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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.

These requirements went into place rather suddenly – the final assembly provision went into effect immediately, and the battery sourcing provisions were set to go into effect in December. Their implementation was pushed back until March, and the Treasury should announce those guidelines by the end of this week.

This sudden implementation rankled the international community, with foreign automakers and governments decrying it as a protectionist move. Since then, perhaps to smooth over these complaints, the IRS has suggested that foreign-assembled cars could still qualify if they’re leased, an interpretation that was pushed for by South Korean automakers. Though the famously anti-EV Toyota opposed that interpretation, even though the company would benefit from it.

Today, it looks as if Japan has found a different way around these requirements, or at least one of them, by signing a narrow free trade agreement with the US solely for battery critical minerals. The agreement was signed by US trade representative Katherine Tai and Japanese ambassador to the US Koji Tomita.

So today’s agreement will potentially add Japan to the list of free trade countries that can extract or process the critical minerals in EV batteries.

The US is currently negotiating separately with the European Union for a similar agreement, though that has not yet born fruit. We may learn more about it in the coming days or weeks, since the deadline for the Treasury’s decision is fast approaching.

However, all of these agreements are contingent on the Treasury’s interpretation of the bill. In the bill itself, the language specifies “any country with which the United States has a free trade agreement in effect.”

The full list of US free trade countries is available here, and does not include Japan. Japan and the US do not actually have a full free trade agreement. The countries agreed in 2019 to implement some free trade measures in agricultural and industrial goods, and intend to pursue an expanded free trade agreement, but this has not been agreed to yet.

So it’s up to the Treasury now to decide if this new agreement counts under its interpretation of what a “free trade agreement” is. Which we should learn more about this week.

Electrek’s Take

Well, this is an interesting last-minute development.

It was fair for other countries to be annoyed by the speed with which the Inflation Reduction Act went into effect, as it takes time to plan and build battery and car factories, and the US government should have given more lead time. However, given the difficult situation in Congress, with one party presenting a unified front acting against any sort of climate action or environmental stewardship, we got the bill we could get.

So agreements like this seem like a good way to help lessen the blow of the bill, and perhaps to repair the wounded relationships between the US and its allies due to the way the bill was implemented. In the end, it’s the biggest climate action bill ever passed by any nation, and on the world stage that should be commended, as long as we can make other countries feel like they’re being treated fairly.

But it’s also interesting that this is happening with Japan, and not other countries that have shown… a little more interest in EVs. I would have expected an agreement like this to happen faster with Korea, which is home to three large battery suppliers, LG, Samsung SDI and SK On. But perhaps that’s what we’ll hear about next.

Not to spend too much time on my “Japan is falling way behind on EVs” horse, but currently the country doesn’t have a lot of battery vehicles to offer. Panasonic is a major battery supplier, but many of its battery operations are in Nevada in cooperation with Tesla, and Tesla’s minerals (for Li-ion batteries, at least) are largely sourced from Australia and Canada. And Japan is not known to have significant reserves of battery critical minerals, though they have discovered some deep-sea deposits within Japanese territory that could potentially be exploited. Japan could also still process minerals extracted overseas, which would then qualify due to being processed in a free trade country.

Or, maybe we can hope that this is a signal of change on the part of the Japanese auto industry, and that they are finally turning more toward EVs. We’ve seen some moves in this direction – the new CEOs of both Honda and Toyota are finally recognizing that more action is needed on EVs. So removing this roadblock might help, in some small way.

Photo: US President Biden hosts Japan PM Kishida at the White House, May 2022. License

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SkyDrive completes several eVTOL demonstration flights at Expo 2025 in Osaka [Video]

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SkyDrive completes several eVTOL demonstration flights at Expo 2025 in Osaka [Video]

Japanese eVTOL developer SkyDrive has officially begun successful eVTOL demonstration flights using its flagship model above Expo 2025 in Osaka.

SkyDrive Inc. may not be the first name that comes to mind when you think of eVTOL flights, but the Japanese startup continues to make steady progress in the development of its aerial technology across two continents.

Like many of its competitors, a significant milestone SkyDrive is working to achieve is scaled eVTOL production. It intends to do so with the help of Suzuki, which previously signed on to manufacture the company’s “SKYDRIVE” eVTOL aircraft in Japan.

In the summer of 2023, SkyDrive announced that it was establishing a US headquarters in South Carolina and had secured its first eVTOL pre-order. Its order book continues to grow as SkyDrive works toward achieving eVTOL flight certification in both the US and Japan.

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SkyDrive is perhaps not as prominent in the eVTOL news scene because we have yet to see any bona fide flights take place. In fact, it wasn’t until February 2025 that we saw real-life images of the SKYDRIVE eVTOL rather than renderings.

SkyDrive has made its presence known at the Expo 2025 in Osaka, Japan, where, as promised, it has begun demonstration eVTOL flights – one of which you can view in the video below.

eVTOL flights
Source: SkyDrive

Per an update from SkyDrive, it has successfully completed a series of demonstration flights above Expo 2025 in Osaka. The eVTOL flight loops departed the expo’s vertiport, then flew over the ocean in Osaka Bay before returning to base.

Each of the eVTOL flights lasted a few minutes and was completed between July 31 and August 24, 2025. The video footage below is from a successful demonstration flight completed on August 16. With several successful flights now under its belt this past month, SkyDrive shared plans for a second showcase route coming soon.

Beginning September 15, SkyDrive said it will move its eVTOL demonstration flights from Yumeshima Island, where Expo 2025 is being held, to the Osakako Vertiport near the “densely populated Osaka neighborhood.”

Those flights will operate the same SKYDRIVE (Model SD-05) eVTOL from Expo 2025, beginning September 15 through the 23rd. SkyDrive said it believes the demonstrations from the Osakako Vertiport, which Osaka Metro Co. operates, will mark “another significant step towards the wider public acceptance of eVTOLs as a regular means of daily transport.”

Commercial operations of SkyDrive’s technology are expected to begin in Osaka and parts of southern Japan sometime in 2028. The August 16 eVTOL demonstration flight is below.

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Ford’s new Puma EV just got got a big price cut

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Ford's new Puma EV just got got a big price cut

The Puma was already the best-selling car in the UK last year. As the first EV to receive the full UK Electric Car Grant, Ford’s new Puma Gen-E is even more affordable than the hybrid model.

Ford’s Puma Gen-E becomes first EV to get full UK grant

Ford has become the first automaker to snag the maximum £3,750 ($5,000) discount from the UK’s recently launched Electric Car Grant program.

The Puma was Ford’s most popular vehicle in Europe last year and the UK’s top-selling car (EV or gas), but the electric version promises to deliver even more.

With the discount, the Puma EV’s starting price falls to just £26,245 ($35,500), which is even cheaper than the hybrid version. According to Ford, the all-electric Puma Gen-E is now available for only £290 ($390) per month. Ford’s electric van, the E-Tourneo Courier, also qualifies for the full grant.

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There are 28 electric vehicles eligible for the UK’s electric car grant, but the Ford Puma Gen-E and E-Tourneo Courier are the only two set to receive the full £3,750 ($5,000) discount.

Ford-Puma-EV-grant
The electric Ford Puma Gen-E (Source: Ford)

The other 26 electric cars, including the new Nissan Micra EV, Volkswagen ID.3, and Renault 5, are eligible for a £1,500 ($2,000) grant.

Lisa Brankin, Ford UK Chair and Managing Director, said, “We’re proud to be at the forefront of the electric vehicle conversation, and with even more competitive pricing and a comprehensive support package, it’s never been easier to make the switch.”

Ford-Puma-EV-interior
The interior of the Ford Puma Gen-E (Source: Ford)

Ford launched the electric version of its top-seller in December, calling it “our best ever Puma.” The Puma Gen-E delivers up to 233 miles (523 km) range and can charge from 10% to 80% about 23 minutes.

When driving in the city, Ford says the electric crossover has a range of up to 325 miles (523 km). Despite its small size, the Puma EV offers more interior space than many larger SUVs, with a luggage room of up to 574 L. And that’s not including the 43 L frunk.

Ford-Puma-EV-grant
Ford Puma Gen-E (Source: Ford)

On top of the grant, Ford is offering a free home charger (including standard installation) and up to 10,000 miles of free charging through its Ford Power Promise program.

Compared to the Puma EcoBoost Hybrid, Ford said those who opt for the electric version can save as much as £127 ($170) per month.

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Elon Musk is lying about Tesla’s self-driving and I have the DMs to prove it

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Elon Musk is lying about Tesla's self-driving and I have the DMs to prove it

Over the last few days, Elon Musk has been making several statements claiming that autonomous driving systems that use lidar and radar sensors are more dangerous than Tesla’s camera-only computer vision approach because the system gets confused when interpreting data from different sensors.

It’s not only false, Musk told me directly that he agreed that radar and vision could be safer than just vision, right after he had Tesla remove the radars from its vehicles.

Tesla has taken a controversial approach, using only cameras as sensors for driving inputs in its self-driving technology. In contrast, most other companies use cameras in conjunction with radar and lidar sensors.

When Tesla first announced that all its cars produced onward have the hardware capable of “full self-driving” up to level 5 autonomous capacity in 2016, it included a front-facing radar in its self-driving hardware suite.

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However, in 2021, after not having achieved anything more than a level 2 driver assist (ADAS) system with its self-driving effort, Elon Musk announced a move that he called “Tesla Vision”, which consists of moving Tesla’s self-driving effort only to use inputs from cameras.

Here’s what I wrote in 2021 about Musk sharing his plan for Tesla to only use cameras and neural nets:

CEO Elon Musk has been hyping the vision-only update as “mind-blowing.” He insists that it will lead to a true level 5 autonomous driving system by the end of the year, but he has gotten that timeline wrong before.

By May 2021, Tesla had begun removing the radar sensor from its lineup, starting with the Model 3 and Model Y, and later the Model S and Model X in 2022.

Tesla engineers reportedly attempted to convince Musk to retain the use of radar, but the CEO overruled them.

We are now in 2025, and unlike what Musk claimed, Tesla has yet to deliver on its self-driving promises, but the CEO is doubling down on his vision-only approach.

The controversial billionaire is making headlines this week for a series of new statements attacking Tesla’s self-driving rivals and their use of radar and lidar sensors.

Earlier this week, Musk took a jab at Waymo and claimed that “lidar and radar reduce safety”:

Lidar and radar reduce safety due to sensor contention. If lidars/radars disagree with cameras, which one wins? This sensor ambiguity causes increased, not decreased, risk. That’s why Waymos can’t drive on highways.We turned off radars in Teslas to increase safety. Cameras ftw.

The assertion that “Waymos can’t drive on highways” is simply false. Waymo has been conducting fully driverless employee testing on freeways in Phoenix, San Francisco, and Los Angeles for years, and it is expected to make this technology available to rider-only rides soon.

Tesla is in a similar situation with its Robotaxi: they don’t drive on freeways without an employee supervisor.

Musk later added:

LiDAR also does not work well in snow, rain or dust due to reflection scatter. That’s why Waymos stop working in any heavy precipitation. As I have said many times, there is a role for LiDAR in some circumstances and I personally oversaw the development of LiDAR for the SpaceX Dragon docking with Space Station. I am well aware of its strengths and weaknesses.

It’s not true that Waymos can’t work in “any heavy precipitation.”

Here’s a video of a Waymo vehicle driving by itself in heavy rain:

In comparison, Tesla’s own Robotaxi terms of service mention that it “may be limited or unavailable in inclement weather.”

Last month, Tesla Robotaxi riders had their rides cut short, and they were told it was due to the rain.

There’s plenty of evidence that Musk is wrong and misleading with these statements, but furthermore, he himself admitted that radar sensors can make Tesla’s vision system safer.

‘Vision with high-res radar would be better than pure vision’

In May 2021, as Tesla began removing radar sensors from its vehicle lineup and transitioning to a vision-only approach, I was direct messaging (DMing) Musk to learn more about the surprising move.

In the conversation, he was already making the claim that sensor contention is lowering safety as he did this week in new comments attacking Waymo.

He wrote at the time:

The probability of safety will be higher with pure vision than vision+radar, not lower. Vision has become so good that radar actually reduces signal/noise.

However, what was more interesting is what he said shortly after claiming that:

Musk admitted that “vision with high-resolution radar would be better than pure vision”. However, he claimed that such a radar didn’t exist.

In the same conversation, I pointed Musk to existing high-definition millimeter wave radars, but he didn’t respond.

It was still early for that technology in 2021, but high-definition millimeter wave radars are now commonly used by companies developing autonomous driving technologies, including Waymo.

Waymo uses six high-definition radars in its system:

In short, Musk was already concerned about sensor contention in 2021, but he admitted that the problem would be worth solving with higher-definition radars, which already existed then and are becoming more common now.

Yet, he criticizes companies using radar and lidar, which work similarly to high-resolution radars but on different wavelengths, for even attempting sensor fusion.

It’s not impossible because Tesla can’t do it

Part of the problem here appears to be that Musk thinks something doesn’t work because Tesla can’t make it work, and he doesn’t want to admit that others are solving the sensor fusion problem.

Tesla simply couldn’t solve sensor fusion, so it focused on achieving autonomy solely through camera vision. However, those who continued to work on the issue have made significant progress and are now reaping the rewards.

Waymo and Baidu, both of which have level 4 autonomous driving systems currently commercially operating without supervision, unlike Tesla, have heavily invested in sensor fusion.

Amir Husain, an AI entrepreneur who sits on the Boards of Advisors for IBM Watson and the Department of Computer Science at UT Austin, points to advancements in the use of Kalman filters and Bayesian techniques to solve sensor noise covariance.

He commented on Musk’s statement regarding the use of radar and lidar sensors:

The issue isn’t a binary disagreement between two sensors. It generates a better estimate than any individual sensor can produce on its own. They all have a margin of error. Fusion helps reduce this.

If Musk’s argument held, why would the human brain use eyes, ears, and touch to estimate object location? Why would aircraft combine radar, IRST, and other passive sensors to estimate object location? This is a fundamental misunderstanding of information theory. Every channel has noise. But redundancy reduces uncertainty.

Musk’s main argument to focus on cameras and neural nets has been that the roads are designed for humans to drive and humans drive using their eyes and brain, which are the hardware and software equivalent of cameras (eyes) and neural nets (brain).

Now, most other companies developing autonomous driving technologies are also focusing on this, but to surpass humans and achieve greater levels of safety through precision and redundancy, they are also adding radar and lidar sensors to their systems.

Electrek’s Take

Musk painted Tesla into a corner with its vision-only approach, and now he is trying to mislead people into thinking that it is the only one that can work, when there’s no substantial evidence to support this claim.

Now, let me be clear, Musk is partly correct. When poorly fused, multi-sensor data introduces noise, making it more challenging to operate an autonomous driving system.

However, who said that this is an unsolvable problem? Others appear to be solving it, and we are seeing the results in Waymo’s and Baidu’s commercially available rider-only taxi services.

If you can take advantage of radar’s ability to detect distance and speed as well as work through rain, fog, dust, and snow, why wouldn’t you use it?

As he admitted in the DMs with me in 2021, Musk is aware of this – hence why he acknowledged that high-resolution radar combined with vision would be safer than vision alone.

The problem is that Tesla hasn’t focused on improving sensor fusion and radar integration in the last 4 years because it has been all-in on vision.

Now, Tesla could potentially still solve self-driving with its vision system, but there’s no evidence that it is close to happening or any safer than other systems, such as Waymo’s, which use radar and lidar sensors.

In fact, Tesla is still only operating an autonomous driving system under the supervision of in-car employees with a few dozen cars, while Waymo has been doing rider-only rides for years and operates over 1,500 autonomous vehicles in the US.

Just like with his “Robotaxi” with supervisors, Musk is trying to create the illusion that Tesla is not only leading in autonomy, but it is the only one that can solve it.

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