Congress

 

White House’s EV Tax Credit Implementation In The Spotlight — “Lawmakers on both sides of the aisle are scrutinizing how the Biden administration handles new incentives for buying electric vehicles, with the first formal guidance on which cars qualify for subsidies expected this week. Senators who tossed critical support behind tax credits that can knock up to $7,500 off the price tag of electric and hydrogen-powered vehicles have seized on budget hearings this month to press for their views on implementation. Sen. Joe Manchin III said last week he’s concerned with the guidance expected from the Treasury Department on requirements that a portion of minerals used in vehicles’ batteries be sourced from friendly nations. The West Virginia Democrat held off for months on supporting the budget reconciliation package that ultimately spent $270 billion on tax credits aimed at boosting clean energy and cutting greenhouse gas emission. Manchin got on board after changes including conditioning half the $7,500 credit on a portion of minerals being extracted or processed in the U.S. or in a country where a free trade pact with the U.S. is in effect. Minerals recycled in North America can also qualify. Manchin pressed Treasury Secretary Janet L. Yellen on what the department is planning during a Financial Services Appropriations Subcommittee hearing last week, emphasizing the importance of a distinct definition of ‘processing’ in the law. Processing refers to refining ‘critical minerals’ like lithium after they’ve been mined, and it’s a part of the supply chain that China dominates.” [Roll Call, 3/27/23 (=)]

 

Bipartisan Lawmakers Pressure Treasury Ahead Of EV Guidance — “Lawmakers from across the political spectrum are airing concerns ahead of an eagerly anticipated announcement from the Biden administration on who is eligible for electric vehicle tax incentives. Many of those worries come from those who believe the administration could try to stretch some definitions in its interpretation of last year’s landmark Inflation Reduction Act to try to allow more vehicles to get the credit — which is meant to help the United States and its trading partners. The Treasury Department said it will release new guidance this week on the EV tax credits, which can be worth up to $7,500 per vehicle. ‘I’m very much concerned,’ Senate Energy and Natural Resources Chair Joe Manchin (D-W.Va.), the climate law’s main architect, told reporters last week. Manchin has long touted the EV tax credit provisions contained in the Inflation Reduction Act as a way to incentivize companies to make more EVs and their parts in North America. He has been enraged by recent Biden administration actions that he sees as skirting the law. ‘We’ve had good conversations. I hope they understand,’ he said of administration officials. ‘We want to make sure that we develop as quickly as possible a supply chain here that we can count on, not the supply chains controlled by China.’” [E&E News, 3/28/23 (=)]

 

 

Federal Agencies

 

Department of Energy (DOE)

 

Stellantis & US DOE Announce Battery Workforce Challenge — “Stellantis and the US Department of Energy (DOE) are calling on budding engineers at vocational schools and universities to enter the ‘Battery Workforce Challenge’ this fall. It is a three-year team engineering competition that includes other training. The Battery Workforce Challenge does not only focus on fostering science, technology, engineering and math (STEM) degrees but also includes a more ‘hands-on’ project with an advanced battery design and development student competition series, for which the companies have invited universities and vocational schools from across North America to design, build, test and integrate an advanced electric vehicle battery into a future Stellantis vehicle. Competitor teams will then follow real-world industry milestones focused on battery design, simulation, controls development, testing, and vehicle integration and demonstration, which the initiators of the project say will help teach them valuable lessons, including ‘project management, communications, teamwork and problem-solving skills’.” [Electrive, 3/27/23 (=)]

 

Department of Transportation (DOT)

 

Carlson Nom To Senate — “Ann Carlson’s nomination to lead NHTSA was sent to the Senate on Monday after the White House first announced her nomination last month. Carlson has led the agency as acting administrator since September, and she previously served as NHTSA’s chief counsel. If the Senate confirms her, Carlson will replace former Administrator Steven Cliff, who left the agency last year to head the California Air Resources Board. Carlson helped secure, and now oversees, a 50 percent bump in resources for NHTSA under the 2021 infrastructure law, and her nomination comes amid soaring roadway fatalities.” [Politico, 3/28/23 (=)]

 

 

Manufacturers, Fleets, & OEMs

 

Ford Motor Co.

 

Ford CEO Says Battery Supply Is EV Production Constraint While 140kwh F-150s Roll Off The Line — “Ford CEO Jim Farley emphasized the necessity of building out a supply chain in the US for critical battery minerals, calling it the constraint to accelerating EV production. Meanwhile, the American automaker continues manufacturing massive batteries, upwards of 140 kWh, for its full-size electric truck, the F-150 Lightning. Imagine how many EVs could be produced by making smaller, more efficient models. Perhaps like an electric Maverick? Ford CEO claims battery supply is reason for constraints Ford jumped out of the gate in 2022, selling 61,575 electric vehicles in the US and becoming the second largest EV maker domestically behind Tesla. However, it also came at a price. Ford revealed last week it expects its EV business unit, Model e, to lose $3 billion this year after losing a combined $6 billion between 2021 to 2023. Farley said in an interview with Yahoo Finance, ‘batteries are the constraint here,’ as he went on to mention critical battery minerals like ‘both lithium and nickel are the key constraining commodities.’ The Inflation Reduction Act, passed last August, incentivizes sourcing and producing these minerals in North America or with the US’s free trade partners. However, as Farley goes on to explain:” [Electrek, 3/27/23 (=)]

 

General Motor Corp.

 

The Chevy Camaro’s Not Gone Forever, But The Next One Will Be Very Different — “I come not to bury the Chevrolet Camaro. Nobody should, really. Reports of the Camaro’s death are exaggerated, as General Motors prepares to mothball the sporty car — again — following the 2024 model year. The Camaro will be back, but the familiar nameplate is likely to return on a vehicle very different from the V8 coupe and convertible Chevy sells today. Brand boss Scott Bell virtually said as much this week: ‘This is not the end of Camaro’s story.’ Unlike Ford, which has devotedly kept the Mustang nameplate in continuous production since 1964, Chevrolet treats the Camaro not like it was made of glass, but as if it were in a case labeled ‘Break glass in case of Mustang.’ Chevy built the Camaro from 1966 through 2002, then let the nameplate lie fallow until the fifth generation went on sale in 2009 as a 2010 model. GM has sold 875,000 Camaros since 2009. Sales have slipped in recent years, but a sporty vehicle with a familiar name and design could fit nicely into GM’s future lineup of electric vehicles.” [USA Today, 3/28/23 (=)]

 

This Is How GM Will Convince You To Buy An Electric Car — “GM has launched a new educational tool called EV Live to answer customers’ questions about electric vehicles and how to charge them. The site is open to all—you can ask about charging, range, and even non-GM products, though they’re happy to discuss GM vehicles and technology. On evlive.gm.com, users can schedule a live session with a real person.” [Car and Driver, 3/27/23 (=)]

 

Lucid Group

 

Lucid Recalls Some Flagship Electric Vehicles At Risk Of Losing Power — “Lucid Group, Inc. is recalling several hundred electric vehicles due to a glitch that may cause its flagship model to lose power while being driven. The startup said flawed electrically activated switches could affect the 2022-2023 model years of the Lucid Air, triggering the recall of 637 vehicles, according to a filing with the National Highway Traffic Safety Administration. ‘This may lead to a loss of propulsion without pre-warning and may increase the risk of a crash,’ the company said in the filing, which was submitted to the regulatory agency on March 23. The Newark, Calif.-based company delivered 4,494 Lucid Air vehicles as of the end of last year. Lucid said in the filing that its service centers will update the vehicle software and replace the problematic switches for free. It didn’t immediately respond to a request for comment.” [Bloomberg, 3/27/23 (=)]

 

NIO Inc.

 

China's Nio Opens Trial For High-Speed EV Battery Swapping Stations — “Chinese electric vehicle (EV) maker Nio Inc (9866.HK) began trial operation on Tuesday of faster, more efficient battery swapping stations in China in its push to make battery swapping a viable alternative to rival EV makers’ rapid-charging technology. With capacity to store up to 21 battery packs each, Nio’s Power Swap Station 3.0 can speed up battery swapping to less than five minutes and lower the service cost per swap, Shen Fei, Nio senior vice president for power management, told reporters at an event in Shanghai last Thursday. The comments were embargoed for release on Tuesday. Tesla’s (TSLA.O) rapid-charging Supercharger allows EV users to top up vehicles to a range of 200 miles in 15 minutes. Battery swapping allows drivers to replace depleted packs quickly with fully charged packs, rather than plugging the vehicle in to a charging point. Swapping could help to ease the strain on power grids at peak times when drivers recharge, but industry analysts and executives expect it would only become feasible if batteries become more standardised.” [Reuters, 3/28/23 (=)]

 

Rivian Automotive Inc.

 

Rivian (RIVN) Bets On Employee Relocation To Boost EV Production At Plant — “Rivian (RIVN) is planning to boost EV production by moving some of its engineers closer to its Illinois factory, according to the Wall Street Journal. After producing 24,337 EVs last year, slightly missing its goal of 25,000, Rivian is not taking any chances this year. Rivian CEO RJ Scaringe said 2022 was a ‘challenging year’ as the young EV maker scaled production of four products, including the R1T electric pickup, the R1S SUV, and two versions of its electric van, at low volumes in a massive factory designed for 150,000-vehicle output when fully operational. As a result, Rivian’s losses swelled to over $6.7 billion in 2022 as the young electric vehicle maker balanced increasing production and cutting costs to drive efficiency. The woes continued this year, with Rivian recalling over 12,700 EVs earlier this year due to airbag deployment issues and the automaker revealing plans to raise over a billion in cash by selling green convertible notes.” [Electrek, 3/27/23 (=)]

 

Tesla Inc.

 

Ex-Tesla Worker's Atty Argues 'Plantation Mentality' In Retrial — “Counsel for a Black ex-Tesla worker who won a $137 million discrimination verdict against the automaker delivered openings Monday in a damages retrial, ordered after the overseeing judge found the jury’s award excessive, telling a new California federal jury that the factory where he worked had a ‘plantation mentality.’ A previous jury found in 2021 that Owen Diaz had been subjected to a racially hostile work environment at Tesla’s Northern California factory and hit the company with a $137 million damages verdict. U.S. District Judge William H. Orrick told Diaz he could take $15 million or a retrial on damages, putting the wheels in motion for the damages trial that kicked off Monday. At the start of opening remarks, a lawyer for Diaz told jurors that the case was about two different worlds. ‘On one hand, a futuristic company, making futuristic cars,’ said Bernard Alexander of Alexander Morrison & Fehr LLP. ‘On the other hand you have a plantation mentality occurring in the Tesla workplace, where African American employees are subjected to the N-word on a virtually daily basis.’ Diaz was also subjected to verbal and physical threats and attacks, his lawyer said.” [Law360, 3/27/23 (=)]

 

Tesla Offering 10,000 Free Supercharger Miles For End Of Quarter Push — “Tesla is offering 10,000 miles of free supercharging to buyers if they purchase and take delivery of a Model S or Model X by the end of the quarter, which concludes on March 31st. Those who do will enjoy plenty of unpaid fast-charging using the automaker’s excellent network of high-speed Superchargers. According to Electrek, while offering free supercharger miles is a common tactic Tesla uses to boost sales before a quarter ends, the automaker’s typical offer is only 2,000 miles. It’s unclear what has motivated Tesla to increase the incentive five fold to 10,000 miles, but it could be a combination of falling gas prices tamping demand for EVs and an uncertain economy that’s still searching for stability. As mentioned, the new incentive applies only if you are buying one of Tesla’s most expensive models, the Model S or Model X. Electrek estimates the 10,000 miles of supercharging is worth around $500 depending on where you live (the price of electricity varies by region). If that’s the case, this incentive seems somewhat paltry compared to the high-dollar price tags of these two EVs.” [Inside EVs, 3/27/23 (=)]

 

Tesla Offers 10,000 Free Supercharging Miles To Sell Model S/X By The End Of The Quarter — “Tesla is offering 10,000 free Supercharging miles to sell Model S and Model X vehicles by the end of the quarter. Over the years, Tesla has sporadically offered free Supercharging miles in order to help boost sales, especially during the end of quarters. With the recent price drops in the US and the new federal tax credit for electric vehicles, we thought that Tesla wouldn’t have much of a demand issue, but the automaker has decided to implement the incentive again. Electrek learned that Tesla employees are offering 10,000 free Supercharging miles to people taking delivery of a new Model S or Model X by the end of the month. While 10,000 free Supercharging miles might sound like a lot, the incentive is worth about $500, depending on your vehicle and market, since efficiency varies per vehicle and Supercharger prices vary per market. However, it is more than the 2,000 free Supercharging miles, which is Tesla’s usual incentive.” [Electrek, 3/27/23 (=)]

 

Toyota Motor Corp.

 

Electreon, Toyota And Deso Cooperate On Wireless Charging — “Israeli company Electreon is joining forces with Toyota and component manufacturer Denso to develop a vehicle receiver based on Electreon’s existing technology. The receiver will make it possible to retrofit electric vehicles with wireless charging capabilities. Moreover, the companies say they want to integrate ‘wireless technology into new cars released to the market’ and help shape ‘the standardization of wireless EV charging.’ The parties will sign a more detailed joint development agreement in the coming months. ‘This partnership will make wireless charging accessible to a diverse and wide range of drivers and will demonstrate the many benefits of wireless charging as a cost-effective clean solution for charging EVs as well as a catalyst in reducing EVs’ carbon footprint,’ says Electreon CEO and co-founder Oren Ezer. During the technology evaluation at Electreon’s headquarters in Beit Yanai, Israel, the Israeli compy showed of its know-how by wirelessly charging a RAV4- PHEV.” [Electrive, 3/27/23 (=)]

 

VinGroup JSC

 

VinFast Kicks Off Deliveries In Vietnam And The USA — “VinFast has launched deliveries of the VF 9 in Vietnam with the first 27 vehicles delivered to customers. The delivery came about a year after the official public introduction of the vehicle. At the same time, 45 VF 8 were delivered to US American customers. The six-seated VF 9 runs on a 300kW electric drive, providing a maximum torque of 620Nm on a 92 kWh battery pack. Ranges differ slightly for the Eco and Plus versions, maxing out at 438 km and 423 km, respectively. Following the initial delivery event, VinFats will now alert individual customers in Vietnam, who can either have the vehicle delivered at home or pick it up at a showroom. According to information from the end of last year, international deliveries of the VF 9 will follow soon after their home market. ‘Today’s VF 9 delivery event is the beginning of VinFast’s series of events that will be consistently held on a global basis,’ said Le Thi Thu Thuy, Vice Chairwoman of Vingroup and CEO of VinFast Holdings, adding: ‘We expect to export the VF 8 standard edition models to the U.S. and Canadian markets in April 2023 and expect to soon deliver the VF 5 Plus model to customers in the Vietnamese market. Following that, we expect to export the VF 9 and open reservation for the VF 6 and VF 7 in the coming months.’” [Electrive, 3/28/23 (=)]

 

Vinfast To Ship Longer-Range VF 8 EVs To The US, Larger VF 9 SUV To Follow — “Vietnamese EV maker VinFast is preparing to ship its longer-range VF 8 standard edition models to the US and Canada beginning next month. The larger, more powerful VF 9 SUV will follow ‘in the coming months’ according to the automaker. VinFast hit the ground running after vowing to end internal combustion vehicle production and unveiling the VF 8 and VF 9 electric SUVs at the LA Auto Show in 2021. The EV maker claimed within 48 hours of opening reservations for its new electric SUVs, the company was overwhelmed with 24,000 orders globally. VinFast moved quickly, delivering the first 100 models in September as it reiterated its intentions of becoming a global presence including in the US, Canada, and Europe. VinFast continued building momentum, shipping its first electric vehicles, a batch of VF 8 models, to the US in late November.” [Electrek, 3/27/23 (=)]

 

 

Electric Vehicles

 

Mapping EV Charging Needs — “State and local governments seeking federal dollars for EV chargers have a new tool to help them align their plans with the Biden administration’s equity goals. Volta is announcing today it is expanding its PredictEV mapping tool, which uses local travel patterns to determine where new chargers would be most utilized, to include federal data on disadvantaged communities. Brandt Hastings, Volta’s chief commercial officer, told ME that the tool can visualize EV adoption down to the block level, ensuring federal dollars won’t subsidize stranded assets. The new dataset will help municipalities in their applications for the $700 million Charging and Fueling Infrastructure program, which opened earlier this month and will fund mostly smaller charging stations in local communities, rather than along highways. The Biden administration has said equity will be a major factor in evaluating the applications, in line with its Justice40 initiative to invest in communities disproportionately burdened by pollution.” [Politico, 3/28/23 (=)]

 

 

Advocacy

 

New UAW Leader Tells Automakers: 'Our Membership Is Fed Up' — “Shawn Fain, the new president of the United Auto Workers union, on Monday said workers at the Detroit Three automakers are ‘fed up with the status quo’ and prepared to fight in contract talks this fall. ‘You’re going to see a lot more aggressive UAW,’ Fain told reporters late Monday after a day-long meeting with local union officials. … ‘Our members are not getting their fair share,’ Fain said during a briefing with reporters when asked about the potential for a strike. ‘If these companies don’t change their position we will use every resource we have.’ … The Detroit automakers have reported robust profits during the past four years from their North American operations, mainly thanks to the pickup trucks and SUVs that UAW members assemble. However, North American operations for the Detroit Three automakers are under pressure as they pour billions into electric vehicles and battery production. All three companies have moved to cut costs, reducing salaried staff or, in Stellantis’ case, idling a U.S. assembly plant. Securing UAW jobs as the Detroit automakers shift toward electric vehicles is a ‘top priority,’ Fain said. ‘We are already behind in this battle.’” [Reuters, 3/27/23 (=)]

 

Business Groups, Automakers Call For Fix To 'Broken' Permitting System — “Hundreds of business groups, including major automakers, signed on to a letter led by the U.S. Chamber of Commerce Monday urging Congress to reduce bottlenecks for companies starting energy and infrastructure projects. So-called permitting reform is one of the few policy areas in which Republicans and Democrats agree change is necessary, given the 4.5 to 7.5-year timeline for new projects to receive federal permits and the increasing mineral demands of the clean energy economy. However, the two parties rarely agree on which policy to pass to fix the issue. The Chamber’s letter comes as the U.S. House prepares this week to take up a Republican-led energy package that would include some such reforms, including provisions that would shorten timelines for environmental reviews and limit the window for legal challenges to permitting decisions. The GOP package faces an uphill battle in the Democrat-led Senate, with the exception of the permitting reform proposals, which could be provide the starting point for a bipartisan compromise.” [The Detroit News, 3/27/23 (=)]

 

 

States & Local

 

Georgia

 

Ga. Lawmakers Approve Bill To Tax Electric Vehicle Power — “Georgia lawmakers on Monday gave final approval to new legislation for regulating and taxing electricity as motor fuel, sending it to the governor’s desk for his signature with two days left in the state’s legislative session. The Georgia Senate approved Senate Bill 146 with a 51-4 vote, shortly after an amended version was passed by the Georgia House on a 175-1 vote, as reported by the legislative bodies. The bill would authorize the state’s Agriculture Department to oversee the regulation of electric vehicle charging stations and provide for the taxation of electricity used to fuel electric vehicles. It would require registration and inspection of electric vehicle charging stations and allow for the sale of electricity for vehicles by the kilowatt-hour. An excise tax of 2.84 cents would apply to each kilowatt-hour. The legislation sets out limitations on the ownership, operation and maintenance of electric vehicle charging stations by electric utilities, as well as standards for rates, terms and conditions of service by an electric utility in certain instances. Georgia’s move toward renewable energy includes significant investment from electric vehicle manufacturers and affiliated support companies. Rivian plans to build a $5 billion electric vehicle manufacturing facility east of Atlanta, and Gov. Brian Kemp recently announced the addition of a $175 million solar materials plant north of the city.” [Law360, 3/27/23 (=)]

 

Georgia Senate Gives Final Approval To Bill That Would Tax Electricity For Vehicles — “The Georgia Senate Monday approved a bill that would pave the way for taxing the power used by electric vehicles. Senate Bill 146 would also regulate electric-vehicle chargers much as the state regulates gasoline pumps. And it would allow businesses such as convenience stores to sell electricity by the kilowatt hour. The House of Representatives approved the measure by a vote of 175-1. The Senate agreed to the House’s changes to the bill by a vote of 51 to 4. It now heads to Gov. Brian Kemp for his signature. The legislation comes as the country prepares for a boom in electric vehicles — from about 3 million on the road in 2021 to 48 million by 2030. It also comes as Georgia seeks to be a national leader in electric-vehicle manufacturing. A legislative panel spent months studying how Georgia can prepare for that boom. SB 146 begins to address it. The bill would require the state Department of Agriculture to regulate electric-vehicle charging stations. Among other things, the department would test chargers to ensure customers get the electricity they pay for. SB 146 also would allow businesses to sell electricity for vehicle charging by the kilowatt hour — a move advocates say is needed to encourage the private sector to install chargers as electric vehicles proliferate.” [The Atlanta Journal-Constitution, 3/27/23 (=)]

 

 

International

 

Canada

 

Ng Pledges Review Of Canadian Mining Firm Eligibility Rules — “International Trade Minister Mary Ng says it’s ‘not acceptable’ for foreign mining firms to masquerade as Canadian. ‘Having just a postal box and pretending that you’re a Canadian company does not make you a Canadian company,’ Ng told the House international trade committee Monday. She said she will review the legal definitions to address concerns foreign firms could take advantage of lax rules to access government financial support … Details: Ambitious climate goals and renewed scrutiny of authoritarian regimes have wealthy countries redrawing raw mineral supply chains to support electric vehicles and clean technologies — throwing new tranches of funding for miners to grab. The mining industry praised Ottawa’s 2022 budget for containing the most significant financial commitments from a government to date — until the IRA’s incentives ‘made it look like a drop in the bucket.’ A new 30 percent Critical Mineral Exploration Tax Credit was among the suite of budgetary measures Freeland announced last year for the Canadian mining industry.” [E&E News, 3/27/23 (+)]

 

European Union

 

EU Takes Key Step Toward Ending Era Of Combustion-Engine Cars — “European Union officials signed off on a deal that effectively ends the sale of most new combustion engines from 2035 after Germany received provisions for how certain high-end vehicles may get a future exemption if they run solely on e-fuels. Energy ministers from the bloc’s 27 member states formally adopted rules Tuesday that will mean carmakers will have to slash CO2 emissions to zero over the next 12 years. Germany dropped its opposition to the plans over the weekend after a deal was reached with the EU’s executive arm on how cars running entirely on e-fuels will be allowed to count toward the bloc’s zero climate targets. The last-minute deal is a concession to high-end sports car brands like Germany’s Porsche, but is expected to have little effect on the plans of most major manufacturers. ‘There is no doubt about the direction of the car industry as a whole,’ Swedish energy minister Ebba Busch told reporters Tuesday. ‘The way I see it, Sweden now reinforces its competitive advantage, while Germany may be buying more time to catch up.’” [Bloomberg, 3/28/23 (=)]

 

EU Countries Approve 2035 Phaseout Of CO2-Emitting Cars — “European Union countries gave final approval on Tuesday to a landmark law to end sales of new CO2-emitting cars in 2035, after Germany won an exemption for cars running on e-fuels. The approval from EU countries’ energy ministers means Europe’s main climate policy for cars can now enter into force - after weeks of delay caused by last-minute opposition from Germany. The EU law will require all new cars sold to have zero CO2 emissions from 2035, and 55% lower CO2 emissions from 2030, versus 2021 levels. The targets are designed to drive the rapid decarbonisation of new car fleets in Europe. The European Commission has pledged, however, to create a legal route for sales of new cars that only run on e-fuels to continue after 2035, after Germany demanded this exemption from the ban.” [Reuters, 3/27/23 (=)]

 

EU Reaches Deal On Service Stations For EVs, Alternative Fuels — “The European Union on Tuesday reached a provisional deal on the deployment of more service stations for cars running on electricity and alternative fuels as the bloc seeks to reduce the carbon footprint of its transport sector. ‘The agreement will send a clear signal to citizens and other stakeholders that user-friendly recharging infrastructure and refuelling stations for alternative fuels, such as hydrogen, will be installed throughout the EU,’ Andreas Carlson, the Swedish minister for infrastructure and housing, said in a EU statement. Sweden currently holds the bloc’s presidency. Further commenting on what he called a ‘provisional political agreement’ between the Council and the European Parliament, Carlson added: ‘Citizens will no longer have a reason to feel anxious about finding charging and refuelling stations to their electric or fuel-cell car.’ He added it was the bloc’s aim to make more recharging capacity available on the streets in urban areas as well along the motorways.” [Reuters, 3/28/23 (=)]

 

EU Making Moves — “EU diplomats on Monday agreed on legislation banning the sale of polluting vehicles across the bloc by 2035, handing the file to energy ministers for final approval on Tuesday, the Swedish Council presidency confirmed. Joshua Posaner has more. … The European Commission is set to publish legislation in the fall that would allow the use of synthetic e-fuels in combustion engines even though they do emit some CO2, which violates the 2035 zero-emission standard. The Commission promised Germany that it would find a way in the future to save the combustion engine from a de facto ban, persuading Berlin to drop its opposition to the final approval of the 2035 measure.” [Politico, 3/28/23 (=)]

 

Euro 7 Emissions Proposals, The Sequel Europe's Carmakers Don't Want To See — “European carmakers are fighting back against proposed emission regulations they argue are too costly, rushed and unnecessary, but which the European Commission says are needed to cut harmful emissions and prevent a repeat of the Dieselgate scandal. European Union countries and lawmakers will negotiate ‘Euro 7’ proposals this year on tighter limits for car emissions - for diesel cars, but not petrol - and for heavy-duty trucks and buses, including nitrogen oxide and carbon monoxide. The EU has progressively tightened limits since ‘Euro 1’ in 1992. The Commission’s proposal widens real-driving emissions (RDE) testing and adds continuous testing of emissions via an on-board monitoring system. Euro 7 would take effect in mid-2025 for cars and in mid-2027 for trucks and buses. The rules would also cover tyre and brake emissions. Executives including Stellantis (STLAM.MI) CEO Carlos Tavares say the rules are ‘useless’ while carmakers invest tens of billions of euros in electric vehicles (EVs) and start phasing out fossil-fuel cars.” [Reuters, 3/27/23 (=)]

 

In Renewed Push, Spain To Tender EU Funds For EVs, Batteries In July — “Spain plans to launch two tenders simultaneously around July to pick the recipients of 2 billion euros ($2.16 billion) of EU funds for electric vehicle (EV) and battery production it had failed to allocate last year, a senior government official said. Jose Maria Lopez, the commissioner in charge of the aid programme known as PERTE, told Reuters on Monday the final calendar should be agreed on this week but the government’s intention was to launch the dual tender after listening to the sector’s demands. That represents an accelerated, broader push after the government said earlier it was planning to launch two separate tenders, one in June for battery cell makers and another in September for EV production. Volkswagen (VOWG_p.DE) has already said it will submit a new request for European Union pandemic relief funds in Spain as it weighs up whether to produce additional EVs there, while other carmakers, such as Renault (RENA.PA) and Ford (F.N), are also considering applying.” [Reuters, 3/27/23 (=)]

 

Japan

 

The New U.S.-Japan Battery Materials Pact — “The U.S. and Japan have struck a deal on critical battery minerals that could enable Japanese companies to capture some benefits of EV subsidies in the U.S. climate law, Ben writes. Why it matters: It’s an effort to navigate the delicate diplomatic and legal restrictions in the sweeping statute. How it works: Per U.S. trade officials, the nations would ‘refrain from imposing export duties on critical minerals exported to the other country.’ They will also confer on ‘domestic measures to address non-market policies and practices.’ The intrigue: The law tethers EV subsidies to sourcing requirements meant to curb reliance on China and boost the domestic supply chain and materials from allies. Part of the incentives require critical battery materials to be sourced, processed or recycled domestically or from free-trade partners. That has rankled allies that don’t have formal free-trade pacts with the U.S., prompting efforts to craft new battery-focused agreements. Deals with European nations could be next. What they’re saying: Via the FT, Japanese trade minister Yasutoshi Nishimura said the deal will likely enable EVs made with metals processed in Japan to be eligible for climate law tax incentives. Katherine Tai, the U.S. trade representative, said in a statement it’s part of U.S. work with partners to ‘strengthen supply chains for critical minerals, including through the Inflation Reduction Act.’” [Axios, 3/28/23 (=)]

 

US, Japan Strike Deal On Supply Of Minerals For EV Batteries — “The US agreed to boost cooperation with Japan on critical mineral supply chains and to expand access to tax breaks as President Joe Biden aims to counter China’s dominance of the electric vehicle battery sector. Following the pact, EVs that use materials that have been collected or processed in Japan will be eligible for incentives under the US Inflation Reduction Act, Japanese trade minister Yasutoshi Nishimura said Tuesday in Tokyo. ‘This announcement is proof of President Biden’s commitment to building resilient and secure supply chains,’ US Trade Representative Katherine Tai said in a statement. ‘Japan is one of our most valued trading partners.’ The deal is similar to an agreement Washington has been negotiating with the European Union which would extend access to some of the as much as $369 billion in handouts and tax credits available over the next decade under the IRA, in areas including wind, solar and electric vehicles.” [Bloomberg, 3/28/23 (=)]

 

AP | U.S., Japan Reach Deal On Vital Minerals For EV Batteries — “Japan and the United States have reached an agreement on trade in critical minerals for electric vehicle batteries, part of an effort to diversify supply chains and reduce reliance on China for strategically important resources. The deal due to be signed later Tuesday is expected to help electric vehicles using metals processed in Japan qualify for tax incentives under President Joe Biden’s Inflation Reduction Act. U.S. Trade Representative Katherine Tai. ‘This announcement is proof of President Biden’s commitment to building resilient and secure supply chains,’ U.S. Trade Representative Katherine Tai said in a statement. The Inflation Reduction Act, enacted in August, requires a portion of the critical minerals used in EV batteries to be mined in or processed domestically or from countries with which the U.S. has free trade agreements. Japan and the U.S. have no such FTA, but the deal will grant Japan the same treatment as an FTA partner regarding such minerals, Japanese officials said.” [The Detroit News, 3/28/23 (=)]

 

US, Japan Strike Trade Deal On Electric Vehicle Battery Minerals — “The United States and Japan on Tuesday announced a trade deal on electric vehicle battery minerals that is key to strengthening their battery supply chains and granting Japanese automakers wider access to a new $7,500 U.S. EV tax credit. The swiftly negotiated agreement prohibits the two countries from enacting bilateral export restrictions on the minerals most critical for EV batteries, according to senior Biden administration officials. The minerals include lithium, nickel, cobalt, graphite and manganese. The deal also aims to reduce U.S.-Japanese dependence on China for such materials by requiring collaboration to combat ‘non-market policies and practices’ of other countries in the sector and on conducting investment reviews of foreign investments in their critical minerals supply chains. Minerals-focused trade deals are one way that the Biden administration hopes to open up access for trusted allies to the $7,500 per vehicle EV tax credits in last year’s climate-focused Inflation Reduction Act.” [Reuters, 3/28/23 (=)]

 

US And Japan Make Trade Deal For Battery Minerals Ahead Of IRS Decision — “The United States and Japan have struck a trade deal for battery minerals, according to Reuters. This deal could potentially allow Japanese electric cars greater access to US EV tax credits in the Inflation Reduction Act. The Inflation Reduction Act, passed in August, included big changes to how the US federal EV tax credit works. One of those changes involves restricting credit availability to vehicles that are assembled in North America, with additional requirements based on where battery components and critical minerals are sourced. The bill requires that a minimum percentage of EV battery components be built in North America and that ‘critical minerals’ in an EV’s battery be extracted or processed in the US or in a country with which the US has a free trade agreement. This minimum percentage will increase each year.” [Electrek, 3/28/23 (=)]

 

 

 

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