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Daily Update — May 7, 2025

Recycled Battery Materials; Utilities Adopting AI; and Auto Tariffs Update

Today is Wednesday, May 7, 2025, and here’s your curated selection of Essential Intelligence on global markets from S&P Global. Subscribe to be notified of each new Daily Update.

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Energy Transition & Sustainability

Listen: Navigating the demand for recycled battery materials and rise of black mass in the EV era

 

Global electric vehicle adoption is increasing the demand for recycled battery raw materials. While the recent slowdown in the growth of EV sales and an oversupply of battery metals have weighed on battery recycling in some regions, the recognition of black mass — the mixture of material recovered from the recycling of lithium-ion batteries — as a sustainable source of critical raw materials has cemented its strategic importance in the eyes of global policymakers.

 

In this episode of the “Commodities Focus” podcast, S&P Global Commodity Insights experts explore the trends, challenges and opportunities in the battery recycling and black mass markets.

Artificial Intelligence

Distributech 2025: More intelligent energy grid looms as utilities adopt AI

 

The transition to a digitally transformed and intelligent energy grid, driven by technologies such as the industrial internet of things, AI and machine learning, was a principal theme at the Distributech 2025 event. These advancements are being leveraged to address persistent challenges related to grid reliability, security and efficiency. Key vendors shared insights on how these technologies are reshaping the utility landscape, emphasizing a shift to proactive from reactive grid management. 

 

The event also illustrated a growing acceptance of AI-driven solutions within the traditionally conservative utility sector. C-level executives are increasingly comfortable with integrating AI to enhance reliability, enable predictive maintenance and optimize operations. To navigate the evolving energy landscape, industrial software vendors are encouraged to develop open and interoperable platforms that support seamless data integration from the grid edge to the cloud. 

Global Trade

Auto Tariffs Update: Some Relief, More Complexity for Automakers

 

Changes to US auto tariffs were recently implemented, bringing some relief to automakers and suppliers despite the ongoing 25% tariffs on imported vehicles and auto parts. An executive order issued April 29 clarified that certain tariffs will no longer be cumulative. For instance, an imported steel frame rail that previously faced a combined 50% tariff — 25% from the Section 232 tariff on steel and another 25% on auto parts — will now only incur the 25% auto parts tariff. 

 

The 25% tariff on auto parts, effective May 3, includes provisions to alleviate costs for parts intended for assembly in US-produced vehicles. US Customs and Border Protection confirmed that auto parts compliant with the United States-Mexico-Canada Agreement will not be subject to the new tariff. 

 

S&P Global Mobility offers tailored, ongoing advisory services designed to help you navigate tariffs with Scenario Planning. 

In case you missed it

  • Crude oil futures fell in midafternoon Asian trade on May 5 as OPEC+'s decision to increase production in June put pressure on those pessimistic about oil.
  • ADNOC Gas raised its outlook for 2025 sales, with first-quarter revenue rising 1% from a year earlier to nearly $6.1 billion, as sales are set to receive a seasonal boost from hot summer weather and higher air-conditioning demand at power plants.
  • The stock prices of US insurers were mixed at the end of May despite executives downplaying tariff risks.

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