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Euronews
15 hours ago
- Business
- Euronews
TikTok employees in Germanys strike over AI taking their jobs
Workers at the social media company ByteDance, TikTok's parent, are on a one-day strike today in Berlin to protest the replacement of staff with artificial intelligence (AI). Trade union group said that around 150 employees will be replaced by Chinese-sourced A models, which ByteDance trained on behalf of the company and external service providers. The job cuts include the phasing out of the entire 'Trust and Safety' department, responsible for content moderation and keeping the platform safe, and the Live department, which says is responsible for contact with content producers. The workers have also tried but failed to get ByteDance to the negotiating table, the union said. 'It is disrespectful of TikTok to shirk all social responsibility and even refuse to negotiate with us,' said Lucas Krentel, deputy regional head of the media division. 'Today, the employees are sending a clear signal that they will not accept this,' he said in a statement. What are workers asking for? TikTok's employees are the first in Germany to strike against a social media company, the union added. It comes after a small group of 50 employees took to the streets last week in Berlin to raise the alarm over the layoffs, local media reported. The employees are holding a boat tour down the Spree River and will hold a rally on land later on Wednesday. The workers on strike are asking for a collective bargain that would include a severance package that 'recognises the difficult, vital nature of their roles,' such as prolonged exposure to highly distressing content. That would include severance payments worth three years' salary along with an extension period of 12 months for each employee. Germany's Dismissal Protection Act says that any employee who is being laid off due to urgent reasons should receive 50 per cent of their monthly earnings for each year that the person worked for the company. The union says the demands are justified because of TikTok's high profits and the replacement of content moderators by AI devalues their specific training and expertise. TikTok's moderators have in-depth knowledge of cultural and political contexts, which they need to identify problematic content. Getting rid of them increases the risk that the platform supports 'manipulative campaigns,' the union said.. The Live department workers who reach out to content creators are 'crucial for reach, monetisation and community engagement,' the union added.. The union also said that many of the affected employees are not German citizens, so losing their jobs could affect their rights to stay in the country. If ByteDance does not come to the bargaining table, says a longer-term strike could come later this month. Euronews Next reached out to ByteDance to confirm the incoming layoffs but did not receive an immediate reply.
Straits Times
14-07-2025
- Business
- Straits Times
‘Some cannot source outside China': S'pore firms' challenges and support needed amid US tariffs
Koda is a Singapore-listed furniture firm with operations in Malaysia, China and – most crucially – Vietnam. SINGAPORE – For the past three months, business owner Ernie Koh has been cycling through various scenarios in his head, pending finalisation of tariff rates for Vietnam. Mr Koh is director of Koda, a Singapore-listed furniture firm with operations in Malaysia, China and – most crucially – Vietnam, which struck a trade deal with the Trump administration on July 2. He has scenarios for both good and bad outcomes for Vietnam, and more 'what-ifs' that pit Vietnam against other markets that his competitors operate in, such as India, Malaysia and Indonesia. But the lack of detail on the tariffs and how other countries will be affected has created something of a Rubik's cube for firms trying to navigate these testing new waters. When US President Donald Trump declared sweeping global tariffs in April and warned countries not to sneak Chinese products into America through false declarations, Mr Koh asked his import shipping company to detail the amount of Chinese-sourced material in his products. 'It's only 6 per cent. Some of the fabric you cannot source anywhere outside of China,' he said, pointing out that there are four or five Singapore companies making furniture in Vietnam. The US is the biggest export market for Vietnam, and the biggest buyer of its furniture. The country has won a reduced 20 per cent tariff on its goods to the US, and 40 per cent on transshipped goods. Top stories Swipe. Select. Stay informed. 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Mr Koh hopes the Singapore Government will turn its eye to businesses like his – Singapore-registered but operating overseas – that have traditionally been seen as successful and needing little support. The Singapore Economic Resilience Taskforce set up to help businesses ride out these challenges on July 10 announced the Business Adaptation Grant, which will disburse up to $100,000 to a firm on a co-funding basis. Koda, if deemed eligible, could expect help in areas like trade compliance advisory, contracts, supply chains and market diversification. It could also get a lift for costs in logistics and inventory holding. But the task force also noted that a bigger scoop of the pot will go to local small and medium-sized enterprises (SMEs), which account for more jobs. Details are expected in October. The Association of Small and Medium Enterprises (ASME) and Singapore Business Federation have been ramping up support through advisory services, workshops with trade experts to evaluate cost and regulatory risks in alternative hubs like Indonesia and India, as well as trade missions and symposiums. Some of the assistance is to mitigate competition from Chinese businesses, which have turned their attention to markets outside the US to invest in and sell their goods. Local businesses have never been cornered like this until now, where trade pressures, technological disruption and intensifying competition from Johor arrive in a perfect storm, said ASME president Ang Yuit. The association has observed that companies are activating diversification plans in the wake of the tariff that the US is imposing on Vietnam goods. The immediate challenge is 'managing potential 20 to 40 per cent cost increases for US customers due to tariffs and transshipment classifications', it said in response to queries from The Straits Times. ASME added that it is accelerating its internationalisation support to help smaller firms look beyond Singapore, which includes aggregating SMEs into overseas projects. But Mr Ang sees a silver lining: With the US tariffs expected to last, he believes Chinese investors will turn less opportunistic and more earnest about local integration. Chinese firms that tap into only their home country's supply chain and hire Chinese-speaking managers will find that they have reached a ceiling if they do not open up, he added. 'Chinese and Singaporean firms will partner more deeply to navigate compliance, build mutual value, and jointly access wider markets, making the quality and integration of the investment more significant,' he said. Mr Ang hopes policymakers will take a comprehensive relook at a range of policies, ranging from trade and tax rules, to SME competitiveness and regional integration. Rather than providing direct offsets to tariff impacts, ASME believes that support should focus on enabling diversification and long-term capital investment. To address immediate needs, targeted tax policy adjustments like enhanced capital allowances or greater deductibility can ease cash flow for companies needing to reinvest or relocate, it said. In the longer term, ASME said Singapore must review economic policies such as tax rules to align with the structural reconfiguration of global trade. Koda's Mr Koh hopes the Government will share financing and export risks with Singapore businesses. 'Especially for a manufacturer, sometimes you've got to give (credit) terms to your customer, and sometimes also to your supplier,' he added. 'So you're double financing front-end and back-end, and then you are very tight on your cash. If one of the big guys go under, they may drag you down.' Mr Koh's hands would also be tied if he wants to move capacity from one high-tariff jurisdiction to a lower-tariff one: 'If I want to increase my capacity in Malaysia, I need capital, I need to expand my factory.' Export insurance rates are also being scrutinised as insurers turn cautious, he said. Dr Deborah Elms, who heads trade policy at the Hinrich Foundation in Singapore, said continuing threats and changes to tariff timelines have made it difficult for companies to plan. She said: 'Some have accelerated production to ship products to the US while tariffs are lower. Others have stopped or postponed production until they have greater clarity. 'But uncertainty has a cost as well, including a lack of investment for new capacity.' Business are having to figure out how they are being penalised in respect to other nations in the same market. Dr Elms said: 'For clothing and textiles, for example, what matters is not just the rate given to Vietnam, but also the rates for Bangladesh, Cambodia and China. 'Any tariff is a challenge for firms, but one that hits all imports equally or nearly equally is not as damaging as one that hits your producers the hardest with the highest rates.' In Mr Koh's case, his American customers are showing him products that were made in China and asking if his firm – a specialist in dining sets – could make them in Vietnam. That should be good news, except that these customers are also asking him to split the costs of the tariffs. 'All the customers say, 'Let's share the tariff 50-50'. If the tariff is 10 per cent, the only way for us to win back the 5 per cent is to generate efficiency in our factory to cover up that 5 per cent. But manufacturing margins are not very fat,' he said. 'So, business is good, but profit may be an issue.' His customers – the retailers and distributors – will take the savings from his Vietnam imports to help cover the smaller profits in high-tariff countries such as China. 'The customers take from Peter and give it to Paul,' he surmised. While waiting for clarity on where tariffs will land, the best bet for business owners is to keep their balance sheet strong and reserve their gunpowder for when times get better, said Mr Koh.
Mint
08-07-2025
- Business
- Mint
India's drone industry grows rapidly but faces critical rare-earth magnet dependency
Sakshi Sadashiv India is swiftly expanding its drone manufacturing ecosystem, driven by increased defence demands, supportive government policies, and a burgeoning startup scene. The motors used in drones are made from rare-earth magnets, typically smaller brushless DC motors. Gift this article India's drone ecosystem is ramping up local manufacturing amid rising defence demand and policy push, and a swelling base of domestic startups. While there's growing domestic capability in airframes, batteries, and software, critical components such as flight controllers, sensors, and motors continue to be largely import-dependent. India's drone ecosystem is ramping up local manufacturing amid rising defence demand and policy push, and a swelling base of domestic startups. While there's growing domestic capability in airframes, batteries, and software, critical components such as flight controllers, sensors, and motors continue to be largely import-dependent. A key vulnerability lies in the reliance on rare earth magnets—essential for high-performance drone motors, which India currently lacks the capacity to produce at scale, industry executives said. With China tightening export controls on these magnets, especially for defence applications, industry executives warn this could become a bottleneck in India's goal of building a fully self-reliant drone manufacturing ecosystem. The motors used in drones are made from rare-earth magnets, typically smaller brushless DC motors. 'There are ongoing efforts to identify alternative options—both in terms of materials and designs—and to determine what can be used in place of Chinese-sourced rare earth magnets," said Sai Pattabiram, founder and MD of Zuppa, a drone-tech startup. Garuda Aerospace invested in the company this year, and it is also backed by MapmyIndia. Government support Currently, India is home to 515 drone-related companies, with 263 focused specifically on component manufacturing. In terms of funding, drone startups secured $108 million in 2024 and have already raised $39 million in 2025, according to Tracxn data. India is also set to roll out a $234 million incentive scheme aimed at boosting domestic production of drones for both civil and defence use, according to aReutersreport. Moreover, the production-linked incentive (PLI) scheme, along with initiatives like the defence ministry's iDEX and Technology Development Fund (TDF), has created a fertile ground for companies to invest in R&D and ramp up manufacturing. Drone companies interviewed by Mint echoed the sentiment that these schemes are not merely financial boosts, but strategic signals that India is committed to building a globally competitive drone ecosystem. Yet, India's reliance on foreign suppliers—particularly for magnets—has emerged as a serious issue. 'In India, most motors used in drones are permanent magnet motors, which rely on rare earth magnets. Unfortunately, there are currently no alternative suppliers for these magnets," said Srihari Mulgund, partner and New-Age Mobility leader, EY-Parthenon. 'There is currently no domestic source for drone-grade magnets in India. We need to start figuring this out, especially given the current situation," he said. With defence applications flagged by foreign suppliers, access to these critical parts becomes even harder. 'If the end use is defence-related, then suppliers—especially from China—won't ship the parts. That's a serious roadblock. You're essentially stuck if the supplier flags your application as defence," Mulgund added. In June, China issued six-month export licenses for select rare-earth materials following trade talks with the US, but continued to block exports of magnets intended for defence use, maintaining restrictions on military-grade components. 'Even automotive companies are struggling to secure these magnets—so how can drone companies expect to fare better?" Mulgund said. Rare-earth alternatives Currently, there is no viable recycling mechanism, and substituting with ferrite magnets or soft magnetic composites is not feasible, he added. These alternatives do not offer the same performance characteristics—such as magnetic strength, weight efficiency, or thermal stability—required for high-end drone applications. Moreover, manufacturers don't stock large inventories. 'Demand is relatively low, as drones aren't high-volume products; much of the production is order-driven. Companies typically receive an order first and then procure parts, operating largely on a just-in-time basis," Mulgund said. Substitutes like ferrite magnets and soft magnetic composites exist but offer significantly lower magnetic strength, making them unsuitable for drones that require compact, high-efficiency components, according to Mulgund. Yet investor appetite is evolving. As localisation deepens and strategic relevance grows, long-term capital is beginning to flow in. Recently, Raphe mPhibr raised $100 million, the largest fundraising effort in India's drone sector to date. However, CEO Vivek Mishra clarified that the funding isn't for a single product but will go toward expanding both R&D and manufacturing capacities—it is not tied to a specific product like drones. Also Read: How new rules may change your app-cab rides The startup started in 2017 with a modest 2,000-square-foot research space. Later, it scaled up to a 100,000 sq ft integrated research and manufacturing facility, which has now expanded to a 650,000 sq ft facility. The company serves over 10 Indian government clients, including the Army, Navy, Air Force, and armed police forces. Mishra said that the company has sold over 400 drones in the past 12 months alone. On the rare earth magnet front, Mishra said the company has been actively working with authorities and advocating for indigenous manufacturing. 'Things have been moving, but they've picked up pace over the last couple of months. We are now setting up local manufacturing for these magnets as well. For a few months, there might be certain problems—but it's solvable," he toldMint. Defence capabilities 'There's growing investment in drone manufacturing in India, but there's no magic bullet—you can't just pump in money and expect startups to suddenly make everything indigenous," said Pushkar Singh, co-founder of investment firm Tremis Capital. 'The government is now focusing on manufacturing simpler, less complex components locally, as making high-precision components requires machining expertise we currently lack." Less complex components—such as frames, casings, or basic assemblies—are easier and quicker to manufacture compared to high-precision components, which demand advanced machining skills, tighter tolerances, and specialised equipment India is still developing. He added that while Indian startups are unlikely to make missiles or tanks, drones represent a strategic sweet spot, especially with rising demand in modern warfare. 'Modern warfare is shifting towards drones. The government wants to reduce dependency and boost exports. Many smaller countries can't afford fighter jets or missiles, but they can afford drones. That creates massive export potential for Indian startups." Mumbai-based IdeaForge says it has already built a fully proprietary autopilot stack—meaning all flight control software and systems have been developed in-house, without using any third-party or open-source code. 'We have written the software for our autopilot from the ground up. The PCB (printed circuit board), which connects and powers key electronic components, is also our own design—and we ensure that microcontrollers (chips that control drone functions), don't come from geographies of concern (countries that may pose security or trade risks)," said Ankit Mehta, co-founder of IdeaForge. He added that, depending on the product, their drones are around 70% indigenously built. US, Europe, Japan, Australia, and India have already begun allocating significant resources to rebuild rare-earth supply chains and reduce their dependence on China. Australia's Lynas Rare Earths has ramped up production, while the US has designated rare earths as critical minerals and is channelling funding into domestic mining and refining. Globally, countries are also investing in recycling technologies to recover rare earths from electronic waste and advancing R&D to develop magnet alternatives and reduce overall rare-earth usage in high-tech applications. 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Yahoo
09-06-2025
- Automotive
- Yahoo
Mullen CEO David Michery doubles down on commercial EVs after buying out Bollinger
DETROIT — After speaking with Mullen Automotive CEO David Michery for close to an hour, you get the impression he would be a formidable poker player. If there's the slightest chance that he holds the winning cards, no matter what's face up on the table, he's not likely to fold. And that's the way Michery, 58, is approaching his financially challenged electric vehicle startup, Mullen Automotive of Brea, Calif. Michery sat down with reporters from Automotive News and Crain's Detroit Business on June 4 at Mullen subsidiary Bollinger Motors' headquarters in Oak Park, Mich. Michery didn't flinch or give an inch under tough questions that probed his company's finances and why he remains determined to crank up production of EVs when the business case that justified their investment has, in part, been upended by tariffs and changing government policies. Sign up for the weekly Automotive News Mobility Report newsletter for the latest developments at the intersection of transportation and technology. Dressed in a black T-shirt and weathered blue jeans, wearing a gold watch and showing a smattering of colorful tattoos on his arms, Michery doesn't look like a traditional automotive CEO. He doesn't act like one, either. In the last 60 days, after Mullen stock twice sank to less than a nickel a share, Michery orchestrated two reverse stock splits to keep Mullen Automotive's shares in Nasdaq compliance. He gave away an unused 675,000-square-foot plant in Indiana to a creditor — which Mullen got in 2022 in its $240 million purchase of bankrupt Electric Last Mile Solutions, another failed EV startup. On June 3, Michery settled a lawsuit filed by Bollinger Motors founder Robert Bollinger, paying him $11 million and acquiring 95 percent of the company's shares. Michery essentially runs both Mullen Automotive and Bollinger Motors on the generosity of an unnamed benefactor who cuts a check for $1.5 million per week to the company and a $150 million line of credit that the company draws upon. That investor's total cash infusion into Mullen is more than $800 million, according to court documents. Michery believes the difficult market for EVs is temporary and his strategy is to wait out the tariff negotiations while positioning Mullen and Bollinger for big production increases. Virtually all Mullen and Bollinger vehicles contain significant Chinese-sourced components. Here is an edited transcript of the interview with Automotive News Reporter Richard Truett and Crain's Detroit Business Reporter Kurt Nagl. A: A lot of those losses are noncash losses. There's no excuse. EVs are out of favor right now. We have invested about $900 million since going public in 2021. The company has survived when no one else has. It's a testament to our resiliency and our ability to withstand the most awful market conditions in the last 20 years. It's no excuse for [our] performance, but if you look at the major OEMs, like General Motors and them shutting down the [Chevrolet] Bolt, that should tell you all you need to know. Backing off of EVs is something we haven't done, and we believe that is a viable space. Our core investor is a multibillionaire who is committed to the company. It's not going to go nowhere. I am a fighter. I don't give up. I like to believe that you have to kill me to stop me. The whole purpose of me buying Bollinger for $148.2 million initially and then investing another $77 million was because I believe in the B1 and the B2. This was never about a commercial vehicle, the B4. When I bought the company, it was about B1 and B2. I still stand firm and believe there is a big market for the B1 and B2 at some point in time. But we have to crawl before we walk and walk before we run. We are going to establish the commercial business, not only on the Bollinger side with the B4 and the B5, but on the Mullen side with the Class 1 and Class 3. We believe we will monopolize the commercial segment. I am determined to move Bollinger forward. I believe in the product. I believe in American engineering. Here in Detroit is the foundation of the electric car business, in general. Bollinger is, in my opinion, one of those brands that, realistically, will outlast everyone. We are banking our bet on Bollinger and their products because it is American engineered, American built and it is done here, in the great state of Michigan. To be clear, Bollinger was paused temporarily. The company is in the process of ramping production back up. We believe we will be in position to deliver new, upgraded vehicles within a 10-week period. We have over 40 vehicles in inventory that are ready to go to customers. We are working on cleaning up Bollinger's supply chain. We are also looking at getting the B5 ready. We are looking at all our best opportunities to give us maximum potential to not disrupt manufacturing. But, more importantly, scale to a level where I believe this is going to become a hot commodity. I want to produce hundreds of thousands of these [B4s]. In order to do that, you have to have the mechanism to go into high volume production. Roush. Let's be real. It's a low-volume manufacturing line. I want to move to high-volume production. That may be at Roush. Maybe I will acquire a high-volume manufacturing facility that could support ramping high-volume production for B4 and B5. There's a story behind that. You can't blame Bollinger for the current market. And you can't blame Bollinger for tariffs. And you can't blame Bollinger for Robert Bollinger filing this frivolous lawsuit. That hurt the company. But we have to set a clear narrative that Bollinger is going to move aggressively forward. It has customers. It has support. And it has a great product. There's a demand for the product and we will prove that. We have a $150 million equity line of credit. We've had it for about six months and we've only used about $1 million. That's an instrument that allows us to use our stock as currency. Picture that as a credit card. Mullen has a $150 million credit card that it can use at will. There's also three instruments that are preferred that total $80 million. We have another $80 million of firm, committed capital that we draw down on. We're like everyone else running our cash flow based on … again, we draw down on our instrument. We pay when we pay. Typically, we try to pay people within 30 [days], and we have been. We are no different than General Motors. Ask GM what is the timing of their [accounts payable]. Probably 60-90 days. We are paying people. We are still producing. We still own our factory. We have no debt against us. We are in a much better position than everyone else because we don't owe anything on what we own. Founded: 2021 CEO: David Michery Company headquarters: Brea, Calif. Plants: Tunica, Miss.; contract manufacturer, Roush Enterprises, Livonia, Mich. Products on sale: Bollinger B4 electric chassis cab; Mullen One electric cargo van; Mullen Three Class 3 commercial electric truck; Mullen Campus compact electric cargo van Products in development: Bollinger B1 and B2 consumer off-road utility electric vehicles; B5 and B6 chassis cab electric commercial trucks; Mullen Five electric crossover Financials: $7.9 million in revenue for 6-month period ending March 31; $162 million net loss; $2.3 million cash on hand Have an opinion about this story? Tell us about it and we may publish it in print. Click here to submit a letter to the editor.
West Australian
28-05-2025
- Automotive
- West Australian
The West is recycling rare earths to escape China's grip — but it's not enough
As China tightens its grip on the global supply of key minerals, the West is working to reduce its dependence on Chinese rare earths. This includes finding alternative sources of rare earth minerals, developing technologies to reduce reliance, and recovering existing stockpiles through recycling products that are reaching the end of their shelf life. 'You cannot build a modern car without rare earths,' said consulting firm AlixPartners, noting how Chinese companies have come to dominate the supply chain for the minerals. In September 2024, the US Department of Defense invested $US4.2 million ($6.5m) in Rare Earth Salts, a startup that aims to extract the oxides from domestic recycled products such as fluorescent light bulbs. Japan's Toyota has also been investing in technologies to reduce the use of rare earth elements. According to the US Geological Survey, China controlled 69 per cent of rare earth mine production in 2024, and nearly half of the world's reserves. Analysts from AlixPartners estimate that a typical single-motor battery electric vehicle includes around 550 grams (1.21 pounds) of components containing rare earths, unlike gasoline-powered cars, which only use 140 grams of rare earths, or about 5 ounces. More than half of the new passenger cars sold in China are battery-only and hybrid-powered cars, unlike the U.S., where they are still mostly gasoline-powered. 'With slowing EV uptake (in the U.S.) and mandates to convert from ICE to EV formats receding into the future, the imperative for replacing Chinese-sourced materials in EVs is declining,' said Christopher Ecclestone, principal and mining strategist at Hallgarten & Company. 'Pretty soon, the first generation of EVs will be up for recycling themselves, creating a pool of ex-China material that will be under the control of the West,' he said. Only 7.5 per cent of new US vehicle sales in the first quarter were electric, a modest increase from a year ago, according to Cox Automotive. It pointed out that around two-thirds of EVs sold in the U.S. last year were assembled locally, but manufacturers still rely on imports for the parts. 'The current, full-blown trade war with China, the world's leading supplier of EV battery materials, will distort the market even more.' Of the 1.7 kilograms (3.74 pounds) of components containing rare earths found in a typical single-motor battery electric car, 550 grams (1.2 pounds) are rare earths. About the same amount, 510 grams, is used in hybrid-powered vehicles using lithium-ion batteries. In early April, China announced export controls on seven rare earths. Those restrictions included terbium, 9 grams of which is typically used in a single-motor EV, AlixPartners data showed. None of the six other targeted rare earths are significantly used in cars, according to the data. But April's list is not the only one. A separate Chinese list of metal controls that took effect in December restricts exports of cerium, 50 grams of which AlixPartners said is used on average in a single-motor EV. The controls mean that Chinese companies handling the minerals must get government approval to sell them overseas. Caixin, a Chinese business news outlet, reported on May 15, just days after a US-China trade truce, that three leading Chinese rare earth magnet companies have received export licenses from the commerce ministry to ship to North America and Europe. What's concerning for international business is that there are barely any alternatives to China for obtaining the rare earths. Mines can take years to get operating approval, while processing plants also take time and expertise to establish. 'Today, China controls over 90 per cent of the global refined supply for the four magnet rare earth elements (Nd, Pr, Dy, Tb), which are used to make permanent magnets for EV motors,' the International Energy Agency said in a statement. That refers to neodymium, praseodymium, dysprosium and terbium. For the less commonly used nickel metal hydride batteries in hybrid cars, the amount of rare earths goes up to 4.45 kilograms, or nearly 10 pounds, according to AlixPartners. That's largely because that kind of battery uses 3.5 kilograms of lanthanum. 'I estimate that around 70 per cent of the over 200 kilograms of minerals in an EV goes through China, but it varies by vehicle and manufacturer. It's hard to put a definitive figure on it,' said Henry Sanderson, associate fellow at The Royal United Services Institute for Defence and Security. However, there are limits to recycling, which remains challenging, energy-intensive and time-consuming. And even if adoption of EVs in the U.S. slows, the minerals are used in far larger quantities in defence. For example, the F-35 fighter jet contains over 900 pounds of rare earths, according to the Center for Strategic and International Studies, based in Washington, DC. China's rare earths restrictions also go beyond the closely watched list released on April 4. In the last two years, China has increased its control over a broader category of metals known as critical minerals. In the summer of 2023, China said it would restrict exports of gallium and germanium, both used in chipmaking. About a year later, it announced restrictions on antimony, used to strengthen other metals and a significant component in bullets, nuclear weapons production and lead-acid batteries. The State Council, the country's top executive body, in October released an entire policy for strengthening controls of exports, including minerals, that might have dual-use properties, or be used for military and civilian purposes. One restriction that caught many in the industry by surprise was on tungsten, a US-designated critical mineral but not a rare earth. The extremely hard metal is used in weapons, cutting tools, semiconductors and car batteries. China produced about 80 per cent of the global tungsten supply in 2024, and the U.S. imports 27% of tungsten from China, data from the U.S. Geological Survey showed. About 2 kilograms of tungsten is typically used in each electric car battery, said Michael Dornhofer, founder of metals consulting firm Independent Supply Business Partner. He pointed out that this tungsten is not able to return to the recycling chain for at least seven years, and its low levels of use might not even make it reusable. '50 per cent of the world's tungsten is consumed by China, so they have business as usual,' Lewis Black, CEO of tungsten mining company Almonty, said in an interview last month. 'It's the other 40 per cent that's produced (in China) that comes into the West that doesn't exist.' He said when the company's forthcoming tungsten mine in South Korea reopens this year, it would mean there would be enough non-China supply of the metal to satisfy US, Europe and South Korean needs for defence. But for autos, medical and aerospace, 'we just don't have enough.'
