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Beijing is urged to relax export restrictions on rare earth magnets by diplomats and automakers
Sources said that diplomats, automakers, and other executives, from India, Japan, and Europe, were seeking urgent meetings with Beijing officials in order to press for a faster approval of rare-earth magnet exports. This was because shortages could halt global supply chains. According to a source who is familiar with the trip, a business delegation from Japan plans to visit Beijing early in June to meet with the Ministry of Commerce to discuss curbs. A European official revealed that European diplomats representing countries with large auto industries also requested "emergency meetings" with MOFCOM over the past few weeks. In the next two or three weeks, auto executives will be travelling to India where automakers have warned they are close to closing down. Adam Dunnett is the secretary general of the European Chamber of Commerce of China. He said that some companies could cease production this week. Requests for comments were not immediately responded to by the European Union and Japanese Missions in Beijing. Beijing's dominance of the rare earths industry over the past decade has given it a huge advantage. China, which controls 90% of the global processing capacity for magnets used in everything from cars and fighter jets to household appliances, imposed export restrictions to seven rare earth elements as well as several magnets. Exporters were required to obtain licenses through Beijing. Controls are viewed by many as an important diplomatic tool, because there are few alternatives to China. Beijing agreed, as part of the Geneva truce, to suspend or remove all non-tariff measures imposed by Washington since April 2. There has been only a small trickle of approvals and Chinese officials have refused to speak publicly about the issue. Last week, U.S. trade representative Jamieson Greer accused Beijing of "slowing down" the removal non-tariff measures. An official said that the South Korean industry ministry had asked China to grant more export licenses as only a few companies were licensed. The Chinese foreign ministry did not answer a question Tuesday about whether Beijing will speed up the processing of export licence applications. After-hours queries to the Ministry of Commerce were not answered immediately. A source with knowledge of the issue said that thousands of applications from European companies alone are awaiting approval. Last week, the Chinese state media reported that China may relax some of its restrictions on European semiconductor companies. The Ministry of Foreign Affairs also announced last week that it would increase cooperation with other countries regarding its controls. The application process to obtain export permits was long and opaque, which resulted in a halving of rare-earth magnets exported from China. "China will not blink, but it will strategically and slowly provide exemptions," said an American businessperson briefed about the issue who declined to name himself for sensitive reasons. It's a painful test for a relationship that is already fragile. Reporting by Aditi Shah in Delhi, and Laurie Chen in Beijing. Additional reporting by Antoni Sladoskowski in Beijing, and Hyunjoo Ji in Seoul. Writing by Lewis Jackson. Editing by Bernadette B. Baum.
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Andy Home: Rio Tinto is betting lithium will remain the battery metal of choice.
The lithium market is a difficult one to be in as the metal has been weighed down by an excess of supply. The price of lithium hydroxide has fallen by 90% since its peak in 2022 and shows no signs that it will recover. According to Wood Mackenzie, multiple producers now operate at negative or zero margins. Albemarle, which is the world's biggest producer of battery metal, has cut costs and delayed new projects in order to survive the supply crisis. Rio Tinto is not deterred. The global mining company remains "consistent" in its belief that lithium's long-term prospects are positive. The company has put its money where it's mouth is by acquiring the U.S. producer Arcadium at a cost of $6.7 billion, and partnering with Chilean entities for two projects. Rio believes that despite the current market dejection, demand will be sufficient to absorb current excesses and bring the market back into deficit by the end of the decade. In a rapidly changing landscape, it's a good bet to say that lithium will continue to dominate the battery metal market. Low Price, High Demand Lithium prices are weak because of the oversupply on the market. According to the International Energy Agency, global lithium production will grow by more than 35% per year in 2024. Chinese companies are not interested in cutting production and new mines continue to ramp up. However, the supply tsunami masks the strength in lithium demand. According to the IEA, global consumption grew 30% last year. This is equivalent to the global market size in 2018. Electric vehicles (EVs) are in good health. They are the largest users of lithium-ion battery technology. According to Rho Motion, sales of new energy vehicles increased by 25% in 2013 and by 29% during the first quarter of 2014. The use of lithium in energy storage systems has increased even more as the global power system pivots towards cleaner, but intermittent, energy sources like solar and wind. Rio Tinto expects the demand to increase at a rate of 10% or more annually through 2040. DOMINANT METAL This scenario is primarily threatened by a change in battery chemistry, as manufacturers strive to make batteries that are cheaper and more efficient. The use of more expensive metals in batteries, such as nickel and cobalt, has declined dramatically. However, lithium remains the most dominant element. Adamas Intelligence reports that the amount of nickel and copper deployed in new energy cars in March was only up by 12% and 2% respectively year-over-year. The deployment of lithium was up 30%, which is the same as overall EV growth. However, the battle for battery materials is not over. The Chinese company CATL is a pioneer in the development of sodium ion batteries. The latest iteration, Naxtra, will almost match in efficiency the lithium iron phosphate (LFP) batteries that are displacing nickel-manganese-cobalt (NCM) chemistries. Robin Zeng, the billionaire founder of CATL, believes that sodium-ion battery could replace up to 50% of the LFP market. The IEA, however, is less certain, noting the fact that sodium-ion battery prices are high in a lithium-rich environment. This is not what we have at present. Lithium’s low cost may be the best way to fight off competition from other materials. The battery price is also falling, making new electric vehicles more affordable. MARKET ACCELERATOR According to the IEA, battery pack prices have fallen by 20 percent to a new record low of $115 kilowatt hours in 2024. This is the biggest annual decline since 2017. Prices across the spectrum of battery metals have soared to record levels, resulting in a drop in the share of cathode materials in battery pack prices from 20% in 2023 to just 10% in 2024. LFP batteries are 30% cheaper in China than NCM batteries, which are popular in Western markets. European automakers have taken notice. Volkswagen has adopted LFP technology to create a 20,000 euro entry-level electric vehicle for the European market. The price of electric vehicles has been a major barrier to consumers switching over, but that gap is closing. Market forces can be a powerful counterbalance to tariffs, and the fact that President Donald Trump has scrapped his predecessor's green agenda. SAFE BET The metal crown of lithium's battery looks secure for the time being. The impact of the global EV Revolution and the growing demand for grid-storage solutions will mitigate the impact on lithium, even if sodium-ion battery market shares start to take off in China. The IEA also points out that despite interest in new chemistries the main driver for battery innovation is still the conventional chemistries based upon lithium. Both NCM and LFP technology are constantly improving. The demand for lithium is growing at a phenomenal rate and all indications are that it will continue in the coming years. How long it takes for the current surge in supply to translate into a deficit on the market and higher prices depends on how long this supply surge continues. Do not hold your breath. It may take some time. These are the opinions of a columnist who writes for.
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India's imports of iron ore will continue to rise, but it is not China: Russell
India's growing steel industry is hailed as a boon for iron ore miner's looking to expand their market as China's production slows down. But the reality may not match the hype. India's capacity to produce steel is about 200 million tons per year, and the South Asian country has ambitious plans for reaching 300 million tons by 2030. How would this change the dynamics of the global iron ore seaborne market if these plans were to be realized? To get a definitive answer, you need to determine how much of India's demand for iron ore can be met from its own mines. According to preliminary data, India is the world's fourth largest iron ore producer. Its production reached a record of 289 million tonnes in the fiscal period from April 2024 through March 2025. The amount of steel produced in the last fiscal year was 277 million tonnes. However, this is still far short of what it would take to meet the needs of a steel industry that produces 300 million tons annually. It takes approximately 1.6 tons of iron ore to produce one ton using the blast-furnace/basic oxygen-furnace process. This is the most popular method used in India and China, the world's largest steel producer. It is possible for India's iron ore production to reach 460 million tonnes by 2030. If it does, can the infrastructure to transport ore from mines to steel mills be built? Anil Agarwal, chairman of Vedanta group, told Business Standard in October that India could overtake China and Brazil as the world's second largest iron ore producer after Australia. Vedanta is the owner of Sesa Goa Iron Ore - one of India’s largest producers. While Agarwal's claim of India's vast reserves is true, it is unlikely that such an increase in iron ore production in a short time period is possible. Indian Steel Association predicts that iron ore will be in short supply by more than 100 millions tons over the next few years. This will force imports to increase. Imports are rising. India is a net iron ore exporter. It usually ships lower-grade ore to China, while importing material of higher quality to mix with the domestic ore. According to commodity analysts Kpler, India exported 13.67 million tonnes in the first five month of 2025, with 11.11 million of those going to China. As domestic steel mills use more ore, exports are on the decline. The average monthly exports for the first five month of 2025 is 2.73 million tonnes, down from 3.13 million in 2024 and 3.70 millions in 2023. Kpler reports that imports also increased, reaching 4.57 million tonnes in the first five month of 2025. The Indian imports are expected to double this year, from 6.72 million tonnes in 2024 compared to 6.67 millions in 2023. Even if imports rise to 10 million tonnes this year, there is a long road to 100 millions tons by 2030. How quickly India can build up its steel capacity, and how the domestic iron ore miners respond will determine how much of an impact this has. According to the Global Energy Monitor, India currently has a steel capacity of 20 million tons and another 155 million are planned. Iron ore imports will be boosted by the under-construction plants, but volumes are expected to remain modest for at least this year and next. It is most likely that the current trend will continue, with India's low-grade iron-ore exports decreasing and its higher-grade imports increasing over time. These are the views of a columnist, who is also an author.
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Meta signs power deal with Constellation Nuclear Plant
Meta Platforms announced on Tuesday that it had reached an agreement with Constellation Energy, which will keep a reactor in Illinois operational for the next 20 years. This is the first time a Big Tech company has made a deal with atomic power plants. Share Reaction Constellation Energy's shares rose 13.4% in premarket trading to $355.5. Why it's important The Big Tech Companies are seeking to secure electricity, as the U.S. demand for power has risen for the first two decades due to artificial intelligence and data centres. Illinois helps to subsidise Constellation's Clinton Clean Energy Center nuclear plant with a ratepayer funded zero emissions credit program. This program awards benefits for the generation of electricity virtually free of CO2 emissions. This agreement expires 2027 when Meta's Power Purchase Agreement will provide an unspecified amount to support the plant for re-licensing, and operation. This deal could be a template for other Big Tech firms to use to support their existing nuclear power while also planning to power data centres with new nuclear energy and other sources. KEY QUOTES Urvi Parekh is the head of global energy for Meta. He said: "One thing that we hear from utilities very clearly is that they want certainty that power stations operating today will remain operational." Joe Dominguez said that Constellation is in talks with other clients not only in Illinois but across the nation to do what Meta did, which was to give us a backup so we could invest in the necessary investments to relicense these assets and to keep them operational. Bobby Wendell is an official with the International Brotherhood of Electrical Workers. He said that the agreement would provide a "stable working environment" for the workers in the plant. By the Numbers Constellation can also expand Clinton by 30 MW, which is a plant with a 1,121-megawatt capacity. The plant can power the equivalent of 800,000 U.S. households. Clinton started operating in 1987, and Constellation renewed its license with the U.S. Nuclear Regulatory Commission last year.
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The ethics committee of the Norway Fund reviews Israeli bank stakes in West Bank settlement loans
The ethics watchdog of Norway's $1.9 trillion fund is reviewing the practice by Israeli banks to underwrite Israeli settlers' commitments to build houses in the occupied West Bank. This review could lead up $500 million in divestments. The Council on Ethics (a public body established by the Ministry of Finance) has decided to not object to the Fund’s investments in platforms like Airbnb, which offer rentals in Jewish settlements. The Norwegian parliament has set ethical guidelines for the companies in the portfolios of the largest wealth fund in the world. Svein Brandtzaeg, the Council's head in an interview on May 22 said that the Council was looking at how Israeli banks provide guarantees to protect Israeli settlers money if a company building their homes in the West Bank were to fail. He said that other practices were also being examined, "but so far this is what we have seen". "This is what has been well documented." He refused to give a time estimate for the review. Brandtzaeg didn't name the banks, but at the end 2024 the fund will own shares worth about 5 billion crowns (500 million dollars) in five of the largest Israeli lenders. This is an increase of 62% over the past 12 months. Hapoalim Bank Leumi Israel Discount Bank Mizrahi Tefahot Bank First International Bank of Israel and Bank Leumi did not respond to requests for comments. They have been listed in the list of companies that are linked to settlements within the occupied Palestinian Territories, compiled by the U.N. mission that assesses the implications on Palestinian rights. Investors have become increasingly concerned in recent years about a 19-month Israeli offensive that has resulted in the deaths of more than 50,000 Palestinians, and the destruction of the Gaza Strip as a response to an attack launched by Hamas militants which killed over 1,200 Israelis. In the West Bank and East Jerusalem, 2.7 millions Palestinians live alongside 700 000 Israeli settlers. Some Israeli companies serve both Israelis as well as Palestinians. Last year, the top court of the United Nations ruled that Israeli settlements on land seized in 1967 are illegal. Israel called this ruling "fundamentally incorrect", citing historical or biblical ties with the land. Accommodation Rentals in West Bank Settlements The Council on Ethics will begin a new assessment of investments related to the West Bank & Gaza in mid-2024. The report examined 65 companies and recommended that only the petrol station chain Paz, as well as the telecoms company Bezeq be divested. This resulted in shares being sold. The Council also examined some multinationals' activities in the West Bank to determine if they met its guidelines. Airbnb, Booking.com and Expedia were among the platforms that made the U.N.'s list, and accounted for approximately $3 billion of Fund investments. In a joint interview, Eli Ane Lund said that the Council would not recommend the creation of watchlists or divesting from these. She said that "the company's activities must have some sort of influence on (ethical violations)." "It is not enough to just have a connection. It must have some sort of influence on the (ethical) violation. The Council makes recommendations to the central banks, who are not required to follow these but usually do. The decision to sell investments is made public after the sale is completed, in order to avoid alarming the markets. Pro-Palestinian activists say that the Council's recommendation for divestments is too high. They also claim that the Norwegian Government should instruct the fund in order to divest from Israel, just like it did with Russia three days after the invasion of Ukraine by Moscow. Most lawmakers, however, support the Council approach and will formally endorse on Wednesday a decision by a parliamentary committee to not order a boycott. Reporting by Gwladys Fauch in Oslo, Stefania Spezati in London, and Steven Scheer from Jerusalem; editing by Kevin Liffey
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Meta signs power deal with Constellation Nuclear Plant
Meta Platforms announced on Tuesday that it had reached an agreement with Constellation Energy, which will keep one of its reactors in Illinois operational for the next 20 years. This is the first time a Big Tech company has made a deal with a nuclear plant. Why it's important The Big Tech Companies are seeking to secure electricity, as the U.S. demand for power has risen for the first two decades due to artificial intelligence and data centres. Illinois is subsidizing Constellation's Clinton Clean Energy Center nuclear plant with a program of zero emission credits funded by ratepayers. This program awards benefits for the generation of electricity virtually free of emissions of carbon. This agreement expires 2027 when Meta's Power Purchase Agreement will provide an unspecified amount to support the plant for re-licensing, and operation. This deal could be a template for other Big Tech firms to use to support their existing nuclear power while also planning to power their data centers using new nuclear energy and other sources. KEY QUOTES Urvi Parekh is the head of global energy for Meta. He said: "One thing that we hear from utilities very clearly is that they want certainty that power stations operating today will remain operational." Joe Dominguez said, "We are definitely in conversations with other clients not only in Illinois but across the nation, to step up and do what Meta did, which was essentially to give us a backup so that we could invest in the needed investments to relicense these assets and to keep them operational." Bobby Wendell is an official with the International Brotherhood of Electrical Workers. He said that the agreement would provide a "stable working environment" for the workers in the plant. By the Numbers Constellation can also expand Clinton by 30 MW, which is a plant with a 1,121-megawatt capacity. The plant can power the equivalent of 800,000 U.S. households. Clinton started operating in 1987, and Constellation renewed its license with the U.S. Nuclear Regulatory Commission last year. (Reporting and editing by Leslie Adler; Timothy Gardner)
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Copper prices fall as China's manufacturing activity falls short of expectations
The copper price fell on Tuesday, as the top metals consumer China failed to meet expectations. This indicates that U.S. trade tensions are affecting this manufacturing superpower. The benchmark three-month copper price on the London Metal Exchange fell 0.5%, to $9.571 per metric tonne at 0952 GMT. The most actively traded U.S. Comex Copper futures dropped 1.9% to $4.76 a pound. This reduced the premium over the LME benchmark from $1,074 to $914 a tonne, down from Monday's level of $1,074. Comex futures reached $4.9495 on Monday, the highest level since April 3. This was due to concerns that U.S. president Donald Trump's plans to double tariffs for steel and aluminum imports from Wednesday to 50% would lead to new U.S. tariffs on copper, which are subject to an investigation that is ongoing in Washington. Ole Hansen is the head of commodity strategy for Saxo Bank. He said: "Traders are questioning whether these levels can be sustained after another round of disappointing China data over night." A private sector survey revealed that China's manufacturing activity has shrunk for the first eight-month period. The Caixin/S&P Global Manufacturing PMI dropped to 48.3 last month, the lowest level in 32 months. China's official PMI for May showed a decline in factory activity for the second consecutive month. Traders were waiting on a possible phone call between Trump, the Chinese leader Xi Jinping, and U.S. manufacturers, who also contracted in May for a third consecutive month. The White House said that they would likely speak this week. The 21-day moving-average, which is currently $9,526 and the continued outflows of stocks from LME registered warehouses, are supporting the LME copper. LME daily data revealed that the inventory had fallen to 143.850 tons after 4.600 deliveries. This was the lowest level in over a year. Other LME metals include aluminium, which fell by 0.8%, to $2446.50 per ton. Zinc also declined, down 0.3%, to $2690. Lead dropped 0.5%, to $1971.50. Nickel shed 0.8%, to $15,415. Tin rose 0.3%, to $30,745. (Reporting and editing by Janane Vekatraman; Polina Deitt)
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BP invests in Azerbaijan Caspian projects
BP announced on Tuesday that the owners of the Shah Deniz field in the Azeri-Caspian Sea, led by BP, have made a decision to invest $2.9billion on increasing the output from the project. Shah Deniz produced more than 4,000,000 tonnes of condensate last year. This is equivalent to around 35,000,000 barrels of gas, according to BP. Other owners include Russia's LUKOIL and Turkey's TPAO. Azerbaijan SGC, NICO, and Hungary MVM are also involved. Shah Deniz's expansion project aims to increase production by approximately 25 million barrels and 50 billion cubic meters (bcm). BP, after a failed foray in renewables that began in 2020, has reduced its spending and redirected investments back to oil and gas. It also pledged to reduce its debt until 2027. These projects are completely within BP's budget. Shah Deniz Compression was one of 8-10 major projects that BP expects to begin between 2028 and 2030. It is expected that it will contribute to BP's upstream global production reaching 2.3-2.5 millions barrels of oil per day by 2030. The capacity for this to grow further until 2035. Separately, BP announced on Tuesday that the company had acquired stakes in offshore exploration and production blocks in the Azerbaijani portion of the Caspian Sea. BP announced in a press release that the agreements for finalising the deal had been signed by BP, and SOCAR (Azeri state-owned energy company). No immediate indication was given as to the possible production volume. Azerbaijan relies primarily on mature oilfields along the Caspian Sea. The country aims to maintain oil production at around 582,000 barges per day in the next five year with the help of Western energy companies. Ilham Aliyev, the President of Azerbaijan, announced on Monday that Azerbaijan intends to increase its natural gas exports by eight billion cubic meters by 2030. Azerbaijan exported natural gas of 25 bcm in 2024. Exxon Mobil announced on Monday that it had signed an agreement with the Azeri State Energy Company SOCAR to explore oil and gas production on land in Azerbaijan. (Reporting and writing by Nailia bagirova, Gleb Stolyarov, Felix Light and Mark Trevelyan; editing by David Evans and Mark Trevelyan)
Baker Hughes predicts a drop in spending by producers as tariffs pinch the demand
Baker Hughes, a U.S. oilfield services provider, forecasted steeper cuts in global oil producer spending as tariffs dent the demand expectations and drive down crude prices.
Baker Hughes, a rival of Halliburton, expressed concern on Tuesday that low oil prices may cause oilfield activity to decline in North America.
Baker Hughes of Houston, which on Tuesday reported a better-than expected first-quarter profit, now expects that global upstream expenditures will be down by single digits by 2025.
Baker Hughes has said that oil and gas producers' spending in North America (excluding Mexico) is expected to drop by low-double-digits. This compares with an earlier expectation of a decline in the single-digit range.
Spending is expected to drop to the mid-to-high single digits in international markets, compared to a previous prediction that spending would be flat or down on an annual basis.
In North America, the delays in discretionary spending are continuing into the second quarter due to ongoing uncertainty. The recent volatility in oil prices could also have a negative impact on second-half activity, especially in the United States, said Baker Hughes CEO Lorenzo Simonelli.
Simonelli stated that the prospect of a glut of oil, rising tariffs and uncertainty in Mexico, as well as a weakness in Saudi Arabia's activity, collectively limit international upstream expenditure levels. He added that this weakness will be partially offset by the strength of markets such Brazil, and other countries in the Middle East, Asia Pacific and the Middle East.
The company warned about the cost impact of tariffs on U.S. imported goods from China, Germany and Britain, as well as a more modest impact due to steel and aluminum tariffs. Baker Hughes said it also sources oilfield chemicals and components from Canada and Mexico.
The company said that it would increase its domestic sourcing and be in contact with customers about recovering some costs.
Baker Hughes predicted a $100-200 million impact on annual earnings, before interest, taxes, depreciation, and amortization.
Baker shares fell 5% to $36.46 in the early morning hours of Wednesday.
Baker Hughes is expected to benefit from the emergence of liquefied natural gas technologies and equipment, following the lifting of the U.S. President Donald Trump's moratorium on new LNG permits and the rising demand for gas and electricity for data centers.
Simonelli stated that several key LNG customers along the Gulf Coast have indicated plans to expand their capacity beyond 2030. This will provide greater clarity about the possibility of an increase in installed capacity over the 800 million tonnes per year anticipated by the end decade.
Simonelli stated that customers are not pulling back on LNG, gas pipeline or data center projects.
The company expects to order at least $1.5 Billion in data center equipment within the next three-year period.
(source: Reuters)