Ford supplier invests $790M to build new Plants
Magna International, an automotive supplier, will produce key components for Ford’s second-generation electric truck as part of a $790 million investment. Magna will become the first supplier to join Ford’s upcoming supplier park. The investment will include two facilities in Stanton, Tennessee, adding to the electric vehicle supply chain in the region.
One facility will manufacture frame and battery enclosures, serving as an additional production site for battery enclosures used in Ford’s electric F-150, currently produced in Ontario, Canada. The second facility will focus on producing polyurethane foam, assembling complete seats, and implementing just-in-time sequencing. Production at both sites is set to begin in 2025, aligned with Ford’s plans to commence production of its Project T3, producing 500,000 EV pickup trucks annually at its BlueOval City metaplant.
This investment showcases Ford’s commitment to EV production and reflects the ongoing trend of automakers establishing large EV campuses in the United States. Such initiatives are aimed at meeting the rising demand for electric vehicles and strengthening the supply chain for EV components. Other automakers, like Hyundai and Honda, are also making substantial investments in EV manufacturing facilities and battery plants across different regions in the U.S.
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Germany $22B chips fund has interests of Intel & TSMC
Germany has announced plans to invest up to $22 billion in its semiconductor industry by 2030. The investment is aimed at attracting global chipmakers to set up factories in the country and reducing Europe’s reliance on Asian countries for semiconductor supply. The move is made possible by the European Chips Act, which aims to double the EU’s market share in semiconductor development, manufacture, and materials from 10% to 20% by the end of the decade.
As part of this effort, Intel has disclosed plans to spend over €30 billion on developing chip-making plants in Germany, marking the country’s largest foreign investment. Additionally, Taiwan-based semiconductor manufacturer TSMC is also considering investing in a semiconductor production facility in Germany.
The EU’s push to boost domestic chip production and attract foreign investments aligns with global efforts to enhance semiconductor supply chain resilience and reduce dependence on a few key suppliers. By investing in the semiconductor industry, Germany seeks to strengthen its position in the global market and mitigate potential supply disruptions caused by geopolitical or natural factors. The investment may lead to the establishment of new chip manufacturing facilities in Germany, positively impacting the country’s semiconductor industry and enhancing the overall European semiconductor ecosystem.
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BYD to halt $1 billion EV investment in India
China’s electric vehicle (EV) maker BYD has reportedly decided to shelve its plans for a $1-billion investment in building electric cars in India after facing scrutiny from the Indian government. BYD and its partner, Megha Engineering and Infrastructures, had submitted a joint proposal to build EVs in India, but Indian officials raised security concerns about Chinese investment, signalling opposition.
While BYD executives have informed Megha Engineering of their decision, the investment proposal has not been formally withdrawn from government review. The move comes as India has been subjecting investments from China to closer scrutiny since 2020, following border clashes between the two countries. Other Chinese companies, such as Great Wall Motor, have also shelved investment plans in India due to similar concerns.
The decision by BYD could have implications for India’s EV industry and supply chain. BYD, as one of China’s largest EV manufacturers, had proposed starting production in India by 2025, aiming to contribute to India’s ambitious goal of having 30% of its total car sales from electric vehicles by 2030. The decision may impact the growth of India’s EV market and its efforts to attract foreign investments in the sector. Additionally, it may influence other Chinese companies’ plans to invest in India’s EV sector, potentially affecting the development and competitiveness of the Indian EV supply chain.
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