Japan adds funding for Rapidus semiconductor project

: Metals
26/06/05

The Japanese government has invested an additional ¥150bn ($960mn) in domestic semiconductor producer Rapidus through the Information-technology Promotion Agency (IPA), the economy, trade and industry ministry (Meti) said today.

Additional support will help fund investment in equipment for the mass production of 2-nanometre semiconductors, as well as research and development of next-generation 1.4nm technology, the government said.

The investment follows a ¥100bn injection in fiscal year 2025-26 (April 2025-March 2026), bringing total government investment in the company to ¥250bn. The government also plans to provide subsidies of ¥631.5bn in fiscal year 2026-27 and around ¥300bn in fiscal year 2027-28, Meti said.

Rapidus aims to begin mass production of 2nm semiconductors in fiscal year 2027-28 and start advanced packaging production in fiscal year 2028-29. Despite continued government backing, the company is expected to require additional private-sector funding, targeting around ¥1tn in private equity and more than ¥2tn in private financing.

Japan has expanded support for its semiconductor industry since designating semiconductors as a critical material in 2022, citing economic security concerns and the need to strengthen domestic chip production.

The project is a key pillar of the government's growth investment programme, Japan's trade and industry minister Ryosei Akazawa, said at a press conference today. "This project is a national undertaking that must succeed for the benefit of Japan. We will continue to make every effort to ensure its success," Akazawa said.

By Fumito Nagase

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26/06/04

EU finance ministers eye agreement on CBAM changes

Brussels, 4 June (Argus) — EU finance ministers are seeking agreement on their position for legal changes to the bloc's carbon border adjustment mechanism (CBAM), extending the scope to more downstream products and adding anti-circumvention measures. Final tweaks and clarifications specify the European Commission's power to suspend CBAM for problematic sectors. The text drawn up for finance ministers, who meet on 12 June, takes account of a majority that has spoken out against giving the commission broad empowerment to temporarily remove specific goods from CBAM under a new article 27a. Diplomats noted the risks of "jeopardising" the effectiveness of CBAM and the "imprecise" scope of the powers. To bridge differences, Cyprus, chairing discussions between diplomats, has built on a previous draft to specify the conditions that the commission could use to trigger CBAM suspension. This includes average non-CBAM-related import price increases of more than 50pc compared with average prices for the same CBAM goods over the previous 10 years. Price increases would need to be sustained over a period of at least six months. If finance ministers agree on the text on 12 June, EU states would be ready for negotiations over a final legal draft with the European Parliament after summer. Cypriot diplomats suggested article 27a remains in the European Council's draft position as a "good basis" for the talks. During a first discussion, members of parliament's environment committee broadly supported deleting the new article 27a. But some members have called for partial or full CBAM suspension . The committee is expected to vote on the issue on 6 July, followed by the whole parliament in early September. Discussions on CBAM's suspension have continued following the commission's adoption last month of a fertilizer action plan, including measures such as financial relief for farmers, and assessing stockpiling options for key fertilizers and inputs. By Dafydd ab Iago Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Australian state adds funding for Whyalla steelworks

26/06/04

Australian state adds funding for Whyalla steelworks

Sydney, 4 June (Argus) — The South Australian (SA) state government will provide A$319mn ($228.5mn) in additional funding over the next two years to support the sale and operations of the 1.2mn t/yr Whyalla steelworks, it said in its 2026-27 budget today. The SA government placed the steelworks into administration in February 2025. It has since received over A$2.88bn in state and federal funding, which the governments say is needed to secure sovereign steelmaking capabilities and support low-emissions manufacturing. The SA government also allocated A$6.5mn over two years to support Whyalla's transition towards low-carbon steelmaking. The state government added that its 200PJ gas deal with Santos will support the steelworks' transformation. The deal will see Santos deliver about 20 PJ/yr (534mn m³/yr) to the Whyalla steelworks under a 10-year binding term sheet, starting in 2030. Santos' gas will enable Whyalla to deploy direct reduced iron (DR) technology to process magnetite ore into low-carbon iron, chief executive Kevin Gallagher said on 20 February, cutting emissions by about 50pc compared to the former coal-fired blast furnace operations. The state government on 27 May shortlisted two bidders to purchase the steelworks — Australian independent M Resources and India's Jindal Steel. By Emma Partis Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

BHP trials Australian tallow biodiesel for biobunkering

26/06/04

BHP trials Australian tallow biodiesel for biobunkering

Sydney, 4 June (Argus) — Australian tallow-based biodiesel was blended in Singapore for the first time and used onboard a bulk carrier, as part of Australian mining group BHP's pilot program aimed at reducing maritime emissions. Mining giant BHP trialled the fuel in May, using a 100pc biodiesel blend comprising 50pc Australian-origin tallow methyl ester (TME) and 50pc used cooking oil methyl ester (Ucome), the firm said on 3 June. The blend is expected to deliver around a 79pc reduction in lifecycle greenhouse gas (GHG) emissions per voyage compared with conventional very low-sulphur fuel oil. The biodiesel was used onboard the Berge Lyngor , an iron ore carrier that departed Port Hedland, Western Australia, for China on 17 May and partially discharged its cargo on 31 May, according to Kpler data. Around 500t of TME was sourced from producer Just Biodiesel's 60mn litre/yr plant on the New South Wales–Victoria border and exported to Singapore's bunkering hub in approximately 25 isotanks by biofuel supplier HAMR Energy, Just Biodiesel told Argus today. Japanese trading firm Mitsui's Singapore energy trading arm supplied the Ucome component and carried out blending. The project was co-funded by the Maritime and Port Authority of Singapore under the Maritime Innovation and Technology Fund. By Grace Dudley Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Coal gasification push in Indian steel faces hurdles

26/06/03

Coal gasification push in Indian steel faces hurdles

Mumbai, 3 June (Argus) — Coal gasification may help Indian steelmakers reduce dependence on imported fuels, but its commercial viability depends on how effectively the industry addresses cost, coal quality and technological constraints, industry experts said. The process has seen increased traction in recent months as India looks to reduce dependence on imported natural gas, ammonia and other products following the US-Iran war that disrupted trade flows from the Mideast Gulf. The Indian government in May approved a 375bn rupee ($3.9bn) incentive package to accelerate coal gasification projects, under which financial support of up to 20pc of plant and machinery costs will be provided. Coal gasification converts coal to synthesis gas, or syngas, which in turn can be used to produce fuels and chemicals domestically. Scaling up the process would enable India to use its abundant domestic coal reserves — estimated at about 401bn t — to secure energy supply for major industries. There are different pathways to use syngas in the steel sector, one of which is the production of direct-reduced iron (DRI) — a key feedstock for steelmaking. Indian producer Jindal Steel's nearly 2mn t/yr Angul facility, which was commissioned in 2014, is the first commercial plant globally to use coal gasification-derived syngas for DRI production and is the only such plant operating at a commercial scale in India. The company also started using syngas at its steel galvanizing and colour coating units earlier this year to offset natural gas and propane shortages. Over time, coal gasification is expected to reduce reliance on imported metallurgical coal by enabling syngas-based DRI production, thereby lowering dependence on coke-intensive blast furnaces. However, industry participants told Argus that fully substituting metallurgical coal remains challenging. Jindal has also introduced syngas into its blast furnace — something which will help the company cut down on the use of pulverized coal injection (PCI), Jindal Steel's sustainability and decarbonization head Naveen Ahlawat said at a coal ministry roadshow on 28 May. "We have a very strong view that it will reduce our PCI consumption by 20-30pc as we move forward," Ahlawat said. Big investments, slow progress But coal gasification projects require hefty upfront capital investments and significant water consumption. Additionally, Indian domestic coal has 30-45pc ash content, making it less suitable for gasification using imported technologies. This underscores the need to set up coal washeries and to scale up indigenous technologies better tailored to domestic coal. Government documents show other gasification projects are yet to take off, with Talcher Fertilizers' plant in eastern India's Odisha state facing delays in construction. The plant plans to use coal gasification to produce 1.27mn t/yr of urea. "We need to develop a business model for coal gasification, by aligning plant location, detailed feedstock assessment, gasification technology, and downstream product mix," gasification and decarbonisation expert Gaurav Verma told Argus. A technically and commercially viable model can then serve as a "template" for accelerating gasification projects while reducing development risks, Verma added. The green steel question The emissions intensity of DRI produced in coal-based rotary kilns and syngas-based DRI is very similar, the steel ministry noted in its green steel roadmap. Lowering the emissions intensity of coal gasification-based DRI will require carbon capture and storage units (CCUS) for CO₂ generated during the process, increasing costs for steelmakers. For projects which have a CCUS component, companies can approach the ministry of power for additional support under the CCUS scheme announced in the latest union budget , secretary of the coal ministry, Vikram Dev Dutt, said during the roadshow. Still, industry experts believe that coal gasification does not indicate a detour from steel decarbonization but serves as a stepping stone to advanced technologies such as green hydrogen, which are currently at a nascent stage. "Coal gasification is a transitional industrial strategy for resource-rich economies like India, where steel demand is growing rapidly while dependence on imported coking coal and LNG remains structurally high," mining and steel sector expert Hridaya Mohan said. "The objective is not to delay decarbonisation, but to create a practical bridge between today's resource realities and tomorrow's low-carbon steelmaking technologies," Mohan added. By Amruta Khandekar Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

US May factory activity quickens to 4-year high: ISM

26/06/01

US May factory activity quickens to 4-year high: ISM

Houston, 1 June (Argus) — US manufacturing activity expanded in May at the fastest pace in four years, with production and demand indicators growing, even as factory purchasing managers expressed concerns about the Iran war and rising prices. The manufacturing purchasing managers index rose to 54 in May, up from 52.7 in April and the highest since May 2022, the Institute for Supply Management (ISM) said in its latest survey results. Readings over 50 signal growth, while those below that level point to contraction. The new orders index rose to 56.8 in May, up from 54.1 in April, marking a fifth month of gains following four months of contraction. ISM said 25pc of respondents' comments were positive while 69pc were negative. The Iran war was mentioned in 42pc of comments and tariffs in 18pc. Price volatility was mentioned in 57pc of comments. "Despite the positive momentum for demand, sentiment remained dominated by the war in Iran," Oxford Economics said in a note on the ISM report. "The strait of Hormuz closure is driving up oil, fuel, and raw material costs, creating shipment delays and price hikes across industries." The production index rose by 0.9 to 54.3, ISM reported. The prices index slipped to 82.1, still in solid expansion. The employment index rose by 2.2 to 48.6, signaling a diminishing rate of contraction, with only half of respondents hiring. The supplier deliveries index was unchanged at 60.6 from April after rising in each of the prior five months. The unchanged reading marked continued slower deliveries, which is typical of improving economic activity and rising customer demand. Customers' inventories rose to 42.7 in May from 39.1, remaining "too low", according to ISM, which is considered a positive sign for future demand. The new export orders index rose by 2.7 points to 50.6, returning to growth, while the import index rose to 53 from 50.3. "Impact of Iran conflict starting to directly and negatively impact cost of supply chain," a transportation equipment survey respondent said. "Oil and related commodities are escalating in price." "The Middle East conflict is triggering shipment delays and uncertainties," a machinery respondent said. "Elevated gas prices and inflation will surely impact our purchases. However, over the last quarter, we've seen increased demand that was unexpected." By Bob Willis Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

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