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Politico
4 days ago
- Automotive
- Politico
Trump or not, Ford is making EVs
The Trump administration is wiping out the tax breaks and pollution rules that pushed automakers to produce electric vehicles. But will American companies still make them? The answer at Ford appears to be yes. Ford CEO Jim Farley laid out a continued road map for electric vehicles during an impassioned address Monday at the company's plant in Louisville, Kentucky. It called for offering a $30,000 electric truck by 2027 — dramatically cheaper than past offerings such as the $54,000-and-up F-150 Lightning. The automaker will invest $2 billion to make them at the Kentucky plant. It expects to turn a profit within a year. 'We needed a radical approach … to create an affordable vehicle that delights customers in every way that matters, design and innovation, flexibility, interior space, driving pleasure and lower cost of ownership,' he said. 'But we need to do it and be sustainable and make money, and we need to do it with American workers.' Under the driver's feet will lie a lithium-iron-phosphate battery made at Ford's new battery factory in Michigan. LFP batteries, as they're known, are less expensive than other chemistries and free of some of the minerals that bind American EVs to China's supply chains, though Ford still plans to license Chinese tech. Tuning out TrumpPerhaps most importantly, Ford sees this as just the first model to emerge from a new 'Universal EV Production System' that breaks the traditional assembly line into pieces and reduces parts, weight and cost. Taken together, it's a sign that Ford is tuning out the federal government and focused on competing with China, which leads the world in EV production. 'They're feeling increasingly comfortable telling the public and investors that regardless of what happens in Washington, they are moving toward the electric future, because that is where the rest of the world is going,' said Nick Nigro, who runs Atlas Public Policy, which analyzes EV markets. Not that it will be easy. 'We're doing so many new things, I can't tell you with 100 percent certainty that this will all go just right,' Farley said Monday. Analysts doubt that Ford can deliver at its price point, on time, and also make EV that are competitive in global markets. U.S. wages are high, and so are battery costs. 'It seems a little optimistic,' said Stephanie Brinley, an auto analyst at S&P Global Mobility. Even if Ford executes well, the larger auto industry has spent years in a time of gobsmacking changes, from pandemic-era chip shortages to the Ukraine war to President Donald Trump's tariffs. There's no reason to think the pace of change will slow. 'Two years, sadly, is an eternity,' said Karl Brauer, a longtime auto analyst at an auto sales site. However, even two years might be too long. 'Around the timeline, I don't think they have a choice,' Nigro said. 'They have to buckle down and deliver.' It's Tuesday — thank you for tuning in to POLITICO's Power Switch. I'm your host, David Ferris. Power Switch is brought to you by the journalists behind E&E News and POLITICO Energy. Send your tips, comments, questions to dferris@ Today in POLITICO Energy's podcast: Jordan Wolman breaks down the complicated politics of data centers. Power Centers Sierra Club ousts its leaderThe Sierra Club fired Executive Director Ben Jealous on Monday after two turbulent years marked by infighting and drama, Robin Bravender reports. Staffers said they hope the organization will refocus on its mission to protect the environment and battle efforts in Washington to dismantle environmental protections. Sierra Club's board 'unanimously voted to terminate Ben Jealous' employment for cause,' Patrick Murphy, president of the Sierra Club board of directors, told staff Monday evening in an email first reported by POLITICO's E&E News. He did not specify the cause but added, 'This was not a decision we took lightly.' 'It is disheartening, unfortunate, but perhaps not surprising that the board has chosen an adversarial course that the facts so clearly cannot support,' Jealous said Tuesday in a statement. Jealous has retained attorneys to fight the decision. Jealous' defenders contend he was unfairly scrutinized for decisions like layoffs and restructuring in an effort to plug a $40 million deficit, saying he faced double standards because he is Black, Zack Colman writes. But a union representing Sierra Club employees rejected that notion that the criticism of Jealous was influenced by his race. So did a group representing union members who identify as Black, Indigenous or people of color. Save the eaglesThe Fish and Wildlife Service is surveying wind developers about their projects' effects on eagles, Ian M. Stevenson, Michael Doyle and Benjamin Storrow write. A Friday letter from Jennifer Miller, acting chief of the migratory bird program, requested records about accidental eagle death permits. Fish and Wildlife is part of the Interior Department, which has taken steps since mid-July aimed at slowing the growth of wind power on public land. 'The concern is that the administration might use the data it collects to serve a narrative against the industry and individual projects,' said Benjamin Cowan, a partner at the Troutman Pepper Locke law firm. Ørsted appeals to shareholdersThe world's largest wind developer unveiled a novel plan Monday to keep cash flowing to its beleaguered Sunrise Wind offshore project in New York, Benjamin Storrow writes. Ørsted has raised money by selling a portion of its projects to another energy company, a bank or some other third party. But that market dried up after Trump stopped work on a rival project. Now, the company is aiming to raise $9.4 billion by inviting existing shareholders to take a bigger stake in the company. The company stressed that Sunrise Wind is on track, but investors seemed less certain, with Ørsted shares plunging almost 30 percent Monday. In Other News Hot topic: The politics of air conditioning are heating up in France as summers get hotter in Europe. Backup plan: A pilot project in New York City connects residential air conditioning units to batteries during times of high electricity usage. Subscriber Zone A showcase of some of our best subscriber content. U.S. energy forecasters on Tuesday said they expect crude oil prices to slide below $60 a barrel this year and lowered the forecast for U.S. oil production in 2026. Price declines threaten to reverse a nearly uninterrupted growth in U.S. production over the past nine years. Opponents of nickel and copper mining near Minnesota's pristine Boundary Waters are pressing Democratic Gov. Tim Walz and state lawmakers to put up a firewall against Trump administration mining policies. Exxon Mobil filed a petition asking the Supreme Court to take up climate damage cases against the fossil fuel industry. House Democrats are calling on EPA to reinstate dozens of employees who raised alarm about the agency's direction under Trump. That's it for today, folks! Thanks for reading.
Chicago Tribune
07-08-2025
- Politics
- Chicago Tribune
EPA cancels $7 billion Biden-era grant program to boost solar energy
WASHINGTON — The Environmental Protection Agency on Thursday terminated a $7 billion grant program intended to help pay for residential solar projects for more than 900,000 lower-income U.S. households, in the latest Trump administration move hindering the nation's shift to cleaner energy. The funding, part of the Biden-era's Solar for All program, was awarded to 60 recipients including states, tribes and regions for investments such as rooftop solar and community solar gardens. Solar, a renewable energy, is widely regarded as a way to introduce cleaner power onto the electrical grid and lower energy bills for American consumers. Under Republican President Donald Trump, officials have pursued dozens of deregulatory measures related to federal rules intended to protect clean air and water. Last week, the EPA proposed rescinding the agency's 'endangerment finding' which serves as the scientific and legal basis for regulating planet-warming greenhouse gas emissions. Trump EPA moves to eliminate landmark scientific rule that's the basis for climate regulationsThe administration has taken steps to bolster fossil fuels such as coal, oil and natural gas as it pursues American 'energy dominance in the global market.' EPA Administrator Lee Zeldin said in a statement on social media that authority for the solar program was eliminated under the tax-and-spending law signed by Trump last month. It eliminated the Greenhouse Gas Reduction Fund, approved under the 2022 Inflation Reduction Act, that set aside $20 billion for community development projects to boost renewable energy and an additional $7 billion for the solar program. 'The bottom line is this: EPA no longer has the statutory authority to administer the program or the appropriated funds to keep this boondoggle alive,″ Zeldin said. 'Today, the Trump EPA is announcing that we are ending Solar for All for good, saving US taxpayers ANOTHER $7 BILLION!' Sen. Bernie Sanders, I-Vt, who introduced the Solar for All program to cut electric bills for working families, said Zeldin's action was illegal. 'Solar for All means lower utility bills, many thousands of good-paying jobs and real action to address the existential threat of climate change,″ Sanders said in a statement. 'At a time when working families are getting crushed by skyrocketing energy costs and the planet is literally burning, sabotaging this program isn't just wrong — it's absolutely insane. We will fight back to preserve this enormously important program.' Only $53 million of the $7 billion awarded has been spent, according to a tally by the research firm Atlas Public Policy. Several grant recipients this week said their programs were in planning phases. Stephanie Bosh, senior vice president of the Solar Energy Industries Association, said the EPA has no legal authority to terminate grants already appropriated by Congress. 'These grants are delivering billions of dollars of investment to red and blue states alike,″ she said. Bosh said solar was one of the cheapest energy sources at a time of growing demand for electricity. 'This administration is continuing to dig itself into a hole,' she said. The EPA has argued that the tax and policy law allows the agency to rescind the money it has already obligated. The recipients of that money disagree, saying the bulk of the money had already been disbursed and is not affected by the law. Southern Environmental Law Center litigation director Kym Meyer said if the administration wants to move forward with canceling Solar for All funds, 'we will see them in court.' Grant recipients have already challenged the administration's actions, and a judge ruled in April the EPA cannot freeze the contracts. Rhode Island Sen. Sheldon Whitehouse, the top Democrat on the Senate Environment Committee, called Zeldin's elimination of the solar program a betrayal 'that will further hike electricity costs and make our power grid less reliable.' 'Trump is — yet again — putting his fossil fuel megadonors first,' he added.
Time of India
06-07-2025
- Business
- Time of India
Trump energy bill cuts clean power funding and puts Canadian jobs at risk
US President Donald Trump signed the 'One Big Beautiful Bill Act' into law on Friday(July 4), delivering sweeping tax cuts and energy reforms that could derail North America's clean energy goals and deal a blow to Canadian jobs , investment, and climate plans. The legislation, more than 800 pages long, eliminates key clean energy subsidies introduced during Joe Biden 's presidency, including tax credits for home solar, heat pumps, and battery storage. It also scraps electric vehicle (EV) rebates of up to US$7,500 for new and US$4,000 for used vehicles starting October 1. Why it matters to Canada Much of Canada's EV manufacturing, mining, and battery production was built on the promise of North American integration, a shared supply chain supported by Biden-era climate incentives. The rollback of those supports could now stall projects and push companies to reconsider investments. 'This interrupts whatever delicate momentum we had toward stronger climate policy and a clean energy transition,' said George Hoberg, a climate policy professor at the University of British Columbia. Live Events Major wind and solar projects in the US that once had up to a decade to qualify for tax credits must now be operational by the end of 2027. Projects that haven't started construction within the next year may lose federal backing. This could impact over 28 gigawatts of planned projects, according to Atlas Public Policy. Canada's clean energy workers are watching closely. The Laborers' International Union of North America (LIUNA), which represents workers in both countries, warned the bill could destroy jobs. 'These solar and wind projects weren't abstract policy ideas,' said LIUNA general president Brent Booker. 'They were real job opportunities for real people.' Oil and gas get a boost While clean energy takes a hit, fossil fuels get a boost. Trump's bill expands offshore drilling leases and adds tax incentives for oil, gas, and coal companies. The American Petroleum Institute called it 'a win for American-made energy.' Canadian Prime Minister Mark Carney is pursuing his own energy agenda, including carbon capture projects and a zero-emission vehicle mandate. But experts say Trump's bill makes that harder. 'It doesn't make it impossible,' Hoberg said. 'But it increases the cost and political resistance.' Canada may still benefit Experts say US uncertainty could push clean tech companies north, especially those looking for hydropower and a stable climate policy. But Canada must act fast. Trade experts are urging Ottawa to offer investment incentives or waive tariffs on US parts to stay competitive.
Mint
01-07-2025
- Business
- Mint
The renewable-energy sector's relative winners and losers in the megabill
The Senate's latest version of the megabill caught the renewable-energy sector off guard with a new tax on wind and solar projects that, together with the quick end of lucrative tax credits, would devastate the industry. Clean-energy companies say the U.S. risks a slowdown in power delivery during the global artificial-intelligence race by ending the tax credits that were part of former President Joe Biden's landmark Inflation Reduction Act. The U.S. is also poised to cede advances in technologies from solar panels to batteries and electric vehicles to China. 'The big-picture outlook for energy is we are going to be less competitive because of this law," said Nick Nigro of Atlas Public Policy. 'Ten years from now we could look back on this moment as the time in which the U.S. pulled back and essentially lost the transition to clean energy." With each new version of Trump's 'big beautiful bill," the outlook for the renewables sector has shifted. These are the relative winners and losers in the current version: Not only did Senate Republicans outline plans to phase out tax credits for wind and solar projects more quickly, they proposed a new excise tax on future projects. The tax would apply to wind and solar projects completed after 2027 if those projects use a certain percentage of components from China, the industry's primary supplier of everything from critical minerals to batteries. Jason Grumet, chief executive of the American Clean Power Association, called the plan a 'fundamental break in the compact between Congress and the private sector." Meanwhile, large-scale wind and solar projects would qualify for tax credits only if placed in service by the end of 2027. A prior version of the bill allowed projects to qualify based on their construction start date, a timeline that is easier for developers to control. They have less influence over when their projects connect to the power grid, where lines are long. Republican Sens. Joni Ernst and Chuck Grassley of Iowa, along with Lisa Murkowski of Alaska, have proposed repealing the excise-tax proposal and delaying the phaseout of the credits by maintaining them for projects that begin construction by the end of 2027. Solar and wind power make up more than 60% of the generation capacity that is expected to be added to the grid this year in the U.S., according to the Energy Information Administration. The proposed wind and solar excise tax could offer salvation to companies that have been investing in U.S. factories for wind, solar and battery components. Mike Carr, executive director of the Solar Energy Manufacturers for America Coalition, or SEMA, said the tax might encourage project developers to continue ordering domestic equipment. Companies making factory investments have been worried that without a reason to do so, U.S. developers would return to buying the cheapest solar panels on the market, likely those subsidized by China. 'It is the only lifeline on offer right now in the bill," Carr said. 'Panicked manufacturers are drowning." Shares of U.S. manufacturer First Solar climbed Monday. The struggling rooftop solar industry faced a potentially fatal blow after the version of the bill passed by the House of Representatives called for sunsetting tax credits by the end of this year. The latest Senate version is a little more generous. It instead would extend the credits for leased solar projects to the end of 2027, giving rooftop-focused companies more time to regroup. Tax credits for those who buy their own systems instead of leasing would phase out at the end of this year. That's likely a smaller portion of the population, however. Guggenheim Securities has estimated that about 70% of the residential solar industry is supported by leasing or other financing arrangements. Shares of residential solar companies Sunrun and SolarEdge Technologies popped Monday. Hydrogen also caught a break in the latest version of the bill. Projects can qualify for a tax credit if they begin construction before 2028. Under the House version, that deadline was the end of this year. The Senate version would also make hydrogen fuel cells, which use chemical reactions to generate electricity, eligible for tax credits. Shares of hydrogen fuel cells makers Plug Power and Bloom Energy soared Monday. Beyond its regular uses in oil refining and ammonia for fertilizers, hydrogen is viewed as a fossil-fuel alternative for industries including transportation, power generation and shipping. Widespread use has remained elusive because of cost, but new projects are under way along the U.S. Gulf Coast and in Saudi Arabia and Europe. Big oil-and-gas companies are among hydrogen's backers. The Senate bill would end tax credits for the purchase of EVs after September. That's even quicker than the House version, which called for eliminating them for the most part by the end of the year. That would lead to higher EV prices, analysts say, when the auto industry already faces a slower EV market. Elon Musk, whose relationship as a key adviser to the president recently unraveled, called the latest version of the bill 'utterly insane and destructive" on X. He didn't advocate for the EV credit but said that damage to the solar and battery industry would 'leave America extremely vulnerable in the future." He also railed against the legislation's potential increase to the deficit and renewed promises to form a new political party. Late Monday, Trump shot back on Truth Social. 'Elon may get more subsidy than any human being in history, by far, and without subsidies, Elon would probably have to close up shop and head back home to South Africa. No more Rocket launches, Satellites, or Electric Car Production, and our Country would save a FORTUNE," Trump wrote.
E&E News
06-06-2025
- Automotive
- E&E News
Trump-Musk split could leave Tesla politically homeless
The spectacular breakup between Elon Musk and President Donald Trump threatens to leave Tesla with few political friends. Musk has spent the past few months alienating the electric automaker's base of climate-minded car buyers by moonlighting as Trump's government-slasher-in-chief. Now, the billionaire's fixation on the GOP megabill has opened a dangerous rift with the president, who threatened Thursday to end all subsidies to Musk's companies. Tesla's stock had its largest one-day drop in history Thursday as Musk and Trump sniped at each other from their respective social media platforms. The share price fell more than 14 percent, lopping off more than $150 billion from Tesla's market value — and, according to Bloomberg, tanking Musk's personal net worth by $34 billion. Advertisement The core of the argument between the two men — whether the Republican spending package is a 'big, beautiful bill' or a 'MOUNTAIN of DISGUSTING PORK' — is a side concern for people whose main priority is Tesla. 'The CEO of that company needs to spend his time focused on the company's success,' said Nick Nigro, the head of Atlas Public Policy, which analyzes the electric vehicle market. 'Whether his interest in federal policy comes from a good place, it's a distraction from what Tesla shareholders and drivers need, which is his full attention.' Seth Abramson, a vociferous Musk critic who is writing a book about the entrepreneur, wrote on X that 'Musk will go the rest of his life without a political home or patron, shunned by politicians of both parties and therefore unable to effectively operate as a CEO of any company.' The breakup between the world's richest man and one of its most powerful could have far-reaching impacts for Musk's companies. Investor optimism about Tesla has been based on the assumption that Musk's proximity to power would lead to a national policy on autonomous vehicles that would ease the arrival of Tesla's robotaxi, which is supposed to hit the roads of Austin, Texas, this month. Musk could also lose leverage on other issues important to Tesla, such as Trump's tariffs on China's critical minerals. Meanwhile, his space company SpaceX has billions of dollars of federal defense and space contracts — now at risk — while its satellite subsidiary Starlink is angling for billions more in federal broadband subsidies. 'Attack mode' Tesla is still the country's largest electric automaker. But the Trump-Musk split comes at a vulnerable moment for both Tesla and electric vehicles writ large. The company is facing declining sales around the world, as its vehicle lineup has grown stale and Musk's political activities have turned off many EV buyers in Europe and North America. Meanwhile, federal support for EVs is hanging by a thread. The House's version of the megabill would drastically scale back Biden-era tax incentives meant to stimulate EV manufacturing and sales. The fight between Trump and Musk escalated on Thursday after Trump told reporters that Musk was 'upset' about the House-passed bill's proposal to remove EV tax credits and other incentives. Musk took to X to deny that narrative, writing: 'Keep the EV/solar incentives cuts in the bill, also cut all the crazy spending increases in the Big Ugly Bill so that America doesn't go bankrupt!' The president's repeated attacks on EVs and vows to repeal the Biden administration's subsidies certainly didn't seem to trouble Musk much during last year's campaign, when the megabillionaire spent more than $270 million and countless hours to help put Trump back into the White House. (Trump did concede at the time that Tesla made a 'great product.') Musk's apparent willingness to sacrifice federal incentives was unwelcome news to clean energy and EV advocates who hope Republican senators will save some of the tax credits from the Democrats' 2022 climate law. Republicans can afford to lose only three votes in the Senate, and some GOP senators have indicated they think the bill's rollbacks go too far. The war of words between Trump and Musk ended any hopes that the Tesla CEO would have the leverage with the White House to tip the scales. 'Elon was 'wearing thin,' I asked him to leave, I took away his EV Mandate that forced everyone to buy Electric Cars that nobody else wanted (that he knew for months I was going to do!), and he just went CRAZY!' Trump posted on his social media site, Truth Social. That statement was a far cry from three months ago, when Trump made a show of buying a Tesla in front of the White House. That gesture raised hopes among some Tesla shareholders that Republicans would embrace Tesla and compensate for its diminished popularity among Democrats, many of whom had taken to staging protests outside its showrooms. 'I'm going to buy because No. 1, it's a great product, as good as it gets. And No. 2, because this man has devoted his energy and his life to doing this, I think he's been treated very unfairly by a very small group of people,' Trump said at the time about Musk. Now, that's all changed. 'Trump no longer has to say nice things about Tesla and EVs,' said Loren McDonald, an EV analyst at Paren, an EV data shop. 'He and the admin can go back to EVs are evil attack mode.' Critical minerals and beyond The fizzled bromance could also have far-reaching ripple effects on myriad, complex relationships that Tesla has across the globe, as well as its business before the federal government. Musk, for example, will presumably hold no sway over the administration's intended move to impose steep tariffs on imports of Chinese graphite used to make EV batteries. The Commerce Department concluded last month that imported Chinese graphite is receiving unfair subsidizes. The agency laid out a plan to impose tariffs of up to 721 percent on some natural and artificial graphite active anode material from China that's used in batteries. Tesla has fought against the tariffs, with one of the company's attorneys pointing out that U.S. manufacturers don't yet produce anode material that meets carmakers' standards. The fallout could also put a bulls-eye on Musk's financial ties to Beijing, something Democrats have repeatedly railed against. The Trump administration and lawmakers from both parties are pushing to ease China's grip on supply chains, from the production of critical minerals to processing and manufacturing of EV batteries. Yet Tesla has many ties to China, including reliance on graphite imports, a gigafactory located in Shanghai, and ongoing work with Contemporary Amperex Technology. CATL, the world's largest battery-maker, is on a U.S. government list of companies that work with the Chinese military. In short, nothing on Thursday boded well for America's leading electric automaker. 'It's another Twilight Zone moment in this Musk/Trump relationship which now is quickly moving downhill,' wrote Dan Ives, an analyst at investment shop Wedbush Securities who tracks Tesla. But Ives nonetheless remained hopeful. The subject line of his email: 'Friends Again Soon?' Hannah Northey contributed to this report. This story also appears in Climatewire.
