Canadian Prime Minister Justin Trudeau has announced a massive deal with German automaker Volkswagen Group to implement its first electric vehicle plant outside of Europe in the country. Canada has promised the group billions in matched subsidies offered by the US government to construct its massive new battery gigafactory north.
While it was still under the tutelage of ousted CEO Herbert Diess, Volkswagen Group publicly outlined plans for six new battery gigafactories throughout Europe this decade, including a site in Skellefteå, Sweden, through a joint venture with NorthVolt scheduled to open this year.
This past February, VW Group announced that its Seat sub-brand would be revamping its production facilities in Spain to include a new battery facility for other group EVs as well. With three battery plants under construction and four more planned, Volkswagen Group suddenly paused development to await the EU’s response to the US Inflation Reduction Act.
Volkswagen Group then turned its battery production focus to North America. This past December, new CEO Oliver Blume called Canada “one logical option.” By March, however, the US appeared to be the clear target for the Group as it shared it was anticipating claiming between $9.5-$10.5 billion in subsidies and loans from the Inflation Reduction Act (IRA) over the lifetime of its pending battery plant.
As a free trade partner with the US looking to stay relevant in a booming EV production landscape, Canada said, “Sorry, not so fast.” Canada’s industry minister was able to negotiate a deal with Volkswagen that matches those US subsidies in exchange for building the battery factory a bit further north.
Volkswagen battery deal helps Canada keep pace with IRA
In order to lure Volkswagen Group to Canada, the government has agreed to subsidies that could top CAD 13 billion ($9.7 billion) over the course of the next decade that the battery plant is in operation. When complete, the new facility will be operated under Volkswagen Group’s PowerCo business unit and could very well become the largest manufacturing site in the entire country.
Prime Minister Trudeau’s industry minister François-Philippe Champagne negotiated the landmark contract, which will not only provide annual production subsidies to Volkswagen but also includes a CAD 700 million ($517M) grant toward the battery factory’s capital cost.
According to government officials, these negotiated terms match what VW would have received in subsidies from the US government should it have chosen the states as its new home. What’s more clever is that the negotiated deal is proportional to the Inflation Reduction Act. If the US subsidies go away, so do Volkswagen’s in Canada. If they are reduced, Canada’s will too.
Despite losing the bid, the US is still home to ID.4 production at its Chattanooga, Tennessee, plant, which will soon be joined by a new production facility to build upcoming Scout brand EVs in South Carolina.
As a North American country and free trade partner with the US, battery packs assembled in Canada should still enable some level of federal tax credits on future Volkswagen EVs in the US under new terms outlined in the Inflation Reduction Act, including fresh battery guidance detailed by the US Department of Treasury earlier this month.
While not everyone in Canada is elated by the eleven-figure financial commitment to Volkswagen, the industry minister argues the economic value the automaker brings to the country and its supply chain is worth far more than the subsidies. Champagne and his colleagues believe that to protect Canada’s position in automotive production, especially as it goes all-electric, the country must transcend the role as a mere source of critical minerals and become a genuine contributor to advanced EV manufacturing and zero emissions technology.
Being about two hours northeast of an automotive mecca like Detroit should help, as that’s where Volkswagen’s Canadian facility is being planned. It’s expected to have a footprint equivalent to 350 football fields and will create thousands of jobs in Ontario. Champagne stated that over the next 30 years, the Volkswagen battery plant is expected to generate over CAD 200 billion in value for Canada. If true, this deal could end up being worth tenfold in the long term.
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National Grid Renewables has broken ground on its 100 MW Apple River Solar Project in Polk County, Wisconsin.
The Wisconsin solar farm, which will use US-made First Solar Series 6 Plus bifacial modules, will be constructed by The Boldt Company, creating 150 construction and service jobs. Apple River Solar will generate over $36 million in direct economic benefits over its first 20 years.
Once it comes online in late 2025, Apple River Solar will supply clean energy to Xcel Energy, which serves customers throughout the Upper Midwest. According to National Grid Renewables, the solar farm will generate enough energy to power around 26,000 homes annually. It will also offset about 129,900 metric tons of carbon dioxide emissions each year – equivalent to taking 30,900 cars off the road.
“We are excited to see this project begin as it underscores our dedication to delivering clean, reliable and affordable energy to our customers,” said Karl Hoesly, President, Xcel Energy-Wisconsin and Michigan. “This project is an important step in those goals while bringing significant economic benefits to Polk County and the local townships.”
Electrekreported in February that Xcel Energy, Minnesota’s largest utility, expects to cut more than 80% – and possibly up to 88% – of its emissions by 2030, putting it on track to hit Minnesota’s goal of net zero by 2040. It also says it’s on track to achieve its clean energy goals for all the Upper Midwest states it serves – Minnesota, Wisconsin, North Dakota, South Dakota, and Michigan.
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Tesla has announced that it will finally deliver 500 kW charging as it is about to install its long-awaited V4 Supercharger cabinets.
The rollout of Supercharger V4 has been a strange one, to say the least.
Tesla has been deploying the new charging stations for two years and calling them “Supercharger V4”, but it has only been deploying the charging stalls.
Supercharger stations are made of two main parts: the stalls, which are where the charging cable is located, and the cabinets, which are generally located further back and include all the power electronics.
For all these new “Supercharger V4”, Tesla was actually using Supercharger V3 cabinets. This has been limiting the power output of the charging stations to 250 kW – although
Today, Tesla officially announced its “V4 Cabinet”, which the automaker claims will enable of “delivering up to 500kW for cars and 1.2MW for Semi.”
Here are the main features of the V4 Cabinet as per Tesla:
Faster charging: Supports 400V-1000V vehicle architectures, including 30% faster charging for Cybertruck. S3XY vehicles enjoy 250kW charge rates they already experience on V3 Cabinet — charging up to 200 miles in 15 minutes.
Faster deployments: V4 Cabinet powers 8 posts, 2X the stalls per cabinet. Lower footprint and complexity = more sites coming online faster.
Next-generation hardware: Cutting-edge power electronics designed to be the most reliable on the planet, with 3X power density enabling higher throughput with lower costs.
Tesla reports that its first sites with the new V4 Cabinets are going into permitting now. The company expects its first sites to open next year.
We recently reported about Tesla’s new Oasis Supercharger project, which includes larger solar arrays and battery packs to operate the charging station mostly off-grid.
Early in the deployment of the Supercharger network, Tesla promised to add solar arrays and batteries to all Supercharger stations, and Musk even said that most stations would be able to operate off-grid.
While Tesla did add solar and batteries to a few stations, the vast majority of them don’t have their own power system or have only minimal solar canopies.
Back in 2016, I asked Musk about this, and he said that it would now happen as Tesla had the “pieces now in place” with Supercharger V3, Powerpack V2, and SolarCity:
It took about 8 years, but it sounds like the pieces are now getting actually in place with Supercharger V4, Megapacks, and this new Oasis project.
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Hyundai has a new secret weapon it’s about ready to unleash. To revamp the brand in China and counter BYD’s surge, Hyundai is launching a new AI-powered EV next year. The new model will be Hyundai’s first dedicated electric car for the world’s largest EV market.
With the help of Haomo, a Chinese autonomous startup, Hyundai will launch its first EV equipped with generative AI. It will also be its first model designed specifically for China.
A Hyundai Motor official said (via The Korea Herald) the company is “working to load the software” onto the new EV model, “which will be released in the Chinese market next year.” The spokesperson added, “The level of autonomous driving is somewhere between 2 and 2.5.”
In comparison, Tesla’s Autopilot is considered a level 2 advanced driver assistance system (ADAS) on the SAE scale (0 to 5), meaning it offers limited hands-free features.
With Autopilot, you still have to keep your eyes on the road and hands on the steering wheel, or the system will notify you and eventually disengage.
Haomo’s system, DriveGPT, unveiled last spring, takes inspiration from the OpenAI’s popular ChatGPT.
The system can continuously update in real-time to optimize decision-making by absorbing traffic data patterns. According to Haomo, DriveGPT is used in around 20 models as it looks to play a bigger role in China.
Hyundai hopes new AI-powered EV boosts sales in China
Electric vehicle sales continue surging in China. According to Rho Motion, China set another EV sales record last month with 1.2 million units sold, up 50% from October 2023.
Over 8.4 million EVs were sold in China in the first ten months of 2024, a notable 38% increase from last year.
BYD continues to dominate its home market. According to Autovista24, BYD accounted for 32.9% of all PHEV and EV (NEV) sales in China through September, with over half of the top 20 best-selling EV models.
Tesla was second with a 6.5% share of the market, but keep in mind these numbers only include plug-in models (PHEV).
Like most foreign automakers, Hyundai is struggling to keep up with the influx of low-cost electric models in China. Beijing Hyundai’s sales have been slipping since 2017. Through September, Korean automaker’s share of the Chinese market fell to just 1.2%.
According to local reports, Hyundai is partnering with other local tech companies like Thundersoft, a smart cockpit provider, and others in China to power up its next-gen EVs
With its first AI-powered EV launching next year, Hyundai hopes to turn things around in the region quickly. The new model will be one of five to launch in China through 2026.
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