Europe’s fight to build a local EV and battery supply chain
The recent announcement of funding for 47 strategic project, in line with the EU’s CO2 targets for carmakers in force this year, suggests progress. But after the EU’s tariffs on Chinese EVs, and the US waging its own trade war with China, is Europe’s road to electrification faltering?
Join the Argus Battery Materials team — editor Tom Kavanagh, reporter Chris Welch and analyst Dylan Khoo — in discussing what lies ahead in this fast-evolving market.
Key topics covered:
- The EU’s €22.5bn for 47 critical minerals projects
- China’s investments in Europe’s EV supply chain
- What might a US-China trade war mean for Europe?
- Will the EU meet its CO2 targets for 2035?
Related news
Al Taweelah smelter sustains 'significant' damage
Al Taweelah smelter sustains 'significant' damage
London, 28 March (Argus) — Emirates Global Aluminium (EGA) said its Al Taweelah smelter "sustained significant damage" during an Iranian missile and drone attack on the Khalifa Economic Zone Abu Dhabi on Saturday, with several employees injured. Al Taweelah produced 1.6mn t of cast metal in 2025, according to the company, and had substantial metal stocks on the water when the US-Israeli attacks on Iran began, as well as stockpiles in some overseas locations. EGA is a major bauxite importer, bringing in 11.15mn t in 2025 and 10.65mn t in 2024, according to Kpler data, and is a significant Capesize charterer. Until mid-2025, the company relied heavily on Guinean bauxite, operating a mine in that country. But in May 2025 , Guinea's military government rescinded several mining licences — including EGA's — following a dispute over delays in construction of an alumina refinery required under the firm's mining agreement. Since then, EGA has turned to other suppliers, mainly Australia and Ghana. Al Taweelah's bauxite imports from Australia surged to 4.65mn t in 2025 from 750,000t in 2024, according to Kpler. Since the war began, EGA has tried to maintain Australian bauxite inflows to Al Taweelah via Fujairah. In mid March , the company was seeking a Capesize or Baby Cape vessel for a Gove–Fujairah shipment for 1–5 April, with onward land transport to Al Taweelah's alumina refinery, according to market participants. The cargo also carried an option to discharge in Kandla, India — likely due to increased risks in Fujairah waters amid the war. There is no new information about the fixture for this cargo. Some vessels destined for Al Taweelah are currently stuck because of the de-facto closure of the strait of Hormuz. The Baby Cape Amarantos , which loaded in Takoradi, Ghana, on 20 February, has been idling between Mozambique and Madagascar since 18 March, Kpler data show. The damage at Al Taweelah may weigh on freight rates, while pushing aluminium prices higher. But demand for aluminium is deteriorating as well, and war-fueled gains in London Metal Exchange (LME) aluminium prices have largely evaporated after hitting a multi-year peak on 12 March , as an unclear outlook for global demand clashes with supply shocks and technical trading impacts. Iranian steelmakers Khouzestan Steel (KhSC) and Mobarakeh Steel were hit by air strikes attributed to the US and Israel on Friday, which damaged storage facilities and power infrastructure, officials said. Iran was preparing retaliatory strikes on Gulf steel producers , according to Iran's Tasnim news agency, which is linked to the Islamic Revolutionary Guard Corps. By Andrey Telegin Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Gulf war may push beverage prices up
Gulf war may push beverage prices up
Houston, 28 March (Argus) — Two of the world's largest beverage makers warn that higher costs to their operations from the war in the Mideast Gulf — including higher prices for polyethylene terephthalate (PET) bottles — may soon be passed onto consumers. Both PepsiCo and Coca-Cola in the past week warned in corporate filings that higher feedstock costs and freight rates stemming from curtailed vessel traffic through the strait of Hormuz could lead to higher prices for their customers. "Our operations … including the distribution of our products and the ingredients of other raw materials used in the production of our products, may be disrupted if such [geopolitical] events persist for a prolonged period of time," PepsiCo said in its 2025 Annual Report, released 27 March. These higher costs could be passed on to customers, reducing "volume, revenue, margins and operating results." Coca-Cola also noted similar sentiments in its 10K filings on 23 March. "Geopolitical instability has in the past led, and may in the future lead, to logistical, transportation and supply chain disruptions," the company said. Some suppliers are located in regions facing that instability, so sustained disruption to manufacturing or product sourcing "... could increase costs and interrupt product supply, which could adversely impact our business." Most bottled drinks are packaged in PET bottles. The PET resin spot price in Europe has climbed significantly since the war started, up by about 65pc since late February. During the week ended 27 March Argus assessed the price at €1,450-1,600/t delivered, up from €890-960/t delivered in late February. One US PET producer has nominated a 10¢/lb increase for March PET resin, up about 17pc from the February contract. PET producer Indorama also announced an additional 5¢/lb war surcharge to all PET resin grades effective immediately in a letter to customers. "Due to the ongoing conflict in the Middle East, there have been significant cost increases in the major and minor raw materials for PET resin, driven by a continuous increase in crude oil price and severe supply chain disruption," according to Indorama's letter. "In addition, there have also been increases in inbound and outbound freight and transportation costs." Container freight costs for PET have increased by 30pc from 27 February to 20 March, closing at $83-103/t from East Asia to the US West coast, according to Argus data. Prices for aluminum, which is also used widely for beverage containers, rose multi-year highs in the first weeks of the war, but they have since fallen due to an unclear global demand outlook and other factors. Packaging costs are generally higher than the liquids they hold for companies such as Coca-Cola and PepsiCo. But they remain a relatively small component in the final costs. Distribution and logistics costs are often higher than the manufacturing costs, which expose these companies to the higher fuel costs caused by the war. By Nicole Johnson Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Mexico central bank cuts target rate to 6.75pc
Mexico central bank cuts target rate to 6.75pc
Mexico City, 27 March (Argus) — Mexico's central bank cut its benchmark interest rate by a quarter point to 6.75pc, its lowest level in four years, even as inflation was accelerating in the runup to the Mideast Gulf conflict. Policymakers, in their statement, said they weighed "the inflationary panorama", the current peso-dollar exchange rate, weak economic activity, along with the "monetary posture achieved", as appropriate to face the inflationary threats from a prolonged and escalating conflict in the Middle East. The cut, a surprise 3-2 split decision, renews the current rate cut cycle after pausing the rate at 7pc in the previous decision last month. The cut is the latest in a string of cuts that brought the rate down from 11.25pc in February 2024. The rate cut decision Thursday by Mexico's central bank, Banxico, followed a quarter point cut by Brazil's central bank on 18 March. The US Federal Reserve, the European Central Bank, the Bank of England and the Bank of Canada kept their target rates unchanged last week. Mexico's central bank noted headline inflation accelerated to an annual 4.63pc in the first half of March from 3.77pc at mid-January while core inflation was "practically unchanged", slowing to 4.46pc from 4.47pc over the same two-month period. Given the trend, Thursday's decision broke with analyst forecasts, with 23 of 37 banks surveyed in Citi Research's 20 March poll having called for the next cut to come at the 7 May meeting or later. The bank revised both headline and core inflation forecasts higher for the first three quarters of 2026, with CPI reaching 3.7pc in the third quarter, rather than 3.6pc in its previous estimate. Still, policymakers continue to expect inflation to converge to the 3pc target in the second quarter of next year. Looking ahead, the bank said it will "evaluate the appropriateness and timing for an additional reference rate cut" in place of the previous decision's wording, which signaled it would "evaluate additional reference rate adjustments." The shift in wording, said Mexican bank Banorte, "suggests that there is still one remaining reduction in this rate-cutting cycle," which would bring the rate to 6.5pc. By James Young Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Iranian steel plants damaged by air strikes: Update
Iranian steel plants damaged by air strikes: Update
Updates with confirmed MSC damage. London, 27 March (Argus) — Iranian steelmakers Khouzestan Steel (KhSC) and Mobarakeh Steel (MSC) were hit by air strikes attributed to the US and Israel on Friday, with damage to storage and power infrastructure, officials said. The attacks are expected to reduce Iran's billet and slab production and export capacity. KhSC — Iran's second-largest steelmaker, with crude steel output of 4.2mn t last year — sustained hits to two storage silos, Khuzestan governorate security deputy Velayat Hayati said. Initial assessments indicate no impact at blast furnaces 1 and 2, which were off line at the time. The facility reported no casualties or injuries. Esfahan-based MSC — which produced 7.1mn t of steel in 2025 — suffered damage to a substation, an alloy steel line and power units, according to on-site reports. Production checks are continuing, with potential short-term outages at some units, although full capacity details are pending expert evaluation. MSC confirmed late in the day that direct-reduction facilities and parts of its 914MW and 250MW power units in Esfahan were hit, with electricity supply to the steel plant likely to be affected. The incidents follow a strike on Foolad Atieh (Asia Steel) on Thursday, which killed one person and injured two. No official production-loss figures were released, but market participants expect minor domestic billet and slab price changes. An industry ministry spokesperson confirmed partial damage to the facility and operations are suspended for safety checks. "We are assessing damage, shipments are delayed," a source said. Several steel producers in Iran face gas and power shortages as a result of recent attacks on the South Pars gas field. Iran's semi-finished exports amounted to around 550,000 t/month in 2024, according to Worldsteel data — about twice the level reported under Iranian customs data for HS code 7207. Iran is preparing retaliatory strikes on Gulf steel producers, according to Iran's Tasnim news agency, which is linked to the Islamic Revolutionary Guard Corps. Plants listed include Saudi Arabia's Hadeed, the UAE's Emsteel, Qatar Steel, Kuwait Steel, Bahrain Steel and Israel's Yehuda Steel. Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.