Latest news with #ShoichiMatsumoto
Yomiuri Shimbun
3 days ago
- Automotive
- Yomiuri Shimbun
Billion-Dollar Battery Plant Pauses Construction Amid Electric Vehicle and Tariff Uncertainty
Daily News via AP/FILE AESC Group CEO Shoichi Matsumoto speaks at the 'Topping Out' structural completion milestone ceremony for the 1.6 million-square-foot AESC gigafactory being constructed in the Kentucky Transpark in Bowling Green, Ky., on Thursday, Sept. 14, 2023. 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 Automotive Energy Supply Corp. 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 $2 billion and hire 4,000 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.
Japan Today
4 days ago
- Automotive
- Japan Today
Japanese company halts battery plant construction in U.S.
FILE - AESC Group CEO Shoichi Matsumoto speaks at the "Topping Out" structural completion milestone ceremony for the 1.6 million-square-foot AESC gigafactory being constructed in the Kentucky Transpark in Bowling Green, Ky., on Thursday, Sept. 14, 2023. (Grace Ramey /Daily News via AP) By JEFFREY COLLINS 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. © Copyright 2025 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission.
Yahoo
13-05-2025
- Automotive
- Yahoo
U.K. announces $1.3B AESC gigafactory funding deal
LONDON — The U.K. announced a 1-billion-pound ($1.33 billion) funding deal for a new AESC gigafactory which will manufacture electric vehicle batteries. Japanese-headquartered battery maker AESC will build the facility in Sunderland, northern England. The government said it would provide batteries for up to 100,000 EVs per year — a six-fold increase on current capacity. 'We are going further and faster to boost our industries' resilience and encourage their growth,' finance minister Rachel Reeves said in a statement on May 9. ''This investment in Sunderland will not only further innovation and accelerate our move to more sustainable transport, but it will also deliver much-needed high quality, well-paid jobs.' Sign up for the Automotive News Europe Breaking News alerts and be the first to know when big news happens. Nissan operates Britain's largest car manufacturing site in Sunderland. The company announced a major investment in the plant in 2023 to build electric versions of two of its cars. Britain said its National Wealth Fund and UK Export Finance would provide financial guarantees to unlock 680 million pounds in financing from banks including Standard Chartered, HSBC, SMBC Group, Societe Generale and BBVA. The cash will be used to fund the construction and operation of the plant. The remaining 320 million was secured through private financing in addition to new equity provided by AESC, the government statement said. 'This investment marks a key milestone in AESC's ongoing efforts to support the UK's path towards decarbonization and the expansion of its EV market,' said AESC chief executive Shoichi Matsumoto, in remarks distributed by the British government. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
12-05-2025
- Automotive
- Yahoo
Sunderland gigafactory secures £1bn for UK's electric vehicle growth
The British car industry has received a boost with the announcement of a £1bn ($1.3bn) investment in the gigafactory in Sunderland. The facility will manufacture batteries for electric vehicles, supporting the production of up to 100,000 electric vehicles (EVs) annually. This development is set to create 1,000 jobs, enhancing the UK's electric vehicle capacity six-fold. In a landmark transaction, the National Wealth Fund and UK Export Finance have provided financial guarantees, unlocking £680m in financing from banks including Standard Chartered, HSBC, SMBC Group, Societe Generale, and BBVA. This funding will cover the construction and operation of the new plant. An additional £320m secured through private financing and new equity from AESC. The UK Government's Automotive Transformation Fund is also contributing £150m in grant funding to support this initiative. This investment aligns with the Government's Plan for Change, aiming to make the UK more competitive globally and advance its position as a clean energy superpower through innovation in the automotive sector. UK Chancellor of the Exchequer Rachel Reeves said: 'We are going further and faster to boost our industries' resilience and encourage their growth as part of our Plan for Change, and this investment follows hot on the heels of yesterday's landmark economic deal with the US which will save thousands of jobs in the industry. 'This investment in Sunderland will not only further innovation and accelerate our move to more sustainable transport, but it will also deliver much-needed high quality, well-paid jobs to the North East, putting more money in people's pockets.' The recent UK-US trade deal, which reduces car export tariffs from 27.5% to 10% for a quota of 100,000 UK cars, further supports this growth. This reduction is expected to save car companies several millions of pounds, securing high-skilled jobs in industrial areas like Sunderland. AESC Japanese headquarter CEO Shoichi Matsumoto added:'This investment marks a key milestone in AESC's ongoing efforts to support the UK's path towards decarbonisation and the expansion of its EV market. 'Through close collaboration with strategic partners, we strive to accelerate this transition while creating high-quality local jobs and building resilient, sustainable supply chain.' "Sunderland gigafactory secures £1bn for UK's electric vehicle growth" was originally created and published by Just Auto, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Time of India
10-05-2025
- Automotive
- Time of India
Britain announces 1 bn pound AESC gigafactory funding deal
Britain on Friday announced a 1 billion pound ($1.33 billion)funding deal for a new AESC gigafactory which will manufacture electric vehicle batteries . Japanese-headquartered battery maker AESC will build the facility in Sunderland, northern England. The government said it would provide batteries for up to 100,000 EVs per year - a six-fold increase on current capacity. "We are going further and faster to boost our industries' resilience and encourage their growth," finance minister Rachel Reeves said in a statement. ""This investment in Sunderland will not only further innovation and accelerate our move to more sustainable transport, but it will also deliver much-needed high quality, well-paid jobs." Japanese carmaker Nissan operates Britain's largest car manufacturing site in Sunderland. The company announced a major investment in the plant in 2023 to build electric versions of two of its cars. Britain said its National Wealth Fund and UK Export Finance would provide financial guarantees to unlock 680 million pounds in financing from banks including Standard Chartered, HSBC, SMBC Group, Societe Generale and BBVA. The cash will be used to fund the construction and operation of the plant. The remaining 320 million was secured through private financing in addition to new equity provided by AESC, the government statement said. "This investment marks a key milestone in AESC's ongoing efforts to support the UK's path towards decarbonisation and the expansion of its EV market," said AESC chief executive Shoichi Matsumoto, in remarks distributed by the British government.
