Latest news with #batteryproduction
Auto Blog
29-05-2025
- Business
- Auto Blog
Princeton Reports that Trump's ‘Beautiful Bill' Threatens to Decimate EV Growth by 2030
EV battery production might slow to a crawl, which would kill EV sales House Republicans voted along party lines to pass Trump's 'One Big Beautiful Bill Act' late last week, leaving it up to the Senate to decide if the bill passes as written. If the Senate doesn't amend the bill, the EV industry will be in deep trouble, with one analysis of the bill suggesting that sales of EVs could grind to a halt as battery production stalls. Princeton University's Zero Lab, which leads the energy and climate policy evaluation project known as the 'REPEAT Project,' recently published a comprehensive report detailing the potential impact of federal policies on the energy transition in the United States. The analysis includes electrified vehicles, and Princeton's findings are alarming. It suggests that by 2030, growth in EV battery manufacturing may be unnecessary, and sales of electric vehicles will decline by at least 40 percent. 2025 VW ID Buzz One Big Beautiful Bill Act could demolish the EV market The bill, if passed as-is, would end EV tax credits on December 31, 2025, rather than on December 31, 2032. Tax credits ending at the end of the year would likely boost EV sales through 2025 but cause long-term damage, according to Princeton. In addition to raising energy costs for the home, the bill would 'kill off the nascent clean hydrogen, CO2 management, and nuclear power sectors' as well as grind EV battery manufacturing to a halt. 'Without EV tax credits, planned battery cell manufacturing would result in large overcapacity,' it said, adding that new battery cell manufacturing expected to start in 2025 would bring U.S. battery production above 400 GWh per year, which is already above what would be needed under the bill. Currently, battery cell production in the United States stands at 130 GWh, with an additional 299 GWh expected to come online by the end of the year. By 2030, another 436 GWh of battery cell production is planned. According to Princeton's review, the One Big Beautiful Bill Act assigns the maximum capacity needed at 304 GWh. This means that at the end of the year, the United States will be overproducing by about 29 percent. Additional battery production won't even be necessary, Princeton said, noting that 29 percent overproduction is conservative, but the number could reach as high as 72 percent. While Princeton admits 'quantifying [the full impact to the EV market] is beyond the scope of this report,' it cautions two massive effects on the broader supply chain: overall demand for electric vehicle assembly and battery cell and pack manufacturing will drop sharply, and the 'loss of the battery component and critical minerals sourcing requirements enshrined in the 30D new clean vehicles tax credit would further reduce demand for battery inputs produced in the United States.' Volkswagen battery recycling pilot plant — Source: Volkswagen How the One Big Beautiful Bill Act dampens EV sales The 30D tax credit applies to clean vehicles built in North America, with battery components sourced from North America, and which use critical minerals (such as lithium) produced, processed, or recycled in North America. A 45X Advanced Manufacturing Production Tax Credit incentivizes companies to build the infrastructure necessary for manufacturing, processing, or recycling batteries stateside. In tandem, these tax credits incentivized over $85 billion of capital investments in EV and hybrid assembly and battery manufacturing in the United States, putting over 100,000 Americans to work. Without tax credits, demand for electric vehicles wanes significantly, according to Princeton. The United States is expected to manufacture between 7 million and 7.1 million electric vehicles through 2030. Currently, the demand for EVs is expected to be between 6.2 million and 8.8 million. If the bill passes, demand could drop to somewhere between 1.8 million and 4.5 million vehicles, representing a 40 percent decline— or worse. Like with batteries, EV manufacturing in the United States could grind to a halt if not reverse substantially. EV charging port — Source: Getty Final thoughts Incentives and tax breaks have attracted many consumers to electric vehicles, and this bill threatens to eliminate that. Moreover, EV charging infrastructure is driven by EV sales, so if people aren't buying new EVs, expect EV charging station providers to stand still on growing and improving their networks.
Sustainability Times
12-05-2025
- Automotive
- Sustainability Times
Chinese Battery Giants Shatter U.S. Control: $100 Billion Lithium Revolution Unleashed as Washington Faces Energy Dominance Collapse
IN A NUTSHELL 🔋 Kandi Technologies and CBAK Energy are establishing two lithium battery production facilities in the U.S. to meet growing demand. and are establishing two lithium battery production facilities in the U.S. to meet growing demand. 📈 The partnership aims to capitalize on the expanding off-road and recreational vehicle market, projected to reach $25 billion by 2030. 🌍 By setting up local production, the companies aim to mitigate risks from geopolitical tensions and leverage U.S. clean energy incentives. 🔧 The facilities will integrate battery cell and pack production, enhancing supply chain agility and aligning with global sustainability goals. The collaboration between Kandi Technologies and CBAK Energy marks a significant development in the U.S. energy landscape. By establishing lithium battery production facilities on American soil, these Chinese firms are positioning themselves to meet the increasing demand for electric power in the off-road and recreational vehicle sectors. Amid rising geopolitical tensions, this move underscores a strategic focus on localizing production and fortifying supply chains. The partnership promises to deliver high-performance battery systems, aligning with U.S. clean energy goals and offering a resilient response to potential global supply disruptions. Strategic Shift, Local Focus The initiative by Kandi Technologies and CBAK Energy represents a calculated strategic shift aimed at strengthening local production capabilities. The first facility will focus on the assembly of battery packs, while the second will concentrate on manufacturing battery cells. Each facility will function as a joint venture, with separate ownership structures reflecting the specific objectives and scale of each project. Kandi will lead the battery pack assembly plant, holding a 90% stake, while CBAK will take charge of the battery cell manufacturing, also retaining a 90% share. This dual approach is designed to integrate the production process, from initial cell manufacturing to the assembly of complete systems, ensuring a streamlined operation. By setting up these plants, the companies aim to build a robust domestic supply chain, thereby reducing reliance on international sources. This move is further supported by clean energy incentives from the U.S. Inflation Reduction Act, which encourages the localization of energy production. Such strategic positioning not only helps in mitigating the risks associated with global supply chain disruptions but also enables these companies to capitalize on the burgeoning U.S. market for clean energy solutions. 'Revolutionary Nuclear Breakthrough': World's First Compact Detector Set to Unleash Unprecedented Energy Era, Sparking Global Power Shift Incentives and Expansion The decision to establish these facilities in the U.S. aligns with broader goals of expanding market presence and leveraging local incentives. According to Feng Chen, CEO of Kandi Technologies, localizing production enhances the agility of the supply chain and aligns with U.S. clean energy policy incentives. This strategic move positions the companies to meet the rapidly growing demand in the off-road and recreational vehicle category, potentially creating significant shareholder value. While the specific locations for these facilities are still under consideration, CBAK Energy is also expanding its production capacity globally. The company plans to reach a production capacity of 7.6 gigawatt-hours by the end of 2025. Additionally, new production facilities are being established in Southeast Asia, operational by 2026, to mitigate geopolitical risks. The North American market for off-road vehicles, valued at $16.7 billion in 2024, is projected to grow to approximately $25.0 billion by 2030, providing a lucrative opportunity for this partnership to tap into the expanding battery demand. Groundbreaking Decision: Deep Fission Unleashes Revolutionary Underground Solution for Nuclear Reactors Fuel and Waste, Astonishing the World Navigating Geopolitical Tensions The collaboration between Kandi Technologies and CBAK Energy unfolds against a backdrop of escalating geopolitical tensions, particularly between the U.S. and China. Recent trade disputes, including China's suspension of exports of critical minerals, highlight the vulnerability of global supply chains. This partnership is a strategic response aimed at minimizing these geopolitical risks by establishing a more resilient and localized supply infrastructure. Zhiguang Hu, CEO of CBAK Energy, emphasizes that their expertise in cell design and production is pivotal for setting up a reliable local supply for emerging vehicle platforms. The collaboration not only reflects a shared vision to globalize advanced battery manufacturing but also adapts to the evolving demands of the U.S. market. By focusing on local production and supply, Kandi and CBAK are effectively insulating themselves from potential international trade disruptions, ensuring a steady supply of battery systems for the U.S. market. 'Everything Went Dark, Then It Moved': Robot Dog Revives Radioactive Crane in Terrifying Nuclear Site Emergency Maneuver The Future of Battery Production As the demand for off-road and recreational vehicles continues to surge, the need for efficient and high-performance battery systems becomes increasingly critical. The partnership between Kandi Technologies and CBAK Energy is poised to deliver on this demand, offering advanced battery solutions tailored for specific applications. Their focus on integrating cell and pack production not only enhances efficiency but also promises to deliver cutting-edge technology to the market. By investing in U.S.-based facilities, these companies are preparing to play a significant role in the future of battery production. This move also aligns with broader global trends towards sustainable energy solutions and the transition to electric vehicles. As they navigate complex geopolitical landscapes and leverage local incentives, Kandi and CBAK are setting a precedent for the future of energy production in the United States. The strategic collaboration between Kandi Technologies and CBAK Energy marks a pivotal moment in the landscape of battery production, with far-reaching implications for the U.S. market. As they develop local facilities, they not only address immediate market demands but also contribute to shaping a sustainable energy future. How will this partnership influence the broader dynamics of international trade and energy production in the years to come? Did you like it? 4.6/5 (20)
CNA
09-05-2025
- Automotive
- CNA
Britain announces 1 billion pound AESC gigafactory funding deal
LONDON :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. ($1 = 0.7535 pounds)
