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Business

Amazon’s AWS to invest $35 bln in Virginia

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WASHINGTON, Jan 20 (Reuters) – Amazon.com Inc’s (AMZN.O) cloud services division said Friday it plans to invest another $35 billion by 2040 to expand data centers in Virginia.

Amazon Web Services (AWS) said the new investment will create 1,000 jobs. Virginia Republican Governor Glenn Youngkin said AWS will establish multiple data center campuses across Virginia.

In 2021, AWS said from 2011 to 2020 it had invested $35 billion in data centers located in northern Virginia and had 3,500 full time employees at its data centers in the state.

Pending approval by state lawmakers, Virginia is developing a new “Mega Data Center Incentive Program,” which would allow the company to receive up to a 15-year extension of Data Center Sales and Use tax exemptions on equipment and software.

AWS also will be eligible to receive a state grant of up to $140 million “for site and infrastructure improvements, workforce development, and other project-related costs.”

Amazon shares closed up 3.8% Friday.

Amazon in 2018 after a long contest announced northern Virginia would be home to its second headquarters known as “HQ2” and eventually employ more than 25,000 employees. As of April, Amazon said its headcount assigned to the site was around 5,000.

Youngkin has faced some criticism for withdrawing from a competition to attract a new Ford Motor (F.N) battery plant expected to be built with China’s Contemporary Amperex Technology Co Ltd (CATL) (300750.SZ), the world’s largest battery producer.

Youngkin defended his decision Friday, telling Bloomberg News that he looks “forward to bringing a great company there. It won’t be one that uses kind of a Trojan-horse relationship with the Chinese Communist Party in order to gain.”

A spokesperson for Youngkin has said that “while Ford is an iconic American company, it became clear that this proposal would serve as a front for the Chinese Communist party.”

Ford declined to comment on Youngkin’s decision to withdraw.

In July, Ford said it plans to localize 40 GWh of battery capacity in North America starting in 2026. It also announced CATL would provide battery packs for Mustang Mach-E models for North America starting in 2023 and would discuss cooperation for batteries in Ford vehicles around the world.

“Our talks with CATL continue – and we have nothing new to announce on either front,” Ford said.

Michigan is also a candidate for the Ford battery plant, sources said, and a decision could be made in the coming weeks.

Reporting by David Shepardson and Akash Sriram in Bengaluru; Editing by Aurora Ellis and Himani Sarkar

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German car giants and Asian battery kings: a match made in Hungary

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  • German, Chinese and S.Koreans head to Hungary
  • They dominate auto investment and subsidies
  • Orban’s Hungary keen to court foreign business

BERLIN/BUDAPEST, Dec 13 (Reuters) – German automakers and Asian battery suppliers are getting together in Hungary in a multi-billion-dollar marriage of convenience to drive their electric ambitions.

The companies are flocking to central Europe, where Viktor Orban’s government is defying Western wariness of China and offering generous benefits to host foreign operations and stake Hungary’s claim as a global centre for electric vehicles (EVs).

Investment in the Hungarian auto industry is being dominated by three countries – Germany, a champion carmaker, plus China and South Korea, EV battery leaders way ahead of European rivals.

Companies from those three countries have accounted for 29 out of the 31 cash subsidies handed out by Hungary for major investments in its auto and battery sector over the past decade, according to a Reuters analysis of government data that shows the scale of German, Chinese and Korean convergence there.

“Cathodes, anodes, separators, assembly lines, the full battery supply chain is here,” said Dirk Woelfer of the German-Hungarian Chamber of Commerce in Budapest. “This is a foot in the door to Europe.”

Recipients of such subsidies included the likes of German automakers BMW (BMWG.DE) and Mercedes-Benz (MBGn.DE), and battery makers such as China’s BYD and Korean rival Samsung SDI (006400.KS). The median subsidy level has been 15% of investment.

In total, Hungary has received over 14 billion euros ($15 billion) in foreign direct investment into its battery sector alone in the past six years, according to government figures.

Major investments are broadly classed as those worth over 5-10 million euros, varying with factors such as jobs created.

State incentives and the opportunity for automakers and battery suppliers to work next door to each other is proving a strong pull, according to interviews with about 20 industry players and consultants in Germany, Hungary, China and South Korea.

China’s CATL (300750.SZ), the world’s No. 1 EV battery maker, and Korean battery giants SK Innovation (096770.KS) and Samsung SDI, all told Reuters that the planned proximity to German carmakers was a key factor in their decisions to invest in Hungary, as well as being able to source separators and other components there.

CATL is investing $7.6 billion to build Europe’s largest battery plant in Hungary. This plant and the $2.1 billion BMW factory will both be sited in the city of Debrecen, which is attracting an ecosystem of suppliers, ranging from makers of brakes and battery cathodes to industrial machinery.

Mercedes-Benz is converting its factory in Kecskemet to produce electric cars, while Volkswagen’s (VOWG_p.DE) Audi is making cars and electric motors in Gyor.

Such big business could present a boon for Prime Minister Orban’s government as the country faces its toughest economic environment in more than a decade, with inflation running above 20%, the economy slowing and EU funds in limbo.

Yet the Hungarian EVs project also faces stiff obstacles, according to many of the industry insiders.

One key concern is the huge demands that massive battery plants will place on the electricity grid, which needs to shift away from fossil fuels towards renewables to meet the net-zero emissions targets of much of the auto industry, the people said.

A lack of specialised workers in Hungary to work in battery cell manufacturing could also drag on capacity, they added.

HIPA, the Hungarian Foreign Ministry agency responsible for attracting investments in areas ranging from batteries and cars to logistics, did not respond to Reuters queries about the EV industry.

‘CHINA’S MADE GOOD STEPS’

Hungary’s welcome to Asian battery makers might jar with concerns expressed by Brussels and Berlin about the perils of Europe becoming too dependent on China and other foreign powers, particularly in technologies central to the green transition.

Still, for now, the need to ramp up EV output leaves the European auto industry little choice but to source from Asian players, said Csaba Kilian of Hungary’s automotive association.

“I absolutely agree that European manufacturers should have their own sources … but it’s a competition, and China has made good steps,” he added. “There is a learning curve.”

Europe should have a EV battery manufacturing capacity of 1,200 gigawatt hours (GWh) by 2031 if current plans come to fruition, outstripping expected demand of 875 GWh, Benchmark Mineral Intelligence (BMI) estimates. But of that 1,200 GWh, 44% will be provided by Asian companies with factories in Europe, ahead of homegrown firms on 43% and U.S. pioneer Tesla (TSLA.O) with 13%, according to a Reuters calculation based on BMI data.

The prospects for developing a battery sector in Germany have been set back by record energy there as a result of the loss of Russian gas, according to autos consultants at Boston Consulting Group and Berylls Strategy Advisors.

Hungary offers a comparatively stable energy system bolstered by nuclear energy, as well as high subsidies and Europe’s lowest corporate tax rate of 9%.

The entire battery supply chain has come to the country, said Ilka von Dalwigk, policy manager at the European Battery Alliance, launched by the European Union in 2017 to kick-start a homegrown industry.

“Everything is located there. When we look at the forecast for 2025 and 2030, it looks like it will have one of the largest production capacities in Europe,” she added.

“It might very well be that Hungary is in fact the next big battery production cluster in Europe.”

Asked about concerns about reliance on Asia for technology, an EU official said the bloc – which must approve member state subsidies to investors – had a system in place to cooperate and exchange information on investments from non-EU countries that may affect security.

The European Commission is currently in talks with Hungary over the size of the subsidy the country will offer to CATL for building the Debrecen plant, the official added.

‘SENDING THE WRONG SIGNAL’

For some Western companies, setting up shop in Hungary is a tough decision.

German autos supplier Schaeffler said it was on the verge of setting up its primary electric motor plant in Hungary rather than Germany in August because of the appeal of Hungary’s incentives, but decided on Germany for fear of sending “the wrong signal” to Germans who fear a loss of jobs to overseas.

Other industry players expressed a range of concerns over potential pitfalls for the burgeoning Hungarian auto industry as factories ramped up, including the power grid issue.

Batteries, in particular, are highly energy-intensive parts of EVs to produce, requiring high amounts of power for the drying the materials and machine operation.

Hungary’s sources of energy in 2021 comprised 80% fossil fuels, 14.5% nuclear and 3.6% solar, according to a Reuters calculation of data from the BP Statistical Review of World Energy.

The mix spells trouble for carmakers who will soon need to showcase carbon-free credentials across their supply chains under new German and European legislation.

Hungarian Foreign Minister Peter Szijjarto met senior executives from BMW and auto suppliers including Schaeffler and Knorr-Bremse in Munich last month, ahead of the German carmaker announcing it was beefing up its investment in the country.

Topics discussed included plans to improve logistics infrastructure in Hungary and increasing the amount of renewables energy used for the power grid, according to one of the companies that attended.

When BMW first announced its plan to build its Debrecen plant, in 2018, the government committed to spending around 135 billion forints on improving local infrastructure, according to calculations by the German-Hungarian Chamber of Commerce.

On the battery side, CATL told Reuters it was considering developing solar power with local partners in Hungary.

Despite the risks, Alexander Timmer, a partner at Munich-based consultants Berylls Strategy Advisors who has worked on several autos and battery projects in Hungary, said the country presented an appealing package.

“The combination of cost advantages, state subsidies, and closeness to automakers’ plants makes Hungary increasingly attractive to battery producers, he added.

($1 = 397.54 forints; $1 = 0.9483 euros)

Reporting by Victoria Waldersee in Berlin, Gergely Szakacs in Budapest; Additional reporting by Heekyong Yang, Zhang Yan; Editing by Pravin Char

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Business

Biden awards $2.8 billion to boost U.S. minerals output for EV batteries

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WASHINGTON, Oct 19 (Reuters) – The Biden administration said on Wednesday it is awarding $2.8 billion in grants to boost U.S. production of electric vehicle batteries and the minerals used to build them, part of a bid to wean the country off supplies from China.

Albemarle Corp (ALB.N) is among the 20 manufacturing and processing companies receiving U.S. Energy Department grants to domestically mine lithium, graphite and nickel, build the first large-scale U.S. lithium processing facility, construct facilities to build cathodes and other battery parts, and expand battery recycling.

The grants, which are going to projects across at least 12 states, mark the latest push by the Biden administration to help reduce the country’s dependence on China and other nations for the building blocks of the green energy revolution.

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“As the world transitions from a fossil fuel to a clean energy powered economy, we cannot trade dependence on oil from autocrats like (Russian President Vladimir) Putin to dependence on critical minerals from China,” said a senior administration official briefing reporters on the program.

The funding recipients, first reported by Reuters, were chosen by a White House steering committee and coordinated by the Department of Energy with support from the Interior Department.

The funds are being doled out to a range of companies, some of which could self-fund projects and others that will see the grants as a financial lifeline to further expand their U.S. plans. The funding, though, does nothing to alleviate permitting challenges faced by some in the mining industry.

Albemarle is set to receive $149.7 million to build a facility in North Carolina to lightly process rock containing lithium from a mine it is trying to reopen. That facility would then feed a separate plant somewhere in the U.S. Southeast that the company said in June would produce as much lithium for EV batteries as the entire company produces today.

Albemarle, which also produces lithium in Australia and Chile, said the grant “increases the speed of lithium processing and reduces greenhouse gas emissions from long-distance transportation of raw minerals.”

Piedmont Lithium Inc (PLL.O) is receiving $141.7 million to build its own lithium processing facility in Tennessee, where the company will initially process the metal sourced from Quebec and Ghana. Piedmont’s plans to build a lithium mine in North Carolina have faced strong opposition.

Shares of Piedmont rose 7.5% after Reuters broke the news of its funding award earlier on Wednesday. Piedmont did not immediately respond to a request for comment.

Talon Metals Corp (TLO.TO) will receive $114.8 million to build a processing plant in North Dakota in a strategy shift for the company, which has a nickel supply deal with Tesla Inc (TSLA.O). Talon now aims to extract rock from its planned underground mine in Minnesota and ship it to a North Dakota processing facility that will be funded in part by the grant.

Talon said the grants are “a clear recognition that production of domestic nickel and other battery minerals is a national priority.”

Other grants include $316.2 million to privately-held Ascend Elements to build a battery parts plant, $50 million to privately-held Lilac Solutions Inc for a demonstration plant for so-called direct lithium extraction technologies, $75 million to privately-held Cirba Solutions to expand an Ohio battery recycling plant, and $219.8 million to Syrah Technologies LLC, a subsidiary of Syrah Resources Ltd (SYR.AX), to expand a graphite processing plant in Louisiana.

BIDEN’S GOAL

By 2030, President Joe Biden wants 50% of all new vehicles sold in the United States to be electric or plug-in hybrid electric models along with 500,000 new EV charging stations. He has not endorsed the phasing-out of new gasoline-powered vehicle sales by 2030.

Legislation Biden signed in August sets new strict battery component and sourcing requirements for $7,500 consumer EV tax credits. A separate $1 trillion infrastructure law signed in November 2021 allocates $7 billion to ensure U.S. manufacturers can access critical minerals and other necessary components to manufacture the batteries. The announcement on Wednesday was linked to that 2021 legislation.

The White House said in a fact sheet that the United States and allies do not produce enough of the critical minerals and materials used in EV batteries.

“China currently controls much of the critical mineral supply chain and the lack of mining, processing, and recycling capacity in the U.S. could hinder electric vehicle development and adoption, leaving the U.S. dependent on unreliable foreign supply chains,” the White House said.

In March, Biden invoked the Defense Production Act to support the production and processing of minerals and materials used for EV batteries.

The White House is also launching an effort, dubbed the American Battery Material Initiative, to strengthen critical mineral supply chains as automakers race to expand U.S. electric vehicle and battery production.

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Reporting by David Shepardson in Washington and Ernest Scheyder in Houston; Additional reporting by Nandita Bose; Editing by Bernadette Baum, Matthew Lewis and Paul Simao

Our Standards: The Thomson Reuters Trust Principles.

Ernest Scheyder

Thomson Reuters

Covers the future of energy and transportation including electric vehicle and battery technology, with a focus on lithium, copper, cobalt, rare earths and other minerals, politics, policy, etc. Previously covered the oil and natural gas, including a stint living in North Dakota’s Bakken shale oil patch.

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Business

Honda Motor, LG Energy to build $4.4 bln U.S. EV battery plant

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TOKYO/WASHINGTON, Aug 29 (Reuters) – Japan’s Honda Motor Co (7267.T) will build a new $4.4 billion lithium-ion battery plant for electric vehicles in the United States with Korean battery supplier LG Energy Solution Ltd (373220.KS), the two companies said on Monday.

Battery makers are looking to increase production in the U.S. where a shift toward electric vehicles (EV) could increase as the country implements stricter regulation and tightens tax credit eligibility.

The location of the plant has not been finalised, the companies said, but two people briefed on the matter confirmed reports Honda is seriously considering Ohio, where Honda’s main U.S. factory is located.

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The companies aim for annual production capacity of approximately 40 GWh with the batteries supplied exclusively to Honda facilities in North America to power Honda and Acura EV models.

The pair are expected to establish a joint venture before building the plant, with the start of construction planned for early 2023 and mass-production by the end of 2025.

Ohio Governor Mike DeWine said his administration is working with Honda and LG “to ensure that they choose Ohio for this new electric battery plant.” The sources briefed on the matter said an announcement on the location could come in weeks.

The U.S. government has been pushing policies designed to bring more battery and EV manufacturing into the country.

President Joe Biden signed a $430 billion climate, health care and tax bill this month that would render electric vehicles assembled outside North America ineligible for tax credits. read more

The Honda Motor logo is pictured at the 43rd Bangkok International Motor Show, in Bangkok, Thailand, March 22, 2022. REUTERS/Athit Perawongmetha

White House Deputy National Climate Advisor Ali Zaidi praised the Honda LG “massive investment” that he said was catalyzed by climate and infrastructure legislation.

U.S. Energy Secretary Jennifer Granholm said the administration was bringing “back the domestic manufacturing of batteries to provide Americans with good-paying jobs that will power the EV revolution.”

California announced a plan last week requiring all new vehicles sold in the state by 2035 to be either electric or plug-in electric hybrids. read more

The two companies said a combination of strong local electric vehicle production and the timely supply of batteries would put them “in the best position to target the rapidly-growing North American EV market.”

LG Energy Solution, which is mainly engaged in the development of lithium-ion battery materials and next-generation batteries, also supplies EV batteries and has signed joint-venture agreements with General Motors (GM.N), Hyundai Motor Co (005380.KS) and Stellantis (STLA.MI). read more

In July, Panasonic Energy Co, a unit of tech conglomerate Panasonic Holdings Corp (6752.T) and a major Tesla Inc (TSLA.O) supplier, said it had selected Kansas as the site for a new battery plant with investment of up to $4 billion. read more

Earlier this year, Honda laid out a target to roll out 30 EV models globally and produce about 2 million EVs a year by 2030. read more

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Reporting by Satoshi Sugiyama and Heekyong Yang in Seoul and David Shepardson in Washington; Editing by Rashmi Aich Krishna Chandra Eluri, Kirsten Donovan and Chris Reese

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Business

Elon Musk: focused on getting self-driving Teslas in wide release by year-end

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STAVANGER, Norway, Aug 29 (Reuters) – Tesla (TSLA.O) chief Elon Musk said on Monday he aimed to get the electric auto maker’s self-driving technology ready by year-end and hopes it could be in wide release in the United States and possibly in Europe, depending on regulatory approval.

Speaking at an energy conference in Norway, Musk said his attention was currently focused on his SpaceX Starship spacecraft and self-driving Tesla electric cars.

“The two technologies I am focused on, trying to ideally get done before the end of the year, are getting our Starship into orbit … and then having Tesla cars to be able to do self-driving.

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“Have self-driving in wide release at least in the U.S., and … potentially in Europe, depending on regulatory approval,” Musk told the audience.

OIL AND GAS NEEDED

Earlier, Musk said the world must continue to extract oil and gas in order to sustain civilisation, while also developing sustainable sources of energy.

“Realistically I think we need to use oil and gas in the short term, because otherwise civilisation will crumble,” Musk told reporters on the sidelines of the conference.

Asked if Norway should continue to drill for oil and gas, Musk said: “I think some additional exploration is warranted at this time.”

“One of the biggest challenges the world has ever faced is the transition to sustainable energy and to a sustainable economy,” he said. “That will take some decades to complete.”

He said offshore wind power generation in the North Sea, combined with stationary battery packs, could become a key source of energy. “It could provide a strong, sustainable energy source in winter,” he said.

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Additional reporting by Terje Solsvik, editing by Gwladys Fouche, Jan Harvey and Louise Heavens

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World

China’s scorching southwest extends power curbs as drought, heatwave continue

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  • China announces 11th consecutive heat ‘red alert’
  • Sichuan extends industrial power use curbs until Aug. 25
  • Chongqing cuts working hours of commercial venues
  • Shortages could affect Tesla

SHANGHAI, Aug 22 (Reuters) – China’s scorched southwestern regions extended curbs on power consumption on Monday as they deal with dwindling hydropower output and surging household electricity demand during a long drought and heatwave.

State weather forecasters issued a heat “red alert” for the 11th consecutive day on Monday, as extreme weather continues to play havoc with power supplies and damage crops. They also raised the national drought alert to “orange” – the second-highest level.

The drought has already “severely affected” mid-season rice and summer corn in some southern regions, the ministry of agriculture said on Sunday.

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The National Meteorological Center said as many as 62 weather stations, from Sichuan in the southwest to Fujian on the southeastern coast, saw record temperatures on Sunday. The situation could improve starting Wednesday as a cold front moves into China via Xinjiang.

The region of Chongqing, which hit temperatures of 45 degrees Celsius (113 degrees Fahrenheit) late last week, announced that opening hours at more than 500 malls and other commercial venues would be shortened starting Monday to ease power demand.

Malls on the list contacted by Reuters on Monday confirmed they had received the government notice and would abide by the rules. Two hotels on the list said they were still operating normally but would restrict air conditioner use.

In neighbouring Sichuan province, a major hydropower generator, authorities also extended existing curbs on industrial power consumers until Thursday, financial news service Caixin said on Sunday. Power generation in Sichuan is at just half the normal level after a massive decline in water levels.

Caixin cited battery industry firms as saying that industrial power users in the cities of Yibin and Suining had been told to remain closed until Thursday.

Sichuan – a major power supplier to the rest of the country – has recently put a new coal storage base into operation to make sure its thermal plants can operate without disruption.

However, around 80% of its installed capacity is hydropower, making it especially vulnerable to fluctuations in water supplies.

People walk on a dried-up bed of a reservoir, amid hot temperatures, while many regions from southwest to east of the country along the Yangtze river have been experiencing weeks of record-breaking heatwave in Changxing, Zhejiang province, China, August 20, 2022. REUTERS/Aly Song

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Several companies confirmed on Monday that they were restricting output because of extended power supply curbs. Pesticide producer Lier Chemical Co Ltd (002258.SZ) confirmed in on Monday that restrictions would continue until Thursday.

JinkoSolar (JKS.N), a major solar power equipment manufacturer, said its Sichuan manufacturing facilities have been halted as a result of power shortages, adding that it was “uncertain” how long the measures would last.

Toyota Motor Corp (7203.T) gradually resumed operations at its Sichuan plant in China on Monday using a power generator after suspending operations last week, the company’s spokesperson said.

Several plants in Sichuan and Chongqing, including those of top battery maker CATL (300750.SZ) and the electric vehicle giant BYD (002594.SZ), have only been able to partially operate in recent weeks because of power shortages.

Sources familiar with the matter said CATL’s Yibin plant makes battery cells for Tesla (TSLA.O), and there were concerns that disruptions could eventually affect the U.S. automaker, though production at its Shanghai plant remains unchanged.

Shanghai, criticised on China’s Twitter-like Weibo for its use of electricity generated in Sichuan, imposed its own consumption restrictions on Monday, turning off decorative lighting on the riverside Bund area and parts of the financial centre of Lujiazui for two days.

Firms will be encouraged to “stagger” power consumption to reduce peak loads, and some construction projects will be suspended, the official Shanghai Daily said.

Important agricultural regions have been warning of the impact on crops, with Henan province saying more than a million hectares of land have been affected by drought so far.

About 2.2 million hectares across the Yangtze basin have been affected, according to the Ministry of Water Resources.

Poyang Lake, located in one of the Yangtze river’s flood plains and described as China’s “kidney” because of the role it plays in regulating water supplies, is now 67% smaller than the average over the last 10 years, state broadcaster CCTV said.

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Reporting by David Stanway and Zhang Yan in Shanghai, Martin Quin Pollard in Beijing; Additional reporting by the Beijing newsroom; Editing by Kim Coghill, Gerry Doyle and Susan Fenton

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Business

Ford announces series of deals to accelerate EV push

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Ford CEO Jim Farley attends the official launch of the all-new Ford F-150 Lightning electric pickup truck at the Ford Rouge Electric Vehicle Center in Dearborn, Michigan, U.S. April 26, 2022. REUTERS/Rebecca Cook/File Photo

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DETROIT, July 21 (Reuters) – Ford Motor Co (F.N) on Thursday announced a series of deals to accelerate its shift to electric vehicles, including sourcing battery capacity and raw materials from such companies as Chinese battery maker CATL (300750.SZ) and Australian mining giant Rio Tinto (RIO.AX).

The deals are part of Ford’s push to have its annual EV production rate globally reach 600,000 vehicles by late 2023 and more than 2 million by the end of 2026. Ford said it expects a compound annual growth rate for EVs to top 90% through 2026, more than doubling the forecast industry growth rate.

“We are putting the industrial system in place to scale quickly,” Ford Chief Executive Jim Farley said in a statement.

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In March, Ford boosted its planned spending on EVs through 2026 to $50 billion from its prior target of $30 billion, and reorganized its operations into separate units focused on EVs and gasoline-powered vehicles with Ford Model e and Ford Blue, respectively. read more

The Dearborn, Michigan-based company also said at the time that its EV business would not be profitable until the next-generation models begin production in 2025.

As part of its push to boost capacity, Ford said it is adding lithium iron phosphate (LFP) cell chemistry for EV batteries to its portfolio, alongside nickel cobalt manganese (NCM). Ford said it has secured all of the 60 gigawatt hours (GWh) of cell capacity needed to support the 600,000 run rate.

The U.S. automaker said CATL will provide full LFP battery packs for the Mustang Mach-E crossovers for North America starting next year as well as the F-150 Lightning pickups in early 2024.

The company is also working with LG Energy Solution and its long-time battery partner SK Innovation.(096770.KS)

Ford said it has now sourced about 70% of the battery cell capacity it needs to achieve its annual production rate of more than 2 million by late 2026.

To support the battery cell deals, Ford said it is direct sourcing battery cell raw materials as well, announcing deals to acquire most of the nickel needed through 2026 and beyond through agreements with Vale SA’s units in Canada and Indonesia, China’s Huayou Cobalt (603799.SS) and BHP .

It has also locked in lithium contracts through agreements with Rio Tinto, exploring a “significant” lithium off-take agreement from the mining company’s Rincon project in Argentina, Ford said. That is part of a multi-metal agreement that leverages Rio Tinto’s aluminum business and includes a potential opportunity on copper.

Ford announced other battery material deals. It signed a letter of intent with EcoPro BM and SK On to establish a cathode production plant in North America, an offtake agreement for ioneer Ltd (INR.AX) to supply lithium carbonate from Nevada beyond 2025, an agreement with Compass Minerals for lithium hydroxide and lithium carbonate from Utah, and an agreement for Syrah Resources(SYR.AX) and SK On for natural graphite from Louisiana.

The drive to the 600,000 EV run rate by late 2023 includes 270,000 Mustang Mach-E crossovers, 150,000 F-150 Lightning pickups, 150,000 Transit vans and 30,000 units of a new SUV for Europe whose production will significantly increase in 2024.

(This story corrects mention to Rio Tinto’s aluminum business, not Ford’s in paragraph 11)

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Reporting by Ben Klayman in Detroit; Editing by Bernadette Baum

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Yellen vows tough U.S. measures against countries abusing economic order

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U.S. Treasury Secretary Janet Yellen speaks during a news conference, ahead of the G20 Finance Ministers and Central Bank Governors Meeting, in Nusa Dua, Bali, Indonesia, July 14, 2022. Made Nagi/Pool via REUTERS

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SEOUL, July 19 (Reuters) – The United States will impose harsh consequences on countries that break the international economic order, Treasury Secretary Janet Yellen said on Tuesday.

“Economic integration has been weaponised by Russia,” she said, calling for all responsible countries to unite in opposition to Russia’s war in Ukraine.

The United States is pushing for increased trade ties with South Korea and other trusted allies to improve the resilience of supply chains, and avert possible manipulation by geopolitical rivals, Yellen told Reuters on Monday. read more

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Yellen said in remarks prepared for the event she was heartened by conversations with Korean counterparts on a proposed cap on the price of Russian oil.

Yellen has said she will discuss the oil price cap proposal with top officials in Seoul.

On Tuesday morning, Yellen was hosted by LG Chem (051910.KS) CEO Hak Cheol Shin in a tour of LG facilities in Seoul.

Yellen, an avid collector of rocks, listened attentively as Shin explained the process of building electric vehicles, including the need for lithium.

LG Chem, besides being the parent company of electric vehicle battery maker LG Energy Solution (373220.KS), also has battery materials and petrochemical businesses.

Yellen is in South Korea on the final leg of her 11-day visit to the Indo-Pacific region. read more

(The story is refiled to remove repeated sentence)

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Reporting by Andrea Shalal; Writing by Joyce Lee; Editing by Himani Sarkar and Stephen Coates

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Hyundai Motor launches first electric sedan, taking on Tesla

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SEOUL, July 14 (Reuters) – Hyundai Motor Co (005380.KS) on Thursday launched its first electric sedan, Ioniq 6, which the South Korean automaker is betting will help it grab a bigger share of the electric vehicle (EV) market dominated by Tesla Inc .

The Ioniq 6 is one of more than 31 electric models that Hyundai Motor Group – including Hyundai Motor, its sister company Kia Corp (000270.KS) and premium brand Genesis – plans to introduce through 2030 to secure a projected 12% of the global EV market.

Hyundai’s sedan will expand its EV range beyond its current crossovers and SUVs to compete head-to-head against Tesla’s best-selling Model 3 sedan.

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Hyundai and Kia were already the second-biggest EV shippers globally excluding China in January to May this year, with a combined 13.5% market share that was second only to Tesla at 22%, according to industry tracker SNE Research.

The Ioniq 6 will be priced in the range of 55 million won ($41,949.51) to 65 million won for the South Korean market.

“The Ioniq 6 will be able to compete with Tesla in the volume EV sedan sector, considering its competitive pricing and long driving range,” said Lee Jae-il, an analyst at Eugene Investment & Securities.

The Ioniq 6 could leverage its pricing in the EV sedan market because Tesla has increased prices several times, he added.

The Hyundai electric sedan will have a driving range of about 610 kilometres (380 miles), around 30% more than the Ioniq 5 crossover, Hyundai said.

“We are using the same (battery) cell chemistry but … we maximised the amount of batteries per each pack, enhancing energy density significantly,” said Kim Yong Wha, an executive vice president at Hyundai.

It will come in two battery pack options – 53-kilowatt per hour (kWh) and 77.4 kWh – and will begin production at its Asan plant in South Korea later this year, Hyundai said.

The Ioniq 6 will be available in South Korea this year and the U.S. market launch is expected in the first quarter of next year, it added.

Hyundai said the Ioniq 6 launched this year would source batteries from SK Innovation’s (096770.KS) SK On and LG Energy Solution’s (373220.KS) batteries will be used from next year.

The launch comes after Hyundai announced its plans to build dedicated EV plants both at home and the United States, where the Ioniq 5 and Kia’s EV 6 SUV together became the second-best selling EVs after Tesla cars and ahead of Ford Motor Co’s (000270.KS) Mustang Mach-E.

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Reporting by Heekyong Yang; Editing by Jamie Freed

Our Standards: The Thomson Reuters Trust Principles.

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Hyundai Motor Group to invest more than $10 billion in U.S. up to 2025

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SEOUL, May 22 (Reuters) – Hyundai Motor Group said on Sunday it would invest an additional $5 billion in the United States by 2025 to strengthen collaboration with U.S. firms in advanced technology.

The investments, announced during a visit to Seoul by President Joe Biden, are for robotics, urban air mobility, autonomous driving and artificial intelligence, the group said.

Hyundai Motor Group, which houses Hyundai Motor Co (005380.KS) and Kia Corp (000270.KS), on Friday announced plans to invest $5.5 billion in Georgia to build electric vehicle (EV) and battery facilities. read more

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Hyundai’s new EV and battery manufacturing facilities will be based in the southern “right to work” state, where labour unions are less prevalent and cannot require workers to join.

Biden, a Democrat, has described himself as the most pro-union president in history. But the deal, announced by Georgia’s Republican governor, showed the compromises the president may have to make as he woos investment overseas.

“Hyundai and any company investing in the United States would benefit greatly from entering into partnerships with some of the most highly skilled, dedicated, and engaged workers in the world, anywhere you can find; and that is American union members,” Biden said.

“Every venture to manufacture electric vehicles and electric vehicle batteries would be made stronger by a collective bargaining relationship with our unions.”

Hyundai Motor Group Executive Chair Euisun Chung did not comment on U.S. unions.

The new investment brings its planned U.S. total through 2025 to about $10 billion, above the $7.4 billion it announced last year.

The world’s third-biggest automaker by vehicles sales did not say where in the United States the additional $5 billion would be invested.

The auto group said on Wednesday it would invest 21 trillion won ($16 billion) through 2030 to expand its EV business in South Korea. read more

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Reporting by Trevor Hunnicutt, Heekyong Yang and Jack Kim; Editing by Bradley Perrett and Lisa Shumaker

Our Standards: The Thomson Reuters Trust Principles.

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