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Contract manufacturing superpower Magna International announced it is investing over $500 million to erect two new manufacturing facilities and expand a third in the state of Michigan. The new and expanded Magna facilities will develop components specifically for the growing market of electric vehicles and are expected to create over 1,500 new jobs in Michigan.

Even if you aren’t already aware of Magna International, there’s a very high chance you’ve driven a vehicle with at least one component the multi-national contract manufacturer has built. With over 130 manufacturing and assembly facilities in North America, alongside footprints in Europe, Asia, South America, and Africa, Magna is one of the names in building quality auto components.

As the automotive industry as a whole pivots steadily toward electrified models, Magna has adapted its manufacturing as well. By developing everything from electrified powertrains, to ADAS systems, and entire EVs, Magna is providing several OEMs with the technology and components to go all-electric.

For instance, its current facility in St. Clair, Michigan, is where Magna produces steel EV battery enclosures for GMC’s Hummer EV. According to an announcement today, Magna is allocating over $500 million to expand that current Michigan site and build two additional facilities to support the production of vital EV components.

Magna Michigan
Magna’s current manufacturing footprint in St. Clair, Michigan, which will be expanded

Magna shared its latest expansion plans in a press release today, outlining how it intends to add to its existing footprint of 32 facilities and over 10,000 employees in Michigan alone.

In addition to the expansion of battery enclosure manufacturing in St. Clair, Michigan, Magna will erect new facilities to build powertrains in Shelby Township and seating components in Detroit. Magna’s chief marketing and sales officer Eric Wilds spoke to the company’s new $500 million commitment:

With our unmatched capabilities across our product areas, we continue to work with our customers to help them meet their mobility needs. We are excited to be able to bring new business, more investment and additional jobs to Michigan and we thank the state for its support.

According to The Detroit News, the Michigan Strategic Fund board approved $10.2 million in state program grants for Magna International in support of its $500 million investment to expand. With its own financial commitment and state grants in place, Magna looks to deliver the following in the state of Michigan:

  • Add a 740,000-square-foot expansion to the existing St. Clair facility, creating an expected 920 new jobs
  • Erect an entirely new 200,000-square-foot greenfield powertrain facility in Shelby Township to supply battery tray components to EVs from OEMs that is expected to create 155 new jobs
  • Build a new 110,000-square-foot Magna brownfield facility (expected to create 490 new jobs when it reaches full production) in Detroit, Michigan, to supply seat frames, trim, and foam to “a US-based automaker”

This is a savvy move by a major contract manufacturer as more and more automakers look to move their vehicle and battery component assemblies onto US soil to qualify for federal tax credits under revised terms in the recently signed Inflation Reduction Act.

For example, the upcoming Fisker Ocean originally qualified for credits but no longer will beginning January 1, 2023 because it will be assembled overseas by Magna International’s Austrian-based division, Magna-Steyr.

As we reported back in September, Magna-Steyr is considering a contract assembly plant in North America and is currently evaluating potential locations based on how sunny and windy it is, hinting at intentions to build a climate-friendly facility powered by renewables.

Since Magna International is the top contract manufacturer on the continent, we’d expect many more foreign automakers to work with the company to establish US manufacturing and assembly. With today’s latest news from Michigan, Magna appears to already be making moves to prepare for such production expansions on US soil.

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Europe’s wind power hits 20%, but 3 challenges stall progress

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Europe’s wind power hits 20%, but 3 challenges stall progress

Wind energy powered 20% of all electricity consumed in Europe (19% in the EU) in 2024, and the EU has set a goal to grow this share to 34% by 2030 and more than 50% by 2050.

To stay on track, the EU needs to install 30 GW of new wind farms annually, but it only managed 13 GW in 2024 – 11.4 GW onshore and 1.4 GW offshore. This is what’s holding the EU back from achieving its wind growth goals.

Three big problems holding Europe’s wind power back

Europe’s wind power growth is stalling for three key reasons:

Permitting delays. Many governments haven’t implemented the EU’s new permitting rules, making it harder for projects to move forward.

Grid connection bottlenecks. Over 500 GW(!) of potential wind capacity is stuck in grid connection queues.

Slow electrification. Europe’s economy isn’t electrifying fast enough to drive demand for more renewable energy.

Brussels-based trade association WindEurope CEO Giles Dickson summed it up: “The EU must urgently tackle all three problems. More wind means cheaper power, which means increased competitiveness.”

Permitting: Germany sets the standard

Permitting remains a massive roadblock, despite new EU rules aimed at streamlining the process. In fact, the situation worsened in 2024 in many countries. The bright spot? Germany. By embracing the EU’s permitting rules — with measures like binding deadlines and treating wind energy as a public interest priority — Germany approved a record 15 GW of new onshore wind in 2024. That’s seven times more than five years ago.

If other governments follow Germany’s lead, Europe could unlock the full potential of wind energy and bolster energy security.

Grid connections: a growing crisis

Access to the electricity grid is now the biggest obstacle to deploying wind energy. And it’s not just about long queues — Europe’s grid infrastructure isn’t expanding fast enough to keep up with demand. A glaring example is Germany’s 900-megawatt (MW) Borkum Riffgrund 3 offshore wind farm. The turbines are ready to go, but the grid connection won’t be in place until 2026.

This issue isn’t isolated. Governments need to accelerate grid expansion if they’re serious about meeting renewable energy targets.

Electrification: falling behind

Wind energy’s growth is also tied to how quickly Europe electrifies its economy. Right now, electricity accounts for just 23% of the EU’s total energy consumption. That needs to jump to 61% by 2050 to align with climate goals. However, electrification efforts in key sectors like transportation, heating, and industry are moving too slowly.

European Commission president Ursula von der Leyen has tasked Energy Commissioner Dan Jørgensen with crafting an Electrification Action Plan. That can’t come soon enough.

More wind farms awarded, but challenges persist

On a positive note, governments across Europe awarded a record 37 GW of new wind capacity (29 GW in the EU) in 2024. But without faster permitting, better grid connections, and increased electrification, these awards won’t translate into the clean energy-producing wind farms Europe desperately needs.

Investments and corporate interest

Investments in wind energy totaled €31 billion in 2024, financing 19 GW of new capacity. While onshore wind investments remained strong at €24 billion, offshore wind funding saw a dip. Final investment decisions for offshore projects remain challenging due to slow permitting and grid delays.

Corporate consumers continue to show strong interest in wind energy. Half of all electricity contracted under Power Purchase Agreements (PPAs) in 2024 was wind. Dedicated wind PPAs were 4 GW out of a total of 12 GW of renewable PPAs. 

Read more: Renewables could meet almost half of global electricity demand by 2030 – IEA


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Podcast: New Tesla Model Y unveil, Mazda 6e, Aptera solar car production-intent, more

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Podcast: New Tesla Model Y unveil, Mazda 6e, Aptera solar car production-intent, more

In the Electrek Podcast, we discuss the most popular news in the world of sustainable transport and energy. In this week’s episode, we discuss the official unveiling of the new Tesla Model Y, Mazda 6e, Aptera solar car production-intent, and more.

The show is live every Friday at 4 p.m. ET on Electrek’s YouTube channel.

As a reminder, we’ll have an accompanying post, like this one, on the site with an embedded link to the live stream. Head to the YouTube channel to get your questions and comments in.

After the show ends at around 5 p.m. ET, the video will be archived on YouTube and the audio on all your favorite podcast apps:

We now have a Patreon if you want to help us avoid more ads and invest more in our content. We have some awesome gifts for our Patreons and more coming.

Here are a few of the articles that we will discuss during the podcast:

Here’s the live stream for today’s episode starting at 4:00 p.m. ET (or the video after 5 p.m. ET):

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BYD’s new Han L EV just leaked in China and it’s a monster

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BYD's new Han L EV just leaked in China and it's a monster

The Chinese EV leader is launching a new flagship electric sedan. BYD’s new Han L EV leaked in China on Friday, revealing a potential Tesla Model S Plaid challenger.

What we know about the BYD Han L EV so far

We knew it was coming soon after BYD teased the Han L on social media a few days ago. Now, we are learning more about what to expect.

BYD’s new electric sedan appeared in China’s latest Ministry of Industry and Information Tech (MIIT) filing, a catalog of new vehicles that will soon be sold.

The filing revealed four versions, including two EV and two PHEV models. The Han L EV will be available in single- and dual-motor configurations. With a peak power of 580 kW (777 hp), the single-motor model packs more power than expected.

BYD’s dual-motor Han L gains an additional 230 kW (308 hp) front-mounted motor. As CnEVPost pointed out, the vehicle’s back has a “2.7S” badge, which suggests a 0 to 100 km/h (0 to 62 mph) sprint time of just 2.7 seconds.

BYD-Han-L-EV
BYD Han L EV (Source: China MIIT)

To put that into perspective, the Tesla Model S Plaid can accelerate from 0 to 100 km in 2.1 seconds. In China, the Model S Plaid starts at RBM 814,900, or over $110,000. Speaking of Tesla, the EV leader just unveiled its highly anticipated Model Y “Juniper” refresh in China on Thursday. It starts at RMB 263,500 ($36,000).

BYD already sells the Han EV in China, starting at around RMB 200,000. However, the single front motor, with a peak power of 180 kW, is much less potent than the “L” model. The Han EV can accelerate from 0 to 100 km/h in 7.9 seconds.

BYD-Han-L-EV
BYD Han L EV (Source: China MIIT)

At 5,050 mm long, 1,960 mm wide, and 1,505 mm tall with a wheelbase of 2,970 mm, BYD’s new Han L is roughly the size of the Model Y (4,970 mm long, 1,964 mm wide, 1,445 mm tall, wheelbase of 2,960 mm).

Other than that it will use a lithium iron phosphate (LFP) pack from BYD’s FinDreams unit, no other battery specs were revealed. Check back soon for the full rundown.

Source: CnEVPost, China MIIT

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