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Germany's VAC wants to increase US magnet production; Europe is behind in rare earths
Vacuumschmelze, one of only a few rare earth magnet manufacturers outside China, is seeking Washington's help to expand production at a new U.S. facility. This contrasts with the tepid support for similar plans in Europe. It is imperative that the West establishes its own supply of permanent magnets, as China produces 90% of these products, which are vital to defence, electric vehicles, and wind turbines. VAC CEO Erik Eschen stated that the U.S. is pushing harder than Europe for a domestic rare-earths sector. This can be seen by its magnet factory in South Carolina, which aims to open before the end of this year. "European governments have started to wake up, but are still far behind the United States." VAC has said that it has received approximately $200 million from the U.S. government in funding and tax credits to build the $500-million plant. Eschen said in an interview that "we have a great deal of technology in Europe, and we are transferring this technology to the United States." In July, the U.S. Department of Defense signed a multi-billion dollar deal with MP Materials which operates the U.S.'s only rare earths mine. VAC, a private equity company owned by ARA Partners is ahead of schedule in opening its magnet factory, which has a capacity just under 2,000 metric tonnes a year. He added that up to 90% of production will be used to supply General Motors' EVs. The remainder would go to the U.S. Department of Defense. China's decision to restrict magnet exports as part of the trade dispute with U.S. president Donald Trump in April, which has been easing over recent months, highlighted the need for Western action in rare earths. In Europe, EU wants to create a sector for rare earths, magnets, and other critical raw materials, in part through the Critical Raw Material Act, which was agreed upon in 2023. VAC, a company that has been around for over 100 years, currently produces 1,000 tons of magnets in Europe each year, but it is eager to expand. Eschen stated that they were looking to build a few factories in Europe, similar to the ones currently being built in America. We are in negotiations, discussions with several suppliers as well as with various governments who have an important interest. He added that individual European governments could move faster than the EU which must build consensus between its 27 members. Eric Onstad is the reporter. (Editing by Veronica Brown, Mark Potter and Veronica Brown)
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US provides nearly $156 Million in funding for Michigan reactor restart
A source familiar with the matter confirmed on Tuesday that the U.S. has disbursed $156 million as the latest installment in a loan guarantee to Holtec International for its Michigan nuclear power station, the company's hope being that it will be the nation's first reactor to restart following a shutdown. The Loan Programs Office of Department of Energy has disbursed the sixth installment of approximately $491 million of the maximum $1.52 billion of loan guarantees that were approved during the term of former President Joe Biden. Entergy, a power company, closed Palisades after more than 50 years of operation in 2022. The plant shut down two weeks earlier than planned due to a problem with a control bar, despite the $6 billion federal program designed to save reactors from increasing costs. Donald Trump, the president of the United States, supports nuclear energy as U.S. electricity demand is on the rise for first time in 20 years due to data centers and artificial Intelligence. Holtec intends to restart Palisades during the fourth quarter. Trump signed executive order in May to speed up the issuance of new nuclear licenses and to overhaul the Nuclear Regulatory Commission that issues them. Holtec was granted approval by the NRC to load fuel in the reactor this July. (Reporting and editing by Timothy Gardner, with Chizu Nomiyama)
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Petrobras hires Engeman as the manager of fertilizer plants for Bahia and Sergipe in Brazil
Petrobras, the state-owned oil company of Brazil, has announced that it has hired Engeman Industrial Services to manage fertilizer plants in Bahia e Sergipe. Petrobras announced in a press release that the contract for the operation and maintenance of nitrogen fertilizer plants had been signed on Friday, following the completion of an auction. Petrobras says that the plants will be operational again by the end this year. The contract value was not disclosed. According to its website, Engeman provides services in several sectors, including mining, oil and gas and energy. The two plants, if they were to be put back into operation, would reduce Brazil's dependence on imports of fertilizers, which are mainly from Russia. The Luiz-Inacio da Silva administration has made reducing reliance on imported fertilizer a top priority. Petrobras leased two nitrogen fertilizer facilities to Unigel under a 10-year contract in 2019. However, both plants have been closed since 2023. Unigel has cited unfeasible conditions for operating due to the high natural gas price in Brazil. In May, the two companies reached an agreement to resolve legal disputes regarding two fertilizer factories and restore Petrobras ownership of these plants.
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Investors on edge as TSX drops ahead of monetary Policy Meetings
Investors were on edge as they awaited the announcements of the Bank of Canada, and the U.S. Federal Reserve, later this week. The Toronto Stock Exchange S&P/TSX Composite Index fell 0.3% to 29,339.94 by 10:00 ET (1400 GMT), but remained close to the record high of Monday. The annual inflation rate in Canada rose by 1.9%, mainly due to higher petrol and food costs, but it was still below the 2% predicted by analysts. In a note, Andrew Grantham, senior economic analyst at CIBC Capital Markets said that core inflation measures are likely to continue to fall in the months to come, due to the slack in the economy, and the removal of many retaliatory duties on September 1. We not only expect a reduction of 25bp tomorrow, but also a subsequent one at the October meeting. Money markets expect the BoC to cut its rate on September 17 by a quarter-point. This is a 97% probability. The TSX and other global markets have reached record highs in the last few sessions. Markets are fully pricing in a Fed interest rate cut this coming week. Gold mining stocks dropped 0.7% on the day. New Gold, Orla Mining, and Alamos Gold fell between 2% to 3.8%. Chartwell Retirement Residences fell 1%, while Bausch Health dropped 1.9%. Vermillion Energy, Parex Resources and energy index both increased by 2.3%. Teck Resources, among other stocks, lost 2.2%. The Canadian industry minister said she will be meeting with the CEOs of Teck Resources and Anglo American to discuss their proposed merger next week. (Reporting and editing by Vijay Kishore; Twesha Dhikshit)
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Silver Lake and MGX invest together in Altera
MGX, a partner of Silver Lake and Abu Dhabi-based artificial intelligence investment company MGX, announced on Tuesday that it had joined the group to acquire a majority stake (49%) in California programmable chips business Altera. The size of MGX’s investment has not been disclosed. "Altera is a platform that's the foundation for next-generation computing." It is a chance to transform a company with such importance into a global leader in the AI era, said Omar Alismail. Intel sold Altera 51% to Silver Lake in April. The unit was valued at $8.75 Billion, which is a lot less than the $17 Billion Intel paid for Altera in 2015. Intel completed the deal on September 12. Silver Lake acquired a majority stake of Altera at an equity value around $3.3 billion. This is based on debt financing, cash flow and the value of the business. MGX is under the control of Sheikh Tahnoon Bin Zayed Al Nahyan. He is the national security advisor of the United Arab Emirates and brother to the president. He runs a $1.5 billion business empire that includes sovereign wealth funds, G42, and energy. MGX, a joint venture between Abu Dhabi sovereign fund Mubadala (formerly G42) and Abu Dhabi sovereign wealth fund Mubadala was founded last year. Its goal is to reach $100 billion of assets. It has become the centrepiece of United Arab Emirates’ drive to dominate financial intelligence. (Reporting and editing by Hadeel al Sayegh)
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Thyssenkrupp receives non-binding offer for Jindal Steel International steel unit
Thyssenkrupp announced on Tuesday that a division within the Indian conglomerate Naveen Jindal Group had submitted a non-binding offer for its steel business. This is the latest development in the long-running effort by the group to sell the unit. Shares in the German conglomerate rose 5.3% at 1334 GMT on news of the indicative offer for Thyssenkrupp Steel Europe, Germany's largest metal manufacturer with sales of 10.7 billion euro ($12.6 billion) during the last fiscal year. Thyssenkrupp stated that it would carefully examine the offer, "particularly in regard to economic sustainability and the continuation of green transformation at our steel plants". The bid was not disclosed, nor were any financial details. This comes at a time when the German industrial group wants to divest some of its business in order to be leaner and focussed. Thyssenkrupp would have achieved a major success if it sold TKSE to Jindal Steel International. This was after several years of unsuccessful attempts to sell TKSE by the group that makes submarines to car parts. The pension liabilities, which totaled billions of euros, remained a key concern. In a separate announcement, Jindal Steel International said that its offer would ensure steel production in Germany. This included the completion of a "green steel production site" by TKSE at Duisburg and a commitment worth more than 2 billion euros to increase electric arc furnace capacities. Narendra Misra is the director of European Operations for Jindal. He said: "Our goal to preserve and grow Thyssenkrupp’s 200-year legacy, and help transform it Europe's biggest integrated low emission steelmaker." Thyssenkrupp sold a 20% share in TKSE last year to Czech billionaire Daniel Kretinsky with the intention of selling a 30% further stake to create a joint venture that would be 50-50. The powerful union IG Metall criticised this move. It said that Kretinsky did not provide information on his strategic plans in his role as a coshareholder. The EPCG division of Kretinsky declined to comment. Juergen Kerner, Thyssenkrupp’s deputy supervisory Board chairman and senior IG Metall members said that the news was positive and that further discussions should begin as soon as possible.
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Sweden and Finland call for revision of EU's forest climate targets
Sweden and Finland may suffer "dire" consequences in the economy if they have to reduce their forest harvest to meet EU climate targets, both countries warned this week. In order to achieve net zero emissions in the European Union by 2050, Sweden has been asked to increase the amount of CO2 that is bound by forests. Both countries claim they will miss the EU Land Use, Land-Use Change and Forestry targets for 2021-2025 and for 2026-30. They blame climate change for the slower growth of trees and increased demand for wood. The Swedish Prime Minister Ulf Kritersson stated on X on late Monday that the EU's forest policy framework is a problem. If it was not changed, it would lead to unjustified and unreasonable restrictions on Swedish forestry. It is wrong to severely restrict the Nordic forestry in practice. Forests are seen by both environmental and industry groups as an important part of the fight against climate change. Forestry companies stress the benefits of sustainable management, biofuels, and wood as a replacement for fossil fuels, concrete, and plastic. Scientists have warned, however, that monoculture, over-logging and other industrial practices reduce the forest's ability to absorb carbon dioxide and threaten Europe's climate targets. Sweden and Finland, in a letter sent to the President of the European Commission Ursula von der Leyen said that their CO2 targets were unrealistic. Sweden's target was an increase of 4 million tonnes per year by 2030 and Finland's was 3 million tonnes. In a letter, the two countries stated that reduced logging "would have dire consequences for both our economies and labour markets". Around 70% of Finland and Sweden is covered by forests. More than 10% of Sweden’s exports are wood products, and nearly a fifth come from Finland. Over 200,000 people are employed in this sector. (Reporting and editing by Alex Richardson; Simon Johnson)
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JSW Paints bid to acquire up to 75% of Akzo Nobel India is approved by the India Antitrust Watchdog
The Indian antitrust authority said that it had approved the deal for JSW Paints to purchase up to 75% of AkzoNobel's Indian subsidiary. The announcement of the deal in late June comes as Indian paint manufacturers are struggling with increasing raw material costs and increased competition. According to a Geojit Financial Service analyst, after the JSW Paints - Akzo Nobel agreement is completed, it will place the unit in fourth place, by market share, among Asian Paints Berger Paints Kansai and Nerolac, all of which dominate the sector. In recent years, the Indian paints industry has also seen a rise in battles about competitive practices. Grasim Industries' Birla Opus brand was launched in 2024 and began to eat into Asian Paints market share. Later, the company filed a complaint alleging Asian Paints of abuse of dominance in the market. JSW Paints also accused Asian Paints of anticompetitive conduct, but in 2022 the Competition Commission of India dismissed this case, citing that there was no violation of the competition laws. Reporting by Yagnoseni das in Bengaluru, Editing by Shailesh Kuber
Spain's summer 2025 was the hottest ever recorded, according to the state weather agency
This summer, Spain experienced its hottest temperatures since 1961. Climate change caused more than a week of heatwaves that sparked the worst wildfire season in 30 years.
AEMET, the state weather agency, said that the summer of 2025 is 2.1 degrees Celsius hotter than the average for 1991-2020 and surpasses the previous record summer in 2022 by 0.1 degree.
Ruben del campo, AEMET spokesperson, said that in an interview, nine of the ten hottest summers on record in Spain occurred during the 21st Century, and more heat is to come.
"These summers 2022 and 2025 serve as a preview - or spoiler for what may happen at the turn of the century," del Campo stated. "One out of every three days, we've been experiencing a heatwave this summer."
Del Campo stated that Spain will need to adapt to warmer summers and continue to contribute to global efforts to curb climate changes by reducing greenhouse gas emissions.
Spain experienced three heatwaves lasting 36 days in the summer. According to AEMET, a 16-day heatwave that lasted in August was the most intense ever recorded. Temperatures in the southern part of the country reached 45C.
Global warming is accelerating, and countries around the world have experienced record heat in recent years. The summer of 2024 marked the warmest summer in the northern hemisphere, while Britain experienced its hottest summer since 1884.
According to the European Forest Fire Information System (EFFIS), data analysed by, intense heat helped fuel wildfires across the European Union that burned a record 1,03 million hectares.
AEMET reported that temperatures in the inland region of Spain's northwest region, Galicia, where some of the most severe fires occurred, were 3C higher than normal. (Reporting and editing by Ros Russell; Reporting by Charlie Devereux)
(source: Reuters)