Quarterly Battery Materials market update – July 2024

China's GWM to build second car factory in Brazil

Sao Paulo, 27 February (Argus) — Chinese automaker Great Wall Motor (GWM) will build a second car factory in Brazil, which could drive domestic flat steel demand up. GWM's new factory, in southeastern Espirito Santo state, will have a nameplate capacity of 200,000 vehicles/yr, four times larger than its first Brazilian plant , according to the state government. The facility is part of the company's R10bn ($1.9bn) investment plan in Brazil through 2032. GWM sells mostly electric vehicles (EVs) in Brazil, but it has a couple of internal combustion engine (ICE) models as well. It is still unclear which model the automaker will manufacture in the plant, but the Haval H4, a compact SUV, is a strong contender. Given the popularity of this car category in Brazil, demand for the H4 would likely be in line with the new plant's capacity. The H4 is sold in other Latin American countries as a hybrid vehicle under the name of Haval Jolion Pro. Since the factory will be built from scratch, it is difficult to pin an inauguration date as construction work in Brazil often faces delays. GWM has close ties with the Espirito Santo government, having used the state's main port, Vitoria, as an import hub for all the vehicles it brought from China to Brazil. GWM plant could drive domestic steel demand Construction is expected to use from 40,000-70,000 metric tonnes (t) of steel, according to the Espirito Santo government. Most of the flat steel used during the building phase will likely be sourced from domestic producer ArcelorMittal. The new factory aligns with the steelmarker's plans to build a cold-rolling mill in Tubarao — also in Espirito Santo — which is its largest plant in Brazil, the company told Argus . ArcelorMittal announced in 2025 a R4bn ($777.4mn) investment to boost steel output in Brazil, but it has yet to officially decide where to allocate the resources . The company expects to make a final decision by the end of the first quarter. The GWM project could signal that ArcelorMittal may ultimately favor Espirito Santo over expanding its Pecem plant, in northeastern Ceara state. Construction is also expected to use 200,000-350,000t of concrete. By Pedro Consoli and Isabel Filgueiras Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

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UK HRC discount to north EU expands

UK HRC discount to north EU expands

London, 27 February (Argus) — UK hot-rolled coil (HRC) prices have flipped to a large discount versus north European prices since Tata Steel UK closed its last blast furnace in September 2024. Argus ' UK HRC assessment has traded at an average discount of €62/t ($73/t) to the benchmark north EU HRC index this week. The actual price gap would be even bigger as the UK assessment is effective including extras, whereas the north EU index is base and would need extras and delivery charges added on top. Several factors have likely driven the increasing disparity. The gap has jumped considerably this year, likely because the EU's Carbon Border Adjustment Mechanism (CBAM) has increased the cost of importing into the EU, translating into higher domestic and import prices. UK imports of HRC have jumped considerably since Tata stopped its last blast furnace on 30 September 2024. Imports rose from around 770,000t in 2023 to 1.1mnt in 2024 and 1.4mn t last year. European import prices, on average, are lower than into the UK ( see chart ). UK values are skewed somewhat by expensive laser-plate clearing as HRC. But the cost of UK imports would typically be lower than the cost of production, given the age of Tata's assets and the fact the country is an exceptionally high-cost jurisdiction for iron and steelmaking. Some point to competitive prices from a local producer as one factor depressing the UK market — its prices are currently closer to £540/t ddp, whereas some of its EU counterparts are pushing for — but not obtaining — as high as £600/t ddp. Weak sheet prices are also more of a constraint in the UK than Europe, despite consolidation and high-profile failures in the service centre market in recent years. Some decoilers and service centres are still selling cut sheet at £540-550/t ddp in the UK, whereas north European prices are around £635/t ddp, while even higher prices are being achieved in southern Europe. European mill sources, bemoaning the gap, suggest they could effectively buy coil or sheet from the UK, and profitably sell it back into the EU market. Some traders are flipping to sheet sales into the EU from coil already, because, in some instances, dumping duties can be negated. The current price gap and malaise mean there could be an arbitrage to do this with UK material too, an avenue several will likely try to explore. By Colin Richardson UK HRC diff to EU €/t UK HRC import price v EU (customs data) £/t Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Argentina's senate approves glacier law reform

Argentina's senate approves glacier law reform

Sao Paulo, 26 February (Argus) — Argentina's senate approved a core reform in the country's glacier protection law, a landmark decision long pursued by the mining industry and President Javier Milei. In a tight vote, Argentina's senate ruled 40-31 in favor of reforming the law, narrowly exceeding the 36 votes needed for an approval. The bill now moves to the chamber of deputies, where it needs another approval vote to be sanctioned. Since Milei strongly backs the reform, his party and allies that usually side with the administration in big votes should make up the necessary majority to pass the bill. Still, another tight vote is expected, so the outcome remains uncertain. If approved, the country's provinces will now be able to decide which glaciers are important to their water resources and which are not. The "non-functional" glaciers would then be allowed to become mining sites. Reforms to the glacier protection law have been pitched several times, but this would be the first change in its text since it was sanctioned in 2010. The updated legislation is expected to be a major boost to Argentina's stagnant copper industry , as several resources of the red metal are found within the glaciers' perimeters. The country's mining secretary released a report in early February forecasting that Argentina would account for 6.1pc of the world's copper production by 2035 at over 1.5mn metric tonnes (t)/yr. Javier Milei's office said that law in its original form allows for misinterpretation that creates legal uncertainty, curtails investments and deprives provinces the right to regulate their natural resources. The original law, among other restrictions, forbids mineral exploration and extraction within the glaciers' perimeter, which is currently set by the Argentinian institute of nivology, glaciology and environmental sciences (IANIGLA) based on unclear criteria, Milei said on 14 November . After an hours-long debate, the senate passed the updated bill with strong support from mining provinces Mendonza, San Juan, Catamarca and Salta, and non-mining provinces such as Ciudad Autonoma de Buenos Aires and Tierra del Fuego — home to part of Patagonia. The decision, however, was far from unanimous, as those opposed included, but were not limited to, the Cordoba, La Rioja, Santa Cruz, and Buenos Aires provinces. Agustín Coto, a senator representing Tierra del Fuego, said that the IANIGLA would remain in control of the country's glacier inventory and would not be dismantled or defunded. "The provinces will now be able to remove or add [glaciers] from the inventory based on technical and scientific criteria," Coto said. "I find it valuable that [a law] recognizes that the provinces are not savages." Guillermo Andrada, a senator representing the Catamarca province, also defended the reform. Mining is Catamarca's main source of income. "There is a golden rule to what we are proposing: no one is to touch glaciers that act as a water reserve," he said, echoing the common argument among officials that defended the reform. Backlash is expected to follow The proposed reform has faced criticism from several fronts since it was introduced by Javier Milei on 14 November. Opponents say changes to the glacier protection law could affect Argentina's water supply. Meltwater from glaciers helps maintain river levels across the country and supports irrigation for agricultural production. Hours before the debate, Greenpeace activists entered the Argentinian Senate building but were removed after a brief confrontation with police. Inside the Senate, several lawmakers voiced their concerns with the reform during the debate. "This is not about mining," said Alejandra Vigo, a senator representing the Cordoba province. "This is about water; the most important resource Argentina has for our development and for the future of investments in our country." In early February, protests took place in more than 35 cities nationwide. Demonstrators argued that reducing protections for glaciers could affect river basins fed by Andean ice and glaciers' perimeters. Protests are expected to resurface now the reform has been approved. By Pedro Consoli Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

S Korea's SK Hynix invests $15bn in semiconductor plant

S Korea's SK Hynix invests $15bn in semiconductor plant

Singapore, 26 February (Argus) — SK Hynix will invest an additional 21.6 trillion Korean won ($15bn) to build new facilities for its first semiconductor fabrication plant currently under construction in the Yongin semiconductor cluster, the firm said on 25 February. The investment period will run over 1 March 2026-31 December 2030. This takes the total investment in the plant to W31 trillion, including W9.4 trillion announced in July 2024, the company said. SK Hynix will build five additional clean rooms with this investment, taking the total to six clean rooms. The opening of the first clean room has been moved forward to February 2027 from May 2027 to meet increasing semiconductor demand, the firm said. SK Hynix plans to build four semiconductor fabrication plants at the Yongin site, it said in 2024. This latest investment is in response to rapidly growing global demand for high-performance and high-density semiconductors on the back of expansion in the artificial intelligence (AI), data centre and high-performance computing sectors, SK Hynix said. The firm aims to strengthen supply chain stability and increase production capacity ahead of schedule to meet this demand, it added. This is in line with South Korea's plan to develop the world's largest semiconductor manufacturing hub . The hub is part of the country's efforts to increase the rate of self-sufficiency in the semiconductor supply chain to 50pc by 2030. South Korea also aims to capture 10pc of the global chips market. The country announced a W26 trillion investment in 2024 to support semiconductor research and development, workforce training and infrastructure, such as roads, water supply, and power, to accelerate the launch of the Yongin cluster. By Ariel Lee Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Australia’s Core Lithium sells stockpile to Glencore