VinFast gets donated EV battery company from Chairman

Published

7 months ago

October 11, 2023

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EV maker VinFast (VFS) just gained an edge. Vingroup Chairman and Vietnam’s richest person, Mr. Pham Nhat Vuong, announced Wednesday he would donate 99.8% of EV battery company VinES to VinFast.

Vingroup is Vietnam’s largest conglomerate, founded and owned by Mr. Pham. The company has a hand in everything from EVs and battery tech to golf courses and hospitals.

To accelerate growth, the billionaire has been injecting funds into VinFast, its electric vehicle and e-scooter company. Mr. Pham recently pledged to make $2.5 billion available for VinFast through loans and grants, with $1 billion in personal funding.

As other EV startups like Rivian, Lucid, Fisker, and others have found, expanding production and sales can be costly.

Despite rising EV sales, the company’s losses reached $622.9 million in the third quarter, up 20% from last year. However, VinFast has an advantage – a source of funding.

VinFast expects to receive $1.2 billion over the next six months as it expands into new markets. The company received another gift Wednesday as Vuong donated VinES, Vingroup’s battery company, to VinFast.

VinFast merges with EV battery company VinES

Vingroup’s chairman announced he will donate 99.8% of VinES Energy Solutions shares to VinFast.

VinES is another company under the Vingroup umbrella that focuses on researching, building, and manufacturing lithium-ion batteries. The company has in-house R&D, manufacturing, testing, and validation capacity.

Established in 2021, VinES is developing batteries for electric vehicles, power tools, energy storage, and other mobility uses like e-scooters.

The battery company is based in Vietnam but has a presence in the US, Canada, the UK, Korea, Taiwan, and more.

The move will help VinFast improve battery production and development time with the ability to leverage resources.

Through the business merger, VinFast expects to save at least 5% to 7% on battery costs. The company will borrow $462 million to finance the acquisition, which Vuong has agreed to provide interest-free grants to help cover.

Under the terms, VinFast will acquire all VinES intellectual property for battery cells, battery packs, manufacturing facilities, technology, partnerships, and supplier contracts.

The agreement is a big first step as VinFast looks to compete globally with a fully integrated production chain.

Electrek’s Take

Securing battery resources is one of the most critical factors for future EV growth, and automakers are racing to lock up their supply.

With a 99.8% donation, VinFast just got a gift. The company will take on $462 million in interest-free debt, but in return, it will gain access to all of VinES IP rights and global network.

VinFast reiterated its target of delivering between 40,00 and 50,000 EVs this year. Through the first nine months, the company has delivered 21,342. Most have been sold to Green and Smart Mobility (GSM), another Vingroup company.

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Environment

JPMorgan’s calls for a reality check on energy transition are sensible, UAE energy minister says

Published

5 hours ago

April 29, 2024

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JPMorgan’s calls for a reality check on energy transition are sensible, UAE energy minister says

UAE energy minister on JPMorgan urging the need for a 'reality check' on the energy transition

JPMorgan’s calls for a “reality check” on the world’s energy transition goals and pathway is a “sensible,” the UAE’s energy minister told CNBC.

“We need always, whenever we put up predictions, especially long term ones, to have a reality check,” Suhail Al Mazrouei told CNBC’s Dan Murphy in Riyadh, Saudi Arabia on the sidelines of the World Economic Forum.

In a recent note to client, JPMorgan warned that the world needed a “reality check” on its efforts to move from fossil fuels to renewables, pointing out that it could take “generations” to reach net-zero targets.

Higher interest rates, inflation and the ongoing wars in Ukraine and the Middle East are setting back efforts to reduce the use of fossil fuels like oil, coal and gas, the report said.

“I think it’s a very sensible article,” said Al Mazrouei. The minister, however, highlighted that the circumstances and financial capabilities of each country on undertaking the energy transition goals will vary.

The world is not the same… Some can afford it. They worked on fiscal changes, they adjusted their energy costs. Others have not.

Suhail Al Mazrouei

UAE’s Minister of Energy

“The world is not the same … Some can afford it. They worked on fiscal changes, they adjusted their energy costs. Others have not, [they] cannot afford to do it,” he added.

The world’s governments agreed in the 2015 Paris climate accord to limit global average temperature to well below 2°C above pre-industrial levels, and pursue efforts to limit the temperature rise to 1.5°C. To do that, emissions need to be reduced by 45% by 2030 and reach net zero by 2050.

A higher interest rate environment is also making it costlier for the world to transition to a net zero global economy, energy consultancy Wood Mackenzie said in a recent note.

Higher interest rates disproportionately affect renewables and nuclear power, said Peter Martin, Wood Mackenzie’s head of economics, adding that high capital intensity and low returns mean future projects will be at risk.

“The higher cost of borrowing negatively affects renewables and nascent technologies, compared to more established oil and gas, and metals and mining sectors, which remain somewhat insulated,” he said.

Just this month, Scotland’s government scrapped its 2030 climate target, with its Net Zero Minister Mairi McAllan saying the goal is “out of reach.”

She added that “severe budgetary restrictions imposed by the UK government” had a part to play in the retreat. The country had pledged to pare back emissions of greenhouse gases by 75% by 2030, compared to 1990 levels.

Major oil companies such as BP and Shell also trimmed back on climate targets this year.

The UAE is one of the countries that signed up to triple the world’s capacity for nuclear energy by the year 2050.

Environment

RIZON class 4 and 5 electric MD trucks arrive in Canada

Published

14 hours ago

April 28, 2024

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RIZON class 4 and 5 electric MD trucks arrive in Canada

RIZON Truck Enters Canadian Market with its Groundbreaking Electric Class 4 and 5 Vehicles

Daimler’s new, all-electric truck brand made its Canadian debut this week with the official market launch of its battery electric class 4 and 5 medium duty work trucks.

After making its North American debut at the 2023 ACT Expo in Anaheim, California, Daimler Truck’s RIZON brand has continued on a steady march towards production with initial preorders set to open this June. But it won’t just be Americans who can order a new RIZON electric box truck – Canadians will be able to add them to their fleets at the same time.

“Canada is very advanced regarding green energy and infrastructure and is a natural next step for RIZON’s second market,” explains Andreas Deuschle, the Global Head of RIZON. “We are very happy to bring our zero-emission solution to Canadian customers. They are proven OEM trucks with the latest technology from Daimler Truck.”

Modernism and mandates

RIZON electric truck interior; via Daimler Truck.

Along with California and a handful of other US states, the Canadian government has plans to limit (or outright ban) the use of diesel trucks on its roads. In the case of Canada, the nation has committed to a zero emissions goal by 2050 – but Daimler could have gotten there without launching a new brand.

So, why is Daimler launching a new brand?

RIZON is about reaching new customers with a chassis that’s been designed from the ground-up to be an EV. These customers might be new to Daimler, or looking to replace an aging fleet of Isuzu or (more likely) Mitsubishi Fuso cabovers with something a little more modern.

What they’ll find in a RIZON, then, is a smooth, quiet, and car-like ride that will make the “step up” from something like a Ford E-Transit easier than they might think.

Our own Jameson Dow got to drive a RIZON e18L model at an event hosted by Velocity Truck Centers at Irwindale Speedway last year, and came away impressed with the truck’s smooth acceleration and adjustable regenerative braking.

RIZON will offer four model variants for Canadian customers, the e16L, e16M, e18L, and the e18M, with a range of configurations and options ranging from 7.25 to 8.55 ton GVWRs.

Electrek’s Take

There’s definitely a place in the North American market for an agile, easy-to-drive medium duty truck like the RIZON, and Daimler’s nationwide network of Freightliner and Western Star dealers should give first time MD buyers a bit more peach of mind than they might get from a startup brand.

You can check out the specs on each of the RIZON electric models, below, then let us know what you think of these new cabover EVs in the comments.

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Environment

777 hp electric overland concept from Italdesign bows in Beijing [video]

Published

15 hours ago

April 28, 2024

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777 hp electric overland concept from Italdesign bows in Beijing [video]

Italdesign Quintessenza Is A Piece Of Italian Overlanding Art

The all-new, all-electric Italdesign Quintessenza concept is a high-tech Italian take on the Porsche Dakar concept that’s just begging to be put into production.

Making its debut at the Beijing Auto Show, the Italdesign Quintessenza concept embodies both the dynamic prowess of a GT and the versatile adaptability of a pick-up truck. At least, that’s what its makers say. And, if your idea of a pickup truck leans more towards “Subaru Brat” than “Ford F-150 Lightning,” that’s probably right!

The rear section of the Quintessenza converts from a “hatchback” to an open “pickup” bed in true Brat fashion. The rear seats are designed to flip 180-degrees backwards, providing a rear-facing, panoramic “stargazing” mode that promises, “(the) experience and feeling of connection with nature and the outside world.”

Stargazing mode

In its more conventional GT “mode,” the Quintessenza is arguably the best-looking Italdesign concept to come out in years, with vertical lighting elements up front and aggressively-sculpted rear haunches that this writer thinks would be a natural for Audi.

Those design elements aren’t just aesthetic – they’re loaded with electronics. “Two aerodynamic fins that integrate the ADAS systems are present on the upper back of the roof, at the level of the C-pillars,” reads the official release. “They map the surrounding environment when the satellite signal is poor, and offer multifunction lights indicating the car’s driving mode and braking when the hard top is removed.”

Quintessenza vertical elements

So, what kind of vehicle is the Italdesign Quintessenza? Is it a true overland GT, in the style of the Porsche Dakar or 911 SC/RS (the rally car that became the 959)? Is it a high-end spin on the classic Subaru Brat? A futuristic Ute for traversing the Australian outback? Or is it something else entirely?

That’s above our pay grades – but you, dear readers? You guys know what’s up, so check out the official Quintessenza launch video (below), then let us know what you think of Italdesign’s latest in the comments section at the bottom of the page.