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Forbes
a day ago
- Automotive
- Forbes
America's Competitive Edge: How EV Demand Is Supercharging U.S. Manufacturing
Today's Innovation, Tomorrow's Future: The State of American Manufacturing For forty years, the automotive manufacturing industry has been hemorrhaging jobs, down 6.7 million in 2019 from the all-time peak. But now, the seeds of a renaissance are sprouting – manufacturers have announced 194,500 created and retained U.S. EV-related jobs. As consumer demand for EVs continues to grow, Panasonic Energy (like others in the industry) is scaling its battery manufacturing capacity to ensure U.S. EV production remains competitive in the global market, enhances American consumer choice, and creates jobs in communities across the country. Panasonic Energy Corporation of North America's EV Battery Manufacturing Facility, De Soto Kansas Over the past decade, automotive OEMs and others have committed nearly $198 billion to expand their manufacturing capabilities to meet the rising demand for EVs. They aren't alone — EV-focused startups are investing in their own manufacturing facilities, challenging traditional OEMs and bringing new innovations that are advancing the industry. This year, the U.S. is expected to see a significant increase in EV manufacturing and battery production capacity. One such factory is Panasonic Energy's new facility in De Soto, Kansas, which represents a significant milestone for our company, expands our production capabilities substantially, and serves as an example of the many EV battery manufacturing projects coming to fruition this year. Driving the Future: Meeting EV Industry Demand and Unlocking Market Opportunities in Battery Manufacturing Despite myriad headlines reporting that the EV industry is in decline, we're seeing (and experiencing) the opposite. According to the Alliance for Automotive Innovation, EV sales in Q4 2024 reached a record high, with December 2024 achieving the highest monthly EV market share to date at 12.3%. What we're seeing on the ground is continued investment in EV factories and EV supply chains in the US. Building new manufacturing facilities in the U.S. isn't just about getting EVs out onto the road. It's also a driver for job creation today and for future generations. As we transition to newer technology, we have the chance to build back up our automotive manufacturing sector, making it a cornerstone of economic strength again, and securing America's role as a leader in sustainable mobility. The automotive industry has long been a symbol of American innovation and progress. But the demand for innovation never wavers. Even in a future where internal combustion engine (ICE) vehicles remain prevalent, the innovation and market opportunities for EVs are immense. The rapid evolution of battery technology, including advancements in lithium-ion batteries, has dramatically improved energy density, charging efficiency, and overall vehicle performance. These breakthroughs are making EVs more accessible and attractive to more people. Developing and building this technology in the U.S. will help secure American EV leadership. Bringing the EV supply chain to North America represents a massive downstream opportunity for the entire ecosystem — from raw material providers and manufacturers to technology developers, service providers, and end users — and creates a ripple effect across multiple industries, including transportation, energy, consumer electronics, and infrastructure. It enhances collaboration, shortens development cycles, positions North America as a global hub for advanced manufacturing and clean technology, protects our industry from volatility and reduces costs for production and consumers. Since Panasonic Energy first started EV battery production in Nevada in 2017, we have been relentlessly pursuing faster, more efficient, and more adaptable production processes. This was borne out of the necessity to rapidly scale to meet production goals for our customers and gives us flexibility to quickly adapt to market trends and changes. Through our partnership with Redwood Materials to create a circular economy and our agreements to procure battery materials domestically, we are building resiliency into our supply chain and starting to create a multiplier effect that enhances market opportunities – not just for EVs but for internal combustion engines (ICE) and other industries. Panasonic Energy Corporation of North America 2170 Lithium-Ion EV Batteries Empowering Rural Communities Through Economic Growth Investing in U.S. manufacturing is not just about boosting production; it's a commitment to develop local workforces and enhance communities. From education and job training programs, infrastructure improvements, the emergence of small and medium-sized businesses catering to the growing workforce, increased housing developments, and greater nonprofit engagement, these investments are a catalyst for great change. In 2025, ten new EV battery factories are scheduled to come online, set to drive major economic development in communities across the country. These new factories, like our new EV battery manufacturing facility in Kansas, are paving the way for the U.S. to lead in the burgeoning EV industry. We have an opportunity to scale and revolutionize transportation, just as we have done with many of the most consequential technological advances in the past century. Over the past eight years, our factory in Sparks, Nevada has grown to be one of the largest lithium-ion battery factories in the world. We make around 6 million batteries per day. That's about 70 batteries each second. And in March 2025, we reached a milestone of 11 billion cells shipped. Panasonic Energy employs 4,000 workers at our Nevada Gigafactory and we anticipate adding another 4,000 high tech manufacturing jobs when our Kansas facility is running at full capacity. To build that team, we've long focused on job training and educational opportunities for students, employees and candidates transferring from other industries. In Nevada and Kansas, we have partnered with local colleges to offer opportunities for today's youth to become tomorrow's innovators. Our partnerships offer training in advanced manufacturing, production, automation, and robotics, and promote the development of advanced technologies and cultivate the next generation of advanced manufacturing professionals in the field of lithium-ion batteries. Most importantly, facilities like our factories in Sparks and De Soto are bringing well-paying, high-skilled jobs to parts of the country that have been left behind in the transition to a services-dominated economy. Why does that matter? It means parents don't have to worry about their children leaving their hometown in order to find good work. It means entrepreneurs can take a risk knowing they're not alone in investing in the local economy. It means companies are more likely to expand their operations to Sparks, De Soto, and other rural areas and bring additional opportunities to these communities. Around these factories, vibrant local economies are blooming. From small to medium businesses benefiting as the workforce grows, to infrastructure developments that will change the quality of life for all. We are seeing it firsthand around our facilities, where new roads are being built to make commutes safer and more accessible. The future is being built in these small towns across America. Vision for the Future of U.S. Manufacturing and Jobs At Panasonic Energy, we set out each day to change the world. There's no better time than the present to bring to life our vision for a more connected, electrified, and sustainable car industry – built right here in America. The opportunity to shift hundreds of millions of vehicles to electric over time would have a massive positive impact to our society and bring back new driving experiences and more choices and advanced driving technologies for Americans who love to drive. But more than that, the EV demand has brought opportunity to communities across the country. It's given America the opportunity to capitalize on bolstering our manufacturing sector to enhance our global competitiveness. It means more high-quality jobs, advancements in technologies, and putting American manufacturing against international competition. Building a more prosperous future for our nation starts today. Let's redefine American manufacturing and drive a sustainable tomorrow, together.
Yahoo
04-06-2025
- Automotive
- Yahoo
Trump's China Tariffs Are Backfiring in Funniest Way Possible
Donald Trump's tariffs on China have sent automakers scrambling to keep production lines moving—and their main solution is the exact opposite of what the U.S. president intended. When Trump announced his sweeping 'reciprocal' tariffs on almost every country (and a few uninhabited islands) in April, he promised that 'jobs in factories will come roaring back into our country.' Apparently, part of his goal was to make it so expensive to import certain products that companies would simply start manufacturing them in the U.S. But so far, the opposite is coming true. Four major automakers are rushing to find a way to keep procuring rare-earth magnets, a key component of car motors, which are primarily made in China. Without the magnets, the companies fear car production could shut down in a matter of weeks. Several carmakers, both traditional and electric, are considering moving part of the manufacturing process to China, The Wall Street Journal reported Wednesday. This could include building electric motors in Chinese factories or shipping American-made motors to China to have the magnets installed, according to the Journal. Trump's restrictions only cover the Chinese-made magnets, not finished parts such as a fully built motor. 'While efforts are under way to bolster supply chains and suppliers of these elements outside of China, this will take additional time and will not alleviate the immediate shortage of elements vital for automotive components used to produce vehicles here at home,' the heads of the Alliance for Automotive Innovation and MEMA, the Vehicle Suppliers Association, warned in a letter. China had agreed to reduce export controls on rare-earth magnets as part of a 90-day tariff pause with the United States. Trump has since accused China of dragging its feet on license approvals for magnets, while broader trade talks between the two nations appear to have come to a total standstill. Trump complained about the state of trade talks at 2:17 a.m. Wednesday. 'I like President XI of China, always have, and always will, but he is VERY TOUGH, AND EXTREMELY HARD TO MAKE A DEAL WITH!!!' he wrote on Truth Social.
Auto Blog
04-06-2025
- Automotive
- Auto Blog
Rare Earth Magnet Shortage Threatens Shutdown of U.S. Car Factories
The United States and countries around the world are sounding the alarm on shortages of magnets from China critical to vehicle production. Automakers worldwide are on the verge of a supply crisis Auto executives across the globe have raised urgent concerns that an impending shortage of rare earth magnets from China used in an extensive number of car parts threatens to upend vehicle production in weeks. Earlier this month, the Alliance for Automotive Innovation, a trade group representing Volkswagen, Hyundai, and General Motors, expressed unease regarding the impending shortage in a letter to President Trump. The letter listed automatic transmissions, throttle bodies, alternators, various motors, sensors, seat belts, speakers, lights, power steering, and cameras as among the many components affected by a rare earth magnet supply shortage, Reuters reports. The Alliance for Automotive Innovation and The Vehicle Suppliers Association cited reduced production volumes and complete shutdowns of assembly lines as severe outcomes of the scarcity. Annealed neodymium iron boron magnets — Source: Getty United States claims China is dragging its feet with minerals The Chinese government halted exports of rare earth magnets on April 4 during its trade war with the United States, but American officials anticipated China's mid-May trade war truce with the United States would reopen rare earth magnet access. However, United States trade representative Jamieson Greer said Friday that American officials: 'haven't seen the flow of some of those critical minerals, like they're [China] supposed to be doing,' according to The New York Times. China's embassy in Washington responded, saying the United States was abusing export controls in the semiconductor sector. An American official familiar with the United States and China's trade talks earlier this month in Geneva said discussions didn't involve export controls, Reuters reports. This same official claimed Beijing was moving slowly on promises to resume rare earth export licenses. India also hasn't received the licenses, putting the country on pace to pause auto production in early June. Europe has received some license approvals, but its Union Chamber of Commerce in China, Jens Eskelund, said the amount is insufficient. A rare earth mineral shortage would most impact United States automakers, and a separate New York Times report notes that some Chinese rare earth magnet makers have stopped production while waiting for permission to resume exports. China controls over 90% of global processing capacity for the magnets used in industries like auto manufacturing, fighter jet production, and home appliances, according to Reuters. The United States makes essentially no high-performance rare earth magnets, but small factories are scheduled to begin production this year in South Carolina and Texas. One operational mine in Oklahoma relies on China for processing. Small sales and profit margins have reduced many countries' desire to produce the magnets, with worldwide sales being a small fraction of larger industries like copper mining. Autoblog Newsletter Autoblog brings you car news; expert reviews and exciting pictures and video. Research and compare vehicles, too. Sign up or sign in with Google Facebook Microsoft Apple By signing up I agree to the Terms of Use and acknowledge that I have read the Privacy Policy . You may unsubscribe from email communication at anytime. Ford F-150 assembly line — Source: Getty Images Final thoughts While the United States auto industry will be most affected by a rare earth magnet shortage, the issue is global. To make matters worse, permit applications to China can require hundreds of pages of documents. German auto parts manufacturer Bosch said its suppliers are experiencing difficulty dealing with China's export license procedures. Despite receiving some licenses, Europe is still facing significant supply chain disruptions, and India could halt all auto production early this month. In response, the European Union is fast-tracking its mining and mineral initiatives to reduce its dependency on China.
Yahoo
03-06-2025
- Automotive
- Yahoo
Rare Earth Magnet Shortage Threatens Shutdown of U.S. Car Factories
Rare Earth Magnet Shortage Threatens Shutdown of U.S. Car Factories originally appeared on Autoblog. Auto executives across the globe have raised urgent concerns that an impending shortage of rare earth magnets from China used in an extensive number of car parts threatens to upend vehicle production in weeks. Earlier this month, the Alliance for Automotive Innovation, a trade group representing Volkswagen, Hyundai, and General Motors, expressed unease regarding the impending shortage in a letter to President Trump. The letter listed automatic transmissions, throttle bodies, alternators, various motors, sensors, seat belts, speakers, lights, power steering, and cameras as among the many components affected by a rare earth magnet supply shortage, Reuters reports. The Alliance for Automotive Innovation and The Vehicle Suppliers Association cited reduced production volumes and complete shutdowns of assembly lines as severe outcomes of the scarcity. The Chinese government halted exports of rare earth magnets on April 4 during its trade war with the United States, but American officials anticipated China's mid-May trade war truce with the United States would reopen rare earth magnet access. However, United States trade representative Jamieson Greer said Friday that American officials: 'haven't seen the flow of some of those critical minerals, like they're [China] supposed to be doing,' according to The New York Times. China's embassy in Washington responded, saying the United States was abusing export controls in the semiconductor sector. An American official familiar with the United States and China's trade talks earlier this month in Geneva said discussions didn't involve export controls, Reuters reports. This same official claimed Beijing was moving slowly on promises to resume rare earth export licenses. India also hasn't received the licenses, putting the country on pace to pause auto production in early June. Europe has received some license approvals, but its Union Chamber of Commerce in China, Jens Eskelund, said the amount is insufficient. A rare earth mineral shortage would most impact United States automakers, and a separate New York Times report notes that some Chinese rare earth magnet makers have stopped production while waiting for permission to resume exports. China controls over 90% of global processing capacity for the magnets used in industries like auto manufacturing, fighter jet production, and home appliances, according to Reuters. The United States makes essentially no high-performance rare earth magnets, but small factories are scheduled to begin production this year in South Carolina and Texas. One operational mine in Oklahoma relies on China for processing. Small sales and profit margins have reduced many countries' desire to produce the magnets, with worldwide sales being a small fraction of larger industries like copper mining. While the United States auto industry will be most affected by a rare earth magnet shortage, the issue is global. To make matters worse, permit applications to China can require hundreds of pages of documents. German auto parts manufacturer Bosch said its suppliers are experiencing difficulty dealing with China's export license procedures. Despite receiving some licenses, Europe is still facing significant supply chain disruptions, and India could halt all auto production early this month. In response, the European Union is fast-tracking its mining and mineral initiatives to reduce its dependency on China. Rare Earth Magnet Shortage Threatens Shutdown of U.S. Car Factories first appeared on Autoblog on Jun 3, 2025 This story was originally reported by Autoblog on Jun 3, 2025, where it first appeared.
Yahoo
03-06-2025
- Automotive
- Yahoo
Shortage of Rare-Earth Magnets Endangers US Vehicle Production
Top global auto executives are warning of an imminent shortage of rare-earth magnets from China, essential components in systems like windshield wipers and anti-lock brakes, which could lead to U.S. car plant shutdowns within a previously undisclosed letter dated May 9 to the Trump administration, the head of the Alliance for Automotive Innovation, which represents General Motors Company GM, Ford Motor Company F, Volkswagen AG VWAGY, and major automakers, raised alarm over the shortage of rare-earth magnets from the letter, without consistent access to these elements and magnets, auto suppliers would be unable to manufacture vital automotive parts such as transmissions, throttle bodies, alternators, sensors, motors, lights, seat belts, power steering systems, speakers and cameras. Losing access to these critical components would soon disrupt U.S. vehicle production. Per Alliance CEO John Bozzella, the matter was discussed during Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer's recent meetings with Chinese officials in Geneva. Per Greer, while China had agreed to ease export restrictions, it was not moving swiftly enough to restore access for key U.S. industries. China, which controls more than 90% of global processing for these magnets, used in everything from vehicles and military aircraft to household electronics, had introduced new rules in April requiring exporters to secure licenses from Beijing. Exports of rare-earth magnets from China dropped by half in April as companies struggled with a complicated and unclear permit application process, which can require hundreds of pages of Donald Trump, in a social media post, accused China of breaking the terms of a recent agreement meant to ease tariffs and trade restrictions. In response, China's embassy in Washington claimed it was the United States, not China, that was misusing export controls, particularly in the semiconductor industry.A U.S. official familiar with the discussions told Reuters that the Geneva talks only addressed tariffs and China's non-tariff trade measures, not U.S. export controls. Per the official, China was slow to deliver on its promise to issue export licenses for rare-earth materials. This delay could prompt retaliatory actions from Washington if U.S. automakers, already at risk due to the shortage, are forced to halt far, only a few licenses have been approved, including for some Volkswagen suppliers. Meanwhile, Indian car manufacturers reported they haven't received any permits and may have to shut down production as early as June. For automakers and their investors, the rare-earth shortage poses an immediate and serious threat. With most factories relying on just-in-time inventory systems, any disruption in supply could throw off production schedules this quarter and delay the rollout of both electric and gasoline mitigate the risk, car manufacturers are racing to diversify and localize their supply chains. General Motors has invested in a magnet production facility in Texas that uses materials from the Mountain Pass mine in California. Meanwhile, Volkswagen has reportedly secured magnet supplier licenses in Europe. China's restrictions on rare earth magnet exports are widely viewed as a retaliatory move in response to new U.S. tariff impacts are already expected to slash U.S. auto sales by around 500,000 vehicles, which would likely hurt automakers' sales and earnings in the near term. General Motors has already trimmed its 2025 guidance due to macroeconomic uncertainty and potential new U.S. auto tariffs. Ford, on the other hand, has suspended its full-year 2025 guidance, warning that Trump-era tariffs could cost the company up to $2.5 billion. While Ford aims to offset $1 billion of this through strategic actions, the remaining $1.5 billion, expected to hit in 2025, remains a major Ford & Volkswagen carry a Zacks Rank #3 (Hold) each, GM has a Zacks Rank #5 (Strong Sell) at present. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Ford Motor Company (F) : Free Stock Analysis Report General Motors Company (GM) : Free Stock Analysis Report Volkswagen AG Unsponsored ADR (VWAGY) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research 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
