LG, Hyundai Open Indonesia EV Battery Plant

News: Industry Segments

2024-07-15

LG, Hyundai Open Indonesia EV Battery Plant

SOUTH KOREA REPORT

South Korean battery giants LG Energy Solutions and Hyundai Motor have opened their first battery plant in Indonesia. The plant will produce batteries for electric vehicles to be sold locally and in neighboring countries. Indonesian President Joko made the announcement at a ceremony held July 3 in the Karawang region near the capital, Jakarta, to mark the opening of the new plant.

The investment is $1.2 billion, split 50-50 between LG Energy and Hyundai Motor. The annual battery production capacity is 10 GWh, which is equivalent to 150,000 electric vehicles. The plan is to invest an additional $2 billion in the second phase to increase the capacity to 20 GWh.

The company will produce lithium-ion batteries using a cathode material called NCMA. The high nickel content increases battery performance and range. The new plant will be LG Energy’s fifth production site in Southeast Asia, following those in South Korea, Poland, China and the U.S.

LG Energy has already supplied NCMA to Tesla, among others. In addition to Indonesia, the new plant will also serve as an export base for batteries used in electric vehicles sold by Hyundai Motor in neighboring countries in Southeast Asia, India, South Korea and elsewhere.

Source: The Nikkei

PSR Analysis:  South Korea, which is positioning its battery industry as a key national industry, is moving very fast. The fact that it was able to get its battery plant up and running before its competitors may give it an advantage in its future business development in the region. But China’s CATL, the world’s largest EV battery manufacturer, plans to build new factories for batteries, battery materials and battery recycling in Indonesia in cooperation with local companies. The investment is about $6 billion. The news of the new plant in Indonesia is good news for South Korea’s automotive industry, but whether South Korea will be able to maintain a stable supply of EV battery materials in the future remains to be seen yet. PSR

Akihiro Komuro is Research Analyst, Far East and Southeast Asia, for Power Systems Research

Chinese Joint Venture Begins Mississippi Battery Plant

CHINA REPORT
Jack Hao
Jack Hao

ACT Company (AMPLIFY CELL TECHNOLOGIES LLC ), a Chinese a joint venture company, has broken ground for a battery production plant in Mississippi.

ACT Company was established by EVE Energy’s wholly owned subsidiary EVE Energy US, Cummins, Daimler Trucks, and Paccar. The joint venture will produce prismatic lithium iron phosphate batteries, mainly for designated North American commercial vehicle applications. It will have an annual production capacity of about 21GWh and will provide more than 2,000 local jobs.

The project is expected to start shipping in 2026, and the three foreign enterprises and their affiliates will become the main customers, purchasing most of the products from the factory.

ACT Company is the first project of EVE Energy’s CLS model, aiming to enhance the flexibility and competitiveness in the global cooperation process, and to work with more partners to jointly promote sustainable development. The successful beginning of this project marks the entry of EVE Energy into a new stage of global development.

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2024-07-14

Honda To Cut Thai Car Production

THAILAND REPORT
Akihiro Komuro
Akihiro Komuro

Honda said it plans to integrate its two automotive manufacturing plants in Thailand by 2025. The move will cut annual production capacity in Thailand by 50% to 270,000 units.

Production at the Ayutthaya plant will be discontinued and consolidated at the Prachinburi plant in central Thailand. The Ayutthaya plant has an annual production capacity of 150,000 units. Honda’s total production capacity in Thailand is 270,000 units, but there was a surplus of 147,000 units in 2011. The company will improve the profitability of its four-wheel business by reducing fixed costs. The Ayutthaya plant will continue to be used as an auto parts plant.

Source: The Nikkei

PSR Analysis:  Just last month in PowerTALK, I reported on Suzuki’s withdrawal from four-wheel production in Thailand, and now it is clear that Honda is also struggling in the Thai market due to the rapid growth of EVs, with the Japanese brand’s share falling 8% year-on-year to 78% in 2023. By 2024, the share is expected to fall even further.

While some in Europe and the U.S. are discussing a review of BEVs, the debate is not as active in Southeast Asia. The region has reserves of rare metals needed for EV batteries, and each country has positioned EV manufacturing as a growth driver for its national manufacturing industry. Since it is difficult to change policy, EVs will continue to be promoted in the future. PSR

Akihiro Komuro is Research Analyst, Far East and Southeast Asia, for Power Systems Research

Bajaj, TVS Enter CNG Two-Wheeler Market

INDIA REPORT
Aditya Kondejkar


Bajaj Auto has recently launched the Freedom 125, the world’s first CNG-powered two-wheeler, generating significant buzz in the Indian market. This innovative move has boosted Bajaj’s market position and also inspired other manufacturers, like TVS, to explore CNG options.

The Freedom 125, priced between Rs 95,000 and Rs 1.10 lakh, offers an impressive CNG mileage of 102 km/kg, which appeals to environmentally conscious consumers and those looking for cost-effective fuel alternatives.

Source: CNBCTV18:    Read The Article

TVS Motor Company is set to follow Bajaj’s lead by developing the Jupiter 125, which will be the first scooter to feature a factory-fitted CNG (compressed natural gas) kit. Slated for launch early next year, the Jupiter 125 is aimed to compete directly with Bajaj’s Freedom 125, offering similar pricing and dual fuel options.

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Alternative Power Report, July 2024

PSR Alternative Power Report – July 2024Download

Canada is preparing to join the tariff war against Chinese EVs, according to a report in the July 2024 issue of the Alternative Power Report prepared by Power Systems Research. Another article in the report notes that even thought EV sales are lagging, they’re positioned for long-term growth. And there’s plenty of battery news in this report prepared by PSR analyst Guy Youngs. PSR

2024 North America Scooter Production

DATAPOINT REPORT

175,300 units is the estimate by Power Systems Research of the number of Scooters expected to be produced in North America in 2024.

Scooters/Minibikes/Mopeds are motorized 2-wheeled vehicles used primarily for recreation, although they are used for primary transportation in many cases.

It’s important to note that Go-Ped manufactures stand-on scooters. 

This product information comes from industry interviews and from two proprietary databases maintained by Power Systems Research: EnginLink™ , which provides information on engines, and OE Link™, a database of equipment manufacturers. PSR

Carol Turner is Senior Analyst, Global Operations, for Power Systems Research

2024-06-18

China Threatens EU, U.S. with Tariffs Up To 25%

Guy Youngs
Guy Youngs

Trade tensions have continually risen among China, the European Union, and the US in recent years, with much of the drama surrounding imported EVs, so 10 days after the Biden administration introduced a 100% tariff on several categories of Chinese goods, including EVs, China has threatened to retaliate with tariffs on its own vehicle imports.

The EU has also been included in this threat but while it is conducting a probe into China’s EV exports, it has placed this probe on a temporary halt pending EU’s elections

Source: Electrek: Read The Article

PSR Analysis: With China not having enough car carriers to export all the EVs it is manufacturing, it’s very hard to see the EU not following the tariff route, but the real question that arises is whether or not this will lead to a trade war. China produces so many EVs that it needs to export, it’s also hard to see how they can retaliate without widening the areas affected. PSR Top of Form

Guy Youngs is Forecast & Adoption Lead at Power Systems Research

Diesel Demand Hits 26-Year Low

US diesel demand plummeted to its lowest seasonal level in 26 years in Q1 2024. The production of distillate, the petroleum-based fuel that powers trucking, heating, and heavy industry, plunged to 3.67 million barrels per day in March (down from more 4.1 million barrels last year) according to monthly data from the US Energy Information Administration.

Even in diesel-loving Europe, the diesel engine is dying. Volvo, for example, recently built its last-ever diesel vehicle, and companies like Nissan, Hyundai, and Daimler (parent company of Mercedes-Benz and the Freightliner and Rizon truck brands) have also backed away from developing new internal combustion engines.

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North America and Europe MHCV Alternative Power Update

Chris Fisher
Chris Fisher

As the governments of Europe and North America (U.S. and Canada) continue to push for a transition from fossil fuel powered vehicles to zero-emission vehicles, a number of significant barriers to adoption will continue to hamper this initiative.  

Significant barriers to adoption of zero-emission vehicles include the total cost of vehicle ownership, a lack of charging and grid infrastructure, truck resale values and duty cycle issues.  The primary types of alternative propulsion that are in focus include Battery Electric, Hydrogen Fuel Cell and Hydrogen ICE engines and to a lesser degree, Natural Gas and Biodiesel ICE engines. The vast majority of the medium and heavy commercial vehicle industry support the transition to zero-emission vehicles but the short timeline for implementation is causing great concern throughout the industry.

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2024 Global Golf Cart Revenue To Hit $1.84 Billion

Michael Aistrup

Power Systems Research estimates the Global Golf Cart Market to be $1.84 billion in 2024 and expects this market to reach $2.81 billion by 2032, growing at a CAGR of 5.65% during the forecast period.

Market Demand Drivers. Theincreased popularity of the game of golf by senior citizens, women, and juniors has increased the demand for golf carts. The increased use of these eco-friendly electric vehicles by government and industry also has pushed demand.

  • Sustainability and Environmental Concerns. Governments, golf courses, and consumers increasingly are emphasizing the need for eco-friendly alternatives. Electric golf carts, with their lower emissions and reduced environmental impact, meet these concerns.
  • The solar golf cart segment is projected to experience rapid growth, primarily due to its eco-friendly nature and lower operating costs.
  • Popular golf destinations and resorts experienced an influx of tourists, and millions of new participants have started golfing for the first time are leading to higher demand for golf carts.
  • Increased participation. More than 2 million newcomers have been added to the industry for eight consecutive years between 2012 and 2019, with the number exceeding 3 million per year between 2020 and 2022.
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