Latest news with #CATL
Time of India
5 hours ago
- Automotive
- Time of India
Elon Musk's Tesla to build China's biggest ever battery power plant
Representative Image Tesla has signed its inaugural agreement to construct a grid-scale battery power plant in China, a report claims. This move comes amidst ongoing trade tensions between the US and China. The Elon Musk-led electric vehicle maker took to the Chinese social media platform Weibo to announce that this project, upon completion, will be the largest of its kind in China. The deal, valued at 4 billion yuan ($556 million), was signed by Tesla, the Shanghai local government and financing firm China Kangfu International Leasing , a report by the news agency Reuters noted, citing Chinese media outlet Yicai. Utility-scale battery energy storage systems are crucial for maintaining balance within electricity grids, especially as intermittent renewable energy sources like solar and wind become more prevalent. What Tesla said about building the biggest ever battery power plant in China Tesla announced that its Shanghai battery factory produced over 100 Megapacks in the first quarter of this year. Each Megapack is capable of delivering up to 1 megawatt of power for four hours, making it suitable for utility-scale energy storage. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Urologists: Men With ED - Try This Tonight Health Paradise Learn More Undo In the Weibo post, Tesla wrote (translated from Chinese): 'The grid-side energy storage power station is a 'smart regulator' for urban electricity, which can flexibly adjust grid resources.' Tesla added that this would 'effectively solve the pressure of urban power supply and ensure the safe, stable and efficient electricity demand of the city.' It also noted that, 'after completion, this project is expected to become the largest grid-side energy storage project in China.' The company's website states that each Megapack is priced at just under $1 million in the US, though pricing details for China have not been disclosed. According to the Reuters report, the deal is a major step for Tesla as it faces competition from Chinese battery giants CATL and BYD, with CATL holding around 40% of the global market. CATL is also expected to supply components for Tesla's Megapacks. The agreement with a local Chinese authority is especially notable amid ongoing US-China trade tensions and past political ties between Elon Musk and former US President Donald Trump. China's demand for large-scale battery storage is growing rapidly, with a target to add nearly 5 gigawatts by 2025, the Reuters report adds. Tesla is also exporting Megapacks from its Shanghai plant to Europe and Asia to meet rising global demand. In 2023, global battery energy storage capacity rose by 42 gigawatts, which is almost double the growth seen in the previous year, according to the IEA. AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Yahoo
a day ago
- Automotive
- Yahoo
Ford, GM battery tech battle intensifies as Michigan plant faces political headwinds
The electric vehicle fight between rivals Ford Motor Co. and General Motors is turning bitter — and a politically fraught battery factory in Michigan is the latest battleground. Even as EV sales fall far short of expectations for now, Detroit automakers are racing for battery supremacy in hopes of locking up market share for electric vehicles, which are still widely believed to be the future of the industry. The latest leg of the battery supply chain race is all about affordability, and that's where Ford's BlueOval Battery Park in Marshall, Mich., comes into play. The $2.5 billion factory is being geared up to launch production next year of lower-cost lithium iron phosphate (LFP) batteries, a pillar of the automaker's strategy to expand market share with more affordable EVs. But the plant is a lightning rod for controversy because Ford is licensing technology from Chinese battery behemoth CATL. The first-of-its-kind deal, announced in 2023, was structured in a way that would allow the factory to receive production tax credits under the Biden-led Inflation Reduction Act. That is, until lawmakers sought to change the rules. Future Product Find our what powertrains, redesigns and freshenings are planned for the next four years. View the list Brand future product timelines A proposed budget bill by the U.S. House would make the factory ineligible for the subsidy and 'imperils' the project and its 1,700 jobs, Ford Executive Chairman Bill Ford said at the Mackinac Policy Conference in May. The plant — a key economic development project for Gov. Gretchen Whitmer — has been targeted by anti-China politicians and 'not in my backyard' local activists from the outset, but Bill Ford told reporters on the sidelines of the conference that industry competitors are now piling on. Sign up for the quarterly Automotive News U.S. Sales report to get data and news sent to your inbox as soon as it's compiled. 'We do know that others in our industry are trying to submarine it to hurt us,' Ford said. 'That's just sour grapes, frankly.' Ford stopped short of naming names, but four people familiar with the matter told Automotive News affiliate Crain's Detroit Business that GM is behind lobbying efforts for tighter rules around 'foreign entities of concern' and language in the budget bill that targets licensing agreements such as the Ford-CATL deal in Marshall. Ford views it as an attack by its longtime rival. To GM, it's nothing personal, just a bid to shore up its business strategies. The behind-the-scenes battery feud comes as automakers look to outdo each other through 'made in the USA' marketing campaigns amid Trump tariffs and pressure to increase U.S. production. While Ford boasts an industry-leading final assembly footprint in the U.S., its business with CATL in Marshall is a political vulnerability. A GM source familiar with its lobbying activity said the company's support of the tighter restrictions on business ties to China is about ensuring a level playing field. GM officials have touted battery investments in North America and the automaker's partnerships with battery manufacturers in allied countries, such as South Korea's LG Energy Solution. 'GM has been investing in a resilient critical minerals and battery supply chain to support American innovation, manufacturing and economic security,' GM spokeswoman Liz Winter said in an email to Crain's. The company declined to comment on specific lobbying efforts. Other automakers have not pushed for the tighter controls on EV production incentives like GM has, the sources told Crain's. Stellantis and Toyota Motor North America, which have been slower in their electrification approaches, declined to comment about their stance on the proposed rule changes. GM is, by far, the biggest spender among automotive companies on Capitol Hill this year, racking up a record $8.2 million in lobbying expenditures in the first quarter, according to Open Secrets, which compiles online government records. That's more than the company has spent on lobbying in a single quarter since recordkeeping started in 1998, and it's more than six times that of the next highest-spending automaker, Toyota. While GM has sought to build out a battery supply chain not dependent on China, the automaker has previously explored options to procure CATL battery technology in the U.S. GM had considered setting up a plant with CATL in Illinois mirroring the Ford-CATL licensing deal, according to two people who were involved in the talks, but it was scrapped in 2023 after the political backlash from the Ford-CATL plant in Marshall. GM declined to comment on the previously unreported project or about talks with CATL. The Alliance for Automotive Innovation, the trade group representing major auto companies including the Detroit 3, has been mum about the proposed legislation to tighten restrictions on EV incentives even though it has spoken regularly on other major issues including tariffs and emission rules. The group did not respond to requests for comment. The House bill must first be reconciled by the Senate before it is signed into law. The Senate is weighing even more dramatic rollbacks of EV tax credits, according to text from the Senate Finance Committee. U.S. Rep. John Moolenaar, R-Mich., who represents Michigan's 2nd District, said he is pleased to see his 'No Gotion' bill advance in the House budget, referring to the controversial Chinese battery manufacturer planning a factory near Big Rapids, Mich. Moolenaar said any project with ties to China is concerning, including the Ford battery plant in Marshall. 'I've been very clear. I am a strong supporter of Ford,' Moolenaar said. 'I do think the relationship with CATL is problematic because CATL has been proven to work with Chinese military companies and their supply chain is also connected to the CCP's (Chinese Communist Party) genocide of Uyghurs.' That Ford would stick by its partnership with CATL despite years of political blowback — and that a crosstown competitor would also take aim at the project — underscores just how much of a competitive advantage it could be. Nickel-manganese-cobalt, or NMC, is the predominant chemistry powering EVs on the road today. However, the batteries are costly and connected to a troublesome supply chain, with materials sourced and refined in countries such as China and the Congo. LFP batteries do not contain nickel or cobalt and thus are 20 to 30 percent less costly to produce than NMC batteries. Coupled with an up to $45 per kilowatt-hour subsidy as allowed for in the Inflation Reduction Act, Ford's plant in Marshall is set to produce batteries that are hundreds, if not thousands, of dollars cheaper than those of competitors. LFP is largely seen as an interim solution on the way to superior technology, such as lithium manganese rich (LMR) batteries. Ford and GM each announced last month LMR breakthroughs and plans to go to market with the technology by the end of the decade. Until then, it's a race for market share with current technologies. LFP had long been ignored by many in the industry because of its power capacity and range constraints, but tech advancements have vastly improved energy density in recent years. GM is reportedly working with South Korean battery makers LG and Samsung SDI to produce LFP batteries in the U.S. as well. But CATL is leagues above the competition. 'Where CATL is much more superior is the fact that they can eke out more efficiency from that same size battery versus anyone else in the market,' said Tu Le, founder of consultant Sino Auto Insights. 'They have much more scale, and they are the leaders in this particular chemistry.' That's why outside of the U.S., CATL's client roll is a who's who of the automotive industry. Almost all the major automakers doing business in China, including GM, partner with CATL on EVs in the Far East. 'So why wouldn't it make sense for Ford to partner with them in Marshall, outside of politics?' Le said. 'They're the only game in town at that price, at that quality level, at that level of innovation. The Koreans and the Japanese are good at using batteries that need a lot of cobalt, need a lot of nickel, and really drive the price of the vehicles much higher.' At the root of the Ford-GM divergence in battery strategy appears to be a difference in ideology. Ford CEO Jim Farley, who has called China the industry's greatest threat, has leaned into the competition by seeking to learn from the Chinese. To gain access to the lucrative China market in the early 1980s, Detroit automakers were forced to partner with Chinese companies, which eventually hoovered up the manufacturing know-how of the West to set the foundation for their EV dominance today. As Ford sees it, a CATL partnership is about more than cheap batteries; it's also about soaking up the Chinese expertise to become EV industry leaders. GM is striving for that same outcome, but through different means. CEO Mary Barra has downplayed China's supposed tech prowess and indicated that lower costs, driven by government subsidies, are the biggest advantage of Chinese EV companies. 'We're scaling U.S. production, securing a resilient North American supply chain, and advancing technology to drive down costs and compete globally,' Kurt Kelty, vice president of battery, propulsion and sustainability for GM, said in a recent blog post. At the Mackinac Policy Conference, Bill Ford said it is 'unfair' for politicians to change the rules after the investment has been committed. Construction on the Marshall plant, which was scaled back last year, is about 60 percent complete, and manufacturing equipment is set to arrive and be installed this summer, according to the company. Whether production lines will be powered with CATL technology and receive government subsidies remains to be decided by lawmakers. Said Moolenaar: 'As a business strategy, relying on China creates tremendous vulnerabilities.' 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 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
CNA
2 days ago
- Business
- CNA
Global IPO activity slumps in 2025 as tariffs, volatility weigh
Global equity IPOs have plunged this year, weighed down by heightened business uncertainty from US tariffs, elevated market volatility and higher interest rates that have raised funding costs and made listings less appealing for issuers. According to LSEG data, as of Jun 17, global IPO volume has declined about 9.3 per cent year-on-year to US$44.3 billion, the lowest level in nine years. US IPO volumes dropped 12 per cent to US$12.3 billion, while Europe saw a sharper 64 per cent decline to US$5.8 billion. In contrast, Asia-Pacific IPO volumes have risen 28 per cent to US$16.8 billion so far this year. President Donald Trump's tariffs, which included a 10 per cent blanket levy plus targeted duties on U.S. trading partners, re-ignited tensions in April. Despite his subsequent pause and negotiations on trade and tariffs, businesses globally are uncertain about demand and investment. "It's not prudent for companies to go public right now. The volatility in the market is unprecedented," said Isabelle Freidheim, founder and managing partner at Athena Capital. "There's real risk for tech companies that are still figuring out profitability. If the stock drops after the IPO, it's very hard to recover, especially for companies with less steady cash flow or that aren't as mature." Despite the broader slowdown, China and Japan have seen a sharp pickup in listings, driven by regulatory easing and improved sentiment. A standout was Chinese battery giant CATL, which raised US$4.6 billion in the world's largest IPO so far this year, boosted by renewed market momentum following the US tariff truce. At the same time, some analysts are cautiously optimistic about a second-half recovery. US IPO interest is showing signs of a rebound, led by fintech firm Chime, which surged on its debut. High-profile names such as Klarna, Gemini and Cerebras are slated to list later this year.
Zawya
2 days ago
- Business
- Zawya
Global IPO activity slumps in 2025 as tariffs, volatility weigh
Global equity IPOs have plunged this year, weighed down by heightened business uncertainty from U.S. tariffs, elevated market volatility and higher interest rates that have raised funding costs and made listings less appealing for issuers. According to LSEG data, as of June 17, global IPO volume has declined about 9.3% year-on-year to $44.3 billion, the lowest level in nine years. U.S. IPO volumes dropped 12% to $12.3 billion, while Europe saw a sharper 64% decline to $5.8 billion. In contrast, Asia-Pacific IPO volumes have risen 28% to $16.8 billion so far this year. President Donald Trump's tariffs, which included a 10% blanket levy plus targeted duties on U.S. trading partners, re-ignited tensions in April. Despite his subsequent pause and negotiations on trade and tariffs, businesses globally are uncertain about demand and investment. "It's not prudent for companies to go public right now. The volatility in the market is unprecedented," said Isabelle Freidheim, founder and managing partner at Athena Capital. "There's real risk for tech companies that are still figuring out profitability. If the stock drops after the IPO, it's very hard to recover, especially for companies with less steady cash flow or that aren't as mature." Despite the broader slowdown, China and Japan have seen a sharp pickup in listings, driven by regulatory easing and improved sentiment. A standout was Chinese battery giant CATL, which raised $4.6 billion in the world's largest IPO so far this year, boosted by renewed market momentum following the U.S. tariff truce. At the same time, some analysts are cautiously optimistic about a second-half recovery. U.S. IPO interest is showing signs of a rebound, led by fintech firm Chime, which surged on its debut. High-profile names such as Klarna, Gemini and Cerebras are slated to list later this year. "With U.S., European defence contractors and Indian consumer names also filing, late-2025 could deliver a textbook 'trickle-then-torrent' if volatility behaves," said Michael Ashley Schulman, chief investment officer at Running Point Capital Advisors. (Reporting By Patturaja Murugaboopathy, Raju Gopalakrishnan)
Reuters
2 days ago
- Business
- Reuters
Global IPO activity slumps in 2025 as tariffs, volatility weigh
June 19 (Reuters) - Global equity IPOs have plunged this year, weighed down by heightened business uncertainty from U.S. tariffs, elevated market volatility and higher interest rates that have raised funding costs and made listings less appealing for issuers. According to LSEG data, as of June 17, global IPO volume has declined about 9.3% year-on-year to $44.3 billion, the lowest level in nine years. U.S. IPO volumes dropped 12% to $12.3 billion, while Europe saw a sharper 64% decline to $5.8 billion. In contrast, Asia-Pacific IPO volumes have risen 28% to $16.8 billion so far this year. President Donald Trump's tariffs, which included a 10% blanket levy plus targeted duties on U.S. trading partners, re-ignited tensions in April. Despite his subsequent pause and negotiations on trade and tariffs, businesses globally are uncertain about demand and investment. "It's not prudent for companies to go public right now. The volatility in the market is unprecedented," said Isabelle Freidheim, founder and managing partner at Athena Capital. "There's real risk for tech companies that are still figuring out profitability. If the stock drops after the IPO, it's very hard to recover, especially for companies with less steady cash flow or that aren't as mature." Despite the broader slowdown, China and Japan have seen a sharp pickup in listings, driven by regulatory easing and improved sentiment. A standout was Chinese battery giant CATL, which raised $4.6 billion in the world's largest IPO so far this year, boosted by renewed market momentum following the U.S. tariff truce. At the same time, some analysts are cautiously optimistic about a second-half recovery. U.S. IPO interest is showing signs of a rebound, led by fintech firm Chime, which surged on its debut. High-profile names such as Klarna, Gemini and Cerebras are slated to list later this year. "With U.S., European defence contractors and Indian consumer names also filing, late-2025 could deliver a textbook 'trickle-then-torrent' if volatility behaves," said Michael Ashley Schulman, chief investment officer at Running Point Capital Advisors.
