Latest news with #AESC
Yahoo
24-06-2025
- Automotive
- Yahoo
Rethinking U.S. battery plant investments
The second of five Intelligence Report installments explores how automakers and suppliers are scaling back and delaying investments in battery plants to avoid getting too far ahead of the market. General Motors now wants only three U.S. battery plants, not four. Ford Motor Co. has put one of two battery plants planned for Kentucky farmland on hold indefinitely. Battery makers AESC and Gotion High Tech Co. have paused construction of plants in South Carolina and Michigan. With demand for electric vehicles stagnating, automakers and suppliers have been reassessing their multibillion-dollar investments in U.S. battery plants. Many have been scaled back or delayed to avoid getting too far ahead of a market that has developed far more slowly than anticipated. Here's where some of the most high-profile domestic battery manufacturing projects stand. Rethinking U.S. battery plant investments Public auto retailers take mixed approaches to 2025 used-vehicle sales amid tariffs AESC has paused construction on a $1.6 billion battery cell plant in Florence, S.C. The factory was to make cylindrical battery cells for BMW's next-generation Neue Klasse EVs. Despite the delay, BMW said it remains on track to begin EV production at its Greer, S.C., assembly plant late next year. AESC, majority-owned by China's Envision Group, attributed the halt in construction to 'policy and market uncertainty.' Japan-based AESC, which has invested more than $1 billion in the Florence plant, said it anticipates resuming construction once 'circumstances stabilize.' This year, AESC canceled a $1.5 billion expansion at the site. The supplier has struggled to secure financing for the battery project, and U.S. tariffs have escalated startup costs because AESC planned to import some factory equipment from China, according to people with knowledge of the matter. The federal budget bill making its way through Congress could imperil Ford's BlueOval Battery Park in Marshall, Mich., Bill Ford, the company's executive chair, said in May. That's because the company is relying on a Biden administration battery production tax credit that would be eliminated if the bill becomes law. However, construction at the site continues and is now more than halfway complete, a spokesperson said. Equipment is set to be installed in the plant in the coming months, as Ford remains on track to begin production there in 2026. Ford originally planned to create 2,500 jobs, but the company in 2023 downsized its plans to roughly 1,700, with planned annual capacity of the lithium iron phosphate batteries falling by more than 40 percent to 20 gigawatt-hours. A spokesperson said the total investment is roughly $3 billion. Sign up for the weekly Automotive News Mobility Report newsletter for the latest developments at the intersection of transportation and technology. Marshall is one of four battery plant projects underway. Ford has partnered with SK On for three lithium ion battery facilities in two states: BlueOval SK in Glendale, Ky., and BlueOval City in Stanton, Tenn. The Tennessee battery facility will be part of a sprawling $5.6 billion BlueOval City complex that includes an EV assembly plant. The company originally expected to begin production there in 2025, but a spokesperson said 'market demand and customer orders' will determine when the plant begins production. The Kentucky project, a $5.8 billion investment, includes two battery plants. The first is slated to open this year, while Ford in 2024 indefinitely delayed the second. Nissan could utilize one of the Kentucky plants to build its own cells, Automotive News reported in March. Each of Ford's BlueOval SK battery plants is expected to create 2,500 jobs. General Motors is moving forward with three U.S. EV battery plants after selling its stake in a fourth to joint-venture partner LG Energy Solution, citing sufficient production capacity to meet demand. With LG, GM is producing pouch-style battery cells at two plants in Ohio and Tennessee under the Ultium Cells banner, using nickel cobalt manganese aluminum chemistry. The first, in Warren, Ohio, began production in 2022 and has an expected annual production capacity of 41 GWh. The second, in Spring Hill, Tenn., started shipping its first battery cells in March 2024. In December, GM said it would sell its stake in a third Ultium Cells plant, near Lansing, Mich., to LG. The Lansing plant will become wholly owned by LG and supply an automaker other than GM. GM and LG also have said they plan to co-develop prismatic-style battery cells, with the first commercial application coming by 2028 with a cell called lithium manganese-rich. These cells are expected to start in electric pickups and full-size SUVs. Separately, GM announced plans in June 2023 to construct a fourth battery plant with joint-venture partner Samsung SDI, a $3.5 billion project near New Carlisle, Ind., to begin production in 2027 with an initial annual production capacity of 27 GWh. The GM-Samsung plant is expected to produce prismatic-style battery cells. Gotion has paused construction of a $2.4 billion battery plant in rural northern Michigan amid a legal battle with local officials. Board members in the township and county withdrew their support for the project, which promised to bring more than 2,300 jobs to the area, over environmental concerns and the company's ties to China. Hyundai has two battery investments in Georgia. One is its joint-venture factory with supplier LG Energy Solution on the site of the Hyundai Motor Group Metaplant America EV complex outside Savannah. It has an annual production capacity of 30 GWh. The second is a joint venture with SK On in Bartow County that has an expected production capacity of 35 GWh. Both factories will support the production of 300,000 EVs from Hyundai, Genesis and Kia. They are both expected to begin production in the first half of 2026, which is a slight delay from their initial late-2025 target. LG Energy Solution delayed work on its $5.5 billion battery plant in Queen Creek, Ariz., but now expects to start mass production in the first half of 2026. The plant, with a production capacity of 36 GWh, will handle orders from Tesla and Rivian. It's LG's first cylindrical and energy storage system battery plant in North America. Stellantis is investing $6.3 billion into two EV battery factories in Kokomo, Ind. The two projects are a joint venture between Stellantis and Samsung SDI called StarPlus that will produce lithium ion batteries. The first plant began production in 2025. Stellantis said it was aiming for an initial capacity of 23 GWh with plans to reach 33 GWh. The second facility is expected to start production in 2027 with a capacity of 34 GWh. The projects are expected to bring a combined 2,800 jobs to the area. NextStar Energy, a joint venture between LG Energy Solution and Stellantis, started building battery modules in October at a $3.7 billion plant in Windsor, Ontario. Cell production is expected to begin this year. Toyota has begun preproduction of hybrid batteries in a portion of its massive, multibuilding $13.9 billion battery manufacturing complex in Liberty, N.C. The complex consists of 14 assembly lines to supply lithium ion batteries for battery-electric, hybrid and plug-in hybrid vehicles in North America for Toyota, Lexus, Subaru and now Honda. The first saleable batteries were initially to be available in the first quarter of 2025, but that timeline has slipped into the second half of this year. The project is expected to ultimately employ 5,100 people and produce 30 GWh of batteries per year, with about 1,950 people currently employed. Batteries for EVs have slipped into 2026 in large part because of ongoing supply chain issues. Volkswagen Group battery unit PowerCo still intends to build a $7 billion Canadian battery plant in St. Thomas, Ontario, midway between Toronto and Windsor, to serve as a regional supply chain for EVs in Canada, the U.S. and Mexico. The plans were first revealed in 2023, but PowerCo has yet to begin to pour concrete on the site. PowerCo told Automotive News Canada that it's hiring local staff and has recommitted to its production timeline, despite missing its original target to begin construction. 'We are focused on delivering a project with the right engineering and supply chain partners and remain on track for initial production in 2027, followed by a demand-based ramp-up of commercial production,' a PowerCo Canada spokesperson told Automotive News Canada. Executives at VW Group-backed Scout Motors have said PowerCo would be a logical supplier of batteries for its vehicles. Scout production is to begin in 2027. Vince Bond Jr., Urvaksh Karkaria, David Kennedy, Michael Martinez, Carly Schaffner, Lindsay VanHulle, Larry P. Vellequette and Jack Walsworth contributed to this report. Have an opinion about this story? Tell us about it and we may publish it in print. Click here to submit a letter to the editor. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Korea Herald
23-06-2025
- Automotive
- Korea Herald
AESC delay opens door for Korean battery trio in BMW's US EV plans
LG, SK emerge as top contenders, with local production, tariff resilience, advanced 46-series tech Faced with shifting US policy and trade risks, AESC — a Japan-based battery maker majority-owned by China's Envision Group — has paused its $1.6 billion battery cell factory project in South Carolina, originally intended to supply BMW electric vehicles. The move underscores Korean battery firms as potential alternatives for the German automaker, given their accelerated push to expand US-based production. 'Due to policy and market uncertainty, we are pausing construction at our South Carolina facility at this time,' AESC said in a recent statement. While no timeline was given, the company said it would 'resume construction once circumstances stabilize' and reiterated its pledge to invest $1.6 billion and create 1,600 jobs. South Carolina Gov. Henry McMaster noted that AESC is navigating potential fallout from the loss of federal EV subsidies and tax incentives, as well as tariff risks linked to US President Donald Trump's return to power. AESC said it has already invested $1 billion in the Florence facility — its second US production site after an ongoing project in Kentucky. The company had earlier scaled back plans to build two plants in South Carolina, saying one would suffice to meet BMW's projected demand. Despite AESC's construction pause, BMW confirmed it will proceed with the opening of its $700 million battery assembly plant in Woodruff, South Carolina, by 2026. The automaker had originally planned to use AESC's 46-series cylindrical cells — 46 millimeters in diameter — in its next-generation EV lineup, including the 'BMW Vision Neue Klasse.' By 2030, BMW aims to produce at least six all-electric models in the US. Industry insiders say the disruption in AESC's US supply could open doors for Korean battery makers. Among them, Samsung SDI began supplying the larger cylindrical batteries to a US carmaker for the first time in March. LG Energy Solution is set to begin mass production in the latter half of this year, while SK On has completed its development process. 'AESC, acquired by Hong Kong's Envision Group in 2018, managed to bypass US trade barriers targeting the Chinese EV supply chain due to its Japanese origins,' said Park Cheol-wan, an automotive engineering professor at Seojeong University. 'Its pause could signal a cautious approach amid trade tensions — or a strategic pullback by BMW in its US EV plans.' Yang Min-ho, an energy engineering professor at Dankook University, noted, 'Given BMW's commitment to the US market and the likelihood that it will need to expand local production under Trump's protectionist trade stance, the automaker will likely seek to fill the gap in its battery supply chain.' He added that BMW could turn to LG Energy Solution or SK On, both of which have US production sites and carry less tariff risk. As of June, LG Energy Solution and SK On are operating or building seven and four facilities, respectively, in North America, including joint ventures with major automakers. BMW's tariff woes Before the Trump administration's shifting tariff policies targeting both allies and adversaries, BMW's US EV strategy relied on importing vehicles assembled in Europe — primarily Germany — while ramping up its production capacity in North America. BMW's key battery suppliers in Europe, Samsung SDI and China's CATL, signed long-term contracts in 2019 extending through 2031. These deals played a crucial role in BMW's European EV push and allowed the automaker to allocate part of its European output to the US. Meanwhile, BMW had also looked to cost-competitive battery producers like AESC for US supply. But after facing a 27.5 percent tariff on passenger cars imported from EU countries, the company has been under growing pressure to increase domestic production. German Chancellor Friedrich Merz recently announced plans to offset US tariffs by equalizing the value of automobile trade. The proposal would allow duty-free imports of US-made cars into Germany in exchange for equivalent tariff waivers on German cars shipped to the US. However, based on the recent US–UK tariff arrangement — which limits 10 percent tariffs to just 100,000 vehicles from the UK — Germany's roughly 400,000 annual car exports to the US may only benefit from partial tariff relief. 'Even though Germany has more at stake than the UK, Trump is unlikely to offer full waivers on German cars,' said Yang.
Yahoo
21-06-2025
- Business
- Yahoo
Here is Why Fluence Energy (FLNC) Gained This Week
The share price of Fluence Energy, Inc. (NASDAQ:FLNC) surged by 12.75% between June 11 and June 18, 2025, putting it among the Energy Stocks that Gained the Most This Week. An illustration of digital intelligence and energy storage for a modern industrial facility with servers and storage racks in the background. Fluence Energy, Inc. (NASDAQ:FLNC) is a global market leader delivering intelligent energy storage and optimization software for renewables and storage. Fluence Energy, Inc. (NASDAQ:FLNC) soared this week following the Senate Finance Committee's proposed changes to President Trump's tax and spending bill, which are expected to benefit the energy storage sector by allowing full tax credits to continue until 2032. While the proposed amendments include the full phase-out of tax benefits for the solar and wind sectors by 2028, energy storage remains exempt. Moreover, the Senate version of the bill is also more flexible when it comes to foreign entity restrictions, which is a positive development for Fluence Energy, Inc. (NASDAQ:FLNC)'s collaboration with AESC. While we acknowledge the potential of FLNC as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 10 Best Nuclear Energy Stocks to Buy Right Now and Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
19-06-2025
- Automotive
- Yahoo
New Nissan Leaf unveiled
Nissan has shown its new Leaf electric car that's set to roll off the production line in Sunderland - the UK's biggest car plant. It is the first model to be launched under Nissan's EV36Zero blueprint for the future of EV production and will be built in the North East by the plant's team of 6,000 people. Nissan says the new third generation Leaf has been engineered and fine-tuned to suit the needs of European customers at Nissan's UK research and development centre, NTCE, in Cranfield, UK. It will be powered by batteries from AESC which is situated next to the Nissan plant. The Sunderland plant will also build the next generation Nissan Qashqai e-POWER (which will arrive this year), followed next year by an all-new fully electric Juke. Alan Johnson, Senior Vice President of Manufacturing & Supply Chain Management at Nissan Motor Manufacturing, said: 'It's with immense pride that we unveil the third generation of our pioneering electric Leaf, twelve years after we brought EV and battery manufacturing to the UK. 'It's a testament to the skill of our world-class team that we can bring into mass production a vehicle with such advanced technology and aerodynamic design. We can't wait to see it on the roads.' The new Leaf will be able to travel up to 375 miles on a single charge and will be available for customers to order later this year. James Taylor, managing director of Nissan GB, said: 'We're really excited about the launch of the all-new Leaf later this year. It builds on the success of the previous two generations, which have found homes with more than 70,000 UK customers. 'Leaf is a pioneering electric vehicle that has encouraged thousands to make the switch to electric motoring – and best of all, it's built here in Britain.' A new fully-electric Micra, designed in London, will also go on sale later this year, and Nissan says it will also launch a smaller city car in 2026. "New Nissan Leaf unveiled" was originally created and published by Just Auto, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Scottish Sun
18-06-2025
- Automotive
- Scottish Sun
Major car brand unveils new 3rd generation EV capable of 375 miles on single charge & set to hit the market this year
It will be built in the UK IT'S ELECTRIC Major car brand unveils new 3rd generation EV capable of 375 miles on single charge & set to hit the market this year A MAJOR car company has unveiled details of its new third generation electric vehicle set to go on sale this year. The car giant is launching the new model as the first under it's EV36Zero blue print of electric vehicle production. Advertisement 3 The new Nissan Leaf offers design features commonly seen in all electric-vehicles Credit: Nissan UK 3 The new Leaf is a totally redesigned all-electric crossover SUV Credit: Nissan UK The new EV model from Nissan is expected to provide a range of up to 375 miles on a single charge. It will have dual 14.3-inch displays, flush door handles for better aerodynamics, and liquid-cooled lithium-ion batteries. The batteries will be powered from Britain's newest gigafactory, AESC, situated next to the Nissan plant in Sunderland. This is where the vehicle's hub for production will be as the company's UK factory with a team of 6,000 people. Advertisement Read More Motors New ON THE ROAD Petrolhead comedian lands new car show showcasing UK's flashiest custom motors It comes after the new EV was engineered at their research and development centre in Cranfield, Bedfordshire. Senior Vice President of manufacturing and supply chain management at Nissan Motor Manufacturing, Alan Johnson, said: "It's with immense pride that we unveil the third-generation of our pioneering electric Leaf, 12 years after we brought EV and battery manufacturing the UK. "It's a testament to the skill of our world-class team that we can bring into mass production a vehicle with such advanced technology and aerodynamic design." Managing director of Nissan GB, James Taylor, said: "Leaf is a pioneering electric vehicle that has encouraged thousands to make the switch to electric motoring - and best of all, it's built here in Britain." Advertisement This new Leaf model is reported to be engineered and fine-tuned for the needs of European customers. Nissan's EV36Zero project hopes to bring three electrical vehicles at three gigafactories in their move towards becoming carbon neutral by 2030. Japanese giant unveils its new bargain EV with quirky 'bug eye' headlights It includes a new fully electric Nissan Micra that was designed in London, which will go on sale later this year. A smaller city car from will also be launched in 2026. Advertisement However, over the last year Nissan has reported significant losses and announced plans to close down production plants and cut thousands of jobs. They confirmed last month that it will close almost half of its factories in the next two years. On top of that, it's workforce is expected to be reduced by a total of 20,000 employees between 2024 and 2027. These changes will result in Nissan having only ten factories worldwide from 17. Advertisement
