White House

 

Biden Accuses Oil Companies Of ‘War Profiteering’ And Threatens Windfall Tax. According to The New York Times, “President Biden threatened on Monday to seek a new windfall profits tax on major oil and gas companies unless they ramp up production to curb the price of gasoline at the pump, an escalation of his battle with the energy industry just a week before the midterm elections. The president lashed out against the giant firms as several of them reported the latest surge in profits, which he called an ‘outrageous’ bonanza stemming from Russia’s war on Ukraine. He warned them to use the money to expand oil supplies or return it to consumers in the form of price reductions. ‘If they don’t, they’re going to pay a higher tax on their excess profits and face other restrictions,’ Mr. Biden told reporters at the White House. ‘My team will work with Congress to look at these options that are available to us and others. It’s time for these companies to stop war profiteering, meet their responsibilities to this country, give the American people a break and still do very well.’ The president’s embrace of new taxes on the energy industry heartened liberals in his party who have been urging him to take action for months. But it was more of a way to pressure the oil firms than a realistic policy prescription for the short term given that Congress is not even in session and would be even less likely to approve such a measure if Republicans capture one or both houses in next week’s election.” [The New York Times, 10/31/22 (=)]

 

Biden Eyes New Oil Taxes, Attacks 'Windfall Of War'. According to E&E News, “President Joe Biden floated the possibility of new taxes on oil companies yesterday, accusing them of war profiteering as consumers struggle nationwide with high gasoline prices. Speaking at the White House while standing next to Energy Secretary Jennifer Granholm and Treasury Secretary Janet Yellen, Biden called on energy companies to boost domestic production and refining capacity, adding, ‘If they don’t, they’re going to pay a higher tax on their excess profits and face other restrictions.’ The president said he will work with Congress to ‘look at these options that are available to us and others.’ ‘It is time for these companies to stop war profiteering, meet their responsibilities to this country, give the American people a break and still do very well,’ Biden said. ‘The American people are going to judge who is standing with them, and who is only looking out for their own bottom line.’ The president directly called out Exxon Mobil Corp. and Shell PLC for the surging profits they reported in the third quarter. Biden said that instead of increasing production or ‘giving American consumers a break,’ oil and gas firms are returning excess profits to shareholders or stock buybacks. ‘Give me a break. ... Enough is enough,’ Biden said, who described himself as a capitalist and said he has no issue with corporations turning a fair profit. ‘Record profits today are not because they’re doing something new or innovative,’ Biden said. ‘Their profits are a windfall of war, the windfall from the brutal conflict that’s ravaging Ukraine and hurting tens of millions of people around the globe.’” [E&E News, 11/1/22 (=)]

 

Biden Bashes Oil Sector For ‘War Profiteering,’ Warns Of Windfall Tax On Profits. According to Politico, “President Joe Biden accused oil companies of ‘war profiteering’ Monday after they posted record profits — and urged Congress to impose a windfall tax on the industry if it fails to lower consumers’ costs. Biden’s comments were his sharpest yet against the industry that has seen its earnings soar as oil and gasoline prices surged this year, boosted by tight supplies as the economy emerged from the pandemic and the disruption in Russian oil supplies after it’s invasion of Ukraine. But his call is mostly likely a futile one, since Congress won’t meet before the election next week that’s expected to deliver control of at least one chamber of Congress to Republicans, and the idea is unlikely to draw strong enough political support even among his own party. ‘Their profits are a windfall of war, the windfall from the brutal conflict that’s ravaging Ukraine and hurting tens of millions of people around the globe,’ Biden said from the White House. He reiterated his call for the oil industry to use the surging profits to increase its oil production and refining capacity, and said it was time they looked beyond ‘the narrow self-interest’ of their executives and shareholders. ‘If they don’t they are going to pay a higher tax on their excess profits and face other restrictions,’ he said. ‘It’s time for these companies to stop war profiteering, meet their responsibility to this country, give the American people a break and still do very well.’ Oil majors Exxon Mobil, Chevron and Shell Oil alone reported quarterly profits last week totaling about $40 billion.” [Politico, 10/31/22 (=)]

 

Biden Threatens Oil Companies With ‘Higher Tax’ If They Don’t Increase Production. According to The Hill, “President Biden on Monday warned that oil companies would face a ‘higher tax’ on their excess profits if they don’t reinvest in increasing production to bring down prices at the pump. ‘They have a responsibility to act in the interest of their consumers, their community and their country, to invest in America by increasing production and refining capacity,’ Biden said of the companies during a speech on Monday afternoon. ‘If they don’t, they’re going to pay a higher tax on their excess profits and face other restrictions,’ he added in the remarks from the White House just more than a week before the midterm elections. Biden can’t unilaterally impose a tax on companies; he would need a new law to pass Congress. He pledged to work with the legislature to look at his options. His comments come after ExxonMobil, Chevron and Shell reported high third-quarter earnings. The president name-checked both Exxon and Shell in his speech.” [The Hill, 10/31/22 (=)]

 

Making Sense Of Biden's Oil Threat. According to Axios, “President Biden is escalating criticism of the oil industry in the closing days of a midterm election season that could diminish his power, Ben writes. Catch up fast: In remarks from the White House yesterday, he called for new taxes on oil producers if they don’t lower fuel prices and boost output. Biden also warned of ‘other restrictions.’ Why it matters: It underscores the importance of the economy and gas prices in the elections, and the political fallout from massive industry profits, capped by Exxon’s record $19.7 billion Q3 haul. What’s new: This morning BP beat estimates with an $8.2 billion Q3 profit, its second-highest ever, and announced another $2.5 billion in share buybacks. Threat level: Biden’s comments ‘must be contextualized within Biden’s (and Dem’s) larger focus on gasoline prices as a proxy for inflation and economic stress into the midterm election,’ Cowen Research analyst John Miller said in a note. A CBS News poll shows that far more voters think gas prices will rise if Democrats control Congress. (Quick reminder: Federal officials have rather limited sway over oil and hence pump prices.)” [Axios, 11/1/22 (+)]

 

 

Congress

 

GOP Hill Control Could Spark Budget Fights On Biden Climate Priorities. According to InsideEPA, “Observers cite as another possible complication for renewed GOP attacks on the Biden climate agenda the industry constituencies -- including those with a presence in Republican states -- that gained from enactment of the IRA. Those include renewables and carbon capture firms, as well as auto manufacturers eager to take advantage of the IRA’s revised electric vehicle (EV) tax credits but also concerned about restrictions in those credits. While IRA was passed on party-line votes. Maisano warns against assuming unified GOP resistance to the IRA’s clean energy provisions in 2023, arguing the bill would have received some Republican support if it was not brought up ‘three months before the election’ under partisan reconciliation procedures. Nevertheless, McKenna suggests Republican lawmakers who opposed the EV credits might resist future legislative or administrative tweaks associated with the incentive’s domestic content and assembly requirements, to the extent existing automaker criticism of the criteria gain traction in Congress or the Treasury Department. ‘Republicans are not going to want to fix it. They are going to say, ‘[Democrats] made this bed, good luck to you.’ He also cites a political dynamic where many GOP lawmakers who opposed IRA are not going to want to be seen as backing off that stance. The environmentalist separately expresses concern that GOP lawmakers will make an initial ‘go for broke’ push to scuttle items seen as Biden administration or Democratic priorities, raising the prospect of clashes between firebrand members and more senior appropriators.” [InsideEPA, 10/31/22 (=)]

 

 

Manufacturers, Fleets, & OEMs

 

Ford Motor Co.

 

New Tax Credit A "Game Changer" For Ford's Commercial EVs: CEO . According to Inside EVs, “Ford CEO Jim Farley believes the new federal tax credits for electric vehicles created by the Inflation Reduction Act should have a ‘wide range of positive impacts’ for the automaker, especially for its commercial vehicle division. During the company’s third-quarter earnings call last week, Farley said Ford plans to take advantage of credits related to battery production, manufacturing and retail vehicle sales, noting that the Ford Pro commercial vehicle business will see an especially important benefit. That’s because the Inflation Reduction Act will add a tax credit of up to $7,500 for commercial EVs weighing less than 14,000 pounds (6,350 kilograms). It will be available to city governments and other fleet operators, with no restrictions on battery sourcing or manufacturing—as opposed to passenger EVs, which are subject to a series of conditions. Automotive News reports that Ford expects that 55 percent to 65 percent of its commercial customers will be able to claim that credit in 2023 on its F-150 Lightning Pro pickups and E-Transit vans. ‘I think this will help our profitability quite a bit next year. Having almost 65 percent of our customers qualify, including local municipalities? It’s a game changer for our demand.’” [Inside EVs, 10/31/22 (=)]

 

Ford Pushes Back Deadline For Dealers To Opt In To EV Sales Program. According to Inside EVs, “Ford has decided to give its dealers an extra month to decide whether they will opt in to the program to sell electric vehicles, which requires investments of up to $1.2 million. The October 31 deadline has been pushed back to December 2 after some dealers asked for more time to make a decision, Ford spokesman Marty Gunsberg said. ‘We value our relationship with our dealers and have decided to provide additional time for dealers who have not yet decided or asked for more time,’ Gunsberg said in a statement to Automotive News. He declined to say how many dealers have already opted in, saying figures will be released by Ford after the enrollment period ends. The new deadline more closely aligns with the December 15 deadline Lincoln dealers face for a similar program requiring up to $900,000 in investment. Retailers who sell both brands will be required to invest in each program, which would set them back up to $2.1 million. Ford divides its EV dealership standards into two tiers with different investment levels in fast chargers and staff training. Dealers who choose the lower tier, which requires investments of up to $500,000, will be limited in the number of EVs they can sell.” [Inside EVs, 11/1/22 (=)]

 

BlueOval City FAQ: Questions (And Answers) About Ford And SK On Project In Tennessee. According to Memphis Commercial Appeal, “In the year since Ford Motor Co. and SK On announced their $5.6 billion BlueOval City project, company officials have faced numerous questions at various community meetings throughout West Tennessee. The Commercial Appeal has compiled an initial list of answers to frequently asked questions about BlueOval City by business leaders and local residents at these meetings. … How many jobs do Ford and SK On plan to fill at BlueOval City? Ford and SK On plan to employ 5,800 people at BlueOval City. Ford’s Electric Vehicle Center will employ about 3,300 people, and BlueOval SK will employ an estimated 2,500. … What plants will be at Ford and SK’s BlueOval City? There will be two manufacturing facilities on the BlueOval City manufacturing campus. The Electric Vehicle Center, a fully owned Ford site, at BlueOval City will produce Ford electric vehicles. The BlueOval SK battery plant, a 50/50 joint venture between Ford and SK, will produce advanced batteries for future Ford and Lincoln electric vehicles. Which Ford electric vehicle will be produced at BlueOval City? The Electric Vehicle Center at the Stanton plant will produce Ford’s revolutionary, all-new electric truck. While Ford has not shared specific details about the truck, the company confirmed it will be different from the F-150 Lightning. Ford also plans to expand its electric truck lineup in the coming years with BlueOval City playing a key role.” [Memphis Commercial Appeal, 11/1/22 (=)]

 

U.S. Automaker Ford Opens $260 Million Campus In Mexico. According to Reuters, “U.S. automaker Ford Motor Co (F.N) opened its new global technology and business center on the outskirts of Mexico’s capital on Monday after a $260 million investment. The new campus will host business operations, global transformation activities and the largest engineering center in Mexico, according to a video shared by the company’s Twitter account. The campus, located in the municipality of Naucalpan, is set to host 9,000 employees working in a hybrid manner, splitting time between home and the campus, Ford Motor said in a statement. Several foreign auto companies have expanded operations and announced new investments in Mexico this year. In October, foreign automakers Volkswagen (VOWG_p.DE) and Continental pledged major investments totaling nearly $1 billion, while earlier this year, Nissan (7201.T) announced an investment of $700 million over the next three years. The influx of money from the automotive industry could continue in Mexico, after Jeep maker Stellantis (STLA.MI) reported to be looking to invest billions to make electric vehicles in the country and Tesla (TSLA.O) Chief Executive Officer Elon Musk is considering investing in the country’s north, according to sources consulted by Reuters.” [Reuters, 10/31/22 (=)]

 

General Motor Corp.

 

GM EVs Will Qualify For Full $7,500 Tax Credit In 2-3 Years: CEO. According to Inside EVs, “General Motors CEO Mary Barra is confident the automaker’s electric vehicles will qualify for the full $7,500 federal tax credit in two to three years. According to Bloomberg, Barra told Wall Street analysts during General Motors Q3 2022 earnings call last week that the carmaker will be able to meet all battery sourcing and manufacturing requirements in two to three years to get the $7,500 federal tax credit. To be eligible for the full credit under the Inflation Reduction Act passed in August, electric vehicles must be assembled in North America and contain batteries made from raw materials sourced from North America or countries that have free-trade agreements with the United States. ‘We think, out of the gate, we’re going to be eligible for the $3,750, and we’ll ramp to have full qualification in the next two to three years, getting up to the $7,500. It just takes a couple of years to ramp up based on our expectations with the supply moves that we’ve already made.’ Mary Barra, General Motors CEO” [Inside EVs, 10/31/22 (=)]

 

GMC Hummer EVs Are "Sold Out For Two Years Or More". According to Inside EVs, “The resurrection of the Hummer brand as GMC’s high-end EV sub-brand appears to be a great business idea and, considering recent news, it seems to have surpassed all expectations. Demand for both models - the GMC Hummer EV Pickup and the GMC Hummer EV SUV - is strong, which prompted the company to close reservations after exceeding 90,000 (backed by $100 refundable deposits). That’s a big number, especially compared to the 783 units delivered so far (between December 2021 and September 2022). Even considering a fast ramp-up, wait times must be pretty long for new orders. According to GM Authority, Buick and GMC Global Vice President Duncan Aldred said that the electric Hummers are ‘sold out for two years or more.’ That’s actually more than we thought. Assuming that all reservations turn into orders, we are talking about 45,000 per year. It’s hard to say whether GM is able to produce so many electric Hummers in 2023. GM Authority reports that over roughly one year, the company produced 2,570 GMC Hummer EV pickup trucks. The good news is that production is ramping up and in September reached a new record level of 750. If GM would be able to maintain such a rate, then it would be 9,000 annually. Not bad, but still not enough to satisfy demand, we guess.” [Inside EVs, 10/31/22 (=)]

 

GMC Announces HUMMER EV Electric Bike With All-Wheel-Drive To Complement Electric Supertruck. According to Electrek, “The massively excessive GMC HUMMER EV is known as a ‘supertruck,’ and now the automaker is announcing a ‘super e-bike’ to go with it. The newly unveiled GMC HUMMER EV ALL-WHEEL DRIVE EBIKE will serve as a companion vehicle for the massive electric truck. The new GMC HUMMER EV e-bike is a hardtail fat tire electric bike that features a pair of Bafang hub motors to provide all-wheel drive. Each motor is rated at 750W continuous and 1,200W peak, meaning the bike puts out 2.4 kW of power at full tilt. That allows it to reach speeds of up to 28 mph (45 km/h). Fortunately, the bike also includes a pair of four-piston hydraulic disc brakes to bring it back down to reasonable speeds. A maximum of 1 kWh of battery will supply those power-hungry motors, and the battery is removable for charging off the e-bike. For those keeping score at home, that means the GMC HUMMER EV will have a 200x larger battery than the GMC HUMMER EV ALL-WHEEL DRIVE EBIKE. Priced at around $113,000, the four-wheeled version is also around 28x more expensive than its $3,999 two-wheeled companion. GMC will have the e-bikes available at its dealerships but will also offer the e-bike direct-to-consumer for online ordering.” [Electrek, 10/31/22 (=)]

 

Mercedes-Benz AG

 

Mercedes To Launch Final Combustion Platform Vehicle In 2023. According to Electrive, “The new generation E-Class planned for 2023 will be the last new model from Mercedes-Benz on an internal combustion engine platform. All subsequent new model series in the future will be based on architectures that the Stuttgart-based company is developing specifically for electric vehicles. This is what development boss Markus Schäfer told the German publication Automobilwoche. He is quoted as saying, ‘As things stand today, the E-Class with its derivatives is the last Mercedes-Benz model to be created on a pure combustion engine platform.’ The current versions of the S-Class and C-Class, which are based on the same platform, will be phased out at the end of their model cycle. Mercedes-Benz’s goal is to put only battery-electric new vehicles on the road by 2030 – but that includes back-door options (‘wherever market conditions permit’). Mercedes had already announced in July 2021 that it would only introduce new electric platforms from 2025. Three architectures have been announced in concrete terms: MB.EA covers all mid-sized and large passenger cars and ‘will be the electric basis of the future BEV portfolio as a scalable modular system,’ Daimler said at the time. For the performance models, the AMG.EA ‘electric platform designed for peak performance’ is intended to address ‘the needs of Mercedes-AMG’s technology-savvy and performance-oriented customers.’ Electric vans and light commercial vehicles are to be launched on the basis of the VAN.EA, which is also new.” [Electrive, 11/1/22 (=)]

 

Panasonic Holdings Corp.

 

Panasonic To Start Building Kansas Battery Plant Next Month. According to Reuters, “Japan’s Panasonic Holdings Corp (6752.T) said on Monday it will start building a new battery plant in Kansas in November and aims to begin mass production by March 2025, targeting North America’s fast-growing market for electric vehicles. The conglomerate’s energy unit said in July it had picked Kansas as the site for a new plant to supply batteries primarily to Tesla Inc (TSLA.O), joining other battery producers planning massive U.S. investments to qualify for new EV tax credit rules and to tap that market’s potentially massive demand. Panasonic said in a statement that it expects initial production capacity of 30 gigawatt hours per year at the new plant. That’s equivalent to roughly 60% of the company’s current annual EV battery production capacity in Japan and the United States. Kansas state officials said in July the factory would create up to 4,000 jobs with investment of up to $4 billion, pending final approval by Panasonic’s board, which came through on Monday. Hirokazu Umeda, Panasonic Holdings Group chief financial officer, declined to give a specific figure for the investment at an earnings briefing on Monday, but said as a rough estimate that it would be ‘on a scale of more than $4 billion’ . The company said the factory would produce its 2170 model lithium-ion battery cells, which are already supplied to Tesla, but may eventually make the more advanced 4680 format battery currently under development that is about five times larger and will offer major improvements in cost and vehicle range.” [Reuters, 10/31/22 (=)]

 

Panasonic Prepares To Launch US Battery Factory Construction. According to Electrive, “The Japanese company Panasonic has scheduled the start of construction of its new battery cell factory in the US state of Kansas for November 2022. It will be Panasonic’s second battery factory for electric vehicles in the USA after the Gigafactory 1 in Nevada, which is operated jointly with Tesla. It was already known that Panasonic would build a battery factory in Kansas: In July, the company and the state’s economic development agency announced that the battery manufacturer had identified a site in De Soto for the construction of the factory and that the state of Kansas had approved a state incentive application submitted by Panasonic. However, at the time, there was only talk of a ‘US-based EV Battery Facility’ – Panasonic did not give any further details on production at the time. The details are now available in the current announcement: The new factory in Kansas will initially produce cells of the 2170 format. Series production is planned to start at the end of March 2025, with an initial annual production capacity of 30 GWh. This will expand Panasonic’s 2170 production capacity in the USA, as this round cell format is also produced in Gigafactory 1. However, it is not known whether the 2170 cells from Kansas are also intended for Tesla and have the same cell chemistry inside. 2170 round cells have also become widespread in other eMobility applications.” [Electrive, 10/31/22 (=)]

 

Renault-Nissan-Mitsubishi Alliance

 

Renault-Nissan Talks Hit Snag Over Intellectual Property, Other Issues. According to The Wall Street Journal, “Renault SA RNO 3.16%increase; green up pointing triangle and Nissan Motor Co. NSANY 0.79%increase; green up pointing triangle are struggling to nail down a deal that would reshape their alliance, with intellectual property among the sticking points, according to people with knowledge of the talks. Discussions so far between Renault and Nissan have outlined a plan under which the French auto maker would reduce its current 43% stake in its Japanese partner to 15%, people at the companies said. The shares to be disposed of would be put into an independent financial trust and then sold at a later date at a predetermined price, the people said. In exchange, Nissan would invest in Renault’s new electric-vehicle business, which the French auto maker aims to take public next year, the people said. Renault and Nissan had been hopeful that they could strike a preliminary nonbinding agreement to reshape their more than two-decade-old alliance as soon as late October, people at the companies said. But several sticking points have delayed such a deal from being concluded, people familiar with the discussions said. A major one involves jointly developed intellectual property and how it would be transferred to Renault’s new EV business, people familiar with the talks said.” [The Wall Street Journal, 10/31/22 (=)]

 

Sila Nanotechnologies Inc.

 

Q&A: Company’s Chemistry Could Cut EV Battery Costs. According to Associated Press, “A small company called Sila has contracts with most major automakers to research or provide a promising new battery chemistry that can let electric vehicles travel farther with a smaller battery. The Alameda, California, company began more than a decade ago as a startup out of Georgia Tech, and co-founder and CEO Gene Berdichevsky says its chemistry can store more energy than current lithium-ion batteries. … Q: What do you see as the shortcomings of today’s lithium-ion batteries for electric vehicles, and how can your company change that? A: The biggest shortcoming is cost. We’ve demonstrated that incredible vehicles can be made with today’s battery technology, very long range that consumers love and want to buy. The key now is to make every vehicle equally compelling, and that means getting to lower-cost vehicles without sacrificing performance, without making the vehicle have only 100 miles, 200 miles of range. Those are pretty mediocre vehicles that people tend to not want to buy. To do that, you really need to drive down costs. The best way is to increase performance and to store more energy in fewer cells. By replacing graphite with silicon, every single battery in a vehicle can store 20% to 40% more energy. Then you can use 20% to 40% fewer cells to fill the battery pack. So the higher the performance of the chemistry, the fewer cells you need. The fewer cells you need, the lower cost the battery system can be for the same range. Silicon also allows you to increase performance. You can maintain the same number of cells and get much longer range. That enables things like 500-mile vehicles.” [Associated Press, 10/31/22 (=)]

 

Tata Motors

 

Formula E Racing Chips Will Power Future Jaguar Land Rover EVs. According to Electrek, “Jaguar Land Rover has entered into a new strategic partnership with semiconductor maker Wolfspeed (WOLF) to use its chips to power its next generation of EVs. This is not the first business partnership between Jaguar Land Rover (JLR) and Wolfspeed. The chip maker has been supplying its silicon carbide semiconductors to the Jaguar TCS Racing Formula E for use in its powertrain since 2017. Wolfspeed looks to power a new era of zero-emission transportation with its silicon carbide inverters (SiC). SiC-based inverters are smaller, lighter, and more efficient (5-10% increase in EV range), according to the chip maker. With nearly every major automaker and startup spending billions to meet the growing wave of buyers demanding EVs, supply chain bottlenecks limit output. In particular, a shortage of semiconductors crippled the industry. The pandemic greatly accelerated the need for computer chips as the world adjusted to a new, digital world. The more digital, connected devices that come online, the more computer chips are needed. On top of this, production was limited as many companies anticipated a slowdown, not an acceleration in demand.” [Electrek, 10/31/22 (=)]

 

Tesla Inc.

 

Elon Musk Has Pulled More Than 50 Tesla Employees Into His Twitter Takeover. According to CNBC, “New Twitter owner Elon Musk has pulled more than 50 of his trusted Tesla employees, mostly software engineers from the Autopilot team, into his Twitter takeover, CNBC has learned. Musk, who is CEO of automaker Tesla and reusable rocket maker SpaceX, completed the $44 billion acquisition of Twitter on Oct. 28 and made his mark there immediately. He fired the company’s CEO, chief financial officer, policy and legal team leaders right away, and has also dissolved Twitter’s board of directors. According to internal records viewed by CNBC, employees from Musk’s other companies are now authorized to work at Twitter, including more than 50 from Tesla, two from the Boring Company (which is building underground tunnels) and one from Neuralink (which is developing a brain-computer interface). Some of Musk’s friends, advisors and backers, including the head of his family office Jared Birchall, angel investor Jason Calacanis, and founding PayPal chief operating officer and venture capitalist David Sacks, are also involved. So are two people who share Musk’s last name, James and Andrew Musk, who have worked at Palantir and Neuralink, respectively.” [CNBC, 10/31/22 (=)]

 

Tesla Plans Mass Production Start For Cybertruck At End Of 2023. According to Reuters, “Tesla (TSLA.O) aims to start mass production of its Cybertruck at the end of 2023, two years after the initial target for the long-awaited pickup truck Chief Executive Elon Musk unveiled in 2019, two people with knowledge of the plans told Reuters. Tesla said last month that it was working on readying its Austin, Texas plant to build the new model with ‘early production’ set to start in the middle of 2023. ‘We’re in the final lap for Cybertruck,’ Musk told a conference call with financial analysts. A gradual ramp in the second half of next year to full output for the sharp-angled electric truck would mean that Tesla would not be recording revenue until early 2024 for a full-quarter of production on a new model seen as key to its growth. It would also mean a wait of another year for the estimated hundreds of thousands of potential buyers who have paid $100 to reserve a Cybertruck in one of the most highly anticipated, and closely tracked electric vehicle launches ever. Tesla did not immediately respond to a request to comment.” [Reuters, 11/1/22 (=)]

 

Tesla Sends Shanghai Workers To California For Factory Boost. According to Bloomberg, “Tesla Inc. is sending engineers and production staff from its recently upgraded Shanghai factory to its plant in Fremont, California, in a bid to boost production at the US facility, according to people familiar with the plans. The Elon Musk-led carmaker will dispatch staff -- in particular automation and control engineers -- to assist efforts to increase output in Fremont, where Tesla produces the Model S, X, 3 and Y vehicles, the people said, asking not to be identified because the information is private. About 200 people will head to California on assignments that will last at least three months, one of the people said. The first workers are setting off as soon as this month, the person added. A representative for Tesla in China declined to comment. Tesla shares rose as much as 2.1% to $232.38 before the start of regular trading. Tesla delivered a record 83,135 cars in China in September after increasing the capacity of its Shanghai factory. The upgrade of the company’s first plant outside of the US, which entailed machinery maintenance and improvements overseen by automation and control engineers, took about five weeks. This helped double the factory’s annual capacity to around 1 million vehicles, Bloomberg News has reported. Fremont can produce about 650,000 cars a year. The uptick in production has contributed to shortening wait times for a Tesla in China to one to four weeks, from a peak of as long as 22 weeks earlier this year, according to the automaker’s website. Last week, the company cut prices across its lineup to attract buyers in the face of tougher competition from local manufacturers including BYD Co., which is also expanding globally.” [Bloomberg, 11/1/22 (=)]

 

Tesla Prepares To Expand Production At Giga Berlin. According to Electrive, “Tesla wants to increase its production capacities in Grünheide and has begun preparing the next expansion stage. Since Friday, 70 hectares of pine forest have been cleared for the expansion. Reportedly, permission for the clearing has already been granted. Tesla is preparing an application for the expansion itself. According to a report in the German publication Märkische Oderzeitung, the expansion involves 70 hectares in the north of the property. The newspaper refers to information provided by Tesla to the Grünheide municipality. In the meantime, the Brandenburg state government has also confirmed the expansion of the plant. Brandenburg’s Minister of Economic Affairs, Jörg Steinbach, said on Twitter that he was pleased that ‘Tesla is moving forward’. According to the newspaper report, the clearing is still covered by the current development plan, but not the expansion of the factory itself. Tesla will have to apply for a new permit. The new hall will then have to be approved again according to the German Federal Immission Control Act. In other words, there will again be public participation and, similarly to how Tesla proceeded with the previous factory construction, there will most likely be a series of applications for preliminary permits in order to be able to start promptly.” [Electrive, 10/31/22 (=)]

 

Toyota Motor Corp.

 

Toyota Profit To Rise But Eyes Will Be On Its Shaky Supply Chain, EV Strategy. According to Reuters, “Toyota Motor Corp (7203.T) is expected to report a small quarterly profit increase on Tuesday, with soaring costs of parts and materials nearly offsetting the benefits from the plunging Japanese yen and a rebound in production. The world’s biggest automaker by sales said last week its global production rebounded by 30% in the quarter that ended in September, but warned shortages of semiconductors and other components would continue to constrain output in coming months. A gradual improvement in the auto chip shortage situation should help raise output in the second half of the current fiscal year, but investors’ focus will shift to demand outlook, other potential disruptions in the supply chain and its electric vehicle strategy when Toyota reports earnings. ‘The point to look out for is why there has been such a gap in the supply chain process,’ said Kohei Takahashi, an analyst at UBS Securities Japan, noting improvement in chip supplies. … Toyota and its major Japanese rivals, Nissan Motor (7201.T) and Honda Motor (7267.T), are also grappling with longer term challenges including their slow push into electric vehicles. Just a year into its $38 billion EV plan, Toyota is already considering rebooting it to better compete in a market growing beyond its projections, Reuters reported this month. It also had to recall its first mass-produced all-electric vehicle after just two months on the market due to safety concerns earlier this year. It restarted taking leasing orders this month.” [Reuters, 10/31/22 (=)]

 

Toyota Places Recycled EV Batteries On Grid. According to CleanTechnica, “One of the big ‘gotchas’ anti-EV people on social media like to pull out is the future of your battery. In their heads, an expensive EV battery pack isn’t going to last very long and is utterly unrecyclable. So, the thinking goes, an electric car isn’t very green, is it? Checkmate, libs! But they shouldn’t claim victory so fast. There are some gaping holes in the argument (even if we know that won’t stop them from making it over and over and over). The good news is that a recent Toyota press release shows us that the claim is even less true in 2022 than it ever was. But, first, let’s talk about battery longevity. As we’ve pointed out before here at CleanTechnica, the biggest issue with their argument is that battery packs will probably last the life of a car. While there have certainly been battery replacements under warranty (just like any ICE car has warranty replacements happen to engines), this sometimes happens hundreds of thousands of miles into the life of the car. Teslas are known for their long-lasting battery power, with one Tesla taxi remaining useful for over 180,000 miles on its first battery, and then continuing to be used on a second battery for over 600,000 miles. Another Tesla’s battery (driven extensively for Uber) lasted for 250,000 miles before needing to be changed. The second battery then went for at least 175,000 more miles and was still going strong (degradation below 20%).” [CleanTechnica, 10/31/22 (=)]

 

Chip Shortages Still Plague Toyota, Some Other Auto Makers. According to The Wall Street Journal, “Overall demand for semiconductors may be softening, but the world’s biggest auto maker says it still can’t get its hands on enough chips. Toyota Motor Corp. TM -0.51%decrease; red down pointing triangle on Tuesday lowered its Toyota and Lexus production target for the current fiscal year through March to 9.2 million units from a previous goal of 9.7 million, citing the risk of chip-supply issues. The situation reflects prolonged underinvestment in certain older types of chips that are particularly needed by car makers. While slowing demand for smartphones and personal computers has eased shortages of memory and other chips and sparked fears of a glut, pockets of constrained supply remain. Analysts and chip executives say the supply-demand mismatch could drag on for years. ‘If we look at each type of semiconductor, the supplies haven’t recovered to a satisfactory level,’ said Kazunari Kumakura, Toyota’s head of purchasing. … A McKinsey & Co. report in October said that while manufacturers are trying to squeeze out more production of the legacy semiconductors, they are unlikely to keep up with demand through 2026. That is partly because of the rise of electric and hybrid vehicles that rely more on the chips, McKinsey said.” [The Wall Street Journal, 11/1/22 (=)]

 

 

Electric Vehicles

 

EV Sales & Transition

 

GOP Seizes On Voter Hesitancy To Attack EVs As Costly To US . According to Associated Press, “Heading into next week’s midterm elections, many Republican candidates are seeking to capitalize on voters’ concerns about inflation by vilifying a key component of President Joe Biden’s climate agenda: electric vehicles. On social media, in political ads and at campaign rallies, Republicans say Democrats’ push for battery-powered transportation will leave Americans broke, stranded on the road and even in the dark. Many of the attack lines are not true — the auto industry itself has largely embraced a shift to EVs, for instance, and some Republican lawmakers are quick to cheer the opening of EV battery plants in the U.S. that promise new jobs. But political analysts say the GOP messaging exploits voter hesitancy on EVs that may have put Democrats on the defensive at a time when Americans are especially feeling a financial pinch. EVs cost $65,000 on average, a fact GOP candidates cite. More than two-thirds of Americans say they are unlikely to purchase an electric vehicle in the next three years, according to a new poll by The Associated Press-NORC Center for Public Affairs Research. Democrats are twice as likely to say they plan to purchase one as Republicans, 37% to 16%, respectively.” [Associated Press, 10/31/22 (=)]

 

100% Electric Vehicles = 13% Of New Vehicle Sales Globally! According to CleanTechnica, “Global plugin vehicle registrations were up 51% in September 2022 compared to September 2021, reaching a record 1,040,000 units. This is the first time ever the world reaches one million plugin vehicle registrations in a month. Despite the USA and Europe not reaching record months in September, China made up for it. China was also supported by a long list of other markets at record heights, with the highlights being: Australia (8,000 units), South Korea (17,000), and … Japan (13,000)! Yep, Japan is (finally!) warming up to EVs, in no small part thanks to the success of the kei car Nissan Sakura and its Mitsubishi sibling, the eK X EV. Another interesting trend: all of the previously record-breaking markets are located in the Asia-Pacific region…. With such a strong month in September, plugins represented 17% share of the overall auto market. Full electrics (BEVs) themselves reached 13% share of the market! And these numbers could have been even larger if the overall market had not been in its newfound recovery mode. That, added to the fact that plugless hybrids (HEVs) posted their highest growth rate since last January (+14% YoY), confirms once again the significant correlation between the HEV and pure ICE (internal combustion engine) markets.” [CleanTechnica, 10/31/22 (+)]

 

Here’s Every Electric Vehicle That Qualifies For The Current And Upcoming US Federal Tax Credit. According to Electrek, “As sales of electric vehicles continue to surge, many new and prospective customers have questions about qualifying for federal tax credit on electric vehicles, especially now that a slew of new credits have been reinstated to US consumers. Whether you qualify is not a simple yes or no question… well, actually it sort of is, but the amount you may qualify for varies by household due to a number of different factors. Furthermore, there are other potential savings available to you that you might not even know about yet. Luckily, we have compiled everything you need to know about tax credits for your new or current electric vehicle into one place. The goal is to help ensure you are receiving the maximum value on your carbon-conscious investment because, let’s face it, you’ve gone green and you deserve it.” [Electrek, 10/31/22 (+)]

 

Top 5 Automakers For Electric Vehicle Sales Globally. According to CleanTechnica, “Let’s look at electric vehicle registrations by OEM — for now, full electrics (BEVs) plus plugin hybrids (PHEVs). At the end of Q2, BYD was leading with 15.4% share, but now it is up 1.9 percentage points, to 17.3%, increasing its advantage over Tesla to 4% market share. Comparing with the month of August, BYD increased its share from 16.9% to its current 17.3%. Tesla remained in second with 13.3% share, down from 13.6% in Q2, but up from 12.4% compared to August thanks to the September end-of-quarter peak. There was a position change in the last place on the podium, with a slowing SAIC (7.6%, down from 8.6% in Q2) being surpassed by Volkswagen Group (8%, same as Q2). Still, comparing with August, both lost 0.3% of market share in September. In the 5th position, Geely–Volvo consolidated its position, increasing 0.1% share compared to Q2, to 5.7%. At the same time, it saw its most direct competitors, #6 Hyundai–Kia (5.0%, down from 5.4% in Q2) and #7 Stellantis (4.8%, down from 5.5% in Q2) lose share.” [CleanTechnica, 11/1/22 (+)]

 

EV Resources & Technology

 

A Reckoning For EV Battery Raw Materials. According to IHS Markit, “Geopolitical turbulence and the fragile and volatile nature of the critical raw-material supply chain could curtail planned expansion in battery production—slowing mainstream electric-vehicle (EV) adoption and the transition to an electrified future. Soaring prices of critical battery metals, as observed in the following chart from S&P Global Commodity Insights, are threatening supplier and OEM profit margins. This situation has quickly translated into increased component and vehicle prices, according to new analysis from S&P Global Mobility Auto Supply Chain & Technology Group. Trade friction and ESG concerns are also affecting the development of the raw materials supply chain between markets. These collective developments add to the challenges of the electric vehicle transition. Achieving its volume goals will require a steep growth curve for a burgeoning industry. For OEMs to hit their BEV and hybrid sales aspirations, S&P Global Mobility forecasts market demand of about 3.4 Terawatt hours (TWh) of lithium-ion batteries, annually, by 2030. This figure excludes the medium- and heavy-duty, and micro-mobility spaces, as well as consumer electronics and burgeoning demand for stationary energy storage. The 2021 output for the auto industry: 0.29 TWh.” [IHS Markit, 10/31/22 (=)]

 

EV Battery Production Faces Supply Chain, Geopolitical Headwinds – Report. According to Reuters, “A fragile supply chain marred by geopolitical tensions could hit the planned expansion of electric vehicle (EV) battery production, slowing EV adoption, S&P Global Mobility warned in a report on Monday. The auto industry information provider said original equipment manufacturers’ battery-electric and hybrid vehicle sales aspirations will face strong headwinds as they scramble for raw materials, with annual market demand for lithium-ion batteries pegged at about 3.4 Terawatt hours (TWh) by 2030. S&P Global Mobility also said soaring prices of critical battery metals threaten the profit margins of suppliers and automakers, with issues around the production of these metals boosting prices for components and vehicles. ‘Elements such as lithium, nickel, and cobalt do not just magically appear and transform into EV batteries and other components,’ said Graham Evans, director of auto supply Chain & technology at S&P Global Mobility. The intermediate steps between excavation of elements and final assembly are a particular choke point, he added. Reuters reported earlier this month, the world’s top automakers plan to spend nearly $1.2 trillion through 2030 to develop and produce millions of electric vehicles, along with the batteries and raw materials.” [Reuters, 10/31/22 (=)]

 

 

States & Local

 

Arizona

 

Driving An Electric Vehicle In Arizona Doesn’t Need To Cause Range Anxiety. According to KTAR-TV, “With more electric vehicles humming down highways, states are under increasing pressure to install more public charging stations to make sure the juice keeps flowing. The challenge is particularly acute in California, which adopted a rule in August to gradually phase out sales of new gas-powered vehicles by 2035 with the goal to reduce greenhouse gas emissions and to help fight climate change. States can take advantage of the Bipartisan Infrastructure Bill, which gives $5 billion nationally for public charging stations as part of the new National Electric Vehicle Infrastructure Formula Program. States that write up strategic plans to expand charging station infrastructure are eligible for a grant from the program to help make it possible. The program should benefit Arizona, with wide open spaces and long distances between major cities. It recently was granted $76.5 million over three years to install stations along interstate highways in the state. The Arizona Department of Transportation is holding a series of public meetings, including Nov. 16 in Phoenix, to gather comments on the plan. ‘The plan basically calls for electrical vehicle charging stations to be placed either upgraded existing stations and eventually new stations no more than 50 miles apart initially on the interstate system in Arizona,’ said Doug Nick, an ADOT spokesman.” [KTAR-TV, 10/31/22 (=)]

 

Illinois

 

CPS Buys 10 Electric Cars For Driver's Education Through ComEd Grant Program. According to CBS News, “Some Chicago Public Schools kids are going to learn how to drive on electric cars. Thanks to a grant from ComEd, five CPS high schools have been able to purchase a total of nine electric vehicles and charging stations, with a sixth high school set to buy an electric vehicle and charging station by the end of the year. The zero-emission cars will be used for the schools’ driver’s education programs. CPS chief executive officer Pedro Martinez said the vehicles aren’t just great for learning how to drive – they can open kids’ minds. ‘What our bigger vision is, is not only having electrical vehicles, because they’re better for the environment; it’s also about introducing our students to this amazing industry and green type that is growing,’ he said. According to CPS, the Illinois High School & College Driver Education Association helped develop curriculum explaining the basic components and charging requirements of electric vehicles; as well as outlining the difference in maintenance for electric vehicles as they become more and more common on the roads.” [CBS News, 10/30/22 (=)]

 

Some Chicago Area Teens Will Learn To Drive With An EV, Thanks To Grants From ComEd. According to CleanTechnica, “It’s kind of fun to think about how future kids might not know anything about gas-powered cars. When they become the norm, and kids didn’t ride in them growing up, didn’t learn to drive on gas, and didn’t generally know that world at all, things for them might be the opposite than they are for people who are adults buying an EV today. ‘You can’t charge it at night, and have to go to the gas station every week or two?’ they might ask, in dismay. ‘What’s that gawd-awful smell?’ They might like the quick fuel stops on road trips, but then again, they might complain that there’s no time for a snack and a bathroom break. These funny moments might be coming a little sooner than we thought, though. A recent announcement from ComEd, the electric company in Chicago and other parts of northern Illinois, means that more teens are going to learn to drive in an EV and then bug their parents with those questions later. Five public high schools in the area will have students drive electric vehicles (EV) as part of driver education class, thanks to a $250,000 investment that ComEd announced today. The ‘EVs for Education’ program provides schools with funding to offset the cost of an EV and EV charger. As a result, students will have practical experience driving EVs and learning about new zero-emissions vehicles on the rise in Illinois and across the country/world.” [CleanTechnica, 10/31/22 (=)]

 

 

International

 

European Union

 

EU Asks U.S. For Same Treatment As Canada And Mexico In Electric Vehicles Sales. According to Reuters, “The European Union asked the United States on Monday to treat EU electric vehicles, batteries and sustainable energy equipment sold in the United States the same as those from Canada and Mexico, Czech trade minister Jozef Sikela said. The 27-nation EU has been complaining the U.S. Inflation Reduction Act effectively discriminates against EU producers because it offers tax breaks to consumers on such goods made in North America, but not for those made in the EU. The EU argues that, unlike the United States, it offers the same tax breaks for EU-made and U.S.-made goods in these sectors. Speaking after a meeting of EU trade ministers and U.S. Trade Representative Katherine Tai in Prague, Sikela, whose country holds the rotating presidency of the EU, told a news conference there was a willingness on both sides for a deal. ‘We are expecting a derogation (in the U.S. Inflation Reduction Act) for EU member states - ideally we would like to have the same as Canada and Mexico, but we have to be realistic and see what we can negotiate,’ Sikela said. The issue is to be resolved by a special task force, which will meet for the first time this week, EU Trade Commissioner Valdis Dombrovskis said. ‘We are focusing on a negotiated solution before we move on to other considerations,’ he said.” [Reuters, 10/31/22 (=)]

 

EU Aiming For Deal With US To Resolve Electric-Vehicle Dispute. According to Bloomberg Law, “The European Union hopes to resolve in upcoming negotiations a dispute with the US over new subsidies for North American manufacturers, a senior diplomat from the bloc said on Monday. The recently passed US Inflation Reduction Act, which provides subsidies to support green technologies in the US, is seen as discriminatory by the EU, South Korea and other trading partners. An EU-US task force is scheduled to discuss the issue this week, ahead of a December meeting of the US-EU Trade and Technology Council. That council, a consultative forum set up last year, has emerged as a powerful tool for ...” [Bloomberg Law, 10/31/22 (=)]

 

Russia

 

Strained Russian EV Market Could Lag Behind EU For Ten Years. According to Automotive World, “In mid-2021, the Russian electric vehicle (EV) sector looked primed for growth. Around that time, the country’s Ministry of Economic Development announced an ambitious plan to boost both EV production and usage through 2030.” [Automotive World, 10/31/22 (=)]

 

Sweden

 

Sweden's New Trade Chief Sees 'Worrying' Aspects In U.S. Electric Car Tax Credit. According to E&E News, “Sweden is joining France and Germany in voicing concerns over the United States’ new electric vehicle tax credit, and Stockholm will use its upcoming presidency of the Council of the EU to push to ‘improve’ trans-Atlantic relations on this matter, the new Swedish trade chief said. In an interview with POLITICO on Sunday ahead of an informal trade ministers meeting in Prague, Johan Forssell, Sweden’s newly appointed trade minister, said Stockholm shared the concerns of Berlin and Paris on the U.S. Inflation Reduction Act, a new law that offers tax cuts and energy benefits to companies that invest on U.S. soil and that incentivizes U.S. consumers to ‘buy American’ when it comes to getting a greener car. France and Germany have said the European Union cannot remain idle in the face of the new American measures and should hit back if the incentives remain the same. French President Emmanuel Macron has already called for a ‘Buy European Act’ to protect regional carmakers. Forssell said he would ‘underline’ those concerns with U.S. Trade Representative Katherine Tai during a bilateral meeting set for Monday, on the sidelines of the EU meeting in Prague, which is likely to be dominated by the trans-Atlantic row. In the interview at the Swedish ambassador’s residence in Prague, Forssell said Sweden will aim to do ‘what we can to improve the relationships between the EU and the U.S. At the same time … there are some elements in the Inflation Reduction Act that are worrying and they are not in accordance with [World Trade Organization] rules.’” [E&E News, 11/1/22 (=)]

 

United Kingdom

 

Meet The UK’s Fastest EV Charger: 62 Miles Of Range In 3 Minutes. According to Electrek, “UK charging network operator Gridserve has installed a 360 kW-capable electric vehicle charger – which the company claims is the UK’s fastest – at its pioneering electric forecourt in Braintree, Essex. Gridserve has branded the Terra 360, made by ABB, as ‘High Power.’ The company says the High Power is ‘able to provide a maximum 360 kW of power, meaning it has the ability to add around 62 miles of range in three minutes or fully charge an electric car in less than 15 minutes.’ (For comparison, the Tesla Supercharger has a max charging rate of 250 kW.) Keep in mind that Gridserve is planning for the future with the High Power, as few electric cars are currently capable of a charging speed of 360 kW. The Porsche Taycan has a max charging capacity (peak) of up to 270 kW, for example. Toddington Harper, CEO of Gridserve, said (via Fleet News): ‘It is fantastic to have the UK’s first 360 kW capable charger open to the public at Braintree Electric Forecourt. By installing this latest innovation now, we are offering state-of-the-art charging technology to our customers. It can be used with a variety of electric vehicles including HGVs and cars towing caravans.’” [Electrek, 10/31/22 (=)]

 

 

 

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