Argus tungsten market update and outlook – June 2024

22/07/26

UK VAT cut widens EV charging access gap

London, 22 July (Argus) — The UK's decision to remove value added tax (VAT) from household electricity bills could make electric vehicle (EV) home charging more affordable but widen the gap between drivers with access to home charging and those who depend on public chargers. The tax cut was announced on 21 July by Prime Minister Andy Burnham and will reduce the VAT on household electricity bills from 5pc to 0pc from 1 October. Home charging is already the cheapest way to run an EV. Charging an EV at home in the UK cost around 7p/km in May, against 26p/km using ultra-rapid public chargers, a gap that is widening (see graph) . Around 77pc of UK EV drivers have access to a home charger, while the remaining 23pc rely on public charging infrastructure, according to estimates from charging data provider Zapmap. And across the UK as a whole, 67.2pc of UK households have access to a driveway or dedicated parking space suitable for installing home charging, according to consultancy Field Dynamics. This lack of access to home charging space could limit EV uptake, regardless of policies to make home charging more affordable. The tax cut therefore favours a group that is already over-represented among EV owners. Charging operators have previously argued that policy support can disproportionately benefit motorists able to charge at home, while drivers relying on public infrastructure face higher running costs. Public charging access is still growing. The UK had more than 121,000 public chargers at the end of June 2025, according to Zapmap, with most recent additions being higher-power units. And around one-quarter of households without driveways were within a five-minute walk of a public charger in 2024, up from 12pc in 2020, according to Field Dynamics estimates. The EU is facing a similar challenge as incentives continue to support EV uptake, but increasing adoption will depend on giving drivers without private parking access to convenient and affordable charging. In the EU, attention has increasingly shifted from charger numbers to network coverage. Public charging points in the EU reached more than 1.1mn this year, up from about 199,000 in 2020, driven particularly by growth in direct-current fast-charging infrastructure (see graph) . Germany and France have the most fast chargers, while the Netherlands continues to dominate lower-power AC charging as it focuses on residential charging (see graph) . EU countries have also moved ahead of charging targets set under the EU's Alternative Fuels Infrastructure Regulation (AFIR), which links charging deployment to EV uptake and coverage along major transport corridors. The EU has exceeded AFIR fleet-based charging targets by more than 180pc on average, while 79pc of the bloc's TEN-T core network — its main motorway routes — now meet distance-based requirements, according to clean energy think-tank Transport & Environment. EV charging buildout supports incremental demand for copper, aluminium and rare earth magnets used in charging cables, power electronics and motor components. By Chris Welch UK public and home charger buildout EV public chargers by speed Running costs - ICE versus EV pence per mile Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Find out more

India's Delectrik wins 100MWh VRFB storage project

India's Delectrik wins 100MWh VRFB storage project

Mumbai, 21 July (Argus) — India's state-owned NTPC Renewable Energy (NTPC REL) has awarded an engineering, procurement and construction contract to battery storage firm Delectrik Systems for a 100MWh vanadium redox flow battery (VRFB) energy storage system. The project will be developed by technology provider Delectrik Systems in partnership with Bondada Engineering at Gujarat's Khavda Solar Park, marking the country's first utility-scale deployment of the long-duration storage technology. The battery energy storage system (Bess) is scheduled to be commissioned in the second half of 2027, Delectrik told Argus on 21 July. The electrolyte will be manufactured at Delectrik's Gujarat facility, while the cell stacks will be produced at its Gurugram plant, chief executive Vishal Mittal told Argus , supporting domestic manufacturing of key project components. VRFBs store energy in liquid vanadium electrolyte while electricity is generated through cell stacks, enabling longer-duration storage by independently scaling energy capacity and power output. The project is expected to be India's first grid-scale, non-lithium Bess project, broadening the country's storage technology mix beyond lithium-ion batteries that dominate current deployments, the company said. Delectrik expects additional utility-scale VRFB opportunities in India over the next 12-24 months, including government tenders and commercial and industrial projects, Mittal said. The company pointed to a 120MWh VRFB tender issued by state-owned Gujarat Industries Power (GIPCL), for which bidding has closed and an award is expected in the coming weeks. Delectrik previously deployed a 3MWh VRFB demonstration project for NTPC at Greater Noida in 2025. India has 35.8GWh of Bess capacity under implementation as of March, according to the power ministry. The Central Electricity Authority's National Electricity Plan (2023) projects a requirement of 208GWh of Bess by 2030 to support the integration of growing renewable energy capacity into the grid. By Keertiman Upadhyay Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

China's CATL invests in hydro on stricter battery rules

China's CATL invests in hydro on stricter battery rules

Beijing, 21 July (Argus) — China's largest battery producer, CATL, plans to invest in a hydropower project in Yajiang county, Ganzi prefecture, Sichuan province, through a joint venture (JV) with state-owned power producer SDIC Power, in a move that could help secure renewable electricity supply and reduce the carbon footprint of its battery products. CATL and SDIC Power will establish a JV, Yalong River Yagen Hydropower Development, to develop a second hydropower station downstream of an existing project on the Yalong River, SDIC Power said on 21 July. The project has a total planned investment of 33.39bn yuan ($4.66bn), with CATL holding a 10pc stake in the Yagen JV. Construction is expected to take around 101 months, with the first generating unit scheduled to enter operation in 2035 and full commissioning targeted for 2036. The station will be capable of replacing 2.664GW of coal-fired and natural gas-fired power generation capacity once commissioned, SDIC power said. Based on thermal-equivalent calculations, the project is expected to save approximately 2.535mn t/yr of standard coal and 2.086bn m³/yr of natural gas, while reducing CO2 emissions by around 4.51mn t/yr. The investment highlights growing efforts by battery manufacturers to secure access to renewable electricity as they seek to lower emissions across their supply chains. The project could help CATL lock in long-term green power supplies and support its broader strategy of reducing the carbon footprint of battery production. CATL has increasingly emphasized the commercial value of emissions reductions and low-carbon manufacturing, according to sources familiar with the matter, as battery producers face stricter sustainability requirements from overseas customers and regulators. Earlier this year, CATL invested Yn10bn to establish a zero-carbon technology company in Xiamen. In June, the company's EnerD+ energy storage products received one of the first certifications issued under China's pilot programme for product carbon-footprint labelling. The certification was the first, and so far the only, national-level carbon-footprint certification awarded to a lithium battery product in China. The EU is one of the major export markets for Chinese battery suppliers. The EU's Carbon Border Adjustment Mechanism (CBAM) and the bloc's new battery regulation have introduced more stringent requirements for carbon footprint reporting and emissions performance across battery supply chains. The EU announced in July 2023 that it will require electric vehicle (EV) and industrial batteries with a capacity greater than 2kWh placed on the EU market to be electronically registered from 18 February 2027. This registration will take the form of a battery passport featuring an identification QR code and CE marking. The hydropower investment also reflects a broader trend of battery manufacturers seeking greater control over upstream resources, energy supply, and decarbonisation pathways as global demand for EVs and energy storage systems continues to expand. Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Sinopec extracts lithium from oilfield-produced water

Sinopec extracts lithium from oilfield-produced water

Beijing, 16 July (Argus) — Chinese state-owned oil and chemicals company Sinopec completed a pilot trial of its proprietary lithium extraction technology using produced water from the Yuanba gas field — operated by its southwest oil and gas subsidiary. The technology, known as the "rapid adsorption and desorption" process, was independently developed by Sinopec's engineering and construction subsidiary, the company said today. The pilot completed the entire process from lithium extraction to precipitation and drying, producing industrial-grade lithium carbonate. The technology can cut production costs by more than 35pc compared with conventional lithium extraction processes, while shortening the processing route and improving extraction efficiency, Sinopec said. It marks a key technological breakthrough in integrating oil and gas production with new energy resources. The development could provide an additional source of lithium supply from oilfield-produced water, complementing traditional lithium production from brines and hard-rock deposits, it said. Oilfield-produced water refers to formation water that is brought to the surface together with oil and gas during petroleum or natural gas extraction. Its composition can vary significantly depending on geological conditions and the stage of reservoir development. For oil and gas fields located within lithium-rich mineral belts, lithium extraction from produced water could offer considerable commercial potential. Global lithium demand is expected to reach 3.5mn t of lithium carbonate equivalent (LCE) by 2036, driven by continued growth in the electric vehicle (EV) and energy storage system (ESS) sectors, according to Argus Consulting forecasts. Market participants have increasingly focused on alternative lithium resources as China seeks to strengthen domestic supply security. China is the world's largest consumer of lithium, but accounts for only around 7pc of global lithium resources and relies on imports for approximately 70pc of its lithium supply, according to industry data quoted by Sinopec. Sinopec's move highlights a wider shift by traditional energy companies into new energy sectors as they diversify their businesses in response to government decarbonisation targets and the accelerating global energy transition. Sinopec signed an agreement with leading new energy vehicle (NEV) manufacturer BYD in June to jointly develop fast-charging infrastructure — a move expected to support adoption of NEVs. Sinopec has also invested in China's largest battery producer, CATL, to help reach its target of building 10,000 EV battery exchange stations. Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

China's EV fleet nears 50mn in June on rapid adoption