2025-10-21 12:19

China controls 70% rare-earth mining, 85% refining Rare-earth-free motors are years from mass production China pricing undermines new rare-earth mines abroad LONDON/BERLIN, Oct 21 (Reuters) - Global automakers are scouring the globe for crucial rare earths ahead of looming Chinese export controls, with executives worried they could lead to parts shortages and plant closures. Rare earth magnets power motors in car parts such as side mirrors, speakers, oil pumps, windshield wipers and fuel leakage and braking sensors. They play an even bigger role in EVs. Sign up here. While a U.S.-China deal diverted a supply threat, stockpiles were depleted by similar restrictions earlier this year, while Beijing has also made it harder to get export licenses. China has since dramatically expanded export curbs, with companies facing global supply shortages. Consultancy AlixPartners estimates China controls up to 70% of global rare-earths mining, 85% of refining capacity and about 90% of rare-earths metal alloy and magnet production. The new Chinese export control list includes elements like ytterbium, holmium and europium, also used in making cars. "The situation is very tense," said Nadine Rajner, CEO of German metal-powder supplier NMD, adding customers want to source rare earths from anywhere but China. As part of efforts to counter Chinese dominance, on Monday President Donald Trump and Australian Prime Minister Anthony signed a critical minerals agreement that includes U.S. investments in rare earth mining projects in Australia. NMD's Rajner said that while there are plenty of rare earths available in countries like Sweden, they do not have the mines or refining capacity to make them usable. And for heavy rare earths, China controls 99.8% of global refining capacity, making alternative sources negligible. "We are pretty much sold out and have limited stocks," Rajner said. Rare earths can be recycled from old cars, but that industry is in its infancy. Neutral, a Renault-backed company, currently recycles rare earths from 400,000 cars a year in France and has contracts with 15 brands in Europe. But "the challenge is scaling up these activities," said Neutral CEO Jean-Philippe Bahuaud. 'ALREADY BEEN DEPLETED' Even if Chinese suppliers can fulfil fresh orders before the November 8 export controls take effect, the journey by sea to Europe can take 45 days and the threat of a rare earth bottleneck is among several headaches facing the auto industry. China has also placed export restrictions on lithium-ion batteries and battery materials, triggering concerns over parts supplies for electric vehicles. And last week, an intellectual-property dispute between China and the Netherlands involving little-known Dutch chip-maker Nexperia, sparked fears of factory closures because it supplies a large amount of chips car parts and components. Automakers also face the challenge of U.S. tariffs and are expected to detail the costs in their third-quarter earnings. But China's hold over the industry through its control of rare earths ranks among the thorniest problems. "They can shut us down in two months, the entire auto industry," said Ryan Grimm, Toyota Motor's (7203.T) , opens new tab North America group vice president of purchasing supplier development. Bruno Gahery, president for France, Benelux, West and South Europe at supplier Bosch (ROBG.UL), said he expected the autos industry to "overstock rare earths" ahead of the deadline. But an executive at a magnet supplier for Hyundai (005380.KS) , opens new tab said that while it built inventories earlier this year, "most have already been depleted" and supplies are tight. Some Chinese rare earths exporters received a rush of orders from overseas clients immediately after new export controls were announced on October 9, three industry sources told Reuters. RARE EARTH FREE MOTORS Automakers are taking steps to reduce their reliance. Some such as General Motors (GM.N) , opens new tab and major suppliers such as ZF (ZFF.UL) and BorgWarner (BWA.N) , opens new tab are developing EV motors with low-to-zero rare-earth content, while BMW (BMWG.DE) , opens new tab and Renault (RENA.PA) , opens new tab have produced rare earth-free motors. Monumo has used AI and deep-tech simulation to help clients cut rare earth content in motors already in production, which CEO Dominic Vergine said has led to an average reduction of 24% among the UK firm's customers, which include several of the world's top 10 carmakers, he said. Automakers are also pushing hard to improve rare earth-free motors for the next generation of EVs. Yet most of those motors are years away, as are efforts to develop new rare earth mines and processing plants outside China, which Beijing can undermine by keeping prices low, industry experts say. Experts say the U.S government is taking the threat far more seriously than Europe. Andy Leyland, co-founder of supply chain specialist SC Insights, said Beijing has focused on beating others on price and will continue to do so. "The Chinese can always undercut them," he said of efforts to develop rare-earth free motors, adding that faced with cheaper motors with rare earth magnets automakers may find it hard to justify more expensive components. "So it's a really risky investment." Meanwhile, China is expected to keep exerting its power over supplies of rare earths. "This is not the end of export controls," said Jan Giese, a senior manager at rare-earth trader Tradium. https://www.reuters.com/business/autos-transportation/concerned-carmakers-race-beat-chinas-rare-earths-deadline-2025-10-21/

2025-10-21 12:04

Oct 21 (Reuters) - Kuwait's Ministry of Public Works has signed a contract with Turkish construction company Kuzu to build a wastewater treatment plant and its related works for the South Al-Mutlaa city project, it said on Tuesday. The contract, valued at 149.6 million dinars ($488.9 million), will use a hybrid system combining conventional and renewable energy sources, ministry spokesperson Ahmed Alsaleh told Reuters. Sign up here. The signing of the contract coincides with a visit by Turkish President Tayyip Erdogan to Kuwait, during which he will hold talks with the Emir and sign agreements covering the defence industries, energy, investment, and trade. The plant will serve residents of the Al-Mutlaa city development and produce around 400,000 cubic metres of tertiary-treated water per day for agricultural and other uses, the ministry said in a statement. The Al-Mutlaa city project is located in northern Kuwait, about 40 km from Kuwait City, and includes more than 28,000 housing units. Under the contract, the Turkish company will "build, operate, and maintain" the treatment plant. ($1 = 0.3060 Kuwaiti dinars) https://www.reuters.com/sustainability/climate-energy/kuwait-signs-500-million-wastewater-treatment-plant-deal-with-turkeys-kuzu-2025-10-21/

2025-10-21 11:56

MADRID, Oct 21 (Reuters) - Spain has imposed a temporary ban on exports of live cattle following an outbreak of the highly-contagious lumpy skin disease, Agriculture Minister Luis Planas told reporters on Tuesday. Lumpy skin disease is a virus spread by insects that affects cattle and buffalo, causing blisters and reducing milk production. It does not pose a risk to humans but often leads to trade restrictions and severe economic losses. Sign up here. "We have temporarily suspended exports of live animals to prevent the spread of the disease; France has done the same," Planas said. France imposed a similar ban on cattle exports and events such as bullfighting on Friday. The Spanish outbreak was detected on a farm with 123 dairy heifers near Girona in the northeast, after three animals showed symptoms on October 1. https://www.reuters.com/business/healthcare-pharmaceuticals/spain-bans-live-cattle-exports-over-lumpy-skin-disease-outbreak-2025-10-21/

2025-10-21 11:52

LONDON, Oct 21 (Reuters) - The recent collapses of U.S. car parts maker First Brands and auto dealership Tricolor may be a warning of much bigger financial problems to come and the Bank of England plans a more detailed probe, Governor Andrew Bailey said on Tuesday. Bailey told lawmakers that there were parallels with the early stages of the global financial crisis and that the central bank planned to run a "stress test" with the private equity and credit industry. Sign up here. "Are these cases idiosyncratic or are they what are called 'the canary in the coal mine'? In other words are they telling us something more fundamental...? I think that is still a very open question," Bailey told the House of Lords' Financial Services Regulation Committee. Bailey said the BoE planned to conduct a "system-wide exploratory scenario" with banks, insurers, private equity companies and other non-bank lenders. BoE Deputy Governor Sarah Breeden said the BoE expected to make a more detailed announcement before the end of the year and complete the exercise in nine to 12 months. "We can see the vulnerabilities here, the opacity, the leverage, the weak underwriting standards, the interconnections. We can see parallels with the global financial crisis. What we don't know is how macro-significant those issues are," she told the parliament committee. The exercise would be voluntary, as the central bank does not directly regulate many of the firms involved. Shares of some U.S. banks have fallen in recent weeks due to exposure to the bankruptcies of First Brands and Tricolor, which relied heavily on private finance. The House of Lords committee is looking at the growth since 2008 of so-called private markets - finance provided to large businesses outside of normal bank lending or issuing publicly traded shares or bonds. Bailey said he was concerned about potential conflicts of interest from private finance companies buying life insurers which then bought assets owned by the private finance companies. https://www.reuters.com/sustainability/boards-policy-regulation/bank-englands-bailey-says-first-brands-tricolor-collapses-may-be-warning-worse-2025-10-21/

2025-10-21 11:46

KAMPALA, Oct 21 (Reuters) - Uganda's electoral commission on Tuesday gave January 15 as the date for the country's general election, at which octogenarian President Yoweri Museveni will seek to extend his rule to nearly half a century. Now Africa's fourth longest-ruling leader, Museveni's government has changed the constitution twice to remove age and term limits, allowing him to remain in office since 1986. Sign up here. As in the 2021 election, Museveni's main rival is expected to be 43-year-old pop star-turned-politician Bobi Wine, who has parlayed his singing stardom to amass a large support base among young voters. Wine, whose real name is Robert Kyagulanyi, says Museveni won the last election through ballot-stuffing, intimidation of voters, bribery and other rigging tactics. Ruling party officials dismiss the accusation and say Museveni won through genuine support. Six other candidates representing smaller parties are contesting the upcoming presidential race, and voters will also elect members of parliament. A former rebel, Museveni has been credited with stabilising Uganda, promoting economic growth, and combating HIV/AIDS. But critics denounce his government's suppression of political opponents, human rights abuses and corruption scandals. Officials have denied allegations of rights abuses and say those detained are subject to due process. Museveni's government hopes the start of crude oil exports next year from fields operated by France's TotalEnergies (TTEF.PA) , opens new tab and China's CNOOC will help propel economic growth into double digits. Uganda is a significant geopolitical player in East Africa and has troops deployed in Somalia, South Sudan, the Democratic Republic of Congo and Equatorial Guinea as part of peacekeeping, anti-insurgency or military cooperation missions. https://www.reuters.com/world/africa/uganda-sets-general-election-january-15-2025-10-21/

2025-10-21 11:45

LONDON, Oct 21 (Reuters) - Sterling was little changed against the euro despite data on Tuesday showing Britain's borrowing in the first half of the financial year was the highest since the pandemic, as investors said a tough budget next month is already priced in. Against the euro, sterling was little changed at 86.80 pence. . It dipped 0.09% against a strengthening dollar to $1.3393, after briefly touching a six day low. Sign up here. Government borrowing in the first six months of the tax year totalled 99.8 billion pounds ($133.94 billion), up 13% from a year earlier and 7.2 billion pounds more than forecast by Britain's budget watchdog. In September alone, the government borrowed 20.2 billion pounds. It was lower than a median forecast of a 20.8 billion pound deficit in a Reuters poll of economists. The borrowing overshoot in the April to September period ran above official forecasts and keep up the pressure on finance minister Rachel Reeves as she prepares next month's key budget. "The UK government is in an unenviable position. And we know that, and investors know that. And we know that tax has to change and be moved up. That's been factored in," Guy Miller, chief market strategist, Zurich Insurance Group. "I wanted them to do this as quickly and as clinically as they could because it just removes that uncertainty. There's no reason to prolong it because the market's already pricing it," he said. Reeves has signalled that she will raise taxes and cut spending as she tries to stay on course to meet fiscal targets and avoid upsetting investors who have already pushed up British borrowing costs sharply. Reeves said last week she would like to have a bigger fiscal buffer to cope with volatile global markets, but creating one in her November 26 budget would involve tough trade-offs. Investors are also awaiting UK inflation data due on Wednesday. Economists polled by Reuters expect CPI inflation data for September to rise to 4% from 3.8% the previous month. https://www.reuters.com/world/uk/sterling-steadies-against-euro-after-uk-borrowing-overshoot-2025-10-21/