Yazılar

BMW and Yamaha Motor Invest in U.S. Rare Earths Startup Phoenix Tailings

/in /tarafından

BMW and Yamaha Motor have joined several other investors in backing U.S.-based rare earths processing startup Phoenix Tailings. The $43 million Series B funding round, which closed on December 20, will help Phoenix scale its operations to meet the increasing demand for rare earths outside of China. These metals, crucial for the production of magnets used in electric vehicles, electronics, and other technology, are essential to the transition to clean energy.

Rare earths are primarily refined using the solvent extraction method, which has become outdated in the U.S. due to its environmental costs. Chinese companies have dominated this process for decades, but recent actions by Beijing to limit exports have led to a global scramble for alternative sources and technologies. Phoenix Tailings claims its innovative process can produce rare earths from mined ore or recycled equipment with little to no emissions, offering a cleaner solution to the existing industry standards.

The investment round includes venture capital funds such as Envisioning Partners, MPower, and Escape Velocity, alongside BMW and Yamaha’s venture arms. Phoenix plans to use the funds to build a $13 million facility in Exeter, New Hampshire, scheduled to open by June 2025. The facility will have the capacity to produce 200 metric tons of rare earths annually.

Phoenix has already signed over $100 million in supply contracts but has not disclosed the partners. The company’s plans also include scaling its operations with larger processing plants in the U.S. if the Exeter site proves successful. With 33 employees, Phoenix aims to go public within three to five years.

The company’s approach of focusing on rare earths processing rather than mining sets it apart from competitors such as MP Materials and Lynas Rare Earths. Phoenix is also applying for U.S. government loans and grants to support its growth.

 

Putin Orders Enhanced AI Cooperation with China Amid Sanctions

/in /tarafından

Russian President Vladimir Putin has directed the government and the country’s largest bank, Sberbank, to strengthen cooperation with China in the field of artificial intelligence (AI). This order, which was published on the Kremlin’s website on Wednesday, comes three weeks after Putin revealed plans for Russia to collaborate with BRICS nations and other global partners on AI development.

The directive to Sberbank, the leading institution driving Russia’s AI initiatives, emphasizes the need to further cooperation with China in technological research and development in AI. This move is seen as part of Russia’s strategy to overcome technological barriers imposed by Western sanctions, which have significantly hindered Russia’s access to essential microchips and AI resources, crucial for sustaining its ongoing conflict with Ukraine.

In 2023, Sberbank CEO German Gref admitted that the scarcity of graphics processing units (GPUs), the critical hardware for AI, posed one of the biggest challenges for Russia. The sanctions have disrupted the supply of GPUs, which are primarily produced by Western companies, thus limiting Russia’s ability to advance in AI technology.

By deepening ties with non-Western nations, Russia aims to challenge the United States’ dominance in the AI sector, which is considered one of the most strategic and transformative technologies of the 21st century. Putin also announced the formation of an AI Alliance Network on December 11, intended to bring together experts from BRICS countries and other interested nations to foster innovation in this field.

Currently, Russia ranks 31st out of 83 countries in terms of AI implementation, innovation, and investment, according to Tortoise Media’s Global AI Index. This places Russia behind not only the United States and China but also fellow BRICS members such as India and Brazil.

 

Nexperia Parent Wingtech to Sell Electronics Arm Amid Geopolitical Shifts

/in /tarafından

Wingtech (600745.SS), the Chinese company that owns European chip maker Nexperia, has announced plans to sell roughly half of its business, focusing more on chipmaking in response to changes in the geopolitical environment. This strategic move follows the company’s recent inclusion on the U.S. government’s “entity list,” which targets firms perceived to aid the Chinese government in acquiring sensitive chipmaking technology.

The sale will involve Wingtech’s “product integration” business, which includes contract manufacturing of smartphones, home appliances, and other electronics. Following the transaction, Wingtech intends to concentrate its efforts on strengthening its semiconductor division and solidifying its position as a leading global player in the power semiconductor sector.

The filing, submitted to the Shanghai Stock Exchange, did not disclose the price of the sale, but it revealed that the business to be sold accounts for between 50% and 60% of Wingtech’s revenues, although it represents no more than half of its total assets. Luxshare Ltd., a Hong Kong-based company that is also the controlling shareholder of Luxshare Precision Industry Co. (002475.SZ), an Apple supplier, will be the buyer of the business.

Nexperia, which Wingtech acquired in 2019, has stated that it does not anticipate any impact on its operations from being placed on the U.S. entity list, though they were not immediately available for comment on the sale.