Latest news with #supplychain
The National
4 hours ago
- Business
- The National
Rare earths and real risk: Why the global supply chain needs a rethink
They are buried in our smartphones, embedded in EV motors, and essential to jet engines and wind turbines. Yet most people could not name a single rare earth element. This quiet invisibility belies their strategic importance. As the world accelerates towards a more digital and electrified future, rare earths have become indispensable – and increasingly, a source of geopolitical friction. The global supply chain behind these elements is under pressure. China currently produces nearly 70 per cent of rare earth ores and holds more than 95 per cent of global refining and separation capacity. For heavy rare earths, that number is closer to total control. This concentration gives China significant influence over price, availability and access to materials that power the energy transition and advanced defence technologies. In short, it is not just an economic advantage. It is a position of systemic control. But the challenges do not end with geographic concentration. The industry also struggles with what is known as the 'balance problem'. Not all rare earths are created equal. High-demand elements like neodymium and praseodymium, crucial for permanent magnets in electric vehicles and wind turbines, are co-mined with lower-demand elements such as cerium and lanthanum. Producers must extract and process everything, regardless of market demand. That creates inefficiencies, price distortions and sustainability concerns. This imbalance has strategic consequences. Without careful co-ordination, demand for magnet rare earths could outpace supply within the next decade. That does not mean catastrophe, but it does mean rising costs, tighter margins, and a squeeze on industries that depend on long-term stability. Momentum is finally shifting. As the urgency to diversify supply chains intensifies, ion adsorption clay (IAC) deposits have come into focus – and not just in China and Myanmar, where they have long been tapped. Exploration efforts are under way in countries like Brazil, Uganda and South-east Asia, offering new access to heavy rare earths. Unlike traditional hard-rock mines, IAC operations can reach production in just four to seven years, giving them a distinct strategic and commercial advantage. Refining is the next major hurdle. Mining rare earths without the ability to refine them only shifts the bottleneck, it does not solve it. Today, the vast majority of REE concentrates – even those mined outside China – are still sent back for processing. But that is beginning to change. Companies like Lynas in Malaysia, MP Materials in the US, and Neo Performance Materials in Estonia are building local refining capacity. These efforts mark early steps towards a more regionally balanced and secure supply chain. Innovation is also reshaping what's possible across the value chain. Manufacturing techniques like grain boundary diffusion allow for the reduction of dysprosium and terbium usage without compromising performance – a potential game changer given their sensitivity to supply shocks. Meanwhile, magnet recycling and by-product recovery from sources like phosphogypsum offer alternative streams of material with lower environmental impact. A co-ordinated, multinational response is essential. The US, Japan and Australia have launched public-private initiatives to diversify rare earth supply chains and strengthen refining capabilities. It is not just about securing raw materials. It is about ensuring that economic resilience and national security are not tied to a single point of failure. For those deeply involved in the rare earth ecosystem, from miners and refiners to end users and policymakers, the issues at stake go well beyond geology or engineering. They are a test of foresight and preparedness. The companies and countries that invest, innovate, and collaborate today will be the ones best positioned to thrive in the next era of industrial transformation. The 20th century was powered by oil. The 21st will be driven by rare earths. Those who recognise this early and act decisively will shape the future.
Bloomberg
12 hours ago
- Automotive
- Bloomberg
Ford Forced to Idle Multiple US Plants on China Magnet Shortage
Ford Motor Co. temporarily idled factories in the US over the last three weeks due to a shortage of magnets containing rare earth minerals, key components embroiled in US trade tensions with China. Chief Executive Officer Jim Farley said the situation demonstrates the need to develop a domestic supply chain for critical auto components. China has instituted a new approval process for exports of rare earths that has slowed supply lines.
Associated Press
12 hours ago
- Business
- Associated Press
Welsbach Technology Metals Acquisition Corp. ('WTMA') Announces Successful Approval for its Business Combination with Evolution Metals LLC ('EM') from the Extraordinary General Meeting of Stockholders on June 26, 2025
Chicago, IL and St. Louis, MO, June 27, 2025 (GLOBE NEWSWIRE) -- Welsbach Technology Metals Acquisition Corp. (OTC: WTMA), a publicly traded special purpose acquisition company, today announced the successful approval from its extraordinary general meeting ('Business Combination EGM') of stockholders for its Business Combination with Evolution Metals LLC ('EM'), dedicated to bringing to the US capital markets a secure, reliable global supply chain for critical minerals and materials ('CMM') that is independent of China. Through the Business Combination, WTMA and EM expect to acquire, scale and integrate five operating companies: (1) bonded magnet manufacturing; (2) sintered magnet manufacturing; (3) magnet metals and alloy production; (4) Li-ion battery recycling; and (5) smart machine design and automation. Upon closing, the combined company will be renamed Evolution Metals & Technologies Corp. ('EM&T') and expects to trade on Nasdaq under the symbol EMAT. EM&T's business is to leverage advanced technologies such as robotics and artificial intelligence (AI) to provide integrated midstream and downstream CMM recycling and processing of oxides, metals, magnet alloys, battery materials, and rare earth magnets for key industries including, but not limited to, the automotive, aerospace, defense, healthcare, high tech, consumer electronics and appliances, and renewable energy industries, while driving a sustainable future. 'Today's stockholder approval marks a transformative milestone in our journey to identify a vertically integrated and geopolitically independent supply chain for critical minerals and materials.' said Daniel Mamadou, CEO of WTMA. 'Our merger with Evolution Metals represents not only a strategic alignment of values and vision, but also a decisive step toward delivering long-term value for our stakeholders. We are proud to join forces with Evolution Metals, who shares our commitment to sustainability, innovation, and industrial resilience in an increasingly complex global environment.' David Wilcox, Managing Member of Evolution Metals LLC, added: 'This is an exciting moment for Evolution Metals and our partners. Upon the completion of our merger with WTMA, we we intend to accelerate our mission to create a secure, U.S.-centered supply chain for critical materials vital to clean energy, advanced manufacturing, and national defense. By vertically integrating a supply chain of critical materials production, we bring together complementary strengths and operational capabilities that position us to lead in an era where independence and supply chain security are more important than ever. Our plans are to replicate the Korean operations we expect to acquire into Missouri, creating a major industrial campus. We expect to fully process batteries and e-waste into salts, magnets and related materials – a dominant U.S. Champion in the mid-stream.' In addition, WTMA today announced that WTMA is extending the deadline for its stockholders to withdraw and reverse any previously delivered demand for redemption made in connection with the Business Combination EGM until WTMA determines not to accept reversals of redemption instructions. If a stockholder has previously submitted a request to redeem its shares in connection with the Business Combination EGM and would like to reverse such request, such stockholder may contact WTMA's transfer agent, Continental Stock Transfer & Trust Company, at [email protected]. You can find further information regarding the Business Combination and related matters in WTMA's filings with the US Securities Exchange Commission ('SEC'), including the Registration Statement on Form S-4. These filings are available on the SEC website: About Welsbach Technology Metals Acquisition Corp. Welsbach Technology Metals Acquisition Corp. (OTC: WTMA) is a blank check company focused on identifying high-impact technology metals businesses aligned with global sustainability and security trends. About Evolution Metals LLC Evolution Metals LLC is committed to establishing a secure, robust and reliable supply chain for critical minerals & materials (CMM) that is 100% independent of China for sourcing or supplying feedstocks. EM's strategy is to acquire and develop manufacturing, recycling and processing facilities to produce essential products (including magnets, battery feedstocks and related materials) for industrial uses such as, but not limited to, electric vehicles, electronics, environmental technologies and aerospace and defense applications. EM aims to support the creation of jobs, industry and manufacturing to promote a greener future by providing bespoke solutions to support its clients globally. Cautionary Statement Regarding Forward Looking-Statements Certain statements made in this press release are 'forward looking statements' within the meaning of the 'safe harbor' provisions of the United States Private Securities Litigation Reform Act of 1995. When used in this press release, the words 'anticipate,' 'believe,' 'can,' 'contemplate,' 'continue,' 'could,' 'estimate,' 'expect,' 'forecast,' 'intend,' 'may,' 'might,' 'outlook,' 'plan,' 'possible,' 'potential,' 'predict,' 'project,' 'seek,' 'should,' 'strive,' 'target,' 'will,' 'would' and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. The forward-looking statements are based on the current expectations and beliefs of the management of WTMA and EM, as applicable, and are inherently subject to uncertainties and changes in circumstances and their potential effects and speak only as of the date of such statement. There can be no assurance that future developments will be those that have been anticipated. These forward-looking statements involve a number of risks, uncertainties or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements. These risks and uncertainties include, but are not limited to, those discussed and identified in public filings made with the U.S. Securities and Exchange Commission ('SEC') by WTMA and the following: WTMA's ability to complete the proposed Business Combination or, if WTMA does not consummate such proposed Business Combination, any other initial business combination; the risk that the consummation of the proposed Business Combination is significantly delayed; the ability to recognize the anticipated benefits of the proposed Business Combination; the risk that the announcement and consummation of the proposed Business Combination disrupts EM's current plans; following the closing of the proposed Business Combination, WTMA's (which intends to change its name to Evolution Metals & Technologies Corp. (such post-closing entity is referred to as 'New EM')) ability to successfully integrate the business and operations of the target companies (the 'Target Companies') into its ongoing business operations and realize the intended benefits of New EM's acquisition of the Target Companies; New EM's ability to secure sufficient funding to successfully rebuild Critical Mineral Recovery, Inc.'s recycling facility with significant expansion on management's expected timeline and budget, or at all; unexpected costs related to the proposed Business Combination; expectations regarding New EM's strategies and future financial performance, including future business plans, expansion and acquisition plans or objectives, prospective performance and opportunities and competitors, revenues, products and services, pricing, operating expenses, product and service acceptance, market trends, liquidity, cash flows and uses of cash, capital expenditures, and New EM's ability to invest in growth initiatives; satisfaction or waiver (if applicable) of the conditions to the proposed Business Combination, including, among other things: (i) approval of the proposed Business Combination and related agreements and transactions by the WTMA stockholders, the holder of the EM member units and the holders of the equity interests of the other Target Companies, (ii) receipt of approval for listing on Nasdaq Stock Market LLC ('Nasdaq') the shares of WTMA common stock to be issued in connection with the Business Combination, and (iii) the absence of any injunctions; that the amount of cash available in the trust account and from certain other investments is at least equal to the minimum available cash condition amount, after giving effect to redemptions by WTMA stockholders and certain transaction expenses; the occurrence of any other event, change or other circumstances that could give rise to the termination of the Merger Agreement; the implementation, market acceptance and success of New EM's business model and growth strategy; the ability to obtain or maintain the listing of New EM's common stock on Nasdaq following the proposed Business Combination; limited liquidity and trading of WTMA's public securities; the amount of any redemptions by existing holders of WTMA common stock being greater than expected; WTMA's ability to raise financing in the future; WTMA's success in retaining or recruiting, or changes required in, New EM's officers, key employees or directors following the completion of the proposed Business Combination; WTMA officers and directors allocating their time to other businesses and potentially having conflicts of interest with WTMA's business or in approving the proposed Business Combination; the use of proceeds not held in the trust account or available to WTMA from interest income on the trust account balance; the impact of the regulatory environment and complexities with compliance related to such environment, including New EM's ability to meet, and continue to meet, applicable regulatory requirements; New EM's ability to execute its business plan, including with respect to its technical development and commercialization of products, and its growth and go-to-market strategies; New EM's ability to achieve sustained, long-term profitability and commercial success; operational risks, including with respect to New EM's use of agents or resellers in certain jurisdictions, New EM's ability to scale up its manufacturing quantities of its products, New EM's outsourcing of manufacturing and such manufacturers' ability to satisfy New EM's manufacturing needs on a timely basis, the availability of components or raw materials used to manufacture New EM's products and New EM's ability to process customer order backlog; New EM's revenue deriving from a limited number of customers; geopolitical risk and changes in applicable laws or regulations, including with respect to New EM's planned operations outside of the U.S. and Korea; New EM's ability to attract and retain talented personnel; New EM's ability to compete with companies that have significantly more resources; New EM's ability to meet certain certification and compliance standards; New EM's ability to protect its intellectual property rights and ability to protect itself against potential intellectual property infringement claims; the outcome of any known and unknown litigation and regulatory proceedings, including any proceedings that may be instituted against WTMA or EM following announcement of the proposed Business Combination; the potential characterization of New EM as an investment company subject to the Investment Company Act of 1940, as amended; and other factors detailed under the section entitled 'Risk Factors' in the Registration Statement. Should one or more of these risks or uncertainties materialize or should any of the assumptions made by the management of WTMA, EM and the other Target Companies prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements. Except to the extent required by applicable law or regulation, WTMA, EM and the other Target Companies undertake no obligation to update these forward-looking statements to reflect events or circumstances after the date of this press release or to reflect the occurrence of unanticipated events. Investor & Media Contacts Judith McGarry Evolution Metals LLC Tel: +1 (415) 971-2900 Email: [email protected] Daniel Mamadou Chief Executive Officer Welsbach Technology Metals Acquisition Corp. Tel: +1 (251) 280-1980 Email: [email protected]
Yahoo
13 hours ago
- Business
- Yahoo
DOT Secretary plans to use AI to solve carrier identity
The Freight Fraud Crisis The trucking industry is grappling with a surge in freight fraud, leaving carriers, brokers, and shippers vulnerable to sophisticated scams like identity theft and unauthorized double brokering. These schemes disrupt supply chains, undermine trust, and cause significant financial and logistical challenges. The root cause is the Federal Motor Carrier Safety Administration's (FMCSA) inadequate management of carrier identities, which allows criminals to exploit outdated systems and weak oversight. How Criminals Exploit Basic Vulnerabilities The FMCSA's outdated data systems and lax verification processes make fraud easy. Criminals register fraudulent carrier identities using stolen credentials or fake documents to obtain Motor Carrier (MC) numbers with little scrutiny. Without real-time monitoring, they manipulate records or reactivate dormant registrations undetected, enabling double brokering—where fraudsters pose as legitimate carriers, secure loads, and subcontract them without authorization, leaving others unpaid. Identity theft is widespread, with criminals hijacking carriers' profiles to divert payments or secure contracts, damaging reputations. The lack of biometric or multi-factor authentication allows repeat offenders to re-enter under new aliases. Many of these issues stem from basic oversights. The FMCSA doesn't require robust identity checks, like verifying driver's or business licenses, and lacks cybersecurity measures like two-factor authentication. Automated alerts for suspicious activities, such as multiple registrations from one IP address, are missing, and routine database audits to flag duplicate or dormant MC numbers are inconsistent. These are standard practices in banking and e-commerce, yet the FMCSA's reliance on manual processes and outdated software leaves loopholes for criminals. Organized crime syndicates exploit these gaps, costing the industry millions annually. Private companies like Highway, RMIS, and Carrier Assure have stepped in with innovative solutions. Highway offers real-time carrier monitoring and fraud detection tools, while RMIS provides onboarding and risk assessment to verify carrier legitimacy. Carrier Assure uses advanced analytics to score carrier reliability and flag suspicious activity. These platforms help brokers avoid bad actors, but their impact is limited without systemic change. To make a real difference, the DOT must lead, working with law enforcement to prosecute fraudsters and enforce stricter regulations, ensuring a coordinated effort to protect the industry. A Robust Response from the DOT Under Secretary Sean Duffy, the DOT is tackling freight fraud with a forward-thinking strategy. Artificial intelligence (AI) is central, detecting fraud patterns that traditional methods miss. Speaking on FreightWaves' What The Truck?!? podcast on June 27, 2025, Duffy said, 'We have great AI tools that will bring us light years ahead in rooting out fraud patterns.' These tools aim to strengthen FMCSA system security and data integrity, preventing fraud before it harms legitimate businesses. The DOT is also partnering with law enforcement to identify and prosecute bad actors, fostering accountability across the supply chain and creating a secure, competitive environment for truckers. Learning from Past Shortcomings Historically, insufficient oversight and inactive load boards have worsened fraud vulnerabilities. Private-sector platforms have tried to fill these gaps, but their fragmented efforts lack cohesion. Private tech solutions have had to compensate for the DOT's poor management of carrier identity. Duffy's initiatives mark a shift toward unified oversight, combining technology and accountability to address longstanding issues. Private solutions aren't going away, but they will build upon DOT's efforts. Building a Future-Ready Framework The DOT's strategy anticipates future threats by integrating AI, strengthening data security, and collaborating with law enforcement to set new fraud prevention standards. Duffy emphasized, 'Rules must eliminate fraud and double brokering while treating truckers fairly.' This approach creates a resilient framework adaptable to evolving fraud tactics, ensuring long-term protection. A Path to a Secure Trucking Industry The DOT's plan—leveraging AI, law enforcement partnerships, and regulatory reform—offers a promising path to secure the trucking industry. By addressing FMCSA vulnerabilities and prioritizing carrier identity management, the DOT aims to build a fair, transparent, and secure marketplace, safeguarding freight operations and supporting legitimate carriers, brokers, and shippers. The post DOT Secretary plans to use AI to solve carrier identity appeared first on FreightWaves.
Reuters
16 hours ago
- Automotive
- Reuters
China's rare earths are flowing again, but not freely
BERLIN/BEIJING, June 27 (Reuters) - The threat of mass shutdowns across the automotive supply chain is fading as Chinese rare earth magnets begin to flow, though automakers and suppliers say production plans still face uncertainties and a continued risk of shortages. European suppliers have received enough licences to avoid the widespread disruptions predicted earlier this month but hundreds of permits remain pending, said Nils Poel, head of market affairs at supplier association CLEPA. The rate of issuance is "accelerating" and has risen to 60% from 25%, he said, but cases where the end users are based in the United States, or where products move through third countries like India, are taking longer or not being prioritised. "Overall the feeling is that we probably will still have production in July and that the impact will be manageable," he said. "Maybe here and there a production line will be affected, but we have avoided that for the moment." Volkswagen ( opens new tab said in a statement to Reuters its supply of rare earth components was stable while rival Stellantis ( opens new tab said it had addressed its immediate production concerns. China restricted exports of seven rare earths and related magnets in April in retaliation for U.S. tariffs. Three months later there remains huge uncertainty about how it intends to police its opaque and complex export licensing system. Since the restrictions were imposed, rare earth magnet exports from China have fallen roughly 75%, forcing some automaker production lines to halt in Asia, Europe and the United States. The White House said on Thursday it had signed a deal with China to speed up rare earth approvals without providing details. Beijing said hours later both parties had confirmed details of the deal struck in London earlier this month, which was meant to resolve the rare earth issue, and it would process export licences in accordance with the law. Neither party detailed any changes to the existing export licensing system. U.S. Treasury Secretary Scott Bessent said in an interview with Fox Business Network on Friday that, under the agreement announced on Thursday, rare earth shipments to the United States from China would be expedited to all companies that have previously received them on a regular basis. "I am confident now... the magnets will flow," Bessent said. "This is a de-escalation." Two weeks ago the car industry was in a "full panic," but licence approvals by China have sped up and there is now less threat of a sudden stop, according to an executive at a leading U.S. automotive supplier and a source with knowledge of the supply chain at a major European carmaker. Both asked not to be named because of the sensitivity of the issue. China is approving the "bare minimum" of critical licences for European firms to avoid production stoppages, a European official told Reuters, also speaking on condition of anonymity. U.S. magnet maker Dexter Magnetic Technologies, which has defence clients, among others, has received just five of 180 licences since April, CEO Kash Mishra told Reuters, adding those were intended for non-defence sectors. "It's an extended delay," he said. "It's 45 days trying to get the paperwork right for the supplier, and then it's 45 more days or so before any licences are granted."
