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Korea Herald
3 days ago
- Automotive
- Korea Herald
Korean battery-makers under cost pressure as US targets Chinese graphite
Korea's battery industry is bracing for a sharp rise in US manufacturing costs as Washington moves to slap a 93.5 percent anti-dumping tariff on Chinese graphite, with many global supply chains still heavily dependent on China. According to a Bloomberg report on Thursday, the US Department of Commerce has issued a preliminary ruling to apply anti-dumping duties on imports of the key anode material used in electric vehicle batteries. Once imposed, imported Chinese graphite with 90 percent or higher carbon purity — whether natural, synthetic or blended — could face effective tariff rates of up to 160 percent, considering existing countervailing duties. A final determination is expected by Dec. 5. Chinese companies supply over 90 percent of the world's graphite, which makes up about 95 percent of the anode in EV batteries. The new US tariffs could nearly double the material cost in the US. Battery anodes account for about 7 percent of an EV battery's cost, and media reports say the new tariffs could add $1,000 to US-made battery prices, potentially pushing up EV prices. The resulting uncertainty adds pressure to Korean battery-makers expanding their US production lines to qualify for incentives, such as EV tax credits, under the Inflation Reduction Act and the Advanced Manufacturing Production Credit. LG Energy Solution, Korea's largest battery-maker, currently operates three plants in the US, including two through a joint venture, and is constructing four more. Samsung SDI operates two US-based plants, and SK On is building two joint venture factories in addition to its existing US plant. The industry is already under pressure as it awaits a possible early termination of IRA tax incentives this September, which adds further uncertainty to their performance. Shares of Korean battery material producers surged in early Friday trading amid expectations of growing demand for a China-independent anode supply chain. Posco Future M, Korea's leading battery materials supplier, saw its stock price jump by as much as 24 percent on the benchmark Kospi, before settling at 156,300 won ($112) as of 12:15 p.m., up 19 percent from the previous day's close. The company ranked 11th in the global anode market last year with a 1.3 percent share, trailing 10 Chinese firms. Posco Future M reportedly operated its anode production facilities at only around 30 percent capacity by the end of the year, as low-cost Chinese products continued to undercut prices.
Straits Times
10-07-2025
- Business
- Straits Times
DPM Gan plans US visit to discuss tariffs, business opportunities for Singapore
SINGAPORE - Deputy Prime Minister Gan Kim Yong will travel to the US later in July to hold talks with his counterparts in the US administration and to meet business representatives to explore opportunities for Singapore companies. 'This (trip) will allow us to get a better understanding of US concerns, their priorities, their interests, and to explore opportunities that we can work together on to strengthen the bilateral relationship that have so far been mutually beneficial,' he said during a press conference held by the Singapore Economic Resilience Taskforce on July 10. While details of the trip are still being planned, DPM Gan said there are broadly three key objectives that he would focus on during his US visit. The top priority will be to further the discussions on tariffs on pharmaceuticals being contemplated by the US administration. The US is a major destination for Singapore's drugmakers that include American multinationals such as Pfizer and Johnson & Johnson. DPM Gan said he will explore various ways to 'facilitate trade between Singapore and the US on pharmaceuticals'. Singapore is already in talks with the US Department of Commerce on the issue of pharma tariffs . 'As discussions with the US are ongoing, I will not be able to share more details at this point, but I will continue to keep you updated should developments happen, whenever possible,' he said. ' (The) second area is a broader discussion with the US administration, to better understand their priorities, areas of interest, and to see whether there are opportunities for us to strengthen bilateral economic relationship, both on investment as well as trade, and also to look at the technology cooperation between our two countries,' said DPM Gan. 'I think there are many areas that we can discuss from an economic point of view,' he added. The third objective of his visit is to meet private sector representatives – business leaders as well as academics – to have an exchange of views to better understand their thinking, their plans, and to seek opportunities for cooperation. 'There are potential opportunities that our businesses here in Singapore can explore in the US, such as in AI technology and advanced manufacturing,' he said. Responding to a question, DPM Gan said the discussions with the US Department of Commerce is focused on how the two sides can evolve a system of practices that are practical and implementable. 'Because, as you know, pharmaceuticals have a very complex supply chain and a very long supply chain. So how can we make sure that we are able to continue to facilitate the trade between Singapore and the US with regard to pharmaceuticals – this is the focus of the discussion on pharmaceuticals.' He added that Singapore and the US have not yet commenced any discussions on semiconductors – another major Singapore export that is also the subject of a US tariff investigation. 'I think this is something that will be at the back of our mind, and we will probably touch on semiconductors after we have settled the pharmaceuticals discussion with the Department of Commerce ,' he said. DPM Gan, in response to another query, said: 'We certainly look forward to the appointment of the American ambassador here in Singapore so that we can work with him to see how we can continue to further strengthen the mutually beneficial bilateral relationship between Singapore and us.' Dr Anjani Sinha, US President Donald Trump's nominee for ambassador to Singapore, had a US Senate confirmation hearing on July 9 . 'It's not just economics. Our collaboration, our relationship is very broad-based – that includes defence , culture, and people-to-people exchanges. So there are many aspects of collaboration between Singapore and the US that we look forward to working with the new ambassador here in Singapore.'
Yahoo
07-07-2025
- Business
- Yahoo
Crisis in the copper chain: innovation, geopolitics and Australia's role
As demand for clean energy tech rises, the global copper market is facing a supply-demand gap that analysts warn could be near impossible to close if production remains at its current levels. Adding to the market volatility are US president Donald Trump's threatened tariffs, and his executive order to fast-track US exploration and mining of critical minerals, including copper, in international waters. In the face of supply chain uncertainty, countries are prioritising sovereign access to copper. This means targeting new or previously inaccessible deposits, often deeper and more remote than previously seen, while innovators rush to develop technology that could make lower-grade ore economically viable. While Australia is by no means the biggest copper producer (ranking eighth globally in 2024), it is home to the world's second largest copper reserves, making it a key player in any long-term production strategy. With questions over how nations will meet copper demand without triggering further instability, we look at the projects working to keep Australia's supply afloat in an uncertain time. Currently, copper demand sits at around 25 million tonnes (mt) per year. However, estimates suggest that the market trajectory is pushing towards a demand of 50mt by 2050. Ollie Brown, an economist at GlobalData, told Mining Technology that this demand, similar to other critical minerals, is primarily driven by electric vehicles, grid renovations and renewable energy initiatives. Amid growing demand, he says the global copper market is defined by 'lagging supply', while Trump's threatened tariffs from the beginning of this year are 'rattling global prices.' While Trump has not set a levy against copper specifically, he has made it clear that he wants to cut back on imports and increase domestic production. In February 2025, he commissioned the US Department of Commerce to investigate potential national security risks of copper imports ─ the first step towards potentially curbing these goods. While the tariffs and their impacts remain conjecture at this stage, Nicolas Psaroudis, APAC economist at GlobalData, told Mining Technology the threat of restrictions contribute to uncertainty and price volatility. 'Internationally, export restrictions could disrupt global copper supply chains,' he explains. 'A sudden drop in supply could tighten global scrap availability, drive up international prices, and strain smelters already facing concentrate shortages.' If nothing else, the situation has proven an unwelcome reminder of the fact that global mineral supply chains remain vulnerable to the whims of trade tensions and has added to calls to bolster domestic production. Lawrence M. Cathles, professor of earth and atmospheric sciences at Cornell University, says Western nations need to be more willing to expand operations to avoid market dependence. 'It's not enough to say copper is important while refusing to do the work,' says Cathles. 'We don't want anybody to control any major commodity, but just not wanting that isn't enough. You've got to have policies and plans in place to avoid undesirable situations – and part of that is mining in our own territory.' Yet while Australia has no shortage of copper ore, the issue lies in accessing it. According to Dan Wood, exploration geologist and University of Queensland (UQ) adjunct professor, one of the main challenges is finding copper ore that's viable for development. 'Almost all of the large deposits theoretically available to replace one of the top-ten producing mines that will close in the early-2050s have all failed at least one mining feasibility study,' he says. These failures are mainly due to low ore grades and remoteness, as well as low copper prices. Even if prices rise enough to make low-grade copper development viable, Wood cautions that oversupply could trigger a feedback loop: more copper brings prices down, undoing the gains. To make the most of Australia's deposits, Wood says more should be done to access deeper ore bodies. One potential method is caving, when the rock is 'undercut' or drilled beneath the surface and recovered as it falls. While the practice is not uncommon - for instance, it is used in Sweden for iron ore - little is known about how to safely mine beyond a certain depth, and education and training around the method remains low. 'Caving isn't uncommon, but the scary thing is there are so few people left in the world who really understand it,' Wood states. 'If you go deeper than around 1.4 kilometers, there isn't much data on the rock stressors. Take Rio Tinto's Resolution deposit in Arizona. You have to go down nearly two kilometers before you reach the top of the ore, and the rocks that deep are nearly 100 degrees centigrade.' Initiatives to train the next generation of caving miners do exist - for instance UQ has partnered with Rio Tinto and the University of Mongolia to scale up caving expertise at Rio's Oyu Tolgoi mine in Mongolia. However, Wood warns the process is a long one. 'We're looking at a 20-year journey to end up with a cohort of properly trained and, most importantly, experienced caving engineers,' he says. 'This skills gap is serious and unless addressed will be a major drag on future copper supply towards 2050.' Aside from education, technology may provide another route to increasing supply, with innovators looking to make low-grade ores viable development options. One project, a collaboration between UQ and start-up Banksia Minerals Processing (BMP), is developing a more environmentally friendly means of extracting copper from low-grade resources. The process relies on hydrometallurgy rather than pyrometallurgy (water rather than heat) to extract copper from the ore; dissolving, purifying and then recovering metals from liquid using electricity. While the process itself isn't new, having been practiced in the late 1970s in the US, the team had a breakthrough in the purity of the copper produced, making it more viable for commercial deployment. The method also addresses another issue plaguing copper miners - that of impurities. Currently, smelters have strict regulations on how many impurities can be processed alongside the copper ore (with arsenic a particularly problematic contaminant). James Vaughan, head of the university's Hydrometallurgy Research Group, explains the limits are getting increasingly difficult to meet. 'Miners are having to cherry pick ore bodies, and it's a significant limitation on the amount of material that can actually be pulled out of those mines,' he said. 'That's a problem when we need more and more copper." While the typical smelting method sees arsenic exiting as a gas that can be harmful to both workers and the environment, using a water-based method stores the arsenic in a stable, and disposable, form. By addressing this challenge, Leigh Staines, managing director of BMP, says the new technology could unlock copper resources previously deemed unfeasible. 'Our hypothesis is that more than half of known copper resources out there are restricted from development due to those smelter intake limitations,' she says. 'By enabling a feasible pathway for processing of those resources, we're then able to unlock the commercial viability of bringing that supply to market.' The tech can be integrated into modular plants that are anticipated to be far cheaper to construct than traditional smelters ─in the order of hundreds of millions rather than billions ─ and running on an estimated 50% less energy. As a result, the team say the project could pave the way for an economically viable onshore processing option, and bolster Australia's supply chain independence. 'We see a real opportunity from a sovereign supply perspective – gaining access to not only copper itself but the by-products from copper concentrate,' Staines says. 'In the longer term, if this takes off, I really do think it will become the new norm.' Yet while innovations such as these show Australia is already on its way to unlocking copper's potential, another persistent concern is that without sufficient funding, even the best tech won't close the gap. On the global stage, Arthur F. Thurnau, professor of mineral resources at the University of Michigan warns the West is underfunding its mining workforce. 'Governments in Australia, Canada, the EU and the US do not seem to fully appreciate the magnitude of the difference in education and training between these regions and China,' he says. 'Specifically, in the fields of geology and mining, China has more faculty and graduate students within a single university (such as the China University of Geosciences Beijing), than the sum of Australia, Canada, the EU and the US' Without closing the gap, Thurnau warns that Western nations will be forever trying to catch up to China. ' For Cathles, government attitude is also an issue, though he points more towards a lack of realism in the demand for copper in the path to net zero. 'If the goal is to electrify everything and thereby dramatically increase copper demand - double or even triple it – you can't just suddenly mine more because the mining infrastructure cannot be expanded quickly,' he says. Instead, he calls for long-term planning: building a skilled workforce and pursuing a more pragmatic clean energy transition that reduces pressure on supply chains. There may be promising alternatives, he adds, such as battery chemistries that use less copper, pairing renewables with backup systems like gas-powered plants, or a focus on rolling out hybrid rather than fully electric vehicles. While these options may mean it takes longer to reach net zero, Cathles said they lessen the strain on copper production. 'Let's be sensible,' he says. 'We need grounded policies. We shouldn't place sudden, unrealistic demands on sectors that we know can't respond quickly.' Whether through education, innovation, or a more measured path to net zero, one thing is clear: the world must confront the widening gap between copper demand and supply. As Cathles and Thurnau both emphasise, the solution won't come from mining alone. It will require strategic investment in human capital, realistic energy policies, and a willingness to adapt. Without these, Western nations, including Australia, risk falling behind - not only in production capacity, but in their ability to lead a sustainable energy transition. "Crisis in the copper chain: innovation, geopolitics and Australia's role" was originally created and published by Mining Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
United News of India
03-07-2025
- Business
- United News of India
US treads liberalization by lifting chip software curbs on China
New Delhi, July 3 (UNI) In a moderate trade move, the United States revoked its export restrictions on key chip design software providers. Three major players of the chip design segment, Siemens AG, Synopsys, and Cadence, said that they received letters from the US Department of Commerce regarding the lifting of the restrictions. All three chip majors are contributing to more than 80% of the Chinese EDA (Electronic design automation) market. Synopsys confirmed this information through their official website, stating that they had received formal orders from the Bureau of Industry and Security of the US Department of Commerce. The restrictions were imposed by the United States in late May and directly blocked the trade of EDA tools, which were an integral part in semiconductor design. EDA or Electronic Design Automation tools are built from specialized software and hardware components. These are extensively used by engineers for designing, analyzing, stimulating, and verifying electronic systems and circuits. This rollback of trade-related restrictions will now allow the EDA or Electronic Design Automation companies to provide their services in China. EDA software is the foundational base of semiconductor design systems. Without proper access to services offered by the three major EDA companies, the Chinese chip design market capabilities have reduced significantly. The rescinding of restrictions on China seems to be a major opportunity for chipmakers who rely on cross-border tech collaboration and trade. Moreover, with the early signs of trade stabilization, further rollbacks of previous restrictions are expected in the upcoming weeks. UNI SAS RN
Daily News Egypt
28-06-2025
- Business
- Daily News Egypt
Digital services tax sparks new trade dispute as US halts talks with Canada
US President Donald Trump on Friday halted all trade negotiations with Canada over Ottawa's new digital services tax, which will affect American tech giants. Trump described the tax as a 'blatant attack' on the United States, escalating political tensions amid his ambitions to potentially annex Canada. 'Based on this egregious tax, we are hereby ending all trade discussions with Canada, effective immediately,' Trump wrote on his Truth Social platform. 'We will be notifying Canada of the tariffs they will be paying to do business with the United States within the next seven days.' Trump has repeatedly expressed his opposition to digital services taxes during trade negotiations with other countries, viewing them as a 'non-tariff trade barrier.' Canada's new digital tax is scheduled to take effect next Monday and will be applied retroactively from 2022. In response, Canadian Prime Minister Mark Carney said Friday that he still wishes to continue negotiations with the United States. 'We will continue to conduct these complex negotiations in the best interest of Canadians. These are negotiations,' he told reporters. US Treasury Secretary Scott Bessent commented on CNBC on Friday, stating, 'We knew it was coming, and we were hoping it would not be implemented.' He added, 'We think it's fundamentally unfair to make it retroactive. This is a Trudeau-era issue, so we were hoping as a sign of goodwill that the new Carney administration would at least hold off on this tax during trade negotiations. But apparently, they did not.' Bessent indicated that if the Canadian government proceeds with the tax, Trump is prepared to impose higher tariffs on all Canadian goods, without specifying the rate. Canada is the largest buyer of American goods, importing $349bn worth last year, according to US Department of Commerce data. In turn, Canada exported $413bn in goods to the US, making it the third-largest source of foreign goods for the American market. The imposition of higher tariffs could provoke retaliatory measures from Canada, which some estimates suggest would cause economic harm to both nations. What is the Digital Services Tax? The government of former Prime Minister Justin Trudeau passed Canada's Digital Services Tax Act in June 2024, with its rules coming into effect the same month. The federal tax applies to large foreign and domestic companies that meet two specific criteria: total global revenues of €750m or more, and annual earnings exceeding $20m from Canadian sources. The legislation imposes a 3% tax on digital services revenue exceeding $20m. It applies retroactively to January 1, 2022, which according to some estimates, means Ottawa could collect billions of dollars. Taxable revenues include earnings from online marketplaces, digital advertising, social media, and user data, which will primarily affect US tech giants such as Amazon, Apple, and Meta Platforms. Pierre Poilievre, leader of the Conservative Party of Canada, wrote in a social media post that he hoped both sides would return to the negotiating table: 'I am disappointed that trade talks have stalled. Hopefully they will resume soon.' Several Canadian companies and groups have expressed concern about proceeding with the tax, fearing an escalation of trade tensions with the US Why is Canada Imposing This Tax? A primary reason is to increase revenue. The Parliamentary Budget Office estimated last year that the tax would generate more than C$7bn over five years. The Liberal Party of Canada, under former Prime Minister Justin Trudeau, had promised to introduce the tax during the 2019 federal election. However, its implementation was delayed for several years as a number of countries hoped to reach a unified international digital tax plan. As delays continued, Canada decided to proceed with its own plan. In addition to raising revenue, Ottawa is promoting the tax as a way to modernise its tax system to include profits generated within Canada by foreign companies that do not have a physical presence in the country, according to the Toronto Star. What is the US Position on the Tax? The United States has strongly opposed the tax from the outset because it primarily affects American tech giants. US officials have argued that the tax discriminates against American companies. In a rare display of unity, both Democrats and Republicans in Congress have rejected Canada's plan and have been united in their criticism. Early in his second term, Trump had threatened to impose a 25% tariff on all Canadian exports, with the possibility of raising it further for some products. To date, most Canadian goods remain exempt from these tariffs, provided they comply with the United-States-Mexico-Canada Agreement (USMCA), which Trump negotiated during his first term. The most notable exceptions have been a 25% tariff on all foreign cars and parts, steel, and aluminum. Trump later doubled the tariffs on steel and aluminum imports to 50%. Canadian goods not compliant with the USMCA faced combined tariffs of 50%. In response to the auto tariffs, Canada imposed a 25% tariff on non-compliant US cars. It also retaliated against Trump's original steel and aluminum tariffs by imposing a 25% tariff on nearly $43bn of US goods, including alcoholic beverages, sports equipment, and home appliances. Despite Trump's latest tariff threats, US markets ended Friday on a high note. The S&P 500 and Nasdaq, which dipped slightly after Trump's post, rose 0.52% to close at record highs. The Dow Jones Industrial Average also climbed 432 points, or 1%. Why is Canada Not Delaying the Tax Amid Trade Tensions? Although Canadian and American business groups, organisations representing US tech giants, and several US lawmakers have signed letters in recent weeks calling for the tax to be repealed or at least postponed, Canadian Finance Minister François-Philippe Champagne has stated that the law has been approved by Parliament and that Canada will move forward with its implementation. The Canadian Chamber of Commerce has argued that the tax could increase costs for consumers and risks 'damaging our mutually beneficial trading relationship with the United States.' 'In an effort to get trade talks back on track, Canada should immediately offer to repeal the Digital Services Tax in exchange for the removal of tariffs from the United States,' Goldy Hyder, the Chamber's President and CEO, told Bloomberg. How Could the United States Respond? Trump said he would withdraw from bilateral trade negotiations because Canada intends to proceed with the digital services tax, calling the move 'a direct and blatant attack on our country.' This has cast doubt on whether a 30-day deadline to reach an agreement in the trade dispute can be met. The previous administration of President Joe Biden also opposed the tax but sought to resolve the dispute differently. In August 2024, it requested dispute settlement consultations with Canada under the Canada-United States-Mexico Agreement (CUSMA). The US has said that American companies are obligated to pay Ottawa $2bn under the digital services tax. In a statement issued in February, Trump said, 'America alone should be allowed to tax American companies.' In response to the Canadian rules, tech giant Google is imposing an additional 2.5% fee on advertisements shown in Canada, effective October 2024. Google stated that the surcharge, named the 'Canada DST Fee,' will cover 'a portion of the costs of complying with Canada's DST legislation.' Do Other Countries Apply Similar Taxes? Yes. France, Italy, Spain, and the United Kingdom, among others, all have such tax systems. According to the Tax Foundation Europe, about half of the European OECD countries have announced, proposed, or implemented a digital services tax. The United States has met these proposals with threats of retaliatory tariffs. France's Council of State, which advises the government on draft laws, has referred the country's digital services tax to the Constitutional Council for review, marking the first constitutional challenge to a DST since the legislation was passed in 2019.
