Hyundai delivered another strong performance in the third quarter as several popular EV models led to 27% EV sales growth. However, analysts believe with the new tax credit provisions from the Inflation Reduction Act, a drop in demand “seems inevitable” for foreign automakers like the Hyundai Group.
Despite plans to start construction on its first EV plant in the United States this month, Hyundai is one of the automakers that will lose eligibility for its electric models to qualify for the EV tax credit, according to the current rules.
Hyundai announced its intentions to build a dedicated electric vehicle facility in the United States in May, but since the Inflation Reduction Act was passed in August, the automaker has shortened its timeline.
The plant was initially slated to begin construction in early 2023, but the South Korean automaker has warned that the US EV tax credit rules can impact business.
Jose Munoz, global president, and chief operating officer at Hyundai, spoke at a Reuters Auto Conference, highlighting the significance of the EV tax credit.
It will be very, very astronomical if nothing happens, if nothing changes. The impact is huge. That’s why we’re taking actions through all the channels.
Meanwhile, the Hyundai Group, including Kia and Genesis, has been scaling EV production en route to claiming second place in terms of EV sales for the first half of 2022, behind only Tesla.
The high-flying Hyundai IONIQ 5 and Kia EV6 are leading the way with 3.2% and 3.0% of the overall US electric vehicle market this year to date. However, toward the end of the third quarter, the South Korean automaker saw its EV sales momentum slip as its federal tax credit expires.
Hyundai’s Q3 earnings, EV sales, and guidance
The release of the Hyundai IONIQ 6 and Genesis GV60 helped boost overall sales, with EVs claiming over 5% of the Hyundai Group’s total sales.
Even though Hyundai’s EV sales rose 27% in the third quarter of 2022, several analysts are questioning if the South Korean automaker can maintain its momentum in the United States without the assistance of a tax credit.
In the US market, the IONIQ 5 fell from 1,516 sales in August to 1,306 in September, down about 14%.
Lee Jae-il, an analyst at Eugene Investment & Securities, spoke about the impact, claiming:
The impact of the Inflation Reduction Act on Hyundai’s EV sales in the U.S. market seems inevitable as EV incentives are the key factor to U.S. EV shoppers.
Besides Hyundai’s electric vehicles, the automaker’s overall sales grew 30.6% from 2021, yet net profit plummeted over 52% due to recalls over engine issues that cost the company over $900 million.
Looking ahead, Hyundai expects between 19 to 20% sales revenue growth, up from the previous guidance of 13 to 14%. At the same time, the automaker lowered vehicle sales expectations from 4.32 million units to 4.01 million with higher input prices and ongoing supply chain bottlenecks.
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The US Department of Energy (DOE) has released an encouraging new report revealing that 90% of wind turbine materials are already recyclable using existing infrastructure, but tackling the remaining 10% needs innovation.
That’s why the Biden administration’s Bipartisan Infrastructure Law has allocated over $20 million to develop technologies that address these challenges.
Why this matters
The wind energy industry is growing rapidly, but questions about what happens to turbines at the end of their life are critical. Recyclable wind turbines means not only less waste but also a more affordable and sustainable energy future.
According to Jeff Marootian, principal deputy assistant secretary for the Office of Energy Efficiency and Renewable Energy, “The US already has the ability to recycle most wind turbine materials, so achieving a fully sustainable domestic wind energy industry is well within reach.”
The report, titled, “Recycling Wind Energy Systems in the United States Part 1: Providing a Baseline for America’s Wind Energy Recycling Infrastructure for Wind Turbines and Systems,” identifies short-, medium-, and long-term research, development, and demonstration priorities along the life cycle of wind turbines. Developed by researchers at the National Renewable Energy Laboratory, with help from Oak Ridge and Sandia National Laboratories, the findings aim to guide future investments and technological innovations.
What’s easily recyclable and what’s not
The bulk of a wind turbine – towers, foundations, and steel-based drivetrain components – is relatively easy to recycle. However, components like blades, generators, and nacelle covers are tougher to process.
Blades, for instance, are often made from hard-to-recycle materials like thermoset resins, but switching to recyclable thermoplastics could be a game changer. Innovations like chemical dissolution and pyrolysis could make blade recycling more viable in the near future.
Critical materials like nickel, cobalt, and zinc used in generators and power electronics are particularly important to recover.
Key strategies for a circular economy
To make the wind energy sector fully sustainable, the DOE report emphasizes the adoption of measures such as:
Better decommissioning practices – Improving how turbine materials are collected and sorted at the end of their life cycle.
Strategic recycling sites – Locating recycling facilities closer to where turbines are decommissioned to reduce costs and emissions.
Advanced material substitution – Using recyclable and affordable materials in manufacturing.
Optimized material recovery –Developing methods to make recovered materials usable in second-life applications.
Looking ahead
The DOE’s research also underscores the importance of regional factors, such as the availability of skilled workers and transportation logistics, in building a cost-effective recycling infrastructure. As the US continues to expand its wind energy capacity, these findings provide a roadmap for minimizing waste and maximizing sustainability.
More information about the $20 million in funding available through the Wind Turbine Technology Recycling Funding Opportunity can be found here. Submission deadline is February 11.
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Mazda is finally stepping up with plans to build its first dedicated EV. The upcoming Mazda EV will be made in Japan and based on a new in-house platform. Here’s what we know about it so far.
The first dedicated Mazda EV is coming soon
Although Mazda isn’t the first brand that comes to mind when you think of electric vehicles, the Japanese automaker is finally taking a step in the right direction.
Mazda revealed on Monday that it plans to build a new module pack plant in Japan for cylindrical lithium-ion battery cells.
The new plant will use Panasonic Energy’s battery cells to produce modules and EV battery packs. Mazda plans to have up to 10 GWh of annual capacity at the facility. The battery packs will power Mazda’s first dedicated EV, which will also be built in Japan using a new electric vehicle platform.
Mazda said it’s “steadily preparing for electrification technologies” under its 2030 Management Plan. The strategy calls for a three-phase approach through 2030.
The first phase calls for using its existing technology. In the second stage, Mazda will introduce a new hybrid system and EV-dedicated vehicles in China.
The third and final phase calls for “the full-fledged launch” of EVs and battery production. By 2030, Mazda expects EVs to account for 25% to 40% of global sales.
Mazda launched the EZ-6, an electric sedan, in China last October. It starts at 139,800 yuan, or around $19,200, and is made by its Chinese joint venture, Changan Mazda.
Based on Changan’s hybrid platform, the electric sedan is offered in EV and extended-range (EREV) options. The all-electric model gets up to 600 km (372 miles) CLTC range with fast charging (30% to 80%) in 15 minutes.
At 4,921 mm long, 1,890 mm wide, and 1,485 mm tall with a wheelbase of 2,895 mm, Mazda’s EZ-6 is about the size of a Tesla Model 3 (4,720 mm long, 1,922 mm wide, and 1,441 mm tall with a 2,875 mm wheelbase).
Inside, the electric sedan features a modern setup with a 14.6″ infotainment, a 10.1″ driver display screen, and a 50″ AR head-up display. It also includes zero-gravity reclining seats and smart features like voice control.
The EZ-6 is already off to a hot sales start, with 2,445 models sold in November. According to Changan Mazda, the new EV was one of the top three mid-size new energy vehicle (NEV) sedans of joint ventures sold in China in its first month listed.
Will Mazda’s first dedicated EV look like the EZ-6? We will find out with Mazda aiming to launch the first EV models on its new in-house platform in 2027. Stay tuned for more.
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A view of offshore oil and gas platform Esther in the Pacific Ocean on January 5, 2025 in Seal Beach, California.
Mario Tama | Getty Images
President-Elect Donald Trump said Tuesday that he will reverse President Joe Biden‘s ban on offshore drilling along most of the U.S. coastline as soon as he takes office.
“I’m going to have it revoked on day one,” Trump said at a news conference, though he indicated that reversing the ban might require litigation in court.
Biden announced Monday that he would protect 625 million acres of ocean from offshore oil and gas drilling along the East and West coasts, the eastern Gulf of Mexico, and Alaska’s Northern Bering Sea. The president issued the ban through a provision of the 1953 Outer Continental Shelf Lands Act.
An order by Trump attempting to reverse the ban will likely end up in court and could ultimately be struck down.
During his first term, Trump tried to issue an executive order to reverse President Barack Obama’s use of the law to protect waters in the Arctic and Atlantic from offshore drilling. A federal court ultimately ruled that Trump’s order was not lawful and reversing the ban would require an act of Congress.
The Republican Party has a majority in both chambers of the new Congress.