Fortune Minerals Limited. T.FT

US looks to shut China out of its battery supply chain

[Allman]

It's looking really good for Fortune Minerals ...

... Given China's dominant position in the global battery supply chain, often in the form of joint ventures with Western partners, the new rules could have far-reaching consequences for critical mineral producers just about everywhere. ...
The aim is clearly to incentivise the build-out of a domestic mine-to-battery supply chain and simultaneously wean U.S. automakers off their dependence on China. ...
it poses significant problems for both countries and companies that have partnered with Chinese entities for the supply of battery inputs such as lithium, cobalt and nickel.
Indonesia, for example, has emerged as the world's largest nickel producer in recent years.
It does not have a free trade agreement (FTA) with the United States and its request for even limited talks on a critical minerals deal has been shunted into the slow lane. ...
Even many companies operating in an FTA partner country such as Australia are unlikely to qualify for the IRA tax largesse given many are in joint ventures with Chinese players. ...
Even a mine that has no Chinese ownership won't qualify for IRA subsidies if the raw material is processed at a Chinese or Chinese-controlled processing plant.
China currently accounts for almost two-thirds of the world's lithium processing capacity, 75% of its cobalt capacity, 95% of its manganese capacity and just about all of its graphite capacity.
The country's overseas partners may now have to think long and hard if they don't want to be excluded from the U.S. market for new energy vehicles. ...
There is also likely to be much investment in new Western capacity that is not tied to China.

https://www.reuters.com/markets/commodities/us-looks-shut-china-out-its-battery-supply-chain-2023-12-05/