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Sino-Moroccan COBCO starts producing EV batteries
The Sino-Moroccan Company COBCO announced on Wednesday that it has begun production of lithium-ion batteries components at its plant in Jorf Lasfar. This is located 125 kilometers (78 miles south of Casablanca). COBCO, a joint venture of Moroccan investment fund Al Mada with CNGR Advanced Materials (a producer of battery materials), is a Moroccan-owned company. Morocco's proximity with Europe, its automotive industry, the free trade agreements, and the availability of phosphates, cobalt, and other materials make it an attractive destination for Chinese battery manufacturers. In a first phase, the plant will produce two key components for lithium-ion batteries: nickel-manganese-cobalt (NMC) and precursor cathodes (pCAM), COBCO said in a statement. It said that the materials would be made from nickel, manganese and cobalt, which are essential components for stationary energy storage and EV batteries. A source familiar with the project said that the $2 billion facility will eventually have a capacity of 70 gigawatt hours per year, which is enough to outfit one million cars. The plant aims to reach an annual production capacity of 120,000 tonnes of NMC precursors and 60,000 tonnes of lithium-iron-phosphate (LFP) cathodes. The company stated that the production of LFP cathodes will begin "as quickly as a regional LFP batteries ecosystem emerges." COBCO’s plant is the first to start production in Morocco’s drive to become a hub of EV battery supply chains, while it tries to adapt its auto industry to EV requirements. Gotion High Tech, a Sino-European manufacturer of EV batteries, is building Africa’s first gigafactory, in Morocco. The investment totals $6.5 billion and production will begin in the third quarter 2026. Hailiang, a Chinese auto battery manufacturer, and Shinzoom, a Shinzoom company from China announced plans last year to build two separate factories near Tangier that would produce copper and anodes. BTR New Material Group, a Chinese battery manufacturer, plans to manufacture key components cathodes at Tangier. Official figures show that Morocco has Stellantis and Renault car production plants. The automotive industry exports are expected to reach a record of 157 billion dirhams (17 billion dollars) by 2024. Reporting by Ahmed Eljechtimi Editing Mark Potter
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WEC Energy delays coal power plant retirement due to surge in power demand
We Energies is a subsidiary of WEC Energy and plans to extend the operation of units 7 & 8 at the Oak Creek Coal-fired Power Plant in Wisconsin until the end of 2026. Now, the plant that was to be retired at the end 2025 will have units to meet the high energy demand. We Energies President Mike Hooper stated that "just this month, National Grid experts raised the alarm about elevated risks of electricity shortages and prices spikes due plant closures and increased energy demand in Upper Midwest." In April, U.S. president Donald Trump signed executive orders to boost domestic coal production in response to the rising demand for power, which includes data centers required by artificial intelligence technologies. According to the Institute for Energy Economics and Financial Analysis, Trump's executive order could delay the closing of coal-fired plants and encourage restarting of 102 coal-fired units that were recently closed. We Energies said that it was actively planning to build more than 6,300 MW of new power using wind, solar and natural gas over the next five-year period in order to meet customer demand and improve grid reliability. (Reporting and editing by Sahal Muhammad in Bengaluru, with Pooja menon reporting from Bengaluru)
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EU revises regulations to expand space market
The European Commission presented the EU Space Act on Wednesday, a much-anticipated overhaul of its rapidly-growing space industry's regulations. The legislation is designed to create a single space market in the EU for companies that offer space services, while also enhancing efforts to become more competitive against the United States and commercial space powers. The plan also includes measures to combat the problem of space congestion, which is a growing issue in an era when thousands of satellites in orbit are moving around and where 128 million pieces are floating in the air. The European Commission stated that the legislation will also address threats from electronic interference and cyberattacks, as well as promote environmentally sustainable space resource use. The bill would mandate that satellites be disposed of safely at the end their operational lives, require space operators to conduct risk assessments and implement cybersecurity measures, and set rules for measuring the environmental impact. Andrius Kubilius, EU space and defense commissioner, said: "The 21st Century will be the Century of Space and the New Frontier - the New Frontier: Space." We are at the beginning of a revolution in space. "Space will soon be massive." These rules will be applicable to EU space assets, national space assets as well as to non-EU operators that offer services in Europe. The European Parliament and EU Council must approve the proposal as law. (Reporting and editing by Tim Hepher, Ed Osmond, and Makini Brice)
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US foreign investment slump: anomaly or warning? McGeever
The 'dedollarization' debate has largely focused on the foreign exposure of U.S. stocks and bonds. Investors shouldn't ignore the foreign direct investment flows. This is the traditional sticky capital which may be sending out warning signs. Foreign direct investment (FDI), is when an overseas entity purchases the assets or increases its holdings of a foreign company. This can be done by purchasing machinery, plants, or a controlling interest. FDI, therefore, is a more stable investment than portfolio flows. Donald Trump, the U.S. president, says that he has brought record-breaking foreign investment to his country. The White House website has a "non comprehensive running list" of new U.S. investments since Trump began his second term. The total running is in the trillions and includes pledges made by several foreign countries. The United Arab Emirates (UAE), Qatar, Japan, and Saudi Arabia have all pledged more than $4 trillion of investments in the United States. Trump said during his trip to the Middle East in the last month that the U.S. was on track to receive $12-13 trillion in investments from around the world. This includes "projects... mostly announced...and some to be revealed very soon." In time, these flows will be revealed in their entirety. Official figures released on Tuesday revealed that FDI fell to $52.8 Billion in the first three months, the lowest level since the fourth quarter 2022. This is well below the average quarterly figures of the last 10 and 20 year. Commerce Department figures showed that U.S. current-account deficit widened in the third quarter to a record $450,2 billion, or 6%, of U.S. Gross Domestic Product. FDI inflows only covered 10% of this shortfall. Should the Trump Administration be concerned? Tariff Distortions The short answer to this question is most likely not, or at least not just yet. FDI flows tend to be smaller than portfolio investments in equity and fixed-income securities. Therefore, from the perspective of funding a current account deficit, FDI declines are not as concerning. If foreign investors also buy fewer U.S. Securities, then capital will need to be raised from somewhere else to cover the deficit. Additionally, the balance of payments in America in the first quarter were distorted because domestic consumers and business leaders rushed to import goods before Trump's tariffs kicked in later in the year. Trump is betting that the deficit will shrink in this year and beyond, as his "America First" policies encourage more "onshoring", as domestic firms bring production home. The weaker dollar also helps U.S. Manufacturing by making exports competitive. The boom that follows will bring in investment from both companies and governments abroad. Theoretically. These dynamics are not only one-sided. Citi estimates that the European Union will account for 45% in 2023 of all U.S. FDI. Combining the European continent's German fiscal splurge with U.S. Tariffs and concerns about 'dedollarization' could easily reduce that flow. Section 899, a possible tax of 20% or more on foreigners' U.S. earnings that could be included in Trump's budget plan, is another potential risk for U.S. bound FDI. Tax Foundation reported in May that Section 899 "would hit inbound investment that makes up more than 80% of U.S. FDI inbound stock." Section 899 may be diluted by industry pushback, but it still remains a cloud over U.S. investments. Citi reports that the U.S. will be the largest recipient of FDI in the world by 2023. This is up from 15% just before the pandemic. Its economy is one of the biggest in the world. It's a hub for innovation, cutting-edge technology, artificial intelligence, and money making potential. This will always attract FDI. It remains to be determined whether it will attract as much FDI in the new environment. You like this column? Open Interest (ROI) is your new essential source of global financial commentary. ROI provides data-driven, thought-provoking analysis. The markets are changing faster than ever. ROI can help you keep up. Follow ROI on LinkedIn, X.
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Vale will eliminate the use of water in Carajas iron-ore processing by 2027
Vale executives announced on Tuesday that the mining giant aims to end the use of water in the processing of iron ore by its Carajas Mines by 2027. The company also plans to expand pellet feed production at the complex located in northern Brazil through the reuse and recycling mine waste. Vale stated that by eliminating the use of water for iron ore beneficiation, it would reduce the amount of waste, known as tailings, in the production process. This would also eliminate the need to build new dams and save money. Carajas in Brazil's Para State is the largest open-pit iron ore mining complex in the world. A part of its operations has already adopted dry processing. Vale's Northern System, which comprises 90% of its operations, no longer uses water for beneficiation. By the end of 2027, they will be completely dry. "The Northern System will run 100% on natural moisture," Vale Director Gildiney Sales stated. Gildiney Sales was referring to a region that produced 177.5 millions metric tons iron ore in the year 2024. This is more than half Vale's overall output. The company said it also expects to double its production by 2026 compared to the current year for its Gelado project, which produces high-quality feed pellets using tailings that have been stored at the Gelado Dam since 1985. According to the company, its production is expected to reach 5 million tonnes next year, and 6 millions tons by 2027. 10% of the total annual production By 2030, "circular mining' will be responsible for a third of the world's coal production. Reporting by Roberto Samora, Editing by Tomasz Janowski and Chizu Nimiyama
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India's Nuclear Power Corp. extends deadline for small-reactor proposals as industrial interest grows
The state-run Nuclear Power Corporation of India Ltd. (NPCIL), which is a nuclear power company, has extended the deadline to industrial users for proposals on setting up small nuclear reactors of 220 megawatts electric (MWe), amid a growing interest among companies in cleaner energy sources. NPCIL announced in a Wednesday notice that it has extended to September 30, 2025 the deadline for proposals for the establishment of Bharat Small Reactors in existing or new industries. The previous deadline was June 30. The corporation is now accepting proposals on a continuous basis. NPCIL reported that several industrial houses had already signed nondisclosure agreements, and began joint work on BSR model. Others have asked for more time to prepare their submissions. India is rewriting its nuclear liability laws to attract private and foreign investment as it aims to achieve its net-zero goals and decarbonize its industrial power. The country wants to increase its nuclear power to 100 gigawatts by 2047. It is currently at 9 GW. According to the proposal announced by NPCIL in December, industries will cover capital and operating costs and use the electricity generated. India operates 25 nuclear power reactors that contribute about 3% to its electricity. NPCIL, the only operator of nuclear power stations in the country is proposing to allow private Indian companies to build nuclear plants. Foreign companies can hold up to 49%. Reporting by Sethuraman N.R.; Editing Tasim Z.Ahid
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Portugal's power outage highlights need for EU funding to modernise grid
The blackout that occurred in Iberia in April demonstrated the need for European grids to be modernised to accommodate more renewable energy generation. Portugal's Energy Minister said on Wednesday that it wants EU funding to finance these investments. The Energy Minister Maria da Graca Carvalho stated that renewable energy sources like wind and solar are more unpredictable and have a decentralised output, making it harder to manage. She said: "The blackout showed that there was a need for more modernisation, digitalisation and data storage, to better understand the complex system, and to react to it." She said, "It is a matter of security and it requires investment. We have asked the European Commission for guidance in Europe's investment as well as co-financing. According to the Commission, to reach its clean energy targets by 2030, EU countries will need to invest 679 billion euros (584 billion euro) in expanding and modernising electricity grids. In May, the European Grids Package was launched to gather inputs for its future. It is expected to be completed by the end 2025. In a report published last week, the Spanish government stated that the grid operator Redeia miscalculated on April 28 the correct energy mix in the system. It also blamed thermal power plants, which use coal, gas, and nuclear for not maintaining an appropriate voltage. A spike in voltage caused a cascade to occur of power plant shutdowns, which ultimately led to an outage that reached Portugal. The minister stated that the report was still unclear and Portugal awaited an independent report by the European Energy Regulators' Agency ACER in order to determine what caused the blackout and what needed to be done "to avoid future blackouts, and, if it occurs, to be able (to restart) the system more quickly".
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Sovecon, a Russian agricultural consultancy, raises its 2025 Russian wheat production forecast
The agricultural consultancy Sovecon announced on Wednesday that it has slightly increased its forecast of Russian wheat production in 2025, by 0.2 millions metric tons. This is due to improved crop conditions throughout central Russia. The total grain crop was also increased to 129.5 millions metric tonnes, from 127.6 in May. Sovecon stated that the revision reflects better crop conditions in central Russia, particularly in eastern areas and Voronezh Region. The improved outlook for central Russia was partly offset by the lower forecasts in Siberia and Urals where spring wheat areas are expected to drop sharply. Oksana Lute, the Agriculture minister, said that Russia plans to export 45 millions tons of wheat during the next marketing season (which begins on July 1), slightly more than the current season. Russia is the largest wheat exporter in the world. The government estimates that the grain harvest in 2025 will be 135 millions metric tons, an increase of 130 million tons from last year. Estimated harvest includes those from Russian-controlled areas of Ukraine. Reporting by Olga Popova, Writing by Maxim Rodionov, Gleb Bryanski and Andrew Osborn Editing by Andrew Osborn
Dollar steady, stocks up as ceasefire boosts confidence
On Wednesday, stocks rose and crude oil remained close to multi-week lows as investors viewed a ceasefire agreement between Israel and Iran and reinvested in riskier assets. They also brushed aside any immediate concerns about an energy crisis.
Lower oil prices lowered the inflation risk for bonds.
Israel has said it will take strong action against Iranian missile attacks that followed after U.S. president Donald Trump declared an end to hostilities.
According to an initial U.S. Intelligence Assessment, the U.S. airstrikes didn't destroy Iran's nucleonic capability, but only pushed it back a few months. This contradicts Trump's previous comments that Iran’s nuclear program had been "obliterated".
Early trade saw the Stoxx 600 index in Europe rise 0.2%, while S&P futures and Nasdaq Futures were flat.
The Nikkei soared 0.4% in Japan, while the Hang Seng rose 1.3% in Hong Kong, and blue chips on mainland China gained 1.44% to close at their highest levels since March 20.
The MSCI global stock index remained stable after hitting a new record overnight.
Analysts at Frankfurt's Metzler stated that "if the still-tense Middle East situation continues to calm, then the stock markets may have a pleasant month of July in front of them in line with the usual seasonal pattern."
This would lead to new highs for the U.S. and could be further fueled by renewed expectations that the Fed will cut interest rates.
The latest U.S. macroeconomic statistics, including consumer confidence data, released over night suggest that the economy may have grown slower than expected in the largest oil-consuming country. This has boosted expectations for Federal Reserve rate reductions this year.
Brent crude rose by 2%, to $68.43 a barrel. This is a slight rebound after a drop of up to $14.58 in the two previous sessions. U.S. West Texas Intermediate Crude was up to $65.60 a barrel.
In a client note, analysts at ING stated that "while concerns regarding Middle Eastern supplies have diminished, they haven't entirely disappeared and there is still a strong demand for immediate supply."
The yield on the two-year U.S. Treasury bond was the lowest since May 8, at 3.7848%.
The euro fell 0.1% to $1.1594. This is still near the overnight high, $1.1641, which has not been seen since October 20,21. Meanwhile, the U.S. Dollar Index, which measures currency against six other major counterparts was only marginally higher at 98.079.
Gold prices rose slightly to $3,328 an ounce.
Investors continue to be most concerned about U.S. money policy, aside from geopolitics.
Federal Reserve Chair Jerome Powell stated on Tuesday that increased tariffs may begin to raise inflation this summer. This period will be crucial for the U.S. Central Bank when considering rate cuts.
According to CME FedWatch, the markets continue to price in an approximate 19% chance of the Fed cutting rates by a quarter-point in July.
(source: Reuters)