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NEW YORK — The world's top automakers — motivated either by governmental regulations or pure profit — have made a sharp turn away from fossil fuel vehicles. But there are plenty of obstacles on the road to a future full of eco-friendly cars.

Will there be enough lithium and other vital raw materials to make electric car batteries? Will there be sufficient charging stations? How will carmakers ensure that their offerings are affordable for the average driver?

Following the success of Elon Musk's Tesla, built solely on electric vehicles, most of the biggest names in the sector are planning to invest tens of billions of dollars to reorient their businesses towards clean energy.

Stellantis, the world's fifth-largest automaker, plans to sell only electric cars in Europe by 2030. Toyota expects to release about 30 electric models in that same timeframe. General Motors (GM) hopes to stop making cars with combustion engines by 2035.

These corporate ambitions have dovetailed with efforts by national and local governments to go green.

On Thursday, California announced that from 2035, all new cars sold in the Golden State — the most populous in America — must be zero-emission.

The European Union also has taken steps to ban the sale of gas- or diesel-fueled cars — and even hybrids — by 2035, while China wants at least half of all new cars to be electric, plug-in hybrid or hydrogen-powered by that time.

Built-in demand 

Automakers are on notice that "they are going to have to figure out how to put cars on the market," said Jessica Caldwell, executive director of insights for the automotive research firm Edmunds.

"We used to say that the challenges for electric vehicles would be consumer acceptance and price," she added.

With car buyers increasingly attuned to the environment and the woes of climate change, selling the concept of electric vehicles is no longer an issue.

In the United States, General Motors says it has more than 150,000 pre-orders for the electric version of its Silverado pickup truck, which will be available next year. The wait time for a Tesla these days is several months.

For Caldwell, the bigger issue now is whether automakers "can get the raw materials" they need to make the cars.

Scarce raw materials 

Karl Brauer, an executive analyst for used car search engine iseecars.com, agrees, saying that no matter what government incentives are offered for would-be buyers of electric vehicles, the rare elements needed may simply be unavailable.

"Right now, we have a lack of palladium, and nickel, and lithium. Everything you need to build an electric car is harder to get than it was six or 12 months ago," he said.

The supply issue is linked partly to Russia's invasion of Ukraine six months ago.

But Brauer said that "nobody, a year ago, would have predicted the kind of price escalation for those raw materials, and the difficulty of getting them".

The situation "can change drastically" at any given moment, he added.

Automakers are determined to leave as little as possible to chance.

They are building their own factories to produce car batteries, setting up joint ventures with specialised parts makers and sealing partnerships with mining firms.

German auto manufacturers Volkswagen and Mercedes-Benz on Monday signed memorandums of understanding with the Canadian government to ensure their access to rare metals such as lithium, nickel and cobalt.

But, as with oil, the market for these raw materials is a global one, and the normal rules of economics apply, noted Brauer.

"If there is a certain amount of global demand for raw materials, if there is a certain amount of global supply for them, someone will always pay the price," he said.

For Brauer, shifting production lines to accommodate electric vehicle components is, by comparison, quite easy, as the automakers "have control over that".

Help, but with conditions 

Local regulations could make things more complicated for automakers.

In the United States, new legislation championed by the administration of President Joe Biden allots up to $7,500 in tax credits to every American who buys an electric vehicle.

But there are conditions: for example, final assembly of those cars must take place within US borders.

The Alliance for Automotive Innovation, a US lobbying group, estimates that about 70 per cent of the 72 electric, plug-in hybrid or hydrogen-powered cars now on the market would not qualify for the tax credit.

For Garrett Nelson, an analyst for the CFRA research firm, the new law will clearly give Tesla, GM and Ford an advantage in the United States over their European and Asian rivals.

Following California's announcement, the Alliance for Automotive Innovation said it would be "extremely challenging" to meet the sales requirements due to external factors such as inflation, supply chains and charging infrastructure.

The ongoing semiconductor shortage will also play a role, it said in a statement.

"These are complex, intertwined and global issues well beyond the control of authorities in California or the auto industry," it warned.

CAIRO — An economic crisis spurred by the Ukraine war is casting darkness upon Egypt's streets, as the government dims lights to free up energy for export and bolster hard currency reserves.

Russia's invasion of Ukraine had an immediate impact on Egypt, the world's biggest wheat importer which has relied on the ex-Soviet states for over 80 per cent of its grain.

Egypt, which turned to the International Monetary Fund (IMF) for a loan after the war erupted, is pumping more natural gas abroad to increase its foreign currency reserves — a move that has come in for criticism.

While the government announced electricity rationing this month, signs of wastage elicit scorn.

"I see streetlights still working during daylight hours... and we're suffering from high electricity bills," said a disgruntled Cairo resident in his 30s who spoke on condition of anonymity.

The country's vital tourism sector has also been hit by the Ukraine conflict, cutting the flow of holidaymakers to a country still hurting from the 2011 revolution and COVID-19 pandemic.

Economic growth slowed to 3.2 per cent in the fourth quarter of 2021-22 against 7.7 per cent last year, although annual expansion was 6.6 per cent.

Despite the better-than-expected annual figure, the government said growth had tapered off in the wake of "global political and economic developments".

Egypt's monetary policy has been caught between a rock and a hard place since Russia invaded Ukraine in February.

Inflation hit a three-year high of 14.6 per cent in July after Egypt devalued the pound, pushing up the price of imports and depleting forex reserves by $7.8 billion since February to $33.1 billion in July.

Capital flight 

Egypt is negotiating an IMF loan to help mitigate fallout from the Ukraine war on the country, where 30 per cent of the 103 million population lives in poverty.

But the talks have stretched out for six months, raising eyebrows among analysts.

"The fact that talks with the IMF have dragged is probably a sign that some officials are reluctant to follow through on the Fund's demands and would prefer to rely on support from the oil-flush Gulf economies," London's Capital Economics said.

"We need to speed up negotiations with the IMF," said Hany Genena, an economist and lecturer at American University in Cairo.

"Since last week, there has been a severe shortage of dollars provided to importers by banks in various sectors."

Cairo had previously secured a $12 billion IMF loan in 2016 that required it to slash subsidies and devalue the pound.

In 2020, Egypt received two more loans, including $5.4 billion tied to reforms and $2.8 billion to tackle COVID.

Genena said Egypt needed to undertake more "drastic" reforms to restore its forex reserves, including a full float of the pound.

Last week, as the currency plunged to a near all-time low of 19.1 to the dollar, central bank Governor Tarek Amer resigned.

It was unclear why Amer quit, but Egyptian media suggested it was because of his reluctance to implement a full float.

James Swanston of Capital Economics said the currency needed to depreciate to 25 pounds to the dollar by the end of 2024 "to avoid external imbalances rebuilding".

But $14.6 billion worth of investments has flown out of the country in the first quarter of 2022, reflecting concerns over the Ukraine war.

Capital Economics said, however, that investment pledges worth $22 billion from Gulf countries will "go some way to alleviating external financing concerns".

Gas lifeline 

Among Egypt's slate of measures to preserve foreign currency was a decision to let the pound slip 17 per cent against the greenback in March.

The government said electricity rationing seeks to achieve "an additional surplus — at an average of 15 per cent of the natural gas pumped to power stations — that can be exported and bring in hard currency".

Among the measures to conserve energy were "reducing lighting in streets and public squares".

Since 2018, Egypt has been ramping up its natural gas capacity, now setting its sights on an energy-hungry Europe, which is eager to decrease reliance on Russian gas.

The government announced this month "exceptional aid to nine million families at a cost of $52 million per month", but for many, the soaring cost of living had already done enough damage. 

Mahmoud Al Saeedy, a fruit salesman in Cairo, has depleted his savings trying to keep up with rising prices.

"I return to my village in the south every 40 or 50 days, with only 600 pounds [$31.3] to give to my family," he said.

"What can they do with it?"

TUNIS — Tunisia and Japan launched a pan-African investment conference on Saturday, seeking to counter the influence of "rival" China whose economic imprint on the continent has steadily grown.

The conference takes place amid a "complex" international environment caused by the coronavirus pandemic and the war in Ukraine, the Japanese foreign ministry has said.

Some 30 heads of state and government are attending the event in the capital Tunis, at a time when the import-dependent North African nation is grappling with a deepening economic malaise.

In his opening speech, Tunisian President Kais Saied urged delegates to "search together for ways for African peoples to achieve the hopes and dreams of the first generation after independence".

He praised Japan's success in "achieving development at the same time as preserve its culture and social traditions".

"The world cannot continue as it was. With all its wealth and assets, Africa cannot watch its people live through poverty," he said.

The eighth Tokyo International Conference on African Development (TICAD8) also comes as Beijing cements its influence on the continent with its "Belt and Road" infrastructure initiative.

It is the first TICAD — held every three years either in Japan or an African country — since the pandemic began.

Prime Minister Fumio Kishida will be attending remotely after testing positive for COVID-19.

The Japanese delegation is being led by Foreign Minister Yoshimasa Hayashi, with about 5,000 participants set to attend.

Morocco withdrew from the event and recalled its ambassador from Tunisia for consultations, after Saied hosted the head of Western Sahara's Polisario independence movement.

The conference will focus on three pillars: Economy, society, and peace and stability.

A slick promotional video said the conference aims to promote "African development led by African people".

But no journalists from African news outlets had been given access to delegates ahead of the event, except Tunisian state media, alongside Japanese journalists.

Japanese economic paper Nikkei reported that aid to Africa could increase by 40 per cent over the next three years, in response to other powers that have boosted their presence on the continent.

Beware of 

'excessive' debt 

At the last TICAD in 2019, former premier Shinzo Abe — who was assassinated at a campaign event last month — warned investors in Africa they must beware of burdening countries with "excessive" debt, an apparent swipe at China.

Tunisian authorities hope their struggling economy will benefit from hosting the conference by attracting Japanese investment, particularly in the health, automotive and renewable energy sectors.

The conference has sparked anger among Tunisians as major road closures threatened traffic disruptions in the capital.

Authorities also drew widespread mockery after detaining Japanese satellite engineers — TICAD delegates — at Tunis airport for hours because they were in possession of a model satellite that they intend to use to showcase technology.

Authorities have spruced up parts of the city likely to be seen by delegates and dug in roadside plants, but these efforts have also drawn the ire of social media users.

"I feel deeply insulted by the clean-up of Tunis for the TICAD," one Tunisian wrote on Twitter, arguing that "those we pay to make our lives easier" should instead focus on making the capital livable for citizens all year round.

DOHA — Qatar said on Wednesday it would invest $3 billion in Pakistan's economy.

Pakistan has been scrambling for finance in recent months, and the International Monetary Fund (IMF) is due to meet next Monday to discuss reviving a suspended $6 billion loan programme.

The United Arab Emirates this month said it would invest $1 billion in Pakistan and, according to reports, Saudi Arabia is considering extending an emergency $2 billion loan made last year.

The latest boost came in talks between Qatar's Emir Sheikh Tamim Bin Hamad Al Thani and Pakistan's Prime Minister Shahbaz Sharif.

The emir "stressed the importance of the brotherly and strategic relations between the two countries" and the need to bolster their economic partnership, an official Qatari statement said.

"In this regard, the Qatar Investment Authority announced its intention to invest $3 billion in various commercial and investment sectors in the Islamic Republic of Pakistan," it added.

The statement said the two leaders also discussed cooperation in "defence" and "sports".

But it did not confirm reports that Pakistan would send troops to Qatar for security during the football World Cup that starts November 20.

Last week, the Pakistan government said it had approved a deal with Qatar on the "modalities for deployment of troops for security assistance" during the World Cup.

Assistance from Gulf nations and a $2.5 billion loan from China has helped Pakistan stave off the worst of an economic crisis that has seen annual inflation rise above 20 per cent.

A $6 billion IMF bailout package signed by former prime minister Imran Khan in 2019 has never been fully implemented, because the government failed to carry out promised cuts to subsidies and to improve revenue collection.

But the economy has shown recent signs of life. The rupee has strengthened and the stock market has made gains in the past two weeks.

Analysts say that Pakistan's problems stem from decades of poor economic management by successive governments and military rulers who have failed to tackle corruption and widespread tax avoidance.

The IMF executive board is however expected to renew the crucial loan deal next week, analysts said.

LONDON — The euro dived to a new two-decade low against the dollar and European stock markets fell on Tuesday as weak economic data raised fears of recession amid an energy crunch.

The single currency tumbled to $0.9901 but later clawed back losses to return close to parity with the dollar in afternoon trading.

The dollar has strengthened against other currencies ahead of a speech later this week by US Federal Reserve (Fed) chief Jerome Powell, as markets speculate that the central bank will further tighten its monetary policy.

Higher interest rates boost the greenback as they make dollar-denominated debt more attractive to investors.

But the euro is also weighed down by a gloomy outlook for the eurozone economy as Russia's war in Ukraine has sent energy prices soaring.

The shared unit had already plunged below parity on Monday on recession fears to plumb the lowest levels since 2002, when it came into physical circulation.

In the latest blow, S&P Global's closely watched monthly composite purchasing managers' index (PMI) showed that eurozone economic activity fell for the second month in a row in August.

'Overarching threat' 

"Eurozone PMIs... confirm concerns of an impending recession in Europe on the back of high inflation and energy crunch, as they signal declining activity for two months in a row," warned Citi analyst Luis Costa.

"The energy crunch remains an overarching threat to economic stability in Europe," he added.

Equities in the region wavered amid stubborn worries that the US Federal Reserve will carry on ramping up interest rates to fight inflation.

Rising US interest rates also push the dollar higher against other currencies.

On Tuesday, natural gas prices fell, although they remain elevated on fears of a halt to Russia's gas deliveries to Europe.

The Dutch TTF Gas Futures contract stood at 263.71 euros per megawatt hour, down from Monday.

Gas had spiked to record peaks in March after key producer Russia launched its invasion of neighbouring Ukraine.

That has sparked surging domestic energy bills, fuelling decades-high inflation that has prompted tighter monetary policy around the world.

'More effective than Kalashnikovs' 

"As it has become painfully obvious, natural gas is a much more effective weapon in the hands of Russian politicians than the Kalashnikov in the hands of their soldiers," noted PVM analyst Tamas Varga.

This has hit the single currency hard because the bloc relies heavily on imported Russian gas, said Societe Generale analyst Kit Juckes. 

Fears increased after Russia's Gazprom said Friday the Nord Stream pipeline would be closed for maintenance at the end of the month, cutting Europe's crucial gas deliveries.

"The euro's problem is... the threat from continued squeezing of gas supplies and the cost of replacing Russian gas," Juckes said.

Asian markets fell again Tuesday as traders grew increasingly jittery over rising US rates.

A day after closing in the red, Wall Street indices were mixed at the open on Tuesday, with the Dow Jones Industrial Average flat while the S&P 500 and tech-rich Nasdaq were up. 

With the Jackson Hole symposium of central bankers and finance chiefs taking place this week, the focus is on what Fed chief Jerome Powell says about its plans to tackle prices, with many fearing officials could send the economy into recession.

Oil prices — which have fallen for weeks as recession worries hit demand expectations — rebounded after Saudi Arabia suggested OPEC and other major producers could cut output citing "volatility" in crude markets.

MADRID — Irish low-cost airline Ryanair cancelled six flights in Spain on Monday as cabin crew began a new four-day strike over pay and working conditions, union officials said.

Coming at the peak summer tourist season, the new Ryanair stoppages only add problems to a sector struggling with rolling strikes staff at budget rival EasyJet which will resume this weekend.

Four of the Ryanair cancellations affected flights flying into or out of Barcelona, while the other two involved arrivals and departures from Palma de Mallorca, said one of the two unions which called the strike, the Union Sindical Obrera (USO).

Another 28 flights were delayed as of 9:00 am (07:00 GMT), it added in a statement.

Ryanair cabin crew in Spain staged a series of rolling strikes in June and July.

The USO and SITCPLA unions then called a third wave of 24-hour work stoppages from August 8 until January 7, 2023, arguing that Ryanair had refused "to engage in any dialogue".

The strikes will take place every week, from Monday to Thursday.

The unions say Ryanair is the only international company in Spain not to have a collective agreement.

The carrier, for its part, has said that the strikes have had little impact on its activity in Spain, where it operates more than 650 routes.

EasyJet pilots in Spain have since August 12 staged weekly three-day strikes to call for the reinstatement of conditions they enjoyed before the pandemic.

Their next work stoppage will start on Saturday.

The strike began just two weeks after the airline's cabin crew went on strike, resulting in a deal.

Meanwhile, cabin crew at Iberia Express, the low-cost arm of Spain's Iberia national carrier, are also expected to stage a 10-day strike from August 28 to September 6, the USO union has said.