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Indian Express
17 hours ago
- Business
- Indian Express
Tariff Tracker, June 2: Renewed US-China spat brings fears of rare earth shortage to the fore
Dear reader, Last week, US President Donald Trump's tariffs were held invalid by a US trade court, and this order was then stayed by an appeals court, allowing things to persist as they are. We are now entering the third month since his 'Liberation Day' tariff announcements, which allowed the US to charge a 10% baseline tariff on all trading partners, and country-specific rates on those countries with which the US has maintained trade deficits. He subsequently announced a pause on the latter for 90 days. Trump's goal all along has been to bring the countries of the world to the bargaining table to seek trade deals with the US. His claims of 90 trade deals within 90 days, however, may have been far more ambitious than originally imagined. Thus far, the US has finalised a trade agreement with the UK, has engaged in talks with India with a view towards a staggered trade agreement, and will meet the EU over the coming weeks to finalise a trade agreement. Since his return to the White House, Trump has repeatedly singled out China for refusing to play ball. He slapped a 10% fentanyl tariff on China (currently at 20%) and increased US tariffs on Chinese goods to an eye-watering 145% by early April. China has responded at every turn, restricting rare earths exports through an elaborate licensing system, citing a national security risk, and taxing US exports of coal and Liquefied Natural Gas (LNG). So, when the two countries announced on May 12 that they had found a common ground, investors and markets worldwide heaved a sigh of relief. The truce had reduced mutual tariffs by 115% and was set to last 90 days. However, the waters are choppy again, and this weekend, both countries have accused each other of not honouring the truce. China's Commerce Ministry on Monday (June 2) accused the US of 'seriously violating' the truce the two nations had concluded in Geneva last month. This follows Trump's claim on Friday (May 30) that China had 'totally violated' the agreement, over American concerns over the sluggishness in clearing rare earth exports from China. Rare earth metals, or rare earth elements (REEs), are a group of 17 chemical elements on the periodic table, with similar chemical properties and silver-coloured in appearance. Despite their name, REEs are not as rare. However, it is unusual to find concentrated and economically mineable deposits of REEs, despite their relative abundance compared to silver, gold or platinum. And crucially, China holds unparalleled expertise in refining REEs compared to other nations. The rare earths sought by the US are vital in the manufacture of high-value goods, ranging from everyday items like smartphones and electronic displays, to those in the fields of defence and clean energy. China has held indisputable dominance over rare earths since the 1990s, supplying 85-95% of global demand. China has weaponised rare earths exports in the past, restricting these exports to Japan in 2010 over a fishing trawler dispute, and more recently to the US between 2023 and 2025. And on April 4 this year, China announced another set of rare earth restrictions following Trump's 'Liberation Day' tariff announcements. While the presence of smuggling and alternate suppliers helped to arrest the threat in the past, such a move may not be viable now. On May 22, economist Alan Beattie wrote in The Financial Times that the April 4 restrictions by China involve finished items, specifically magnets, which are currently made only by a few Chinese companies. Alternatives to China do not currently exist, which has increased the prices of rare earths in the interim. This round of export controls relies on end-user licensing requirements for materials that can be used for both civilian and military purposes, potentially affecting electric vehicles and F-35 fighter jets. He noted that the US was especially vulnerable, given its limited attempts to increase rare earth manufacturing and processing, and retaining minimal stockpiles of critical minerals. 'Trump has risked a geoeconomic war with China without any discernible attempt to prepare or even assess the dangers,' Beattie warned. Supply chain shortages are already being reported worldwide. Since April, rare earth exports from China have halved, according to a Reuters report, even as companies contend with the vague and tedious application process for permits. American automakers have been the hardest hit, The New York Times reported on Monday. Rare earths are an important component of the magnets for the electric motors that run brakes, steering and fuel injectors. Magnets are also used in the motors in luxury car seats, as well as factory robots. The report cited executives warning of rollbacks in automobile production in the midwestern and southern states over the coming weeks. In India too, automakers have expressed fears of having to shut production within days if the Indian government does not intervene, The Indian Express reported last month. China has now alleged that the US imposed several restrictions against it, including AI chip export control guidance, limiting sales of chip design software – electronic design automation (EDA) – to China, and announcing the revocation of visas for Chinese students, the ministry said. 'The US has continuously provoked new trade frictions, exacerbating uncertainty and instability in bilateral economic and trade relations,' the Commerce Ministry said. 'Instead of reflecting on its own actions, it unjustly shifts blame, baselessly accusing China of violating the consensus, which gravely deviates from the facts. China firmly rejects these unwarranted accusations.' On Sunday, China also accused the US of trying to 'sow division', following comments by US Defence Secretary Pete Hegseth at a defence conference in Singapore. Hegseth described China as an 'imminent' threat, and said China was 'credibly preparing to potentially use military force to alter the balance of power in the Indo-Pacific', even preparing for 'the real deal' of invading Taiwan. 'Hegseth deliberately ignored the call for peace and development by countries in the region, and instead touted the cold war mentality for bloc confrontation, vilified China with defamatory allegations, and falsely called China a 'threat',' the Chinese Ministry of Foreign Affairs said. Trump has repeatedly expressed interest in connecting with Chinese President Xi Jinping over a call to iron out the differences, something which has thus far not materialised.
IOL News
20-05-2025
- Business
- IOL News
ASP Isotopes to acquire Renergen in strategic merger for critical materials
Renergen is pioneering the future of energy. With a focus on Liquefied Natural Gas (LNG) and Liquefied Helium (LHe), iyt is at the forefront of driving positive change in the energy sector. Image: Supplied Renergen's share price rocketed 44.7% on Tuesday following the announcement of one of the most surprising deals on the JSE this year, the buyout offer for South Africa's only onshore gas production company by Nasdaq-listed ASP Isotopes, to create a merged company focused on globally sought-after critical materials. ASP Isotopes, which only last month indicated it wished to do a secondary listing on the JSE later this year, has made a firm share-for-share offer to acquire 100% of the shares in Renergen, by way of a scheme of arrangement or standby general offer. Renergen's shares traded at R10.13 on the JSE Tuesday, up 44.7%. In the US, ASPI's share price fell 10.7% to $6.71. Renergen's market capitalisation was R1.09 billion on the day. 'This is an exciting step for ASP Isotopes. With the imminent spin-out of QLE, I have been considering the expansion of the ASP Isotopes business, and this opportunity is the perfect fit for us,' said ASP Isotopes chairman and CEO, and QLE (Quantum Leap Energy) chairman and CEO Paul Mann in a statement. He said both isotopes and helium were viewed by many governments as critically and strategically important materials. 'The combination of these two companies will create a company with huge strategic value and a vital part of a fragile supply chain enabling so many industries," said Mann. Renergen CEO Stefano Marani said after a tumultuous year and a half (that included the first helium production and delivery to a customer), he was excited about the combined prospects of the new company and its future access to the US investor base, who have a deep understanding of critical minerals, as well as oil and gas. Marani said this access has 'for the longest time been the final critical ingredient required to unlock the Virginia Gas Project.' 'In joining our two companies, not only do we get this, but even more exciting is the expansion of the business horizontally across our key helium customer bases of nuclear, healthcare, semiconductors, and rocketry,' he said. He said that as the world became more insular, critical materials were quickly becoming the most sought-after commodities, and the merger would place ASP Isotopes f"ront and centre". 'Offering customers a fully integrated supply chain reduces a significant amount of risk for them and makes our offering incredibly valuable," said Marani. ASP Isotopes said the goal would be to generate earnings before interest, tax, depreciation, and amortisation of more than $300 million by 2030. The transaction had received support from 35% of Renergen's shareholders, and the transaction was expected to close in the third quarter, ahead of the planned spin-off of QLE. ASP Isotopes uses South African research and technology to enrich isotopes that can be used in the medical, semiconductor, and nuclear industries. It has been listed on the Nasdaq since 2022, with a market capitalisation of $400 million (R7.5bn). ASP Isotopes produces and commercialises enriched Carbon-14 (C-14), Silicon-28 (Si-28), and Ytterbium-176 (Yb-176). These isotopes are enriched via two processes: Aerodynamic Separation Process (ASP Technology) and Quantum Enrichment (QE Technology). Currently, Russia dominates global isotope production, with about 85% of stable isotopes being produced there. Since 2022, isotope availability has been intermittent because, given Russia's dominance, the world was susceptible to global disruptions of industrial production, with many industries and defence capabilities facing existential risk without a secure isotope supply. In October 2024, ASPI and TerraPower, which is founded and backed by Bill Gates, entered into a term sheet. TerraPower was expected to fund a HALEU production facility in South Africa and purchase all HALEU produced over a 10-year period. In November 2024, ASPI Isotopes signed a memorandum of understanding with the South African Nuclear Energy Corporation (Necsa) to collaborate on research, development, and commercial production of advanced nuclear fuels. Visit:
ME Construction
16-05-2025
- Business
- ME Construction
BESIX secures Marine contract at Sohar Port and Freezone
Infrastructure BESIX secures Marine contract at Sohar Port and Freezone By The scope of work includes constructing a Liquefied Natural Gas (LNG) jetty, implementing shore protection measures, and developing an advanced drainage network BESIX recently secured an award for a marine infrastructure project at SOHAR Port and Freezone in Oman. The project award sees BESIX's return to the Omani market and marks the expansion of its regional activities beyond the UAE, Saudi Arabia, and Qatar. The project scope includes constructing a Liquefied Natural Gas (LNG) jetty, implementing shore protection measures, and developing an advanced drainage network. The contract will be executed by BESIX, leveraging its marine expertise and record in the Sultanate. The firm says it has completed various marine projects in the region, including the marine works at the Duqm refinery and Sultan Qaboos Port, the seawater intake system in Barka, and earlier developments at Sohar Port. Construction is scheduled to commence in summer 2025 and is expected to last 16 months. The new LNG jetty will be a crucial component of the infrastructure supporting the Marsa LNG project, which aims to be the Middle East's first fully solar-powered LNG bunkering hub. By facilitating the safe and efficient transfer of cleaner marine fuel, the jetty contributes significantly to the project's broader sustainability goals. Emile Hoogsteden, CEO, SOHAR Port said, 'Partnering with BESIX on this strategic development reinforces our commitment to advancing sustainable energy solutions in the region. The new LNG jetty is a cornerstone of the Marsa LNG project, and it exemplifies the kind of forward-thinking infrastructure that positions SOHAR as a leader in green maritime logistics.' Peter Lembrechts, General Manager, BESIX Middle East added, 'This contract represents the trusted collaboration we first established with Sohar Port years ago. We look forward to delivering this project with the same focus, reliability, and excellence that define BESIX across Oman and the Gulf.' BESIX has been delivering jetties worldwide for several decades. Their portfolio includes jetties such as the South Hook Terminal in the UK, Wheatstone LNG in Australia, LNG Kitimat in Canada, the LNG import terminal in Bahrain, and Ain Sokhna LNG in Egypt.
Fibre2Fashion
15-05-2025
- Business
- Fibre2Fashion
Aramco inks 34 deals with US firms worth ~$90 bn
Aramco, one of the world's leading integrated energy and chemicals companies, yesterday announced the signing of 34 Memoranda of Understanding (MoUs) and agreements, with a potential total value of approximately $90 billion, with major US companies, through its Aramco Group Companies. The MoUs and agreements cover collaborations and partnerships relating to a range of Aramco's activities, including Liquefied Natural Gas (LNG), fuels, chemicals, emission-reduction technologies, Artificial Intelligence (AI) and other digital solutions, manufacturing, asset management, short-term cash investments, and procurement of materials, equipment, and services. The MoUs and agreements aim to build on the longstanding relationship between Aramco and US companies, enhance shareholder value, and foster further collaboration and innovation in the energy sector and beyond. Aramco signed thirty-four MoUs and agreements worth ~$90 billion with major US firms to boost collaboration across LNG, fuels, chemicals, AI, and services through its Aramco Group Companies. Key partners include ExxonMobil, Amazon, NVIDIA, Qualcomm, and Sempra. The deals aim to drive innovation, expand Aramco's portfolio, and strengthen its longstanding ties with the US. Amin H. Nasser, Aramco President & CEO, said: 'Yesterday's announcements show the breadth and depth of Aramco's long history of partnerships with US companies since the first discovery of oil in the Kingdom more than 90 years ago. Our US-related activities have evolved over the decades, and now include multi-disciplinary R&D, the Motiva refinery in Port Arthur, start-up investments, potential collaborations in LNG, and ongoing procurement. As Aramco pursues an ambitious value-driven growth strategy, we believe that aligning with world-class partners supports further development of our operations, strategic diversification of our portfolio, industrial innovation, and ongoing capability development within the Kingdom.' The MoUs and agreements signed by Aramco, and its Aramco Group Companies, are as follows: Downstream Honeywell UOP: MoU related to technology licensing for an aromatics project. Motiva: MoU related to an aromatics project in Port Arthur, subject to a final investment decision. Afton Chemical: MoUs related to development and supply of chemical fuel additives in pipelines and retail fuel offerings. ExxonMobil: MoU related to evaluating a significant upgrade to the SAMREF refinery and expanding the facility into a world-class integrated petrochemical complex. Upstream Sempra Infrastructure: MoU related to previously announced HOA regarding liquified natural gas (LNG) equity and offtake stake in Port Arthur LNG 2. Woodside Energy: Collaboration Agreement to explore global opportunities, including an equity interest and LNG offtake from the Louisiana LNG project. Additionally, both companies are exploring opportunities for a potential collaboration in lower-carbon ammonia. NextDecade: Final Agreement to purchase 1.2 million tonnes per annum of LNG for a 20-year term from Train 4 of the Rio Grande LNG Facility, subject to certain conditions, including a positive final investment decision of Train 4. Technology & Innovation Amazon/AWS: non-binding Strategic Framework agreement related to collaboration on digital transformation and lower-carbon initiatives. NVIDIA: MoU related to developing advanced Industrial AI computing infrastructure, establishing an AI Hub and AI Enterprise platforms, an Engineering and Robotics Center of Excellence, training and upskilling, and collaborating with NVIDIA's startup ecosystem. Qualcomm: MoU with Aramco Digital that aims to explore entry into a strategic collaboration that will focus on key digital transformation use cases, leveraging Aramco Digital's 450 MHz 5G industrial network to connect intelligent edge devices with on-device AI capabilities, including smartphones, rugged industrial devices, robots, drones, cameras, sensors, and other IoT devices. Technical Services Procured Materials and Services: MoUs were signed to reflect the existing relationships with strategic US suppliers: SLB, Baker Hughes, McDermott, Halliburton, Nabors, Helmerich & Payne, Valaris, NESR, Weatherford, Air Products, KBR, Flowserve, NOV, Emerson, GE Vernova, and Honeywell. These suppliers provide high-standard materials and professional services that help support Aramco's projects and operations. Strategy & Corporate Development Guardian Glass: MoU to localize specialty glass manufacturing for architectural applications in the Kingdom of Saudi Arabia. Finance Wisayah asset management agreements with PIMCO, State Street Corporation, and Wellington. Agreements for short-term cash investments through a unified investment fund, the 'Fund of One,' with BlackRock, Goldman Sachs, Morgan Stanley, and PIMCO. Note: The headline, insights, and image of this press release may have been refined by the Fibre2Fashion staff; the rest of the content remains unchanged. Fibre2Fashion News Desk (HU)
Business Standard
14-05-2025
- Business
- Business Standard
Green Power International signs an agreement with Nigeria-based BUA Group to build a 20MW gas power plant
VMPL New Delhi [India], May 14: Green Power International Pvt. Ltd. has entered into an agreement with BUA Group. As a part of this agreement, Green Power International will develop a 20 MW gas-based captive power plant to supply reliable, clean energy to BUA's upcoming Liquefied Natural Gas (LNG) production facility in Nigeria. The partnership strengthens BUA's commitment to environmental protection and projects it as a responsible and forward-looking industry leader. The gas power plant will be developed on a turnkey Engineering, Procurement, and Construction (EPC) basis and will play a critical role in powering core processes of the LNG facility. This will boost Nigeria's energy availability and reduce its reliance on imported fuels. With natural gas being a cleaner alternative to diesel-based generation, the project is aligned with Nigeria's energy transition roadmap and BUA Group's sustainability objectives. To ensure the long-term success of the project, Green Power International will also deliver a comprehensive two-year Operations & Maintenance (O & M) package. This will include performance monitoring, preventive maintenance, and technical support to maintain optimum plant uptime and efficiency. The plant will be located at the LNG project site in Nigeria and is expected to be operational by early 2026. Green Power International will leverage advanced gas engine technology from MWM (a German company)-- its long-standing partner of over 20 years. MWM's expertise in high-efficiency distributed energy solutions will help deliver clean and reliable power for BUA Group's LNG operations. Sharing his thoughts on the partnership, Ashu Jain, Executive Director, Green Power International, said, "This project reaffirms Green Power International's expertise in providing the best clean energy solutions, not only in India but on a global scale. It is an opportunity to showcase GPI's reliable, efficient, and sustainable energy solutions, highlighting the trust global players place in Indian engineering and project execution capabilities." Abdul Samad Rabiu, Founder and Executive Chairman, BUA Group, stated, "This project is a major push in advancing our efforts to transition to a clean energy ecosystem. We believe in Green Power International's experience in delivering world-class gas power solutions, and it aligns well with our vision for the LNG facility. We look forward to this partnership." As the world moves toward a cleaner and sustainable future, such projects will open new avenues for global collaboration between African and Indian solution providers. This will lay the foundation for cleaner fuel use and improved energy access in underserved areas.
