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Korea To Increase EV Battery Material Production
FAR EAST: SOUTH KOREA REPORT
Akihiro Komuro Korean materials giants are rushing to increase production of battery materials for EVs. Lotte Chemical plans to invest 160 billion yen to build plants for electrolytes and other materials in Korea and the U.S. LG Chem and POSCO have also announced plans to increase production. The three major Korean battery manufacturers, including LG, have active investment plans, but they are lagging their Chinese counterparts in the upstream area of battery materials. Materials companies are also increasing their supply capacity to compete with the Chinese.
Lotte Chemical, a major petrochemical company, will build a new plant for organic solvents for electrolytes in its own plant. The company will build a new factory with a total investment of 602 billion won, aiming for production by the end of 2023. The company is also considering building a plant related to electrolyte and cathode materials in Louisiana, U.S. It has begun coordination with local governments and other related parties in anticipation of starting production in 2025. The investment is expected to be in the order of 100 billion yen.
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Thai Incentive Program to Promote EVs, Starting in 2022
SOUTHEAST ASIA: THAILAND REPORT
The Thai government plans to introduce an incentive program to promote EVs starting in 2022. The program will focus on providing subsidies to lower sales prices and reducing excise and import taxes. Automakers taking advantage of the program will be required to produce EVs locally from 2024 onward.
According to local media, the subsidy is 70,000 to 150,000 baht per vehicle, depending on the model and battery capacity. The excise tax on purchases will be reduced from the current 8% to 2%. Import duties will be reduced by 20-40% depending on battery capacity and sales price. The current maximum tariff rate is 80%, but the trade agreement will impose no tariff on Chinese-made products and 20% on Japanese-made products. Japanese-made products are also expected to be tariff-free if they meet the conditions. The current sales prices of imported cars vary from about 1 million baht for EVs from China’s SAIC Motor Group and Great Wall Motor to about 1.5 million baht for Nissan Motor’s LEAF at campaign prices.
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Yanmar Makes Major Battery Buy
FAR EAST: JAPAN REPORT
Yanmar Holdings Co. Ltd. announced it has acquired a majority share in ELEO Technologies B.V., a battery technology company based in Helmond, the Netherlands. By integrating ELEO’s advanced, scalable, and modular battery technology, Yanmar said it will further its electrified powertrain capabilities with customized solutions for off-road applications.
After joining the Yanmar Group as part of Yanmar Power Technology Co., Ltd., ELEO will continue to operate as a stand-alone entity under its own brand at its current location in Helmond, the Netherlands.
Founded in 2017, ELEO Technologies develops and produces advanced modular battery packs which are differentiated by their proprietary battery management system (BMS) and thermal management technologies. The company is near completion with a new advanced production facility that will increase its annual battery production capacity to 500 MWh, equivalent to approximately 10,000 battery packs.
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Five Year Plan Encourages Development of LNG Trucks and Ships
CHINA REPORT
Jack Hao “By 2025, the national gas storage capacity of intensive layout will reach 55 billion ~ 60 billion cubic meters, accounting for about 13% of natural gas consumption. Build a green and low-carbon transportation system, optimize and adjust the transportation structure, vigorously develop multi-modal transport, promote the medium and long-distance transportation of bulk goods “from rail to water”, encourage the use of clean fuels such as LNG in the field of heavy-duty trucks and ships, and strengthen the guarantee of clean energy supply in the transportation industry. It is emphasized that the LNG storage and transportation system in Bohai Rim region, Yangtze River Delta region and Guangdong Hong Kong Macao Bay area should be continuously improved, and the core is the construction of LNG terminal.”
Source: NDRC Read The Article
PSR Analysis. China’s LNG import volume in 2022 is expected to surpass Japan and become the world’s largest LNG importer. At the same time, China has built 22 LNG terminals. There are more than 200 LNG manufacturers in China, with an annual capacity of about 30 million tons.
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Yanmar Acquires Fast Growing Battery Technology Firm
EUROPE REPORT
Natasa Mulahalilovic Yanmar Holdings Co. Ltd, the multi-billion dollar multinational company headquartered in Osaka, Japan, has acquired a majority of shares of a young and fast-growing ELEO Technologies B.V. from theNetherlands, this month. The acquisition has been completed through European’s subsidy, Yanmar B.V. An earlier investor, Lumipol Group, has entirely exited the company.
As a part of Yanmar Power Technology Co, Ltd, Eleo will continue operating as an independent entity under its existing brand and with production located in their current site in Helmond, the Netherlands.
ELEO Technologies B.V. was founded in 2017 to design and produce innovative modular electric batteries systems for use in marine, industrial machine, e-mobility, commercial vehicles or specialized recreational product applications.
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DATAPOINT: US Lawn & Garden Tractors, 2022 Production Estimate, 709,700 Units
709,700 units is the estimate by Power Systems Research of the number of Lawn & Garden Tractors to be produced in the United States during 2022.
This 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.
Market Share: With 39% of total units produced, Husqvarna leads in production of Lawn & Garden Tractors in North America. In second position, with combined plant totals, is MTD with 33.5%; third, also with combined plant totals, is Deere & Co. with 23.5%.
Trends: In 2021 production of Lawn & Garden Tractors in North America (US) increased 4.5% over 2020 to 683,250 units. Production in 2022 is expected to reach 709,700 units, a gain of 4.5%, compared to 2021. The forecasted gain is driven by the demand for new fuel-efficient models in the market along with the demand for new equipment.
Production has been slowed somewhat by the temporary lull in production of the Craftsman line, the saturation of new products in the market, and the unfavorable mowing conditions caused by the wet spring.
The latest models offer a variety of features for homebuyers based on yard size. Entry-level lawn riders are suited for 1.5 acres or less and usually have 1-cylider engines. Mid-grade riders have twin cylinder engines with high HP’s that work well in large cutting areas.
Production is expected increase up to 5% by 2025; lifespan of this product has about a 10-year turnover. PSR
Carol Turner, is Senior Analyst, Global Operations, for Power Systems Research
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German Soccer
The European office of Power Systems Research (PSR) this season sponsored a local soccer team in Germany. The A youth of the SSG Gravenbruch is playing in the district class in the district of Offenbach am Main. The club currently occupies fourth place out of a total of 10 teams. The club is coached by Dalibor Sablic, an account manager for PSR.
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Hon Hai Delivers First EV Bus To Kaohsiung City in Taiwan
TAIWAN REPORT
On March 3, Hon Hai Precision Industry delivered its first EV, the Model T commercial bus, to a bus route operator based in Kaohsiung City in southern Taiwan. The company aims to deliver 30 buses by the end of this year to expand its EV business, which is a new entry into the market, and the key to its future growth will be the extent to which it can break away from its business model that relies on contracted production of iPhones.
The "Model T" was delivered to Kaohsiung Bus Company.…
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Russia Shuts Down Half of Auto Plants
RUSSIA REPORT
Maxim Sakov March 10, 2022–The volume of working auto production facilities in Russia has dropped by 45% since the invasion of Ukraine. On March 3, work continued in Russia on 55% of the facilities for assembling LCVs and passenger cars, comparing to 2021. Last year, domestic operations produced 83% of sales in Russia.
Work continues at AutoVAZ (in Tolyatti and Izhevsk), Stellantis and Mitsubishi alliance (PSMA Rus plant), Autotor (Kia and Hyundai assembly), Nissan, Haval, GAZ, UAZ, Mazda Sollers and Isuzu. The total number of vehicles produced by these enterprises has reached 766,000, which is 55% of the sales produced by the Russian automotive industry last year. The total annual production capacity of Russian automotive industry is about 2.7 million vehicles.
After implementation of Western sanctions and the volatility of currency exchange, automakers started raising prices and stopped production and shipping cars. Companies such as Volkswagen, BMW, Renault, Mercedes, Hyundai, Toyota, Sollers Ford have announced the temporary closing of factories. Closed import to Russia Audi, Porshe, GM, Jaguar Land Rover, Lexus, Volvo, Honda, Mazda and others.
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Foreign Automakers Face Ultimatum
RUSSIA REPORT
March 10, 2022–Foreign companies which have paused their business operations in Russia must resume their work, or face bankruptcy of their Russian division.
Foreign companies made huge investments to localization production in Russia, and they don’t want to leave the Russian market, but they face unprecedent pressure by their own regulators. In this situation the government has developed three scenarios for foreign concerns’ subsidiaries which have production plants in Russia.
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