Automotive Industry Hot Topics
June 23, 2023
This week I discuss global EV incentives that are hitting the market and I talk about lithium iron phosphate (LFP) batteries. I also share about the DOE MESC program announcement of $80 million in funding to strengthen American manufacturing.
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EV Tax Breaks:
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China unveils $72 billion tax break for EVs, other green cars to spur demand
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China’s new EV subsidies might not be enough to bolster slowing growth
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Tesla's Model 3 cheaper than Toyota's Camry in California with tax benefits
My thoughts:EV incentives are not just for US consumers. China has renewed its prior incentive program for new energy vehicles (NEV) through 2025. Although incentives in China are intended to bolster a softening market, EV charging is still perceived as a bottleneck. Globally, range anxiety has given way to charging anxiety.
The Race for EV Battery Minerals:
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For EV batteries, lithium iron phosphate narrows the gap with nickel, cobalt
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As electric cars take off, makers pledge $14.3 billion for US lithium iron phosphate
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Japan signed a critical minerals deal with the U.S. — but it’s still losing the global EV race
Lithium Iron Phosphate (LFP) batteries are looming large on the near-term horizon of EV production. Using less costly materials, LFP is the latest example of innovation helping improve EVs' affordability. Other countries are also getting into the game. Japan recently signed supply agreements with the US to provide critical minerals essential to EV production.
DOE MESC Program Announcement:
My thoughts:
The Department of Energy has announced $80M in funding to support small and medium-sized US manufacturing firms in CO2 reduction. This is a great opportunity to help fund sustainability initiatives while modernizing operations.
Read the full Publication on our website.
To read previous Hot Topics, please visit our Feature Stories tab at cargroup.org.
Best Regards,Alan AmiciPresident and CEOCenter for Automotive Research
