China Battery Games

Ola, Tesla, Evolve+, Ford, BYD, Jigar & Joe, Newrizon, Mexico, Lithium, Urbix, NIO Capital

Feb 22, 2023

The Big 5 This Week

1. China Battery Games. CATL – the No. 1 battery maker on the planet – is sharply reducing prices for some strategic customers. Tesla is not on the preferred list. How soon before Chinese battery makers decide to announce higher prices for American and European buyers? What kind of deal did Ford strike with CATL? Link

2. Ola Into EVs. The electric revolution in India started with two-wheelers. But small cars are following fast. India’s dominant ride-hailing outfit will invest $920 million into electric cars and batteries. Link

3. Tesla: Langsam Germany, Vamos Mexico. Tesla is slowing its production ramp in Germany while accelerating plans for a new plant in Mexico. America’s Inflation Reduction Act is driving this pivot. Link

4. Hyundai Evolve+. Up until now, car subscriptions have been a bust – at least for American consumers. Hyundai believes that might change with an electric-vehicle focus. You can drive a new IONIQ 5 for just under $800 a month, including insurance. EV product master John Voelcker told me this week that Evolve+ could work, but probably in limited numbers. Link

5. Hey Jigar & Joe. A few members of the ZoZoGo team are in Washington, DC this week to join a major future of transportation event. Alas, they report seeing very few EVs on the road – mostly Tesla Ubers. Should not the US Capital be teeming with the powertrain of the future?

Tesla Model X in DC – With Jersey Plates

Listen Up

"We can cut the cost and the people and do it quickly. But the reality is if you don't change the efficiency of engineering, supply chain, and manufacturing - the way people work - it'll grow back because it did. It all grew back.” – Jim Farley, CEO, Ford Motor Co.

Busting China’s Graphite Grip: China companies process 93% of the world’s graphite for EV batteries. Mesa, Arizona startup Urbix is determined to do better, cleaner, more efficient processing in the US. Listen to colorful founder and CEO, Nico Cuevas, paint the picture on this week’s Driving With Dunne podcast

Future EVs, Batteries, Charging

EVs

The Japan That Can Say No (To BYD). A toxic chemical has put a stop on Hino’s plans to import electric buses from BYD. Link

Newrizon. NIO Capital is investing 100 million RMB into a Shanghai-based truck and van startup called Newrizon. Link

Ora Good Cat. The Good Cat all-electric is one of scores of Chinese EV models to be shipped overseas in the coming months. China’s EV exports will likely surpass the 1 million mark in 2023. Link

No, I am not a Fiat Panda. I’m a Good Cat

Batteries

Lithium Price Confusion. Complexity, two-tier pricing, and wildly different forecasts of future supply. That is the lithium arena in 2023. Since December, 2022, lithium carbonate prices have fallen 30% in China. But only 10% on deliveries to the US and Europe. Link

Northvolt. Sweden’s very own battery startup, Northvolt, plans to go public within a year.Valued at $20 billion, Northvolt represents a big test as to whether Peter Carlsson, a former Tesla exec, has the entrepreneurial magic and stamina necessary to achieve a successful IPO. Link

Can CEO Peter Carlsson duplicate Tesla’s magic at Northvolt?

Charging

NIO Swap Network. NIO plans to nearly double its battery swap network in China by adding 1,000 locations in 2023. Link

NIO will have 2,300 battery swap centers by the end of 2023.

New Ideas / Milestones

BYD’s Breakout Year. BYD is expected to sell 2 million vehicles in 2023. In January, the company delivered more than 150,000 units, up 60% from a year earlier. The company has a notorious reputation for beating up suppliers on costs, allowing BYD to deliver compelling-value-for-money cars. Link

America’s Battery Supply Chain – The Up and Coming. The US in granting almost $3 billion to companies that will become the backbone of the North American battery supply chain.