Latest news with #batteryplant
CBC
13 hours ago
- Business
- CBC
Nearly 200 suddenly laid off at NextStar EV battery plant in Windsor: Contractor
Exclusive NextStar says its workers and operations are unaffected Some workers at the NextStar Energy electric vehicle battery plant in Windsor, Ont., have been abruptly laid off, according to the contractor for which they worked. Eric Farron, vice president of operations at Sylvan Canada, said Friday that nearly 200 of the company's workers at the facility — 145 millwrights and ironworkers, 45 electricians, and three pipe fitters — were affected. Farron said the firm was told to "immediately demobilize" on Thursday night, and that the workers still had a significant amount of work left to complete. Mike Meloche, business agent for UA Local 527 — which represents plumbers, steamfitters, and welders in southwestern Ontario — said "a lot of guys" at the plant had been sent home Friday and that some had been told not to return until Wednesday. NextStar, a $5-billion joint venture between automaker Stellantis and South Korean battery maker LG Energy Solution, said its employees and operations are unaffected by the decision. "Change in works are a standard part of operations and reflect ongoing efforts to align project needs," spokesperson Daniela Ferro said in a statement. "The company looks forward to the successful completion of the NextStar Energy site." Ferro did not clarify what those changes were, what caused them, or whether the layoffs were temporary or not. Construction on the sprawling east end battery plant, the first of its kind in Canada, began in 2022. Work at the site paused in 2023 in light of fresh incentives for EV battery production south of the border, leading the provincial and federal governments to pledge $15 billion in tax breaks to keep the project alive. The companies have said the plant will eventually employ 2,500 people and supply batteries for up to 450,000 Stellantis vehicles annually. The facility started producing battery modules in October. The company's CEO previously said he expected production on the battery cells themselves to start this fall.
New York Times
5 days ago
- Automotive
- New York Times
Ford Will Keep Battery Factory Even if Republicans Axe Tax Break
Ford Motor said on Monday that it was committed to completing and opening a battery plant in Michigan, even if Congress and President Trump make the project ineligible for tax incentives. The $3 billion plant, in Marshall, Mich., 100 miles west of Detroit, uses battery and manufacturing technology that Ford licensed from a Chinese company, Contemporary Amperex Technology Ltd., known as CATL. Ford decided to build the factory two years ago under the expectation that a portion of the cost would be offset by federal tax credits provided by the Inflation Reduction Act, former President Joseph R. Biden Jr.'s signature energy and climate change legislation. But Republicans in Congress are working on a policy bill that could bar federal support for battery plants that use Chinese technology or materials. Mr. Trump has supported that effort and sharply criticized Democratic efforts to encourage the use and production of electric vehicles. At a tour of the factory on Monday, Lisa Drake, Ford's vice president for technology platform programs and E.V. systems, said the company would move ahead even if such restrictions were signed into law. 'We don't want to back off on this facility,' Ms. Drake told reporters. 'When we invest, we stick behind our investments. Ford is a company that will weather the storm until we get there.' Want all of The Times? Subscribe.
Wall Street Journal
07-06-2025
- Automotive
- Wall Street Journal
A Chinese-owned Battery Plant in South Carolina Halts Construction
A Chinese-owned company is halting construction of an electric-vehicle battery plant in South Carolina, in part because of the Trump administration's tariffs and a potential loss of federal subsidies for clean energy. Automotive Energy Supply Corp., or AESC, began construction of the $1.6 billion factory in Florence in 2023, after securing a deal with BMW to make battery cells for the German automaker. In a message to employees on Thursday afternoon, AESC's top U.S. executive said the company was pausing construction work because of 'economic uncertainty arising from current federal policy and tax issues.' 'Our intent is to finish construction of the facility once stability and predictability have returned to the market,' Knudt Flor, AESC's chief executive for the U.S. and Europe, wrote in the memo. While construction of the physical buildings is nearly complete, the work of installing equipment and assembly lines has halted, said current and former employees. Some of the employees said AESC would face a hefty tariff bill for the machinery if they imported it now, because it is mostly brought in from China. Tariffs on Chinese imports have fluctuated wildly since April, rising to as high as 145%, before falling again amid a truce between Washington and Beijing as the two sides try to come to an agreement. Separately, tariffs on steel and aluminum recently announced by President Trump, as well as on machinery containing the metals, only adds to AESC's costs, two of the people said. Battery plants were already under pressure before Trump's election, because carmakers had delayed or walked back their plans for new electric vehicles. Billions of dollars were poured into building new battery factories in recent years, spurred on by the subsidies from the Biden administration. Many of these factories were constructed in the Midwest and Southeast of the U.S., in a region that came to be called the Battery Belt. Now many of those subsidies are being targeted by Republicans at the same time regulations and tax credits aimed at driving EV sales are also at risk. The current version of a tax bill before Congress would end EV battery production subsidies a year early and make them unavailable to companies with ties to certain countries, including China. AESC's headquarters is in Japan, but it is majority-owned by China's Envision Group, which purchased the battery-making unit of Japanese automaker Nissan in 2018. 'AESC has invested over $1 billion into the Florence facility, and we anticipate being able to resume construction once circumstances stabilize. AESC fully intends to meet our commitments to invest $1.6 billion and create 1,600 jobs in the coming years,' the company said. The AESC factory is supposed to supply battery cells to a new BMW factory in Woodruff, S.C. Under the original deal, these batteries were to power the German company's EV models that are expected to go into production starting in 2027. BMW said its plans to open the Woodruff plant next year, as planned. It referred any questions about the AESC factory to that company. Write to Christopher Otts at
Yahoo
23-05-2025
- Automotive
- Yahoo
The Zacks Analyst Blog Highlights Ford, Nissan and Honda
Chicago, IL – May 22, 2025 – announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Ford F, Nissan NSANY and Honda HMC. Here are highlights from Wednesday's Analyst Blog: U.S. auto biggie Ford is scaling back its electric vehicle (EV) ambitions once again—this time by opening the doors of its battery plant to a rival. In a move that highlights the growing pressure facing automakers, Ford will allow Japan's Nissan to use part of its underutilized Kentucky battery facility. This factory was originally part of Ford's $7 billion EV investment push in 2021, built in partnership with South Korea's SK On. Today, one plant sits idle, and only a portion of the other is producing batteries. Now that part will make batteries for both Nissan and Ford. Partnering with Nissan will help absorb excess incurred a $4.5 billion loss in the last reported quarter and just scrapped plans for a battery plant in Japan. Local U.S. production will help reduce its tariff exposure, which is a strategic move by Nissan. Nissan's peer Honda is also rethinking its EV roadmap. As global demand cools, Honda is slashing its EV and software investment target by nearly a third and pivoting toward hybrids. Honda now plans to launch 13 new hybrid models globally by 2030, while scaling back expectations for fully electric vehicles. These moves underscore the challenges Ford and other automakers are facing as EV demand stalls and costs climb. Ford has suspended its full-year 2025 guidance, citing tariff-related uncertainties. The company incurred a $5.07 billion EV loss in 2024, and we expect another $5 billion at least in red ink this year. At this stage, investors may be wondering if the automaker still has a compelling long-term case. Let's dig into the investment thesis. Ford is navigating through some tough terrain. One of the biggest hurdles is the impact of Trump tariffs, which are expected to cost the company a staggering $2.5 billion. While Ford plans to cushion the blow by offsetting $1 billion through various efficiency and cost-cutting measures, the remaining $1.5 billion hit in 2025 looms large. With potential retaliatory tariffs and ongoing supply chain disruptions, the road ahead remains unpredictable. On a broader scale, tariffs could slash U.S. auto industry sales by around 500,000 units, a drop that would undoubtedly weigh on Ford's own sales and bottom line. The traditional Ford Blue division, which sells gas-powered vehicles, is also showing signs of fatigue. The company anticipates lower sales of internal combustion engine (ICE) vehicles this year compared to 2024 A shift in product mix, combined with foreign exchange headwinds, is expected to further compress profits. At the same time, Ford's ambitious investments in green mobility and autonomous driving technology — while vital for the future — are taking a toll on its short-term financial flexibility. The company is pouring billions into modernization efforts, including digital infrastructure, IT systems and product rollouts. As a result, cash flow pressure remains a near-term concern for investors. Still, not everything is working against Ford. A standout bright spot is its Ford Pro division, which serves commercial and fleet customers. The segment is showing robust demand, backed by strong demand for its Super Duty truck. The integrated offering across vehicles, software, and physical services is gaining traction and could be a major growth engine in the years ahead. Ford's sharpened focus on software and service-led revenues underpins a powerful long-term shift in its business model. Then there's Ford's strong liquidity cushion. The company exited the first quarter of 2025 with $27 billion in cash and about $45 billion in total liquidity. The company is on track to deliver $1 billion in cost savings this year, excluding the impact of tariffs. Finally, Ford's dividend yield of over 5% offers a compelling case for income-focused investors, especially when compared to the S&P 500's average yield of just over 1%. With a plan to return 40-50% of free cash flow to shareholders, Ford is reinforcing its commitment to delivering consistent returns, even as it reshapes its business for the future. Shares of Ford have declined around 11% over the past year against the industry's gain of 29%. From a valuation standpoint, Ford trades at a forward price-to-sales ratio of 0.27, below the industry as well as its own 5-year average. F carries a Value Score of A. The Zacks Consensus Estimate for F's 2025 earnings implies a 38% drop year over year. Here's how the EPS estimates for 2025 and 2026 have been revised over the past 60 days. Ford's latest move to share its battery plant with Nissan underscores the shifting ground beneath the EV market. While near-term headwinds—from tariffs to weakening ICE sales to heavy investment outlays—pose real challenges, Ford's strengths should not be overlooked. Its Ford Pro segment, solid liquidity and generous dividend support the case for long-term stability. Still, the road to transformation is costly and uncertain. With mixed signals across its business, Ford remains a wait-and-watch story for now. Existing investors may want to hold their positions, while potential buyers should wait for clearer signs of progress in margins, EV strategy and cost control. Ford stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Why Haven't You Looked at Zacks' Top Stocks? Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year. Today you can access their live picks without cost or obligation. See Stocks Free >> Media Contact Zacks Investment Research 800-767-3771 ext. 9339 support@ Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit for information about the performance numbers displayed in this press release. 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 Honda Motor Co., Ltd. (HMC) : Free Stock Analysis Report Nissan Motor Co. (NSANY) : 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
CBC
14-05-2025
- Automotive
- CBC
Battery plant in Port Colborne, Ont., to see 'minimal' impact from Honda investment withdrawal: partner
Social Sharing The company behind a battery plant in Ontario's Niagara Region says it's still planning to start operations in 2027 despite car maker Honda Canada postponing a $15-billion electric vehicle investment in the province. A year ago, Japanese multinational Asahi Kasei Corporation announced it would open a battery separator manufacturing facility in Port Colborne. Separators prevent lithium-ion batteries from short-circuiting and overheating. When it comes to Honda's decision, "we are currently assessing the specific impact, but we expect it to be minimal," said Holli Hughes, a spokesperson for Polypore International, which is owned by Asahi Kasei. "The planned start of operations at the [Port Colborne] plant in 2027 remains unchanged, as we have sales planned for other companies." In May 2024, Mayor Bill Steele said Asahi Kasei was making the biggest investment in that city in a century and that the company chose Port Colborne for reasons including its "welcoming people" and access to rail, water, highways and the Canada-U.S. border. CBC Hamilton asked a Port Colborne spokesperson if the mayor or the city would comment on the Honda announcement Tuesday but did not hear back before publication. Honda still a partner on Port Colborne plant Weeks before Asahi Kasei announced it would set up in Port Colborne, Honda said it would build an EV battery plant next to its Alliston, Ont., assembly plant as part of an effort to produce EVs in the province. Now, Honda Canada is postponing that plan for two years, citing "the recent slowdown of the EV market," company spokesperson Ken Chiu told CBC News in an email statement. "The company will continue to evaluate the timing and project progression as market conditions change." Chiu said the pause would have "no impact" on current employment or production at the Alliston plant. Honda is also a partner on the Niagara separator plant, having announced the partnership with Asahi Kasei in November. The two formed a joint venture with 75 per cent of the investment coming from Asahi Kasei Battery Separator Canada Corporation and 25 per cent from Honda Canada, according to a news release. Asahi Kasei spokesperson Christian OKeefe said Tuesday that the joint venture "remains in place." At the time the plant was announced, it was unclear how many local workers it might employ, with a provincial government spokesperson telling CBC Hamilton there was no guarantee for Canadian jobs. In a November news release, Asahi Kasei said it had started local hiring, "with more than five employees supporting the project's startup phase." It said the company "is committed to local engagement and economic growth and has begun earthworks using provincial companies and contractors." In an email to CBC Hamilton Tuesday, OKeefe said that the initial phase of the project will create "more than 300 jobs." Although the North American EV market has slowed down, OKeefe said, the company is committed to increasing capacity and creating jobs to meet future demand. "While we can't share exact numbers at this stage, we will continue working with community partners to identify qualified local talent." On Tuesday, Asahi Kasei was scheduled to hold community information sessions at the Vale Health and Wellness Centre in Port Colborne from 3 p.m. to 7 p.m. In a public notice, it said locals would meet with company representatives to learn more about the project and career opportunities.
