What’s good for America isn’t necessarily good for your friends across the pond – at least that is the central message to an urgent call to action from the EU this week against what it sees as “discriminatory” tax credits and incentives against European and Asian carmakers in the groundbreaking new Inflation Reduction Act.
President Biden’s flagship act provides tax credits on EVs produced in the US, Canada, and Mexico, all in a move to help make EVs more affordable and accessible to lower-income households and reduce carbon emissions. In addition, the IRA requires EV batteries, which are mostly now produced with minerals and battery cells imported from China, be made in North America, with at least half of all EV batteries coming from the region by 2024, and 100% by 2028. While this is meant to move business out of China, countries with their own vibrant EV industries, as in Europe and South Korea, say they too could be dealt a mighty blow.
What it all boils down to is a loss of jobs, and much-coveted green jobs to boot. EU officials claim the new legislation is unfair to foreign producers and puts undue pressure on European automakers to move their business stateside to take advantage of the billions of dollars of incentives on offer, hanging their once booming EV industries out to dry. In addition, the EU is claiming that these provisions could violate World Trade Organization rules, although an investigation could take up to two years to reach a judgment.
Meanwhile, the European Commission’s executive vice president Margrethe Vestager is playing the friend card: “As a matter of principle, you should not put this up against friends,” she told the Financial Times this week. “You have what we see as an unbalanced subsidy.”
South Korea, too, hasn’t minced words on this subject, saying the IRA violates trade rules and threatens the economic partnership between the two countries, with multiple senior Korean officials traveling to Washington to make their case. South Korean firms have invested heavily in EV battery productions in the US, to provide batteries not only for American companies but also Korean, Japanese, and European carmakers. By 2025, South Korean firms are expected to invest more than $13 billion in the US to boost battery production. Also, Hyundai and Kia announced they would funnel $5.5 billion into an EV and EV battery production facility in Georgia, producing some 300,000 EVs a year by 2025 and creating thousands of jobs.
Other major automakers as well are ramping up their EV and EV battery production in the US to take advantage of IRA incentives. Honda and South Korean battery maker LG Energy Solution announced a $4.4 billion investment in EV battery making in Ohio, where Honda already has three plants, all set to start production in 2025. Toyota has announced a $2.5 billion investment in a battery manufacturing plant in North Carolina. Audi just announced that it, too, is deciding on whether to build a US-based EV plant next year, while Volkswagen and Mercedes-Benz have also announced plans to build or source EV components in North America.
In the meantime, a source told the Financial Times that the European Commission was conducting an “exhaustive” survey of European automakers to gauge which might jump ship and relocate to the US – of course the European energy crisis could further tip the scales. But Vestager was reportedly heard saying that neither side wants to get into a subsidy race, and that the US “could have a better deal if the subsidies would be done in a way that is not discriminatory towards the EU.”
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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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