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Korea Herald
5 days ago
- Automotive
- Korea Herald
Tesla's US battery ramp-up opens doors for Korean material suppliers
Korean firms gain ground with cost-efficient materials, reduced reliance on China As electric vehicle juggernaut Tesla urges longtime battery partner Panasonic to accelerate production in the US, Korean are poised to take the spotlight as key material suppliers — leveraging their cost competitiveness and reduced reliance on the Chinese supply chain. According to The Financial Times, Tesla has recently pushed Panasonic to fast-track the two companies' joint battery cell manufacturing plant, which has been under construction since 2022. The $4 billion project, initially scheduled to begin operations by March this year, has been rescheduled for as early as July due to unexpected setbacks, including cost increases. The plant's annual capacity is projected at 30 gigawatt-hours — enough to power approximately 300,000 vehicles — and is expected to increase Tesla's US production capacity by 60 percent by March 2027. 'As we've been told by our customer to get Kansas moving quickly, we're hurrying to do so … There are risks, but we are planning on robust demand for batteries from our main customer as of now,' said Panasonic CEO Yuki Kusumi in an interview with Tokyo-based media, as quoted by the Financial Times. Korean suppliers rise as EV battery formulas evolve Even if Panasonic begins operations at its Kansas plant this year, concerns remain over a potential production gap in new battery materials, stemming from Tesla's cost-cutting strategy amid slowing EV demand, according to sources. Reportedly, one of Panasonic's main material suppliers, Japan's Sumitomo Chemical, has announced plans to shift its cathode material chemistry from nickel, cobalt and aluminum (NCA) to nickel, cobalt and manganese (NCM) starting next year, citing customer demand. 'There's a reason why Korean battery makers have preferred NCM over NCA. Manganese is significantly cheaper than aluminum — almost incomparable,' said Yang Min-ho, an energy engineering professor at Dankook University. 'From a research perspective, it has also shown better structural stability in tri-component lithium-ion batteries. Although NCA initially outperformed NCM, companies have since improved capacity by increasing nickel content.' While Korea's LG Chem, Posco Future M and L&F Co. are known to supply NCA cathode materials for Tesla through Panasonic, their deeper focus on NCM gives them a competitive edge over Sumitomo Chemical. 'We believe our company's diversified product portfolio — ranging from NCM and nickel cobalt manganese aluminum (NCMA) to NCA — could appeal to Panasonic,' said an industry source who requested anonymity. Industry insiders also point out that Korean firms may benefit from distancing themselves from the Chinese graphite supply chain. Despite pushback from Tesla and Panasonic, the US Commerce Department on May 20 issued a preliminary ruling to impose tariffs of up to 720 percent on certain Chinese graphite imports, citing unfair government subsidies. In response, Posco Future M last month announced a 396.1 billion won ($289 million) investment in spherical graphite production — a key precursor for anodes — to reduce its reliance on Chinese raw materials. Legacy carmakers chip away at Tesla's lead Tesla, still the leading EV maker in the US, is under pressure as it gradually loses market dominance — a position it established with the launch of its Model S sedan in 2012. According to Cox Automotive, Tesla's US market share fell from 55 percent in 2023 to 48.7 percent in 2024 — the first time it has dropped below 50 percent. Sales declined about 6 percent year-on-year to 633,762 units. Meanwhile, legacy automakers such as General Motors, Ford and Hyundai Motor Group are expanding their presence in the US EV market. Hyundai Motor and Kia collectively sold 123,000 battery electric vehicles in the US in 2024, securing a 10 percent market share, according to data from the Korea Automobile & Mobility Association. Tesla is racing to expand its US battery production to capitalize on subsidies and tax credits offered under the Inflation Reduction Act while the window remains open. Last Thursday, the US House of Representatives passed a bill moving up the expiration date for the $7,500 consumer EV subsidy by six years to Dec. 31, 2026. It also shortened the Advanced Manufacturing Production Tax Credit period by one year, now set to end in 2031. These changes increase the urgency for companies to localize their manufacturing and supply chains within the US clean energy sector.
Time of India
18-05-2025
- Business
- Time of India
Global layoff spree: Microsoft, Amazon, Burberry among firms cutting thousands of jobs
In recent weeks, several multinational corporations across sectors, from technology and cybersecurity to fashion and consulting, have announced significant job cuts, impacting tens of thousands of workers globally. These layoffs are being driven by structural overhauls, cost-cutting strategies, and a sharper focus on profitability. Together, they signal a broader industry shift toward consolidation, leaner operations, and streamlined efficiency. Microsoft: Over 6,000 jobs slashed in structural overhaul Microsoft is laying off approximately 3% of its global workforce, affecting over 6,000 employees across departments and regions. The company, which had 228,000 staff as of June 2023, said that the move is aimed at streamlining operations and reducing management layers. The cuts mark the biggest reduction since Microsoft eliminated 10,000 jobs in 2023. However, unlike earlier performance-based layoffs, these are structural, targeting middle management to widen the span of control per manager. Coders and engineering staff are expected to be largely spared, as the company continues to prioritise AI investments. Microsoft also introduced stricter performance policies, including a two-year rehire ban for underperformers and a 'good attrition' metric to track desirable exits. Employees placed on a performance improvement plan (PIP) must choose within five days or forgo severance. Amazon: Cuts in services and services sector Amazon reportedly fired around 100 employees from its devices and services division, which develops hardware like Echo, Fire TV, and Ring. The layoffs are part of an internal review to better align teams with product roadmaps and improve overall efficiency. 'As part of our ongoing work to make our teams and programs operate more efficiently, and to better align with our product roadmap, we've made the difficult decision to eliminate a small number of roles,' an Amazon spokesperson told Reuters. CEO Andy Jassy has also been vocal about reducing bureaucracy and management layers, recently informing about a 15% increase in the ratio of individual contributors to managers. He also stressed upon the importance of meritocracy over bureaucracy in Amazon's corporate culture, encouraging staff to do more with fewer resources. Panasonic: 10,000 jobs to go amid structural reforms Panasonic is cutting 10,000 jobs, 4% of its global workforce, through the fiscal year ending March 2026. Half of the cuts will be in Japan, with the rest overseas. The layoffs are aimed at restructuring unprofitable divisions, particularly in consumer electronics. 'Compared with industry peers that have already moved ahead with structural reforms, our selling, general and administrative expenses ratio remains exceptionally high,' said President Yuki Kusumi during a media briefing. The company will also merge sales and back-office functions to reduce fixed costs and may exit or sell off underperforming segments, including its struggling TV business. Panasonic expects to take an earnings hit of 130 billion yen (~$894 million) due to the restructuring. PwC: 1,500 US employees let go after business review PwC has laid off about 2% of its US workforce, around 1,500 employees, mainly from its audit and tax teams, following an internal review. Many affected staff had joined only recently, and some were reportedly up for promotion before receiving layoff notices via surprise 'time-sensitive' Teams meeting invites. 'This was a difficult decision, and we made it with care, thoughtfulness and a deep awareness of its impact on our people,' PwC said in a statement, citing historically low attrition rates as a contributing factor. The firm also plans to cut back on campus hiring but will honour offers already extended to interns. Other Big Four firms, including Deloitte and KPMG, have recently implemented similar cuts in response to slowing demand and low staff turnover. CrowdStrike: 5% workforce cut despite strong growth Cybersecurity firm CrowdStrike is laying off 5% of its global workforce, around 500 roles, as part of a strategic realignment despite reporting a 25% year-on-year revenue increase to $1.06 billion in the last quarter. 'While we will continue to prudently hire, primarily in customer-facing and product engineering roles, we are reducing roles in some areas of the business,' CEO George Kurtz said in a note to employees. The company is targeting $10 billion in annual recurring revenue and plans to continue hiring in key strategic areas through 2026. It expects to incur up to $53 million in restructuring-related charges. Burberry: 1,700 jobs cut in bid to revive brand British luxury fashion house Burberry is laying off 1,700 employees, almost 20% of its global workforce, in a sweeping cost-saving move under new CEO Joshua Schulman. Most cuts will affect office-based staff, and the Castleford trench coat factory will lose its night shift due to overproduction. 'Our brand metrics have all shown a significant improvement in the second half versus the first half,' Schulman told reporters, expressing cautious optimism. The company reported better-than-expected profits of £26 million for FY25, though sales dipped 6% in the final quarter amid a sluggish luxury market. Schulman, Burberry's fourth CEO in a decade, is pivoting the brand back to its heritage products while trimming underperforming divisions and refocusing on high-margin leather goods. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Miami Herald
15-05-2025
- Automotive
- Miami Herald
Major tech company CEO reveals surprising upside of tariffs
The on-again, off-again tariff game continues. May 12 saw a major, yet temporary, relief for many industries, but especially technology. That's when the U.S. and China agreed to temporarily decrease tariffs in an effort to diminish the trade war between them. Under the new deal, the U.S. will lower its average tariffs on Chinese products from 145% to 30%, while China will decrease its duties on American goods from 125% to 10%, according to the joint statement. Related: Apple iPhone decision will upset customers, appease White House The agreement couldn't have come at a better time, considering that many companies have been building up supplies as a way to prepare for the upcoming high tariffs. In the first quarter of 2025, U.S. imports of lithium-ion batteries from China grew by 10%, writes PV Magazine, citing CEA. Further, the tariff plans have already caused major carmakers like Honda (HMC) , Toyota (TM) , and Nissan (NSANY) to drop their plans for battery plants and investments outside of the U.S. Could this be good news for some of the U.S.-based battery producers? Image source: Shutterstock Panasonic Holdings Corporation (PCRFF) is one of the world's largest battery makers. It ranks sixth among the 10 top EV battery makers based on 2024 market share, according to South Korean market research firm SNE Research. The list has been dominated by Chinese and Korean companies. Over the recent years, Panasonic has been betting big on Tesla Inc. (TSLA) from the early days of the electric vehicle (EV) market. However, there's been a recent slowdown in EV demand, which has affected Panasonic's battery business, as the company has been one of the main suppliers of Tesla, Mazda, and Subaru. More Automotive: Detroit automakers warn UK trade deal will hurt US auto industryFormer Nissan CEO makes a harsh prediction for the company's futureToyota makes decision on popular crossover US customers will love Other recent challenges, including fierce competition from Chinese companies such as Haier and Midea, have also impacted the company's electronics sector (TVs, refrigerators, microwaves, and similar products), writes NDTV World. On May 9, the company announced it will cut 10,000 staff globally, with half of the jobs eliminated in Japan, and half overseas. The layoffs account for about 4% of its global workforce of around 230,000 employees, reported Reuters. The electronic giant's restructuring move aims to enhance profitability and achieve a 10% return on equity by the fiscal year ending in March. Panasonic CEO Yuki Kusumi recently said its main customer (most likely Tesla) is urging the company to accelerate the start of production at its new Kansas plant, reported Financial Times. "As we've been told by our customer to get Kansas moving quickly, we're hurrying to do so," Kusumi said in an interview in Tokyo. While he did not directly mention Tesla, the EV giant was Panasonic's biggest customer for a long time. The desire to accelerate supplies of Panasonic's American-made products stems from U.S. tariffs that have made Chinese batteries less profitable to bring to the country. Kusumi mentioned that the customer is thinking about switching from Chinese-made batteries to domestically produced ones, as this move could make their electric vehicles eligible for U.S. consumer tax credits. For about eight years, the tech giant has been producing batteries in Nevada, supporting Tesla in boosting production and sales of Tesla's Model 3 and Model Y vehicles, writes The Japan Times. The Kansas battery factory has been under construction since 2022, and it is expected to reach mass production by March 2027, when it will lift its production capacity by 60%. While Panasonic is urged to speed up the production start at its second U.S. factory in Kansas, the company is halting plans for a third plant. "The talk of a third factory was based on anticipation of large-scale EV adoption, but I doubted we'd see a quick transition, especially in the U.S., because of issues such as charging infrastructure, battery cost, and reliability," Kusumi said as reported by The Japan Times. "As things stand now, I'm relieved we didn't move forward with securing a location for a third factory." Related: Elon Musk gets devastating news as the 'anti-Tesla' catches on Kusumi also discussed the possibility of lower demand for EVs, especially at a time when Tesla's CEO Elon Musk has been a target of many unsatisfied U.S. citizens who are against Trump's politics and Musk's leadership of the Department of Government Efficiency. Protests had sometimes even reached the point of vandalism, with Tesla vehicles being set on fire. Tesla's first-quarter automotive sales dropped 20% year over year. Still, Kusumi remains optimistic. "There are risks, but we are planning on robust demand for batteries from our main customer as of now," he said. The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Japan Times
14-05-2025
- Automotive
- Japan Times
Panasonic CEO says battery plans align with slower EV demand
Panasonic Holdings' decision not to rush into expanding capacity to build batteries has been validated by slower global demand for electric vehicles, CEO Yuki Kusumi said. The supplier of lithium-ion batteries to Tesla is getting ready to start production at a second U.S.-based factory in Kansas, but has frozen plans for a third plant. Panasonic has been making batteries in Nevada since 2017, helping the carmaker ramp up volume sales for Tesla's Model 3 and Model Y cars. Panasonic may also be poised to benefit from having factories in the U.S. as Tesla and others seek to reduce their reliance on Chinese battery-makers, because of the tariffs being imposed on items imported into the U.S. and incentives provided under the Inflation Reduction Act. While Honda, Hyundai and others are expanding battery production in the U.S., Panasonic is well ahead of its rivals.
Bloomberg
14-05-2025
- Automotive
- Bloomberg
Panasonic CEO Says Battery Plans Align With Slower EV Demand
Panasonic Holdings Corp. 's decision not to rush into expanding capacity to build batteries has been validated by slower global demand for electric vehicles, Chief Executive Officer Yuki Kusumi said. The supplier of lithium-ion batteries to Tesla Inc. is getting ready to start production at a second US-based factory in Kansas, but has frozen plans for a third plant. Panasonic has been making batteries in Nevada since 2017, helping the carmaker ramp up volume sales for Tesla's Model 3 and Model Y cars.
