Electric Vehicles

OSLO, Oct 1 (Reuters) – Demand for Tesla Inc’s (TSLA.O) mid-sized models helped push up electric car sales in Norway to nearly 80% of total car sales last month, data showed on Friday.

The country has been a global leader in switching to electric vehicles and seeks to become the first to end the sale of petrol and diesel engines by 2025.

Battery electric vehicles made up 77.5% of all new cars in September, the Norwegian Road Federation (OFV) said, up from 61.5% a year ago.

Tesla Model Y, a compact sports utility vehicle, was the top selling vehicle with 19.8% of the car market followed by the company’s Model 3 sedan with 12.3%. Skoda’s Enyaq was a distant third at 4.4%.

First unveiled by California-based Tesla in March 2019, the Model Y was only recently made available to European customers.

By exempting fully electric vehicles from taxes imposed on those relying on fossil fuels, oil-producing Norway has become a leader in ending the use of combustion engines, and in 2020 EVs outsold all other cars for the first time. read more

However, Norway’s zero-tax policy could change if the centre-left winners of last month’s national election go ahead with plans to tax the most expensive models.

LUXURY TAX

The next government is expected to be headed by Labour’s Jonas Gahr Stoere, and will be made up of parties which have vowed to introduce 25% VAT on the fraction of the price tag of a new car that exceeds 600,000 Norwegian crowns ($69,300).

While Tesla’s Model Y, costing less than the tax threshold, may be unaffected, the company’s high-end S and X models are priced at up to 1.3 million crowns and could face substantial levies. Porsche, Audi and Mercedes-Benz would also be affected.

Labour says the tax will bring in extra cash to state coffers and is motivated by a sense of fairness.

The tax exemption for electric car purchases was meant as a way to introduce new technology, and can’t last indefinitely, said Skein Road Hansen, a Labour tax policy spokesman.

“It is a subsidy. And… the more expensive the car is, the bigger the subsidy,” he said.

“We have in the last couple of years received a lot of new models… there is plenty to choose from for those who still want to buy a car while there is a VAT exemption,” Hansen added.

A tax on electric luxury vehicles would be ill-timed and ultimately slow Norway’s electrification, said Christina Bu who heads the Norwegian EV Association, an interest group.

Even in the northernmost part of the country with freezing temperatures in winter and reindeer roaming the streets, electric car sales have recently been outselling those powered by petrol, diesel and hybrid engines, Bu said.

“Now finally the more rural areas are starting to buy more electric cars and it’s not the time now to remove the tax exemption because we need to also get these areas with higher market shares,” she added.

($1 = 8.6543 Norwegian crowns)

Reporting by Victoria Klesty, editing by Terje Solsvik and Susan Fenton

Our Standards: The Thomson Reuters Trust Principles.

The Odisha (previously, Orissa) government approved the Odisha Electric Vehicle Policy, 2021 on August 27, 2021. The policy is mainly aimed at accelerating the adoption of electric vehicles (EVs) along with the focus on EV and component manufacturing, including batteries. The policy is set for a period of five years and seeks to achieve 20 percent EV adoption across all vehicle registrations by 2025.

Odisha’s EV policy incentivizes the transition to electric mobility by offering fiscal sops for EV manufacturing, purchase, and scrapping. Additionally, interest subvention in loans and waivers in road tax and registration fee will also be provided to facilitate faster EV adoption. Incentives have been proposed for start-ups as well.

The policy will be implemented by the Odisha transport department, where a dedicated EV-Cell will be instituted to monitor the day-to-day implementation.

Purchase incentives under Odisha electric vehicle policy, 2021

Odisha’s EV policy focuses on incentivizing the purchase and use of EVs in the following segments:

• Two-wheeler (2W) EVs: Subsidy is available at 15 percent, subject to a cap of INR 5000.
• Three-wheeler (3W) EVs: Subsidy is available at 15 percent, subject to a cap of INR 12,000.
• Four-wheeler (4W) EVs: Subsidy is available at 15 percent, subject to a cap of INR 100,000.
• Electric buses (e-buses): Subsidy is available at 10 percent, subject to a cap of INR 2,000,000.

Additionally, the following incentives have been notified:

• Availability of open permit for electric autos (three-wheeler EVs).
• 100 percent interest free loans will be provided to State Government employees for purchase of EVs.
• Reimbursement of 100 percent state goods and services tax (SGST) on the sale of electric buses sold and registered in Odisha state during the policy period. Furthermore, the policy provides for 100 percent exemption on road tax and registration fees of the e-buses for the first four years.
• Interest subvention of five percent on loans for purchase of e-buses will be available.

However, to avail above incentives, the two-wheeler EVs will have to qualify on the basis of performance and quality check criteria, as specified under Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles (FAME) scheme, Phase II. These criteria include:

1. Minimum top speed: 40km/h
2. Minimum acceleration: 0.65m/s²
3. Maximum electric energy consumption: Not exceeding 7kWh/100km
4. Warranty: At least three years comprehensive warranty including battery warranty from the manufacturer.

Purchase incentives for goods carriages

The Odisha electric vehicle policy also provides purchase incentive of INR 30,000 to the first 5000 electric goods carriers to be registered in the state. Additionally, interest subvention of five percent on loans for purchase of electric goods carriers will also be provided during the policy period.

The state policy also provides for 100 percent waiver on the road tax and registration charges as well as 100 percent reimbursement of SGST on sale of electric goods carriages during the policy period.

Manufacturing incentives under Odisha EV policy, 2021

The small and micro EV battery manufacturing units will be facilitated with the following incentives under Micro, Small and Medium Enterprises (MSME) Policy, 2016:

• New micro and small enterprise: Assistance to the tune of 25 percent of capital investment made in plant and machinery, subject to an upper limit of INR 10 million will be available.
• New micro and small enterprise owned by SC/ST/differently abled/women/ technical entrepreneur: Financial assistance amounting to 30 percent of capital Investment made in plant and machinery subject to an upper limit of INR 12.5 million will be available.
• New micro and small enterprise set up in industrially backward districts, including KBK districts: Additional capital investment subsidy at five percent of investment made in plant and machinery, over and above the subsidy available in the above two situations.

Further, the policy aims to make transition to Lithium Ion (Li-ion) batteries in the long-term and the Odisha state government has offered capital subsidy, tax, and tariff incentives to attract private investment in the sector and explore partnership opportunities to start Li-ion battery manufacturing in the state.

Charging incentives under Odisha electric vehicle policy, 2021

Public charging infrastructure

The Odisha state government shall provide capital subsidy of 25 percent to the selected energy operators towards installation expenses of these EV chargers. It must be noted that such subsidy will be available within one year of allocation of the location of the charging station. Further, a special subsidy shall be allowed for the first 500 charging stations. The policy also proposes that the state government will reimburse 100 percent SGST to the energy operators for purchase of batteries to be used in swapping stations.

Private charging infrastructure

Odisha’s EV policy provides purchase grant of up to INR 5000 towards charging equipment, for the installation of first 20,000 private charging points.

Oct 1 (Reuters) – BHP Group Ltd (BHP.AX) said on Friday its Kwinana nickel sulphate plant outside Perth has yielded its first nickel sulphate crystals, as the world’s biggest miner aims to tap the booming electric vehicle battery demand.

When fully operational, the plant will produce 100,000 tonnes per year of nickel sulphate, enough to make 700,000 electric vehicle batteries each year, the company said in a statement.

Demand for the raw materials for electric vehicles has increased sharply this year, with growing demand from the battery material supply chain. Nickel sulphate, a key battery chemical, has much higher margins than nickel metal.

The global miner had signed a nickel supply agreement with Tesla Inc (TSLA.O) earlier this year to work with the electric carmaker on lowering carbon emissions. read more

Kwinana refinery will create 80 new direct jobs and support 400 new indirect jobs, along with the 200 construction jobs that were created during the construction phase, asset president Jessica Farrell said.

Reporting by Riya Sharma; Editing by Rashmi Aich

Our Standards: The Thomson Reuters Trust Principles.

MOUNT PLEASANT — Foxconn has chosen an assembly plant in Ohio for the initial production of electric vehicles in the U.S., a decision that keeps its Racine County complex from entering electric auto manufacturing, at least in the short-term.

Foxconn announced Thursday it is working to purchase a production and assembly plant from Lordstown Motors Corp. in Lordstown, Ohio to help the Taiwanese conglomerate build electric vehicles for the startup automaker, Fisker. Foxconn and Fisker announced in February they had come to an agreement to make the vehicles.

But the companies did not say then where those vehicles would be made, and some hoped Foxconn would use its existing Wisconsin facility – initially made to build TV screens – as the site for electric vehicle production.

The agreement with Fisker states Foxconn would build more than 250,000 of these vehicles every year, with production to begin in the 4th quarter of 2023. The vehicles would be sold in North America, Europe, China, and India.

On Thursday Foxconn said it had come into a non-binding agreement to purchase Lordstown Motors’ 6.2 million square-foot production and assembly plant in Lordstown for $230 million, according to their initial agreement.

Lordstown has been attempting to begin production of an all-electric pickup truck called the ‘Endurance’ at the facility. But it appears the company ran out of money.

“Existing automobile manufacturing facilities, infrastructure, employees, and location in Ohio with robust supply chain resources will give Foxconn speed to market that meets our customer’s needs for production by end of 2023,” according to a spokesperson.

But Foxconn says there is still potential for similar electric vehicle efforts in Racine County.

“Foxconn’s assets in Wisconsin will continue to serve as a potential location for additional investment for Foxconn’s electric vehicle growth in the United States,” the spokesperson said. The company adds that the Racine County facility will continue to be the location for “data infrastructure hardware and Information and Communication Technology production.”

Foxconn originally planned to build a Gen 10. 5 LCD facility to produce large screens in Mount Pleasant after former Gov. Scott Walker offered more than $3 billion in tax incentives. But that project was scaled back to a Gen. 6 factory to build smaller screens for phones, TVs, and tablets.

Since then, Foxconn has faced criticism for not holding up to its promise of creating 13,000 local jobs as local and state governments spend hundreds of millions of dollars to usher in what was initially seen as a possible manufacturing resurgence in the state.

Then last October, the Wisconsin Economic Development Corp. announced Foxconn did not qualify for the $4 billion in local and state tax incentives. The WED concluded the company did not hire enough employees or make enough investments in the Mount Pleasant facility, per the agreement the company signed with former Gov. Walker.

Foxconn contends it has hired more than 530 full-time employees and invested $750 million at the facility.

The agreement with California-based Fisker would mark Foxconn’s first foray into the production of vehicles. Foxconn is the world’s largest contract maker of electronics and a large supplier of iPhones.

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Roush CleanTech, a leader of advanced clean transportation solutions based in Livonia, announced the addition of Natalia Swalnick as its director of government affairs and the promotion of Adam Wilkum to director of eMobility.

Swalnick, who is based in San Diego, has more than a decade of EV experience and will lead public policy issues related to EV transportation and energy.

“The current draft of the Infrastructure and Jobs Act earmarks funding to EV programs, like bolstering the domestic EV manufacturing base and talent pool, and providing incentives to drive sales of electric trucks and buses,” says Swalnick. “This funding will lead to new clean mobility technologies that we’re well prepared to build and support with our growing EV team.”

With more than 20 years of transportation experience, Wilkum will spearhead efforts to promote EV technology in the transportation industry while advising Roush CleanTech customers on the transition to BEVs.

“By dedicating personnel and technical resources to our electrification efforts, we are better positioned to support our customers as they navigate the entire EV ecosystem,” Wilkum says. “ROUSH CleanTech has a long track record of helping fleets transition to alternative fuels by educating on operational impacts, offering world-class powertrain products, and supporting our vehicles with a broad service network.”

Working with the company’s government affairs and customer success teams, Wilkum will connect fleets with funding to purchase EVs, and advise customers on the EV supply equipment required to successfully deploy their vehicles.

LANSING, Mich. (WILX) – Gov. Gretchen Whitmer is joining her colleagues in Illinois, Indiana, Minnesota, and Wisconsin to work together on electric vehicle (EV) charging infrastructure across the Midwest region, by signing the Regional Electric Vehicle for the Midwest Memorandum of Understanding (REV Midwest MOU).

The purpose of the REV Midwest MOU is to mutually accelerate vehicle electrification throughout the Midwest Region.

REV Midwest will give the foundation for cooperation on fleet electrification as well as:

• vital commercial corridors to safeguard economic security,
• grow jobs,
• futureproof interstate commerce,
• reduce harmful emissions,
• improve public health,
• and advance innovation.

The MOU also guarantees the entire Midwest region can efficiently compete for new private investment and federal funding for vehicle electrification.

“Today’s REV Midwest partnership is a bipartisan effort to build the future of mobility and electrification and connect our communities,” said Gov. Whitmer. “Our partnership will enable the Midwest to lead on electric vehicle adoption, reduce carbon emissions, spur innovation, and create good-paying jobs.”

Whitmer’s applause on the collaboration of Midwest governors was met with similar praise from governors of both parties.

“The Midwest has the ingenuity and the drive to develop innovative solutions to curb climate change,” said Minnesota Governor Tim Walz. “I am proud to work with my fellow Midwest governors to not only reduce pollution, but protect public health, create jobs, and increase consumer choice across the region.”

Building on the innovative manufacturing, engineering, research and development, and technological expertise of the Great Lakes Region, REV Midwest will work together to promote clean energy and mobility manufacturing, leverage the states’ automotive industry electrification leadership, grow the region’s share of electric vehicle production, and elevate access to tools required to equip the workforce of tomorrow.

Increasing access to charging infrastructure and reducing range anxiety will support EV adoption and the next generation of American-made electric vehicles. With REV Midwest, the states will work jointly to remove barriers to electric medium and heavy-duty vehicles (MHDV) and enable EV charging across states by coordinating to optimize charging infrastructure, cooperate on best practices, and support standardization.

“Illinois’ Climate and Equitable Jobs Act puts us on track to be the best state in the nation to manufacture and drive an electric vehicle – but we’re just getting started, and the work doesn’t stop at our state borders,” said Illinois Governor JB Pritzker. “By working together with our Midwestern neighbors, we can accelerate the region’s growth in the transportation sector, create jobs across our communities, and prioritize the environment that makes the Great Lakes region so great along the way.”

An estimated 105,000 new jobs in the utility sector are predicted to be needed to deploy EV charging infrastructure by 2030. The states will work together with the industry to understand future workforce needs and support workforce training programs to build the transportation system of the future.

“As the Crossroads of America, transportation plays a vital role in Indiana’s economic success and continued growth,” Indiana Governor Eric J. Holcomb said. “I’m proud to partner with our neighboring states to put the Midwest region on the leading edge of providing the charging infrastructure needed to futureproof our transportation network and meet the demand as rapid adoption of electric vehicles continues.”

Copyright 2021 WILX. All rights reserved.

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Dozens more charging points for electric vehicles have been promised across Surrey, as interest in the cars reportedly soars.

Public charging points are still “few and far between” according to one electric car owner, although those who have made the switch may be feeling relieved this week as drivers who rely on diesel or petrol faced the fuel crisis.

Provision of public charging points varies across the county.

READ MORE: Calls for calm as East Surrey Hospital declares ‘critical’ internal incident

Surrey County Council is in the process of installing 80 on-street charging points across four boroughs as part of a pilot.

The authority says the lessons of that will first be evaluated before any further infrastructure is rolled out.

Some lower-tier authorities have installed charging points in their car parks.

Reigate and Banstead Borough Council currently has three charging points in its car parks, with four more to come in Banstead in November. Mole Valley District Council has committed to installing 90 in its car parks by March next year. Tandridge District Council doesn’t yet have any.

Reigate and Banstead councillor Steve Kulka drives an electric car and admits his family are lucky to have a driveway, as 90 per cent of their charging takes place overnight.

Speaking ahead of the fuel crisis, Mr Kulka said: “I have lots [of people] contact me who would love to have an electric car but understand charge points are few and far between and are not guaranteed to work when you get there.

“Although there are more [public] charging points nowadays, if you do not have a driveway then it’s tough, as overnight is when the electric rates are cheaper.

“When you go to the supermarket, there is no need to leave it there for hours to fill it completely,” he added.

“In just one hour, you can put 30 miles worth of distance into the car.”

The county council says the 80 fast-charge points which form its pilot will be put in across Guildford, Woking, Waverley and Spelthorne within the next few months.

The trial aims to lead to better understanding of key issues relating to on-street charging, such as the cost, demand and maintenance involved.

Matt Furniss, county councillor in charge of the transport brief, said: “It is important that we drive this forward before the ban on new conventional petrol and diesel car sales in 2030.

“The trial will give us an understanding of the take-up from those that do not have driveways, and see where the most demand is.

“We want to enable people to change before the end of the decade if they wish to do so.

“On our website, people can request a charging point in their area which helps us gauge demand in different parts of the county.

“Nearly half of carbon emissions come from transport in Surrey.

“It won’t just be electric because hydrogen will have a very large part to play, but I imagine that will be more with the main fuelling stations.”

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MUNICH/BEIJING, Sept 30 (Reuters) – China’s electric carmakers are darting into Europe, hoping to catch traditional auto giants cold and seize a slice of a market supercharged by the continent’s drive towards zero emissions.

Nio Inc (NIO.N), among a small group of challengers, launches its ES8 electric SUV in Oslo on Thursday – the first foray outside China for a company that is virtually unheard of in Europe even though it’s valued at about $57 billion.

Other brands unfamiliar to many Europeans that have started selling or plan to sell cars on the continent include Aiways, BYD’s (002594.SZ) Tang, SAIC’s (600104.SS) MG, Dongfeng’s VOYAH, and Great Wall’s (601633.SS) ORA.

Yet Europe, a crowded, competitive car market dominated by famous brands, has proved elusive for Chinese carmakers in the past. They made strategic slips and also contended with a perception that China, long associated with cheap mass-production, could not compete on quality.

Indeed, Nio Chief Executive William Li told Reuters he foresees a long road to success in a mature market where it is “very difficult to be successful”.

Chinese carmakers may need up to a decade to “gain a firm foothold” in Europe, the billionaire entrepreneur said – a forecast echoed by He Xiaopeng, CEO of electric vehicle (EV) maker Xpeng (9868.HK) who told Reuters his company needs 10 years “to lay a good foundation” on the continent.

These new players, many of which have only ever made electric vehicles, believe they have a window of opportunity to finally crack the lucrative market.

While electric car sales in the European Union more than doubled last year and jumped 130% in the first half of this year, traditional manufacturers are still gradually shifting their large vehicle ranges over to electric and have yet to flood the thirsty market with models.

“The market is not that busy yet, if you compare it with combustion-engine models where each of the major carmakers has a whole range of vehicles,” said Alexander Klose, who heads the foreign operations of Chinese electric vehicle maker Aiways.

“That is where we think we have an opportunity,” he added on a drive around Munich in a U5, a crossover SUV on sale in Germany, the Netherlands Belgium and France.

The U5 starts at 30,000 euros ($35,000) in Germany – below the average new car price and most local EV prices – before factoring in 9,000 euros in EV subsidies – and comes in just four colours and two trim levels to minimize costs.

‘GERMAN PEOPLE BUY GERMAN CARS’

As Chinese carmakers gear up to enter Europe, they are trying out different business models, from relying on importers, low-cost retail options or building up more traditional dealerships.

The new reality that top Western carmakers like BMW (BMWG.DE) and Tesla Inc (TSLA.O) now produce cars in technological powerhouse China has likely undermined past perceptions of low quality workmanship – though they can be hard to shake.

Antje Levers, a teacher who lives in western Germany near the Dutch border, and her husband owned a diesel Chevrolet Orlando but wanted a greener option. They bought an Aiways U5 last year after plenty of research to fend off criticism for not buying local, and loves its handling and low running costs.

She said people had told her: “You can’t buy a Chinese car, they’re plastic and cheap and do not support German jobs.” But she feels that is no longer true in a global car industry where you find German auto parts in Chinese cars and vice versa.

“German people buy German cars, so to buy a Chinese car you need to have a little courage,” the 47-year-old added. “Sometimes you just have to be open for new things.”

NIO LANDS IN NORWAY WITH NOMI

Nio launches its ES8 electric SUV alongside a NIO House – part-showroom, part-cafe and workspace for customers in the capital of Norway, a country that’s also the initial base for Xpeng.

Norwegian state support for EVs has put the country at the forefront of the shift to electric. It makes sense as a European entry point because customers are used to electric vehicles so only have to be sold on an unknown Chinese brand, said Christina Bu, secretary general of the Norwegian EV Association.

“If you go to another European country you may struggle to sell both,” said Bu, adding that her organisation has talked extensively with a number of Chinese EV makers keen to learn market specifics and consumer culture before launching there.

She is uncertain, though, how consumers will react to Nio’s approach of swapping out batteries for customers rather than stopping to charge them, or the carmaker’s strategy of leasing rather than selling batteries to customers.

“But where the Chinese are really at the forefront is the technology,” she added, referring in particular to Nomi, the digital assistant in the dashboard of Nio’s cars.

NEWCOMERS’ STRATEGIES DIVERGE

One size does not fit all. While Nio and Xpeng have been hiring staff building up their organizations in Norway, SAIC’s MG works through a car importer to sell cars in a handful of European markets.

Aiways is trying an lower-cost approach to selling cars in Europe, though Klose says it varies by market.

In Germany, for instance, the company sells its cars through Euronics, an association of independent electronics retailers, rather than building traditional dealerships.

It aims to sell across the EU by next year and to enter the U.S. market by 2023, said Klose, a former Volvo and Ford executive.

Past failed attempts by Chinese carmakers to conquer Europe are unlikely to hurt Chinese EV makers today, as consumers have grown accustomed to electronics coming from China, he added.

Such failures included Brilliance in 2007, whose vehicle received one out of five stars in a German car crash test, damaging the brand.

“The fact there are more Chinese carmakers entering the market will also help us, as it will make Chinese brands more accepted by consumers,” Klose said.

Selling cars to Europeans is a “tough business, especially if your product isn’t well known,” said Arnie Richters, chairman of Brussels-based industry group Platform for Electromobility.

“But if they bring a lot of innovation they have a lot of opportunity.”

($1 = 0.8537 euros)

Reporting By Nick Carey and Yilei Sun; Editing by Pravin Char

Our Standards: The Thomson Reuters Trust Principles.