Hyundai Motor Group and SK On plan to invest $1.9 billion (2.5 trillion won) to build a new EV battery plant in the US. The partners are scheduled to sign a memorandum of understanding (MOU) on November 28 in Georgia, where Hyundai is building its first dedicated EV facilities.
According to the Korean Economic Daily, Hyundai and SK On are discussing a 50/50 joint venture to build the factory with an annual production of 20 GWh or enough for around 300,000 EVs.
Hyundai and SK have been in discussions since May to build a joint battery plant in the US. However, disagreements over how much each partner would receive have delayed progress.
In March, Hyundai outlined its strategy on how the automaker plans to become a global EV powerhouse, complete with local battery sourcing. To scale production in the US, Hyundai said it would build its first dedicated electric vehicle plant in Bryan County, Georgia.
The $5.5 billion EV facility was initially slated to begin commercial production in 2025, but with the passing of the Inflation Reduction Act in August, the South Korean automaker accelerated its timeline.
To satisfy the requirements of the IRA bill (battery sourcing and assembly) and to ensure its customers will receive the tax credit, Hyundai broke ground on its new facility on October 25. Although disagreements have delayed its US battery plant until now, a new report out of South Korea suggests Hyundai and SK On are planning to sign an MOU as early as next week to kick off production.
Hyundai, SK On building a $1.9 US battery plant
Hyundai and SK On are discussing a 50/50 joint venture for the new battery plant that expects 20 GWh annual capacity, enough for around 300,000 EVs.
The new battery plant will supply pouch-type EV batteries for new Hyundai models built at its new facility in Bryan County, Georgia. Hyundai is already using SK’s batteries for its award-winning IONIQ5, the recently launched IONIQ6, and Kia’s EV6. The automaker also plans to use them in the future IONIQ7 SUV, Genesis GV70, and Kia EV9.
The joint venture’s new battery plant is expected to start production in 2026. With enough annual capacity for 300,000 EVs, the same output expected from Hyundai’s Georgia facility, the automaker has also been in talks with LG Energy for another EV battery plant in the US.
The Hyundai Motor Group has had success thus far in the transition to electric vehicles with strong demand and award-winning models.
However, experts have warned that pressure could build on Hyundai’s EV sales due to the IRA bill’s strict battery sourcing and assembly requirements.
Democratic lawmakers accuse big oil companies of ‘greenwashing’
Gas prices are displayed at an Exxon gas station on July 29, 2022 in Houston, Texas. Exxon and Chevron posted record high earnings during the second quarter of 2022 as energy stocks have faltered in recent months.
Brandon Bell | Getty Images
A pair of Democratic lawmakers on Friday accused the largest oil companies in the United States of “greenwashing” their public image and not doing enough to decarbonize fast enough to meet climate change targets.
Carolyn B. Maloney, chair of the U.S. House of Representatives’ main investigative committee, the Committee on Oversight and Reform, and Ro Khanna, a member of the same committee and the chair of the Oversight Environmental Subcommittee, sent a 31-page letter on Friday to the rest of the members of the committee with the latest findings from their ongoing investigation into the fossil fuel industry.
Burning fossil fuels releases carbon dioxide into the atmosphere and causes global warming. The Oversight Committee began its investigation into what it calls a “climate disinformation” campaign in Sept. 2021 and held a hearing with top executives from oil and gas giants on Oct. 28 of that year.
The letter is the latest installment in the committee’s bid to demonstrate that oil companies are not trying to reduce their CO2 emissions quickly enough, while obscuring their lack of participation.
“These documents demonstrate how the fossil fuel industry ‘greenwashed’ its public image with promises and actions that oil and gas executives knew would not meaningfully reduce emissions, even as the industry moved aggressively to lock in continued fossil fuel production for decades to come — actions that could doom global efforts to prevent catastrophic climate change,” the letter reads.
These efforts are particularly offensive, Maloney and Khanna said, because of the amount of money the biggest oil companies are making right now.
“The fossil fuel industry’s failure to make meaningful investments in a long-term transition to cleaner energy is particularly outrageous in light of the enormous profits these companies are raking in at the expense of consumers — including nearly $100 billion in combined profits for Exxon, Chevron, Shell, and BP in just the last two quarters,” the letter reads.
The letter also details ways in which the oil companies have made insufficient efforts to decarbonize their businesses, and points to internal documents that show how the companies are continuing to invest in fossil fuel production and increase output.
“Each of the companies has publicly pledged to reach ‘net zero’ greenhouse gas emissions by 2050,” the letter reads. “However, experts have found that not one of the net zero pledges from BP, Shell, Exxon, or Chevron are aligned with the pace and scope of cuts necessary to meet the goals of the Paris Agreement and avert catastrophic climate change.”
The letter also points to documents that show how the industry is pushing natural gas as a long-term climate solution.
“In 2021, natural gas contributed to 34% of U.S. energy-related emissions and 22% of emissions globally,” the letter reads. “Documents obtained by the Committee show fossil fuel companies and lobbying groups seek to publicly position natural gas as a clean source of energy and part of the transition to renewables, even as the industry is privately planning for expanded natural gas production over the long term.”
Burning natural gas results in fewer greenhouse gas emissions than burning coal or other kinds of fossil fuels for the same amount of energy, according to the U.S. Energy Information Administration, but it still releases greenhouse gas emissions. Burning natural gas produces about 117 pounds of carbon dioxide per million British thermal units (a measure of heat). That’s compared with 200 pounds for coal and 160 pounds for fuel oil.
Equally critically, the production of natural gas results in leaks of methane all throughout the production process and methane is a greenhouse gas, too. It’s a different greenhouse gas than carbon dioxide, but still contributes to global warming.
The oil companies targeted in this investigation categorically deny the allegations made by the House Committee.
“The Committee’s fourteen month investigation, which included several hours of executive testimony and nearly a half-million pages of documents, failed on all fronts to uncover evidence of a climate disinformation campaign,” Curtis Smith, the media lead for Shell North America, told CNBC. “In fact, the handful of subpoenaed documents the Committee chose to highlight from Shell are evidence of the company’s extensive efforts to set aggressive targets, transform its portfolio and meaningfully participate in the ongoing energy transition.”
Exxon claims the House Committee lawmakers have been disingenuous in their representation of the oil company’s engagement.
“Our CEO has testified under oath on this subject during two all-day Congressional hearings before two separate committees, we’ve been in regular communication with the committee for over a year, and have provided staff with more than one million pages of documents, including board materials and internal communications,” Todd Spitler, corporate media relations senior advisor for Exxon, told CNBC.
“The House Oversight Committee report has sought to misrepresent ExxonMobil’s position on climate science, and its support for effective policy solutions, by recasting well intended, internal policy debates as an attempted company disinformation campaign. If specific members of the committee are so certain they’re right, why did they have to take so many things out of context to prove their point?”
The industry trade group, the American Petroleum Institute, says it is focused on both providing secure sources of energy and addressing climate change at the same time.
“Our industry is focused on continuing to produce affordable, reliable energy while tackling the climate challenge, and any allegations to the contrary are false. The U.S. natural gas and oil industry has contributed to the significant progress the U.S. has made in reducing America’s CO2 emissions to near generational lows with the increased use of natural gas,” Megan Bloomgren, senior vice president of the American Petroleum Institute, told CNBC.
The API also pointed to the industry’s focus on developing carbon capture, utilization and storage (CCUS) and hydrogen technologies.
“We are poised to be a leader in the next generation of low carbon technologies, including CCUS and Hydrogen — technologies widely recognized to be critical to meet the world’s emissions reduction targets. API will continue to work with policymakers on both sides of the aisle for policies that support industry innovation and further the progress we’ve made on emissions reductions,” Bloomgren said.
Chevron declined to comment. In June, Chevron CEO Mike Wirth wrote an open letter to President Joe Biden saying that the oil company had produced the highest volume of oil and gas in its 143-year history in 2021. And Wirth pointed out that carbon emissions associated with segments of its oil and gas production was lower than global averages.
“At roughly 15 kg of CO2-equivalent per barrel, Chevron’s Permian Basin carbon intensity is some two-thirds lower than the global industry average. U.S. Gulf of Mexico production has carbon intensity just a fraction of the global industry average,” Wirth wrote. In the letter Wirth also said the oil company was investing $10 billion to reduce greenhouse gas emissions, scale carbon capture and hydrogen technologies, and grow its renewable liquid fuels production.
BP did not immediately respond to an email seeking comment.
GM’s Ultium battery plant votes overwhelmingly to unionize with UAW
GM’s first Ultium battery plant in Lordstown, Ohio has voted to join the United Auto Workers, with 98% of workers voting in favor of union representation.
Ultium is GM’s battery joint venture with LG Energy. GM will establish at least four factories in the US to build the batteries for their upcoming EVs. Just today, GM announced an additional $275 million investment in the second plant in Spring Hill, Tennessee.
The Lordstown/Warren plant in Ohio is already up and running, though, and producing batteries for GM’s current and upcoming EVs. The Hummer EV already uses Ultium batteries, and the Ultium-powered Equinox, Blazer, Silverado and Cadillac Lyriq are all expected in the next year. GM’s other current EV, the Chevy Bolt – which we just named Electrek’s EV of the year – does not use Ultium cells as it came out before Ultium was developed.
While US companies have largely relied on foreign-supplied batteries until now, the recently-passed Inflation Reduction Act included measures to encourage onshoring of US EV production, which has led several companies to announce battery factories in the US. An early draft of the bill included an additional tax credit for union-built EVs, but that credit didn’t make it to the final bill.
Labor has been experiencing somewhat of a renaissance in the US in the past year or two, as COVID-related supply disruptions and general levels of discontent among the populace have led workers to demand better treatment from employers. Several industries have seen surges in unionization efforts, which have also been aided by pro-union comments from President Joe Biden.
But US battery production has heretofore mainly been non-unionized, as the largest US battery producer, Tesla, does not have a union either for battery manufacturing or for auto production. There have been a few spurts of unionization efforts at Tesla’s plants, though they met retaliation from Tesla CEO Elon Musk and were not successful.
So today’s union vote at GM’s first battery plant was closely watched, as it could set the tone not only for GM’s electrification efforts, but labor in the US battery supply industry as a whole. A positive vote was expected, though perhaps not as near-unanimous as today’s 98% result.
UAW is eyeing battery factories as the industry transitions to electric vehicles, which have fewer parts and take less labor to build than traditional gas vehicles. This would lead to fewer workers required to build cars, though targeting battery workers could help buoy union membership.
The UAW released a short statement about the vote, stating:
Our entire union welcomes our latest members from Ultium. As the auto industry transitions to electric vehicles, new workers entering the auto sector at plants like Ultium are thinking about their value and worth. This vote shows that they want to be a part of maintaining the high standards and wages that UAW members have built in the auto industry.
Ray Curry, UAW President
One potential sticking point in today’s union deal relates to pay. Previously, GM has held the position that battery suppliers should command similar pay to other auto supply factories, around $20/hr, which is what Ultium hourly workers currently make. But mainline auto workers can be paid closer to $30/hour, and battery workers may argue that due to how integral the battery is to an EV, that they should be paid closer to final assembly line workers.
Podcast: Electrek Car of the Year, Tesla bringing back radar?, FSD failure, and more
This week on the Electrek Podcast, we discuss the most popular news in the world of sustainable transport and energy. This week, we discuss the Electrek Car of the Year, Tesla potentially brining back the radar, Tesla admitting failure to bring FSD to market, 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:
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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 p.m. ET (or the video after 5 p.m. ET):
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