Contract manufacturing superpower Magna International announced it is investing over $500 million to erect two new manufacturing facilities and expand a third in the state of Michigan. The new and expanded Magna facilities will develop components specifically for the growing market of electric vehicles and are expected to create over 1,500 new jobs in Michigan.
Even if you aren’t already aware of Magna International, there’s a very high chance you’ve driven a vehicle with at least one component the multi-national contract manufacturer has built. With over 130 manufacturing and assembly facilities in North America, alongside footprints in Europe, Asia, South America, and Africa, Magna is one of the names in building quality auto components.
As the automotive industry as a whole pivots steadily toward electrified models, Magna has adapted its manufacturing as well. By developing everything from electrified powertrains, to ADAS systems, and entire EVs, Magna is providing several OEMs with the technology and components to go all-electric.
For instance, its current facility in St. Clair, Michigan, is where Magna produces steel EV battery enclosures for GMC’s Hummer EV. According to an announcement today, Magna is allocating over $500 million to expand that current Michigan site and build two additional facilities to support the production of vital EV components.
Magna shared its latest expansion plans in a press release today, outlining how it intends to add to its existing footprint of 32 facilities and over 10,000 employees in Michigan alone.
In addition to the expansion of battery enclosure manufacturing in St. Clair, Michigan, Magna will erect new facilities to build powertrains in Shelby Township and seating components in Detroit. Magna’s chief marketing and sales officer Eric Wilds spoke to the company’s new $500 million commitment:
With our unmatched capabilities across our product areas, we continue to work with our customers to help them meet their mobility needs. We are excited to be able to bring new business, more investment and additional jobs to Michigan and we thank the state for its support.
According to The Detroit News, the Michigan Strategic Fund board approved $10.2 million in state program grants for Magna International in support of its $500 million investment to expand. With its own financial commitment and state grants in place, Magna looks to deliver the following in the state of Michigan:
Add a 740,000-square-foot expansion to the existing St. Clair facility, creating an expected 920 new jobs
Erect an entirely new 200,000-square-foot greenfield powertrain facility in Shelby Township to supply battery tray components to EVs from OEMs that is expected to create 155 new jobs
Build a new 110,000-square-foot Magna brownfield facility (expected to create 490 new jobs when it reaches full production) in Detroit, Michigan, to supply seat frames, trim, and foam to “a US-based automaker”
This is a savvy move by a major contract manufacturer as more and more automakers look to move their vehicle and battery component assemblies onto US soil to qualify for federal tax credits under revised terms in the recently signed Inflation Reduction Act.
For example, the upcoming Fisker Ocean originally qualified for credits but no longer will beginning January 1, 2023 because it will be assembled overseas by Magna International’s Austrian-based division, Magna-Steyr.
As we reported back in September, Magna-Steyr is considering a contract assembly plant in North America and is currently evaluating potential locations based on how sunny and windy it is, hinting at intentions to build a climate-friendly facility powered by renewables.
Since Magna International is the top contract manufacturer on the continent, we’d expect many more foreign automakers to work with the company to establish US manufacturing and assembly. With today’s latest news from Michigan, Magna appears to already be making moves to prepare for such production expansions on US soil.
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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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