EV News Round Up
August has had plenty of electric vehicle (EV) news from the Inflation Reduction Act and need to meet EV demand. This new legislation aims to create more jobs nationwide and reduce reliance on foreign resources by incentivizing EV and battery manufacturers to produce their products domestically. Companies like Panasonic and LG announced new battery plants, pushing the total number of U.S. battery plants to 25. A developing story is the use of lithium iron phosphate batteries, or LFP batteries, that will start to be used to supply the large demand of electric vehicles. Let us know your thoughts @REACHStrategies!
- Genesis, the luxury brand of Hyundai, announced its electric SUV, the GV60, will be available in four more states: Arizona, Nevada, Utah, and Washington. This updates comes after first declaring it would only be available in California, Connecticut, New York, and New Jersey. Hyundai also announced it will break ground on its new Georgia facility in 2023 and expects to produce 300,000 EVs a year by 2025.
- The University of Michigan conducted a counter study to the USPS’ study about the reduction of greenhouse gas emissions from its mail delivery gas fleet. The university’s study found that there were 63% lower emissions compared to what USPS’ study found. Recently, the USPS has been resistant to converting to an electric fleet, and this study may help them pivot to going electric sooner.
- California announced a new law ending the sale of gas cars by 2035. This process began in 2020 when Governor Gavin Newsom ordered the initiative and told state agencies to create an action plan for how to accomplish the goal, specifically focusing on speeding up the production of EVs starting in 2026.
- The Inflation Reduction Act has passed and electric vehicles were a big part of the new legislation, but what does it mean for our country and you?
EVs for Business
- After Panasonic announced its $4 billion plan to build a battery cell factory in Kansas, the company is now deciding between Nevada and Oklahoma for another factory location to help meet the demand of domestic battery production outlined by the new Inflation Reduction Act.
- Honda and LG will build a $4.4 billion battery plant for EVs in the US which will mass produce battery cells by the end of 2025 and will be operated by both companies. While the companies’ joint plant will be based in the U.S., the exact location has yet to be announced. The upcoming battery plant will help Honda’s goals of producing 2 million EVs a year by 2030 and ensuring U.S. tax credits.
- POSCO Chemical and GM agreed to a partnership to supply Cathode Active Material (CAM), a key battery material of various components like nickel and lithium that cover 40% of the cost of a battery cell. The CAM will be processed at plants in Michigan, Ohio, and Tennessee.
- Companies like BYD and CATL are working on new structural designs, specifically surrounding batteries and how to incorporate them into the structure of the car that are part power and part skeleton of EVs.
- LFP batteries are car manufacturers’ alternative route to meeting new electric vehicle demands. Celgard and American Battery Factory have entered into a partnership to develop these battery cells that will help future EVs meet the federal tax requirements under the new Inflation Reduction Act.