Daily Digest for

The U.S. Department of Defense signed a 10-year deal with MP Materials to support domestic rare earth element production.

• Main action: The U.S. Department of Defense entered a 10-year deal with MP Materials (the only U.S. rare earth mine) as a policy intervention and direct investment to provide price stability for domestic rare earth production; MP Materials primarily produces neodymium-praseodymium oxide (NdPr) used in permanent magnets.
• Background/details: The U.S. currently imports up to 82 percent of rare earth elements (primarily from China); opening a new mine can take 17 or more years due to engineering, permitting, financing, and feasibility study requirements; past U.S. support included loan guarantees, R&D, and feasibility studies.

Google announced multiple AI advancements and initiatives in July, focusing on expanding access, enhancing creativity, and applying AI to diverse fields.

• $3 billion deal with Brookfield to modernize Pennsylvania hydropower facilities, plus over $25 billion investment in data centers and AI infrastructure in the PJM region, alongside new AI skills training programs.
• Launch of AI tools like AlphaEarth Foundations for detailed Earth mapping, Aeneas for interpreting ancient texts, and AI applications in shopping, education, video generation, and cybersecurity, including the first use of an AI agent to stop a live cybersecurity vulnerability.

Schneider Electric announces an AI-powered Clean-in-Place (CIP) optimization approach delivered via software that integrates with existing CIP equipment.

• Confirmed actions: Nestlé Waters has deployed the CIP software and achieved 50% CO2 emissions reduction in year one (for specific lines), 20% reduction in CIP time (for specific lines), and significantly reduced traceability time; Schneider Electric reports implementation of “Golden CIP” standards for a global dairy site in Vietnam and states potential savings of $10,000+ per CIP line via water, chemical, and energy optimization.
• Product details & metrics: The approach uses AI to monitor Temperature, Turbulence, Turbidity, Titration, and Time, claims shortened cleaning cycles (example: 30 minutes/day saved → ~2 extra weeks production per line per year), and emphasizes software integration with existing hardware rather than requiring new equipment. These are presented as confirmed deployments and observed results rather than speculative outcomes.

The World Meteorological Organization (WMO) released a report highlighting record-breaking extreme heat worldwide and its severe impacts.

• July 2025 was the third-warmest July on record, with heatwaves causing approximately 489,000 annual heat-related deaths globally between 2000 and 2019, heavily affecting Europe and Asia.
• WMO is advancing heat early warning systems and collaborating with UN agencies under the Secretary-General’s Call to Action on Extreme Heat, aiming to limit global warming to 1.5°C and save nearly 100,000 lives annually by scaling heat-health warning systems in 57 countries.

Cabinet announced multiple decisions including approval to publish South Africa’s second Nationally Determined Contribution (NDC) for consultation and accession to the Afreximbank Establishment Agreement.

• Climate and water infrastructure actions (confirmed): Cabinet approved publication of the second NDC proposing a GHG emissions target range of 320 – 380 mt CO2 eq in 2035; approved a government-wide approach led by the dtic on CBAM engagement. The Giyani Water Services Project comprises 325 km of bulk pipelines to supply 55 villages, is 90.23% complete, with pressure testing/commissioning remaining, expected completion by September 2025; prior works (Nandoni-Nsami pipeline and WTWs refurbishment) were completed in Dec 2023/June 2024 and the completed interventions cost an estimated R6 billion funded by DWS.

• Trade and economic measures (confirmed/planned): Cabinet noted 30% tariffs against South Africa expected from 7 August 2025 (to be reviewed once a Framework Deal with the USA is reached); President Ramaphosa contacted President Trump to bolster negotiations. Government actions include establishing an Export Support Desk, a Localisation Support Fund (LSF), an Export and Competitiveness Support Programme (ECSP) with working-capital and plant/equipment facilities, and publishing a draft Block Exemption for Exporters by end of the week. Nigeria committed to finalise commercial terms for crude oil allocations to South Africa by end of August 2025.

ECB working paper finds EU SFDR and Taxonomy (adopted 2019–2020, SFDR effective Q1/2021) caused EU banks to reduce holdings in battery‑raw‑material mining firms—especially low‑ESG firms—but share prices and firms’ cost of capital remained broadly unchanged due to ownership substitution.