The Biden administration is worried about the “imminent wave” of Chinese battery factories being built in Mexico, which could further intensify the trade war between the US and China.
Chinese companies MG, BYD, and Chery have all been scouting sites in Mexico and talking with officials, according to a report in the Financial Times. MG plans to build a $2 billion factory, while BYD is ramping up investments worth hundreds of millions for its own factory. According to the Financial Times, an unnamed Chinese company is also building a $12 billion battery plant, which has US officials “worried.” BYD recently met ministers from at least four Mexican states, and the governor of Nuevo León, the state where Tesla is planning to build its gigafactory, said that BYD was building a factory there, according to reports.
Mexico, however, is delicately balanced between an enticing influx of Chinese investments and the risk of upsetting its North American neighbor, the report said.
Mexico is already the second-largest importer of Chinese cars after Russia. According to El País, supply company LGS reports that over the past year Mexico has purchased 260,000 Chinese vehicles. But obviously, the stakes are much higher than just ramping up sales in Mexico.
Mexico, the world’s seventh-largest auto-producing country, is in a prime position to benefit both from the global supply chain disruptions brought on by the COVID-19 pandemic and the ever-intensifying US-China trade war. Cheaper labor, a “broad-based car supply chain,” and access to the North American free trade deal USMCA, all sweeten the pot, the report said.
Four Chinese electric vehicle companies are looking to set up shop in Mexico, according to the Financial Times. Meanwhile, both the US and Europe are setting strict limits on Chinese-made vehicles, alongside investigations into discriminatory subsidies in China. US’s Inflation Reduction Act is hoping to curb Chinese dominance on the market by serving up stricter restrictions on Chinese-made electric vehicles, batteries, and other parts, and pouring money into building out its own supply chain. If Chinese automakers are building in Mexico, this throws a wrench into the plan, in that China can out-win and outshine with high-quality EVs at lower prices.
Last month, members of Congress wrote a letter to US Trade Representative Katherine Tai flagging their concerns, writing: “We are concerned by how the People’s Republic of China (PRC) is preparing to flood the United States and global markets with automobiles, particularly electric vehicles (EV), propped up by massive subsidies and long-standing localization and other discriminatory policies.” The US has stated that it is not trying to block investments from China funneling into Mexico, but rather work toward applying trade rules between the two countries.
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It’s been a decidedly weird month in the heavy truck world, and it just keeps getting weirder. Hydrogen shipping startup Hyroad Energy has acquired Nikola Motor’s hydrogen assets and IP, including 113 HFCEV semis, spare parts, and refueling infrastructure.
Hyroad Energy calls itself a leader in hydrogen-powered Class-8 trucks and trucking-as-a-service solutions, and aims to deliver, “reliability, safety, and cost-efficiency for superior results,” according to the company’s website. “We help fleets embrace hydrogen power without the complexities of going it alone. We manage the risks, finance the assets, and leverage economies of scale to drive down costs.”
Those claims became a lot more credible last week, when the company grew its hydrogen semi fleet from (apparently) 0 to 113 Class 8 semi trucks following the acquisition of Nikola’s orphaned hydrogen assets, which include the trucks, a number of spares, and the operational infrastructure needed to keep them on the road.
Hyroad CEO Dmitry Serov says that this acquisition, “significantly advances Hyroad’s mission to provide turnkey hydrogen trucking solutions that reduce the complexity and risk typically associated with adopting zero-emission technologies,” adding, “these trucks and the corresponding equipment and systems represent immediate capacity to put proven hydrogen fuel cell technology on the road to meet demand for zero-emission trucks.”
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Key Biscayne, a small barrier island off the coast of Miami, has become one of the only places in the United States where all electric bikes are completely banned, regardless of speed class, rider age, or motor power.
This week, the village council voted 4-3 to keep its sweeping e-bike ban in place, rejecting a proposed measure that would have repealed the restriction and allowed adults to ride electric bicycles on the island. The vote effectively makes permanent a controversial emergency ban enacted last year, which was originally framed as a temporary public safety measure following the death of a local cyclist.
Under the current rule, no electric bicycles of any kind are allowed anywhere in Key Biscayne, including Class 1 pedal-assist bikes that are legal on most public bike paths across Florida. The ban applies to both residents and visitors and has been enforced with warnings and fines.
Before the vote, there was major support for repealing or modifying the e-bike ban. Even the Key Biscayne Police Department had recommended loosening the ban, suggesting that the village adopt a more balanced policy allowing adults to ride responsibly while continuing to restrict use by minors. Despite that recommendation, the council chose to maintain the full prohibition.
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The issue has deeply divided the affluent community, where many residents support the ban due to concerns about reckless youth riders and congestion on narrow paths. Others argue that the policy is overly broad and punishes responsible adults, tourists, and commuters who rely on e-bikes as a sustainable and accessible transportation option.
With no exemption even for low-speed pedal-assist bikes, Key Biscayne stands out as a rare enclave where electric bicycles remain entirely illegal – one of few in the US – highlighting the growing tensions around e-mobility in tight-knit communities grappling with safety, access, and change.
What do you think? Should e-bikes be completely banned in these exclusive communities, or should there be leeway for creating common-sense laws that promote transportation while ensuring the safety of all road users?
Why is Europe getting all the fun new electric vehicles? After its electric SUV, the EV3, has already become a top seller in Europe, Kia is doubling down with new models, like the EV5 and EV4. Thanks to the new tariffs, Kia is pushing for EVs in Europe while the US gets left on the back burner.
Which EVs is Kia launching in Europe and the US?
After launching the EV3 in late 2024, Kia’s compact electric SUV “started with a bang,” as the most popular retail EV in the UK in January.
Through the first half of the year, the Kia EV3 has remained the UK’s best-selling EV among retail customers, with nearly 6,300 registrations. Including commercial vehicles, it was the fourth most popular EV overall.
Kia looks to build on its success with a flurry of new EVs on the way. After opening orders for the EV4 hatchback in June, its first all-electric hatch, Kia introduced the Fastback version, or sedan model, less than two weeks later.
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And then, last month, we got our first look at the upgraded EV5, the European version of Kia’s Tesla Model Y-sized electric SUV, which has been on sale in China since 2023.
Kia EV6 (right), EV3 (middle), and EV9 (right) Source: Kia
Kia plans to begin EV4 deliveries in Europe in September. The hatchback will be the first EV Kia builds in Europe at its Zilina plant in Slovakia. Kia said the move will speed up deliveries. However, the sedan will still be built in South Korea.
The EV5 will arrive in Europe later this year. Kia is launching the EV5 in North America in early 2026, but it will be “exclusive to the Canadian market.”
Kia EV5 GT-Line (Source: Kia)
Next year, Kia will introduce the smaller, more affordable EV2. The EV2 will sit underneath the EV3 as Kia’s new entry-level electric vehicle.
Outside of the EV4, which Kia will launch in the US in early 2026, no other models have been confirmed for the US. Although it was spotted testing in the US again this week, the last official release from Kia specifically said the EV5 will be exclusive to the Canadian market in North America.
Kia Concept EV2 (Source: Kia)
The EV4 will arrive, but only as a sedan. It will feature up to 330 miles of driving range and a built-in NACS port for charging at Tesla Superchargers.
Kia has yet to reveal prices, but the EV4 is expected to start at around $35,000. In the UK, the hatch starts at £34,695 ($47,700) with up to 388 miles WLTP driving range. The Fastback, or sedan variant, is priced from £40,895 ($55,000) with a driving range of up to 380 miles.
Kia EV4 models during safety testing in Europe (Source: Kia UK)
And that’s not even touching the PV5, Kia’s first electric van. Kia is launching the PV5 Passenger and Cargo models across Europe, but whether it will arrive in the US is still up in the air.
Electrek’s Take
Kia’s decision to prioritize Europe over the US is thanks to the Trump Administration’s new tariffs on vehicle imports. Imported vehicles from South Korea are subject to a 15% tariff.
On top of this, the $7,500 federal tax credit is set to expire at the end of September, which will make the US EV market even more competitive.
Kia’s electric vehicle sales are already down significantly this year. Through July, Kia has sold nearly half as many EV9 and EV6 models as it did in 2024. The Korean auto giant is expected to offset slower EV sales in the US with new models arriving in Europe.
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