Media

[cosors]

!

"Factbox: Graphite producers doing deals with automakers and battery groups​

Reuters
June 21, 20238:06 AM GMT+2 Updated 27 min ago

LONDON, June 21 (Reuters) - Automakers are rushing to lock in graphite supply from outside dominant producer China as mined graphite demand for electric vehicle (EV) batteries outpaces other uses.

Below are details of some Western companies producing, or planning to produce graphite, and their deals with auto makers and battery producers."
https://www.reuters.com/business/au...ls-with-automakers-battery-groups-2023-06-21/


and!

Analysis: Auto firms race to secure non-Chinese graphite for EVs as shortages loom​

By Eric Onstad
June 21, 20238:05 AM GMT+2Updated 32 min ago

[1/4]A worker looks on at the Niska trial graphite mine, owned by Talga Group, which aims to launch commercial production in 2024, in Norrbotten, northern Sweden, in this handout image taken in August 2022 and obtained by Reuters on June 15, 2023. T. B./Handout via REUTERS

[3/4]People work at a plant, owned by Talga Group, for processing graphite into anodes for electric vehicle batteries, in Lulea, northern Sweden, in this handout image from April 2022 and obtained by... Read more

• EVs to account for more than half of mined graphite demand
• Automakers seek supply from new Western graphite miners
• Graphite biggest component by weight in EV battery
• FACTBOX: Graphite companies and offtake deals read more

LONDON, June 21 (Reuters) - Automakers, including Tesla and Mercedes, are rushing to lock in graphite supply from outside dominant producer China, as demand for electric vehicle (EV) batteries outpaces other uses for the mineral for the first time due to soaring EV sales.

Auto firms have been slow to plan for graphite shortages, focusing mainly on better-known battery materials lithium and cobalt, even though graphite is the largest battery component by weight.

Now, car makers are knocking at the doors of new producers, such as Madagascar and Mozambique, as this year EVs are forecast to account for more than 50% of the natural graphite market for the first time, according to consultancy Project Blue.

Shortages of material produced outside of China will be even more acute as legislation in the United States and Europe aims to cut reliance on China for critical minerals.

"Automakers are in a real bind because there's been no investment in Western graphite," said Mark Thompson, founder and managing director of Australia's Talga Group Ltd (TLG.AX), which plans to launch production next year in Sweden.

Each EV on average needs 50-100 kg of graphite in its battery pack for the anodes, the negative electrodes of a battery, about twice the amount of lithium.

The main use of graphite has been in the steel industry, but EV sales are due to more than triple by 2030 to 35 million from 2022, BMO Capital Markets forecasts.

Graphite shortages are expected to rise in coming years, with a global supply deficit of 777,000 tonnes expected by 2030, Project Blue projections showed.

About $12 billion of investment is needed by 2030 in graphite and 97 new mines required by 2035 to meet demand, Benchmark Mineral Intelligence (BMI) said in a report.

China produces 61% of global natural graphite and 98% of the final processed material to make battery anodes, BMI said.

Reuters Graphics

SUPPLY DEALS​

Talga group is seeking to supply automakers, such as Tesla, Toyota and Ford, as well as battery producers such as Sweden's Northvolt, Thompson told Reuters.

Tesla Inc (TSLA.O) and Northvolt did not reply to a request for comment while Toyota Motor Corp (7203.T) and Ford Motor Co (F.N) declined to comment.

Talga has already signed non-binding supply agreements with two European battery makers that have links with Mercedes-Benz (MBGn.DE), Stellantis (STLAM.MI) and Renault (RENA.PA).

Mercedes said it was diversifying the sourcing of raw materials, including graphite, and "have been in dialogue with various suppliers for some time".

"All the car companies are now scrambling to understand how to source battery materials at the mine level," said Brent Nykoliation, executive vice president of NextSource Materials.

NextSource (NEXT.TO), which in April commissioned a mine in Madagascar, is also in talks with auto companies, but said the details were confidential.

Tesla has been at the forefront in securing graphite, having already agreed deals with Syrah Resources (SYR.AX), which operates a mine in Mozambique, and with Magnis Energy Technologies (MNS.AX).

Syrah is building a U.S. processing operation, one of a handful of plants being built outside of China that can transform graphite for battery use.

NextSource is building a processing plant in Mauritius while Talga plans to construct a factory in Sweden.

CHINA DOMINATES​

Western processing operations, however, will grow slowly.

"China is still incredibly dominant in the graphite space and we anticipate they will maintain dominance for years to come," said George Miller, senior analyst at BMI.

By 2032, China will still control 79% of production of a type of processed graphite - uncoated spheroidised purified graphite - compared to 100% in 2022, according to BMI.

This Chinese influence on the market may make it difficult for automakers who want to qualify for EV subsidies under the U.S. Inflation Reduction Act.

The IRA requires certain high percentages of battery components to be produced in the United States, or in a country with which it has a free trade deal.

The European Union has proposed legislation that aims to reduce dependency on any one country for any key raw material to 65% by 2030.

Agreeing graphite supply deals is complex, requiring extensive safety testing for material going into each model of EV that can take up to three years.

CARBON FOOTPRINT​

Western auto groups are focusing on deals with graphite mines partly because it is around 55% less carbon intensive to produce anodes with natural material compared to synthetic graphite made from petroleum products.

Natural graphite anodes tend to be cheaper and are beneficial for cell capacity and power output, allowing cars to run further distances before charging.

There is also expected to be competition with the steel industry, said analyst Reitumetse Chalale at Project Blue.

Another anode ingredient is silicon, which also enables an EV to drive longer distances before recharging.

Currently, the maximum amount of silicon added to batteries is about 10% because the material expands during use and can degrade the battery.

Companies are working on technology that would allow larger amounts of silicon. If successful, that could be a threat to graphite in the long term.
https://www.reuters.com/business/au...inese-graphite-evs-shortages-loom-2023-06-21/

 

[beserk]

A little interview by PEL in the print edition of Bergsmannen for registered members.
On the title page
View attachment 38099
View attachment 38100
It was difficult to translate this because of the non-open (scanned) PDF format. A little back and forth in Office and then it worked.



"Per-Erik Lindvall, Talga Sverige:

All forecasts point in the same direction: the need for graphite will only increase.
​

A world-class deposit, both in terms of quality and quantity.
This is how Per Erik Lindvall, Chairman of the Board of Talga Sverige AB, describes the graphite found in the 1 Vittangi mine.
Already this year, it is expected to start preparatory groundwork for the investment that will start in 2025.

The mining company Talga has applied to mine 120 000 tons per year in the graphite mine in Vittangi, Kiruna municipality.

The graphite content of the ore is 25 percent. "Compared with most other mines, where the graphite content is between 5 and 9 percent, this is a world-class deposit," says Per-Erik Lindvall.

In mining terms, 120,000 tons of ore per year is of course not a large amount. But, as Per-Erik Lindvall notes, this is only the beginning of the process. In all likelihood, there are much larger quantities of graphite in the area.

- Moreover, given the high content of graphite in the ore, it ultimately means that we need to produce less tons of ore than our competitors to get the final product that goes into the batteries," he explains.


Coherent value chain
Although the permit, which has already been granted by the Land and Environment Court, has been appealed by samebys and private individuals, this does not worry Per-Erik Lindvall, who says that the evidence the court had to consider is on solid ground and that the judgment is well written. Moreover, the authorities concerned recommended that the permit be granted and they have not appealed the judgment.

In the planned open pit mine, ten kilometers from Vittangi, if everything goes according to plan, more than fifty employees will mine and crush 120 000 tons of ore per year. The graphite will be enriched on site to a content of about 90 percent and then transported by truck to Luleå and Talga's anode factory for further processing.


View attachment 38098
Per-Erik Lindvall looks forward to the start of the graphite mine in Vittangi.

"Having a coherent value chain where you go from natural graphite to finished anode material as Talga does here is quite unusual," says Per-Erik Lindvall.
The need for graphite is increasing sharply worldwide because graphite is a key raw material required to implement the green transition. Graphite is used in the anode material, which in turn is used in the batteries used in, for example, electric cars.

Important for the entire EU
Establishing graphite production in Sweden is important for the entire EU, ensuring a sustainable supply of the raw material and reducing dependency on countries such as China, which is by far the largest producer of graphite.
- All forecasts point in the same direction: the need for graphite will only increase with the transition to fossil-free vehicles. "As it stands today, the EU is expected to need one million tons of anode graphite per year from 2030," says Per-Erik Lindvall.
The Australian company Talga Ltd, which is headquartered in Perth, has its own patents on refining graphite and has battery production as a special competence. When it comes to the subsidiary Talga Sverige AB, there are of course no revenue streams yet, as production has not started.
- "No, so far we are living off the shareholders' money. However, we are coming up with the right product at the right time, which means that the project will soon be economically viable.
Per-Erik Lindvall expects the plant to be completed and production to be in full swing in 2025.

Major technology shift
Per-Erik Lindvall is grateful to be part of the journey that the technology shift from fossil-fueled to electric cars entails.
He himself has extensive experience in the mining industry, including many years working for Boliden and LKAB. He was also involved in restarting the Kaunis Irons iron ore mine in Pajala, where he is also a board member. For the past two years he has been Chairman of the Board of Talga AB and has had the privilege of delving into the world of batteries.
'If the chance to learn something new comes up, I think you should take it. And if you love mines and like Norrbotten as I do, then it was hard not to accept this opportunity.
BERGSMANNEN No. 3 2023"
https://www.bergsmannen.se/tidigare-nummer/

Thanks for your effort in fighting against different formats and squezing them into shape...much appreciate..

 

[teilenswert]

 

[beserk]

I was looking through this week ends issue of Aus Financial Review, known as the Fin here downunder.

The Fin usually have well researched and unbiased articles. And in this issue they had a focus on transition stocks.

And it might be the focus of the article on p 24 were companies that have gone past the exploration phase. But 6 out of 20 listed companies are in the same phase as Talga. And one, Syrah resources, is as we know in the graphite business like Talga.

Why were Talga excluded ? Perhaps worthwhile to chase it up with the journalists?

-beserk

 

[cosors]

View attachment 39108

I was looking through this week ends issue of Aus Financial Review, known as the Fin here downunder.

The Fin usually have well researched and unbiased articles. And in this issue they had a focus on transition stocks.

And it might be the focus of the article on p 24 were companies that have gone past the exploration phase. But 6 out of 20 listed companies are in the same phase as Talga. And one, Syrah resources, is as we know in the graphite business like Talga.

Why were Talga excluded ? Perhaps worthwhile to chase it up with the journalists?

-beserk

We have a Reuters article that is going around the world and steadily spreading.

I think that's better.

 

[cosors]

Article now from Belgium (?), Google says it's Dutch. Unfortunately behind a PW but the headline says it all.

"THE BIG MARKET

Graphite is suddenly the new gold for car manufacturers​

By 2035, no fewer than 97 new graphite mines will be needed to meet demand.
Today at 03:00
Economy"
https://m.standaard.be/cnt/dmf20230702_97080356

 

[cosors]

Translation from German from a major financial magazine. Reuters was only the beginning. Now the Handelsblatt is reporting also about us. Talga at the center of trade policy.

SUPERPOWER TRADE DISPUTE​

How Europe could counter China's commodity threat​

In Brussels there is a fear that China's conflict with the USA will also affect Europe. But there may also be opportunities.

05.07.2023 - 17:27

mining in China
The country wants to restrict the export of certain raw materials.

Brussels, Düsseldorf, Beijing, Stockholm From August, Chinese manufacturers will need a license to export the industrial metals gallium and germanium. Two niche commodities used in the telecom and defense industries. But above all, they are essential for the production of semiconductors, electric cars and solar modules. And thus for the energy transition.

The move is a reaction to the US attempt to cut off the supply of high-tech semiconductors to the People's Republic of China. Under pressure from the United States, the Netherlands and Japan recently agreed to export restrictions on machines for semiconductor production.

Former Vice Minister of Commerce Wei Jianguo described the announced export controls as a "well-considered hard blow," the state-run China Daily reported on Wednesday. If tech sanctions are continued, China will respond with further countermeasures.

The problem: Europe is dependent on supplies from China. The People's Republic is the world's largest producer of gallium and germanium. According to a study by the European Union, 71 percent of the gallium and 45 percent of the germanium for Europe come from China.


The two raw materials belong to the group of so-called "critical raw materials" of the EU. Which means something like: They are of important strategic importance for the future of the continent.

The EU Commission is concerned​

Frans Timmermans, vice-president of the European Commission, who attended a high-level EU-China climate dialogue in Beijing on Tuesday, expressed "concern" about the potential export restrictions. He raised the issue with Deputy Prime Minister Ding Xuexiang, he said in an interview with the Handelsblatt.
However, he acknowledged the concern without comment. According to Timmermans, the EU Commission is still analyzing the consequences of the announced restrictions. He is opposed to "trade being hampered by these types of measures," Timmermans said.

Solar High School
Gallium and germanium are particularly important for the manufacture of solar cells and semiconductors. Both are needed for a functioning solar system.


Even if the direct effects of the export controls are limited, the EU Commission sees its course of reducing economic dependence on China as confirmed. The Brussels authority has launched a number of relevant initiatives. The Raw Materials Act is intended to strengthen recycling and promote the extraction of mineral resources in Europe. The European Chips Act aims in the same direction. With him, Europe wants to settle chip factories in order to be less dependent on imports. At the same time, the EU wants to establish raw material partnerships with countries in Africa and Latin America.


The Net Zero Industry Act, the second central EU project to reduce China risks, supplements the Raw Materials Act, but starts at the end of the value chain: With targeted subsidies, it is intended to enable the EU to reduce at least 40 percent of its produce the green technologies they need – batteries, wind turbines, solar cells and heat pumps – themselves. EU Commission President Ursula von der Leyen recently outlined her vision. She wants to “make Europe the center for clean technologies and industrial innovation”. However, Europe is still absolutely dependent on the supply of raw materials.

For the graphic at this point follow the link below.

China has a lever of power and is not afraid to use it. Ten years ago, Beijing cut off supplies of raw materials to Japan after a dispute in the South China Sea. A fact that von der Leyen has repeatedly pointed out.

>> Read here: Chip dispute between the West and China escalates – with worldwide consequences

Export licenses for raw materials such as rare earths are not uncommon in China, says Jost Wübbeke from the China consultancy Sinolytics. However, he points out that there are no quantitative restrictions or export taxes on the metals so far. Only in the next few months will it become apparent how rigid the authorities are when it comes to issuing export licenses. Should China introduce export quotas, the country would violate a 2015 World Trade Organization arbitration ruling. Wübbeke therefore recommends "caution, but don't panic".


Neither gallium nor germanium are rare metals. The raw materials are obtained as a by-product of the production of industrial metals such as aluminum or zinc. But as a result of price competition from Chinese suppliers, many manufacturers in other countries have scaled back production, including Germany and Kazakhstan. Due to rising prices since 2021, it was decided in Germany to ramp up production again.

So far, however, the plant in Stade is still standing still. It's not worth it, say the industry. If prices continue to rise as a result of Chinese export restrictions, which experts say is to be expected, mining and production in countries like Germany would become more attractive again.

For the graphic at this point follow the link below.

Matthias Rüth does not fear any direct effects from the announced export controls for Germany and Europe. With his company Tradium he has specialized in trading in gallium and germanium.

The company from Frankfurt is one of the largest on the market. Its suppliers are mostly based in China. “I don't think Europe is the focus here. Our contacts are stable and have grown well,” he is convinced. In addition, Tradium has a physical warehouse in Frankfurt, "with the stocks we can reliably supply German industry in the medium term," says Rüth.


The impact on the solar industry should also be limited. Only a few modules are even manufactured in Europe. The vast majority is produced in China and then sold as a finished plant on the European market.

Inverter manufacturer SMA Solar from Kassel is relaxed. Although one refers to components that contain small amounts of gallium, "but the selection of manufacturers is very large," said a spokeswoman for the solar group to the Handelsblatt. In addition, since the corona crisis, they have been continuously optimizing their own procurement strategies and are “paying more attention to avoiding dependencies”.

Solar
When it comes to raw materials for the energy transition, Europe is massively dependent on China. That needs to change.

Although most producers come from China, there are alternatives. The Belgian recycling group Umicore, for example, is one of the larger producers of germanium. Gallium is also recycled in Europe, "for example in Germany and Slovakia," says geologist Maren Liedtke from the German Mineral Resources Agency (DERA). Nevertheless, Europe is dependent on China, there is nothing to sugarcoat. However, such export controls already exist for other raw materials, so far this has not had any major consequences.

Ban on coal imports from Australia​

The Chinese government has repeatedly used its power as the second largest economy in the world to put pressure on trading partners. In 2020, for example, she imposed an import ban on coal from Australia after the country had called for an independent investigation into the origin of the corona pandemic.


But Matthew Reynolds from the US think tank Center for Strategic and International Studies (CSIS) qualifies: Beijing's attempts to use the economy as a means of pressure have "so far proved to be largely ineffective". He recommends that Western politicians take this into account when responding.

The People's Republic has harmed itself with the coal import ban. The restrictions have since been lifted. Australia, for its part, has pushed ahead with its efforts to become more independent from China. The now planned export restrictions for gallium and germanium could also strengthen the EU's efforts to expand its own raw material production to minimize risk.

Northvolt
The Swedish company wants to source as many of its raw materials as possible from European production.

A good example: Sweden. Even if there are no official export restrictions, the export of the raw material graphite from China has been falling significantly for several years. The metal is mainly used to make batteries for electric cars. Ever since Northvolt, the first European manufacturer of electric car batteries, was established in Sweden, Chinese suppliers have not been granted export permits for graphite. At the same time, Chinese market leaders such as CATL are building their own battery factories in Europe.

That is why Sweden wants to systematically mine the raw material itself in the future. In the north of the country are probably the largest graphite deposits in Europe. As well as deposits of rare earths. The Australian company Talga has already acquired mining rights for graphite in Vittangi.


"Sveriges geologiska undersökning" (SGU), an authority that advises the government on mining issues, among other things, estimates Sweden's graphite deposits at around three million tons. According to SGU calculations, around 125,000 tons of the industrial metal are needed in Europe every year. The Swedish deposits should therefore cover the demand in Europe for many years. I prefer to think about the extensions

Hans Selbach, geologist at SGU, is cautiously optimistic that Talga will be able to start mining graphite in the near future. "The company already has most of the permits," he told Handelsblatt. Talga himself hopes to start production in 2025.

In fact, the graphite deposits in Sweden and partly also in Finland should make Europe significantly less dependent on China.

More: China dispute flares up again – traffic light also strains nerves in Brussels"
https://www.handelsblatt.com/politi...te/29238424.html?nlayer=Politik-News_11247984


This is not a small paper and is considered the most trusted and most quoted German trade newspaper and this is not a small topic and a clear statement. I think the interest here in Europe for us started with the Reuters article above. Even in France and Benelux we are mentioned.
Now my country will no longer be able to 'ignore' us I think.

____
Yet I'm waiting for the first German politician to use the word graphite in reference to Europe.

 

[Gero]

​ ​ View this email in your browser

​ Newsletter July 7, 2023

​ ​ ​ Talga AB wants to do the right thing from the start - supports Gender Equality Industry​ ​ Talga AB has signed the letter of intent Gender Equality Industry – an initiative that gathers actors from Norrbotten and Västerbotten around a common direction. Eva Pijnenburg, People and Culture Manager at Talga since 2021, talks about the commitment to gender equality. "This is a necessary investment because what has been done in the past in the industry has not been enough. With a declaration of intent, we show that we mean business. Talga AB is a relatively new company, which means that we can put the puzzle right from the start, says Eva. The background to the letter of intent, which is an initiative from the county administrative boards of Norrbotten and Västerbotten, is the major industrial investments being made in northern Sweden, and whose success is dependent on both women and men wanting to live and work in the north. In order to attract more women to the industry, it is important to set the bar right and think about gender equality already in the job advertisement, Eva explains. – Do we really need to give the exact number of years of experience or is "good experience" enough? We know that women are more cautious than men about applying for positions if they do not meet the requirements one hundred percent. Eva sees an advantage in Talga working with gender equality issues early in the company's development. "In companies with few women, jargon is created that is shaped after men. If, on the other hand, women are part of the business from the very beginning, a culture is created accordingly. But the gender equality work is also about practical things, such as providing the right clothing sizes, menstrual protection in toilets and more. To show that Talga is an inclusive workplace where everyone is welcome, the company adapts the schedule to work also for single parents – who are often women. "Our operators don't start at 06 a.m., they start at 07 a.m. The kindergarten opens at 06:30. How should you as a single parent put the puzzle together? There we can help by not scheduling long meetings before 09 am, for example. For Talga, equality, diversity and inclusion are factors that have the potential to strengthen the company and help it grow. "Differences of various kinds mean that one plus one becomes three. We want a broad competence base and people with an entrepreneurial desire. We believe that much of what will be done in the future does not exist today and therefore it is very important that people are willing to change. Gender equality is another important key to success. How companies work with gender equality will be visible in the last lines of the report, Eva concludes. Facts: Talga AB currently has 26 full-time employees and over 50 percent are women. The company will work to maintain an equal distribution also in the future. ​ Positive news for the factory in Luleå​ ​ ​ Thursday 21 June was a historic date for Talga AB. Then the Land and Environment Court announced that the company received a permit for the planned factory at Luleå Industrial Park. The announcement came shortly after the Land and Environment Court gave a positive ruling for mining at Nunasvaara Södra. However, the permits for mining operations in particular have been appealed, which is not uncommon in industrial establishments. – The judgment is comprehensive and we find it difficult to see that we would not get permission. At the end of the day, this is a very important mineral for the green transition, which must also be extracted responsibly," says Per-Erik Lindvall, Chairman of the Board. Right now, only felling has taken place at the site of the planned factory at Luleå Industrial Park. The plant, whose ground preparation work will begin later this year, will use graphite concentrate from Nunasvaara Södra to produce battery anode material for further transport to the customer. The permit allows for a production rate of up to 22,000 tonnes per year. This is enough for over 200,000 electric cars annually and the factory is expected to be in production by 2025. ​ Talga AB becomes a sponsor of the budo club​ ​ ​ Now we can happily announce that Talga AB is a new sponsor of the Budo club Tomoe. The major team sports such as football and ice hockey are perhaps more common in corporate sponsorship. This time Talga AB thought a little differently and fell for martial arts, which are often associated with kicks and punches, but which in this case is about something else. Ju-jutsu kai is one hundred percent a self-defense sport. "The sponsorship from Talga AB means a lot to us as a club. It will give us opportunities to continue the reconstruction after the pandemic and we will be able to travel on various activities and training camps during the year, says Michael Uhland, coach. ​ Lucky winner for our electric car at the Kiruna Festival​ ​ ​ Talga AB was of course at the Kiruna Festival this year as well. The win in our competition "guess the weight of the graphite car" went all the way to Karesuando. Environmental permit granted for both battery anode factory in Luleå and graphite mining in Nunasvaara Södra - spring and early summer have been eventful for Talga AB, to say the least. The visitors during the Kiruna Festival's company expo were many and our win in the competition, an electric Volvo XC90 for children, was a real drawcard. The graphite car, on which the contestants guessed the weight, weighed 14.4 kilograms. Unfortunately, no one hit the spot, but they were close! Two contestants guessed at 14.5 kilograms and one competitor thought our car weighed 14.3 kilograms. Therefore, the ticket had to decide and the lucky winner was the Söderfalk family from Karesuando. Congratulations and welcome back next year! ​ Talga AB visits Hertsödagen​ ​ ​ Are you, like us, social and like gatherings and fun events? Then come to Hertsö Day in Luleå on August 12. Talga AB will be present during this year's Hertsö Day on August 12 from 10.00 – 15.00. The program is updated continuously on Hertsödagen's website and will include a flea market and sales of bread from Hertsö Bagarstugeförening. – We think it is important and fun to be present at various events at our business locations because this is where we will establish ourselves. Please come and talk to us and take the opportunity to ask your questions, says Liz Asplund, Operations Manager at Talga AB. ​ Happy summer we wish you all and see you again after the holidays!​

​ Your Talga contact in Vittangi, Kiruna and Luleå is Liz Asplund. The easiest way to reach me is by liz.asplund@talgagroup.com or phone. 010-303 71 09. Welcome to contact us! ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Are you interested in Talga AB and our vacancies? Visit www.talgagroup.com/sv/karriar

Talga nyhetsbrev 7 juli 2023

mailchi.mp

 

[cosors]

Translation from German from a major financial magazine. Reuters was only the beginning. Now the Handelsblatt is reporting also about us. Talga at the center of trade policy.

SUPERPOWER TRADE DISPUTE​

How Europe could counter China's commodity threat​

In Brussels there is a fear that China's conflict with the USA will also affect Europe. But there may also be opportunities.

05.07.2023 - 17:27
View attachment 39362
mining in China
The country wants to restrict the export of certain raw materials.

Brussels, Düsseldorf, Beijing, Stockholm From August, Chinese manufacturers will need a license to export the industrial metals gallium and germanium. Two niche commodities used in the telecom and defense industries. But above all, they are essential for the production of semiconductors, electric cars and solar modules. And thus for the energy transition.

The move is a reaction to the US attempt to cut off the supply of high-tech semiconductors to the People's Republic of China. Under pressure from the United States, the Netherlands and Japan recently agreed to export restrictions on machines for semiconductor production.

Former Vice Minister of Commerce Wei Jianguo described the announced export controls as a "well-considered hard blow," the state-run China Daily reported on Wednesday. If tech sanctions are continued, China will respond with further countermeasures.

The problem: Europe is dependent on supplies from China. The People's Republic is the world's largest producer of gallium and germanium. According to a study by the European Union, 71 percent of the gallium and 45 percent of the germanium for Europe come from China.


The two raw materials belong to the group of so-called "critical raw materials" of the EU. Which means something like: They are of important strategic importance for the future of the continent.

The EU Commission is concerned​

Frans Timmermans, vice-president of the European Commission, who attended a high-level EU-China climate dialogue in Beijing on Tuesday, expressed "concern" about the potential export restrictions. He raised the issue with Deputy Prime Minister Ding Xuexiang, he said in an interview with the Handelsblatt.
However, he acknowledged the concern without comment. According to Timmermans, the EU Commission is still analyzing the consequences of the announced restrictions. He is opposed to "trade being hampered by these types of measures," Timmermans said.

View attachment 39363
Solar High School
Gallium and germanium are particularly important for the manufacture of solar cells and semiconductors. Both are needed for a functioning solar system.


Even if the direct effects of the export controls are limited, the EU Commission sees its course of reducing economic dependence on China as confirmed. The Brussels authority has launched a number of relevant initiatives. The Raw Materials Act is intended to strengthen recycling and promote the extraction of mineral resources in Europe. The European Chips Act aims in the same direction. With him, Europe wants to settle chip factories in order to be less dependent on imports. At the same time, the EU wants to establish raw material partnerships with countries in Africa and Latin America.


The Net Zero Industry Act, the second central EU project to reduce China risks, supplements the Raw Materials Act, but starts at the end of the value chain: With targeted subsidies, it is intended to enable the EU to reduce at least 40 percent of its produce the green technologies they need – batteries, wind turbines, solar cells and heat pumps – themselves. EU Commission President Ursula von der Leyen recently outlined her vision. She wants to “make Europe the center for clean technologies and industrial innovation”. However, Europe is still absolutely dependent on the supply of raw materials.

For the graphic at this point follow the link below.

China has a lever of power and is not afraid to use it. Ten years ago, Beijing cut off supplies of raw materials to Japan after a dispute in the South China Sea. A fact that von der Leyen has repeatedly pointed out.

>> Read here: Chip dispute between the West and China escalates – with worldwide consequences

Export licenses for raw materials such as rare earths are not uncommon in China, says Jost Wübbeke from the China consultancy Sinolytics. However, he points out that there are no quantitative restrictions or export taxes on the metals so far. Only in the next few months will it become apparent how rigid the authorities are when it comes to issuing export licenses. Should China introduce export quotas, the country would violate a 2015 World Trade Organization arbitration ruling. Wübbeke therefore recommends "caution, but don't panic".


Neither gallium nor germanium are rare metals. The raw materials are obtained as a by-product of the production of industrial metals such as aluminum or zinc. But as a result of price competition from Chinese suppliers, many manufacturers in other countries have scaled back production, including Germany and Kazakhstan. Due to rising prices since 2021, it was decided in Germany to ramp up production again.

So far, however, the plant in Stade is still standing still. It's not worth it, say the industry. If prices continue to rise as a result of Chinese export restrictions, which experts say is to be expected, mining and production in countries like Germany would become more attractive again.

For the graphic at this point follow the link below.

Matthias Rüth does not fear any direct effects from the announced export controls for Germany and Europe. With his company Tradium he has specialized in trading in gallium and germanium.

The company from Frankfurt is one of the largest on the market. Its suppliers are mostly based in China. “I don't think Europe is the focus here. Our contacts are stable and have grown well,” he is convinced. In addition, Tradium has a physical warehouse in Frankfurt, "with the stocks we can reliably supply German industry in the medium term," says Rüth.


The impact on the solar industry should also be limited. Only a few modules are even manufactured in Europe. The vast majority is produced in China and then sold as a finished plant on the European market.

Inverter manufacturer SMA Solar from Kassel is relaxed. Although one refers to components that contain small amounts of gallium, "but the selection of manufacturers is very large," said a spokeswoman for the solar group to the Handelsblatt. In addition, since the corona crisis, they have been continuously optimizing their own procurement strategies and are “paying more attention to avoiding dependencies”.


View attachment 39364
Solar
When it comes to raw materials for the energy transition, Europe is massively dependent on China. That needs to change.

Although most producers come from China, there are alternatives. The Belgian recycling group Umicore, for example, is one of the larger producers of germanium. Gallium is also recycled in Europe, "for example in Germany and Slovakia," says geologist Maren Liedtke from the German Mineral Resources Agency (DERA). Nevertheless, Europe is dependent on China, there is nothing to sugarcoat. However, such export controls already exist for other raw materials, so far this has not had any major consequences.

Ban on coal imports from Australia​

The Chinese government has repeatedly used its power as the second largest economy in the world to put pressure on trading partners. In 2020, for example, she imposed an import ban on coal from Australia after the country had called for an independent investigation into the origin of the corona pandemic.


But Matthew Reynolds from the US think tank Center for Strategic and International Studies (CSIS) qualifies: Beijing's attempts to use the economy as a means of pressure have "so far proved to be largely ineffective". He recommends that Western politicians take this into account when responding.

The People's Republic has harmed itself with the coal import ban. The restrictions have since been lifted. Australia, for its part, has pushed ahead with its efforts to become more independent from China. The now planned export restrictions for gallium and germanium could also strengthen the EU's efforts to expand its own raw material production to minimize risk.


View attachment 39366
Northvolt
The Swedish company wants to source as many of its raw materials as possible from European production.

A good example: Sweden. Even if there are no official export restrictions, the export of the raw material graphite from China has been falling significantly for several years. The metal is mainly used to make batteries for electric cars. Ever since Northvolt, the first European manufacturer of electric car batteries, was established in Sweden, Chinese suppliers have not been granted export permits for graphite. At the same time, Chinese market leaders such as CATL are building their own battery factories in Europe.

That is why Sweden wants to systematically mine the raw material itself in the future. In the north of the country are probably the largest graphite deposits in Europe. As well as deposits of rare earths. The Australian company Talga has already acquired mining rights for graphite in Vittangi.


"Sveriges geologiska undersökning" (SGU), an authority that advises the government on mining issues, among other things, estimates Sweden's graphite deposits at around three million tons. According to SGU calculations, around 125,000 tons of the industrial metal are needed in Europe every year. The Swedish deposits should therefore cover the demand in Europe for many years. I prefer to think about the extensions

Hans Selbach, geologist at SGU, is cautiously optimistic that Talga will be able to start mining graphite in the near future. "The company already has most of the permits," he told Handelsblatt. Talga himself hopes to start production in 2025.

In fact, the graphite deposits in Sweden and partly also in Finland should make Europe significantly less dependent on China.

More: China dispute flares up again – traffic light also strains nerves in Brussels"
https://www.handelsblatt.com/politi...te/29238424.html?nlayer=Politik-News_11247984


This is not a small paper and is considered the most trusted and most quoted German trade newspaper and this is not a small topic and a clear statement. I think the interest here in Europe for us started with the Reuters article above. Even in France and Benelux we are mentioned.
Now my country will no longer be able to 'ignore' us I think.

____
Yet I'm waiting for the first German politician to use the word graphite in reference to Europe.

Now my country will no longer be able to 'ignore' us I think.

Our deposit of graphite was just mentioned in the largest German radio station that is broadcast once around the world - Deutschlandfunk DLF refers to the Tagesspiegel.

It can happen that quickly.) Thanks to China Talga is suddenly the European salvation. Have a nice weekend!

 

[cosors]

Our deposit of graphite was just mentioned in the largest German radio station that is broadcast once around the world - Deutschlandfunk DLF refers to the Tagesspiegel.

It can happen that quickly.) Thanks to China Talga is suddenly the European salvation. Have a nice weekend!

Now only still missing that a Bavarian politician proudly in the large first German television ARD announces that he alone found the German and European salvation in Sweden, oh what, the whole world!

 

[TentCity]

Now only still missing that a Bavarian politician proudly in the large first German television ARD announces that he alone found the German and European salvation in Sweden, oh what, the whole world!

Very happy for a Bavarian politician or any German politician for that matter to fight over who gets to announce Talga’s first Talnode-Si anode plant in Deutschland safeguarding Germany’s auto industry!!

Let’s just hope that they bring the cheque book similar to the counteroffer that was made to keep Northvolt in Europe to build their third plant in Heide, Schleswig-Holstein instead of the US.

 

[cosors]

Very happy for a Bavarian politician or any German politician for that matter to fight over who gets to announce Talga’s first Talnode-Si anode plant in Deutschland safeguarding Germany’s auto industry!!

Let’s just hope that they bring the cheque book similar to the counteroffer that was made to keep Northvolt in Europe to build their third plant in Heide, Schleswig-Holstein instead of the US.

It's clear. My comment is somewhat unfair or incomprehensible to people who do not live here in Germany. Everyone here knows how the CSU and Bavaria makes politics with populism. It was meant as a joke for my compatriots. We have here politicians like Söder or Altmeier.

...

 

[TentCity]

It's clear. My comment is somewhat unfair or incomprehensible to people who do not live here in Germany. Everyone here knows how the CSU and Bavaria makes politics with populism. It was meant as a joke for my compatriots. Please see it after me. We have here politicians like Söder or Altmeier.

...

All good Cosors, I could detect the sarcasm in your post. We have plenty of such politicians here in Australia who love to grandstand on topical issues and present solutions that have no substance!

I am very much looking forward to the big reveal on the Talnode-Si front in terms of project location; funding/commercial partners; timelines & probable EU/State financial support. However, I think the next update will more likely be Wednesday/Thursday with the status of any appeals with the anode plant and hopefully the mine.

 

[cosors]

All good Cosors, I could detect the sarcasm in your post. We have plenty of such politicians here in Australia who love to grandstand on topical issues and present solutions that have no substance!

I am very much looking forward to the big reveal on the Talnode-Si front in terms of project location; funding/commercial partners; timelines & probable EU/State financial support. However, I think the next update will more likely be Wednesday/Thursday with the status of any appeals with the anode plant and hopefully the mine.

I'm really excited to see where Talga is planning the next Talnode-Si plant. At the moment they seem to be fully expanding the small plant in Rudolstadt. I'm really curious to see whether it will be in Germany or rather in France. Personally, I'm leaning towards France in the Dunkirk area. But who knows, when German politicians discover now that there is an NG deposit in Europe and that the world doesn't just consist of SGL Carbon and its SG then they will certainly make it very palatable for MT in the east of Germany. Acceleration laws are being drafted to speed up the approval process.

 

[TentCity]

I'm really excited to see where Talga is planning the next Talnode-Si plant. At the moment they seem to be fully expanding the small plant in Rudolstadt. I'm really curious to see whether it will be in Germany or rather in France. Personally, I'm leaning towards France in the Dunkirk area. But who knows, when German politicians discover now that there is an NG deposit in Europe and that the world doesn't just consist of SGL Carbon and its SG then they will certainly make it very palatable for MT in the east of Germany. Acceleration laws are being drafted to speed up the approval process.

I understand why you might be leaning towards France as the preferred destination for the first Talnode-Si plant given the strong French connection with our current offtake partners. But, I can only ever recall Mark stating in previous investor webinars that Germany is the preferred locations due to a combination of that’s where the current personnel/expertise lie (Rudolstadt) and also based on customer location.

I wouldn’t be surprised to see a Talnode-Si plant pop up in France at some stage and I hope they do expand into the US and take advance of the IRA soon after.

 

[Manual]

US should reach minerals deal with EU this year: US official​

US should reach minerals deal with EU this year: US official

BRUSSELS: The United States is "well positioned" to reach a deal with the European Union before the end of 2023 to allow critical minerals mined or processed in Europe to qualify for US clean vehicle tax breaks, a senior US treasury official said on Monday (Jul 10). The transatlantic partners...

www.channelnewsasia.com

BRUSSELS: The United States is "well positioned" to reach a deal with the European Union before the end of 2023 to allow critical minerals mined or processed in Europe to qualify for US clean vehicle tax breaks, a senior US treasury official said on Monday (Jul 10).

The transatlantic partners are about to negotiate whether and how EU critical minerals can qualify for the subsidies under the US Inflation Reduction Act (IRA), which has caused concern in Europe over its bias towards US production.

The IRA includes lithium, graphite and nickel as critical minerals.

"Our hope is to make progress in the coming weeks, with before the end of the year concluding some type of critical mineral agreements with our allies and partners here in Europe," the treasury official said.

The United States signed a deal with Japan in March. Now, both the EU and Britain are looking for the same. The US already included countries with which it has a free trade agreement.

EU governments are expected to agree on a negotiating mandate for the European Commission this month.

"I think we're well-positioned to conclude this as quickly as they're able to move, mindful of the fact that we need to do something that's consistent with the Inflation Reduction Act and with our domestic requirements," the official said.

The official said an agreement would need to include enforceable standards on labour and the environment.

"The reality is that what we're calling on the EU to do is consistent with what the EU has already done, so that's why I'm so confident we can get the agreement done relatively quickly," the official said.
Source: Reuters

 

[cosors]

US should reach minerals deal with EU this year: US official​

US should reach minerals deal with EU this year: US official

BRUSSELS: The United States is "well positioned" to reach a deal with the European Union before the end of 2023 to allow critical minerals mined or processed in Europe to qualify for US clean vehicle tax breaks, a senior US treasury official said on Monday (Jul 10). The transatlantic partners...

www.channelnewsasia.com

BRUSSELS: The United States is "well positioned" to reach a deal with the European Union before the end of 2023 to allow critical minerals mined or processed in Europe to qualify for US clean vehicle tax breaks, a senior US treasury official said on Monday (Jul 10).

The transatlantic partners are about to negotiate whether and how EU critical minerals can qualify for the subsidies under the US Inflation Reduction Act (IRA), which has caused concern in Europe over its bias towards US production.

The IRA includes lithium, graphite and nickel as critical minerals.

"Our hope is to make progress in the coming weeks, with before the end of the year concluding some type of critical mineral agreements with our allies and partners here in Europe," the treasury official said.

The United States signed a deal with Japan in March. Now, both the EU and Britain are looking for the same. The US already included countries with which it has a free trade agreement.

EU governments are expected to agree on a negotiating mandate for the European Commission this month.

"I think we're well-positioned to conclude this as quickly as they're able to move, mindful of the fact that we need to do something that's consistent with the Inflation Reduction Act and with our domestic requirements," the official said.

The official said an agreement would need to include enforceable standards on labour and the environment.

"The reality is that what we're calling on the EU to do is consistent with what the EU has already done, so that's why I'm so confident we can get the agreement done relatively quickly," the official said.
Source: Reuters

Thanks for the info! Hopefully, this will help us not to become a pawn of Chinese trade policy.

 

[cosors]

I understand why you might be leaning towards France as the preferred destination for the first Talnode-Si plant given the strong French connection with our current offtake partners. But, I can only ever recall Mark stating in previous investor webinars that Germany is the preferred locations due to a combination of that’s where the current personnel/expertise lie (Rudolstadt) and also based on customer location.

I wouldn’t be surprised to see a Talnode-Si plant pop up in France at some stage and I hope they do expand into the US and take advance of the IRA soon after.

Manual's info clearly points in this direction, doesn't it?

 

[Pharvest]

Our deposit of graphite was just mentioned in the largest German radio station that is broadcast once around the world - Deutschlandfunk DLF refers to the Tagesspiegel.

It can happen that quickly.) Thanks to China Talga is suddenly the European salvation. Have a nice weekend!

Geez i’m enjoying the news from Germany.. you’re a bloody champion Cosors

 

[TentCity]

Manual's info clearly points in this direction, doesn't it?

Spot on - concluding such an agreement between the EU & US would further strengthen the likelihood of Talga bringing forward North American expansion options given how favourable the investment landscape is under the IRA and demand for fully qualified non-Chinese anode suppliers.

I still think Talga could do it even without the stated agreement between the EU & USA given Talnode-Si in particular doesn't require the graphite ore from Vittangi and instead could utilise other graphite sources in North America and/or recycled material.

I'm still predicting the first Talnode-Si plant will be in Germany and depending on who exactly the OEM auto customer is and assuming they are active in North America, it could easily expand to wherever they have production centres.

Lot's to look forward to! Ich freue mich!