Vietnamese EV maker VinFast hit a massive milestone Friday after receiving the green light to begin construction on its first US-based EV manufacturing plant in North Carolina.
VinFast to begin construction on US EV manufacturing plant
After debuting its electric vehicles to the world at the LA Auto Show and delivering the first EV models to ever be sold in Vietnam, VinFast revealed its intention to become a global brand.
Moving quickly, the EV maker first announced last March it had signed a memorandum of understanding with the government of North Carolina to establish its first North American manufacturing facility in the state.
VinFast initially said it would invest up to $2 billion in the first phase of the site in Chatham County, North Carolina, as it aimed to begin construction by September 2022.
The first phase is expected to have an output of 150,000 EVs per year when fully operational, while the second phase will focus on the battery production side of things.
After receiving the air quality permit from the North Carolina Department of Environmental Quality, Vinfast says it will “move forward” with construction. The next step will be obtaining a permit from the US Army of Engineers designed to minimize water and wetland damages. Yet, VinFast says the site is specifically designed to avoid impact to wetlands and isn’t worried it will hold them up.
VinFast VF 8 City Edition (Source: VinFast)
Although VinFast didn’t specify when construction would begin, the EV maker is still aiming to begin production at the factory in mid-2024.
To expand its brand and access to resources in the states, VinFast filed the necessary paperwork with the SEC to go public and hold an IPO on US markets.
Electrek’s Take
After shipping its first batch of VinFast VF 8 EVs to the US in November, it has since delayed customer deliveries, claiming it was loading the vehicles with the latest software.
VinFast says it plans to hand over the first VF 8 models to customers in the second half of February, but the second batch won’t be shipped until the second quarter of 2023.
The EV maker recently introduced a new promotional program for the VF 8 City Edition to keep pace in a competitive US electric vehicle market as it looks to establish a brand presence. For now, VinFast will continue manufacturing EVs at its Haiphong factory in Vietnam and shipping them to the US.
Once the North Carolina plant is online, it will help VinFast cut costs from delivery and streamline EV production in the US.
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The new version is extremely disappointing as it is $9,000 more expensive than the Cybertruck RWD was supposed to be, and while it has more range than originally planned, Tesla has removed a ton of features, including some important ones.
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Here’s what you lose with the Cybertruck RWD:
You get a single motor RWD instead of Dual Motor AWD
You lose the adaptive air suspension
No motorized tonneau, but you have an optional $750 soft tonneau
Textile seats instead of vegan leather
Fewer speakers
No rear screen for the backseat
No power outlets in the bed
The last one has been pretty disappointing, as it can’t be that expensive to include, and Tesla is basically removing $20,000 worth of features for only a $10,000 difference with the Dual Motor Cybertruck.
But the automaker appears to have come up with a partial solution.
Tesla has launched a $80 ‘Powershare Outlet Adapter’ on its online store:
When combined with Tesla’s Gen 3 Mobile Connector plugged into the Cybertruck’s charge port, it gives you two 120V 20A power outlets.
Tesla describes the product:
Powershare Outlet Adapter allows you to power electronic devices using Mobile Connector and your Powershare-equipped vehicle’s battery. To use this adapter, plug Mobile Connector’s handle into your Powershare-equipped vehicle’s charge port and connect the adapter to the other end of your Mobile Connector. You can then use this adapter to plug in any compatible electronic device you want to power.
For now, Tesla says that this only works for the Cybertruck and you have to buy the $300 mobile charging connector, which doesn’t come with the truck.
Electrek’s Take
I guess it’s better than nothing, but I’m still super disappointed in the new trim. It makes no sense right now.
Not only you lose the 2x 120V, 1x 240V outlets in the bed, but you also lose the 2x 120V outlets in the cabin. Now, you can can pay $380 to have a “Macgyver” solution for 2 120V outlets in the back.
I’m convinced that Tesla designed this trim simply to make the $80,000 Cybertruck AWD look better value-wise.
It looks like Tesla took out about $20,000 worth of features while giving buyers only a $10,000 discount.
It’s just the latest example of Tesla losing its edge.
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The International Maritime Organization, a UN agency which regulates maritime transport, has voted to implement a global cap on carbon emissions from ocean shipping and a penalty on entities that exceed that limit.
After a weeklong meeting of the Marine Environment Protection Committee of the IMO and decades of talks, countries have voted to implement binding carbon reduction targets including a gradually-reducing cap on emissions and associated penalties for exceeding that cap.
Previously, the IMO made another significant environmental move when it transitioned the entire shipping industry to lower-sulfur fuels in 2020, moving towards improving a longstanding issue with large ships outputting extremely high levels of sulfur dioxide emissions, which harm human health and cause acid rain.
Today’s agreement makes the shipping industry the first sector to agree on an internationally mandated target to reduce emissions along with a global carbon price.
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The agreement includes standards for greenhouse gas intensity from maritime shipping fuels, with those standards starting in 2028 and reducing through 2035. The end goal is to reach net-zero emissions in shipping by 2050.
Companies that exceed the carbon limits set by the standard will have to pay either $100 or $380 per excess ton of emissions, depending on how much they exceed limits by. These numbers are roughly in line with the commonly-accepted social cost of carbon, which is an attempt to set the equivalent cost borne by society by every ton of carbon pollution.
Money from these penalties will be put into a fund that will reward lower-emissions ships, research into cleaner fuels, and support nations that are vulnerable to climate change.
That means that this agreement represents a global “carbon price” – an attempt to make polluters pay the costs that they shift onto everyone else by polluting.
Why carbon prices matter
The necessity of a carbon price has long been acknowledged by virtually every economist. In economic terms, pollution is called a “negative externality,” where a certain action imposes costs on a party that isn’t responsible for the action itself. That action can be thought of as a subsidy – it’s a cost imposed by the polluter that isn’t being paid by the polluter, but rather by everyone else.
Externalities distort a market because they allow certain companies to get away with cheaper costs than they should otherwise have. And a carbon price is an attempt to properly price that externality, to internalize it to the polluter in question, so that they are no longer being subsidized by everyone else’s lungs. This also incentivizes carbon reductions, because if you can make something more cleanly, you can make it more cheaply.
Many people have suggested implementing a carbon price, including former republican leadership (before the party forgot literally everything about how economics works), but political leadership has been hesitant to do what’s needed because it fears the inevitable political backlash driven by well-funded propaganda entities in the oil industry.
For that reason, most carbon pricing schemes have focused on industrial processes, rather than consumer goods. This is currently happening in Canada, which recently (unwisely) retreated from its consumer carbon price but still maintains a price on the largest polluters in the oil industry.
But until today’s agreement by the IMO, there had been no global agreement of the same in any industry. There are single-country carbon prices, and international agreements between certain countries or subnational entities, often in the form of “cap-and-trade” agreements which implement penalties, and where companies that reduce emissions earn credits that they can then sell to companies that exceed limits (California has a similar program in partnership with with Quebec), but no previous global carbon price in any industry.
Carbon prices opposed by enemies of life on Earth
Unsurprisingly, entities that favor destruction of life on Earth, such as the oil industry and those representing it (Saudi Arabia, Russia, and the bought-and-paid oil stooge who is illegally squatting in the US Oval Office), opposed these measures, claiming they would be “unworkable.”
Meanwhile, island nations whose entire existence is threatened by climate change (along with the ~2 billion people who will have to relocate by the end of the century due to rising seas) correctly said that the move isn’t strong enough, and that even stronger action is needed to avoid the worse effects of climate change.
The island nations’ position is backed by science, the oil companies’ position is not.
While these new standards are historic and need to be lauded as the first agreement of their kind, there is still more work to be done and incentives that need to be offered to ensure that greener technologies are available to help fulfill the targets. Jesse Fahnestock, Director of Decarbonisation at the Global Maritime Forum, said:
While the targets are a step forward, they will need to be improved if they are to drive the rapid fuel shift that will enable the maritime sector to reach net zero by 2050. While we applaud the progress made, meeting the targets will require immediate and decisive investments in green fuel technology and infrastructure. The IMO will have opportunities to make these regulations more impactful over time, and national and regional policies also need to prioritise scalable e-fuels and the infrastructure needed for long-term decarbonisation.
One potential solution could be IMO’s “green corridors,” attempts to establish net-zero-emission shipping routes well in advance of the IMO’s 2050 net-zero target.
And, of course, this is only one industry, and one with a relatively low contribution to global emissions. While the vast majority of global goods are shipped over the ocean, it’s still responsible for only around 3% of global emissions. To see the large emissions reductions we need to avoid the worst effects of climate change, other more-polluting sectors – like automotive, agriculture (specifically animal agriculture), construction and heating – all could use their own carbon price to help add a forcing factor to drive down their emissions.
Lets hope that the IMO’s move sets that example, and we see more of these industries doing the right thing going forward (and ignoring those enemies of life on Earth listed above).
The agreement still has to go through a final step of approval on October, but this looks likely to happen.
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In the Electrek Podcast, we discuss the most popular news in the world of sustainable transport and energy. In this week’s episode, we discuss the new Tesla Cybertruck RWD, more tariff mayhem, Lucid buying Nikola, and more.
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