BYD, KG Mobility to build S Korean battery pack plant
Major Chinese new energy vehicle and lithium-ion battery manufacturer BYD on 2 October agreed a deal with South Korean auto producer KG Mobility to jointly develop a battery pack plant and next-generation hybrid systems.
The battery packs will be installed in some of KG Mobility's electric vehicle (EV) models poised to be in mass production in the second half of 2024 before being expanded to more future models, according to KG Mobility, previously known as Ssangyong Motor. Production capacity, timelines and investment in the planned South Korean battery pack plant were undisclosed.
KG Mobility's total sales in October fell by 51.3pc from a year earlier to 6,421 units because of weaker domestic sales and consumer sentiment.
South Korea is planning to push export expansion projects in sectors such as EVs, secondary batteries and hydrogen on the back of a prolonged export downturn, the country's trade and industry ministry said in October.
The nation's manufacturing activity continued contracting in October, extending its streak to 16 consecutive months. South Korea's latest purchasing manager index (PMI), compiled by S&P Global, dipped slightly to 49.8 in October from 49.9 in September. A PMI reading above 50 points to an expansion in activity, while a reading below that level suggests a contraction.
South Korean Nonghyup Bank this month agreed to provide 1 trillion won ($757mn) of financial support through corporate loans and payment guarantees over the next three years to South Korean battery manufacturer SK On, which the producer said will strengthen its competitiveness.
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Indian state approves chip, EV manufacturing plants
Indian state approves chip, EV manufacturing plants
London, 6 September (Argus) — The Maharashtra state cabinet in India has approved three foreign investment manufacturing projects — a $1bn semiconductor plant and two battery electric vehicle (EV) and hybrid vehicle factories. The semiconductor chip plant, a joint venture between Israel-based Tower Semiconductor and Indian industrial conglomerate Adani Group, is planned to be built in two phases. The 587.63bn rupees ($7bn) first phase will have a production capacity of 40,000 wafers/month and the Rs251.84bn second phase will add another 40,000 wafers/month, the state's deputy chief minister, Devendra Fadnavis, announced. The facility, to be located outside Mumbai, will be the second semiconductor fabrication plant in the country. The project still needs approval from the central government and Ministry of Electronics and IT, which plans to revise its semiconductor incentives. The project is designed to capitalise on the Indian government's plans to establish a domestic semiconductor manufacturing supply chain, driven by strong local demand in the electronics, EV and manufacturing sectors. Earlier this week, the Indian cabinet approved a proposal from Kaynes Semicon to set up a chip assembly, testing and packaging plant in Gujarat. The Rs33bn plant will have a capacity to handle 6mn chips/d. The governments of India and Singapore on Thursday signed an agreement to co-operate on semiconductor industry development and supply chain resilience, with an eye to Singaporean companies investing in Indian production. The two automotive plants that were also approved by Maharashtra state will be built by Skoda Auto Volkswagen India and Toyota Kirloskar, which is a joint venture between Japan's Toyota Motor and local firm Kirloskar Systems. The Rs150bn Skoda facility in the city of Pune will produce battery electric and hybrid cars. The company already has plants in Pune and Chhatrapati Sambhaji Nagar (previously named Aurangabad), which produce 180,000 cars and 60,000 cars, respectively. The Rs212.73bn Toyota plant will be built in Chhatrapati Sambhaji Nagar and will manufacture battery EVs, hybrids, plug-in hybrids and fuel cell vehicles. The announcement comes after the company signed an initial agreement with the Government of Maharashtra in July to explore setting up a new manufacturing plant in the city. The company operates two automotive plants in Bidadi in the state of Karnataka with an annual installed capacity of 3.42mn vehicles/yr and plans to build a third plant in the town to start operations in 2026 with a capacity of 1mn units/yr. The new plants reflect Toyota Kirloskar's growing product portfolio at it expands into EV manufacturing, rising consumer demand and an increase in exports, the company said. By Nicole Willing Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Japan approves $2.4bn for EV battery projects
Japan approves $2.4bn for EV battery projects
Tokyo, 6 September (Argus) — The Japanese government has approved to fund a maximum of ¥347.9bn ($2.4bn) for electric vehicle (EV) battery investments, in a bid to build out 150 GWh/yr of domestic output capacity by 2030. A total of 12 projects will be subsidised, according to the ministry of trade and industry (Meti) on 6 September. This includes lithium-ion (Li-ion) battery cell production by a consortium of battery producer Panasonic and auto manufacturer Subaru ( see table ). Around ¥326bn will be allocated for Li-ion battery production, including lithium iron phosphate (LFP) batteries. Some ¥17bn for raw material production, such as electrolyte and ¥5bn for manufacturing equipment, will be financed, Meti said. The funding is part of Meti's wider battery strategy that aims to build out 150 GWh/yr of battery production capacity domestically by 2030. The projects being subsidised are expected to lift total capacity to 120 GWh/yr from 85 GWh/yr currently once they begin operations, a Meti official said. To achieve 150 GWh/yr target, the country needs to secure 100,000 t/yr of lithium, 90,000 t/yr of nickel, 150,000 t/yr of graphite, 20,000 t/yr of cobalt and 20,000 t/yr of manganese, according to Meti. The battery strategy is part of pricing policy across industries based on Japan's Green Transformation Initiative, a policy to promote decarbonisation. Japan by 2030 aims to set a battery pack price for EVs at ¥10,000/kWh or less to make EV prices competitive with gasoline cars, and for storage batteries for industrial facilities at ¥60,000/kWh. Domestic battery production will be an essential factor to meet those targets by reducing cost. Meti's battery strategy also aims to reduce foreign dependency for the battery supply chain, in line with the country's economic security law that designated batteries a critical resource in December 2022. By Yusuke Maekawa Japan EV battery projects with subsidy Project owner Product Capacity (GWh/yr) **** Project cost (¥bn) Government funds (¥bn) Expected year to start supplying Panasonic/Subaru lithium-ion battery cell 16.0 463.0 156.4 Aug '28 Panasonic/Mazda lithium-ion battery cell 6.5 83.3 28.3 July '25 Nissan LFP (lithium-iron phosphate) 5.0 153.3 55.7 July '28 Toyota/PPES*/PEVE** Next generation battery/ASSB*** 9/n.a 245.0 85.6 Nov '26 Nippon Shokubai Electrolyte 21.4 37.5 12.5 July '28 Toagosei Binder 142.0 3.8 1.3 Oct '26 artience/Toyocolor a) Conductive agents, b)carbon nano-tube a) for cathode 40, for anode 17, b) 120 8.8 2.9 a) Dec '27 (cathode), Sep '26 (anode), b) Jan '27 Kaga Explosion-proof cover cap 3.1 0.6 0.2 Oct '25 Ricoh/Seibu Giken Battery manufacturing equipment 3.0 4.7 2.3 Sep '27 Kyoto Seisakusho Battery manufacturing equipment 21.0 5.4 1.9 Jul '26 Soft Energy Controls Battery manufacturing equipment 18.0 0.8 0.4 Apr '25 Marui Sangyo Battery manufacturing equipment 8.0 0.8 0.4 Apr '26 * PEVE=Primearth EV Energy **PPES=Prime Planet Energy & Solutions *** All-solid-state-battery **** battery equivalent for raw material and battery manufacturing equipment Source: Meti Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
E-VAC secures $335mn for US permanent magnet plant
E-VAC secures $335mn for US permanent magnet plant
Houston, 5 September (Argus) — Battery technology manufacturer E-VAC Magnetics secured $335mn in funding to help construct its facility in South Carolina, where it plans on producing neodymium-iron-boron (NdFeB) permanent magnets starting in 2025. The non-recourse financing — announced Thursday — was obtained by US-based private equity firm Ara Partners, which owns E-VAC's German-based parent company Vacuumschmelze (VAC). The plant, which is scheduled to come on line in fall 2025, primarily will support several models of General Motors' (GM) line of electric vehicles (EV) over a 10-year period. GM and VAC entered into a binding supply agreement in September 2023, under which the latter agreed to build a manufacturing facility in North America. E-VAC will source rare earths and other raw materials from local sources, it has said. The company has received over $200mn from the US Defense Department and US Energy Department for the project, as the US seeks to reduce its reliance on China for critical components needed for defense and electrification applications. The company also signed a deal to recycle permanent magnets through Cyclic Materials, helping to create a circular supply chain for rare earth elements in North America. By Alex Nicoll Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Galan Lithium signs offtake agreement with China
Galan Lithium signs offtake agreement with China
London, 30 August (Argus) — Argentine lithium producer Galan Lithium has signed a non-binding agreement for supply of 23,000 t/yr of lithium carbonate equivalent (LCE) with Chinese refiner Chendu Chemphys. The material will come from Galan's Hombre Muerto West (HMW) project in northern Catamarca, Argentina. The shipments to China over a five-year period will be part of Galan's phase 1 production at HMW, and Chemphys will also provide Galan with $40mn to continue the project's development. "The high grade, low impurity lithium chloride samples Galan has been producing from the HMW pilot plant have been very well received by lithium converts, leading to this agreement with Chemphys," Galan managing director JP Vargas de la Vega said. Galan secured export permits in April for sale of its lithium chloride concentrate at HMW, and plans for phase 1 production of 5,400 t/yr by the first half of next year. The firm in November secured an offtake agreement with Swiss-based trading firm Glencore for up to 100pc of its lithium chloride concentrate in exchange for $70mn-100mn of project financing. Galan said this week "it has not received both an offtake and financing proposal" from the firm and "could no longer proceed with that option". China accounted for around 15pc of lithium mining in 2022 but 74pc of lithium carbonate production last year, according to the US Geological Survey, along with control over a series of other battery materials (see graph) . By Chris Welch Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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