Day: March 26, 2024

US Aims to Tap Domestic Lithium Supply Without Chinese Products

washington — Earlier this month, the U.S. Department of Energy announced a record conditional loan of $2.26 billion to tap the largest known lithium reserves in North America. The loan is an important step in an effort by the U.S. government to reduce reliance on China for the metal used to make batteries.

Analysts, however, say that it may be too late to move away from reliance on China completely when it comes to metal processing and the production of batteries.

The DOE’s Loan Programs Office (LPO) says the funds, if approved after review, will help the Lithium Americas Corp. construct a lithium carbonate processing plant at the Thacker Pass mine project in Humboldt County, Nevada.

The LPO says the project would help “secure reliable, sustainable domestic supply chains for critical materials, which are key to reaching our ambitious clean energy and climate goals and reducing our reliance on economic competitors like China.”

Lithium Americas Corp. on its official website says battery materials could be “completely sourced and manufactured in the U.S., bringing down the overall carbon footprint, transport costs and supply chain risks.”

The LPO says lithium carbonate from Thacker Pass could eventually support the production of batteries “for up to 800,000 electric vehicles (EVs) per year, saving 317 million gallons of gasoline per year.”

Although the U.S. has made pioneering and groundbreaking contributions to the development of the lithium ion battery, industry experts say lithium processing and EV battery production is dominated today by China.

“Parts of our key supply chains, including for clean energy, are currently over concentrated in China,” said U.S. Treasury Secretary Janet Yellen in prepared remarks March 2 when she visited a U.S. lithium processing facility in Chile, which holds the world’s largest reserves of the metal.

“This makes America more vulnerable to shocks in China, or whatever country dominates production, from natural disasters to macroeconomic forces, to deliberate actions such as economic coercion.”

A report last year by the Organization for Economic Co-operation and Development said China increased restrictions on its exports of critical minerals ninefold between 2009 and 2020.

Data from the U.S. Geological Survey shows the output and scale of lithium mines in Australia and Argentina far exceed China’s. In 2022, Australia’s lithium mine output was more than three times China’s.

Refining, processing still issues

But industry experts say while Western countries have poured a lot of investment into developing raw minerals, they have paid little attention to refining and processing, areas in which China dominates.

Ellen R. Wald, a nonresident senior fellow with the Atlantic Council Global Energy Center, tells VOA, “Lithium is not useful just as it is. You have to refine it to make what’s used in the batteries. And that’s really where China controls the supply chain because almost all of the refining for lithium that creates it into the substance that can be used to make batteries is done in China.”

According to the Chatham House, Chinese companies accounted for about 72% of global lithium refining capacity in 2022.

China also dominates much of the global market for battery-related equipment, leaving limited options for U.S. companies that want to showcase their domestic production credentials.

American Battery Factory Inc., or ABF, is an emerging battery manufacturer that says it is “the first network of entirely U.S.-owned vertical manufacturing, supply chain and R&D for Lithium Iron Phosphate battery cells in the United States.”

But to secure custom automation equipment and machinery for use in its first large-scale rechargeable battery factory in Tucson, Arizona, it has formed a partnership with Lead Intelligent Equipment, a Chinese company.

Dependent on China

In an article in January, Wald said China is in a good position to restrict access to lithium-ion batteries to certain countries or companies as it wishes, and if the U.S. military suddenly finds itself in need of more specialized batteries, the Pentagon may not be able to obtain them.

In February 2022, China announced sanctions against Lockheed Martin, the manufacturer of the F-35 fighter jet, and Raytheon Technologies, the world’s largest missile manufacturer. Although China did not specify the details of the sanctions, it is generally considered to be a possible threat to cut off the Western countries’ supply of critical minerals.

Wald told VOA, “The U.S. defense industry is basically dependent on China for these specialized batteries that they need in all of their drones and their surveillance systems and all sorts of things.”

David Whittle, adjunct professor in resource engineering at the Department of Civil Engineering at Monash University in Australia, told VOA even if “the world develops a robust, independent supply chain for lithium, up to the point of battery chemical production, at present, China would still be the largest customer for those chemicals, since it is the largest cell manufacturer, the largest battery pack manufacturer, the largest E.V. manufacturer and the largest market for E.V.s.”

The Thacker Pass lithium mine is located at the southern end of the McDermitt Caldera, and is considered to be one of the largest in the world.

The record loan to Lithium Americas Corp. is the largest such loan the U.S. has offered for the development of a lithium mine project since the country stepped up its efforts to build a domestic supply chain for critical minerals in recent years.

The Thacker Pass lithium project is not expected to start production until 2028, and even then, Wald said, that goal may be too ambitious. The mine plans to extract lithium from clay, but Wald says it has never been mined in this way on a commercial scale. In addition, the mine is in a remote and sparsely populated location, requiring the company to build housing for workers and their families and to reassess its environmental impact.

Despite the challenges, Wald said creating a secure supply chain is not impossible for the U.S.

“I don’t think it’s too late,” Wald said. “Will they be able to compete with China globally? Probably not. But can we create non-Chinese sustainable and secure supply chains? Yeah, we can do it.”

Whittle said Western countries being “resilient to challenges from China” can’t mean “isolated from China” anymore, but resilience is still possible.

The DOE’s LPO said while their announcement shows intent to give the loan, the company must first satisfy certain technical, legal, environmental and financial conditions before the funds will be released.

Adrianna Zhang contributed to this report.

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Critics Slam Apple CEO Tim Cook for Laudatory Remarks in China

 Washington — Tim Cook, CEO of the American technology giant Apple, is facing criticism at home over laudatory remarks he made about China during a recent visit to try to boost sagging iPhone sales in the lucrative market. 

Cook was in Shanghai for the opening of China’s largest Apple retail store on Friday and met with Chinese political and business people. He praised China for being “so vibrant and so dynamic,” in remarks widely quoted by state media and Foreign Ministry spokesperson Hua Chunying. 

 

The new Apple store took seven years and cost over 80 million yuan (roughly $11.1 million) to build. It is said to be the second largest in the world and the largest in Asia, and it is staffed by about 150 people. 

Thursday evening, at least 12 hours before the scheduled opening, a long line had formed in front of the store. Some media said the crowds were “as bustling as New Year’s Eve.” 

In addition to showing their loyalty to the brand by purchasing Apple products, the opening day crowds rushed to take photos with Cook, who was in the store at the event.

Dan Ives, a technology analyst on Wall Street, said on X, formerly Twitter, that Cook’s trip to China shows that Apple will continue to attach importance to the Chinese market.

“Apple is actually increasing its investments and retail footprint in China the past year,” he said, “and to this point Cook has been in China since last week on an important visit to lay the groundwork on Apple’s future in China. Cook reaffirming China strategy.” 

 

Chinese media reported on Monday that Apple will cooperate with Chinese technology company Baidu to provide artificial intelligence capabilities to the iPhones sold in China this year. Baidu has not verified the report. 

However, not all Chinese love Apple. A viral video clip on Chinese social media shows a middle-aged Chinese woman in yellow clothes, a baseball cap and a mask yelling at the people who queued up at the new Apple store the night before its opening, “You worship and favor foreign things.”  

 

She also said Apple’s business expansion in China is “because of scum like you who are willing to pay for it.” 

A person in the line said, “Do you know how many jobs Apple brings to China every year?”  

The woman replied, “No need, we have our own Huawei!” 

The drama reflects the challenges Apple is facing in China. IPhone shipments in China fell about 33% in February from a year earlier, according to official data, marking a second consecutive month of lower shipments. 

In January, the company shipped a total of roughly 5.5 million units, or about 39% fewer handsets than in the prior year, according to China Academy of Information and Communications Technology figures. 

Frank Lee, a senior partner of Blue Ocean Capital in Beijing, said that most Chinese iPhone users have a good experience with Apple products, so they remain loyal to the brand. However, there is a clear trend of declining sales of Apple products due to competition with Chinese domestic brands. 

Lee told VOA, “I think Apple’s opening of a store in Shanghai will play a certain role in [boosting] its sales in China, but it cannot fundamentally reverse the overall slow decline trend of iPhones in China.” 

However, Cook expressed his confidence in the Chinese market. He told the Chinese media, “I love the people and the culture [of China]. Every time I come here, I’m reminded that anything is possible here.” 

Cook’s remarks have been criticized as glorifying the Chinese government’s arrogant treatment of private enterprises. 

Jonathan Eyal, associate director of the Royal United Services Institute for Defense and Security Studies in the U.K., wrote on X, “‘Everything is possible’ in China, says Apple’s Tim Cook. Including being arrested and expropriated. And losing the market at a stroke of a bureaucratic pen.” 

 

Theresa Fallon, director at the Centre for Russia Europe Asia Studies, wrote, “Apple chief Tim Cook’s obsequious praise for China … unlikely to reverse the tide and CCP mandates that government officials can’t use Apple phones.”  

 

Bloomberg reported last year that a growing number of Chinese government agencies and state-owned enterprises were ordering employees not to bring iPhones and other foreign-brand phones to the workplace. China’s Foreign Ministry did not confirm the report. 

Some observers believe Cook’s remarks were not sincere. In recent years, Apple has expanded its production in India. Last year, iPhones made in India appeared for the first time in the first batch of iPhone 15 models released globally. 

However, others say China is irreplaceable to the global supply chain. They noted that Apple has faced challenges in efficiency since its supplier Foxconn moved production lines to India in the past couple of years. 

Noah Smith, an American current affairs columnist, wrote, “LOLLLLLLL meanwhile he’s shifting production out of China as fast as he can.” 

 

Some critics of Cook are more serious. Sophie Richardson, former China director at Human Rights Watch, said, “.@tim_cook, about those “vibrant” and “dynamic” #crimesagainsthumanity committed by your #China govt hosts…?”  

 

Eli Friedman, associate professor of global labor and work at Cornell University, said the past mutually beneficial relationship between Beijing and American companies is no longer playing a diplomatic role. 

He wrote, “Throwing Apple some treats will not help stabilize the U.S.-China relationship, I promise.” 

Adrianna Zhang and Joyce Huang contributed to this report.  

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Schools to Reopen in South Sudan After Two Weeks of Extreme Heat

JUBA, South Sudan — South Sudan’s government on Tuesday said schools will reopen next week following a two-week closure due to extreme heat across the country. 

The health and education ministries said temperatures were expected to steadily drop with the rainy season set to begin in the coming days. 

South Sudan in recent years has experienced adverse effects of climate change, with extreme heat, flooding and drought reported during different seasons. 

During the heatwave last week, the country registered temperatures up to 45 degrees Celsius (113 Fahrenheit). 

Teachers have been urged to minimize playground activities to early morning or indoors, ventilate classrooms, provide water during school time and monitor children for signs of heat exhaustion and heatstroke. 

Health Minister Yolanda Awel Deng singled out Northern Bahr El-Ghazel, Warrap, Unity and Upper Nile states as the most-affected areas. 

Higher learning institutions have remained open. 

Some schools in rural areas also have continued despite a warning from the education ministry. 

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Robots Writing Letters for Humans  

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LogOn: Robots Hand Write Letters for Humans

Not long ago, people wrote letters by hand. But like many things eclipsed by modern technology, handwritten letters are less common than they used to be. Now, that technology has started writing those letters. VOA’s Julie Taboh introduces us to handwriting robots in this week’s episode of LogOn.

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Supreme Court Hears Arguments on Medicated Abortion Restriction

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West Reliant on Russian Nuclear Fuel Amid Decarbonization Push

An analysis by Britain’s Royal United Services Institute has found that many Western nations still rely on Russian nuclear fuel to power their reactors, despite efforts to sever economic ties with the Kremlin following its 2022 full-scale invasion of Ukraine. Henry Ridgwell reports from London.

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