March Highlights in Global Trade

PRODUCT OF THE MONTH

The Future of Electric Batteries: How Oxy-Metals Can Boost Your Car’s Performance

Electric vehicles are taking over the world. They are cleaner, quieter, and cheaper than gas-powered cars. But electric vehicles need electric batteries to run. And electric batteries need suitable materials to store and deliver electricity. That’s where oxy-metals come in.

Oxometallic or Peroxometallic Acid Salts are metals that contain oxygen atoms in their structure. They have some fantastic properties that can make electric batteries better. For example, nickel is an oxy-metal that can replace cobalt in lithium-ion batteries. Using nickel instead of cobalt, manufacturers can increase the energy density of lithium-ion batteries by 15% while reducing their costs by 20%. That means more range and speed for your car at a lower price.

The demand for electric vehicles is growing fast as more people want to switch from gas to electricity. This creates a massive demand for oxy metals as necessary materials for electric batteries.

One way to measure this demand is by looking at the exports of oxy metals from South Korea and Japan. In 2022, these two countries controlled more than 60% of global exports.

Singapore's Electrical Machinery Exports Plunge

In January 2023, Singapore's exports reached a value of 29.16 billion, a drop of 5.69% from the previous year. One of Singapore's top exports, Electrical Machinery, dropped by -18.4% in the same period. This decline is particularly worrying for a country where exports of Electrical Machinery account for close to 40% of total exports.

Singapore's exports to China (-6.1%), Hong Kong (-9.2%), and the United States? (-10.3%) have taken a toll. The ongoing trade tensions between the U.S. and China could be part of the cause. The most significant drop in exports from Singapore to China during this period is in integrated circuits (-15.6%) and machines to make semiconductors (-31.4%), two products the U.S. restricts access to western technology to China.

However, it's not all bad news. Despite declining exports to China, Singapore's exports to other markets, such as Malaysia, Indonesia, and Vietnam, have increased.

Brazil's Ethanol Emerges as Key Ingredient in Hand Sanitizer Boom

Brazil is one of the top three exporters of undenatured ethanol with a concentration of over 80%, a highly pure and versatile alcohol commonly used in various industrial applications. It is a colorless, flammable liquid with a mildly sweet odor that evaporates quickly. In addition, its high purity makes it suitable for antiseptic purposes, such as hand sanitizer.?

It’s not surprising, therefore, that exports of pure ethanol from Brazil to the Netherlands have been increasing. For example, in January 2023, exports grew by 440%. One possible reason for the increase in exports is the high demand for hand sanitizers due to the COVID-19 pandemic.?

Some of the biggest hand sanitizer manufacturers in the world are Reckitt Benckiser Group, Procter and Gamble, Gojo Industry Inc., Henkel Corporation, and Unilever. These companies have operations in the Netherlands.

German exports end 2022 on a high note

Germany’s exports continued to grow in December 2022, reaching $137.4 billion, an increase of 6.59% compared to the same month of the previous year. This marked Germany’s twelfth consecutive month of export growth, which sold $1.095 trillion worth of goods to international markets from January to August 2022.

The car industry was the most significant contributor to Germany’s export success, which saw a 32.4% increase ($3 billion) in December 2022 alone. Half this increase came from the region of Bavaria, where car exports to the U.S. surged by 126%. Germany is one of the world’s leading car exporters, accounting for 16.8% of its total exports in 2020.

Some examples of car manufacturers exporting from Bavaria to the U.S. are:

• BMW, which has a headquarters and several plants in Bavaria, produces plug-in versions of its popular models such as X3, X5, and 3 Series. BMW also plans to launch its fully electric iX SUV and i4 sedan in the U.S. market in 2023.
• Audi, based in Ingolstadt, Bavaria, offers several electric vehicles in the U.S., such as e-tron SUV and e-tron GT sedan. Audi aims to have more than 20 fully electric models by 2025.
• MG, owned by China’s SAIC Motor but has a design center in Munich, Bavaria, sells its electric ZS SUV and EHS plug-in hybrid SUV in Europe. MG plans to enter the U.S. market by 2025 with its affordable EVs.

Germany’s export performance is expected to face challenges in 2023 due to rising energy costs, supply chain disruptions, and geopolitical tensions. However, German exporters remain optimistic about their prospects and plan to invest more in innovation and digitalization.