Dongwon Group has built a large-scale battery manufacturing facility in Mexicali, Baja California, Mexico. The investment totals $80 million (approximately KRW 120 billion). On Mar. 25 (local time), the Baja California state government and the Secretariat of Economic Innovation (SEI) officially announced the successful attraction of new Korean investment, stating that Mexicali is emerging as a key hub for high value-added industries.

UK rare earth exploration company Harena Rare Earths signed an exclusivity agreement to evaluate the acquisition of Paradigm Critical Minerals’ heavy rare earth and uranium assets in California. The asset is located in San Bernardino County, about 100 miles from Mountain Pass mine, MP Materials’ rare earth mine, the only producing rare earth mine in North America. Historical drilling showed significant potential for the project, with surface exploration identifying a light-to-heavy rare earth ratio of about 50:50 and grab samples with TREO grades of up to around 2%. Uranium grades reached 10 times those of currently operating projects worldwide. Harena will conduct due diligence to advance the transaction, and the project will complement its ionic clay rare earth project in Madagascar.

POSCO Future M announced on the 13th that it signed a memorandum of understanding (MOU) with Sila at InterBattery 2026 held at COEX in Seoul on March 11. Sila, headquartered in California, is a battery materials company specializing in high-performance silicon anode technology.

[SMM Morning Meeting Summary: Sticky US Inflation Persisted, and the Center of LME Zinc Moved Lower] Overnight, LME zinc opened at $3,313/mt. In early trading, LME zinc maintained a fluctuating trend and touched a high of $3,352/mt. Entering the European trading session, LME zinc quickly fell to a low of $3,296.5/mt. In the night session, LME zinc gradually recovered its losses and fluctuated upward, hovering near the daily average line, before closing down at $3,315.5/mt, down $26.5/mt, or 0.79%. Trading volume decreased to 91,642 lots, and open interest increased by 494 lots to 217,000 lots.

The California 1st District Court of Appeal has affirmed the CPUC's Net Billing Tariff (NEM 3.0), rejecting a lawsuit from environmental and solar advocates. The ruling upholds the 2022 decision that slashed rooftop solar export credits by up to 80% to address the 'cost shift' between solar and non-solar ratepayers. Despite industry data showing a 60% to 80% drop in sales and the loss of over 17,000 jobs since NEM 3.0 took effect, the court concluded that the CPUC met statutory requirements for 'sustainable growth'. This decision effectively ends the standalone solar business model in California, making battery storage integration essential for homeowners to achieve a viable return on investment.

Tesla plans to expand its Supercharger station in Yermo, California, deploying over 400 next-generation V4 stalls, making it the world's largest. The first of six phases will install 72 V4 stalls. Located between Los Angeles and Las Vegas, the site aims to alleviate charging congestion and features drive-through spots designed for the Cybertruck and trailers.

[US California Plans to Launch $200 Million EV Incentive Program] The California state government announced on February 2 that the state plans to launch a $200 million EV incentive program, which will be limited to first-time car buyers and require participating car makers to provide matching incentive funds. The proposal allows subsidies to reduce the upfront purchase cost of new or used EVs, but the specific subsidy amount has not yet been announced.

US President Donald Trump signed three congressional resolutions aimed at repealing California's mandate for the widespread adoption of electric vehicles (EVs). Under an exemption granted by the US Environmental Protection Agency (EPA) during the administration of former President Biden, California was permitted to implement the "Advanced Clean Cars II" program. This program stipulates that by 2035, all new vehicles sold in California must be electric, plug-in hybrid, or hydrogen-powered.

Jon Faust, a former senior advisor to Fed Chairman Powell, recently stated that while it is still too early to determine how the Israel-Iran conflict will unfold, the situation in the Middle East represents a "significant uncertainty" for the US Fed and could potentially trigger a US economic recession . Jon Faust is a monetary economist with a PhD in Economics from the University of California, Berkeley. He is currently a researcher at the Center for Financial Economics at Johns Hopkins University. He has served as an internal advisor to three Fed Chairmen: Bernanke, Yellen, and Powell, and has worked at the US Fed for nearly 20 years. A sharp rise in oil prices could trigger an economic slowdown . In an interview with the media, Faust said, "If this conflict leads to a significant increase in oil prices and further impacts uncertainty and confidence, it could trigger an economic slowdown" . He pointed out, "Economic recessions typically occur when consumers and businesses are hit by some major shock. We may be seeing this unfold in the Middle East, and the likelihood of this scenario has slightly increased." Wall Street giant JPMorgan Chase warned in a report last week that under extreme geopolitical circumstances, particularly those involving Iran, oil prices could nearly double, reaching levels of $120-130 per barrel. Key points of this week's interest rate meeting The US Fed will hold a meeting on June 17-18 to set interest rate policies. The market widely expects the central bank to maintain interest rates unchanged for the fourth consecutive time. Since December last year, the US Fed has kept the benchmark interest rate in the range of 4.25% to 4.5%. Faust pointed out that the key point of this week's interest rate meeting is whether Powell will further clarify whether the future risk is more likely to be an outbreak of inflation or a weakening of the labour market . "This will provide some guidance for the policy direction this year," but so far, the US Fed has not shown a clear preference for either direction. Powell has already indicated that Trump's tariffs are highly likely to lead to an increase in US inflation or a slowdown in the labour market. In March this year, Fed officials expected two interest rate cuts this year. Fed observers are now focusing on whether the latest dot plot, to be released this week, will show policymakers lowering their forecasts for the number of interest rate cuts. Faust said he believes the so-called dot plot will not be very convincing. From the current perspective, the probabilities of the US Fed not cutting interest rates, cutting once, or cutting twice this year are equal . Not cutting interest rates is good news. US President Trump has recently increased pressure on Powell in recent days, urging him to cut interest rates promptly. In response, Faust said that while it's never good to be told by others that one's work is not up to par, these criticisms are "largely irrelevant" to the US Fed's policy path. Faust stated that although the US CPI inflation in May was lower than expected, it did not open the door for the US Fed to accelerate its actions. He pointed out that while the data has alleviated some concerns about the "worst-case scenario" for inflation, it is still too early to judge the impact of tariffs on inflation. He also noted that if the US Fed does not cut interest rates this year, it would be good news for everyone except the president, as it would mean that the labor market remains robust and the US economy has not weakened to the point where an interest rate cut is necessary. He also said that there is still significant uncertainty about how tariffs will ultimately be implemented and their impact, the data may not support the US Fed taking action in September, and he predicts a 50% likelihood of an interest rate cut in December.

According to a report on Mining.com, Dateline Resources (DR) has gained further political support. With the public endorsement of Interior Secretary Doug Burgum, the company will develop the second rare earth mine in the US. On the 8th, Burgum stated in an interview with Fox News that the resumption of production at Colosseum, California, is a "critical link" in expanding the US's critical minerals supply chain. The project owner, DR, said that this endorsement "highlights the strategic significance of Colosseum in reducing the US's reliance on overseas rare earths." Previously, the Interior Department had already approved the company's mining plan. Shortly after Burgum publicly expressed his support, the management team, led by company manager Stephen Baghdadi, met with Burgum at the Interior Department headquarters in Washington, D.C., to discuss the next steps for the project. In a press release, DR stated that the discussion affirmed the significance of the mine to the US's rare earth supply chain, which is crucial for advanced technologies and national security, and that it is a known deposit in the US with the potential for "faster development." The Australian miner said that with the support of high-level officials from the US Department of Energy (DOE) and the proposed National Energy Dominance Council by Trump, Burgum "reiterated his commitment to accelerating rare earth production in the US, reflecting his special concern for the Colosseum rare earth mine." The Colosseum project is located along the WLT (Walker Lane Trend) in California, 10 kilometers north of Mountain Pass, the only operating rare earth mine in the US. The project has a long history, having been mined as early as the California Gold Rush. In the late 1980s, LAC Minerals conducted large-scale gold mining activities here, producing a total of 344,000 ounces of gold from two pits. The mine was closed in 1993. Subsequently, Barrick Gold acquired the project but only carried out minimal work over the next 20 years. In 2021, DR purchased the Colosseum project, reviewed the work of the U.S. Geological Survey (USGS), and attempted to identify radioactive indications within the Colosseum-Mountain Pass corridor. Based on the evaluation results, the company's team believes that its geological setting is similar to that of Mountain Pass. The Mountain Pass rare earth mine commenced production in 1952 and was a significant global rare earth producer from the 1960s to the 1990s. Technical evaluations indicate that rare earth-bearing ore is present within the boundaries of Colosseum. However, due to its proximity to the Mojave National Preserve, the mine has been on hold in recent years. Currently, Colossus has no rare earth resources, only gold resources compliant with the JORC 2012 standard, with two-thirds being measured and indicated resources. A 2024 scoping study indicates that the project has a mine life of over 8 years, with an annual gold production capacity of 75,000 ounces.