This is the type of action that is positive for graphite, especially Australian options like RNU and potentially ITM. Focus on ESG, as synthetic graphite (which is very high emissions) is one of the major factors capping natural graphite price.
ITM though need to prove they have the resource, which hopefully we will see in future months.France reforms EV subsidy to freeze out China-made cars
A buyerwill get up to $5,360 bonus for vehicle produced in low-carbon process
French carmakers, such asRenault, stand to gain from a new government policy to give a "greenbonus" to buyers of electric vehicles made using greenerfuels. © Reuters
MAILYS PENE-LASSUS, Nikkei staff writerSeptember 19, 2023 22:43 JST
PARIS -- The French government is redefining its electric vehiclesubsidy criteria under a new law designed to exclude Chinese-made cars.
Buyers of electric vehicles in France are eligible for a cashincentive of up to 5,000 euros ($5,360) but the government is now narrowing thecriteria for its "green bonus." Details will be published later onTuesday or on Wednesday about the method for calculating an environmentalscore, which is intended indirectly to limit Chinese car imports under thegovernment's "Green Industry" plan.
Paris' move comes just days after the European Commission announced aninvestigation into China's EV subsidies, which enable Chinese manufacturers toflood markets with cheap cars.
Economy and Finance Minister Bruno Le Maire said on Monday that France"will stop subsidizing electric vehicles, which have a poor carbonfootprint" and promote "low-carbon industrial productions." Thegovernment has budgeted more than 1 billion euros for green bonuses.
This new set of criteria will be based around the type of energy used inthe production of the vehicle and will automatically exclude almost all modelsmanufactured in China because factories there depend heavily on coal for fuel.France relies on a mix of energy sources, which means that buyers of cars madein the country will benefit from the green bonus.
The government claims that the criteria were set on a scientific basis,but the new rule clearly favors European carmakers. The Ministry of Economytold journalists that this would be compatible with the World Trade Organization'sregulations in terms of environmental impact.
"It is estimated that one-third of subsidized vehicles have a badcarbon footprint" at production, said an official of the Ministry ofEconomy during a press briefing on Monday.
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"A small sedan made in China produces 45% more emissions than thesame model [made in Europe]," the official said. "Typically, abattery produced in China emits 1.7 times more carbon [during the manufacturingprocess] than a battery produced in France, due to the energy mixes of the twocountries."
No other country warranted as many mentions during the briefing.
"The reasoning behind the reform is to lower our carbon footprintas much as possible, not just what is produced in France, not just ouremissions, but also imported emissions," the official said, adding thatthe French Agency for Ecological Transition has devised an "extremelyprecise" methodology to calculate greenhouse gas emissions from theproduction stage, using data supplied by manufacturers.
It will take into account the carbon footprint of production, includingthe materials and batteries used, as well as transportation.
"We're giving an advantage to French and European companies thatare making the effort to reduce their environmental footprint," said AgnesPannier-Runacher, France's minister for energy transition, on Monday.
Some models, particularly small cars, produced in Asia could beeligible, she added. The official list of eligible EV models will be publishedin mid-December.
Renault stock was up 1.9% while shares in Stellantis, which owns Peugeotand Citroen, rose 2% in afternoon trade in Paris.
