White House

 

On Our Energy Radar This Week. According to Axios, “Biden officials this week will unveil a ‘first-ever strategy based on near-term actions for removing all emissions from the transportation sector by 2050,’ an advisory states, Ben writes. Why it matters: Transportation is the largest source of U.S. carbon emissions and, as you can see above, little progress has been evident historically. 👀 What we’re watching: Elsewhere on our energy radar this week... President Biden will meet with leaders from Mexico and Canada in Mexico City today and tomorrow. Expect ‘energy exports and clean energy tax/trade concerns’ to be ‘front and center,’ Cowen Washington Research Group said in a note. Tomorrow’s monthly outlook from the U.S. Energy Information Administration will provide initial projections of 2024 U.S. crude oil production and other metrics.” [Axios, 1/9/23 (=)]

 

 

Federal Agencies

 

Department of the Treasury (USDT)

 

The IRS Answers All Your EV Tax Credit Questions — Sort Of. According to CleanTechnica, “People have a lot of questions about the new EV federal tax credit created by the Inflation Reduction Act. It’s little wonder. The rules are complex, which is quite the opposite of what we might expect from a program designed to increase sales. Confused people usually don’t buy stuff until they get the answers they need to make a rational decision. In an attempt to clarify things, the IRS has released an FAQ document that attempts to answer the most common questions people have. We can’t fault the IRS. Congress handed then a hot potato and they are doing their best to cope. Still, when you read through the FAQ page, you may feel the need to hire an accountant or an attorney — or both — to help you understand the new rules and regulations.” [CleanTechnica, 1/7/23 (=)]

 

Environmental Protection Agency (EPA)

 

Biden Administration Moves To Tighten Limits On Deadly Air Pollution. According to The New York Times, “The Biden administration on Friday proposed to tighten limits on fine particulate matter, a deadly air pollutant also known as soot. It would be the first time in more than a decade that the federal government cracks down on a contaminant responsible for thousands of premature deaths every year. Fine particulate matter comes from smokestacks, construction, trucks, power plants and other industrial activity. It has a diameter of no more than 2.5 micrometers, one-thirtieth the width of a human hair, and can become embedded in the lungs. It is linked to heart attacks, stroke and respiratory ailments. The draft rule by the Environmental Protection Agency would tighten the current limit, which has been in place since 2012, by as much as 25 percent. The administration estimates that it could prevent as many as 4,200 premature deaths annually, as well as 270,000 missed workdays per year, and result in up to $43 billion in net health and economic benefits by 2032. … In 2021, the E.P.A. restored Obama-era rules on climate-warming auto pollution that had been rolled back under Mr. Trump, and it is expected to further tighten those rules later this year. Also this year, agency officials plan to complete a new regulation on leaks of methane, a powerful planet-warming gas that seeps from oil and gas wells, and to enact a new rule to rein in carbon dioxide emissions from power plants, after the Trump administration had weakened and rolled back rules on those pollutants.” [The New York Times, 1/6/23 (+)]

 

EPA Proposes New Standards For Most Dangerous Type Of Air Pollution. According to Los Angeles Times, “Declaring that current standards are no longer sufficient to protect public health, the Environmental Protection Agency has proposed strengthening federal rules for one of the world’s most dangerous and pervasive types of air pollution — fine particulate matter. EPA Administrator Michael S. Regan announced Friday that the agency intends to further restrict annual concentrations of so-called PM2.5 — microscopic particles that are contained in diesel exhaust, wildfire smoke and other emissions and are known to trigger heart attacks and respiratory illness. The potential measure, which could be enacted this year following public meetings, could prevent thousands of premature deaths, the agency estimates. … The lion’s share of particle pollution in Southern California comes from transportation, which state regulators are attempting to curtail with a ban on the sale of new gasoline-powered cars by 2035, and a proposal to transition heavy-duty trucks to zero-emission technology. The federal government, for its part, last month adopted stronger emissions standards for heavy-duty trucks.” [Los Angeles Times, 1/6/23 (+)]

 

EPA Proposes Tighter Rule To Cut Soot Pollution. According to Politico, “EPA on Friday proposed strengthening a key national air quality standard for soot, a move that would overturn a Trump-era decision that left one of the nation’s most important pollution regulations unchanged and which the agency predicted would yield tens of billions of dollars per year in public health benefits. Under the proposal released by Administrator Michael Regan, EPA is considering lowering the annual average exposure limit from 12 micrograms to between 9 and 10 micrograms. The move is expected to receive significant pushback from industry, even though it fell short of environmentalists’ hopes that EPA would go farther and propose a new standard of 8 micrograms. President Donald Trump’s EPA declined to change the standard from levels for fine particulate matter — particles smaller than 2.5 microns — that were set in 2012 at 12 micrograms on an annual average or 35 micrograms over a single day. Regan ordered a reconsideration of that finding. EPA’s internal scientists and the agency’s panel of outside advisers last year agreed that the annual average limits should be strengthened, potentially as far as 8 micrograms. For the 24-hour standard, EPA staff recommended no change while a majority of its scientists on its independent advisory body, the Clean Air Scientific Advisory Committee, called for strengthening it to as low as 25 micrograms. Particulates are emitted directly or form indirectly through chemical reactions from other pollutants that come from power plants and other industrial sources, motor vehicle tailpipes and wood-burning stoves, as well as from natural sources such as wildfires. Exposure to fine particles, known as PM2.5 because of their tiny size, leads to premature death and increases of heart attacks, asthma and other ailments.” [Politico, 1/6/23 (=)]

 

EPA Tiptoes To Tighter Soot Standards. According to E&E News, “EPA is toughening regulation of a particularly dangerous air pollutant for the first time in a decade — but the agency could stop short of fully adopting an expert advisory panel’s recommendations, according to a proposed rule released Friday morning. Under that draft, the agency would cut the current annual exposure limit for soot from 12 micrograms per cubic meter of air to somewhere in the neighborhood of 9 to 10 micrograms. But the proposal leaves the current daily standard — set in 2006 — unchanged at 35 micrograms per cubic meter of air. While in keeping with the findings of EPA career staff, the latter provision runs counter to the conclusions of the Clean Air Scientific Advisory Committee, which urged a cut to somewhere between 25 and 30 micrograms (Greenwire, Feb. 7, 2022). EPA will, however, take public feedback on that option, as well as more and less stringent alternatives to the proposed annual standard, agency Administrator Michael Regan said in a conference call with reporters.” [E&E News, 1/6/23 (=)]

 

Truck NOx Rule Lands Short Of California Requirements. According to Politico, “EPA has finalized a rule that will require heavy-duty trucks sold in 2027 to sharply slash their emissions of nitrogen oxides and other pollutants — but not as much as public health advocates had hoped. EPA estimates that its final rule, Reg. 2060-AU41, will slash NOx emissions from heavy-duty vehicles by 48 percent by 2045 — slightly less than the more stringent option the agency proposed this spring. Cleaved from this regulation is final action that sought to squeeze more greenhouse gas savings out of post-2027 trucks, which EPA said it will finalize in the coming months separately.” [Politico, 1/6/23 (=)]

 

Biden Administration Proposes Tighter Air Pollution Standard, In Reversal Of Trump. According to The Hill, “The Biden administration is proposing to tighten a key air pollution regulation after the Trump administration declined to do so. The Environmental Protection Agency (EPA) proposed on Friday to tighten limits on how much soot can be in the air, though some environmentalists are calling on the agency to go even further to protect public health. Exposure to soot pollution, also known as fine particle pollution, has been linked to heart attacks, asthma and premature deaths. This type of pollution can come from burning fossil fuels in cars or at power plants or from other places like fires or construction sites. It disproportionately impacts communities of color and low-income households. The administration estimated that its move could prevent as many as 4,200 premature deaths per year. … ‘It’s progress,’ said Vijay Limaye, a climate and health scientist with the Natural Resources Defense Council. ‘The problem is, that still leaves a lot of dangerous air pollution exposures on the table.’ … Asked why the EPA was not more aggressive, Regan said that the agency came to its proposal after consulting with both internal experts and a range of stakeholders. ‘We arrived to this space based on sound science and a rigorous evaluation of the data that we have at hand,’ he told reporters.” [The Hill, 1/6/23 (=)]

 

Biden’s EPA Prepares To Clamp Down On Industry With New Soot Pollution Limits. According to The Daily Caller, “The Environmental Protection Agency (EPA) on Friday proposed a new rule that will further clamp down on industrial activity that produces fine particulate matter, or soot. Fine particulate matter ‘disproportionately’ harms minorities and other ‘vulnerable populations,’ and enters the atmosphere when power plants, construction operations and other industries burn fossil fuels, according to an agency press release. The EPA aims to limit the average amount of soot particle pollution to 9 to 10 micrograms per cubic meter of air, toughening the current standard by up to 3 micrograms. (RELATED: The EPA’s Latest Regulation Could Devastate The Trucking Industry) ‘Our work to deliver clean, breathable air for everyone is a top priority at EPA, and this proposal will help ensure that all communities, especially the most vulnerable among us, are protected from exposure to harmful pollution,’ EPA Administrator Michael Regan said in a statement. The EPA will consider setting the allowance on soot emissions on a range as low as 8 and as high as 11 micrograms per cubic meter of air. If the agency manages to limit particulate matter emissions to 9 micrograms per cubic meter, up to 4,200 annual premature deaths would be prevented and the nation would save up to $43 billion in net health care costs by 2032, according to the press release.” [The Daily Caller, 1/6/23 (=)]

 

Op-Ed: Guinea Pigs 2.0: Can Trucking Comply With A Near Impossible NOx Reduction? According to an op-ed by Jim Park in Heavy-Duty Trucking, “Sneaky devils that they are, the U.S. Environmental Protection Agency released its long-awaited final rule on heavy-duty diesel engine NOx emissions, just five days before Christmas — three days before everyone packed up and shut down for the holidays. Good thing too, for the EPA, for the howls of righteous indignation are probably still ringing through the hallways over there on Pennsylvania Avenue. We’re in for it, again, friends, if this final rule goes through. The Truck and Engine Manufacturers Association warned the EPA in its comments to the proposed rulemaking that aspects of the plan were infeasible. To wit: ‘Manufacturers will not produce Option 1-compliant products because the Option 1 standards are not feasible. Accordingly, the FTP/RMC certification standards for NOx must be set at Option 2-like levels, not 0.02 g/bhp-hr. Otherwise, the standards will fail to provide the requisite compliance margins, which will render them infeasible in practice, and will cause unacceptable compliance and recall risks for manufacturers.’ EMA’s comments, along with Daimler Truck, Allison, Cummins, and others, all used language that would leave little doubt in almost anyone’s mind that the path EPA was proposing was not a good one. The final rule, published December 20, opted to go with something akin to Option 1, rather than Option 2, favored by almost all the engine-maker commenters.” [Heavy-Duty Trucking, 1/6/23 (-)]

 

 

Manufacturers, Fleets, & OEMs

 

Afeela

 

Afeela Plans Further Models And Launch In Europe. According to Electrive, “Sony and Honda’s new electric car brand Afeela is already planning more models and a market entry in Europe, according to a British media report. The joint venture Sony Honda Mobility (SHM) has just presented the new brand at the CES, including a first sedan study. The British publication Autocar says that Yasuhide Mizuno, CEO of the new joint venture, revealed that after the planned sales start in North America at the end of 2025, the electric sedan will also be launched in Europe about one year later. The report also reveals that Afeela is already planning the next models to be launched fairly soon after the sedan. As Mizuno is reported to have said on the sidelines of the CES in Las Vegas, Afeela is considering launching an electric SUV, a second electric sedan, and possibly an electric van. ‘We’re thinking about the second and third models. We need a line-up. Not only one unit, finish,’ Yasuhide Mizuno, chairman and CEO of SMH told Autocar.” [Electrive, 1/9/23 (=)]

 

BMW Group

 

NHTSA Asks BMW To Recall 14,000 Cars In The USA. According to Electrive, “BMW recalls over 14,000 hybrid electric cars in the US. The affected vehicles of type iX, i4 and i7 were manufactured with an electronic control unit for the battery pack that could cause a loss of power due to a software issue. According to a document from the US National Highway Traffic Safety Administration (NHTSA), 5,389 2022 and 2023 model-year iX vehicles are affected, spread across all engine options offered (xDrive40, xDrive50 and iX M60). More decisive was the production date: all cars were manufactured between 4 February 2021 and 28 October 2022. In the case of the i4, there are 8,659 vehicles from the production period of 17 March 2021 to 26 October 2022. Once again, all drive variants eDrive35, eDrive40 and i4 M50 are affected. In the case of the i7, only 38 all-wheel drive i7 xDrive60s built between 22 February 2022 and 27 October last year are affected.” [Electrive, 1/8/23 (=)]

 

Ford Motor Co.

 

US: Ford Tripled BEV Sales In December, Doubled In 2022. According to Inside EVs, “In December, the total sales of Ford and Lincoln vehicles in the United States increased by over 3 percent year-over-year to 179,279. Nonetheless, the year 2022 ended below 2021 level. Results in December and in 2022: Ford sales: 172,013 (up 2.7%) and 1,780,978 (down 2.1%) Lincoln sales: 7,266 (up 17.3%) and 83,486 (down 4.0%) Total sales: 179,279 (up 3.2%) and 1,864,464 (down 2.2%) The most important news is that Ford significantly increased its battery electric vehicle (BEV) sales and become the second largest player in the country last year.” [Inside EVs, 1/7/23 (=)]

 

Ford, SK Cancel Turkey Battery Joint Venture Plan, Daily Reports. According to Bloomberg, “Ford Motor Co. and SK Innovation Co.’s battery unit canceled plans to build an electric-vehicle battery plant in Turkey amid rising global interest rates and weaker EV demand in Europe, the Korea Economic Daily reported. The two companies recently withdrew an initial accord that was signed in March 2022, the paper said Monday, citing unidentified sources. The plant was slated to start operation as soon as 2025 with annual production capacity of 30 to 45 gigawatt hours and was part of a push by Ford to produce 2 million electric vehicles a year by 2026. In a text message response to Bloomberg News, SK On said it hasn’t decided whether to stop negotiations with Ford on setting up the joint venture in Turkey.” [Bloomberg, 1/8/23 (=)]

 

SK On Says It Is Undecided Whether To Proceed With Battery Venture With Ford, KOC. According to Reuters, “South Korean electric vehicle battery maker SK On said on Monday it has not decided whether to pursue a battery cell venture in Turkey with Ford Motor Co (F.N) and Koc Holding AS (KCHOL.IS), after signing a memorandum of understanding (MoU) in March. The Dong-A Ilbo daily newspaper earlier reported, citing an unidentified source, that SK On plans to scrap the idea due to a weak macro economic environment. ‘After signing the MoU in March 2022, we have been discussing the joint venture case in Turkey, but discussions have not been completed. The final decision whether or not to halt negotiations regarding the joint venture has not been made yet,’ SK On said in a statement. SK On is the wholly owned battery unit of SK Innovation Co Ltd (096770.KS), and counts Hyundai Motor Co (005380.KS), Volkswagen AG (VOWG_p.DE) and Ford Motor among its customers.” [Reuters, 1/8/23 (=)]

 

Geely

 

Volvo Set Another Plug-In Car Sales Record In December 2022. According to Inside EVs, “Volvo Cars report 72,663 global car sales in December, which is 13 percent more than a year ago. In 2022 the company sold 615,121 cars - about 12 percent less than a year ago, because of the supply chain issues and Covid-related lockdowns in China. According to Volvo, demand remains robust, which indicates that this year might be much better. Volvo plug-in electric car sales reached a new record level in December. The company sold 31,826 rechargeable cars - a third more than a year ago, and almost 44 percent of its total volume. We are especially happy to see a third consecutive monthly record for all-electric car sales - 14,588, which is over three times more than a year ago and over 20 percent of the total volume. This is a very important achievement for the company, which wants to become 100% electric in just several years.” [Inside EVs, 1/8/23 (=)]

 

General Motor Corp.

 

GM Is Trying To Convince The US Treasury That The Lyriq Is An SUV. According to Inside EVs, “The new tax credit rules have been frustrating for a lot of manufacturers. As you may be aware, from now on electric SUVs and pickups worth less than $80,000 are eligible for the full $7,500 tax credit. Meanwhile, everything else must fall under $55,000 to qualify. But what is considered an SUV? Do crossovers, the most popular segment of the global automotive market, fall under the SUV bracket or are they considered cars? The answer is vague. Specific trim levels of certain models, like the Volkswagen ID.4, are being classed as SUVs by the Treasury meanwhile other versions are not. The Tesla Model Y, for example, is an SUV if you choose to spec it with seven seats however it’s considered a car if you leave it with five. This is happening because the Treasury is using very basic methods for determining what they consider to be an SUV and what they consider to be a car. Anything that weighs over 6,000 lbs or has AWD is put in the $80,000 threshold. Hence only some versions of crossovers on the verge of that weight are getting in.” [Inside EVs, 1/8/23 (=)]

 

GM Disagrees With Treasury & IRS On What Is An SUV. According to CleanTechnica, “Quick — what is an SUV? The question is of vital importance because the new federal tax credit for electric cars sets the maximum sales price for cars and wagons at $55,000 and $80,000 for SUVs. The Environmental Protection Agency (EPA) and the Department of Energy (DOE) have created definitions for various categories of vehicles for decades because they are the ones who determine whether a vehicle is in compliance with federal exhaust emissions standards. Those standards vary depending on the size and weight of the vehicle, thanks to the so-called ‘footprint rule,’ a fiction fobbed off on the government by the automakers years ago that says larger, heavier vehicles are allowed to pollute more than smaller, lighter cars.” [CleanTechnica, 1/8/23 (=)]

 

SAIC-GM Open Second Electric Car Plant In China. According to Electrive, “SAIC-GM, General Motors’ joint venture with SAIC Motor, opened its second plant producing electric vehicles based on GM’s Ultium platform. The factory is at the company’s production site in the city of Wuhan in Central China and has started making electric cars already. In fact, SAIC-GM has been active in Wuhan since 2015 and already builds three New Energy Vehicles there, more precisely, the BEV versions of the Chevrolet Menlo and Buick Velite 6, as well as the PHEV version of the Buick model. However, the new factory is Ultium only and the first product being assembled there is the Buick Electra E5. SAIC-GM plan to launch the electric crossover in China in the first quarter of this year, as reported, and today said deliveries would begin within the first half of 2023. SAIC-GM added, the Electra E5 would adopt ‘local battery solutions tailored for China that support high thermal stability, low degradation and long battery life’. In other words, the company confirmed that the Buick EVs made in China rely on NMC battery chemistry with cells coming from CATL. In the North American Ultium models, GM relies on its own cells from the joint venture with LG Energy Solution.” [Electrive, 1/6/23 (=)]

 

GM Adds Buick To Electric Car Lineup In China. According to CleanTechnica, “If heads turned when General Motors launched the new Cabrio mini electric car in China last fall, they must be spinning now. The company is banking on its Buick branch to push sales of the new 5-seat Electra E5 SUV in China. That’s a pretty cheeky move considering the 124-year-old brand’s association with bygone times here in the US, but GM trendspotters seem to have spotted an opportunity. Building An Electric Car Brand For The Car Buyer Of The Future Bygone times or not, GM has been giving the Buick nameplate an electrification makeover in recent years, with an eye on the car buyer of the future. The company also notes that China happens to be the largest single market for its Buick brand globally, so there’s that. GM began producing Buicks in China under the SAIC-GM venture in 1998 and has sold more than 10 million since then. GM also revved up interest in its brand family last fall when SAIC-GM introduced the latest iteration of the Hong Guang MINIEV, the Cabrio two-seater, billing it as the first convertible EV in China. The Cabrio launch generated loads of media buzz for the already-popular Hong Guang brand.” [CleanTechnica, 1/7/23 (=)]

 

Honda Motor Corp.

 

The Future of Car Technology, as Seen at CES 2023 [Honda And Sony Reveal Electric-Car Brand Afeela]. According to The Wall Street Journal, “Honda HMC 2.97%increase; green up pointing triangle Motor Co. and Sony SONY 5.02%increase; green up pointing triangle Group Corp. said last year that they were joining forces to build electric vehicles with plans to begin selling a car later this decade. At CES, their joint venture, Sony Honda Mobility Inc., showed off a new prototype sedan and unveiled plans for a new brand, to be called Afeela. The brand name is meant to represent the act of feeling, which the venture says is at the center of the mobility experience, according to a description on the Sony Honda Mobility website. Sony Honda said it aims to develop a suite of technology to allow the car to pilot itself in certain urban settings. The prototype featured 45 cameras and sensors inside and out. Preorders for its first production model, which will be based on the prototype, start in the first half of 2025. The venture plans to start delivering the vehicle to customers in North America the following year.” [The Wall Street Journal, 1/7/23 (=)]

 

Mercedes-Benz AG

 

The Future of Car Technology, as Seen at CES 2023 [Mercedes-Benz Plans A Global Charging Network]. According to The Wall Street Journal, “Mercedes-Benz AG MBGYY 1.48%increase; green up pointing triangle revealed plans to build out its global network of electric-vehicle chargers, similar to Tesla’s popular Supercharger stations. As part of the plan, it intends to install roughly 10,000 high-power EV chargers worldwide, beginning this year in the U.S. and Canada. The Mercedes-Benz-branded network would allow the company’s customers to pre-book a charging space for their car, but would also be open to drivers of rival brands with compatible technology. ‘This is one of the building blocks that will perhaps persuade even more customers to jump into the EV side of the Mercedes-Benz,’ Chief Executive Ola Källenius said. By 2027, its network in North America is expected to total more than 400 hubs, providing 2,500 EV chargers.” [The Wall Street Journal, 1/7/23 (=)]

 

Renault-Nissan-Mitsubishi Alliance

 

Renault Considers Making Mass-Market EVs In India. According to Reuters, “Renault (RENA.PA) is considering building a mass-market electric vehicle in India, two people with knowledge of the ongoing review told Reuters, as part of a renewed push into a market where EV adoption is expected to grow quickly from a small base. The study by Renault underscores how the French automaker is pushing ahead with electrification plans even as it extends unresolved negotiations with its partner Nissan Motor (7201.T) about investing in an EV unit it plans to carve out from its other operations. It also points to the shifting perception of the auto market in India, which posted the fastest growth of any major market in 2022. EVs were on track to be less than 1% of car sales last year but the government has set a target of 30% by 2030 and has had recent success in attracting suppliers for international automakers, with a range of subsidies. Renault is studying launching a made-in-India electric version of its Kwid hatchback, the people told Reuters.” [Reuters, 1/8/23 (=)]

 

Stellantis

 

Carmaker Stellantis Seals Batteries Material Deal With Element 25. According to Reuters, “Carmaker Stellantis (STLA.MI) has signed a deal with Australian miner Element 25 (E25.AX) for the supply of manganese sulphite for batteries for its electric vehicles (EVs), the two companies said on Monday. The agreement marks another step in efforts by Stellantis to secure long-term supplies of raw materials essential for electric vehicles as carmakers prepare for a surge in global demand for EVs in the transition towards cleaner motoring. Stellantis, the world’s third-largest carmaker by sales, has previously signed deals with GME Resources (GME.AX) for supply of nickel and cobalt sulphate and with Vulcan Energy Resources (VUL.AX) and United States-based Controlled Thermal Resources (CTR) for lithium hydroxide. Based on the five-year binding agreement announced on Monday, Element 25 will supply Stellantis with high-purity manganese sulphate monohydrate to be used in battery packs.” [Reuters, 1/6/23 (=)]

 

Battery Materials Deal And More Biz Notes. According to Axios, “Auto giant Stellantis this morning announced a binding deal with Australia’s Element 25 to supply manganese sulfate for use in EV batteries, Ben writes. Why it matters: Carmakers are scrambling to secure raw materials to support their vehicle electrification plans. Zoom in: The five-year deal calls for shipments to begin in 2026. Stellantis — parent of Chrysler, Citroën, Jeep and more — is also making an equity investment in Element 25. Catch up fast: Two other business items of note... 🛢️ ‘QatarEnergy announced on Sunday the final investment decision on the $6 billion Ras Laffan Petrochemicals Complex with partner Chevron Pillips Chemical which is expected to be the largest of its kind in the Middle East.’ (Reuters) 🔋 ‘Britishvolt is in talks to sell a majority stake to a consortium of investors, offering a potential lifeline to the troubled UK battery start-up.’ (Financial Times)” [Axios, 1/9/23 (=)]

 

Stellantis Secures Manganese In Australia With Element 25. According to Electrive, “Stellantis has entered into a binding agreement with the Australian mineral exploration company Element 25 for the supply of manganese sulphate for electric vehicle batteries. The deal provides for deliveries starting in 2026 and has a term of five years. The partners have agreed on deliveries with a total volume of 45,000 tonnes of manganese sulphate. In the first year of 2026, the Australian company is to supply 5,000 tonnes, followed by 10,000 tonnes in each of the four subsequent years. The signed contract also includes options to extend the delivery period and increase the delivery volume. Element 25 says it will source the material from its Butcherbird project in Western Australia and plans to build a processing plant in the USA. Stellantis has announced that it will also make an equity investment in Element 25 as part of the agreement. Stellantis will support the construction of the US processing plant with 30 million US dollars.” [Electrive, 1/9/23 (=)]

 

The Future of Car Technology, as Seen at CES 2023 [Chrysler-Owner Stellantis Makes A Big Splash]. According to The Wall Street Journal, “Global auto maker Stellantis STLA 1.85%increase; green up pointing triangle NV used CES to unleash a torrent of news. It revealed a new fully electric pickup truck to be sold under its Ram brand, a model that is to go up against similar battery-powered truck offerings from chief rivals Ford F 2.69%increase; green up pointing triangle and Chevrolet. That truck is expected to debut in 2024. The car company also showed off a new cockpit design for its Chrysler-branded vehicles and an electric concept sedan for Peugeot, called the Innovation, that Stellantis says aims for 500 miles in battery range. The Peugeot concept also had an unusual feature: a tablet screen that replaces the traditional steering wheel to control driving.” [The Wall Street Journal, 1/7/23 (=)]

 

CES: Peugeot Inception Concept Rings In Next-Gen EVs. According to Electrive, “Peugeot has come to Las Vegas to present what designers call ‘a new era’ in the company’s electric car design. The Inception Concept previews Peugeot’s future EVs which will arrive in 2025 – then relying on a pure BEV architecture. Conceived to build the base for electric vehicles only, Stellantis’ STLA Large platform opens new freedoms for Peugeot designers as they now move free of constraints previously posed by ICE platforms doubling as EV architectures. Peugeot designed a low-laying luxury sedan as the Inception Concept at the Consumer Electronics Show in the US. The STLA Large platform holds the capacity to support 800-Volt technology, and Peugeot has two motors powering the Inception EV. The combined drive is set at about 500 kW. With a 100 kWh battery, the car could cover 800 kilometres, thanks to a low consumption of only 12.5 kWh/100km.” [Electrive, 1/7/23 (=)]

 

Tesla Inc.

 

Tesla Starts Hiring For Its ‘License To Print Money,’ Aka Lithium Refinery. According to Electrek, “Tesla is starting to hire for its new lithium refinery, which Elon Musk referred to as a ‘license to print money’ in Corpus Christi, Texas. In September 2022, we learned that Tesla has a plan to build a lithium refining facility on the Gulf Coast of Texas. At the time, we knew very little about the project other than Tesla was planning on moving fast with hope to start building in Q4 2022. A few months later, Tesla officially submitted the proposal for a project in Robstown, Texas, 25 minutes outside of Corpus Christi, with the purpose of ‘developing a battery-grade lithium hydroxide refining facility, the first of its kind in North America, as well as facilities to support other types of battery materials processing, refining, and manufacturing and ancillary manufacturing operations in support of Tesla’s sustainable product line.’” [Electrek, 1/7/23 (=)]

 

Tesla's New No. 2 Won Musk Over By Working Around The Clock. According to Bloomberg, “In a Twitter photo celebrating Tesla Inc. producing 3,000 Model Ys a week at its Texas factory last month, Zhu Xiaotong, who goes by Tom Zhu, stood smiling to the left of the large crowd in a hi-visibility vest and black cap imprinted with a white ‘T’ for Tesla. Zhu, who spearheaded the US carmaker’s Asia Pacific operations and oversaw Tesla’s factory in Shanghai become its most productive in the world, was brought over to Austin late last year to help run the company’s newest plant. Although Tesla hasn’t made any formal announcement and has yet to name him as an executive officer, it’s understood Zhu is now overseeing global automotive production, sales and service, a level of responsibility arguably second only to Chief Executive Officer Elon Musk. So who is Zhu, whose role is all the more important in light of Musk’s preoccupation with Twitter Inc. and shareholder demands for more transparency about who’s next in line after Musk?” [Bloomberg, 1/9/23 (=)]

 

Tesla Offers Discount In Singapore On EVs In Inventory. According to Reuters, “Tesla (TSLA.O) has begun offering discounts to electric vehicle buyers in Singapore who agree to purchase existing inventory of the Model 3 or Model Y, a company sales representative said on Monday. Tesla is offering a discount of $5,000 for electric vehicle purchasers who trade in an existing internal combustion vehicle and another $5,000 credit against the cost of the certificate to operate a car in Singapore. In addition, for qualified buyers who have a place for home installation, Tesla will provide the wall connector for charging, although the consumer has to pay for the cost of installation. The limited-term discounts in Singapore come just days after Tesla cut prices in China, South Korea, Japan and Australia.” [Reuters, 1/9/23 (=)]

 

Tesla Delivery Time Is Longer On Some China Models After Discounts. According to Reuters, “Tesla (TSLA.O) has indicated longer waiting times for potential buyers of some versions of the Model Y in China, signalling that price cuts announced on Friday could be stoking demand in the electric vehicle maker’s second-largest market. The waiting time for orders of the rear-wheel-drive and long-range versions of Model Y was a week longer on Monday than it had been on Friday, Tesla’s website showed. The wait as of Monday was two to five weeks on those models. The wait time for all versions of the Model 3 and the performance version of the Model Y remained at one to four weeks as of Monday.” [Reuters, 1/9/23 (=)]

 

Tesla Owners In China Protest Against Surprise Price Cuts They Missed. According to Reuters, “Hundreds of Tesla (TSLA.O) owners gathered at the automaker’s showrooms and distribution centres in China over the weekend, demanding rebates and credit after sudden price cuts they said meant they had overpaid for electric cars they bought earlier. On Saturday, about 200 recent buyers of the Tesla Model Y and Model 3 gathered at a Tesla delivery centre in Shanghai to protest against the U.S. carmaker’s decision to slash prices for the second time in three months on Friday. Many said they had believed that prices Tesla charged for its cars late last year would not be cut as abruptly or as deeply as the automaker just announced in a move to spur sales and support production at its Shanghai plant. The scheduled expiration of a government subsidy at the end of 2022 also drove many to finalize their purchases. Videos posted on social media showed crowds at Tesla stores and delivery centres in other Chinese cities from Chengdu to Shenzhen, suggesting wider consumer backlash.” [Reuters, 1/7/23 (=)]

 

Angry Tesla Owners Swarm Showrooms In China After Missing Price Cuts. According to Bloomberg, “Disgruntled Tesla Inc. owners swarmed showrooms in China over the weekend to complain about missing out on another round of price cuts as the company tries to boost sales in the world’s biggest electric-vehicle market. Posts on Chinese social media showed Tesla owners at different stores and distribution centers voicing their frustration about the cuts, which followed discounts made in October. Bloomberg News wasn’t able to independently verify the footage. Tesla didn’t immediately respond to requests for comment. At a Tesla Experience Center in Chengdu, the capital of southwest China’s Sichuan province, owners ransacked facilities and put up a handwritten list of four demands signed with their names and fingerprints, including a request for warranty extensions of two to four years and rebates for using Tesla Superchargers. Another video showed drivers singing the national anthem in a Tesla store, while one from Changsha in Hunan province featured people chanting ‘return our money!’” [Bloomberg, 1/9/23 (=)]

 

Toyota Motor Corp.

 

US: Toyota Plug-In Car Sales Decreased By A Third In 2022. According to Inside EVs, “Toyota Motor North America (Toyota and Lexus brands) reports sales of 536,744 vehicles in the United States during the fourth quarter of 2022, which is 13 percent more than a year ago. However, the 2022 result is nearly 14 percent lower than in 2021. Q4 results: Toyota: 476,652 (up 17%) Lexus: 60,092 (down 8%) Total: 536,744 (up 13%) It seems that it was a very challenging time for the Japanese manufacturer. Despite having 20 electrified vehicles on the market (HEV, PHEV, BEV, FCEV), the company noted a decrease in sales of xEVs.” [Inside EVs, 1/8/23 (=)]

 

VinGroup JSC

 

Bloomberg | Vietnam EV Maker Vinfast Delays First U.S. Car Deliveries. According to E&E News, “VinFast LLC, an electric carmaker backed by Vietnam’s richest man, delayed December vehicle deliveries to its first U.S. customers to this month because of holidays in America. The Vietnamese company, a unit of conglomerate Vingroup JSC, is also working out procedures with banks for customers to access loans, the company said in a statement. ‘We are currently signing sales contracts with our customers and will hand over vehicles in January according to their needs,’ the company said. The company said in late November that it needed to delay EV rollouts in Europe and Canada to early 2023 due to the global shortage of semiconductors.” [E&E News, 1/9/23 (=)]

 

Vinfast Releases Specs For VF 6 And VF 7 Electric Cars. According to Electrive, “Vietnam’s electric car manufacturer VinFast is lining up its next two models, following the VF 8 and VF 9. At CES, VinFast specified the VF 6 and VF 7, their new B and C segment electric cars. Vinfast expects to open reservations this coming March. The Vinfast V6 and V7 are electric crossovers that the company reportedly unveiled as design studies a year ago at CES 2022. The market launch had initially focused on the two large models, VF 8 and VF 9; now, the next two series EV will follow. First, the VF 6: At 4.29 meters, the model is about as long as a VW ID.3 – with a width of 1.82 meters and a height of 1.59 meters; these dimensions also correspond to the VW compact electric car except for a few centimetres. The wheelbase is 2.73 meters. The battery is stated at 59.6 kWh, but it is not specified whether this is a gross or net value.” [Electrive, 1/7/23 (=)]

 

Volkswagen Group

 

The Future of Car Technology, as Seen at CES 2023 [Volkswagen Debuts Electric Sedan]. According to The Wall Street Journal, “Volkswagen AG VOW -0.06%decrease; red down pointing triangle took the wraps off a new EV concept, called the ID.7., that had a digital camouflage exterior and paintwork that lights up. The auto maker described it as a near production version and said it is expected to have a battery range of about 435 miles under European standards. The concept version of the ID.7, one of 10 new EV models VW says it plans to launch by 2026, came equipped with a 15-inch infotainment screen and a number of tech features, including an augmented-reality display. It showcased tech that can detect when a driver is approaching the car and begin cooling or heating the vehicle depending on the exterior temperature. The production version of the ID.7 will be shown in the second quarter, VW said.” [The Wall Street Journal, 1/7/23 (=)]

 

Volkswagen ID.4 Now 18% Of Volkswagen USA Sales! According to CleanTechnica, “Volkswagen of America has released its 4th quarter 2022 sales numbers and its full-year 2022 sales numbers. The German automaker also highlighted that 6.8% of Volkswagen’s 2022 sales in the USA were EV sales (all ID.4 sales, as the ID.4 is the only electric vehicle Volkswagen sells in the country). The thing is: there’s a much bigger stat Volkswagen could have highlighted! In the 4th quarter, the Volkswagen ID.4’s share of Volkswagen of America sales was a whopping 18.2%! The ID.4 had 4,055 sales, a sizable chunk of Volkswagen’s 22,303 total sales in the 4th quarter. That 4,055 4th quarter result also meant that the ID.4 was Volkswagen’s second best selling model in the USA. Only the Tiguan beat it, at 7,740 quarterly sales. There’s a third highlight for the model as well. It had 171.4% growth year over year in the 4th quarter. That’s just barely ahead of the Arteon’s growth (171.3%) and only trails the Golf R’s growth (3,150%), but the Golf R doesn’t really count, going from 2 sales in Q4 2021 to 65 sales in Q4 2022.” [CleanTechnica, 1/7/23 (=)]

 

US: Audi Consistently Increases Electric Car Sales (Q4 2022 Results). According to Inside EVs, “During the fourth quarter of 2022, Audi sold in the United States 54,054 cars, which is 63 percent more than a year ago. Despite this outstanding growth, the annual result remained negative at 186,875 (down almost 5 percent year-over-year). Meanwhile, the German premium brand significantly increased battery electric vehicle (BEV) sales. In Q4, Audi sold 4,257 BEVs, which is 33 percent more than a year ago and 7.9% of the total volume.” [Inside EVs, 1/8/23 (=)]

 

 

Electric Vehicles

 

EV Sales & Transition

 

Can The Transition To EVs Break The Cycle Of Automotive Inequity? According to CleanTechnica, “The dream of the automobile on the open road has long been integral to the US psyche. For many low-income and underrepresented groups, though, automobiles have been symptomatic of decades of inequality — different systems for loans and borrowing, suspicion and contempt from law enforcement, and generational inability to transfer wealth. As the era of the electric vehicle (EV) enters mainstream US society, however, automotive inequity need not continue. In fact, in the same way that consumer demand is reshaping the automotive industry through heightened expectations, so, too, can the transition to EVs recreate what it means to purchase, own, and drive on US roads across demographic groups.” [CleanTechnica, 1/8/23 (+)]

 

EV Infrastructure

 

How Carmakers Are Crafting The EV-Charging Experience. According to E&E News, “Mercedes-Benz wants to build 400 electric vehicle charging plazas across North America, becoming the latest automaker to wager that relevancy in the EV age means putting your name on the charging block. The network, announced Thursday at the CES technology show in Las Vegas, adds Mercedes-Benz Group AG to a roster that includes General Motors Co., Volvo and Rivian Automotive Inc. — and of course Tesla Inc., which predates them all. If all the Tesla followers make good on their plans, by the end of the decade tens of thousands of public charging points across North America will be linked to car companies. The carmakers’ actual role in the charging experience is minimal, but they share a common intent: building trust in the charging network in general, and their brand in particular. ‘They recognize that they want to create an experience that’s going to compete in the marketplace,’ said Ben Prochazka, executive director of the Electrification Coalition, a nonprofit EV advocacy group. He added that Mercedes, which trades on a luxury image, ‘is demonstrating that premium brand, but in an electric way.’ All of these charging networks follow the playbook of Tesla, which since the company’s early days has created a premium experience for its drivers through its Supercharger network.” [E&E News, 1/9/23 (=)]

 

EV Resources & Technology

 

Why You Might Want A Heat Pump In Your Electric Car. According to The Washington Post, “Last January, just days after the start of the new year, a sudden snowstorm left hundreds of drivers stranded on a 40-mile stretch of Interstate 95 in Virginia. The commuters — which included Sen. Tim Kaine (D-Va.) — were stuck for more than 24 hours, turning their engines on and off to keep warm, layering the clothes they had, and even searching for sustenance from a nearby bread truck. Eventually, after an ordeal that stretched over a chilling night, emergency crews cleared the accidents and freed cars that had frozen to the roadway. Everyone went home. But the incident provoked anxiety among those worried about an all-electric future. What if, they wondered, all the cars had been battery-powered? Would their drivers have made it through with enough battery life to drive away? As frigid temperatures sweep across the country once again — and motorists from Buffalo to Seattle have contended with snow and ice — electric cars are facing fresh scrutiny. Lithium-ion batteries perform more sluggishly in cold temperatures, cutting into an electric car’s range when temperatures drop close to freezing. (For what it’s worth, gas-powered cars also don’t perform perfectly in the cold.)” [The Washington Post, 1/7/23 (+)]

 

 

Advocacy

 

Transmission Is A Highway. According to Politico, “NextGen Highways announced today it secured funding from Bill Gates’ Breakthrough Energy to develop a national and state-level coalition for building new renewable electric transmission infrastructure in existing public rights-of-way. The new initiative — which sprang from a public-private collaboration in Minnesota and backs co-locating transmission infrastructure with existing highways and other rights-of-way — will begin developing the national coalition to examine law or policy changes, as well as within targeted states, in the first quarter of the year. A feasibility study last year in coordination with the Minnesota Department of Transportation found buried high-voltage, direct current transmission can be cost effective and that there is potential to be sited in interstate and highway ROWs.” [Politico, 1/9/23 (=)]

 

 

States & Local

 

Maine

 

Sparse Chargers Hinder Electric Vehicle Use In Aroostook County. According to Bangor Daily News, “Electric vehicles may be catching on, but power costs and sparse chargers are keeping them out of most Aroostook County garages. Electric vehicles have grown in popularity because they use no gasoline, emit few emissions and get better mileage than gas- or diesel-powered cars. Electric vehicle use statewide has more than doubled since 2020, with 8,594 of them registered in Maine as of October. Of those, only about 1 percent, or 99 vehicles, belong to people living in Aroostook County. Gas prices topping $5 per gallon this summer drove many to consider alternatives, but for Mainers already grappling with inflation and heating costs, new utility hikes will spike the cost to run an electric vehicle.” [Bangor Daily News, 1/9/23 (=)]

 

Rhode Island

 

R.I. Must Accelerate Transportation Emission Cuts To Hit 2030 Target, Advocates Say. According to Energy News Network, “Rhode Island is not on track to hit its greenhouse gas reduction target in 2030, and a primary reason, advocates say, is transportation emissions. Transportation accounts for the largest share of the state’s greenhouse gas emissions, at nearly 40%, according to the state Department of Environmental Management’s latest greenhouse gas inventory. And yet, said John Flaherty, deputy director of Grow Smart RI, ‘We are still spending hundreds of millions of dollars to expand highway capacity.’ He is among a growing number of advocates calling for the state to get much more aggressive about investing in mass transit and other transportation emissions mitigation measures. The trend in those emissions has been up and down over the last decade, according to the emissions inventory, which noted that ‘significantly more zero-emission vehicles across weight classes will be required to meet Act on Climate emission reduction mandates.’” [Energy News Network, 1/9/23 (=)]

 

Tennessee

 

Tennessee Seeing Influx Of Automotive Jobs. According to Southern Standard, “In the middle of the last century, Tennesseans migrated north for jobs in the auto industry. In the present century, those jobs are surging into Tennessee, thanks to an extraordinary mix of favorable forces. ‘There has been a rush of interest toward Tennessee,’ Stuart McWhorter, the state’s commissioner of Economic and Community Develop-ment, told McMinnville Rotarians and their guests Thursday. Many of the multi-million-dollar industrial placements have come from foreign companies attracted by Tennessee’s central location, mild climate, low taxes, business-friendly culture and skilled workforce, he explained. The Volunteer State has emerged as a national leader in electric vehicle (EV) manufacturing and building the essential parts for those cars and trucks. The Ford Blue Oval project brings a multi-billion dollar investment to a rural part of West Tennessee, along with thousands of high-skilled, high-paying jobs, the Rotary speaker noted. At the same time, the international business giant LG is making an historic, $3.2 billion commitment in placing an EV battery plant near Clarksville, creating 860 new jobs. An American company is standing up an EV battery component plant near Chattanooga. Those and other auto-related installations will be drawing in smaller industries and vendors that will supply needed parts and support services, McWhorter emphasized.” [Southern Standard, 1/8/23 (=)]

 

 

International

 

China

 

Developing Nations Aren’t Ready For EVs—Unless They Are Made In China. According to The Wall Street Journal, “With government subsidies, Chinese EVs are emerging as price leaders in Southeast Asian nations where Japanese companies like Toyota Motor Corp. and Isuzu Motors Ltd. have long controlled most of the automotive market. That is a contrast with developed nations like the U.S., where EVs are generally sold to those who can afford to pay extra for the environmental halo. Chinese EV makers are bringing to the developing world the benefits of manufacturing scale that they built back home with state support. For more than a decade, China has backed the production of smaller, affordable EVs and their most expensive component, batteries. In 2022, China accounted for more than half of EVs sold globally. In Korat, a Thai regional center northeast of Bangkok, the fresh black paint and large windows of a newly built Great Wall Motor Co. GWLLY 1.01%increase; green up pointing triangle dealership stand out on a strip of highway lined with older-looking showrooms offering Nissans and Fords. With a less-affluent population, ‘Thailand and other emerging nations in Asia have different requirements for EVs than the U.S.,’ said Hirotaka Uchida, head of the Southeast Asia automotive business at management consulting firm Arthur D. Little. Chinese manufacturers are showing that they are able to play to the need for affordability, he said.” [The Wall Street Journal, 1/9/23 (=)]

 

Germany

 

Over One Million Purely Electric Cars Now On German Roads. According to Electrive, “The German Institute for Economic Research (DIW) has reported that the mark of one million pure electric cars in Germany has been crossed. According to the report, the mark was passed in the new record month of December 2022. In the last month of 2022, Germany’s old – higher – environmental bonus and innovation premium was still valid, and 104,325 new electric cars were newly registered. The DIW says that the reduction in the electric car subsidies as of the New Year accounts for the strong increase in December. As of January this year, an electric car purchase came with a maximum of 4,500 euros from the state, whereas up until the end of last year, the subsidy was 6,000 euros plus the manufacturer’s share, which is half of the state’s support. The one million mark reached accounts only for purely battery electric cars and not plug-in hybrids recorded in December. As it stands, PHEVs also set a record in December, as the environmental bonus for these motor types was abolished completely at the turn of the year.” [Electrive, 1/9/23 (=)]

 

EVs Take 55% Of The German Auto Market In December! According to CleanTechnica, “The tide has turned in the electrification of the German auto market, with plugin electric vehicles taking the majority of sales for the first time in December. Plugins took 55.4% of the month’s passenger auto sales, with full electrics taking a third (33.2%) and plugin hybrids taking over a fifth (22.2%). Plugless hybrids took 12.8%, leaving less than a third of sales for combustion-only autos (31.8%). Overall auto volumes in December were 314,318 units, up some 38% on December 2021. 2022’s total auto sales were 2.65 million units, up just 1.1% from 2021. December’s overall bestselling vehicle (of any kind) was the Tesla Model 3 with 9,566 registrations.” [CleanTechnica, 1/8/23 (=)]

 

United Kingdom

 

UK: EV Sales Surged In December 2022, Tesla Takes #1 And #2 Spot. According to Inside EVs, “In December, new passenger car registrations in the United Kingdom increased by 18 percent year-over-year to 128,462. It was the fifth consecutive month of growth, however, it was not enough to offset the previous declines, and the year 2022 closed with 1,614,063 units, 2 percent less than 2021. Meanwhile, plug-in electric cars ended the year with a splash. The Society of Motor Manufacturers and Traders (SMMT) reports 50,651 new passenger plug-in car registrations in December (up 41 percent year-over-year). That’s one of the best results ever. Moreover, the market share increased significantly to a new record level of 39.4 percent. The recent surge is mostly a result of the quickly growing all-electric car segment, which became the UK’s second most popular powertrain option after gasoline vehicles. In December, a record number of 42,284 BEVs were registered, which translated into a record market share of 32.9 percent.” [Inside EVs, 1/8/23 (=)]

 

UK’s EV Share Hits 40% In December – Tesla Model Y Overall Bestseller. According to CleanTechnica, “The UK’s auto market saw plugin electric vehicles take 39.4% share of new sales in December, a new record, up from 33.2% year on year. Full electrics alone took almost a third of the market. Overall auto volumes were up 18% year on year in December, but still down compared to pre-2020 norms. The Tesla Model Y was the UK’s overall 3rd best selling vehicle in 2022, and the top seller in December. December’s combined plugin share of 39.4% comprised 32.9% full battery electrics (BEVs), and 6.5% plugin hybrids (PHEVs). The respective shares in December 2021 were 33.2% plugins, 25.5% BEV, and 7.7% PHEV. In terms of volumes, December saw BEVs grow 1.53x from a year ago, to 42,284 sales. PHEV volumes were essentially flat year on year, with 8,367 sales.” [CleanTechnica, 1/9/23 (=)]

 

 

 

Responses to this email are not monitored

 

For distribution-related questions, please contact Erin Auel (eauel@partnershipproject.org)

 

For any other questions or comments, please contact Mitch Dunn (mitch@beehivedc.com)