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Tag: Electric vehicles

  • Elon Musk sells $3.95 billion worth of Tesla stock

    Elon Musk sells $3.95 billion worth of Tesla stock

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    Twitter’s new owner and Tesla CEO Elon Musk has sold nearly $4 billion worth of Tesla shares, according to regulatory filings.

    Musk, who bought Twitter for $44 billion, sold 19.5 million shares of the electric car company from Nov. 4 to Nov. 8, according to Tuesday’s filings with the Securities and Exchange Commission.

    He sold $7 billion of his Tesla stock in August as he worked to finance the Twitter purchase he was trying to get out of at the time. In all, Musk has sold more than $19 billion worth of Tesla stock since April, including those in Tuesday’s filings, likely to fund his share of the Twitter purchase.

    Most of Musk’s wealth is tied up in shares of Tesla Inc. On Tuesday, his personal net worth dropped below $200 billion, according to Forbes, but he is still the world’s richest person.

    Musk had lined up banks including Morgan Stanley to help finance the Twitter deal. His original share of the deal was about $15.5 billion, Wedbush Analyst Dan Ives estimated . But if equity investors dropped out, Musk would be on the hook to replace them or throw in more of his own money.

    Tesla’s shares closed down $5.78, or 2.9%, at $191.30. The stock has lost 52% of its value since the start of this year. In comparison, the S&P 500 index has lost about 20% of its value so far this year.

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    November 9, 2022
  • UK’s first large-scale lithium refinery chooses location as race for ‘white gold’ intensifies

    UK’s first large-scale lithium refinery chooses location as race for ‘white gold’ intensifies

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    A lithium-ion battery photographed at a Volkswagen facility in Germany. Lithium-ion batteries are crucial components in electric vehicles.

    Jan Woitas | Picture Alliance | Getty Images

    LONDON — A facility described as the U.K.’s “first large-scale lithium refinery” will be located in the north of England, with those behind the project hoping its output will hit roughly 50,000 metric tons each year once up and running.

    On Monday, a statement released by Green Lithium on the website of the London Stock Exchange said construction of the £600 million (around $687 million) project was expected to last three years, with commissioning slated for 2025.

    The refinery will be based at Teesport, a major port on Teesside. Green Lithium said its product would “go into the supply chain for lithium-ion batteries, energy storage, grid stabilisation and EV batteries.”

    Alongside its use in cell phones, computers, tablets and a host of other gadgets synonymous with modern life, lithium — which some have dubbed “white gold” — is crucial to the batteries that power electric vehicles.

    The U.K. wants to stop the sale of new diesel and gasoline cars and vans by 2030. It will require, from 2035, all new cars and vans to have zero tailpipe emissions. The European Union, which the U.K. left on Jan. 31, 2020, is pursuing similar targets.

    Read more about electric vehicles from CNBC Pro

    With demand for lithium rising, European economies are attempting to shore up their own supplies and reduce dependency on other parts of the world.

    In a translation of her State of the Union speech last month, European Commission President Ursula von der Leyen said “lithium and rare earths will soon be more important than oil and gas.”

    As well as addressing security of supply, von der Leyen, who switched between several languages during her speech, also stressed the importance of processing.

    “Today, China controls the global processing industry,” she said. “Almost 90% … of rare earth[s] and 60% of lithium are processed in China.”

    “So we will identify strategic projects all along the supply chain, from extracting to refining, from processing to recycling,” she added. “And we will build up strategic reserves where supply is at risk.”

    Read more about energy from CNBC Pro

    Back in the U.K., Business Secretary Grant Shapps said Green Lithium’s refinery would “deliver more than 1,000 jobs during its construction and 250 long-term, high-skill jobs for local people when in operation.”

    “It is also allowing us to move quickly to secure our supply chains of critical minerals, as we know that geopolitical threats and global events beyond our control can severely impact the supply of key components that could delay the rollout of electric vehicles in the UK,” he added.

    The news about Green Lithium comes after Britishvolt, another firm looking to establish a foothold in the electric vehicle sector, said it had secured short-term funding that would enable it to stave off administration for the time being. The company said its employees had also agreed to a pay cut for November.

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    November 8, 2022
  • Elon Musk Has a Very Bad Surprise for Tesla Shareholders

    Elon Musk Has a Very Bad Surprise for Tesla Shareholders

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    The fears of Tesla  (TSLA) – Get Free Report shareholders and fans are confirmed. 

    Elon Musk, the CEO of the famous manufacturer of premium electric vehicles, is paying a hefty price for his acquisition of Twitter  (TWTR) – Get Free Report. 

    And unsurprisingly, Tesla is paying the price. The billionaire has just sold 19.5 million shares of Tesla for a total amount of $3.95 billion, according to regulatory documents filed on November 8 in the evening.

    The sale was completed in 38 transactions on November 4, 7 and 8, just days after the Twitter acquisition was completed. The tech tycoon had taken control of the social network on October 27 after a six-month battle marked by twists and turns and a stop in the courts.

    The documents thus confirm the speculations that have been circulating in recent days. According to these rumors not commented on by Musk, he was going to have to sell Tesla shares to shore the deal.

    “Musk sold $4 billion of stock according Form 4’s filed,” said Wedbush analyst Dan Ives. “The Twitter deal remains an albatross in many ways but it looks like the Musk stock sale worries now should be done. Tesla stock down big since Twitter deal. Frustrating situation for all.”

    Exodus of Advertisers

    Twitter cost Musk too much, $44 billion. The billionaire is in debt of about $13 billion which is secured against his remaining stake in Tesla as part of the leveraged buyout. Since his takeover on Oct. 27, he has been trying to find sources of revenue for the social network. 

    The problem is that he will have to dig deeper than that because the company is losing $4 million a day, according to the billionaire. One after another, advertisers are suspending the promotion of their products and services on the platform for fear it will become a “hellscape” under Musk, who defines himself as a “free speech absolutist.”

    Advertising accounts for more than 91% of Twitter’s revenue.

    Gene Munster, managing partner at Loup Funds, warned on November 7 that Musk could be forced to sell additional Tesla shares if advertisers continue to leave Twitter.

    “They have a month here to kind of kitchen sink things and get people to reset with what their products are and get advertisers to understand what their content moderation is,” Munster told CNBC on Nov. 7. “If that yields the current environment, he’s gonna have to sell shares.”

    ‘Avoid an Emergency Sale’

    This is the third time Musk has sold Tesla stock this year. He sold over $8 billion worth of shares in the electric vehicle maker in April and sold nearly $7 billion worth of Tesla shares in August to fund the deal.

    In August, he had indicated, during an exchange on Twitter with a shareholder and fan of Tesla, that he had sold his shares to avoid having to do so urgently in case he was forced to acquire. He also said he wouldn’t sell any more Tesla shares, at least this year. At the time, the technoking had withdrawn its purchase offer from the table but had to put it back on October 4 a few days before the start of a trial which did not look good for him. 

    It is therefore a huge about-face on the part of the billionaire, whose essential fortune is based on his shares in Tesla and his aerospace company SpaceX.

    “@elonmusk are you done selling?” the Twitter user asked him on August 9.

    “Yes,” Musk responded. “In the (hopefully unlikely) event that Twitter forces this deal to close *and* some equity partners don’t come through, it is important to avoid an emergency sale of Tesla stock.”

     At the end of the Nov. 7 trading session, Tesla shares fell to their lowest level in 52 weeks, at $186.75

    Tesla shares are down 15% since Musk finalized the Twitter deal on Oct. 27. Since Musk announced his bid on April 25, Tesla shares have lost a total of 43% of their value to $191.30. This represents a drop in market value of approximately $454 billion. 

    Tesla, which was until now the sixth largest company in the world in terms of market capitalization, was overtaken on Nov. 7 by Berkshire Hathaway  (BRK.A) – Get Free Report, the holding company of legendary investor Warren Buffett.

    The more Musk is involved in Twitter, the more Tesla sinks in the stock market. The billionaire said on Nov. 4, at the Baron Investment Conference, that his workload had shot up from “78 hours a week to probably 120” since he purchased Twitter.

    Over the long term, Munster believes that the Twitter acquisition isn’t going to be a particular problem for Tesla, which has a roadmap filled with products like the Semi truck on Dec. 1, the highly anticipated Cybertruck in mid-2023, robotaxis in 2024 and the human robot Optimus in 2023.

    “Musk purchasing Twitter means very little to the future of Tesla and SpaceX,” Munster wrote in a research note last month. “He will continue to give the bulk of his energy and time to both companies.”

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    November 8, 2022
  • America’s Tai faces uphill battle to defuse EU trade war fears

    America’s Tai faces uphill battle to defuse EU trade war fears

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    PRAGUE — U.S. Trade Representative Katherine Tai traveled more than 4,000 miles to prevent a transatlantic trade war over electric vehicles, but her EU counterparts signaled on Monday that they would be a tough crowd to win round.

    The growing spat hinges on U.S. legislation that encourages consumers via tax credits to “Buy American” when it comes to choosing an electric car.

    At a time when the U.S. and Europe want to present a united front against Russia, this protectionist measure has triggered outrage in many EU countries, including France and Germany, two leading European carmaking nations. Beyond the EU, China, Japan and South Korea have also voiced concern.

    After speaking with Tai at a meeting of EU ministers in Prague, the bloc’s trade chief Valdis Dombrovskis predicted it would be difficult to resolve the dispute.

    “It will not be easy to fix it  — but fix it we must,” he said.

    Among the 27 EU countries, anxiety about the U.S. measure is growing. Sweden’s new trade minister, Johan Forssell, whose country takes over the presidency of the Council of the EU in January, told POLITICO on Sunday that aspects of the U.S. legislation were “worrying” and “not in accordance with [World Trade Organization] rules.” 

    Another senior official stressed: “It’s not only one or two member states, which are concerned … It’s also the small ones; they will have no access at all” to the U.S. market.

    French President Emmanuel Macron and German Chancellor Olaf Scholz agreed over lunch last week that the EU should retaliate if Washington pushed ahead with the controversial bill. Macron floated the idea of a “Buy European Act” to strike back. 

    The new tax credits for electric vehicles are part of a huge U.S. tax, climate and health care package, known as the Inflation Reduction Act, which passed the U.S. Congress in August.

    The idea is that a U.S. consumer can claim back $7,500 of the value of an electric car from their tax bill. To qualify for that credit, however, the car needs to be assembled in North America and contain a battery with a certain percentage of the metals mined or recycled in the U.S., Canada or Mexico. 

    Czech Trade Minister Jozef Síkela, whose country currently holds the presidency of the Council of the EU, said that European carmakers wanted to qualify for the scheme, just as the North Americans do.  

    In its current form, the bill is “unacceptable,” and “is extremely protective against exports from Europe,” said Síkela as he walked into Monday’s meeting. “We simply expect that we will get the same status as Canada and Mexico.” 

    U.S. Trade Representative Katherine Tai and European Commission Executive Vice President Valdis Dombrovskis | Jim Watson/AFP via Getty Images

    “But we need to be realistic,” Síkela told reporters later. “This is our starting point in the negotiations and we’ll see what we’ll manage to negotiate at the end.”

    In a bid to soothe tensions, a joint task force was set up last week by the European Commission and the U.S. The task force is supposed to meet at the end of this week, although the exact date isn’t yet fixed, according to the senior official. 

    Asked whether Brussels would retaliate should no agreement be struck with Washington, Dombrovskis took a cautious approach: “Setting up this task force is already … a response of us, raising those concerns … At this stage, we are focusing on a negotiated solution before considering what other options there may be.” 

    The midterm elections in the U.S., where President Joe Biden’s Democrats look likely to lose ground, compound the difficulties. 

    It doesn’t seem like the tensions will be eased by the next Trade and Technology Council, which takes place between U.S. and European negotiators in early December. 

    Dismay over the U.S. subsidies has overshadowed the preparatory work for the next TTC meeting, for which the EU and businesses on both sides of the Atlantic want to see rapid concrete results to avoid the perception that the format is simply a talking shop.

    Tai herself had no immediate comment in Prague, but later released a statement on her meeting with Síkela that gave no hint of a breakthrough.

    “Ambassador Tai and Minister Síkela discussed the ongoing work of the Trade and Technology Council, and the importance of achieving meaningful results for the December TTC Ministerial and beyond.  They also discussed the newly-created U.S.-EU Task Force on the Inflation Reduction Act,” the statement said.  

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    Camille Gijs and Barbara Moens

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    October 31, 2022
  • Electric Cars Keep Bursting Into Flames In Florida

    Electric Cars Keep Bursting Into Flames In Florida

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    Hurricane Ian caused billions in damage and upended lives, but few people expected that it would cause electric vehicles to burst into flames.

    But that’s just what happened.

    In the days following Hurricane Ian, the saltwater flooding in coastal areas caused the lithium-ion batteries in electric vehicles to combust.

    Firefighters in Naples, for example, needed to extinguish six blazes in EVs that had been submerged in seawater.

    Heather Mazurkiewicz, a spokesperson for the fire department, said firefighters needed “thousands upon thousands” of gallons of water to extinguish the EV fires — much more than what a typical gas car fire would require.

    Even worse, one of the EVs reignited, destroying two houses.

    Related: This Solar-Powered Florida Town Was Built to Withstand Hurricanes. Did It Work?

    Why EVs are burning

    Eric Wachsman, the Director of Maryland’s Energy Institute, told CNBC that lithium-ion battery cells have electrodes placed close together and are filled with a flammable liquid electrolyte.

    When the battery cells get damaged or defective, “this flammable liquid could get into what’s called a thermal runaway situation, where it just starts sort of boiling, and that results in a fire,” Wachsman said.

    For this reason, some companies, such as Tesla and Ford, are switching to lithium iron phosphate (LFP) batteries, which are much less combustible.

    But that doesn’t stop the cars that already have lithium-ion battering from catching fire.

    Florida takes action

    To protect first responders and firefighters, Jack Danielson, executive director of the National Highway Traffic Safety Administration, directed those “not involved in immediate lifesaving missions” to identify flooded electric vehicles with lithium-ion batteries and move them “at least 50 feet” away from other structures, vehicles, and combustibles.

    Senator Rick Scott also wrote a letter to U.S. Transportation Secretary Pete Buttigieg, D, calling for action.

    “This emerging threat has forced local fire departments to divert resources away from hurricane recovery to control and contain these dangerous fires,” Scott wrote. “Alarmingly, even after the car fires have been extinguished, they can reignite in an instant.”

    There are over 95,000 registered EVs in Florida, the second-highest number in the nation.

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    Jonathan Small

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    October 28, 2022
  • Meet the company that’s helping Mahindra & Mahindra power its EV dream

    Meet the company that’s helping Mahindra & Mahindra power its EV dream

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    Homegrown automaker known for its robust SUVs like Thar and Scorpio is all set to enter the electric personal mobility segment early next year with an all electric XUV 400. To set-up a network of EV charging stations for its range of upcoming electric SUVs, the company has partnered with Gujarat-based CHARGE+ZONE, an EV Charging Network company. By the end of this fiscal, Mahindra’s EV users will have access to the Charge+Zone’s network of 2500+ charging points across 25 cities and 10,000kms of highways, it said.

    This partnership will involve installation, commissioning, and maintenance of fast DC chargers at various locations including owned and rented sites, offices or any other areas nominated by Mahindra, its affiliates and group companies. “These partnerships further enable us to expand our vision of EV accessibility to all. With this partnership, we aim to build a well-connected ecosystem that would not only provide Electric SUV users with access to fast charging points across the country but will also help the EV ecosystem grow,” Kartikey Hariyani, Founder and CEO, CHARGE+ZONE said.

    The company has set up a target of creating a network of one million charging points by 2030. CHARGE+ZONE specialises in high-speed charging network for electric buses, trucks and cars. “Our partnership with CHARGE+ZONE will ensure robust EV infrastructure solutions for all our customers. We look forward to bringing sustainable, profitable and efficient EV solutions to accelerate the mass adoption of battery electric vehicles in India, and we are delighted to have joined hands with them for our upcoming range of electric vehicles in India, including the soon to be launched XUV400 EV,” Veejay Nakra, President – Automotive Sector, Mahindra & Mahindra Ltd. Said. 

    Designed to charge e-4ws, these charging stations will be open to the public as well to the users and partners of Mahindra. CHARGE+ZONE’s charging stations are rapid DC charging points with the CCS2 charging protocol that provides 80-100% charge in 20-30 minutes and full charge in an hour depending on the EV’s battery size. These chargers also come with additional amenities of food-courts, restaurants, hotels etc as well as with the facility of Type-2 AC chargers wherever needed, the company said.
     
    CHARGE+ZONE  has already set-up up 1450+ charging points across 650+ EV charging stations, powering around 5000 EVs on a daily basis. It recently also partnered with Marriott International to deploy EV charging stations across all its properties in India. 

    Also Read: Mahindra & Mahindra partners with Indian start-up Statiq to make EV adoption accessible and affordable

    Also Read: Uber introduces electric taxis in Delhi-NCR

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    October 28, 2022
  • GM, Ford Say They Aren’t Running Twitter Ads As They Assess Changes Under Elon Musk

    GM, Ford Say They Aren’t Running Twitter Ads As They Assess Changes Under Elon Musk

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    Elon Musk carrying a sink into Twitter headquarters in San Francisco on Oct. 26.

    Twitter account of Elon Musk/AFP via Getty Images

    Elon Musk’s takeover of Twitter has many users worried about changes to the site under the mercurial billionaire, including big corporate advertisers. Auto giants General Motors and Ford were among the first to say they won’t be putting ads on the platform until they understand the scope of those changes.

    “We are engaging with Twitter to understand the direction of the platform under their new ownership,” the Detroit-based automaker said in an e-mail statement late Friday. “As is the normal course of business with a significant change in a media platform, we have temporarily paused our paid advertising. Our customer care interactions on Twitter will continue.”

    Ford is “not currently advertising on Twitter,” said spokesman Said Deep. “We will continue to evaluate the direction of the platform under the new ownership.”

    Like GM, it will also keep engaging with Ford customers on the site.

    The moves coincide with Musk’s attempt to calm Twitter advertisers who may be worried that his comments about being “free speech absolutist” mean the site will be more welcoming to extremist viewpoints, racism and broadly offensive content. Musk said Twitter can’t become “a free-for-all hellscape” ahead of the purchase and tweeted on Friday that he was creating a “content moderation council with widely diverse viewpoints” to set new ground rules.

    Both GM and Ford are also looking to take electric vehicle market share away from Musk’s Tesla, the world’s top EV brand. Advertising on a platform owned by the man who also leads a rival carmaker creates an unusual situation. French automaker Citroёn acknowledged as much in a cryptic tweet on Friday.

    “Hello to the social media platform owned by one of our competitors,” the company said without elaborating.

    Hyundai and Kia, which are also aggressively ramping up EV sales, weren’t immediately able to comment on the matter.

    Smaller electric vehicle companies, including Lucid, Rivian and Fisker, told Forbes they had no plans to change their use of Twitter. All three are in startup mode, particularly Fisker, which launches its first model, the battery-powered Ocean SUV, next month.

    Still, Fisker CEO and cofounder Henrik Fisker, who’s had legal and professional clashes with Musk, deleted his personal Twitter account in April after the platform agreed to Musk’s purchase offer.

    GM’s move was reported earlier by CNBC.

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    Alan Ohnsman, Forbes Staff

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    October 28, 2022
  • Scholz and Macron threaten trade retaliation against Biden

    Scholz and Macron threaten trade retaliation against Biden

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    BERLIN/PARIS — After publicly falling out, Olaf Scholz and Emmanuel Macron have found something they agree on: mounting alarm over unfair competition from the U.S. and the potential need for Europe to hit back.

    The German chancellor and the French president discussed their joint concerns during nearly three-and-a-half hours of talks over a lunch of fish, wine and Champagne in Paris on Wednesday.

    They agreed that recent American state subsidy plans represent market-distorting measures that aim to convince companies to shift their production to the U.S., according to people familiar with their discussions. And that is a problem they want the European Union to address.

    The meeting of minds on this issue followed public disagreements in recent weeks on key political issues such as energy and defense, fracturing what is often seen as the EU’s central political alliance between its two biggest economies.

    But even though their lunch came against an awkward backdrop, both leaders agreed that the EU cannot remain idle if Washington pushes ahead with its Inflation Reduction Act, which offers tax cuts and energy benefits for companies investing on U.S. soil, in its current form. Specifically, the recently signed U.S. legislation encourages consumers to “Buy American” when it comes to choosing an electric vehicle — a move particularly galling for major car industries in the likes of France and Germany.

    The message from the Paris lunch is: If the U.S. doesn’t scale back, then the EU will have to strike back. Similar incentive schemes for companies will be needed to avoid unfair competition or losing investments. That move would risk plunging transatlantic relations into a new trade war.

    Macron was the first to make the stark warning public. “We need a Buy European Act like the Americans, we need to reserve [our subsidies] for our European manufacturers,” the French president said Wednesday night in an interview with TV channel France 2, referring specifically to state subsidies for electric cars.

    Scholz and Macron agreed the EU must act if the US progresses a ‘Buy American’ act offering incentives for companies investing on US soil, which would particularly affect French and German electric vehicle industries | David Hecker / Getty Images

    Macron also mentioned similar concerns about state-subsidized competition from China: “You have China that is protecting its industry, the U.S. that is protecting its industry and Europe that is an open house,” Macron said, adding: “[Scholz and I] have a real convergence to move forward on the topic, we had a very good conversation.”

    Crucially, Berlin — which has traditionally been more reluctant when it comes to confronting the U.S. in trade disputes — is indeed backing the French push. Scholz agrees that the EU will need to roll out countermeasures similar to the U.S. scheme if Washington refuses to address key concerns voiced by Berlin and Paris, according to people familiar with the chancellor’s thinking.

    Scholz is not a big fan of Macron’s wording of a “Buy European Act” as it evokes the nearly 90-year-old “Buy American Act,” which is often criticized for being protectionist because it favors American companies. But the chancellor shares Macron’s concerns about unfair competitive advantages, the people said.

    Earlier this month, Scholz said publicly that Europe will have to discuss the Inflation Reduction Act with the U.S. “in great depth.”

    In a blow to Germany’s industrial core, chemical giant BASF announced plans Wednesday to reduce its business activities and jobs in Germany, with company chief Martin Brudermüller citing heightened gas prices — which he criticized for being six times as high as in the U.S. — as well as increasing EU regulation as the reason.

    “The decisions of a successful company like BASF show that we need to improve the overall attractiveness of Germany as a business location,” German Finance Minister Christian Lindner said in a tweet, vowing to take various measures such as “tax relief for private investments.”

    Before bringing out the big guns, though, Scholz and Macron want to try to reach a negotiated solution with Washington. This should be done via a new “EU-U.S. Taskforce on the Inflation Reduction Act” that was established during a meeting between European Commission President Ursula von der Leyen and U.S. Deputy National Security Adviser Mike Pyle on Tuesday.

    The taskforce of EU and U.S. officials will meet via videoconference toward the end of next week, underlining the seriousness of the European push.

    On top of that, EU trade ministers will gather for an informal meeting in Prague next Monday, with U.S. trade envoy Katherine Tai planning to attend to discuss the tensions.

    In Brussels, the Commission is also looking with concern at Macron’s wording of a “Buy European Act,” which evokes protectionist tendencies that the EU institution has long sought to fight.

    “Every measure we take needs to be in line with the World Trade Organization rules,” a Commission official said, adding that Europe and the U.S. should resolve differences via talks and “not descend into tit-for-tat trade war measures as we experienced them under [former U.S. President Donald] Trump.”

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    October 27, 2022
  • Renters face charging dilemma as U.S. cities move toward EVs

    Renters face charging dilemma as U.S. cities move toward EVs

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    PORTLAND, Ore. (AP) — Stephanie Terrell bought a used Nissan Leaf this fall and was excited to join the wave of drivers adopting electric vehicles to save on gas money and reduce her carbon footprint.

    But Terrell quickly encountered a bump in the road on her journey to clean driving: As a renter, she doesn’t have a private garage where she can power up overnight, and the public charging stations near her are often in use, with long wait times. On a recent day, the 23-year-old nearly ran out of power on the freeway because a public charging station she was counting on was busy.

    “It was really scary and I was really worried I wasn’t going to make it, but luckily I made it here. Now I have to wait a couple hours to even use it because I can’t go any further,” she said while waiting at another station where a half-dozen EV drivers circled the parking lot, waiting their turn. “I feel better about it than buying gas, but there are problems I didn’t really anticipate.”

    The great transition to electric vehicles is underway for single-family homeowners who can charge their cars at home, but for millions of renters like Terrell, access to charging remains a significant barrier. People who rent are also more likely to buy used EVs that have a lower range than the latest models, making reliable public charging even more critical for them.

    Now, cities from Portland to Los Angeles to New York City are trying to come up with innovative public charging solutions as drivers string power cords across sidewalks, stand up their own private charging stations on city right-of-ways and line up at public facilities.

    The Biden administration last month approved plans from all 50 states to roll out a network of high-speed chargers along interstate highways coast-to-coast using $5 billion in federal funding over the next five years. But states must wait to apply for an additional $2.5 billion in local grants to fill in charging gaps, including in low- and moderate-income areas of cities and in neighborhoods with limited private parking.

    “We have a really large challenge right now with making it easy for people to charge who live in apartments,” said Jeff Allen, executive director of Forth, a nonprofit that advocates for equity in electric vehicle ownership and charging access.

    “There’s a mental shift that cities have to make to understand that promoting electric cars is also part of their sustainable transportation strategy. Once they make that mental shift, there’s a whole bunch of very tangible things they can — and should — be doing.”

    The quickest place to charge is a fast charger, also known as DC Fast. Those charge a car in 20 to 45 minutes. But slower chargers which take several hours, known as Level 2, still outnumber DC fast chargers by nearly four to one, although their numbers are growing. Charging an electric vehicle on a standard residential outlet, or Level 1 charger, isn’t practical unless you drive little or can leave the car plugged in overnight, as many homeowners can.

    Nationwide, there are about 120,000 public charging ports featuring Level 2 charging or above, and nearly 1.5 million electric vehicles registered in the U.S. — a ratio of just over one charging port per 12 cars nationally, according to the latest U.S. Department of Energy data from December 2021. But those chargers are not spread out evenly: In Arizona, for example, the ratio of electric vehicles to charging ports is 18 to one and in California, which has about 39% of the nation’s EVs, there are 16 zero-emissions vehicles for every charging port.

    A briefing prepared for the U.S. Department of Energy last year by the Pacific Northwest National Laboratory forecasts a total of just under 19 million electric vehicles on the road by 2030, with a projected need for an extra 9.6 million charging stations to meet that demand.

    In Los Angeles, for example, nearly one-quarter of all new vehicles registered in July were plug-in electric vehicles. The city estimates in the next 20 years, it will have to expand its distribution capacity anywhere from 25% to 50%, with roughly two-thirds of the new power demand coming from electric vehicles, said Yamen Nanne, manager of Los Angeles Department of Water and Power’s transportation electrification program.

    Amid the boom, dense city neighborhoods are rapidly becoming pressure points in the patchy transition to electrification.

    In Los Angeles, the city has installed over 500 electric vehicle chargers — 450 on street lights and about 50 of them on power poles — to meet the demand and has a goal of adding 200 EV pole chargers per year, Nanne said. The chargers are strategically installed in areas where there are apartment complexes or near amenities, he said.

    The city currently has 18,000 commercial chargers — ones not in private homes — but only about 3,000 are publicly accessible and just 400 of those are DC Fast chargers, Nanne said. Demand is so high that “when we put a charger out there that’s publicly accessible, we don’t even have to advertise. People just see it and start using it,” he said.

    “We’re doing really good in terms of chargers that are going into workplaces but the publicly accessible ones is where there’s a lot of room to make up. Every city is struggling with that.”

    Similar initiatives to install pole-mounted chargers are in place or being considered in cities from New York City to Charlotte, N.C. to Kansas City, Missouri. The utility Seattle City Light is also in the early stages of a pilot project to install chargers in neighborhoods where people can’t charge at home.

    Mark Long, who lives in a floating home on Seattle’s Portage Bay, has leased or owned an EV since 2015 and charges at public stations — and sometimes charges on an outdoor outlet at a nearby office and pays them back for the cost.

    “We have a small loading area but we all just park on the street,” said Long, who hopes to get one of the utility’s chargers installed for his floating community. “I’ve certainly been in a few situations where I’m down to 15, 14, 12 miles and … whatever I had planned, I’m just suddenly focused on getting a charge.”

    Other cities, like Portland, are working to amend building codes for new construction to require electrified parking spaces for new apartment complexes and mixed-use development. A proposal being developed currently would require 50% of parking spaces in most new multi-family dwellings to have an electric conduit that could support future charging stations. In complexes with six spaces or fewer, all parking spaces would need to be pre-wired for EV charging.

    Policies that provide equal access to charging are critical because with tax incentives and the emergence of a robust used-EV market, zero-emissions cars are finally within financial reach for lower-income drivers, said Ingrid Fish, who is in charge of Portland’s transportation decarbonization program.

    “We’re hoping if we do our job right, these vehicles are going to become more and more accessible and affordable for people, especially those that have been pushed out of the central city” by rising rents and don’t have easy access to public transportation, Fish said.

    The initiatives mimic those that have already been deployed in other nations that are much further along in EV adoption.

    Worldwide, by 2030, more than 6 million public chargers will be needed to support EV adoption at a rate that keeps international emissions goals within reach, according to a recent study by the International Council on Clean Transportation. As of this year, the Netherlands and Norway have already installed enough public charging to satisfy 45% and 38% of that demand, respectively, while the U.S. has less than 10% of it in place currently, according to the study, which looked at electrification in 17 nations and government entities that account for more than half of the world’s car sales.

    Some European cities are far ahead of even the most electric-savvy U.S. cities. London, for example, has 4,000 public chargers on street lights. That’s much cheaper — just a third the cost of wiring a charging station into the sidewalk, said Vishant Kothari, manager of the electric mobility team at the World Resources Institute.

    But London and Los Angeles have an advantage over many U.S. cities: Their street lights operate on 240 volts, better for EV charging. Most American city street lights operate on 120 volts, which takes hours to charge a vehicle, said Kothari, who co-authored a study on the potential for pole-mounted charging in U.S. cities.

    That means cities considering pole-mounted charging must also come up with other solutions, from zoning changes to making charging accessible in apartment complex parking lots to policies that encourage workplace fast-charging.

    There also “needs to be a will from the city, the utilities — the policies need to be in place for curbside accessibility,” he said. “So there is quite a bit of complication.”

    Changes can’t come fast enough for renters who already own electric vehicles and are struggling to charge them.

    Rebecca DeWhitt rents a house but isn’t allowed to use the garage. For several years, she and her partner strung a standard extension cord 40 feet (12 meters) from an outlet near the home’s front door, across their lawn, down a grassy knoll and across a public sidewalk to reach their Nissan Leaf on the street.

    They upgraded to a thicker extension cord and began parking in the driveway — also a violation of their rental contract — when their first cord charred under the EV load. They’re still using their home outlet and it takes up to two days to fully charge their new Hyundai Kona. As of now, their best alternative for a full charge is a nearby grocery store which can mean a long wait for one of two fast-charging stations to open up.

    “It’s inconvenient,” she said. “And if we didn’t value having an electric vehicle so much, we wouldn’t put up with the pain of it.”

    ___

    This story was updated to correct attribution of data on charging ports to the U.S. Department of Energy instead of the U.S. Department of Transportation.

    ____

    Associated Press Climate Data Reporter Camille Fassett in Seattle, AP Video Journalists Eugene Garcia in Los Angeles and Haven Daley in San Francisco and AP Business Editor Courtney Bonnell in London contributed to this report.

    ___

    Associated Press climate and environmental coverage receives support from several private foundations. See more about AP’s climate initiative here. The AP is solely responsible for all content.

    ___

    Follow Gillian Flaccus on Twitter at @gflaccus and follow the AP’s climate and environment coverage at https://apnews.com/hub/climate-and-environment.

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    October 26, 2022
  • Emmanuel Macron calls for ‘Buy European Act’ to protect regional carmakers

    Emmanuel Macron calls for ‘Buy European Act’ to protect regional carmakers

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    PARIS — Emmanuel Macron called for a “Buy European Act” on Wednesday to protect carmakers on the Continent in the face of competition from China and in response to the United States’ own controversial scheme to incentivize domestic production.

    Speaking on TV channel France 2, the French president criticized the European Union as being “too open” on the topic of state subsidies for electric cars as it seeks to accelerate its transition to greener energy sources.

    “We need a Buy European Act like the Americans, we need to reserve [our subsidies] for our European manufacturers,” Macron said. “You have China that is protecting its industry, the U.S. that is protecting its industry and Europe that is an open house.”

    France has been leading the charge against Washington’s recent Inflation Reduction Act, which includes tax incentives for U.S. consumers to “Buy American” when it comes to choosing an electric car. The European Union, South Korea, Japan, China and Russia have all complained at the World Trade Organization that this measure violates international trade rules by unfairly discriminating against foreign manufacturers.

    French Finance Minister Bruno Le Maire also recently slammed the U.S. scheme as “jeopardizing the level playing field” and raising the risk of a “new trade war.”

    Macron said in the TV interview he had discussed an EU response to U.S. trade barriers during a lunch with German Chancellor Olaf Scholz at the Elysée Palace earlier on Wednesday. However, it was unclear whether the two leaders share the same view on exactly what steps to take.

    “[Scholz and I] have a real convergence to move forward on the topic, we had a very good conversation,” Macron said.

    Relations between the French president and his German counterpart have been fraught amid disagreements over energy, defense and the economy. But discontent over the U.S. legislation appears to be an area where they converge, given both their countries host major carmakers like Renault and Mercedes-Benz.

    According to an adviser to the French presidency, the two leaders agreed to push the European Commission to prepare a response to the U.S. Inflation Reduction Act.  

    Giorgio Leali contributed reporting.

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    October 26, 2022
  • Are in-wheel motors the future of electric cars? | CNN Business

    Are in-wheel motors the future of electric cars? | CNN Business

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    London
    CNN Business
     — 

    In 1900, Ferdinand Porsche and Ludwig Lohner unveiled an electric car with battery-powered motors attached to its front wheels. It was seen as a sensation, but the technology never took off as petrol cars accelerated to world domination.

    More than a century later, in-wheel motors are making a comeback. Mounted in the rim of an electric vehicle’s wheels, the motors increase efficiency by delivering power directly to where it’s needed most.

    “In-wheel motors are a game changer,” says Luka Ambrozic, chief commercial officer of Slovenian company Elaphe Propulsion Technologies, one of the leading developers of the technology. They offer the “ultimate freedom of design,” he says, giving vehicle manufacturers the opportunity “to build better and smarter cars.”

    By packing everything into the wheels, there’s no need for other components like a gearbox or a drive shaft which usually transfers power from the onboard motor to the wheels.

    This makes the car lighter, Ambrozic tells CNN Business, and it saves energy by reducing the distance the power has to travel. It also frees up space in the vehicle and allows the manufacturer to make the car more aerodynamic. A more aerodynamic vehicle in turn needs less power, which can mean smaller batteries and lighter vehicles, he adds.

    Elaphe, which was founded in 2006 by Gorazd Lampič and quantum physicist Andrej Detela, has designed in-wheel motors for a range of electric vehicles. The Lightyear 0, notable for curved solar panels built into its roof, is equipped with motors co-developed by Elaphe’s in each of its wheels. Lightyear says the car will go into production this year and will have the most efficient production powertrain in the world.


    Aptera Motors, another company that develops solar electric vehicles, has enlisted Elaphe to supply in-wheel motors for its lightweight three-wheeler design, although production is yet to begin. And Lordstown Motors is using Elaphe’s hub motors for its new Endurance line of electric pickup trucks, which it says give the truck genuine four-wheel drive. Commercial production of the pickup truck began in September.

    These examples show that in-wheel motors can be used for both lightweight and heavy-duty applications, says Ambrozic, although the designs must be tweaked for each purpose. “It’s not about having a one-size-fits-all motor,” he says.

    But some industry experts believe in-wheel motors may have limited uptake in mainstream markets. James Edmondson, a senior technology analyst specializing in electric vehicles for market research firm IDTechEx, notes that most big car manufacturers have based their EV platforms on onboard motors. Introducing in-wheel technology would require a complete redesign of the system. “If you have to start from scratch and build up your vehicle from the ground up, it’s a huge investment,” he says.

    All four wheels of the Lordstown Endurance pickup truck are equipped with Elaphe's technology.

    Manufacturers are also concerned about durability and suspension, says Edmondson. In-wheel motors are far more exposed to the elements as well as impacts and vibrations from the road. The motors also make wheels heavier, which can reduce ride comfort, although Edmondson notes this could be compensated for by the weight saved elsewhere on the vehicle.

    According to a 2021 report from research firm Markets and Markets, the demand for in-wheel motors is expected to rise in line with the growth of electric vehicle sales, reaching a value of more than $4 billion by 2026, up from $800 million in 2021.

    The report notes that as electric vehicles become more popular, automakers are looking towards in-wheel motors for their space-saving abilities and improved power efficiency.

    Another major player is Protean Electric, which was acquired by British electric vehicle maker Bedeo in 2021. This year, the company announced a new partnership with Dongfeng Motor Corporation Tehnical Center, a Chinese state-owned automobile manufacturer.

    Elaphe is also eyeing up China for expansion. It plans to scale up its output to more than 100,000 in-wheel motors a year in Slovenia by next year, before launching production in both the United States and China.

    “Now is the time for commercial expansion and production expansion,” says Ambrozic. “We want to be a step ahead of the market to make sure we are ready when the opportunities are right.”

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    October 26, 2022
  • Germany to massively expand electric car charging network

    Germany to massively expand electric car charging network

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    BERLIN (AP) — Germany wants to massively expand the country’s charging network for electric cars, spending 6.3 billion euros ($6.17 billion) over the next three years as it expects more and more drivers to turn away from combustion cars to more climate-friendly vehicles.

    The country’s transportation minister on Wednesday presented a “master plan” for improving the charging infrastructure that had been passed by Chancellor Olaf Scholz’ cabinet earlier in the day.

    “We are not just any automotive location, but a leading one in the world. And that’s why it’s important to us that what we’re preparing succeeds well,” Volker Wissing told reporters in Berlin. “We need a forward-looking expansion of the nationwide charging infrastructure that meets demand and is user-friendly.”

    The share of electric vehicles in Germany grew 24.8% year-on-year to a total share of 14.6% of all newly registered automobiles, according to figures released by the country’s Federal Office for Motor Vehicles.

    There are around 70,000 charging points in the country but only 11,000 of those are fast-chargers, the ministry said.

    That is not enough to sufficiently fulfill the current needs, and it will be even less so as the number of electric cars grows quickly. There is also a big difference in availability of charging points between big cities and rural areas, where it is even harder to find charging stations.

    The German government’s goal is to have 1 million publicly accessible charging points in the country by 2030.

    In order to boost the number of charging points, the federal government will, among other initiatives provide real estate, especially along highways, where new charging stations can be built. Private owners of electric cars will be offered subsidized plans to install solar energy panels at their homes to charge their cars overnight.

    Electric charging is also supposed to get more user-friendly with new digital offers showing drivers where they can charge their cars on the road or being able to check online how much the different charging points demand, the minister said.

    Another issue the government wants to tackle is getting the country’s electric grid ready for the increased demand as more people turn to electric cars.

    “We are expecting an exponential increase in registered vehicles with battery electric drive in the next few years and must prepare accordingly,” the minister said.

    Switching Germans from combustion-engine automobiles to electric cars plays a key role in achieving the government’s climate targets set for the transport sector.

    The transformation to electric cars has also been boosted by a mix of regulatory pressure, tax breaks, improving battery range, and a wider range of vehicles to purchase.

    Europe in general is leading the push into battery-powered cars as electric vehicles enter the mainstream and has promised to phase out internal combustion cars by 2035.

    But availability of charging points is a problem not just in Germany but almost everywhere across the continent.

    “Not only is there an insufficient number of electric charging points along the road networks in most European Union countries, but the vast majority of these do not charge quickly enough,” the European Automobile Manufacturers’ Association said.

    Or as the German minister said: “Electric mobility will only find acceptance if charging is as easy as refueling is today.”

    ___

    Follow all AP stories on climate change issues at https://apnews.com/hub/climate-and-environment.

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    October 25, 2022
  • France enters ‘white gold’ rush as top producer aims to supply Europe with lithium

    France enters ‘white gold’ rush as top producer aims to supply Europe with lithium

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    A Lithium-ion battery photographed at a Volkswagen facility in Germany. The EU is looking to increase the number of electric vehicles on its roads in the coming years.

    Ronny Hartmann | AFP | Getty Images

    Paris-headquartered minerals giant Imerys plans to develop a lithium extraction project that it’s hoped will help meet demand and secure supply for Europe’s emerging electric vehicle market.

    In a statement Monday, Imerys said its Emili Project would be located at a site in the center of France, with the company targeting 34,000 metric tons of lithium hydroxide production each year from 2028.

    According to the business, this level of production would be enough to “equip approximately 700,000 electrical vehicles per year.”

    Alongside its use in cell phones, computers, tablets and a host of other gadgets synonymous with modern life, lithium — which some have dubbed “white gold” — is crucial to the batteries that power electric vehicles.

    The project being planned by Imerys is taking shape at a time when major economies like the EU are looking to ramp up the number of electric vehicles on their roads.

    The EU plans to stop the sale of new diesel and gasoline cars and vans from 2035. The U.K., which left the EU on Jan. 31, 2020, is pursuing similar targets.

    With demand for lithium rising, the European Union — of which France is a member — is attempting to shore up its own supplies and reduce dependency on other parts of the world.   

    In a translation of her State of the Union speech last month, European Commission President Ursula von der Leyen said “lithium and rare earths will soon be more important than oil and gas.”

    As well as addressing security of supply, von der Leyen, who switched between several languages during her speech, also stressed the importance of processing.

    “Today, China controls the global processing industry,” she said. “Almost 90% … of rare earth[s] and 60% of lithium are processed in China.”

    “So we will identify strategic projects all along the supply chain, from extracting to refining, from processing to recycling,” she added. “And we will build up strategic reserves where supply is at risk.”

    Read more about electric vehicles from CNBC Pro

    Back in France, Imerys said it was finalizing what it described as a “technical scoping study” in order to “explore various operational options and refine geological and industrial aspects relating to the lithium extraction and processing method.”

    The site selected for the project has, since the end of the 19th century, been used to produce a type of clay called kaolin for use in the ceramics industry.

    The construction capital expenditure of the proposed lithium project is estimated to be around 1 billion euros (roughly $980 million), Imerys added.

    “Upon successful completion, the project would contribute to the French and European Union’s energy transition ambitions,” the company said. “It would also increase Europe’s industrial sovereignty at a time when car and battery manufacturers are heavily dependent on imported lithium, which is a key element in the energy transition.”

    In recent years, a range of factors has created pressure points when it comes to the supply of the materials crucial for EVs, an issue the International Energy Agency highlighted earlier this year in its Global EV Outlook.

    “The rapid increase in EV sales during the pandemic has tested the resilience of battery supply chains, and Russia’s war in Ukraine has further exacerbated the challenge,” the IEA’s report noted, adding that prices of materials like lithium, cobalt and nickel have soared.

    “In May 2022, lithium prices were over seven times higher than at the start of 2021,” it added. “Unprecedented battery demand and a lack of structural investment in new supply capacity are key factors.”

    Read more about energy from CNBC Pro

    In a recent interview with CNBC, the CEO of Mercedes-Benz sketched out the current state of play, as he saw it when it came to the raw materials required for EVs and their batteries.

    “Raw material prices have been quite volatile in the last 12 to 18 months — some have spiked and actually some have come back down again,” Ola Kallenius said.

    “But it is true as we become electric, all-electric and more and more automakers go into the electric space, there is a need to increase mining capacities and refining capacities for lithium, nickel, and some of those raw materials that are needed to produce electric cars.”

    “We have everything that we need now, but we need to look into the mid to long-term and work with the mining industry here to increase capacities.”

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    October 24, 2022
  • Tesla shares down 3% in premarket after Elon Musk’s EV firm cuts price of cars in China

    Tesla shares down 3% in premarket after Elon Musk’s EV firm cuts price of cars in China

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    Tesla CEO Elon Musk attends an opening ceremony for Tesla China-made Model Y program in Shanghai, east China, Jan. 7, 2020.

    Ding Ting | Xinhua News Agency | Getty Images

    Tesla shares slipped in pre-market trade on Monday after the company cut the price of some of its cars in China.

    Shares of the electric carmaker were down around 3% in New York before the market open on Monday.

    Tesla slashed the price of its Model 3 and Model Y vehicles in China, one of the company’s most critical markets.

    The starting price for the Model 3 sedan was reduced to 265,900 Chinese yuan ($36,615) from 279,900 yuan. The Model Y sports utility vehicle now costs 288,900 yuan versus the previous price of 316,900 yuan.

    Tesla’s price cuts partly reverse some of the price increases the company was forced to carry out earlier this year in China and the U.S. on the back of rising raw material costs.

    Elon Musk, the CEO of Tesla, warned in March that his electric car firm is “seeing significant recent inflation pressure in raw materials & logistics.”

    The price cuts also come after Musk said he sees elements of a recession in China.

    “China is experiencing a recession of sorts” mostly in the property markets, Musk said last week.

    Tesla delivered 343,000 vehicles for the quarter ending September 30, missing analyst expectations. The company does not break out how many cars were delivered in China. Tesla also missed analyst expectation on revenue in the third quarter.

    However in September, the China Passenger Car Association reported Tesla delivered 83,135 China-made electric vehicles, a monthly record for the company. Tesla has a huge Gigafactory in the Chinese city of Shanghai which it completed upgrades on earlier this year.

    Still, the price cuts come in the face of rising competition for Tesla in China from domestic firms such as Warren Buffett-backed BYD as well as upstarts Nio and Xpeng.

    Other electric carmakers have hiked prices this year including BYD and Xpeng, as rising raw material costs hit these companies.

    The Chinese economy continues to face challenges particularly as strict Covid-19 controls continue to weigh on retail sales. Third-quarter gross domestic product rose 3.9% from a year ago, beating expectations, but remaining below the official target of around 5.5% growth.

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    October 24, 2022
  • Taco Bell Is Now Offering an EV Charge With That Chalupa

    Taco Bell Is Now Offering an EV Charge With That Chalupa

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    On Thursday, a Taco Bell franchise in South San Francisco opened its first ultra-fast charging station in the parking lot.

    The restaurant chain, in partnership with ChargeNet Stations, plans to open solar-powered charging stations at 100 Taco Bell locations in California over the next year.

    “You can get an EV charge and a chalupa all in one easy stop,” said ChargeNet Stations CEO and Founder Tosh Dutt. The ChargeNet Stations offer, on average, a 100-mile charge in 20 minutes for about $20.

    @ChargeNetStnUS has unveiled its first “ultra-fast” #EV charging stations at a @tacobell in Southern California.

    More than 100 California Taco Bell restaurants are set to install fast charging tech from ChargeNet Stations in the next year.#uspolihttps://t.co/u99lzoD8nv

    — Clean Energy Canada (@cleanenergycan) October 19, 2022

    The companies say the locations are being chosen to make EV charging available in traditionally underserved communities, providing charging access to people who may not have a home charging station.

    California plans to ban the sales of new gas-powered cars and trucks by 2035, and analysts estimate that, by 2040, there will be 64 million electric vehicles in the U.S. To date, we’ve only built 4% of the charging stations needed to charge them all.

    That’s potentially a lot of cars waiting in the drive-thru in need of something more than a chalupa.

    “We’re solving a demand problem we know is coming,” said Dutt.

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    Jonathan Small

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    October 21, 2022
  • Why BMW really decided to make batteries in the US | CNN Business

    Why BMW really decided to make batteries in the US | CNN Business

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    CNN
     — 

    BMW recently announced a $1.7 billion investment to help prepare its huge Spartanburg, South Carolina, factory to produce electric cars and SUVs. That sum included $700 million for the construction of a battery manufacturing plant nearby.

    Spartanburg is BMW’s largest factory anywhere in the world. It employs 11,000 people and produces 40,000 SUVs a year, only 40% of which are sold in North America. The rest are exported to 120 other countries.

    It’s one of a number of such announcements in recent months and years as automakers gear up to start producing more electric vehicles. Mercedes, Hyundai, Honda, and others have also announced battery plant construction projects in recent months. BMW’s announcement came after the passage of the Biden administration’s Inflation Reduction Act, which limits tax incentives for electric vehicles to those with largely US-based battery manufacturing and raw materials supplies.

    The rules allow consumer tax credits only for electric vehicles that meet increasingly strict goals for US-based manufacturing of the vehicles themselves, as well as their batteries. They also require US sourcing for battery raw materials and they place caps on the cost of the vehicles and the income of the buyers. Buyers can get full tax credits only if they, and the vehicles, meet the requirements.

    But that sort of regulation had no impact on BMW’s decision to locate battery production in South Carolina, BMW chairman Oliver Zipse said in an interview with CNN Business. Simple logistics were a far more important factor.

    “You will not fly hundred of kilograms of batteries around the world or put them on a ship,” he said. “You’re not going to do it. You’ll localize anyway.”

    Not only were the IRA’s rules pushing American manufacturing unneeded, said Zipse, they also risk negative repercussions for the very American jobs they’re designed to protect, he said.

    The IRA provides no benefit for vehicles, regardless of how “American made” they are, if they aren’t sold inside the US. More importantly, though, protectionist regulations attempting to wall off American-made vehicles for American buyers can spark retaliation, endangering valuable export business, said Zipse.

    “You can never make a regulation without looking at the consequences from other regulators,” he said. “And I only warn that we get a tit-for-tat regulation.”

    And, simply, as a practical matter, it’s difficult to wall off automaker’s supply chains in the way the IRA would seem to demand, Zipse said.

    “The assumption that you can incentivize an industry which is completely from A to Z inside one region in the world, in such a complex industry, like the car industry is a wrong assumption,” he said.

    Zipse also warned of the possible unintended consequences of regulations, like those in some US states and in Europe, that ban sales of non-zero-emission vehicles after a certain date. For one thing, it could mean overall industry sales will decline.

    “We do not believe that this one drivetrain will make up the complete market of today’s size,” he said.

    Not all consumers will be able to have electric vehicle chargers at home, Zipse said, so many could decide, instead, to keep their gasoline cars longer or buy used gas-powered cars.

    Some automakers, like BMW competitors General Motors and Mercedes-Benz, are apparently not worried about that possibility of shrinking sales and have announced plans to go all-electric by a set future date. BMW has never said publicly that it intends to make only electric vehicles after any certain time.

    Unlike some automakers, such as GM and Volkswagen, that make electric vehicles on distinct engineering platforms entirely different from their gasoline cars, BMW engineers its vehicles so they can be produced as electric, plug-in hybrid, or purely gasoline-powered. BMW executives tout this sort of flexibility to respond to market demands for different types of vehicles.

    Instead, he said, regulators should impose gradually more stringent emissions restrictions while leaving it up to automakers how best to reach those targets, as regulators have done in the past. To date, that approach has not halted increasing global warming.

    Zipse insisted that BMW can manage whatever regulators decide, however.

    “We can easily ramp them up,” Zipse said of increasing regulatory demand for electric vehicles. “All our factories are qualified for building EVs. We have a flexible approach.”

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    October 20, 2022
  • EV financing start-up RevFin bags $10 mn in funding, plans to expand to 25 states

    EV financing start-up RevFin bags $10 mn in funding, plans to expand to 25 states

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    Electric vehicles (EVs) are slowly gaining mainstream momentum in India. Besides vehicle manufacturers and battery makers, EV financing platforms like RevFin are also attracting investor interest now. The Delhi-based platform for individual EV drivers has closed a $10 million Series A round in a mix of debt and equity capital. 

    The round was led by climate-tech focused fund Green Frontier Capital (GFC), which is managed by Sandiip Bhammer and Rudra Dalmia and LC Nueva Investment Partners (a partnership between Lighthouse Canton and Nueva Capital). It also saw participation from existing investors. Prior to this, in March, RevFin had raised $13 million in a debt round led by Northern Arc, LiquiLoans, and others.

    It plans to use the funds to expand its fleet to 25 Indian states, with the ambition of capturing over 10 per cent of the financed electric three wheelers market. A part of the capital will also be deployed towards expansion into two-wheelers for last-mile deliveries and four-wheelers for mid-mile cargo delivery and ride-share taxis. RevFin’s tech platform underwrites EV loans for drivers of these vehicles, who typically lack access to formal credit, in under 15 minutes. It uses psychometrics, biometrics, telematics, gamification, and geo-limiting to underwrite credit risks.

    Sameer Aggarwal, Founder and CEO, RevFin said, “Electric three wheelers have a market share of over 50 per cent sales nationally. We expect the two-wheeler market to follow a similar trend in the next 2-3 years with four-wheelers following shortly after. With a high monthly growth rate of 15 per cent, RevFin will continue to dominate the EV financing market. This fundraise will help us accelerate EV adoption across the country and help India achieve its carbon objectives.”

    At present, the start-up has a presence in 14 states and has financed more than 10,000 EVs, including e2W, e3W, L5, and small fleets through 400 dealerships and 7 OEM partnerships. RevFin wants to scale this up to two million vehicles in the next five years, and disburse over Rs 40,000 crore of loans. It lends through its own NBFC because most borrowers are from small towns, with no money trail or banking transaction data. 

    Commenting on the investment, Sandiip Bhammer, Managing Partner of Green Frontier Capital, said, “We strongly believe that India’s EV revolution is being driven by 3-wheelers and scooters and, in this regard, RevFin has already demonstrated promise of significant scalability in India’s EV financing segment, which continues to remain under-served. RevFin is also supporting climate action, financial inclusion, women empowerment and financial literacy, which is highly commendable.”

    Since its inception in 2018, RevFin claims to have enabled more than 180 million zero-emission kilometres, and saved 22,000+ tonnes of CO2 emissions. “There are not many financing options available in the Indian EV market even though the potential to scale this segment is vast. We are excited about RevFin’s approach to using technology to provide loans to traditionally underserved individuals in India for purchasing electric vehicles for commercial purposes,” Sohil Chand, Founding Partner & Chief Investment Officer of LC Nueva AIF, said in a statement. 

    Also Read: Hero Electric, RevFin tie-up to provide loans to EV riders

    Also Read: EV financing start-up Revfin raises Rs 100 crore in debt

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    October 20, 2022
  • Smartphone maker Foxconn unveils EV for Taiwan brand Yulon

    Smartphone maker Foxconn unveils EV for Taiwan brand Yulon

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    TAIPEI, Taiwan — The company that assembles smartphones for Apple Inc. and other global brands unveiled an electric SUV on Tuesday that will be produced for a Taiwanese automaker under a similar contract model.

    Foxconn Technology Group said the SUV will be sold by Yulon Motor as the Luxgen n7 starting next year. It said the five-seat vehicle should be able to travel 700 kilometers (440 miles) on one charge. No price was announced.

    Foxconn, also known as Hon Hai Precision Industry Co., plans to produce electric cars and buses for brands in China, North America, Europe and other markets. It said clients can modify their appearance and features.

    The venture adds to a crowded global market with electrics offered by almost every established automaker and dozens of ambitious startups.

    “Hon Hai will certainly redefine the EV industry,” company founder Terry Gou said in a statement.

    Foxconn, headquartered in New Taipei City, Taiwan, is the world’s biggest contract assembler of smartphones and other consumer electronics.

    Yulon, founded in the 1940s, assembles vehicles for Nissan Motor Co. and other automakers. The company launched its own brand, Luxgen, in 2009.

    The Luxgen n7 is one of five proposed models for potential customers.

    On Tuesday, Foxconn also displayed a five-seat crossover, the Model B, and a five-seat double-cab pickup truck, the Model V.

    The company previously announced plans for a sedan developed with Italian design house Pininfarina and an electric bus, the Model T.

    ———

    Foxconn: www.foxconn.com

    Yulon Motor: www.yulon-motor.com.tw

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    October 18, 2022
  • Tax the rich for more EVs? California Democrats split

    Tax the rich for more EVs? California Democrats split

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    SACRAMENTO, Calif. (AP) — A California ballot measure that would tax the rich to help put more electric cars on the road may seem tailor-made to win support from Democrats in a state known for climate leadership, but Proposition 30 has one notable opponent: Gov. Gavin Newsom. That’s put the Democratic governor on the opposite side of his own party and against his traditional environmental allies.

    The proposition before voters would add a 1.75% tax on personal income of more than $2 million, or fewer than 43,000 people. State analysts estimate it would raise up to $5 billion a year, mostly to help people buy electric vehicles and to build charging stations, with some also dedicated to resources for fighting wildfires.

    Environmental and health group backers say California needs dedicated funding to speed the transition away from gas-powered cars and help lower planet-warming emissions. Transportation accounts for 40% of California’s greenhouse gas emissions, and increasingly deadly wildfires are another major source of carbon.

    “We can’t meet our climate goals without something like this,” said Mary Creasman, chief executive officer for California Environmental Voters. “It’s either going to be all of us who pays, or it’s going to be the wealthiest who can afford to pay.”

    Newsom has branded Proposition 30 as a money grab by ridesharing giant Lyft, which has spent at least $45 million backing it. State regulators have mandated that all rideshare trips be zero-emission by 2030. Uber has not taken a position on the measure.

    “Don’t be fooled, Prop. 30′s being advertised as a climate initiative, but in reality it was devised by a single corporation to funnel state income taxes to benefit their company,” Newsom says in one TV ad.

    Supporters reject that characterization, saying that Lyft got involved after environmental groups were already discussing a ballot measure. Creasman said it was important to “call our own team and governor out for lying” about the origins of the measure.

    In an election year where Newsom is expected to cruise to reelection for a second term, the fight over Proposition 30 has become perhaps the most contentious of the season for Democrats. It comes months after state air regulators approved a Newsom-backed plan to ban the sale of most new gas-powered cars in the state by 2035. Newsom notes that he has already dedicated $10 billion to various programs aimed at boosting EV adoption over the next six years.

    Half the money raised in Proposition 30 for electric vehicles would go into an equity account designed to expand transportation options and limit air pollution in low-income or disadvantaged neighborhoods. It could be used to help people buy electric cars or to put cleaner delivery trucks, buses and even e-bikes on the roads.

    Wildfires, too, have become an increasingly urgent problem as climate change makes the state hotter and drier. Most of the state’s deadliest and most destructive wildfires have occurred in the last few years, and the state estimates wildfires released more than 85 million metric tons of carbon emissions in 2021 — more than the annual emissions from electricity.

    Lyft says it supports the measure because reducing emissions is good climate policy.

    “Proposition 30 funds this through a tax on individuals who earn more than $2 million a year. I’m fortunate enough to be impacted by this tax and happy to pay it to help turn back the clock on this existential threat,” Logan Green, the company’s chief executive officer, wrote in a blog post.

    Joining Newsom in opposing the measure are the California Teachers Association, the California Chamber of Commerce and some venture capitalists who are helping fund the “No” campaign.

    The money raised by the tax wouldn’t count toward a state budget rule that says a certain percentage of revenue must go to K-12 education, a provision the teachers don’t like. Meanwhile, the nonpartisan Legislative Analyst’s Office said the proposal could force lower spending in other areas based on certain budget rules, something supporters of the measure dispute.

    Business groups note that California’s personal income tax is already the highest in the nation, and the ballot measure would put it over 15% for the highest earners. Loren Kaye, foundation president for the California Chamber of Commerce, also warned that a rapid expansion of electric vehicles could strain the energy grid, an argument the Newsom administration has rejected.

    Backers of Proposition 30 include the California Democratic Party, the Clean Air Coalition, the Natural Resources Defense Council and the American Lung Association, which have rejected characterizations that the measure is designed to benefit Lyft specifically, noting there’s no provision that would expressly set aside money for rideshare drivers.

    While Newsom’s existing commitment to electric vehicle infrastructure is significant, the state needs a more stable long-term revenue source, supporters argue. The tax increase would last for 20 years if the measure passes.

    “We need a consistent, reliable source of funding that keeps us going through good budget years and bad budget years,” said Bill Magavern, policy director for the Coalition for Clean Air. Referring to Lyft, he added, “If the goal is to limit pollution, does it matter who is driving the EV?”

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    Source link

    October 16, 2022
  • Tax the rich for more EVs? California Democrats split

    Tax the rich for more EVs? California Democrats split

    [ad_1]

    SACRAMENTO, Calif. — A California ballot measure that would tax the rich to help put more electric cars on the road may seem tailor-made to win support from Democrats in a state known for climate leadership, but Proposition 30 has one notable opponent: Gov. Gavin Newsom. That’s put the Democratic governor on the opposite side of his own party and against his traditional environmental allies.

    The proposition before voters would add a 1.75% tax on personal income of more than $2 million, or fewer than 43,000 people. State analysts estimate it would raise up to $5 billion a year, mostly to help people buy electric vehicles and to build charging stations, with some also dedicated to resources for fighting wildfires.

    Environmental and health group backers say California needs dedicated funding to speed the transition away from gas-powered cars and help lower planet-warming emissions. Transportation accounts for 40% of California’s greenhouse gas emissions, and increasingly deadly wildfires are another major source of carbon.

    “We can’t meet our climate goals without something like this,” said Mary Creasman, chief executive officer for California Environmental Voters. “It’s either going to be all of us who pays, or it’s going to be the wealthiest who can afford to pay.”

    Newsom has branded Proposition 30 as a money grab by ridesharing giant Lyft, which has spent at least $45 million backing it. State regulators have mandated that all rideshare trips be zero-emission by 2030. Uber has not taken a position on the measure.

    “Don’t be fooled, Prop. 30′s being advertised as a climate initiative, but in reality it was devised by a single corporation to funnel state income taxes to benefit their company,” Newsom says in one TV ad.

    Supporters reject that characterization, saying that Lyft got involved after environmental groups were already discussing a ballot measure. Creasman said it was important to “call our own team and governor out for lying” about the origins of the measure.

    In an election year where Newsom is expected to cruise to reelection for a second term, the fight over Proposition 30 has become perhaps the most contentious of the season for Democrats. It comes months after state air regulators approved a Newsom-backed plan to ban the sale of most new gas-powered cars in the state by 2035. Newsom notes that he has already dedicated $10 billion to various programs aimed at boosting EV adoption over the next six years.

    Half the money raised in Proposition 30 for electric vehicles would go into an equity account designed to expand transportation options and limit air pollution in low-income or disadvantaged neighborhoods. It could be used to help people buy electric cars or to put cleaner delivery trucks, buses and even e-bikes on the roads.

    Wildfires, too, have become an increasingly urgent problem as climate change makes the state hotter and drier. Most of the state’s deadliest and most destructive wildfires have occurred in the last few years, and the state estimates wildfires released more than 85 million metric tons of carbon emissions in 2021 — more than the annual emissions from electricity.

    Lyft says it supports the measure because reducing emissions is good climate policy.

    “Proposition 30 funds this through a tax on individuals who earn more than $2 million a year. I’m fortunate enough to be impacted by this tax and happy to pay it to help turn back the clock on this existential threat,” Logan Green, the company’s chief executive officer, wrote in a blog post.

    Joining Newsom in opposing the measure are the California Teachers Association, the California Chamber of Commerce and some venture capitalists who are helping fund the “No” campaign.

    The money raised by the tax wouldn’t count toward a state budget rule that says a certain percentage of revenue must go to K-12 education, a provision the teachers don’t like. Meanwhile, the nonpartisan Legislative Analyst’s Office said the proposal could force lower spending in other areas based on certain budget rules, something supporters of the measure dispute.

    Business groups note that California’s personal income tax is already the highest in the nation, and the ballot measure would put it over 15% for the highest earners. Loren Kaye, foundation president for the California Chamber of Commerce, also warned that a rapid expansion of electric vehicles could strain the energy grid, an argument the Newsom administration has rejected.

    Backers of Proposition 30 include the California Democratic Party, the Clean Air Coalition, the Natural Resources Defense Council and the American Lung Association, which have rejected characterizations that the measure is designed to benefit Lyft specifically, noting there’s no provision that would expressly set aside money for rideshare drivers.

    While Newsom’s existing commitment to electric vehicle infrastructure is significant, the state needs a more stable long-term revenue source, supporters argue. The tax increase would last for 20 years if the measure passes.

    “We need a consistent, reliable source of funding that keeps us going through good budget years and bad budget years,” said Bill Magavern, policy director for the Coalition for Clean Air. Referring to Lyft, he added, “If the goal is to limit pollution, does it matter who is driving the EV?”

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    Source link

    October 16, 2022
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