Good morning, friends. Our third issue for the month comes packed with investment updates on the back of Trump’s GCC tour. We also have a flurry of debt, renewables, and earnings updates from across the region. But first, an update on the imminent CATL listing in Hong Kong…

THE BIG STORY ABROAD THIS WEEK- The biggest share listing of the year: Shares of Chinese EV battery maker powerhouse CATL will debut on the Hong Kong Stock Exchange on Tuesday, according to its prospectus (pdf). The company is targeting proceeds of at least USD 4 bn through the issuance of 117.9 mn shares at HKD 263 apiece (c. USD 33.6) — with a potential for over-size and over-allotment adjustments.

Shouldering US onshore investors: The company is excluding US onshore investors from the sale in a move that aims to protect the company against geopolitical risks, especially if the US-China tension escalates. The move comes as the company comes under sharp US scrutiny — a US congressional committee recently called on advisors Bank of America and JPMorgan last month to ditch the sale after CATL’s Pentagon blacklisting this year over alleged links to China’s military. Still, both are working on the listing, alongside Goldman Sachs and Morgan Stanley.

CATL has other shoulders to lean on: While US onshore investors are usually vital for similar offerings in Hong Kong, CATL is banking on its market dominance and a strong mix of products for a robust demand for the sale. So far, more than 20 cornerstone investors have committed to purchase about USD 2.6 bn worth of stock, including Sinopec which pledged about USD 500 mn.

Regional interest: The Kuwaiti Investment Authority has reportedly pledged to invest USD 500 mn in the share sale. This comes as our region emerge as a crucial growth market for the EV battery giant as Chinese EV exports to the Gulf increased. CATL also ramped up its utility-scale energy storage system, recently partnering with Masdar on a USD 6 bn solar and battery project in the UAE earlier this year.

The story made headlines in the international press: Reuters | Bloomberg | | The Financial Times | WSJ | CNBC

WHAT WE’RE TRACKING REGIONALLY-

#1- Saudi’s nascent auto industry may need government support in the form of auto tariffs to help it take off, PIF-backed EV maker Lucid’s Interim CEO Marc Winterhoff told Bloomberg on the sidelines of the Saudi-US Investment Forum. The company is already in discussions with the government about the potential levies, which are proposed as a temporary measure, Winterhoff added.

A slippery slope: Implementing tariffs would run the risk of getting on the bad side with the US, which is already using the tactic to protect its auto industry and counter China’s rising dominance in the sector, Bloomberg adds. With this risk in place, Saudi’s Crown Prince Mohammed bin Salman would likely be hesitant to make such a move, Bloomberg reports.

High hopes for the future: Lucid is the kingdom’s only local manufacturer as of now, but the industry is set to grow once an auto manufacturing hub on the Red Sea — expected to add USD 25 bn to GDP by 2035 — is operational. Lucid is working on a facility with a 150k annual capacity slated for 2026 and plans on exporting its vehicles to Europe and Asia, excluding China, by 2027. Lucid is also looking to expand within the region, including in the UAE and Qatar, Winterhoff said.

#2- Emirates Global Aluminium’s (EGA) recycling plant in Al Taweelah is halfway done ahead of schedule, according to a press release issued on Tuesday. The company first broke ground on the project in November 2023, and production is expected to begin in the first half of 2026.

About the plant: The plant — located in Al Taweelah complex next to EGA’s existing smelter in Khalifa Industrial Zone — will process around 170k tons of aluminum scraps annually into low-carbon aluminum billets. The production is earmarked for both local demand and exports under the name RevivAL.

EGA has more: EGA has another pilot plant in Al Taweelah to convert bauxite residue — a waste stream from aluminum refining — into manufactured soil called Turba. The pilot is part of large-scale trials for its aluminum waste management mechanism.

#3- Middle Eastern sovereign wealth funds are eyeing a potential acquisition of Towerbrook Capital Partners’ Austrocel Hallein bio-refinery in the Austrian Alps, Towerbrook’s senior advisor Patrick Verschelde told Bloomberg on Monday. The sale of the Austria-based business could fetch around EUR 500 mn (USD 569 mn) based on its FY2024 EBITDA of EUR 54 mn, according to Bloomberg’s calculations. European industrial players are also vying for a share in the asset, Verschelde said.

New tech holds promise: The Austocel refiner converts wood scrap into “specialty” chemicals that could be deployed in different sectors, such as mobility, manufacturing, healthcare, and agriculture, Bloomberg reported. The company recently ramped up production of a specialty agricultural biogel that optimizes irrigation efficiency — especially beneficial during drought — and increases crop yields by 20%, Bloomberg added. Unlike other synthetic variants — which need to be phased out by 2028 in Europe — the biogel does not contain microplastics. The firm is scaling up output fivefold to 1k tons this year.

#4- Kuwait is planning to start building the new phases of its Shagaya solar power project this year, Al Arabiya reported on Sunday, citing Electricity Minister Sabeeh Al-Mukhaizeem as saying at the Kuwait Sustainable Energy Week. Once operational, the plant will supply 26-27% of the country’s electricity. The investment ticket for the project, which will be implemented in phases, is still being finalized.

Moving forward with plans: Kuwait and China signed a framework agreement to advance the development of the third and fourth zones of the 3.5 GW Al Shagaya solar plant in March. Kuwait’s Electricity, Water, and Renewable Energy Ministry also tapped India’s Larsen & Toubro to develop a KWD 41.5 mn (c. USD 135 mn) overhead transmission line for Al Shagaya solar power station earlier this month.

#5- Fortescue eyes North Africa for major power link: Australia’s Fortescue is courting the UK government to support a proposed GBP multi-bn power link that will move green electricity from North Africa to Europe, executive chairman and founder Andrew Forrest told the Telegraph last week. The specific route has not been disclosed.

The big plan: The plan includes developing clean energy facilities with up to 100 GW capacity in North Africa, as well as installing multiple subsea cables — at a combined annual capacity of 500 TWh — to transport the generated electricity to Europe. The project would be backed by battery storage systems, and could include hydrogen-fired power plants to ensure stability with “24/7 baseload power,” Forrest said.

Piling up: The company is one of several already exploringinterconnections between the two continents. UK-based renewables developer Xlinks is looking to develop a 3.8k km high-voltage direct current subsea cable to transport 3.6 GW of renewable energy from a 10.5 GW solar and wind farm in Morocco to Britain’s power grid. Morocco also announced a new project that would connect Morocco’s Nador with France’s Marseille via a high-voltage power line and already has operational cables connecting to the Iberian peninsula. Egypt, Tunisia, and Algeria also have similar Europe-bound links in the pipeline.

Sound familiar? Fortescue said last year that it was partnering with Belgian maritime infrastructure firm Jan De Nul to lay a subsea cable to export green electricity from North Africa to Europe but the timeline and investment value were not disclosed. Juan De Nul also inked an agreement in October 2023 with Egypt to conduct feasibility studies on the possibility of building a Mediterranean subsea powerline with a capacity of 2 GW to export renewable electricity to Europe.

WHAT WE’RE TRACKING GLOBALLY-

#1-China has issued a 90-day pause of its export restrictions on dual-use goods — likely including rare earths — that it previously imposed on 28 US firms, Bloomberg reported on Wednesday, citing a Chinese Commerce Ministry statement. The move follows a tariff de-escalation between Beijing and Washington — the first major sign of easing trade tensions.

Uncertainty on rare earths inclusion? While the notice didn’t list specific items, earlier filings on 4 April and 9 April named seven rare earth elements as controlled dual-use goods. The pause gives US firms temporary relief, but it’s unclear if curbs will return after the 90-day window.

#2- The world’s first commercial-scale e-methanol plant has come online in Denmark, Reuters reported on Tuesday. The EUR 150 mn (c.USD 167 mn) Kasso plant will produce 42k metric tons, or 53 mn liters, of e-methanol annually using renewable electricity and CO2 captured from biogas and waste incineration facilities. The plant’s output is expected to replace fossil methanol in plastic production and to power the shipping industry with an alternative, low-carbon fuel as it looks to lower emissions ahead of the targeted 2027 launch of a shipping emissions levy.

The customers: Shipping giant Maersk is expected to be a major customer as it looks to power its low-emission fleet, while drugmaker Novo Nordisk and toymaker Lego plan to use e-methanol in manufacturing medical injection pens and plastic bricks, Reuters adds.

REMEMBER- Alternative fuels like green ammonia and e-methanol — both produced using renewables — remain more expensive than conventional marine fuel, largely due to limited production scale.

#3- Germany eyes grid financing reform: Germany’s network regulator has begun consultations to revise how electricity grid fees are structured, Reuters reported on Monday, citing a discussion paper by the regulator. The current system funds grid upkeep entirely through household and business electricity bills, but the country is currently considering a proposal that would require renewable energy producers to chip in. Stakeholders have until 30 June to give their feedback.

REMEMBER- Europe’s outdated electricity grid will require USDtns in investments to avoid large-scale blackouts and keep pace with rising renewable energy output and electricity demands.

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CIRCLE YOUR CALENDAR-

The UN Ocean Conference will be held from Monday, 9 June until Friday, 13 June in Nice, France. Aligning with SDG 14, the conference aims to encourage the conservation of oceans, seas, and marine resources and will be co-hosted by France and Costa Rica.

Canada’s Kananaskis will host the G7 Summit from Sunday, 15 June until Tuesday, 17 June. The annual summit brings together leaders from each of the member states — Canada, France, Germany, Italy, Japan, the UK, and the US, with the EU as a guest — to discuss their common plans. This year’s meeting — which marks the summit’s 50th anniversary after France hosted the first-ever G7 meeting in 1975 — comes as the US continues to roll back its green credentials at home and abroad, and it is unclear whether climate change will be on the meeting’s agenda as usual.

Tunisia will host the Mediterranean Water, Irrigation and Photovoltaic Exhibition from Tuesday, 17 June until Friday, 20 June in Tunis. The event aims to showcase water, irrigation, and solar energy techniques, technologies, and services that could help farmers make optimal choices on equipment while promoting the efficient use of irrigation water.

Check out our full calendar on the web for a comprehensive listing of upcoming news events, national holidays and news triggers.