EU end-of-life vehicles regulation sets recycled content targets for cars

Recycled content for cars

The EU end-of-life vehicles regulation will set recycled content targets for cars across the bloc. The deal phases in recycled plastics content in new vehicles over the next decade. Therefore, the EU end-of-life vehicles regulation reshapes how automakers source plastics, steel, and aluminium.

The European Parliament and EU states reached a provisional agreement on the rules. The plan sets 15% recycled plastics in six years. It then rises to 25% in ten years. Meanwhile, 20% of those plastics must come from end-of-life vehicles or reused components.

Recycled steel and aluminium targets move to a feasibility phase

Targets for recycled steel and aluminium will follow later. The European Commission will run feasibility studies first. As a result, the EU end-of-life vehicles regulation creates a staged pathway for metal recycling mandates.

This approach gives industry time to validate scrap availability and quality. However, it still signals future demand for low-carbon secondary aluminium and recycled steel. Therefore, suppliers should prepare for tighter traceability and mass-balance scrutiny.

Producer responsibility and export rules tighten material retention

The agreement expands collection and depollution rules to more vehicle categories. It will cover heavy-duty vehicles, motorcycles, and special purpose vehicles. Meanwhile, the regulation will introduce a cross-border extended producer responsibility scheme three years after entry.

Manufacturers will carry financial and organisational responsibility across the vehicle lifecycle. The rules also aim to distinguish used vehicles from end-of-life vehicles more clearly. Five years after entry, the EU will ban exports of non-roadworthy used vehicles.

The Metalnomist Commentary

This policy pushes the auto supply chain toward circular materials at scale. However, recycled aluminium and steel targets will hinge on scrap sorting and clean-stream capacity. Therefore, early movers in certified recycling and traceable alloys gain leverage.

BYD EV Sales Recover in May as Export Demand Offsets China Weakness

BYD

BYD EV sales returned to year-on-year growth in May as surging overseas demand offset continued weakness in China. The company sold 383,453 new energy vehicles during the month, up 0.3% from a year earlier.

BYD EV sales had declined for consecutive months since October 2025 as domestic policy changes, weaker incentives and government pressure against aggressive price competition weighed on China’s automotive market.

BYD EV sales are now increasingly dependent on international markets. Exports jumped to 160,644 units in May from 89,047 a year earlier, showing how rapidly the company is building a global sales base.

The recovery also highlights a broader shift in China’s EV industry. Domestic competition remains intense, while manufacturers are increasingly using overseas markets to absorb expanding production capacity.

Exports Become BYD’s Main Growth Engine

BYD sold 376,990 passenger NEVs in May and another 6,463 commercial vehicles. Battery electric vehicle sales fell by 2.8% year on year to 198,674 units, while plug-in hybrid sales rose by 3.3% to 178,316 units.

The split shows that plug-in hybrids continue to play an important role in BYD’s product mix. PHEVs can appeal to buyers that want electrification without relying entirely on charging infrastructure.

China classifies battery electric vehicles, plug-in hybrids and fuel-cell vehicles as new energy vehicles. For battery material demand, however, the distinction matters because BEVs generally require larger battery packs than PHEVs.

BYD’s January-May NEV sales fell by 20% year on year to 1.4mn units. The decline followed government and industry efforts to reduce destructive price competition in China’s vehicle market.

The rollback of vehicle purchase tax incentives from 1 January also weakened domestic demand. At the same time, major automakers have committed to paying suppliers within 60 days to improve financial stability across the supply chain.

Exports are increasingly compensating for that pressure. Brazil has become one of BYD’s most important international markets and is now the largest destination for Chinese NEV exports.

Easing import restrictions in markets including Canada could provide additional export opportunities. This strengthens the case for Chinese automakers to continue expanding assembly, logistics and distribution networks overseas.

EV Export Growth Supports Battery Materials Demand

Higher oil prices have also improved the relative economics of electric vehicles. Rising crude prices since the escalation of Middle East tensions have increased operating costs for combustion-engine vehicles and strengthened EV competitiveness.

This can support demand for lithium, graphite, copper and other battery materials if EV exports continue to rise. However, the material impact will depend on the mix between BEVs and smaller-battery plug-in hybrids.

BYD’s shift also matters for the wider automotive metals market. Growing EV output supports copper demand through motors, wiring and power electronics, while alu

minium remains important for lightweight structures and battery enclosures.

The company has been fully committed to electrified vehicles since ending production of gasoline-only cars in March 2022. BYD sold 4.626mn NEVs in 2025, up 8.3% from the previous year.

The challenge now is geographic balance. Domestic growth is slowing, while overseas markets are becoming more important to utilisation rates and future production growth.

That shift could accelerate localisation outside China. As export volumes rise, BYD and other Chinese automakers may increasingly invest in overseas assembly and regional supply chains to manage tariffs, logistics and local-content rules.

The Metalnomist Commentary

BYD’s May recovery shows that China’s EV growth story is becoming increasingly export-driven. For battery metals, the key variable is no longer only Chinese vehicle sales, but how quickly Chinese manufacturers can convert overseas demand into sustained BEV and PHEV production growth.

Shanghai Extends Free License Plates for EVs Through 2025 to Boost NEV Adoption

Shanghai EV, Free License

Policy extension aligns with China’s broader push for greener, smarter vehicle consumption

Shanghai has extended its free license plate policy for new energy vehicles (NEVs) until the end of 2025. The move supports national efforts to replace older internal combustion engine (ICE) vehicles with cleaner alternatives and ease urban emissions.

The city continues to exempt NEV buyers from license plate auction fees, which remain mandatory for conventional vehicles. With over 5 million vehicles on its roads, Shanghai aims to encourage faster turnover of aging cars while reducing emissions and congestion in line with national climate goals.

Beijing and other top-tier cities ramp up NEV incentives

China’s central government confirmed in January 2025 that it would continue subsidies for both NEVs and ICE vehicles. These incentives aim to stimulate domestic demand and replace older, less efficient vehicles.

On 24 January, the Ministry of Commerce released a plan encouraging local governments to ease vehicle purchase restrictions through 2027. Major cities including Beijing, Guangzhou, and Shenzhen are adjusting quotas to prioritize NEV adoption. Beijing, for example, will raise its NEV purchase quota in 2025.

These changes form part of a broader strategy to optimize vehicle ownership systems in high-density cities where congestion is a persistent challenge.

NEV market continues to grow nationwide

As of the end of 2024, China had 31.4 million NEVs, comprising battery electric vehicles (BEVs), plug-in hybrids, and fuel cell vehicles. BEVs account for 22.09 million of that total, according to government data.

This figure represents 8.9% of China’s entire automobile population and reflects the country’s accelerating transition toward low-emission transport. Continued policy support from cities like Shanghai will likely further boost NEV sales and domestic battery demand in 2025.

Honda EV Sales Target Revision Prioritizes Hybrid Electric Vehicles by 2030

Honda EV

Honda EV sales target underwent significant downward revision as the Japanese automaker adjusted its 2030 global electric vehicle strategy amid market uncertainty. Honda EV sales target now falls below 30% of total vehicle sales by 2030, representing a strategic shift toward hybrid electric vehicles (HEVs) as the primary powertrain in the company's energy transition approach, reflecting broader industry challenges from slowing EV adoption and shifting regulatory environments.

Strategic Pivot Toward Hybrid Technology Dominance

Honda EV sales target revision accompanies ambitious hybrid vehicle expansion plans targeting 2.2 million HEV units within 3.6 million total annual vehicle sales by 2030. The automaker will launch 13 next-generation hybrid models globally over four years beginning in 2027, demonstrating substantial commitment to hybrid technology advancement. This strategic pivot addresses market realities including slowing EV demand, evolving regulations, and changing trade policies affecting electrification timelines.

Meanwhile, Honda plans significant hybrid system enhancements to improve range and efficiency while reducing costs by over 30% by 2028 compared to current models. These improvements target competitive positioning against both traditional internal combustion engines and full battery electric vehicles. The cost reduction strategy enables broader hybrid adoption across Honda's global vehicle lineup while maintaining profitability margins.

HONDA SALOON

Regional Market Adaptation Drives Technology Development

However, Honda's approach varies significantly across key regional markets reflecting local demand patterns and regulatory requirements. In North America, the company will develop specialized hybrid systems for large vehicles combining powerful performance with high efficiency for spacious models launching in the latter 2020s. This regional focus addresses American consumer preferences for larger vehicles while meeting efficiency standards.

Therefore, China market strategy involves partnerships with local technology providers including autonomous technology startup Momenta for next-generation Advanced Driver Assistance Systems (ADAS) development. All future Honda models sold in China will feature locally-adapted ADAS technology addressing specific regional driving conditions and regulatory requirements. This localization approach demonstrates Honda's commitment to market-specific technology solutions.

Advanced Technology Integration Supports Competitive Positioning

Furthermore, Honda will develop next-generation ADAS for high-end EVs and HEVs launching in North America and Japan by 2027. These advanced systems represent critical differentiators in increasingly competitive automotive markets where autonomous capabilities influence consumer purchasing decisions. The technology integration spans both electric and hybrid powertrains, maintaining Honda's competitive positioning across multiple vehicle categories.

As a result, Honda's revised strategy reflects pragmatic adaptation to evolving automotive market dynamics while maintaining technological leadership across electrification spectrum. The emphasis on hybrid technology provides flexibility during uncertain transition periods while supporting regulatory compliance and consumer acceptance. This balanced approach positions Honda advantageously for various electrification scenarios across global markets.

The Metalnomist Commentary

Honda's strategic recalibration toward hybrid vehicles reflects broader automotive industry recognition that the transition to full electrification may proceed more gradually than initially anticipated, particularly as infrastructure limitations and consumer adoption patterns create market headwinds. The company's focus on cost reduction and regional adaptation demonstrates sophisticated understanding of diverse global market requirements, positioning Honda to capitalize on hybrid technology's bridging role during extended electrification timelines.

China to Boost NEV Use in Government Departments

China EV

In an effort to accelerate its energy transition and meet ambitious decarbonisation goals, China has mandated a significant increase in the use of new energy vehicles (NEVs) across government departments. This move aligns with the country's broader strategy to reduce its carbon footprint and transition to cleaner, more sustainable transportation options.

NEV Purchase Requirements for Government Departments

The Ministry of Finance has issued new guidelines stipulating that at least 30% of all new cars purchased by government departments in 2025 must be NEVs, which include battery electric vehicles (EVs), plug-in hybrid electric vehicles (PHEVs), and fuel cell vehicles (FCVs).

For government cars with confidential communication systems, typically used on fixed routes and within urban areas, the mandate is even stricter, with a requirement for 100% of these vehicles to be NEVs. Additionally, departments are now encouraged to prioritize renting NEVs when acquiring vehicles for official use.

By the end of 2022, China had approximately 5 million government-owned cars, and this new initiative will have a substantial impact on the overall market share of NEVs in the country’s public sector.

A Major Step in China’s NEV Transition

China has been a global leader in NEV adoption, with sales of electric vehicles surging over the past decade. In 2024, the country is expected to sell nearly 12 million NEVs, marking a 20% increase over 2023. The government’s latest directive further solidifies its role as a major player in the global electric vehicle (EV) market.

China’s policy of incentivizing NEV adoption, along with its ambitious decarbonisation targets, is expected to support continued growth in the sector. The push for government departments to transition to NEVs is not only a step toward meeting environmental goals but also a demonstration of the country's commitment to advancing green technologies.

Market participants predict that the Chinese government will continue to implement supportive policies in the coming years to boost domestic demand for NEVs and navigate the growing geopolitical pressure from other nations.

China Extends NEV and Electronics Incentives into 2025, Boosting Metals Demand

China New Energy Vehicles

The Chinese government has announced the continuation of incentives in 2025 to stimulate consumption of new energy vehicles (NEVs) and electronics, key downstream sectors for nonferrous metals.  This decision aims to bolster demand in these crucial industries and support economic growth.

NEV Subsidies and Expansion of Eligible Vehicles

The government will continue offering subsidies for NEV purchases. Consumers who scrap an old vehicle to buy a new NEV will receive a subsidy of up to 20,000 yuan ($2,729), while those trading in an old vehicle will receive up to 15,000 yuan.  Importantly, the minimum standard for old internal combustion engine vehicles eligible for the scrappage subsidy has been eased to the "National IV Emission" standard from National III, expanding the program's reach. These subsidies represent a significant portion (8-11%) of the average NEV price in China, according to industry estimates. NEVs in China include battery electric vehicles (EVs), plug-in hybrids, and fuel cell vehicles.  Beijing will also provide an 80,000 yuan subsidy for replacing new energy buses over eight years old or bus power batteries past their warranty, accelerating the electrification of public transport. Subsidies will also promote electric bicycle replacement in 2025.

Impact on Metals Markets

These incentives are an extension of the program launched last March to promote the replacement of old industrial equipment and consumer products, with NEVs being a central component. China's NEV sales in 2024 are projected to reach nearly 12 million units, a 20% increase year-on-year, with government incentives playing a crucial role.  The NEV industry is a major consumer of nonferrous metals.  

Each NEV typically uses over 200kg of metal minerals, including an estimated 50-70kg of lithium carbonate and 0.75kg of praseodymium-neodymium.  In 2025, subsidies will also be available for new electronics purchases (phones, tablets, smartwatches, etc.) up to 500 yuan (for devices under 6,000 yuan) and for replacing home appliances (refrigerators, washing machines, TVs, etc.) up to 2,000 yuan. The extension of these incentives is expected to provide support to metals markets facing pressure from oversupply or weak demand amid an economic slowdown.

China's BYD Signs Multi-Year Agreement to Supply Uber with Electric Vehicles Globally

In a landmark deal, Chinese automaker BYD has inked a multi-year agreement to supply ride-sharing giant Uber with nearly 100,000 electric vehicles (EVs) worldwide. The partnership, announced on Wednesday, aims to provide Uber drivers with EVs at a reduced price, along with various financial incentives. The rollout of these vehicles will commence in Europe and Latin America.

BYD and Uber also plan to offer discounted options for car charging, maintenance, insurance, as well as financing and leasing solutions. This collaboration is set to bolster Uber's sustainability goals by enhancing the availability and affordability of electric vehicles for its drivers globally.

In 2023, BYD solidified its position as the world’s leading seller of new energy vehicles, having sold over 3 million units, which include battery EVs, plug-in hybrids, and fuel-cell vehicles.

ChargeScape Rivian Partnership Brings Large EV Batteries Into Grid Services

ChargeScape

ChargeScape Rivian partnership will connect Rivian electric vehicles to utility-managed charging programmes, turning large EV batteries into flexible grid assets that can help manage peak electricity demand.

ChargeScape Rivian partnership is strategically important because Rivian vehicles carry some of the largest battery packs in the US passenger EV market. Earlier R1 models offer capacity of up to 141kWh, while newer R2 models carry around 88kWh.

ChargeScape Rivian partnership also creates a newno revenue model for EV owners. Drivers participating in eligible programmes could earn as much as $3,000/yr by allowing utilities to manage charging or sell stored electricity back to the grid during periods of high demand.

The agreement strengthens the convergence between transportation and electricity infrastructure, creating a distributed energy storage network without requiring utilities to build every battery themselves.

Large EV Batteries Become Flexible Grid Assets

Vehicle-grid integration allows utilities to shift EV charging away from peak periods and, where bidirectional charging is available, draw electricity from vehicle batteries when the grid needs additional supply.

This turns parked EVs into distributed storage assets rather than passive electricity consumers.

Rivian's large battery packs make the economics particularly interesting. A single 141kWh vehicle contains significantly more storage than many residential battery systems, creating substantial flexibility when thousands of vehicles participate together.

Utilities can use this capacity to reduce peak demand, absorb excess renewable generation and improve grid stability.

For EV owners, managed charging creates an opportunity to monetise battery capacity while vehicles are parked. The financial value depends on electricity prices, utility programme rules, battery availability and the frequency of grid participation.

ChargeScape already connects automakers with utilities including DTE, Silicon Valley Power and Xcel Energy. Its automotive shareholders include BMW, Ford, Honda and Nissan.

The platform says its existing partnerships provide access to more than 5mn EVs across the US and Canada, giving it the potential to aggregate substantial distributed battery capacity.

Vehicle-to-Grid Growth Could Reshape Battery Economics

The expansion of vehicle-grid integration changes the economic role of EV batteries. Battery packs can generate value not only through transportation but also through electricity markets.

At sufficient scale, connected vehicles can operate similarly to a virtual power plant, combining thousands of distributed batteries into one controllable resource.

This could reduce the need for some dedicated stationary storage while increasing the utilisation of batteries already manufactured for vehicles.

The model also strengthens demand for sophisticated battery management systems, power electronics, bidirectional chargers and grid software.

For battery materials, the impact is more complex. Greater economic value per battery could improve EV ownership economics and support vehicle adoption, strengthening long-term demand for lithium, graphite, nickel, copper and other materials.

At the same time, better utilisation of existing batteries can increase the amount of energy storage available to grids without requiring an equivalent increase in standalone battery installations.

The ChargeScape-Rivian partnership therefore represents a broader shift toward integrating transportation batteries directly into electricity infrastructure.

The Metalnomist Commentary

EV batteries are evolving from transportation components into grid infrastructure. If vehicle-to-grid programmes scale, automakers and utilities could unlock gigawatt-hours of distributed storage without building entirely separate battery fleets.

Stellantis Achieves Inventory Reduction Goals in the US Market

Stellantis

Global automaker Stellantis announced today that it has successfully met its objectives for reducing dealer inventories across the United States, marking a significant step in its operational strategies.

Strategic Inventory Management

As the fourth quarter came to a close, Stellantis reported a substantial reduction in US dealer inventories, with a decrease of 80,000 vehicles sequentially, stabilizing the figure just above 300,000. This move is part of a broader strategy to optimize supply chain efficiencies and better align production with current market demands.

Impact on North American and Global Shipments

The inventory reduction correlates with a downturn in North American shipments, which fell by 115,000 vehicles compared to the same period last year, totaling 295,000 vehicles for the quarter. On a global scale, Stellantis saw a decrease in shipments, with 1.4 million vehicles shipped in the fourth quarter—down by 144,000 vehicles from the previous year. The decline was primarily concentrated in North America, although European markets also experienced a reduction, with shipments down by 44,000 vehicles.

BYD's Record-Breaking January: Surge in NEV Output and Sales

BYD NEV

In January 2025, China's BYD, the largest new energy vehicle (NEV) manufacturer, reported impressive growth in both output and sales. This continued surge in production solidifies BYD’s dominance in the NEV market, setting a high standard for the industry.

Strong Increase in NEV Output

BYD's NEV production soared by 59% in January 2025, compared to the previous year. The company manufactured a total of 327,864 units, which included 4,053 commercial NEVs and 323,811 passenger vehicles. Notably, BYD's passenger BEVs (battery electric vehicles) saw a 20% increase, with a total of 136,931 units produced. Meanwhile, the production of PHEVs (plug-in hybrid electric vehicles) skyrocketed, more than doubling from the previous year to reach 186,880 units.

In 2024, BYD’s total NEV production reached 4.304 million units, marking a 41% increase compared to 2023. The company has firmly positioned itself as China’s leading EV producer since March 2022, when it transitioned away from gasoline-fueled vehicle production in favor of BEVs and PHEVs.

BYD’s Impressive Sales Performance

BYD also reported a 49% rise in sales for January 2025, with a total of 300,538 NEVs sold. The breakdown of these sales includes 4,092 commercial vehicles and 296,446 passenger vehicles. Among the passenger vehicles, BEV sales increased by 19%, reaching 125,377 units, while PHEV sales surged by 79%, totaling 171,069 units.

Overall, BYD’s 2024 sales reached 4.272 million NEVs, accounting for the entirety of the company’s vehicle sales. The company's future prospects are equally optimistic, with forecasts predicting sales could hit between 5 million and 6 million units in 2025.

Expanding Global Footprint

In addition to its stellar domestic performance, BYD is aggressively expanding its global footprint. The company has been establishing production facilities in multiple countries, including Hungary, Thailand, Brazil, Uzbekistan, Cambodia, Morocco, India, Turkey, and Vietnam. These international sites are expected to contribute a combined capacity of 1 million EVs per year.

BYD’s commitment to the NEV market is further solidified by its role as a major player in battery manufacturing. In January 2025 alone, the company installed 15.511 GWh of power and energy storage batteries, marking a 37% year-over-year increase.

China and EU Continue Talks on EV Price Commitment Plan: A Step Toward Sustainable Electric Vehicle Pricing

China and EU EV

In the rapidly evolving world of electric vehicles (EVs), the ongoing negotiations between China and the European Union (EU) regarding a price commitment mechanism have garnered significant attention. This critical dialogue is aimed at creating a framework for stable pricing structures for battery electric vehicles (BEVs), which could play a pivotal role in the global transition to sustainable mobility.

The discussions, which have been ongoing for several months, focus on ensuring that BEV prices remain competitive while simultaneously promoting the widespread adoption of electric vehicles across the EU and China. This price commitment mechanism could include agreed-upon price floors, subsidies, and tariff adjustments that ensure both consumers and manufacturers benefit from a stable, predictable market environment. The outcome of these talks has the potential to reshape global EV strategies and boost the competitiveness of BEVs in a critical phase of the clean energy transition.

Key Areas of Focus in the Talks

One of the central themes in the China-EU discussions is the alignment of manufacturing costs, which will play a role in determining the final retail prices of BEVs. As China remains a global leader in EV production, the partnership with the EU could foster deeper collaboration in research and development (R&D), as well as in the supply chains for critical raw materials like lithium and cobalt. With battery costs continuing to be a major component of EV pricing, both sides are working to reduce production expenses while ensuring the overall quality of the vehicles remains high.

Furthermore, the EU is focused on ensuring that these commitments align with its broader environmental goals. The EU has set ambitious targets for carbon reduction and aims to accelerate the shift to electric mobility as part of its Green Deal. The price commitment mechanism would allow both parties to meet these goals without sacrificing economic competitiveness or consumer access to affordable electric vehicles.

As negotiations progress, the automotive industry is watching closely, as these agreements could determine the trajectory of EV pricing in key global markets.

UK BEV Sales Increase 41% in January, Still Fall Short of Government Mandate

UK BEV

EV Market Struggles to Meet Zero-Emissions Vehicle Mandate as New Tax Threatens Growth

Battery Electric Vehicle (BEV) sales in the UK saw a significant increase of 41% in January 2025, reaching 29,634 units. Despite this growth, the sales still failed to meet the government's mandated market share of 28%, according to data from the Society of Motor Manufacturers and Traders (SMMT).

In terms of market share, BEVs accounted for 21.3% of UK vehicle sales in January 2025, up from 14.7% in January 2024, based on figures from clean energy group New Automotive. While this shows a positive trend, the 21.3% market share is still below last year’s target of 22% and this year's ambitious 28% goal set by the UK government as part of the zero-emissions vehicles mandate, effective since 2024. This mandate is part of the UK’s broader efforts to reduce vehicle emissions and combat climate change.

Government Incentives Fall Short Amid New Tax Challenges

Despite a £4.5bn ($5.6bn) investment by UK automakers in new electric vehicle models and consumer discounts in 2024, demand for BEVs is still tepid. Consumers continue to seek more government incentives to switch to electric vehicles, the SMMT reports.

The situation has become more challenging with the introduction of the UK vehicle excise duty (VED) for BEVs from 1 April 2025. EVs priced above £40,000 will now incur a £3,100 tax over the first six years of ownership, a sharp contrast to the previous zero-tax policy. Despite a reduction in EV prices since the £40,000 threshold was set eight years ago, many electric vehicles still fall into the luxury category and remain priced above this limit.

The SMMT has voiced concerns that this new tax will dissuade potential EV buyers, calling for a revision or cancellation of the duty. “Rather than penalizing EV buyers, we should be taking every step to encourage more drivers to make the switch, helping meet government, industry, and societal climate change goals,” said a spokesperson from SMMT.

The EV Premium Continues to Shrink

One encouraging sign for the industry is that the price premium of electric vehicles over traditional internal combustion engine models has decreased significantly. As of December 2024, the EV premium dropped to 25%, compared to 73% in January 2020, according to Auto Trader, an online car dealership.

The UK’s EV market remains heavily dependent on fleet sales, which made up 62.4% of total vehicle sales in January 2025, a 3.7% decrease from the previous year. Fleet sales include corporate and salary sacrifice scheme vehicles, which are significant drivers of BEV demand in the UK. In contrast, private car sales saw a minor decline of 0.5%, with BEVs representing about 22% of corporate vehicle sales in 2023, compared to just 9% of private sales.

Huahong Rare Earth Output Rises as NdFeB Scrap Recycling Supports Magnet Demand

Huahong Rare Earth

Huahong rare earth output increased sharply in 2025 as stronger demand from new energy vehicles, industrial automation and energy-saving motors lifted China’s rare earth recycling and magnet supply chain. Zhejiang Huahong Technology produced 8,794t of rare earth oxides during the year, up 71% from 2024.

Huahong rare earth output growth was also supported by tighter rare earth supply conditions in China. Stricter government controls on mining, processing and production capacity helped lift prices and encouraged stronger output from qualified oxide and magnet producers.

Huahong rare earth output is strategically important because the company recovers rare earth oxides from neodymium-iron-boron scrap. This recycling route gives China another feedstock source for magnet production at a time when primary supply, mining quotas and scrap availability remain sensitive.

Sales of rare earth oxides rose by 57% to 9,165t in 2025, while inventories increased by 7% to 359t. The figures show that downstream demand remained strong enough to absorb most of the company’s higher oxide output.

NdFeB Scrap Recycling Gains Value Under Tighter Rare Earth Supply

Huahong operates three production bases for NdFeB scrap recycling: Ji’an Xintai, Jishui Jincheng and Jiangxi Wanhong. Together, these sites have 12,000 t/yr of rare earth oxide capacity using neodymium-iron-boron scrap as feedstock.

This recycling capacity matters because magnet scrap is becoming a strategic rare earth resource. NdFeB magnets contain neodymium, praseodymium and, in higher-performance grades, heavy rare earths such as dysprosium and terbium.

Recovering these materials from scrap can reduce dependence on mined feedstock and improve supply efficiency. It also supports China’s circular rare earth strategy, especially as demand from electric vehicles, robotics and industrial motors rises.

Market participants said some oxide plants are facing shutdowns or output restrictions because their capacity exceeds government standards. Tighter mining quotas, limited spot availability and higher NdFeB scrap costs have also created pressure in the oxide market.

These conditions favour producers with approved capacity and secure scrap channels. Huahong’s stronger oxide output suggests that recycled feedstock is becoming more important in balancing China’s rare earth supply chain.

The company’s revenue rose by 41% to 7.83bn yuan in 2025, while profit increased by 157% to 204mn yuan. The profit growth shows how higher rare earth prices and stronger magnet demand improved margins across the business.

High-Performance Magnet Demand Drives Capacity Expansion

Huahong’s rare earth magnetic materials output rose by 27% to 15,791t in 2025. Sales increased by 19% to 14,035t, while inventories rose by 29% to 1,042t.

The growth reflects rising demand for high-performance magnets in new energy vehicles, industrial robots, automation systems and energy-saving motors. These sectors require magnets with stronger magnetic performance, thermal stability and reliability.

China produced 16.6mn new energy vehicles in 2025, up 29% from a year earlier. NEV sales rose by 28% to 16.5mn units, supporting demand for high-performance NdFeB magnets used in traction motors, pumps, sensors, braking systems and other vehicle components.

Huahong said high-performance NdFeB magnetic materials accounted for around 42% of China’s total magnet output last year. That share is likely to remain important as vehicles become more electrified, automated and motor-intensive.

Industrial robots also supported magnet demand. Global industrial robot output exceeded 600,000 units in 2025, with compound annual growth above 10%. Robotics growth increases demand for compact, efficient and high-torque motor systems.

Huahong plans to start trial operations at the first phase of its Baotou facility in May-June 2026. The first phase will add 10,000 t/yr of high-performance magnet capacity.

Once the first phase comes on line, Huahong’s total high-performance magnet capacity will reach 20,000 t/yr. This positions the company more deeply in the downstream magnet chain, not only in rare earth oxide recycling.

The expansion shows how China’s rare earth industry is moving toward integrated recycling, oxide production and magnet manufacturing. Companies with access to scrap feedstock and downstream magnet capacity may be better positioned as rare earth supply becomes more regulated.

The Metalnomist Commentary

Huahong’s growth shows that rare earth recycling is no longer a secondary supply story. As NEV and robotics demand rises, NdFeB scrap recovery is becoming a strategic feedstock route for China’s high-performance magnet industry.

EU 2035 CO2 targets for vehicles face fresh pressure from Berlin

German

EU 2035 CO2 targets for vehicles face new pressure from Berlin. Friedrich Merz urged European Union policymakers to keep multiple drivetrains on sale after 2035. However, he wants technology-neutral EU 2035 CO2 targets for vehicles that protect competitiveness.

The European Commission plans to revise car and van CO2 standards on 10 December. It already offered more compliance flexibility for 2025–2027. Therefore, Berlin sees a window to reshape the 2035 pathway.

Technology-neutral compliance expands beyond tailpipe metrics

Merz signaled flexibility in a letter to Ursula von der Leyen. He asked for continued acceptance of efficient combustion engines after 2035. Meanwhile, he also backed plug-in hybrids and range-extender EVs beyond 2035.

Berlin also wants rules to recognize value-chain reductions. It wants regulators to credit sustainable inputs like green steel. As a result, automakers could offset vehicle emissions with cleaner materials and processes.

Fleet rules, e-fuels, and industry pressure shape the 2026 debate

Merz wants more flexible interim fleet targets to cut penalty risk. He also supports higher blending quotas for synthetic and biogenic fuels. However, he rejects mandatory EV quotas for corporate fleets. Instead, he prefers incentives that accelerate adoption without mandates.

Industry lobbying has intensified after Stellantis dropped its 2030 all-electric sales goal. Campaigners warn that weaker rules could raise exposure to imported EV competition. Meanwhile, BYD growth adds urgency to Europe’s industrial strategy. Therefore, EU 2035 CO2 targets for vehicles now sit at the center of policy and market risk.

The Metalnomist Commentary

Technology-neutral rules can protect jobs and investment during a messy transition. However, Europe must avoid locking in slow decarbonisation pathways. Therefore, policymakers should pair flexibility with clear, enforceable emissions outcomes.

Tesla to Boost 2025 EV Sales with Lower-Cost Models

Tesla EV Car

Tesla is forecasting significant growth in electric vehicle (EV) sales for 2025, driven by the introduction of lower-cost models that will make EVs more accessible to a wider range of consumers. CEO Elon Musk has projected that Tesla's EV sales could increase by 20-30% next year, provided there are no major external disruptions.

Lower-Cost EVs to Drive Sales Growth

The key to Tesla’s ambitious 2025 forecast lies in its strategy to produce more affordable versions of its electric vehicles. Historically, high production costs for EVs, particularly the metals used in batteries, have kept prices higher than those of traditional internal combustion engine (ICE) vehicles. By utilizing existing manufacturing lines, Tesla plans to offer EVs priced under $30,000, after including government incentives. Musk has stated that this price point will help break down the cost barriers that have hindered the widespread adoption of electric vehicles, further pushing Tesla’s leadership in the EV market.

Recovery in Production and Financial Performance

Tesla's third-quarter results for 2024 showed strong recovery, with a 9.1% increase in production to 469,796 vehicles, compared to the same period last year. Deliveries rose by 6.4% to 462,890 vehicles, fueled by growing demand for the highly anticipated Cybertruck. The company’s overall automotive revenue reached $18.8 billion, while its energy storage business also experienced significant growth, deploying 6.9 gigawatt hours (GWh) of capacity in the quarter—up from 4 GWh in the previous year. Tesla continues to expand its energy storage solutions with plans to ramp up production at its Megafactory in Lathrop, California, and a new plant under construction in Shanghai.

Tesla's quarterly profits grew 17% year-over-year, totaling $2.2 billion, while total revenues increased by 7.8% to $25.2 billion. The company is optimistic about its future prospects, as it continues to scale its EV and energy businesses in the coming years.

French Electric Vehicle Sales Hit 2024 Low in July Amid Broader Automotive Slump

In July, France saw a marked decline in new registrations of electric vehicles (EV), hitting their lowest point so far in 2024, according to data released by the French Ministry of Environment. The total number of EVs registered last month reached 17,466 units, a slight increase from 17,251 in July 2023, but a significant drop from previous months this year. This decline caused the market share of EVs to fall by 3.1 percentage points to 13.5% of all new vehicle sales.

The sluggish performance was not confined to fully electric vehicles. Plug-in hybrid vehicle registrations also reached their lowest level of the year, with only 9,224 units sold—a sharp decline of 33% from June and 29% from July 2023. The market share for plug-in hybrids also contracted slightly to 7.1%, down 0.4 percentage points from the previous month.

Diesel vehicles, once dominant in the French market, continued their downward trajectory with registrations dropping by 25% year-on-year to 9,426 units. Overall, new vehicle registrations in France declined by 1% compared to the same period last year, totaling 129,425 units.

The downturn comes as France is pushing for a significant shift towards electric mobility. In May, the French government signed a strategic contract with the automotive sector, setting an ambitious target to quadruple the sales of electric passenger cars by the end of 2027. Despite these efforts, the immediate outlook for the EV market remains challenging, as the July figures suggest that consumer demand may not yet be aligning with governmental targets.

As of the end of June, France had over 138,000 public charging stations for EVs, and more than 1.8 million electric and plug-in hybrid vehicles were on French roads, an increase from about 1.5 million in 2023. These infrastructure improvements, coupled with government incentives, are crucial for driving future growth in the EV market. However, the recent slump indicates that achieving the 2027 targets will require sustained efforts to boost consumer adoption of electric vehicles.

Battery Metals Demand Faces Slower Path as Hybrid Vehicle Growth Extends

Battery Metals

Battery metals demand could face a slower growth path as carmakers and suppliers expect hybrids and range extenders to remain important for longer than earlier electric-only transition models assumed. Speakers at the FT Future of the Car summit said vehicle decarbonisation should be measured by emissions reduction, not only battery electric vehicle share.

Battery metals demand remains structurally supported by electrification. However, a longer hybrid phase could reduce near-term demand intensity for lithium, nickel, cobalt and manganese because hybrid vehicles use smaller battery packs than full battery electric vehicles.

Battery metals demand assumptions are therefore becoming more complex. Automotive electrification is still progressing, but the industry is moving toward a mixed powertrain future rather than a simple shift from combustion engines to full BEVs.

Horse Powertrain chief executive Matias Giannini said half of passenger vehicles could still be produced with some form of combustion or hybrid powertrain by 2040. That outlook would keep investment flowing into efficient hybrid systems alongside EV platforms.

Hybrid Growth Changes the Battery Raw Materials Curve

Hybrid vehicle growth could temper the pace of battery raw material demand without reversing electrification. Hybrids and range extenders still require electric motors, inverters, wiring and batteries, but their battery packs are much smaller than those used in BEVs.

This matters most for nickel. High-nickel NCM and NCA batteries are closely tied to longer-range BEVs, where larger packs are needed to deliver performance and driving range.

A slower BEV ramp-up could delay some of the nickel sulphate demand growth that has supported investment cases for new battery-grade nickel projects. It could also affect cobalt and manganese demand in cathode chemistries exposed to full EV penetration rates.

Lithium remains supported across almost every electrification pathway. Still, a longer hybrid transition could slow the rate at which large-format BEV batteries absorb lithium units.

The shift does not mean automotive metals demand will weaken across the board. Hybrids use more copper than conventional combustion vehicles because they require electric motors, power electronics and more complex wiring systems.

Continued hybrid and combustion production also supports aluminium castings, stainless steel, exhaust components and engine-related materials. Meanwhile, BEV growth still supports aluminium lightweighting, copper wiring, charging infrastructure and battery materials.

The result is a less linear automotive metals outlook. Battery metals may grow more slowly than aggressive BEV scenarios suggest, while broader automotive metals consumption remains supported by platform complexity and mixed powertrain production.

Policy Flexibility Could Reshape European Metal Demand

European suppliers are pushing for more flexibility in the EU regulatory framework. Current policy remains heavily weighted toward full electrification through tailpipe emissions targets.

The EU targets a 100% reduction in tailpipe emissions from new cars and vans from 2035. That effectively ends new combustion engine sales unless future exemptions are created.

Industry participants increasingly want a more technology-neutral route. They argue that hybrids, range extenders, renewable fuels and lower-carbon manufacturing should contribute to emissions reduction alongside BEVs.

This policy debate matters for metals. Battery material demand depends heavily on BEV penetration, average pack size and chemistry choice.

If Europe allows a longer role for hybrids and range extenders, lithium-ion battery capacity demand per vehicle could grow more slowly. That would affect demand forecasts for lithium, nickel, cobalt and manganese.

Chinese EV and hybrid technology is also improving quickly. This puts pressure on European and US automakers to share development costs across BEV, hybrid and range-extender platforms.

For suppliers, the strategic issue is flexibility. Companies tied only to high-growth BEV battery assumptions may face demand timing risk, while suppliers serving copper, aluminium, stainless steel, electronics and hybrid systems may benefit from a broader platform mix.

The automotive transition is still real, but the material demand path is becoming more diversified. Metals markets must now track powertrain mix, not only EV sales headlines.

The Metalnomist Commentary

Hybrid growth does not weaken the energy transition, but it changes the metals timing. Battery metals demand will still rise, yet copper, aluminium and hybrid-related materials may capture more value if automakers choose a longer mixed-powertrain route.

EU Mexico Trade Agreement Opens Clean Tech and Critical Materials Opportunities

EU, Mexico

EU Mexico trade agreement signing marks a major update to a commercial relationship already worth around €100bn/yr in goods and services. The revised deal aims to remove tariffs and non-tariff barriers while creating new opportunities in clean technology, critical raw materials and agri-food trade.

EU Mexico trade agreement provisions will eliminate almost all high Mexican tariffs on EU imports. The affected sectors include machinery, mineral fuels, cars, car parts and a wide range of agri-food products.

EU Mexico trade agreement rules also include legally binding commitments on environmental protection and climate change. This gives the deal a strategic industrial angle beyond conventional tariff reduction.

The interim trade agreement is expected to move faster than the wider modernised global agreement. It needs European Parliament approval and qualified-majority approval from EU member states, rather than ratification by all 27 countries.

Clean Technology and Raw Materials Gain Strategic Relevance

The agreement could strengthen EU-Mexico cooperation in clean technology and critical raw materials. This matters as Europe seeks more diversified supply chains for energy transition equipment, electric vehicles, industrial machinery and advanced manufacturing.

Mexico is already a major manufacturing base linked to North American automotive and industrial supply chains. Better EU access could support machinery, components and clean technology exports into a market positioned between Europe and the US.

The deal also includes strict rules of origin, including for electric vehicles. EU officials said these rules are designed to prevent circumvention and avoid the agreement becoming a backdoor for Chinese production.

That detail is important. As tariffs, subsidies and local-content rules reshape global EV trade, rules of origin are becoming a core tool of industrial policy.

For European manufacturers, clearer access to Mexico may support exports of vehicles, parts, machinery and clean technology systems. For Mexican producers, greater access to the EU could strengthen trade in food, consumer products and selected industrial goods.

Tariff Cuts Combine With Climate and Circular Economy Commitments

Mexico will remove tariffs on key European exports including pork, dairy, cereals, fruit and pasta. Sensitive products will receive limited access through tariff-rate quotas.

The agreement also gives EU exporters broader quota access for dairy, beef, poultry and pork products. In return, Mexican producers will gain more liberalised access to the EU for products including coffee, fruit, chocolate and agave syrup.

Alongside the trade deal, both sides signed a circular economy declaration covering climate change, biodiversity loss and pollution, including plastics. This adds sustainability language to the commercial framework.

The agreement requires both parties to uphold international climate treaties, including the Paris Agreement. It also includes a dedicated dispute settlement procedure.

For metals and industrial supply chains, the wider message is clear. Trade agreements are increasingly combining market access, climate obligations, origin rules and supply-chain security.

The EU is using trade policy to support clean technology, critical raw materials cooperation and industrial competitiveness. Mexico gains deeper access to one of the world’s largest consumer markets while strengthening its role in global manufacturing networks.

The Metalnomist Commentary

The EU-Mexico deal shows how trade policy is becoming a supply-chain security instrument. The rules of origin for electric vehicles may prove as important as the tariff cuts, especially as Europe tries to protect clean technology markets from indirect Chinese competition.

Porsche US Sales Surge in Q1, Driven by Electric Vehicles

Porsche EV

EV Momentum Fuels Porsche’s First-Quarter Growth

Porsche's US vehicle deliveries jumped by 41% in the first quarter of 2025, reaching 18,884 units. The strong performance was largely driven by the popularity of the all-electric Macan SUV, which accounted for nearly half of its model sales.

Fully electric vehicles made up 23% of Porsche’s US deliveries during the quarter, underlining the company’s shift toward electrification. The Macan contributed significantly, with 7,486 units sold, 45% of which were electric-powered, according to Porsche's Q1 report.

North American and Global Expansion Align with EV Strategy

Porsche’s total deliveries in North America rose 37% year-over-year, hitting 20,698 vehicles across all models and powertrains. Globally, the automaker delivered 71,470 vehicles during Q1, with 26% being fully electric and another 13% as plug-in hybrids.

This underscores Porsche's growing alignment with global electrification trends and regulatory demands across major markets.

The automaker's EV transition strategy is paying dividends, especially in the US, where tax incentives and performance branding have bolstered electric vehicle adoption.

The Metalnomist Commentary

Porsche’s electrification gains—especially in the premium SUV segment—signal a maturing EV market among high-end consumers. As metals like lithium, nickel, and cobalt remain central to EV production, such growth trajectories will likely strain battery material supply chains further. This makes downstream demand insights from luxury automakers increasingly relevant to critical mineral producers and policymakers.

Samsung SDI Recalls High Voltage Batteries Over Fire Risk

Samsung SDI

Samsung SDI, a South Korean battery manufacturer, has initiated a recall of high voltage battery packs due to a potential fire risk. The recall, which could impact up to 180,196 vehicles, was issued in response to a safety concern identified by the National Highway Traffic Safety Administration (NHTSA).

Potential Fire Risk in High Voltage Batteries

The recall affects certain high voltage battery packs used in vehicles produced between July 2020 and March 2023, including models from Chrysler, Volkswagen, Audi, and Ford. The faulty battery packs may fail, resulting in a loss of drive power, which significantly increases the risk of a crash. Additionally, the failure could also raise the risk of a fire, posing a severe safety hazard.

Cause of the Recall and Affected Vehicles

Samsung SDI has attributed the issue to variability in its production process, which can cause micro defects in the cathode or create local stresses in the separator. These production flaws could contribute to the potential safety risks. Chrysler, under Stellantis, is most affected, with 155,096 vehicles impacted by this recall.

Initially, Samsung SDI attempted to address the risks with a software remedy, but further investigation revealed that the software solution may not fully address certain abnormal conditions. Samsung SDI acknowledged that a more effective solution is required, and the recall remains active until the issue is resolved.