Billion-dollar battery plant pauses construction amid electric vehicle and tariff uncertainty
COLUMBIA, S.C. (AP) — A Japanese company has halted construction on a $1.6 billion factory in South Carolina to help make batteries for electric BMWs, citing 'policy and market uncertainty.'
While AESC didn't specify what those problems are, South Carolina's Republican governor said the company is dealing with the potential loss of federal tax breaks for electric vehicle buyers and incentives for EV businesses as well as tariff uncertainties from President Donald Trump's administration.
'What we're doing is urging caution — let things play out because all of the these changes are taking place,' Gov. Henry McMaster said.
AESC announced the suspension in construction of its plant in Florence on Thursday,
'Due to policy and market uncertainty, we are pausing construction at our South Carolina facility at this time,' the company's statement said.
AESC promised to restart construction, although it didn't say when, and vowed to meet its commitment to hire 1,600 workers and invest $1.6 billion. The company said it has already invested $1 billion in the Florence plant.
The battery maker based in Japan also has facilities in China, the United Kingdom, France, Spain and Germany. In the U.S., AESC has a plant in Tennessee and is building one in Kentucky. The statement didn't mention any changes with other plants.
The South Carolina plant is supposed to sell battery cells to BMW, which is building its own battery assembly site near its giant auto plant in Greer. BMW said the construction pause by AESC doesn't change its plans to open its plant in 2026.
AESC has already rolled back its South Carolina plans. They announced a second factory on the Florence site, but then said earlier this year that their first plant should be able to handle BMW's demand. That prompted South Carolina officials to withdraw $111 million in help they planned to provide.
The company is still getting $135 million in grants from the South Carolina Department of Commerce and $121 million in bonds and the agency said a construction pause won't prompt them to claw back that offer.
South Carolina is investing heavily in electric vehicles. Volkswagen-owned Scout Motors plans to invest more than $4 billion and hire 10,000 people for a plant to build its new electric SUVs scheduled to open in 2027.
The state has for decades made big bets on foreign manufacturers like BMW, Michelin and Samsung that have paid off with an economic boom this century, but there is uneasiness that Trump's flirtation with high tariffs might stagger or even ruin those important partnerships.
McMaster told people to relax as state and business leaders are talking to Trump's administration and things will work out.
'I think the goal of the president and the administration is to have robust economic growth and prosperity and there is no doubt there has to be changes made in our international trade posture and President Trump is addressing that,' McMaster told reporters Thursday.
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Winnipeg Free Press
17 minutes ago
- Winnipeg Free Press
Indigenous-owned Dugald café all about bannock, brew and belonging
DUGALD — The Grey Wolf Café in Dugald is holding its grand opening this weekend and if early reviews are any indication, traffic along neighbouring Highway 15 will be busier than normal. 'You can feel a wonderful spirit as you walk through the door,' wrote one person on the coffee shop's social media page, days after the First Nations-owned enterprise hosted a soft opening in mid-May. 'The bannock was fluffy and tasty… and don't even get me started on the coffee,' commented another. MIKAELA MACKENZIE / FREE PRESS Tanya Clarke named Grey Wolf Cafe in Dugald, which opens this weekend after her father, who was bestowed the traditional name Grey Wolf Man after his death. 'Great prices, friendly staff… 6/5 in our books,' came one more. 'We've only been open for (three) weeks but we already have our fair share of regulars, including a group of 10 or 12 ladies who'll join a few tables together and stay for a couple of hours, plus students who pop in for caramel lattés and macchiatos,' says owner Tanya Clarke, seated in the tastefully decorated spot situated directly across the street from the Springfield Curling Club. Clarke, a mother of four and grandmother of one, laughs as she recalls a piece of wisdom she received from the manager of Lift Coffee & Tea in nearby Oakbank, when the Grey Wolf Café was still in the formative stage. 'They told me opening a café is like having a child — you can forget about sleeping for the first six months or so,' she says, noting she has invited various dignitaries, including Chief Larry Barker from her home community of Hollow Water First Nation, to this weekend's festivities. 'What I've since discovered is that's the perfect metaphor. There are definitely days when I've felt like I was floating on my feet, not so much from staying up all night fretting over numbers, but more from wondering what else we can do to make coming here a positive experience for everyone.' 'They told me opening a café is like having a child – you can forget about sleeping for the first six months or so'–Tanya Clarke Clarke, a mediator, leadership coach and professional development trainer based out of Yellowquill University College, split her time growing up between Transcona and Interlake districts such as Lundar and Komarno. Her father, who was Anishinaabe, was a residential school survivor. It wasn't until 2016 — five years before he died at 79 — that he began openly discussing that period of his life with his four children. 'My cousins grew up in community but we didn't, and there were definitely occasions of me feeling like I didn't belong,' says Clarke, who was seven when her mother, who was of German descent, died following a prolonged illness. 'When I did find out more about my dad, whose name was George but went by Buddy, things started to make sense for me. I was able to process a lot of what I'd been dealing with — or lacking — when I was younger.' Clarke and her partner Kevin moved to Dugald three years ago. Last June, she was out for a walk with their dog Blue when she noticed there was a vacant space in Dugald Station, a multi-tenant strip mall. The self-described coffee aficionado had always dreamed of running a café of her own, and because her youngest was about to graduate high school, she figured she might actually have the necessary free time to do so. Not to mention that nothing comparable existed in the town of about 800 — a number she understood would continue to grow over the coming years. MIKAELA MACKENZIE / FREE PRESS Grey Wolf Cafe came to be with the support of First Peoples Economic Growth Fund, an organization that assists First Nations entrepreneurs. After discussing the notion with her family, she set up a meeting with the First Peoples Economic Growth Fund, an organization that encourages and supports First Nations people in Manitoba who are delving into entrepreneurship. She next put together a multi-detailed, 63-page business plan, listing everything from desired menu items to job descriptions for prospective staff to projected sales. The venture required a tag, of course. Clarke says it was an easy decision to go with Grey Wolf for Grey Wolf Man, the traditional name her father received at a ceremony that was held following his death. 'When I was thinking about what to call it, Grey Wolf Café just made sense,' she says, crediting her 29-year-old daughter Sierra for coming up with the howling-wolf logo that adorns one of the café's bay windows. 'And because I do a lot of cultural-awareness training, I felt like it was a good, positive way to celebrate culture not just by honouring my dad, but also anybody else who attended a residential school.' She received the keys to the site on Dec. 1, at which point she promised herself she'd be serving her first cuppa joe by the beginning of February — a timeline she quickly realized wasn't viable, given the amount of updating that was required. New flooring, new wainscoting, a fresh coat of paint, a brick-encased gas fireplace built from scratch, she says, listing some of the renovations she undertook with the assistance of Kevin, her kids and her new landlord. MIKAELA MACKENZIE / FREE PRESS A Red Seal chef from York Factory First Nation helped with menu items like the bannock breakfast sandwich. When Clarke wasn't busy making things over, she was spending hours taste-testing as many as 20 coffee blends, prepared with beans roasted in the province. She also recruited Dana Constant, a Red Seal chef from York Factory First Nation she knew from volunteering at Folklorama's First Nations pavilion, to lend a hand on the food side of things. 'We definitely wanted bannock for the breakfast sandwiches and Dana, who is 28 and brilliant, came in and worked with my son Vincenzo. Between the two of them, they arrived at three different (breakfast) sandwiches, as well as a lunch menu that, for now, includes a turkey-BLT and a ham-and-Swiss, both served on ciabatta.' (There is also a selection of pastries and for the younger set, soft-serve ice cream.) Oh those, Clarke smiles, when a visitor asks about a set of handsome wooden armchairs positioned around a live-edge table. Her father gave them to her years ago, and as soon as she decided to open a café she enlisted the services of Anishinaabe textile and interior designer Destiny Seymour to recover them with one of her Indigenous-inspired patterns. Fabian Sanderson (no relation to writer) is the chief executive officer of the First Peoples Economic Growth Fund. While the organization has in the past aided businesses such as gas bars and convenience stores, Sanderson says what they are particularly interested in is working with places where 'restoration… perhaps some reconciliation' is part of the agenda. 'Obviously there are a lot of advancements that have been made — which is fantastic — but there are still prejudices that are alive and well today,' Sanderson says. MIKAELA MACKENZIE / FREE PRESS Vincenzo Marinelli prepares lunch sandwiches. 'So when you have a company that comes up like this, sometimes it's throwing a dart and hoping it lands because you might have a community that supports it or you might have one that totally rejects it, because of lack of understanding or ignorance. That's why for us, it's super exciting to say, 'Hey, this is what an Indigenous business looks like.'' Sanderson says he and his colleagues feel like 'proud parents' whenever a venture they're involved with begins to get its feet under it and attain its goals. Weekday Evenings Today's must-read stories and a roundup of the day's headlines, delivered every evening. 'To have somebody like Tanya who has kids and who wants to create a business to help support her family is fantastic,' he continues. 'Unfortunately, you still don't see a lot of inter-generational prosperity within the Indigenous community — you see it all over in other areas of the world — so when we witness something that has the potential to be carried on by the next generation, we do whatever we can to help them achieve that success.' Besides running the café, Clarke, who currently has seven employees, all from the general area, intends to market bagged coffee under the Grey Wolf banner at the retail level. That includes one type, Buddy's Blend, named for her dad. She'll also be designating space inside the 23-seat locale — occupancy can be expanded to 37 for anticipated book readings and corporate get-togethers — where Indigenous artisans such as Caroline Cheekie of Cheeky Beader can sell their wares on a consignment basis. 'And my long-term goal would be to have more Grey Wolf Cafés, right?' she says, adding whenever she's unsure of next steps, she seeks guidance from more knowing sorts. MIKAELA MACKENZIE / FREE PRESS Grey Wolf Cafe will sell bagged coffee, along with wares from Indigenous artisans on a consignment basis. 'I have my dad's photo on the fireplace mantle and if I'm ever stuck, I'll smudge and we'll talk. Mom, too.' MIKAELA MACKENZIE / FREE PRESS Lexi Taylor feeds a sweet treat to a canine customer. David Sanderson Dave Sanderson was born in Regina but please, don't hold that against him. Read full biography Our newsroom depends on a growing audience of readers to power our journalism. If you are not a paid reader, please consider becoming a subscriber. Our newsroom depends on its audience of readers to power our journalism. Thank you for your support.
Toronto Sun
26 minutes ago
- Toronto Sun
Israeli forces recover body of Thai hostage from Gaza
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Toronto Sun
39 minutes ago
- Toronto Sun
Russian attack on eastern Ukrainian city of Kharkiv kills 3, wounds 21
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SUBSCRIBE TO UNLOCK MORE ARTICLES Subscribe now to read the latest news in your city and across Canada. Unlimited online access to articles from across Canada with one account. Get exclusive access to the Toronto Sun ePaper, an electronic replica of the print edition that you can share, download and comment on. Enjoy insights and behind-the-scenes analysis from our award-winning journalists. Support local journalists and the next generation of journalists. Daily puzzles including the New York Times Crossword. REGISTER / SIGN IN TO UNLOCK MORE ARTICLES Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account. Share your thoughts and join the conversation in the comments. Enjoy additional articles per month. Get email updates from your favourite authors. THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK. Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account Share your thoughts and join the conversation in the comments Enjoy additional articles per month Get email updates from your favourite authors Don't have an account? Create Account The barrage — the latest in near daily widescale attacks — included aerial glide bombs that have become part of a fierce Russian onslaught in the all-out war, which began on Feb. 24, 2022. The intensity of the Russian attacks on Ukraine over the past weeks has further dampened hopes that the warring sides could reach a peace deal anytime soon — especially after Kyiv recently embarrassed the Kremlin with a surprising drone attack on military airfields deep inside Russia. 'More pressure on Moscow is required' Ukraine's air force said that Russia struck with 215 missiles and drones overnight, and Ukrainian air defences shot down and neutralized 87 drones and seven missiles. Several other areas in Ukraine were also hit, including the regions of Donetsk, Dnipropetrovsk, Odesa, and the city of Ternopil, Ukrainian Foreign Minister Andrii Sybiha said in an X post. Your noon-hour look at what's happening in Toronto and beyond. By signing up you consent to receive the above newsletter from Postmedia Network Inc. Please try again This advertisement has not loaded yet, but your article continues below. 'To put an end to Russia's killing and destruction, more pressure on Moscow is required, as are more steps to strengthen Ukraine,' he said. The Russian Defence Ministry on Saturday said that its forces carried out a nighttime strike on Ukrainian military targets, including ammunition depots, drone assembly workshops, and weaponry repair stations. There was no comment from Moscow on the reports of casualties in Kharkiv. Kharkiv's mayor, Ihor Terekhov, said that the strikes also damaged 18 apartment buildings and 13 private homes. Terekhov said that it was 'the most powerful attack' on the city since the start of Russia's full-scale invasion. Children among the wounded Kharkiv's regional governor, Oleh Syniehubov, said two districts in the city were struck with three missiles, five aerial glide bombs and 48 drones. Among the wounded were two children, a baby boy and a 14-year-old girl, he added. This advertisement has not loaded yet, but your article continues below. In the Dnipropetrovsk province further south, two women, ages 45 and 88, were wounded, according to local Gov. Serhii Lysak. Russian shelling also killed a couple in their 50s in the southern city of Kherson, close to the front lines, local Gov. Oleksandr Prokudin reported in a Facebook post. Meanwhile, Russia's defence ministry said that its forces shot down 36 Ukrainian drones overnight, over the country's south and west, including near the capital. Drone debris wounded two civilians in the suburbs of Moscow, local Gov. Andrei Vorobyov reported. Rescuers carry a wounded woman after Russian attack that hit a residential building in Kharkiv, Ukraine, Saturday, June 7, 2025. Photo by Andrii Marienko / AP No breakthrough on a peace deal On Friday, Russia struck six Ukrainian territories, killing at least six people and wounding about 80. Among the dead were three emergency responders in Kyiv, one person in Lutsk and two people in Chernihiv. This advertisement has not loaded yet, but your article continues below. A U.S.-led diplomatic push for a settlement has brought two rounds of direct peace talks between delegations from Russia and Ukraine, though the negotiations delivered no significant breakthroughs. The sides remain far apart on their terms for an end to the fighting. Ukraine has offered an unconditional 30-day ceasefire and a meeting between its Ukrainian President Volodymyr Zelenskyy and Russian counterpart Vladimir Putin to break the deadlock. But the Kremlin has effectively rejected a truce and hasn't budged from its demands. U.S. President Donald Trump said this week that Putin told him Moscow would respond to Ukraine's attack on Russian military airfields on June 1. Trump also said that it might be better to let Ukraine and Russia 'fight for a while' before pulling them apart and pursuing peace. Trump's comments were a remarkable detour from his often-stated appeals to stop the war and signalled that he may be giving up on recent peace efforts. This advertisement has not loaded yet, but your article continues below. Later on Saturday, Russia and Ukraine each accused the other of endangering plans to swap 6,000 bodies of soldiers killed in action, agreed upon during direct talks in Istanbul on Monday that otherwise made no progress towards ending the war. Vladimir Medinsky, a Putin aide who led the Russian delegation, said that Kyiv called a last-minute halt to an imminent swap. In a Telegram post, Medinsky said that refrigerated trucks carrying more than 1,200 bodies of Ukrainian troops from Russia had already reached the agreed exchange site at the border when the news came. In response, Ukraine said Russia was playing 'dirty games' and manipulating facts. According to the main Ukrainian authority dealing with such swaps, no date had been set for repatriating the bodies. In a statement Saturday, the agency also accused Russia of submitting lists of prisoners of war for repatriation that didn't correspond to agreements reached on Monday. It wasn't immediately possible to reconcile the conflicting claims. Monday's talks unfolded a day after a string of stunning long-range attacks by both sides, with Ukraine launching the devastating drone assault on Russian air bases, and Moscow launching its largest drone attack of the war against Ukraine. A previous round of negotiations in Istanbul, the first time Russian and Ukrainian negotiators sat at the same table since the early weeks of the full-scale invasion, led to 1,000 prisoners on both sides being exchanged. Olympics Sunshine Girls NHL Ontario Sunshine Girls
