Federal Government

 

Groups Offer Dueling Views Of Needed Ambition In EPA’s Auto Proposal — “Environmentalists in initial advocacy to EPA are urging the agency to strengthen its proposed multi-pollutant standards for light- and medium-duty vehicles, including stronger requirements for gasoline vehicles, even as automakers say the proposal assumes too high of a rate of electric vehicle (EV) sales and should be scaled back. The competing testimony at EPA’s May 9-11 public hearing on the landmark proposal for model year 2027-2032 vehicles is foreshadowing upcoming comments from multiple groups on the rule, which envisions significant electrification of the vehicle fleet based on growing EV markets, available technology and federal incentives. In addition to automaker heartburn about the proposed standards, the EPA hearing also showcased pushback from the petroleum and ethanol sectors, which raised numerous attacks including that the proposal continues to avoid regulating upstream greenhouse gas emissions from EVs. The hearing is also accentuating a continuing public battle about the implications for EPA’s rulemaking of Inflation Reduction Act (IRA) and other federal supports for EVs, as some analysts say such incentives could enable automakers to nearly meet the Biden administration’s goal of 50 percent new EV sales by 2030 even without new EPA standards.” [Inside EPA, 5/9/23 (=)]

 

Groups Urge EPA To Recognize The Low-Carbon Benefits Of Ethanol — “The Renewable Fuels Association, Growth Energy and American Coalition for Ethanol and are calling on the U.S. EPA to recognize the carbon reduction benefits of ethanol in its proposed rule to set multi-pollutant emissions standards for model year (MY) 2027 and later light-duty and medium-duty vehicles. The EPA on April 12 issued a proposed rulemaking that aims to implement new, more stringent standards for criteria pollutants and greenhouse gases (GHGs) for MY 2027 and later light-duty and medium-duty vehicles. A three-day virtual public hearing to gather public comments on the proposal is scheduled for May 9-11. During the hearing, the RFA is urging the EPA to use honest carbon accounting and adopt a technology-neutral approach to reducing GHG emissions for passenger vehicles. According to RFA, EPA’s proposed actions on vehicular emissions standards for 2027-2032 ‘would effectively force automakers to produce more battery electric vehicles and would strongly discourage them from pursuing other technologies that could achieve the same—or even better—environmental performance at a lower cost to Americans.’” [Ethanol Producer Magazine, 5/9/23 (=)]

 

 

Manufacturers, Fleets, & OEMs

 

BYD Co.

 

China's BYD Cuts Starting Price For Seal EV; Aims To Extend Lead — “BYD Co Ltd (002594.SZ), on Wednesday cut the starting price of its best-selling Seal sedan by 10%, as the Chinese electric vehicle (EV) giant seeks to extend its lead in the world’s largest auto market with lower-priced products. The company replaced its line-up of the model with five new versions. That includes a rear-wheel drive Seal Champion Edition with a 550-km (342-mile) driving range per charge at a starting price of 189,800 yuan ($27,459). This is 20,000 yuan cheaper than a previous version with the same driving range, according to BYD’s website. The new price is also 18% cheaper than the rear-wheel drive version of Tesla Inc’s (TSLA.O) Model 3 in China with a driving range of 556 km, which the Seal Champion competes against. China’s EV market is in the midst of a price war started by Tesla earlier this year, with several EV makers including BYD following the U.S. automaker’s example by cutting prices for best-selling models this year to defend market share.” [Reuters, 5/10/23 (=)]

 

Fisker Inc.

 

Fisker Ocean Deliveries Start In Europe—Six Months Into Production — “Fisker Inc. last week revealed that it had delivered its first Ocean electric SUV to a customer—nearly six months after contract manufacturer Magna started production of the model in Austria. The first delivery, of an Ocean One launch edition, was attended personally by chairman and CEO Henrik Fisker, to a customer in Denmark, Fisker said. That handover took place at a Fisker facility in Copenhagen. Then on Monday Fisker confirmed the first German ‘vehicle registration’ at the opening of its Munich facilities. Fisker has said that the delay has been due to the vehicle homologation process, with full U.S. certification yet to come, although a recent Bloomberg report alleges that the EV startup is facing a series of software-related setbacks. Fisker developed the Ocean in an accelerated two-year timeframe. All Ocean One launch edition versions and top Extreme-spec versions start at $68,999, accelerate to 60 mph in a claimed 3.6 seconds, offer an innovative rotating infotainment screen, and deliver a claimed 440 miles of WLTP range, which Fisker says is the highest driving range of any battery-electric SUV ever offered in Europe.” [Green Car Reports, 5/9/23 (=)]

 

Fisker Cuts Production Guidance For Ocean EV After Last-Minute Snags — “KEY POINTS Electric vehicle startup Fisker on Tuesday reported a wider first-quarter loss than expected and cut its production guidance for the full year. CEO Henrik Fisker told CNBC the company expects regulatory approval to begin deliveries of its Ocean SUV in the U.S. before the end of May. It said it expects to build 1,400 to 1,700 vehicles in the second quarter, assuming its suppliers ramp up as expected.” [CNBC, 5/9/23 (=)]

 

Ford Motor Co.

 

Ford's New Muscle Truck, Ranger Raptor, Made Possible By EVs — “Ford Motor Co (F.N) on Wednesday unveiled the latest addition to its muscle truck franchise - a Ranger Raptor midsize pickup with a 405-horsepower engine and a suspension designed for racing across the desert, made possible in part by Ford’s electric vehicles. The Ranger Raptor, and the rest of the new generation of Ford Ranger pickups, will launch in North America later this year, illustrating how established automakers are shifting their combustion-vehicle lines toward more powerful, higher-profit variants as regulators clamp down on carbon emissions. For Ford, the Ranger Raptor is part of a broader strategy to develop performance variants of popular vehicles that share 80% of the parts of the basic truck or SUV, but can deliver an average 30% more profit margin over the cost of building the vehicle. Ford is expected to highlight this strategy at an investor event on May 22. Prices for the new Ranger will start at $34,160. But a Ranger Raptor will start at $56,960, Ford said. ‘This is a very successful and profitable derivative,’ Jim Baumbick, vice president for product development and quality for the Ford Blue unit, told Reuters.” [Reuters, 5/10/23 (+)]

 

Ford Cuts 2023 F-150 Lightning XLT Extended Range Price By $2,100 — “Ford has reopened retail orders for the 2023 F-150 Lightning electric pickup truck as the automaker is putting behind production pauses and supply challenges. The opening of retail orders comes as the company scales its annual production to 150,000 F-150 Lightning trucks in the fall of this year. As expected, Ford has also updated prices for its electric pickup truck, and we have good news and bad news. The F-150 Lightning XLT with Extended Range battery is now $2,100 cheaper, starting at $78,874 (excluding $1,895 destination). Ford made this adjustment to make the XLT long-range model eligible for up to $7,500 in federal tax credits under the Inflation Reduction Act, as its starting MSRP falls under the $80,000 cap.” [Inside EVs, 5/9/23 (+)]

 

Ford F-150 Lightning XLT Gets Price Cut With $7,500 Tax Credit — “Ford cut the price of its all-electric pickup truck, the F-150 Lightning XLT, with an extended-range battery. The Ford F-150 Lightning’s price cut makes the electric pickup even more affordable, considering it now qualifies for the tax credits under the Inflation Reduction Act (IRA). Ford lowered the price of the F-150 Lightning XLT with Extended Range battery by $2,100. The Lightning XLT now starts at $78,875. The price cut makes the XLT variant eligible for the IRA’s $7,500 tax credit since its MSRP falls below $80,000. The Lightning XLT with extended range battery comes with a 9.6 kW Pro Power onboard Ford Co-Pilot Assist 2.0. The electric pickup’s key features are its signature front lighting, 360-degree camera, and interior work surface.” [Teslarati, 5/10/23 (+)]

 

Hyundai Motor Co.

 

Hyundai To Build Electric Car Factory In South Korea — “Hyundai has announced the construction of an all-electric car plant in Ulsan, South Korea. Construction of the factory is to begin in the fourth quarter of this year and production is to start in the second half of 2025 with an annual capacity of 150,000 electric cars. This is reported by Korean media, citing official statements exchanged by Hyundai executives with South Korea’s Finance Minister Choo Kyung-ho during a tour of the plant. According to the statements, the carmaker wants to invest 2 trillion won in the factory construction, which is equivalent to about 1.37 billion euros. The new building will be Hyundai’s first new domestic plant in 29 years. The last inauguration of a production plant (the one in Asan) dates back to 1996. There are hardly any details about the planned pure electric car plant itself. What is clear is that it will be built on a 230,000-square-metre site in Ulsan and equipped with the latest technologies to become a ‘best-practice example for the future of domestic car production’.” [Electrive, 5/10/23 (=)]

 

Mercedes-Benz AG

 

Mercedes-Backed EV Battery Startup Plans €5.2 Billion Plant In France — “Taiwanese battery maker ProLogium Technology Co. picked France over other European nations to invest as much as €5.2 billion ($5.7 billion) in a factory that will produce a new generation of cells for electric vehicles, people familiar with the matter said. The solid-state battery startup will make an announcement later this week, said the people, who asked not to be identified before the plan becomes official. The plant will be located in the port of Dunkirk in northern France and start operations by the end of 2026, assuming the company gets regulatory approvals, the people said. When fully ramped up in 2031, the facility will be able to supply batteries for as many as 750,000 cars annually, according to a description of the project posted on the website of France’s public hearing office. A representative for ProLogium declined to comment on the plan. French newspaper Les Echos reported earlier on the plant. French President Emmanuel Macron, whose popularity has sunk after his government decided to raise the retirement age, is due to travel to Dunkirk Friday. ProLogium has been evaluating 90 sites across a dozen countries including France, Germany, the Netherlands, Poland and the UK before choosing the French port for its first giant battery plant.” [Bloomberg, 5/9/23 (=)]

 

Rivian Automotive Inc.

 

Rivian Results Charge Up Shares Amid EV Startup Gloom — “Shares of Rivian Automotive Inc (RIVN.O) rose 7% on Wednesday as its positive earnings stood out in a poor quarter for electric-vehicle startups, but analysts warned that stiff competition will be a hurdle in its path to profitability. The company looked set to add nearly $800 million to its market valuation, based on premarket stock prices, after it reiterated its annual production forecast and beat quarterly revenue estimates. The results showed how Rivian’s move to raise prices last year has helped the EV maker stem cash burn at a time when peers Lucid Group Inc (LCID.O) and Nikola Corp (NKLA.O) are struggling with ballooning losses. ‘We do see the average selling price continuing to expand and grow,’ CEO RJ Scaringe said, adding that Rivian’s expanded offerings including a larger battery called the ‘Max Pack’ will aid demand. Still, some analysts were skeptical about the prospects of a company that is caught in a price war started by market leader Tesla Inc (TSLA.O) and faces increasing competition from well-heeled legacy players such as Ford Motor Co (F.N).” [Reuters, 5/10/23 (=)]

 

Rivian Reports Better-Than-Expected Loss, Affirms EV Output Plan — “Rivian Automotive Inc. reported a narrower-than-expected loss to start the year and reaffirmed its annual production plans as efforts to cut costs buoyed the electric-vehicle maker. Shares climbed as much as 7.1% in premarket trading on Wednesday. The company lost $1.25 a share on an adjusted basis in the first quarter, according to a statement Tuesday. Analysts had expected a deficit of $1.56, based on the average of estimates compiled by Bloomberg. Revenue of $661 million was roughly in line with Wall Street’s projections. The Irvine, California-based company has been seen as a leading contender to break out of a pack of EV startups that launched production in recent years, particularly after its blockbuster market debut in 2021. But Rivian has stumbled as a public company amid supply-chain snags and operational challenges while attempting to accelerate production. Its shares rose 6.1% to $14.71 as of 4:56 a.m. in New York. The stock fell 25% this year through Tuesday’s close, after plunging 82% in 2022.” [Bloomberg, 5/9/23 (=)]

 

Rivian’s Quarterly Loss Narrows As EV Startups Face Cash Crunch — “Electric-vehicle startup Rivian RIVN -0.07%decrease; red down pointing triangle reported narrower losses in the first quarter as it slashed spending to conserve cash and stood by its vehicle production target for the year. The adjusted per-share loss beat analysts’ expectations, helping to send shares up 5% after hours. At the same time, its cash burn accelerated, underlining a key challenge facing young auto companies like Rivian. Absent new funding, they face a limited timeline in which to turn a profit before running out of money. ‘We have a lot of work to do in terms of continuing to drive our production ramp and drive costs down,’ said Rivian Chief Executive RJ Scaringe. Rivian, along with two other EV startups, Lucid LCID -5.58%decrease; red down pointing triangle and Fisker FSR -7.10%decrease; red down pointing triangle, that reported earnings this week, are straining to ramp up factory operations and get more vehicles into the hands of customers.” [The Wall Street Journal, 5/9/23 (=)]

 

Rivian Reports A Narrower-Than-Expected Quarterly Loss, Reaffirms EV Production Target — “KEY POINTS Electric vehicle maker Rivian Automotive on Tuesday reported a first-quarter loss that was narrower than expected. It said it’s still on track to meet a 50,000-vehicle production target for 2023. Rivian has been working to reduce its spending over the last several months in a bid to conserve cash.” [CNBC, 5/9/23 (=)]

 

Rivian (RIVN) Surprises In Q1 Earnings With Smaller Losses And Reaffirmed Production Guidance — “Rivian (RIVN) released its first-quarter earnings Tuesday as the EV maker looks to build upon its momentum from last year. Despite a slow start to 2023, Rivian says it still expects to produce 50,000 vehicles this year. Rivian Q1 2023 earnings preview After producing 9,395 vehicles and delivering 7,946 total units in the first three months of the year, Rivian says it remains on track to hit its 50,000 production goal by the end of the year. Rivian warned of lower production and deliveries as it retools its EDV assembly line to add its new in-house ‘Enduro’ drive units.” [Electrek, 5/9/23 (=)]

 

Rivian Maintains 2023 Output Target As It Posts $1.35b Net Loss In Q1 — “Rivian has posted its financial results for the first quarter, and the numbers and statements from company execs provide hope for the EV startup. The company said it maintains its 2023 production guidance of 50,000 vehicles after producing 9,395 units in the first quarter – R1T pickup, R1S SUV, and EDV commercial vans combined – and delivering 7,946. ‘Production in the first quarter was in-line with our expectations and, as a result, we are re-affirming our production outlook for the year of 50,000 total units,’ CEO RJ Scaringe said on the first-quarter earnings call on May 9, according to Automotive News.” [Inside EVs, 5/9/23 (=)]

 

SAIC Motor

 

China's SAIC To Dilute Stake In MG Motor India, Drive EV Sales — “China’s SAIC Motor (600104.SS) plans to drop its ownership in MG Motor India to allow domestic entities to take a majority stake, the Indian electric vehicle maker said on Wednesday, as Chinese investments face increased scrutiny by the New Delhi government. MG also plans to invest more than 50 billion rupees ($611.4 million) to build a second plant in India amid a slew of other proposals, including exploring cell manufacturing, with the aim that at least 65% of its sales comprise of EVs from 2026. While MG did not detail how or when SAIC would start lowering its stake, local media quoted MG managing director, Rajeev Chaba, saying the first step will be announced this year, with the aim to be majority owned by Indians in 2-4 years. Two weeks back, local media reported that JSW Holdings Ltd (JNSW.NS), the financial arm of Indian conglomerate JSW Group, was in talks to buy a stake in MG. JSW denied the report.” [Reuters, 5/10/23 (=)]

 

Tesla Inc.

 

Tesla Achieves Its Goal Of 5,000 Model Ys A Week At Giga Texas — “Tesla has achieved its goal of producing 5,000 Model Y vehicles in a week at Gigafactory Texas, which was the original goal for volume production at the plant. The automaker has been simultaneously ramping up two major factories, Gigafactory Berlin and Gigafactory Texas, to volume production. It created a friendly competition between the two. When ramping up a new vehicle to volume production at a new factory, Tesla generally considers 5,000 units per week to be the goal. In March, Gigafactory Berlin achieved that goal with 5,000 Model Y vehicles produced per week. Gigafactory Texas was trailing a bit behind and was at 4,000 Model Y vehicles per week in early April. Today, Tesla announced that Gigafactory Texas has also reached the milestone of producing 5,000 Model Y SUVs in a single week:” [Electrek, 5/9/23 (=)]

 

China: Tesla EV Retail Sales And Exports Were Balanced In April 2023 — “Tesla sales of Made-in-China (MIC) Model 3/Model Y in China and exports from China were surprisingly balanced in April. According to the China Passenger Car Association (CPCA)’s data, the overall wholesale vehicle shipments (local retail sales and exports) of Made-in-China (MIC) Model 3/Model Y amounted to 75,842 units (up from 1,512 in April 2022, when there was a lockdown). * CPCA reports wholesale shipments, not registrations/customer deliveries. It’s a result in-line with the year-to-date average of over 76,000 units a month. During the first four months of the year, the total wholesale sales amounted to over 305,000, which is 66 percent more than a year ago at this point.” [Inside EVs, 5/9/23 (=)]

 

Tesla (TSLA) Can “Harvest” Far More IRA Benefits Than Peers: Morgan Stanley — “The Inflation Reduction Act (IRA) could have a significant impact on the electric vehicle sector, particularly for Tesla (NASDAQ:TSLA). This was according to Morgan Stanley analysts, who noted that investors might be underestimating the potential benefits the legislation could provide to Tesla over the next few years. Morgan Stanley analyst Adam Jonas and his team noted that Tesla has achieved cost leadership and high margins through its vertically integrated business model, technological innovation, and manufacturing expertise. While many investors expect the IRA to help the entire electric vehicle industry, the analyst and his team noted that the legislation is especially advantageous to Tesla. ‘Many auto analysts believe the Inflation Reduction Act (IRA) helps lift all EV boats… that any incentive is better than no incentive. We don’t think so. Tesla can ‘harvest’ far more IRA benefits than its peers, with benefits being passed through to the customer, paying market share (not margins).” [Teslarati, 5/9/23 (=)]

 

Tesla Is Under Pressure From Democratic Leadership Who Claims It Is Hiding Complaints — “Tesla is under pressure from the Democratic Party’s leadership who claim the automaker is hiding complaints from workers and customers. The issue stems from the inclusion of ‘arbitration clauses’ inside Tesla’s contracts with workers and customers. An arbitration clause consists of any form of agreement between parties that indicate certain disputes will be resolved by an arbitrator instead of through a civil court. There are several reasons why someone would prefer arbitration since the proceedings are often faster, less costly, and more private than those in a court. Tesla uses arbitration clauses in employee and customer contracts. Over the last year, these clauses have been raised as an issue.” [Electrek, 5/9/23 (=)]

 

Tesla Accused Of Race-Based Discrimination, Retaliation By Former HR Manager — “Tesla is currently facing a new race-based discrimination lawsuit, this time from a former human resources manager at the Fremont Factory. The lawsuit was filed in the US District Court in San Francisco. The plaintiff in the case, 47-year-old Karen Draper, is claiming that she was terminated for refusing to unlawfully fire a Latina employee who was targeted by a White supervisor. Draper, an African-American, was hired in February 2022 to manage a team of HR personnel at Tesla’s Fremont factory. As per the legal complaint, Draper faced issues seven months into her tenure when a Latina production supervisor was granted medical leave. A White manager, who allegedly harbored a bias against the supervisor due to her ethnicity and gender, wanted to have the production supervisor terminated during her leave. The defendant, who was not named in the lawsuit, reportedly disliked the supervisor ‘because of her Latina ethnicity and female gender.’” [Teslarati, 5/10/23 (=)]

 

Toyota Motor Corp.

 

Toyota Shareholders Submit Proposal On Climate Disclosure, In Test For New CEO — “A trio of European asset managers has submitted a shareholder proposal urging Toyota Motor Corp (7203.T) to improve disclosure of its lobbying on climate change, likely the first time such a resolution will go before the Japanese automaker’s investors. The move by the three funds, which collectively hold shares in the world’s biggest automaker worth around $400 million, highlights the pressure new chief executive Koji Sato faces from green investors and climate activists over the company’s environmental lobbying. Toyota’s board on Wednesday recommended that shareholders vote against the resolution, to be put to the company’s annual general meeting in June. The Japanese firm was once the undisputed global leader in environmentally friendly cars with the Prius hybrid, but more recently it has been criticised as slow to embrace battery electric vehicles (EVs). Think tank InfluenceMap has given it low ratings for opposing policies that would mandate the long-term phase-out of the internal combustion engine. Toyota on Wednesday also said it expects a five-fold jump in pure electric vehicle (EV) sales this business year.” [Reuters, 5/10/23 (=)]

 

Funds Urge Toyota To Boost Disclosure Around Climate Lobbying — “European investors have urged Toyota Motor Corp. to improve disclosure of its lobbying on climate change ahead of an annual shareholder meeting in June. A resolution was submitted by three funds that together hold $400 million in Toyota shares — Danish pension fund AkademikerPension, Norwegian financial services company Storebrand Asset Management AS and Dutch group APG Asset Management NV — on Wednesday before Toyota announced earnings in Tokyo. Toyota’s board opposed it, citing past and ongoing efforts to make such disclosures since 2021 and reduce harmful emissions as part of its goal to expand electric vehicle production and become carbon neutral by 2050. The Japanese automaker’s Chief Executive Officer Koji Sato has promised that by 2026, Toyota will sell 1.5 million battery EVs every year. The carmaker’s multi-pronged approach, which involves selling electric cars alongside those powered by hybrid or internal combustion engines, has long drawn criticism from environmental advocacy groups.” [Bloomberg, 5/10/23 (=)]

 

Toyota Targets 10% Profit Jump, Robust EV Sales As Chip Woes Recede — “Toyota Motor Corp (7203.T) on Wednesday said it expects operating profit to climb 10% this business year, with a five-fold jump in pure electric vehicle (EV) sales amid an easing in global supply chain disruption from a shortage of chips. The growth plan was unveiled by new CEO Koji Sato, installed last month, and signals a more aggressive push towards electrification by the Japanese firm that has previously pursued a go-slow approach to all-electric cars, arguing its strategy would provide more consumer choice. The world’s biggest car maker by sales forecast battery EV sales, including those of its luxury Lexus brand, would reach 202,000 worldwide this business year through March 2024 - up more than fivefold from 38,000 units last year. Toyota forecast operating profit would rise to 3.0 trillion yen ($22.2 billion) this business year, in line with an analysts’ average forecast of 3.02 trillion yen. That target came after operating profit for the fiscal fourth quarter through March surged more than a third to 626.9 billion yen - easily ahead of the average 553.46 billion yen profit estimated by 10 analysts, according to Refinitiv data.” [Reuters, 5/9/23 (=)]

 

Volkswagen Group

 

Activists, Investors Call Out Volkswagen On China Record — “Activists lashed out at Volkswagen (VOWG_p.DE) at a shareholder meeting on Wednesday over the carmaker’s controversial plant in Xinjiang, reflecting similar investor concerns over claims of human rights abuses in the region. Investors also reiterated their longstanding critique of Oliver Blume’s dual role as head of both Volkswagen and Porsche (P911_p.DE), and the low valuation of Volkswagen stock, which has been in freefall for the past two years with no respite from the listing of Porsche last September. Chief Executive Oliver Blume acknowledged the fast pace of China’s electrification, and outlined Volkswagen’s strategy to hold on to its position as market leader - tailoring products to Chinese tastes and building local partnerships. He did not mention the company’s Xinjiang plant in China, a joint venture with SAIC Motor (600104.SS), which has become a sore point for human rights activists as well as some shareholders, including top-20 investors Deka Investment and Union Investment. Both urged the carmaker to require of SAIC that it conducts an external independent audit of the plant in Xinjiang, where rights groups have documented human rights abuses, including mass internment camps which China denies.” [Reuters, 5/10/23 (=)]

 

Misc. Automakers

 

EV Maker Faraday Future To Raise $100 Mln In Debt To Support Delivery Plans — “Electric vehicle (EV) startup Faraday Future Intelligent Electric (FFIE.O) on Tuesday said it was raising $100 million in debt as it aims to achieve initial deliveries of its flagship FF 91 Futurist vehicle after a funding crunch led to multiple delays. The company said it will also use the new debt funding to ramp up production. ‘This round of financing commitments is expected to provide the Company with capital to support our FF 91 delivery milestone, sales and service system development, as well as support our near-term production ramp-up goals,’ Xuefeng Chen, the global CEO of Faraday Future, said. In April, Faraday Future had pushed back the initial deliveries of the FF 91 Futurist by another two months, saying at that time that they would depend on ‘substantial additional financing’. Deliveries were originally slated to start in late 2022.” [Reuters, 5/10/23 (=)]

 

 

EV Charging Cos. & Parts Mfrs.

 

$10.6 Billion Lithium Deal To Create World’s No. 3 Producer — “Allkem Ltd. will combine with fellow lithium producer Livent Corp. to create a company with a valuation of $10.6 billion, the latest deal in a sector that’s benefiting from surging EV demand. The all-share merger will create the world’s third-biggest lithium producer in terms of future estimated capacity, the companies said on Wednesday. It will be listed in New York. A slump in prices of lithium carbonate, a processed form of the metal that’s a key ingredient in EV batteries, is fueling a surge of M&A activity. The drop in share valuations for some miners is making them more attractive to buyers who want to grab a slice of a market that’s a major part of the transition to cleaner energy. Livent Chief Executive Officer Paul Graves will lead the new company, while Allkem director and former Woodside Energy Ltd. head Peter Coleman will be chairman. The deal, which would see Allkem shareholders take 56% of the company and Livent shareholders 44%, was a ‘merger of equals,’ the companies said. No role was announced for Allkem’s CEO Martín Pérez de Solay.” [Bloomberg, 5/10/23 (=)]

 

Electric Vehicles

 

Charging Infrastructure

 

EVs Make Parking Even More Annoying — “Recently, I was chatting with a friend who drives an electric vehicle in New York City—and parks it at the curb. There are no curbside chargers in his neighborhood, so powering up requires dipping into a nearby garage for a few hours, or driving to a curb in a different neighborhood entirely. Full battery? Move that car or keep paying the charging company. Studying the charging landscape to save time, money, and energy has become ‘his whole personality,’ he told me. As he sent me image after image of prices, charging maps, and street-parking setups, I could see he wasn’t totally kidding. The Biden administration wants half of new U.S. vehicle sales to be electric by 2030. As this plan proceeds, EVs will get cheaper, the used-EV market will grow, and rural charging options will increase. Simply put, these vehicles will cease to be a symbol of wealth, or even environmentalism. They’ll be normal. And one of the great limiting factors on their ownership will be the space to park and plug them in. A good parking spot, in the electric-vehicle era, is about to become more important than ever.” [The Atlantic, 5/9/23 (~)]

 

Electric Vehicle Drivers In These States Are Charged Up To $220 For Not Pumping Gas — “Electric vehicle owners in Texas may soon have to pay an additional fee to register their car. A bill authorizing a $200 EV fee has cleared both houses of the state legislature and is awaiting Gov. Greg Abbott’s signature. The surcharge, which would be in addition to the traditional vehicle registration fee, is meant to offset revenue lost because EV drivers don’t pay the gas tax that helps fund maintenance of roads and transportation infrastructure. ‘As more of these vehicles drive on Texas roads, there are concerns about how they contribute to the funding of the roads which they use,’ Republican state Sen. Robert Nichols, who sponsored Senate Bill 505, said in a statement.” [CNET, 5/9/23 (=)]

 

Critical Minerals & Materials

 

Bloomberg | Why The Fight For ‘Critical Minerals’ Is Heating Up — “Over more than a century, oil companies have developed a vast industrial network to extract, refine and deliver their product to customers around the world. Sourcing the materials needed to build an alternative, less carbon-intensive economy presents a whole new set of challenges. China has tackled these successfully for more than a decade, making it the undisputed leader in the ‘critical minerals’ used in electric vehicle batteries, solar panels and wind-turbine magnets. If the US and Europe are going to have a chance of challenging its dominance in such clean technologies, they need to catch up fast.” [The Washington Post, 5/9/23 (=)]

 

The “Electrify Everything” Movement’s Consumption Problem — “The transportation sector is the primary source of greenhouse gas emissions in the U.S., which is why it’s a primary target for decarbonization. And thanks to the availability of both electric vehicles and Inflation Reduction Act-related incentives to purchase them, American consumers are embracing the shift, with EV purchases expected to represent half of all vehicle purchases by 2030. But that shift will bring with it other environmental impacts related to mineral mining and the land required for large-scale renewable projects to provide the electricity all those cars plug into. Policies that reduce car dependency and encourage the use of mass transit can speed decarbonization, make the energy transition more just, reduce environmental impacts, and ease tensions around increasingly scarce resources. Such policies could also help decarbonization advocates get in front of a burgeoning anti-electrification movement that includes folks like Texas Sen. Ted Cruz, who is suddenly very concerned about the impact of cobalt mining on children in the Congo.” [The Intercept, 5/8/23 (~)]

 

Automakers Say Proposed US Emissions Rules Pose Challenges — “An auto trade group warned on Tuesday that aggressive US targets for reductions in vehicle emissions may rely on a too rapid transition to electric vehicles (EVs) and pose significant challenges with manufacturing and supply chains. The US Environmental Protection Agency (EPA) has proposed sharp emissions cuts that it estimates would result in 60% of new vehicles by 2030 being electric and 67% by 2032. The Alliance for Automotive Innovation, representing General Motors, Toyota Motor, Volkswagen AG, Hyundai Motor and others, said automakers will struggle to meet those targets because of problems with the supply chain for EV batteries, motors and chargers as well as consumer resistance. The EPA proposal, if finalized, represents the most aggressive US vehicle emissions reduction plan to date, requiring 13% annual average pollution cuts and a 56% reduction in projected fleet average emissions over 2026 requirements.” [Mining.com, 5/9/23 (=)]

 

The EV Battery Supply Chain Explained — “What are the problems in the EV battery supply chain and how can we improve it? The transportation sector is the largest emitter of greenhouse gases in the US economy, and about half its emissions come from light-duty vehicles alone. To avoid the disastrous effects of a 1.5°C increase in global temperatures, we will need to replace the more than 300 million internal combustion engine (ICE) vehicles currently on the road with electric vehicles (EVs). Today, there are about 2.5 million EVs on US roads. This number will need to increase to 44 million by 2030 if we are to reach net-zero emissions. Every one of these 44 million cars will need to be powered by an electric battery produced in a long, complex process involving mining, refining, production, and assembly. While research findings predicting expected growth in EV demand varies, there is consensus that it is expanding and will continue to do so: S&P Global Mobility forecasts electric vehicle sales in the United States alone could reach 40% of total passenger car sales by 2030, and more optimistic projections foresee electric vehicle sales surpassing 50% by 2030.” [CleanTechnica, 5/9/23 (+)]

 

EV Sales & Transition

 

45% Of US Car Dealers Won’t Sell You An EV – Here’s What’s Going On — “Sixty-six percent of US car dealers don’t have any EVs to sell, and 45% said they wouldn’t sell them no matter what, according to a new report from Sierra Club about the EV shopping experience in the US. Conversely, the authors report that out of the 66% of dealerships that don’t have any EVs, 44% want to sell them when they can get them. Those who want to sell EVs say that stock bottlenecks are caused by supply chain problems, inventory challenges, and EV automaker allocation to dealerships. Sierra Club’s new report is called ‘Rev Up Electric Vehicles: A Nationwide Study of the Electric Vehicle Shopping Experience,’ and it’s based on over 800 surveys of auto dealerships and stores across all 50 states. The environmental organization shared testimonials from dealers around the US, and responses varied widely depending on representatives’ car availability, knowledge, and attitude. A dealer representative at Tyrrell-Doyle Chevrolet in Wyoming said, ‘We need to install chargers first before the automaker can send us EVs to sell.’” [Electrek, 5/9/23 (+)]

 

Aftermarket Tire And Repair Shops Could Gain In EV Shift — “So far, few if any widespread automotive service retailers have tried to woo the business of electric vehicle owners. But recent survey results suggest that some of them might do better by focusing on EV-specific needs soon. The results come from survey giant J.D. Power, via its U.S. Aftermarket Service Index Study, out last week. It found that satisfaction with aftermarket chains that do full-service maintenance, repair, and tire service has taken a nosedive. Power bases ratings on ease of scheduling, courtesy, performance, the facility, time to complete service, and the quality of the work. There is of course no motor oil to change on EVs. But Power sees that these shops could gain a lot focusing on tires. It says tire maintenance, repair, and replacement are all done at much higher rates for EVs versus for internal combustion models. Tire repair shows the greatest difference, at 41% for EVs, vs. 12% for other models. Tire maintenance (rotation, for instance) is at 49% vs. 28% and tire replacement at 34% vs. 21%, for ICE vs. other models respectively.” [Green Car Reports, 5/9/23 (+)]

 

 

Advocacy

 

No Time To Waste — “More than 125 environmental and transportation groups, including Transportation for America, U.S. PIRG, the NRDC and the National Association of City Transportation Officials, urged Buttigieg and OMB Director Shalanda Young in a Tuesday letter to speed up the regulatory process for the Biden administration’s proposed rule from July to require state DOTs to measure greenhouse gas emissions and establish targets to lower emissions. — ‘IIJA is a historic investment in our nation’s infrastructure, and the public has a right to know how those funds affect our climate future,’ the letter reads. ‘The addition of the greenhouse gas measure to the Department’s existing performance measurement framework will shine needed light on the climate impacts of these investments and lead to more informed decision-making.’” [Politico, 5/10/23 (=)]

 

 

States & Local

 

California

 

South Pasadena’s Police Cars Will Soon All Be Teslas — “South Pasadena’s police car fleet is expected to go fully electric by the start of next year. The city is leasing 20 Teslas through Enterprise for at least five years for police patrol duties, administration and detective work. Some vehicles are already in use, Deputy City Manager Domenica Megerdichian said, while others used for patrol must still be properly outfitted. Nearly $2 million in city funds was allotted to the leasing agreement, which includes 10 Tesla Model Y vehicles and 10 Tesla Model 3 vehicles, according to City Council agenda reports. The city also received $500,000 in funding from a committee that works to reduce vehicle pollution in the South Coast region. More than 30 charging ports, including some for public use, will be installed at South Pasadena City Hall parking lots in partnership with Southern California Edison. ‘We have been investigating this transition for five to six years and determined that these electric vehicles will be the best operationally for us,’ South Pasadena Police Chief Brian Solinsky said in a statement. ‘They are the safest and fastest vehicles and will save the city money in lower maintenance and fueling costs.’” [Los Angeles Times, 5/8/23 (=)]

 

Southern Californians Who Drive The Most Are Slowest To Switch To Electric Vehicles — “Nearly a third of drivers in the rural Riverside County city of Anza are considered gasoline ‘superusers,’ each burning more than 1,200 gallons of planet-warming gasoline per year and spending nearly 20% of their annual income to commute. And just 0.1% of vehicles owned by Anza residents so far are electric. But over in the pricey Los Angeles County city of San Marino, just 2.5% of drivers are superusers, each spending less than 6% of their income on fuel. And 5.7% of drivers in San Marino now have electric vehicles — more than double the statewide average. These disparities are spelled out in a new online tool from the nonprofit Coltura, which pairs gasoline consumption and EV ownership rates with demographic data for every ZIP code in California.” [Los Angeles Daily News, 5/9/23 (=)]

 

North Carolina

 

Charlotte Business Journal | Huntersville Company With EV-Charging Tech Plans 205-Job Expansion — “Huntersville-based Atom Power Inc. is rolling out major expansion plans in its home area. On Tuesday afternoon, the company announced its plans to add 205 new jobs in Huntersville by 2026, a move that would more than triple its N.C. workforce. Atom Power CEO Ryan Kennedy was joined by Gov. Roy Cooper and other local officials to formally unveil the plans at the company’s headquarters at The Park-Huntersville. The $4.2 million project calls for the expansion of Atom Power’s corporate headquarters and its research, development and manufacturing operations. The announcement came after North Carolina’s economic investment committee approved incentives this morning for the company. The new jobs are expected to pay an average annual wage of $91,804, more than $10,000 higher than Mecklenburg County’s average. State incentives for the project are valued at nearly $1.6 million, according to the terms laid out by the committee. ‘It’s important that this company is here and homegrown because we really have become a clean energy destination for a lot of these companies,’ Cooper said at today’s announcement. ‘And we’ve got Atom Power who can talk to people about how well North Carolina works with our businesses and how much we support them, how we train workers for these positions. I’m excited they were able to expand here, because this company could have gone anywhere it wanted.’” [WSOC-TV, 5/9/23 (=)]

 

Oregon

 

Portland, Oregon To Pilot Zero-Emission Delivery Zone — “Dive Brief: Portland, Oregon, will launch a ‘Zero-Emission Delivery Zone’ pilot to incentivize deliveries through more sustainable modes of transportation, according to the city’s Bureau of Transportation. Through the pilot, diesel and gas-powered delivery trucks can transfer goods to zero-emissions transportation options like electric vehicles, which can then make deliveries at three zero-emissions loading zones outside government buildings in the city’s downtown. On-street changes aren’t expected to be made until early 2024, per the Bureau of Transportation’s Twitter account. Portland received nearly $2 million earlier this year through the U.S. Department of Transportation’s Strengthening Mobility and Revolutionizing Transportation (SMART) Grants program to fund the project.” [Smart Cities Dive, 5/9/23 (=)]

 

Texas

 

Texas Set To Impose Annual Fees On EV Owners — “To replace the gas tax paid by internal combustion engine (ICE) vehicles, the Texas House recently approved an annual $200 fee for electric vehicle owners. The bill now awaits approval from Governor Greg Abbott before becoming law. In 2015, Texas had raised $3.4 billion with the gas tax, which adds another 20 cents per gallon to the price of gasoline and diesel. That made it the fourth-largest source of tax revenue for the state, which does not charge an annual income tax for individuals. As electric vehicle drivers will not be buying gasoline, the state sees its revenues in danger. Still an interesting choice for the home of Tesla’s most recently built gigafactory, as well as a new lithium refinery.” [Electrive, 5/10/23 (=)]

 

 

International

 

Chile

 

Grist | Chile’s National Lithium Strategy Raises Questions About The Environmental And Social Costs Of EVs — “There are few minerals that play as pivotal a role in the global energy transition as lithium. The silvery white, soft, reactive metal is particularly good at storing energy, which is why it is used in all commercial electric vehicle batteries today and is unlikely to be replaced by another material anytime soon. The demand for lithium batteries is expected to grow more than five times by 2030. Recognizing its strategic importance, economic potential, and its environmental consequences, President Gabriel Boric of Chile, the world’s second largest producer of the metal, announced plans in late April to increase state participation in the country’s lithium industry. ‘The main aim of this policy,’ said Pedro Glatz, who was a senior advisor to the Chilean Ministry of the Environment until two months ago and was not involved in crafting the policy, ‘is to provide more wealth, well-being, and welfare to the Chilean people.’” [Salon, 5/8/23 (+)]

 

China

 

Bloomberg | Chinese Investment In Europe Drops, Except For EV Batteries — “Chinese investment in Europe plunged by more than a fifth last year to a decade low as a shift toward greenfield investments in electric vehicle batteries only partially offset a steep decline in mergers and acquisitions, a survey showed. Foreign direct investment in Europe from China sank to €7.9 billion ($8.7 billion), a 22 percent decline from the previous year, according to a report published Tuesday by the Berlin-based Mercator Institute for China Studies and New York-based Rhodium Group. It was the first year that greenfield investments, which increased by 53 percent, outpaced deals. A range of factors contributed to the plunge, the authors said, including rising interest rates, growing strategic risks linked to Russia’s invasion of Ukraine, China’s constraints on capital outflows and Beijing’s zero-Covid strategy, which was in place for most of 2022. Globally, China’s investment activities fell 23 percent.” [E&E News, 5/10/23 (=)]

 

Europe’s Transit Firms Realize China Is The Only Scaled Manufacturer Of Low-Carbon Solutions — “In the dark mists of time before COVID, the year 2019, I published a four-part series on the major headwinds facing us as we struggled to decarbonize quickly through 2030. The headwinds were inverted political power with cities at the bottom of power hierarchies due to patterns reasonable hundreds of years ago, the patchwork of regulations that meant many cleantech deployment companies couldn’t share resources across jurisdictions easily, major utility and transit organizations being poorly positioned for transformation, and finally the political challenge that China is the only scaled manufacturer of most of the things we need to decarbonize our economies.” [CleanTechnica, 5/9/23 (=)]

 

 

Negative News

 

The Nationalist Dark Side Of Joe Biden’s Climate Policies — “In everything from climate change to the courts to foreign policy, the Trump and Biden presidencies could not be less alike. But when it comes to foreign trade and protectionism, there’s more continuity than difference. Former President Donald Trump was the most pro-tariff president in decades, particularly targeting China. Instead of pushing back, President Joe Biden has preserved most of the Trump tariff regime. The Inflation Reduction Act, Biden’s signature climate bill, extensively favors US industry in a way that has provoked mass outrage from foreign governments, including close allies; an Indian government official called it ‘the most protectionist act ever drafted in the world,’ and a South Korean official called it a ‘betrayal.’ … Dylan Matthews Among the most obvious protectionist measures undertaken by Biden are the ‘made in America’ rules that have dominated implementation of the infrastructure bill and key climate provisions, like tax credits for electric cars. That means that most of the electric cars on the market aren’t eligible for credits. This strikes me as not just a problem for meeting our climate goals but a pretty brazen return to protectionism of the kind you condemn at length in your book.” [Vox, 5/9/23 (-)]

 

Labor Nominee A Threat To America’s Truckers — “Julie Su, President Biden’s nominee to lead the U.S Department of Labor, has a history with truckers and independent contractors in California. And that history is the precise reason OOIDA is encouraging members of the U.S. Senate to reject her nomination. We fear the duplication of her failed California-style policies on the federal level would be devastating to small business truckers across America. As California’s former labor commissioner in 2019, Su supported legislation called Assembly Bill 5 that threatened the independent contractor status of many small business truckers, who benefit from this classification and want to see it preserved. While Su’s AB5 was primarily aimed at addressing worker misclassification in the gig economy, it created profound disruption and uncertainty in the trucking industry that persists to this day, with many owner-operators exiting the state entirely for fear of losing the status they favor.” [Land Line, 5/9/23 (=)]

 

Biden Admin Steamrolls Eco Concerns, Fast-Tracks Mining That May Give EVs A Boost — “The Biden administration announced a southern Arizona mining project would be the first to ever receive special permitting fast-track coverage despite concerns over ecological impacts. The Federal Permitting Improvement Steering Council — an interagency office with White House, Transportation Department, Interior Department, Energy Department and Pentagon representatives — said late Monday that the $1.7 billion Hermosa Critical Minerals project proposed by multi-billion-dollar Australian mining firm South32 had been granted so-called FAST-41 coverage. If approved, the Hermosa project, located in the Patagonia Mountains within the Coronado National Forest in Santa Cruz County, Arizona, would produce zinc and manganese, two critical minerals that are vital for electric vehicle (EV) batteries and renewable power storage. According to the International Energy Agency, manganese is widely used in EVs while zinc is crucial for wind energy development.” [Fox News, 5/9/23 (-)]

 

 

 

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