FbMagazine
The Chinese EV Appetite Is To Benefit Both Domestic and Foreign Players
- A Major EV Win for the Biden Administration - April 12, 2021
- A Jam-Packed Week Ahead - April 12, 2021
- EV Updates - April 9, 2021
On Sunday, the two South Korean battery makers, LG Energy Solution and SK Innovation Co. reached a settlement that will allow two plants in Georgia to move forward with plans to produce lithium-ion batteries for Ford Motor (NYSE: F) and Volkswagen (OTC: VWAGY). The settlement was reached before the Biden administration’s deadline on Sunday to intervene and reverse the decision made by the U.S. International Trade Commission. This outcome is a major win for the administration which recently unveiled a sweeping infrastructure plan to boost its EV progress. Biden’s $2 trillion infrastructure plan includes $174 billion in EV spending, which is more than the amount proposed for spending on roads and bridges.
The deal
Back in February, the ITC ruled that SK Innovation had stolen trade secrets related to EV batteries from LG Energy Solutions and ordered the U.S. to block the company from importing supplies to build batteries. The companies agreed to drop litigation in both the U.S. and South Korea and not pursue further lawsuits for a decade. SK Innovation will also pay LG Energy Solution $1.8 billion in cash and royalties.
Not resolving the dispute would cause more harm than thousands of lost jobs in Georgia, it threatened the whole country’s progress in curbing climate change with its EV efforts. For now, electric vehicles make 2% of new auto sales but the Biden administration is determined to shift away from gas-powered engines. If no settlement was reached, the Biden administration may have had to overrule the ITC in order to allow SK Innovation to build the plant as otherwise, Volkswagen and Ford would have had to find new battery suppliers with diminished bargaining power which would have delayed new model releases and hampered their EV progress. But doing so would harm its relationship with LG Chem that has a joint venture with General Motors Co. (NYSE: GM), with at least one more planned with, along with its other major clients such as Tesla Inc. (NASDAQ: TSLA).
Joining forces with to build a strong EV supply chain
Jong Hyun Kim, CEO of LG Energy Solution, and Jun Kim, CEO of SK Innovation, said in a joint statement that the firms would “compete in an amicable way”. The two South Korean battery makers are dedicated to work together to support the Biden administration’s climate agenda and to develop a robust U.S. supply chain. The United States need a strong, diversified and resilient EV battery supply chain to create good-paying jobs and lay the groundwork for an EV future. The president’s EV proposal also involves installing at least 500,000 charging stations across the country within less than a decade, incentives for Americans to purchase EVs along with funding to equip factories with the new technology and take care of the domestic supply of materials.
This article is not a press release and is contributed by a verified independent journalist for IAMNewswire. It should not be construed as investment advice at any time please read the full disclosure. IAM Newswire does not hold any position in the mentioned companies. Press Releases – If you are looking for full Press release distribution contact: press@iamnewswire.com Contributors – IAM Newswire accepts pitches. If you’re interested in becoming an IAM journalist contact: contributors@iamnewswire.com
- A Major EV Win for the Biden Administration - April 12, 2021
- A Jam-Packed Week Ahead - April 12, 2021
- EV Updates - April 9, 2021
JPMorgan (NYSE: JPM), Goldman Sachs (NYSE: GS), Delta earnings (NYSE: DAL) along with Coinbase IPO are just some of this week’s main spotlights. Other companies set to report earnings include Bed Bath & Beyond (NASDAQ: BBBY), Wells Fargo & Company (NYSE: WFC), PepsiCo Inc (NASDAQ: PEP), and UnitedHealth Group International (NYSE: UNH).
Monday
Monday will be the calm before the economic data storm. The federal budget balance is poised to be the day’s main event.
Tuesday
On Tuesday, we will get a look into some economic data such as the consumer price index for March. The CPI Index rose 0.4% in February, marking an annual increase of 1.7%.
Wednesday
Wednesday is the day of earnings, including reports by JPMorgan, Goldman Sachs and Wells Fargo as well as Bed Bath & Beyond, all before the opening bell.
But, it is also the day of the initial public offering of the cryptocurrency exchange operator, Coinbase (NASDAQ: COIN). Coinbase was founded in 2012 as a platform to trade bitcoin. Today, it has 43 million users and serves 7,000 institutional customers. Its IPO was delayed due to an investigation from the Commodity Futures Trading Commission, after which the company agreed to pay $6.5 million to settle regulatory claims that it reported misleading information about its trading volumes. It did not admit to or deny the allegations.
Moderna Inc (NASDAQ: MRNA) will hold a virtual Vaccine Day for analysts and investors, where the company’s leadership will discuss its mRNA vaccines and key considerations for future developments.
Thursday
Besides economic reports, Thursday will also be a big earnings day as Bank of America Corporation (NYSE: BAC), BlackRock (NYSE: BLK), The Charles Schwab Corporation (NYSE: SCHW), Citigroup (NYSE: C), Delta Air Lines, JB Hunt Transportation Services Inc (NASDAQ: JBHT), PepsiCo, Rite Aid Corporation (NYSE: RAD), Truist Financial Corporation (NYSE: TFC), United Health Group, and US Bancorp are all set to report before the market open, while Alcoa Corporation (NYSE: AA) and PPG Industries Inc (NYSE: PPG) will report after the bell.
Friday
Before the opening bell, Ally Financial Inc (NYSE: ALLY), The Bank of New York Mellon (NYSE: BK), Citizens Financial Group Inc (NYSE: CFG), Kansas City Southern (NYSE: KSU), Morgan Stanley (NYSE: MS), PNC Financial Services (NYSE: PNC), and State Street Corporation (NYSE: STT) will report their earnings. But many eyes will be upon President Biden who will have his first meeting with a foreign leader since taking office. With Japan Prime Minister Yoshihide Suga, Biden is expected to discuss a new trade alliance to bolster semiconductor production as the world faces crippling chip shortages due to the coronavirus pandemic and the U.S. trade war with China.
Overall, a versatile and exciting week is ahead.
This article is not a press release and is contributed by a verified independent journalist for IAMNewswire. It should not be construed as investment advice at any time please read the full disclosure. IAM Newswire does not hold any position in the mentioned companies. Press Releases – If you are looking for full Press release distribution contact: press@iamnewswire.com Contributors – IAM Newswire accepts pitches. If you’re interested in becoming an IAM journalist contact: contributors@iamnewswire.com
- A Major EV Win for the Biden Administration - April 12, 2021
- A Jam-Packed Week Ahead - April 12, 2021
- EV Updates - April 9, 2021
President Biden is pushing hard to get more Americans to buy EVs in order to combat global warming and encourage domestic manufacturing with a $2 trillion infrastructure plan he is trying to sell to Congress that includes about $174 billion to boost EV sales and production, which is more than the president proposes spending on roads and bridges. The EV market is developing full speed ahead across the globe, with Europe and China being already ahead of the US in the race towards an all-electric future.
Peugeot Is Coming After Volkswagen and Tesla
As Stellantis N.V. (NYSE: STLA) came to life as Fiat Chrysler (NYSE: FCAU) and Groupe PSA joined forces, one of their subsidiary brands recently revealed a fully electric Peugeot 308 will arrive in 2023 to challenge Volkswagen’s (OTC: VWAGY) multi-billion euro gamble to challenge Tesla’s (NASDAQ: TSLA) electric car dominance, the ID.3. Despite initial software problems, VW’s first all-electric vehicle has been well received with the investment bank UBS declaring it to be a viable threat to Tesla, with a huge family of electric vehicles across the VW brand empire coming along in the near future.
The recent petit e-208, an all-electric version of the popular 208 hatchback made a great first impression with its blend of style, driving dynamics, gadgets and range. The e-208 is currently the quickest and most powerful 208 variant on sale and the upcoming e-308 could become Europe’s best-looking hatchback. Specifics regarding e-308 are rather scarce, besides the fact that it is in the works and that it’s going to debut in 2023.
The future of the U.S. EV market hangs in the balance
President Biden has until Sunday to intervene in a dispute between two major South Korean battery producers over the fate of lithium-ion battery factories in Georgia. His decision carries major implications for plans of US automakers to produce new EVs over the coming years. The outcome threatens Biden’s EV goals for the United States and the Democratic Party’s fragile success in the key state.
The battle of two South Korean Corporations
SK Innovation has built a large battery factory northeast of Atlanta, in the city of Commerce, with another factory alongside it being under construction, and a third in the works. But, earlier this year, SK said its operations in Georgia may be shut down due to a ruling by the U.S. International Trade Commission of its dispute with LG Chem. Despite a deep political division in the state, Democrats and Republicans have found common ground in trying to save the factories. The stakes are high as letting the ruling stand could damage the Democratic Party’s credibility in Georgia and hobble a key supplier in a domestic EV market already hungry for batteries. On the other hand, vetoing the decision would call into question the administration’s global efforts to advance intellectual property protections, which is a major priority from an economic perspective.
The Detroit battle lines are clearly drawn
For the needs of its electric pickup F-150 which is due next year, Ford has contracted with SK Innovation which has been accused of destroying evidence in a case alleging stolen trade secrets. SK threatened to withdraw its battery business from the U.S. altogether if Biden doesn’t overturn the decision, which would leave Ford Motor (NYSE: F) and Volkswagen with diminished bargaining power with remaining suppliers.
On the other end, General Motors Co. (NYSE: GM) has a joint venture with at least one more planned with LG Chem. In addition to GM, some of LG’s major clients include Tesla Inc. and Hyundai Motor Company (OTC: HYMTF).
A tough decision to make
Now it’s up to the Biden administration to decide whether to get involved. This situation illustrates the fragility of U.S. automakers’ battery supply chains as traditional automakers are investing heavily in their EV infrastructure but remain reliant on Asian suppliers to provide the energy to power their EVs. President Biden needs to find a way not to condone unfair trade practices but support policies that will support the United States in becoming a leader in the EV market while simultaneously reducing carbon emissions.
This article is not a press release and is contributed by a verified independent journalist for IAMNewswire. It should not be construed as investment advice at any time please read the full disclosure. IAM Newswire does not hold any position in the mentioned companies. Press Releases – If you are looking for full Press release distribution contact: press@iamnewswire.com Contributors – IAM Newswire accepts pitches. If you’re interested in becoming an IAM journalist contact: contributors@iamnewswire.com
- A Major EV Win for the Biden Administration - April 12, 2021
- A Jam-Packed Week Ahead - April 12, 2021
- EV Updates - April 9, 2021
