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Chance for Italy’s toxic steelworks to finally go green

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The steelworks, which date from the 1960s, has been dogged by legal and political battles
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Doctor Maria Grazia Serra’s patients have been “breathing, eating and drinking” toxins from Taranto’s steelworks for decades, but a dispute over the vast Italian plant could finally see its ecological conversion.

Italy’s hard-right government is set to decide this week whether to place the debt-ridden former Ilva plant under state administration, in a bid to secure production and thousands of jobs in a region with crippling unemployment.

Prime Minister Giorgia Meloni considers the site a strategic asset, but experts, authorities, residents and doctors are urging her to look beyond short-term measures to keep the site afloat.

“If we want to try to relaunch production in compliance with European policies, we have no choice but to shut down the sources of pollution, radically converting the plant’s technologies,” Taranto mayor Rinaldo Melucci told parliament last week.

The steelworks, which dates from the 1960s and is one of Europe’s largest, has been dogged by legal and political battles since 2012 over its killer emissions, with experts linking thousands of deaths to exposure to pollutants.

ArcelorMittal, the world’s second-largest steelmaker, took control in 2018, pledging to boost production to eight million tonnes in 2025 while cleaning up the site, which runs along a stretch of the coastal city.

Among other measures, it installed giant coverings over huge stockpiles of iron-ore and coal, designed to prevent red and black toxic dust from blowing towards houses, parks and schools.

– ‘Urgent modernisation’ –

But relations between ArcelorMittal and Rome soured in 2019 after the then-government removed a pre-existing legal shield granting managers immunity from prosecution over the environmental disaster.

The once bright white coverings are now tinged red with dust, seen as a symbol of ArcelorMittal’s failure, Serra said.

She is one of 150 doctors who last month appealed to the government not to waste the opportunity to finally turn the plant around.

“Everyday we are forced to treat an increasing number of ever more serious, ever more disabling illnesses,” Serra told AFP.

As well as a rise in birth defects and cancers, a 2021 study found an alarming drop in IQs of children born or living near the plant.

The promised increase in output has not happened either.

Hit by energy price hikes and a weak global market, production fell below three million tonnes in 2023.

The government and ArcelorMittal accuse each other of failing to respect commitments.

Italy is the second-largest steel producer in Europe. Taranto is the last of its sites to produce primary rather than recycled steel, but experts say maintaining its coal blast furnaces is not a viable option.

“The existing 50-year-old facilities in Taranto have reached their natural end of life and need large investments for urgent modernisation,” energy consultant Alex Sorokin said.

“Investments in outdated coal-based technology would be an enormous waste of money,” he told AFP.

Transitioning from using coal to natural gas and electricity would reduce greenhouse emissions, while also costing less.

The costs associated with renewables within Europe are already lower than those of fossil fuels, according to the European Central Bank.

And dirty energy costs will rise as EU rules oblige steel plants to pay the full cost of carbon dioxide emissions by 2034.

At Taranto, natural gas could later be substituted with clean hydrogen — technology that is currently very expensive but is already being adopted at some European steel plants.

– ‘Political will’ –

Chiara Di Mambro, head of decarbonisation policy at Italian climate think tank ECCO, told AFP it would cost an estimated 2.5 billion euros to build the gas and electricity-powered units to produce eight million tonnes of steel in Taranto annually.

The site could be supplied from the grid and could use surplus renewable electricity. It would cost another six billion euros to transition to green hydrogen.

The EU has earmarked nearly 800 million euros for green initiatives in the city of Taranto as part of a green transition fund.

But last year, Rome turned down one billion euros from the separate post-pandemic EU recovery fund for hydrogen conversion at the plant, saying the 2026 deadline was too tight.

Industry association Federacciai has called on the government for subsidies, pointing to Germany and France, where Thyssenkrupp and ArcelorMittal have respectively secured two billion euros and 850 million euros from state coffers to help fund decarbonisation.

Italy’s industry minister, Adolfo Urso, has vowed a “dramatic intervention” to make the plant “competitive in green technology”, but cash-strapped Italy has yet to show signs it is willing to invest in its conversion.

Julian Allwood, professor of engineering and the environment at Cambridge University, said it was unlikely Rome would find any private sector company willing to fund the transition alone.

“The steel industry worldwide can’t make large capital investments because the margins are so low,” he told AFP.

Transformation of the site will happen only if and when Italy has the “political will” to support the costly transformation.

“But as we move to more renewables, that is the only sensible future for steel making”.

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ByteDance says ‘no plans’ to sell TikTok after US ban law

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A new US law requires TikTok to sever all ties with its Chinese parent ByteDance or face a ban in the United States
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Chinese tech giant ByteDance has said it has no plans to sell TikTok after a new US law put it on a deadline to divest from the hugely popular video platform or have it banned in the United States.

US lawmakers set the nine-month deadline on national security grounds, alleging that TikTok can be used by the Chinese government for espionage and propaganda as long as it is owned by ByteDance.

The Information, a tech-focused US news site, reported that ByteDance was looking at scenarios for selling TikTok without the powerful secret algorithm that recommends videos to its more than one billion users around the world.

ByteDance denied it was considering a sale.

“Foreign media reports about ByteDance exploring the sale of TikTok are untrue,” the company posted Thursday on Toutiao, a Chinese-language platform it owns.

“ByteDance does not have any plans to sell TikTok.”

TikTok has been a political and diplomatic hot potato for years, first finding itself in the crosshairs of former president Donald Trump’s administration, which tried unsuccessfully to ban it.

It has forcefully denied any link to the Chinese government, and said it has not and will not share US user data with Beijing.

TikTok says it has also spent around $1.5 billion on “Project Texas”, under which US user data would be stored in the United States.

Its critics say the data is only part of the problem, and that the TikTok recommendation algorithm — the “secret sauce” for its success — must also be disconnected from ByteDance.

TikTok CEO Shou Zi Chew has said the company will take the fight against the new law to the courts, but some experts believe that for the US Supreme Court, national security considerations could outweigh free speech protection.

– Bullish investors –

The estimated valuations of TikTok are in the tens of billions of dollars, and any forced sale would present major complications.

Among those with deep enough pockets, US tech giants such as Instagram-parent Meta or Google would likely be blocked from buying the app over competition concerns.

Further, many investors consider TikTok’s recommendation algorithm to be its most valuable feature.

But any sale of such technology by a Chinese company would require approval from Beijing, which designated such algorithms as protected technology following Trump’s attempt to ban TikTok in 2020.

Beijing has so far vocally opposed any forced sale of TikTok, saying it will take all necessary measures to protect Chinese companies.

While TikTok is a global phenomenon, it represents a small fraction of ByteDance’s revenue, according to analysts and investors. 

ByteDance has enjoyed explosive growth in recent years, becoming one of the most valuable companies in the world. Its international investors, including US firms General Atlantic and SIG as well as Japan’s SoftBank, have stakes worth billions.

“TikTok US is a very small part of the overall business. It is an exciting part of the story, for sure, but… relative to the overall size, it’s a very small part,” ByteDance investor Mitchell Green, of US-based Lead Edge Capital, told CNBC television last month.

“If it was kicked out of the US, we would not sell.”

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Five things we learned at the China Auto Show

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The consumer tech giant is the latest entrant to China's cut-throat EV market, with its new SU7 model the star of the show
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One of China’s largest auto shows kicked off in Beijing on Thursday, with electric vehicle makers keen to show off their latest designs and high-tech accessories to consumers in the fiercely competitive market.

Here are the key developments from Auto China’s first day of action:

– Xiaomi –

The consumer tech giant is the latest entrant to China’s cut-throat EV market, with its new SU7 model the star of the show.

Less than one month after its launch, almost 76,000 pre-orders have been placed, Xiaomi said, an accumulation of orders that will take months to deliver given its current production capacity.

Xiaomi boss Lei Jun was swarmed at Auto China on Thursday by legions of loyal fans, eager to follow the entrepreneur’s every move around the convention complex.

– XPeng –

Among car giant Tesla’s main rivals in the Chinese market is XPeng, which announced plans to begin large-scale deployment of AI-assisted driving in its vehicles in May.

“The AI learns the driver’s habits and can then imitate their driving” and enhance security, company boss He Xiaopeng told an audience while presenting the X9, a seven-seater “so spacious it can accommodate five bicycles in its trunk”.

– CATL –

Also present at the show was Chinese battery giant CATL, founded in 2011 in the eastern city of Ningde and now the undisputed global leader in EV batteries.

Its factories produce more than a third of car batteries sold worldwide and are equipped in models from a long line of foreign manufacturers including Mercedes, BMW, VW, Tesla, Toyota, Honda and Hyundai.

Responding Thursday to one of the main criticisms of EVs — long charging times that restrict mobility — CATL announced a remedy: “Shenxing Plus”, an ultra-fast battery pack that the firm says earns one kilometre (0.62 miles) in range for every second of charging.

– Nio –

In contrast to much of the EV industry, Chinese automaker Nio focuses on battery-swap technology rather than recharging individual vehicles.

The Shanghai-based firm founded 10 years ago said Thursday it had accumulated nearly 2,500 battery swapping points across China.

Nio also presented its ET7, a sedan model the firm claims has a range of 1,000 kilometres.

– Tencent-Toyota alliance –

Japanese auto-making juggernaut Toyota also announced Thursday that it would join hands with Chinese tech and gaming giant Tencent in AI, a bid to capitalise on local consumers’ increasing appetite for advanced smart car features.

The cooperation will apply to Toyota vehicles sold in China, said Toyota, which like other foreign manufacturers, has struggled to keep up in the ultra-competitive market as the industry shifts to electric.

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US to give Micron $6.1 bn for American chip factories

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US lawmakers have approved billions of dollars to support the onshoring of semiconductor production
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Micron is set to receive up to $6.1 billion in grants from the US government to help build its semiconductor plants in New York and Idaho, the White House said Thursday.

The award, to be announced by President Joe Biden as he travels to Syracuse, New York, is the latest in a series of efforts by Washington to bring semiconductor production back to the country.

The United States has been working to ensure its lead in the chip industry, especially with regards to the development of artificial intelligence — both on national security grounds and in the face of competition with China.

The investment will help Micron “bring back leading-edge memory chip manufacturing to the United States for the first time in 20 years,” Chuck Schumer of New York, the Senate majority leader, told reporters.

The $6.1 billion in direct funding comes under the CHIPS and Science Act, a major package of funding and tax incentives passed by Congress in 2022 to boost research and US semiconductor production.

The White House said the funds will go to supporting construction of two facilities in Clay, New York, and one in Boise, Idaho, where Micron is headquartered.

The US Commerce Department will also make up to $7.5 billion in proposed loans available under a preliminary deal.

Micron is set to invest up to $125 billion across both states over the next two decades “to build a leading-edge memory manufacturing ecosystem,” according to the White House.

The US chipmaker’s total investment is due to create more than 70,000 jobs, including 20,000 direct construction and manufacturing roles.

– Supply chain shocks –

While semiconductors were invented in the United States, the White House noted that the country makes just around 10 percent of the world’s chips now — and “none of the most advanced ones.”

Micron CEO Sanjay Mehrotra called the step a “historic moment” for US semiconductor manufacturing, saying its US investments will “create many high-tech jobs.”

“Leading-edge memory chips are foundational to all advanced technologies,” said Commerce Secretary Gina Raimondo.

She added that returning the development and production of advanced memory semiconductor technology to the country is “crucial for safeguarding our leadership on artificial intelligence and protecting our economic and national security.”

Chips are needed in powering everything from smartphones to fighter jets, and are increasingly in demand by automakers, especially for electric vehicles.

But the global chip industry is dominated by just a few firms, including TSMC in Taiwan and California-based Nvidia.

The United States is dependent on Asia for chip production, making it vulnerable to supply chain shocks, such as during the Covid-19 pandemic or in the event of a major geopolitical crisis.

“We’re already seeing AI revolutionize our world and grow at an unprecedented pace,” said Schumer. 

“We cannot, cannot have these chips made overseas, especially by competitors like China. We cannot have them be the only supplier,” he added.

Apart from the grants to Micron, Biden is also expected to announce four new “workforce hubs” in the Upstate New York region, the state of Michigan, as well as the cities of Philadelphia and Milwaukee.

According to senior government officials, such hubs are a way to spur more commitments from employers and educational institutions.

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