery material sourcing, supporting Hyundai's goal of reaching 3.26mn/yr electric vehicle sales by 2030. Posco produces lithium hydroxide, cathode and anode active materials, and the partnership is expected to ensure a stable supply of battery raw materials that meet regulatory and supply chain requirements in the US and Europe. By Carol Luk Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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