XRP News Today: XRP Slips Below $2.0 As Tariffs And Bill Delays Bite

American battery companies are shifting supply chains away from China to South Korea to comply with U.S. restrictions aimed at strengthening domestic development of drones and advanced electric aircraft.

SES AI and Amprius Technologies have both announced they will expand battery cell manufacturing capacity in South Korea, as the U.S. National Defense Authorization Act (NDAA) will bar the Department of Defense from buying made-in-China batteries beginning in October 2027.

Boston-headquartered SES AI has converted electric vehicle battery production lines in its Chungju factory to make battery cells for drones and electric vertical takeoff and landing (eVTOL) aircraft. Built in 2021 for EV batteries, the South Korean facility will now produce mostly drone products -- to the tune of 1 million battery cells annually -- and production could eventually be ramped up to 1 gigawatt hour (GWh), matching the company's capacity in China. One-tenth of Chungju's production will be dedicated to SES AI's evTOL vehicle customers, which include Hyundai.

SES AI founder Qichao Hu said that the pivot to South Korea is in response to a series of U.S. policies and investments aimed at developing a domestic drone industry.

"[Defense Secretary] Pete Hegseth unleashed this really fast growth in the industry," Hu said. "So I think it's an opportunity."

U.S. President Donald Trump signed an executive order last July ordering federal agencies to fast track approvals for American drone manufactures and protect the U.S. drone supply chain from "foreign influence."

Producing a battery pouch cell in South Korea is two times more expensive than making it in its factory in China, Hu said. But, as demand grows for NDAA-compliant batteries, products from the South Korean factory will make up nearly half of its sales this year, he added. SES AI's Chinese factory and its contract manufacturers will continue to serve customers that are not U.S. defense contractors.

American drone executives have raised concerns over the industry's supply chain after Beijing barred Skydio and BRINC Drones from procuring from Chinese companies last April. After being added to the Chinese Commerce Ministry's "unreliable entity" list, Skydio began to ration batteries as it sought alternative suppliers.

America's drone industry is still in its early days and it will take time and capital for it to be able to meet the needs of the U.S. military.

In comparison, China's DJI is the world's largest drone manufacturer and accounts for about 70% of all commercial drones sold globally for hobby and industrial use.

Amprius Technologies, meanwhile, announced in December that it will also increase production in South Korea as its sales in the U.S. grew in the third quarter last year.

The addition of three South Korean companies to its list of contract manufacturers means it now works with as many such producers in that country as it does in China.

Tom Stepien, CEO of Amprius Technologies, said that while its South Korea factory serves only customers working with the U.S. government, there is growing interest from other clients in considering non-Chinese made batteries.

"I expect that drum beat for NDAA compliance will increase for sure," he said.

While the company has a pilot production line located at its headquarters in Fremont, California, producing batteries and NDAA-compliant components, it has no plans to revive construction of a Colorado factory that ceased last year as the market outlook for electric vehicles deteriorated.

Source: Asia_Nikkei

Philippine President Ferdinand Marcos Jr. announced early Monday morning the country's most significant natural gas discovery "in over a decade," trumpeting the find as a key step in the nation's efforts to reduce its dependence on imported energy.

The reservoir, called Malamapaya East-1, is located some five kilometers east of the Malampaya gas field, located off the west coast of Palawan Island . The area is thought to contain 98 billion cubic feet of gas, the president said in a Facebook video.

The Philippines' energy costs are among the highest in the region, a hurdle for many businesses and investors since the country depends on imported fuel to keep the economy churning.

"This helps Malampaya's contribution and strengthens our domestic gas supply for many years to come," Marcos said in his video. The Malampaya gas field currently supplies 20% of the energy needs of Luzon, the Philippines' largest island.

Marcos signed a law in January 2025 to develop the downstream natural gas industry and support the country's efforts to increase the share of the transition fuel in its energy mix.

"This is equivalent to almost 14 billion kilowatt-hours of power in a year," Marcos added. "This means it can supply electricity to more than 5.7 million households, 9,500 buildings or almost 200,000 schools for one year."

The Philippine leader said initial testing showed that the exploration well flowed at 60 million cu. feet per day, with a potential to "produce even more."

This is comparable to the natural gas produced by the original Malampaya wells, according to Marcos.

The field, however, is still small compared to those in neighboring Malaysia and Indonesia, which have resources totaling trillions of cubic feet.

Drilling in the area started in mid-2025 by a consortium led by Prime Energy, a company backed by billionaire tycoon Enrique Razon Jr. The government said this was the first milestone in a phase 4 drilling campaign, noting that there are other exploration efforts in the area.

Source: Asia_Nikkei

Japanese government bonds sold off sharply as reports of a potential cut to the food tax stoked concerns about the nation's fiscal health ahead of a snap election expected next month.

The prospect of increased government spending led investors to demand higher returns, pushing bond yields to multi-decade highs.

A Sharp Rise in JGB Yields

The sell-off was most pronounced in long-term debt. The yield on Japan's 30-year government bond climbed 10 basis points to 3.58%, its highest level since the bond was first issued.

Meanwhile, yields on 10-year and 20-year notes also surged, reaching their highest points since 1999. Investors are now closely watching a 20-year bond auction scheduled for Tuesday for further signals on market sentiment.

Election Politics Drive Market Anxiety

The market's reaction was triggered by a Kyodo report stating that Japan's ruling bloc is considering a tax plan that includes suspending the sales tax, with a possible implementation date as early as January.

Fiscal discipline concerns are not limited to one party. The Centrist Reform Alliance, a new coalition of opposition parties, is also proposing a sales tax cut, although it has stated it aims to do so without issuing additional deficit-financing bonds.

Eiichiro Miura, senior general investment manager at Nissay Asset Management, summarized the market's core concern. "Both ruling and opposition parties are advocating for consumption tax cuts, increasing the risk of fiscal expansion regardless of the outcome of the election," he said.

Prime Minister Sanae Takaichi is expected to detail her plans at a press conference on Monday for an election that could happen as soon as February 8.

Broader Market Impact

While bond markets reacted negatively, the news had a different effect on equities. Some food-related stocks in Tokyo saw a lift on Monday morning, driven by expectations that a tax cut would boost consumption.

Separately, the Japanese yen edged higher as traders sought safe-haven assets following threats from U.S. President Donald Trump to impose new tariffs on certain European nations.

Hedge funds closed their bullish euro positions just days before US President Donald Trump threatened to impose new tariffs on European nations as he ramped up efforts to take over Greenland.

Leveraged funds flipped to a small net short on the common currency during the week ended Jan. 13, data from the Commodity Futures Trading Commission show. It was the first bearish shift since late November, and the move may add to the downward pressure on the euro after Trump proposed the levies unless there's a deal for the US to acquire Greenland.

"Hedge funds will be happy to be sitting net short and maybe looking to add to it if the 'spat' looks like it could turn into a full-on trade war," said Nick Twidale, chief analyst at AT Global Markets.

The euro swung between gains and losses on Monday morning in Asia, underscoring the uncertainties that lie ahead as investors contemplated the specter of a renewed trade war that could undermine European growth. Morgan Stanley had warned that traders are underpricing the risk of extreme scenarios potentially causing ruptures in major currencies, especially in the euro.

The common currency dipped as much as 0.2% before climbing 0.3% to $1.1628. The Bloomberg Dollar Spot Index declined 0.2%.

"Euro-dollar can test support at 1.1499 this week" on the tensions, Commonwealth Bank of Australia strategists including Joseph Capurso and Carol Kong wrote in a note. "The trade spat, centered on who controls Greenland, is likely to escalate before it de-escalates."

Source: Bloomberg Europe

Jane Street Group LLC's unit in India reported an almost six-fold jump in trading gains for the financial year ended March before its operations were brought to an abrupt halt by the regulator on allegations of market manipulation last year.

Net trading gains after accounting for transaction charges stood at 47 billion rupees ($517 million) for the year at JSI Investment Pvt. — a unit of Jane Street Group — compared with 7.9 billion rupees the previous year, filings with the Indian government showed. After-tax profit was 28.4 billion rupees, up 494% from a year ago.

The financial results cast new light on the scale of Jane Street's trading operations in India, where the company is currently facing investigations by the stock market regulator. The confrontation between the Securities and Exchange Board of India and one of Wall Street's most successful trading firms has drawn global attention, prompting heightened scrutiny of such outfits in other markets, including China.

Other trading firms including Hudson River Trading LLC and Optiver Holding BV also posted strong profit growth in India despite regulatory curbs, showcasing their agility in tapping opportunities across the country's equity market. Following the probes, many companies shifted away from high-frequency options strategies.

New York-based Jane Street was accused by SEBI of manipulating the local stock market in a July 3 interim order. The regulator added that the company made more than $4 billion in profits by trading stocks, futures and options in little over two years through March.

Jane Street previously said it disagrees with the findings of SEBI's interim order. It has filed an appeal with a Mumbai court seeking information it said is crucial to its defense. The trial is set for Monday.

Representatives of Jane Street last year met with the Treasury Department, Commerce Department and the Executive Office of the President to discuss Jane Street's operations in India, according to lobbying disclosures and people familiar with the matter, who asked not to be named discussing non-public information.

In the meantime, the Indian regulator is examining additional trading strategies used by Jane Street, including allegations that the firm manipulated the country's main equity index to profit from an options strategy commonly known as a "short straddle," people familiar with the investigation have said.

A unit of JSI Investment, which was also named in the SEBI order, reported a net trading loss of 1.5 billion rupees for the year ending March, a separate filing with the government showed. JSI2 Investment saw a capital injection of 8.6 billion rupees from its parent during the year, and had outstanding borrowing of 32 billion rupees in March.

The Indian units said that they are not engaged in any trading of securities and derivatives at the time of submitting their financials in December and will continue to evaluate the resumption of activities, the filings showed.

Source: Bloomberg Europe

Singapore's real estate stocks are set for their best start in 14 years, buoyed by investor bets that upcoming earnings reports will unveil generous capital return plans.

The FTSE ST All-Share Real Estate Investment and Services Index — which tracks nine listed property development firms — has surged nearly 14% this year, marking the strongest January performance since 2012, according to Bloomberg-compiled data. The rally has outpaced a broader Bloomberg index of Asian real estate stocks by around 10 percentage points over the same period.

Singapore's real estate sector has gained momentum, driven by a surge in private home sales and growing investor confidence amid easing borrowing costs. Optimism is also fueled by expectations that funds tied to Singapore's market reform initiative will flow into mid- and small-cap names, further boosting the sector.

"Real estate stocks in Singapore have garnered increasing interest over the past year, buoyed by a more favorable interest rate environment and resilient industry outlook," Oversea-Chinese Banking Corp. analysts, including Andy Wong, wrote in a report. Several companies in the sector "have been very active in capital recycling and reconstituting their portfolios, while also carrying out share buybacks."

Source: Bloomberg Europe