A rapidly growing, global market for hybrid electric vehicles should power earnings at major Asian automakers including Japan's Toyota Motor Corp. and India's Tata Motors Ltd.
Samsung SDI and Stellantis have been building a joint battery plant in the US to produce the South Korean company's sixth-generation prismatic battery, P6.
The US Department of Treasury will grant EV makers a two-year extension for restrictions on some hard-to-trace battery materials, including China-dominated graphite. The move was welcomed by automakers while upsetting some US politicians.
Leading South Korea-based battery manufacturers LG Energy Solution, Samsung SDI, and SK On reported unsatisfactory financial performance in the first quarter of 2024 due to slow EV market growth, customers adjusting their inventory levels, and falling metal prices.
In the first quarter of 2024, BYD's net profit was CNY4.57 billion (approx. US$630 million), a year-on-year increase of 10.6%, but a significant decrease of 47.3% compared to the fourth quarter of 2023. This highlighted that profitability was impacted by slowing demand for EVs and intense price competition. Market analysis suggests that while the penetration and sales of EVs are growing, it has come with a decrease in profits.
In 2023, South Korea saw the first decline in rechargeable battery exports in eight years. The industry suspected that the situation is related to major battery manufacturers like LG Energy Solution, Samsung SDI and SK On moving most of their production overseas.
Tesla Inc. Chief Executive Officer Elon Musk couldn't have been more clear in his message to investors: Tesla is now an artificial intelligence company.
Japan and the European Union have agreed to collaborate on a scheme to share information about battery material production locations and the supply chain. The move will help the two parties track lithium and other minerals in batteries and prevent materials from outflowing from these regions. The information sharing will also reduce Japan and the EU's dependence on battery materials produced in China.
Hyundai Motor has reportedly tied up with battery maker SK On in the US. Before the pair establishes a joint venture, SK On will retool a battery production line dedicated to Ford at its plant in the State of Georgia and manufacture batteries for Hyundai instead.
Nissan Motor said it will leverage the Giga-casting technique to produce its next-generation EVs and rapidly reduce costs. The automaker recently also invited media members to check its pilot lines for all-solid-state batteries under construction.
China's automotive offense has pressured legacy carmakers in Europe and other markets. Gianfranco Pizzuto, an Italian automotive veteran and the former co-founder of Fisker Automotive, predicted that Chinese carmakers will lead the mainstream market for the next 10 years. The luxury segment is where European companies can stay ahead of competitors.
US states like Arizona and New Mexico are expected to become more tempting for investments, partly thanks to an EV cluster that will emerge in the southwestern US and northern Mexico. The border states will also play a crucial role in achieving the US goal of raising local production rate.
Taiwan-based HD Renewable Energy (HDRE) is expanding its business scope from energy storage and solar energy to EV charging. Jason Chou, HDRE's general manager, said the company will establish joint ventures in Taiwan with local partner Shihlin Electric &Engineering. The pair plans to bring their charging venture to Japan.
Meiwa Corporation, a Japan-based chemical material producer, Toyota, and China Minmetals Corporation recently announced they will set up a joint venture for EV battery recycling in China. More details remain to be released.
Citing costs and productivity, Tesla informed its employees on April 15 that it plans to cut 10% of its workforce worldwide. The news came after Tesla reported a decreased delivery for the first quarter of 2024 amid soft EV demand.
