EV battery imports from China now face scrutiny under US law
The U.S. is expanding its enforcement of the Uyghur Forced Labor Prevention Act (UFLPA) to include electric vehicle (EV) batteries and car parts, adding to the growing list of goods under scrutiny due to concerns over forced labor in China’s Xinjiang region. While the initial focus was on items like solar panels, tomatoes, and cotton apparel, this broader enforcement now includes components such as lithium-ion batteries, tires, and major raw materials like aluminum and steel that are crucial to the automotive industry.
The increased inspections of products destined for auto assembly plants by the U.S. Customs and Border Protection (CBP) have raised concerns for automakers. As EVs and their components play a pivotal role in the transition to clean energy and the reduction of carbon emissions, disruptions in their supply chains could significantly affect production schedules and costs.
Automakers will need to ensure that their supply chains are free from any links to forced labor in Xinjiang, a region where the U.S. believes labor camps have been established. The heightened focus on these products could further strain an already complex global supply chain network, potentially causing delays, increased costs, and reputational damage to companies found to have connections to forced labor. The shift in enforcement also reflects the broader trend of countries taking a more stringent stance on human rights issues within supply chains, impacting various industries beyond just solar and apparel.
Interested? Click here to read more
Samsung Cash in ASML Shares to Bolster their Chipmaking
Samsung Electronics, a major player in the global memory chip industry, has sold 3.55 million shares of ASML Holding for about $2.2 billion, decreasing its stake in ASML from 1.6% to 0.7% in the second quarter. ASML is a critical producer of chip manufacturing machines, particularly extreme ultraviolet (EUV) scanners, and its shares have surged due to the anticipated rapid recovery in the chip sector.
This divestment allows Samsung to capitalize on ASML’s rising share prices while raising funds to expand its chipmaking facilities in South Korea and abroad. Despite market challenges, including its chip business reporting an operating loss of 4.36 trillion won in the second quarter, Samsung remains committed to investing in chip technology.
The proceeds from the ASML shares sale will bolster Samsung’s position in the semiconductor industry, enabling it to strengthen its chipmaking capabilities and maintain its industry leadership. This move aligns with the growing demand for advanced chips, emphasizing the significance of cutting-edge technology and equipment in the competitive semiconductor landscape.
Read more here
Hyundai supplier plans new Tennessee facility
South Korea-based Hanon Systems, a manufacturer of automotive thermal systems, is making a significant investment of nearly $170 million to establish a manufacturing facility in Loudon, Tennessee. This strategic move comes in response to the increasing demand for electric vehicles (EVs) and their components in North America. The new plant is expected to create around 600 jobs, contributing not only to the local economy but also impacting the regional job market positively.
The facility will specialize in assembling automotive thermal solutions, a crucial component for EVs’ efficient performance. Hanon Systems’ decision to set up multiple manufacturing units in the US underscores the ongoing shift towards electric mobility and the growing emphasis on localizing the production of critical EV components.
Furthermore, Hanon Systems’ investment could have positive ripple effects on the supply chain, potentially fostering the growth of related industries, such as battery manufacturing and advanced materials production, in the region. As the global automotive industry transitions toward electrification, these localized supply chain developments could significantly enhance the sector’s resilience, efficiency, and sustainability.
Click here to read more
