China

The China Association of Automobile Manufacturers is reporting additional positive news from May data with a 21.1% year-on-year increase in auto output to 2.33 million units while sales jumped 27.9% to 2.38 million units. The electric vehicle side of the business was indicating over 60% growth year on year.

Based on increasing global demand, Zhejiang Huayou Cobalt (the LG Chem joint-venture company located in Zhejiang province) is starting high-nickel-content material production, with a target of 50,000 tonnes per year by 2027.

The China Ministry of Commerce (MOFCOM) and General Administration of Customs announced on July 3 that, with effect from August 1, Chinese exporters of gallium, germanium and certain related chemical compounds must obtain export licences from MOFCOM before shipping these materials.

Data showing 3% GDP growth from the 5.5% annual economic growth target for 2022 are cooling expectations for China’s post-COVID economic recovery, which has been much slower than the world had expected when compared to the traditional double-digit gains. However, the most recent data indicate that China’s consumer market is gradually recovering in areas from domestic tourism to electric vehicle production and sales. Meanwhile, consumption of recycled raw materials has been steady.