Volkswagen to focus on US battery plant while it awaits incentives of ‘EU Green Deal’
Volkswagen Group is reportedly pausing previously laid out plans for battery plants across Europe as it awaits the EU’s response to the Inflation Reduction Act in the US, which could offer the Group up to $10.5 billion in incentives. For now, Volkswagen will continue it progress in choosing a location of a US battery plant while it awaits what sort of conditions and/or incentives will come into play in what is being called the “EU Green Deal.”
Unlike other German automakers currently at odds with the EU Commission over the impending ban on new combustion vehicle sales by 2035, Volkswagen Group has instead doubled down on electrification and even increased its sales targets for passenger EVs.
While it was still in the care of ousted CEO Herbert Diess, the Group outlined plans for six new battery gigafactories throughout Europe this decade, including a site in Skellefteå, Sweden through a joint venture with NorthVolt scheduled to open this year.
Last month, we covered news that VW Group sub-brand Seat would be revamping its production facilities in Spain to include a new battery facility for other Group EVs as well. Looking ahead, Volkswagen has been exploring the location of a battery plant for Eastern Europe but said last fall that it would not share a final decision until sometime in the first half of 2023.
With three battery plants under construction and four more planned, Volkswagen Group is reportedly pausing further development as it awaits the EU’s response the the US’ Inflation Reduction Act – enacted legislation the Group believes can offer billions of dollars in incentives.
Volkswagen to prioritize US battery plant for now
Financial Times reports that Volkswagen Group has put a pin in plans for its pending battery plant in Eastern Europe to focus on a separate facility in the US. The reasoning behind this decision is the estimated $10.5 billion the global automaker could receive in incentives by bringing EV battery production to US soil.
Although European automakers like Volkswagen were initially against President Biden’s massive $369 billion subsidy package to bolster local EV and battery production, many have come around now that they’ve learned the benefits at their disposal for shifting production stateside.
Last week, Volkswagen told EU officials it is expecting to claim between $9.5-$10.5 billion in subsidies and loans from the Inflation Reduction Act (IRA) over the lifetime of its pending North American battery plant. As a result, the Group is honing in its development focus on the US facility while it waits to see how the EU will respond with its own subsidies package in what is being referred to as the “EU Green Deal.”
The EU Commission has been toiling away on its own local subsidies for EV and battery production, but industry executives have said it hasn’t been able to compete with the benefits of the IRA so far. In fact, a senior executive present at a Commission meeting held in Brussels last week said, “It looks pretty bad. There was an absence of concrete measures.”
We should learn just how bad (or good) those measures (or lack thereof) are next week when the EU Commission publishes a Net Zero Industry Act in response to the IRA. Meanwhile, Volkswagen says it will be looking for “the right framework conditions” before committing to build any more battery plants in Europe.
No decision on the location of the North American plant has been made by Volkswagen Group yet, or at least not shared publicly. The Group’s newest brand, Scout Motors recently announced it will set up its production footprint in the state of South Carolina, where we may also see Audi EV production someday, although that has not been confirmed.
Either way, Volkswagen has already secured raw materials vital to EV battery production from the Canadian government and should be ready to go in North America when it chooses its future home for the battery plant.
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Environment
Baidu- and Geely-backed JiYue brand unveils ROBO X EV that goes 0-100 km/h in under 1.9 sec
JiYue, a Chinese EV brand focused on delivering all-electric “robocars” to the masses, has unveiled its latest model, and it’s quite a deviation from its previous EVs—but in the best way. Earlier today, JiYue launched the ROBO X supercar, designed for high-speed racing. By high speed, we mean 0-100 km/h acceleration in under 1.9 seconds. My mouth is watering.
JiYue has only existed since 2021, when parent tech company Baidu announced it was expanding from software development into physical EV production, joining forces with multinational automotive manufacturer Geely.
The new “robotic EV” marque initially launched as JIDU with $300 million in startup capital before garnering an additional $400 million in Series A funding, led by Baidu, in January 2022.
In August 2023, Geely took on a larger role in JIDU alongside a greater financial stake as the brand reimagined itself as JiYue, inheriting the JIDU logo and its flagship model, the 01 ROBOCAR.
In December 2023, Baidu and Geely unveiled a second model called the JiYue 07. It was born from JIDU’s ROBO-02 concept, which debuted in 2023 and was designed to compete against the Tesla Model 3 in China.
The 07 finally launched in China earlier this year with 545 miles of range. With an all-electric SUV and sedan on the market, JiYue has unveiled an exciting new entry in the form of a performance supercar called the ROBO X. Check it out:
JiYue’s new ROBO X EV is available for pre-order now
JiYue showcased its new ROBO X hypercar in front of the crowd at the 2024 Guangzhou Auto Show earlier today. Similar to previous models but with a unique spin, JiYue described the ROBO X as an AI smart-driving supercar that, for the first time, blends artificial intelligence and autonomous driving into a high-performance, race-ready EV.
When we say “high performance,” we mean a quad motor liquid-cooled drive system that can propel the ROBO X from 0 to 100 km/h (0 to 62 mph) in under 1.9 seconds. JiYue called the new ROBO X a “performance beast” with “the perfect balance of excellent aerodynamic performance and high downforce.” JiYue CEO Joe Xia was even bolder in his statements about the ROBO X:
For the next 20 years, the design of supercars will bear the shadow of Robo X. This is the best design in the history of Chinese automobiles today, and it is a landmark presence.
Fighter-style airflow ducts bolster the EV’s aerodynamics, efficiency, and overall posture. Per JiYue, the two-seater ROBO X is expected to deliver a maximum range of over 650 km (404 miles).
The new supercar features falcon-wing doors, a carbon fiber integrated frame, and a professional racing HALO safety system offering 360° of support. The interior features an AI smart cockpit with SIMO real-time feedback to give drivers an immersive racing experience.
Furthermore, JiYue said the vehicle will utilize parent company Baidu’s Apollo self-driving technology, which could make it the first electric supercar to apply pure-vision ADAS technology that enables track-level autonomous driving.
Following today’s unveiling of the ROBO X, JiYue has officially opened up pre-orders in China for RMB 49,999 ($6,915). That said, reservation holders will need to be patient as JiYue shared that it doesn’t expect to begin mass production of the ROBO X until 2027.
What do you think? Will people be talking about the ROBO X for the next 20 years?
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This week on Electrek’s Wheel-E podcast, we discuss the most popular news stories from the world of electric bikes and other nontraditional electric vehicles. This time, that includes the launch of the Lectric XPedition 2.0, Yamaha e-bikes pulling out of North America, LiveWire unveils an electric scooter concept, PNY readying its cargo e-scooters for pilot testing, Royal Enfield’s first electric motorcycle, and more.
The Wheel-E podcast returns every two weeks on Electrek’s YouTube channel, Facebook, Linkedin, and Twitter.
As a reminder, we’ll have an accompanying post, like this one, on the site with an embedded link to the live stream. Head to the YouTube channel to get your questions and comments in.
After the show ends, the video will be archived on YouTube and the audio on all your favorite podcast apps:
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Here are a few of the articles that we will discuss during the Wheel-E podcast today:
Here’s the live stream for today’s episode starting at 9:30 a.m. ET (or the video after 10:30 a.m. ET):
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Crude oil futures were on pace Friday for loss for the week, as a supply gut and a strong dollar depresses the market.
U.S. crude oil is down more than 2% this week, while Brent has shed nearly 2%.
Here are Friday’s energy prices:
- West Texas Intermediate December contract: $68.56 per barrel, down 14 cents, or 0.2%. Year to date, U.S. crude oil has shed about 4%.
- Brent January contract: $72.36 per barrel, down 20 cents, or 0.28%. Year to date, the global benchmark has lost nearly 6%.
- RBOB Gasoline December contract: $1.99 per gallon, up 0.46%. Year to date, gasoline has fallen more than 1%.
- Natural Gas December contract: $2.70 per thousand cubic feet, down 2.98%. Year to date, gas has gained more than 4%.
The International Energy Agency has forecast a surplus of more than 1 million barrels per day in 2025 on robust production in the U.S. OPEC revised down its demand forecast for the fourth consecutive month as demand in China remains soft.
A strong dollar also hangs over the market, as the greenback has surged in the wake of President-elect Donald Trump’s election victory.
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