Latest news with #GotionHigh-Tech
Miami Herald
05-05-2025
- Automotive
- Miami Herald
Rivian Bet Big on Batteries Before Trump's Tariffs - And It's Paying Off
President Trump's executive order imposing a 25% tariff on vehicle and part imports sent a shockwave through the auto industry, but some companies appear to have been more prepared than others. A Bloomberg report from people familiar with the matter who asked not to be identified says Rivian quietly assembled a reserve of electric vehicle (EV) batteries late last year ahead of Trump's tariff policy. Rivian is said to have purchased the lithium iron phosphate cells from China's Gotion High-Tech company and more recently worked with cell supplier Samsung SDI to ship a large amount of battery inventory to the U.S. from South Korea. The measures aim to maintain a supply flow and mitigate negative ripple effects from Trump's policies in areas like pricing, which the president enacted on April 3 for vehicle imports, whereas part levies will begin on May 3. The number of cells that Rivian purchased from Gotion High-Tech was undisclosed. Rivian uses lithium-ion phosphate batteries in its base version, the RS1 SUV and R1T pickup, along with its commercial RCV van. However, the Gotion High-Tech order before Trump's tariffs was said to be primarily for the RCV. These vehicles are assembled in Normal, Illinois, at Rivian's plant. The report from Bloomberg states that Rivian paid upfront for the batteries' shipping costs while Gotion paid and maintained its separate stockpile in the U.S., according to InsideEVs. Rivian is also said to be pursuing similar deals for batteries on raw materials in the future, with a first agreement already signed. Related: What Tesla and Rivian Can Learn from Saturn and Scion The automaker's upcoming 5-seat R2 SUV will use new batteries from LG Energy Solution, which it will initially source from Korea before LG begins production in Arizona. The switch aimed to better accommodate the Inflation Reduction Act (IRA) enacted under former President Biden, which requires that a certain percentage of a vehicle's battery components be manufactured or assembled in North America to qualify for up to $7,500 in federal EV tax credits. Rivian is currently building a second U.S. plant in Georgia. Rivian's stock increased from $13.19 on Monday to $13.83 at the end of Friday trading following reports of its strategic response to impending tariffs. Other automakers, such as General Motors, have projected a $4 billion to $5 billion loss in EBIT (earnings before interest and taxes) for 2025 as a result of Trump's policies, down from the company's initial EBIT forecast for the year of between $13.7 billion and $15.7 billion. Rivian's move with China Gotion High-Tech could save significant sums, given that U.S. tariffs on Chinese EV components and lithium-ion battery imports have hit a staggering 145%. The EV manufacturer received more good news when Trump signed a new executive order on Tuesday preventing multiple tariffs from being stacked on the same imported product for companies making cars in the U.S. While the timeline for how long Rivian can maintain its supply chain remains to be seen, the company's big bet on batteries is paying off. Copyright 2025 The Arena Group, Inc. All Rights Reserved.
Morocco World
14-02-2025
- Automotive
- Morocco World
Ambassador: Morocco Becoming Strategic Hub for Chinese Investment
Doha – Morocco's Ambassador to China, Abdelkader El Ansari, has detailed the country's expanding role as a strategic hub for Chinese investors seeking access to European, American, and African markets, particularly in the flourishing electric vehicle (EV) sector. In a wide-ranging interview with Chinese economic daily Caixin, El Ansari accentuated Morocco's integrated industrial ecosystem and modern infrastructure. 'Morocco possesses an integrated industrial ecosystem that facilitates the installation of new companies,' he emphasized, highlighting the country's strategic advantages for foreign investment. El Ansari spotlighted the Tanger Med port's capabilities, asserting that 'vehicles produced locally can reach Europe in less than a day, the United States in a week, and several African countries in just a few days.' The ambassador outlined Morocco's development trajectory, declaring: 'In 20 to 25 years, Morocco has built an environment conducive to investment through tax incentives, modern infrastructure, and trade openness.' He pointed out the kingdom's 56 free trade agreements with various countries and regions, facilitating access to international markets. Addressing the automotive sector's growth, El Ansari revealed that 'more than 250 international companies are integrated into Morocco's automotive supply chain, bringing annual production to nearly 900,000 vehicles, of which 85% are exported to 75 countries. This dynamic places Morocco as the leading producer of passenger cars in Africa.' Recent Chinese investments in Morocco's EV sector have been substantial. According to El Ansari, major Chinese companies including Yahua Group, Huayou Cobalt, and Gotion High-Tech announced factory projects between 2023 and 2024, representing a cumulative investment of over 33 billion yuan (approximately $4.6 billion). Chinese presidential visit and EV industry development The strengthening Morocco-China relationship was further crystallized by Chinese President Xi Jinping's visit to Morocco in November 2024. Crown Prince Moulay El Hassan welcomed President Xi at Mohammed V International Airport in Casablanca, where the Chinese leader participated in traditional welcome ceremonies and convened with key officials including Head of Government Aziz Akhannouch. The visit lined up perfectly with some game-changing moves in Morocco's EV scene. Gotion High-Tech committed $1.3 billion to construct Africa's first EV battery 'gigafactory' near Rabat, while BTR New Material Group and Shinzoom invested $300 million and $690 million respectively in battery component manufacturing. Experts cited in a South China Morning Post report illuminated Morocco's strategic advantages. David Shinn from George Washington University and François Conradie from Oxford Economics Africa cataloged key factors driving Chinese investment. They pinpointed Morocco's proximity to European markets, reserves of key battery materials like lithium and phosphate, and green energy production capabilities as major attractions for investors. However, Chatham House Associate Fellow Ahmed Aboudouh cautioned that 'Morocco's role as a workaround for Chinese EV companies may put it at the heart of great-power competition.' This comes as the EU has approved tariffs of up to 35.3% on Chinese EV imports, while the US has increased tariffs from 25% to 100%. The bilateral relationship continues to flourish, with El Ansari noting that trade exchanges between the two nations surged by 13.9% in 2023, while Chinese direct investments in Morocco advanced by 20.2%. He also heralded the resumption of direct Beijing-Casablanca flights in January, reducing travel time to less than 14 hours, which he anticipates will further catalyze Sino-Moroccan economic and human exchanges.
