Strike Causes Auto Production Problems

News: Economics

2024-09-23

China Restrictions Could Cause Antimony Shortfall

ALTERNATIVE POWER REPORT
Guy Youngs
Guy Youngs

China plans to introduce restrictions on antimony exports, a move that could lead to another flashpoint with the West over control of critical minerals. Antimony is used in lead-acid batteries, as well as in solar panels and flame retardant applications. The US Department of the Interior has designated it a critical mineral. It also is essential for armor-piercing ammunition, infrared sensors and precision optics.

Analysts estimate the market was already facing a 10,000-ton shortfall before China’s restrictions. The US is critically dependent on China for antimony. It consumed 22,000 tons of antimony products in 2023. Domestic production amounted to just 4,000 tons. This mostly came from antimonial lead recovered from used lead-acid batteries

Source: Bestmag: Read The Article

PSR Analysis:  There are a lot of minerals that are now being brought into sharp focus as the US looks at its critical minerals and finds that it is more reliant on other nations than previously thought.   PSR

Guy Youngs is Forecast & Adoption Lead at Power Systems Research

2024-07-15

Canada Considers Tariffs on Chinese EVs Similar To US and EU Moves

ALTERNATIVE POWER REPORT
Guy Youngs
Guy Youngs

The Canadian government is preparing tariffs on Chinese-made EVs to align with the US and European Union, which have already proposed heavy duties to deter “unfair” competition imported from overseas

The country holds strong ties with the US and EU and looks to align with its trade partners in solidarity while blocking a potential loophole China could use to enter North America.

Source: Electrek: Read The Article

PSR Analysis:  Canada is still in the early stages of these tariffs, with discussion ongoing. Prime Minister Trudeau has not publicly committed Canada to imposing tariffs on Chinese EVs, stating the cabinet is monitoring the situation closely.   PSR

Guy Youngs is Forecast & Adoption Lead at Power Systems Research

EU Tariffs Hit Chinese EVs, Draw Stern Words from Beijing

The European Commission told automakers (July 11, 2024) it would impose extra duties of up to 38.1% on imported Chinese electric cars starting in July 2024, risking retaliation from Beijing, which called the move protectionist. Less than a month after Washington announced plans to quadruple duties for Chinese EVs to 100%, Brussels said it would set additional tariffs ranging from 17.4% for BYD to 38.1% for SAIC, on top of the standard 10% car duty. It said this was to combat excessive subsidies

it’s worth noting that commercial EV sales are soaring.  PSR

Source: Reuters (via MSN): Read The Article

PSR Analysis: On the face of it, this seems like the start of a trade war with Chinese automakers demanding retaliatory tariffs on European cars, however several EU member states have already started to back track (led by Germany) so it remains to be seen as to what the eventual outcome will be.  

Guy Youngs is Forecast & Adoption Lead at Power Systems Research

2024-06-18

China Threatens EU, U.S. with Tariffs Up To 25%

Guy Youngs
Guy Youngs

Trade tensions have continually risen among China, the European Union, and the US in recent years, with much of the drama surrounding imported EVs, so 10 days after the Biden administration introduced a 100% tariff on several categories of Chinese goods, including EVs, China has threatened to retaliate with tariffs on its own vehicle imports.

The EU has also been included in this threat but while it is conducting a probe into China’s EV exports, it has placed this probe on a temporary halt pending EU’s elections

Source: Electrek: Read The Article

PSR Analysis: With China not having enough car carriers to export all the EVs it is manufacturing, it’s very hard to see the EU not following the tariff route, but the real question that arises is whether or not this will lead to a trade war. China produces so many EVs that it needs to export, it’s also hard to see how they can retaliate without widening the areas affected. PSR Top of Form

Guy Youngs is Forecast & Adoption Lead at Power Systems Research

Diesel Demand Hits 26-Year Low

US diesel demand plummeted to its lowest seasonal level in 26 years in Q1 2024. The production of distillate, the petroleum-based fuel that powers trucking, heating, and heavy industry, plunged to 3.67 million barrels per day in March (down from more 4.1 million barrels last year) according to monthly data from the US Energy Information Administration.

Even in diesel-loving Europe, the diesel engine is dying. Volvo, for example, recently built its last-ever diesel vehicle, and companies like Nissan, Hyundai, and Daimler (parent company of Mercedes-Benz and the Freightliner and Rizon truck brands) have also backed away from developing new internal combustion engines.

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2024-05-27

Europe Investigates Chinese EV Subsidies

Last October, the European Commission opened an inquiry into whether Chinese automakers are the beneficiaries of such significant subsidies by the Chinese government that they have an unfair economic advantage over domestic manufacturers. The question is ridiculous, of course. Everyone on Earth knows the Chinese government has been providing massive support to its automotive sector for 20 years.

China has been open about its commitment to electric car manufacturing. It has told everyone its plans and then made those plans a reality. So, it should come as no surprise that Chinese companies can build electric cars in China, ship them overseas, and still undercut the price of electric cars from domestic manufacturers by 25% or more.

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