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Runtime: 10:41
0:00 Battery Prices Up for 1st Time in Over 10 Years
1:24 1/3 of Ford Dealers Not Investing in EVs
2:24 Tesla Denies Shanghai Slowdown
3:49 Hydrogen Extraction Breakthrough Could Benefit Fuel Cells
5:19 Mercedes Reveals Most Powerful S-Class Ever
6:26 OEMs Can’t Go Carbon Neutral w/ HEVs & PHEVs
7:54 Navistar and TuSimple Part Ways
8:26 DHL Taps BrightDrop for EV Delivery
9:13 Integra Type S Gets Same Setup as Civic Type R
9:42 Toyota Developing EV Manual Transmission
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BATTERY PRICES UP FOR 1ST TIME IN OVER 10 YEARS
For the first time in more than a decade, the price of lithium-ion battery packs increased. According to Bloomberg New Energy Finance, which has been tracking the market since 2010, rising raw material and component prices as well as rising inflation led to the increase. The average price globally in 2022 is $151 per kWh, up 7% from last year. BloombergNEF says the increase could have been larger if it weren’t for the adoption of LFP or lithium-iron phosphate batteries, which are 20% cheaper on average. Its study includes batteries for passenger and commercial vehicles, buses and stationary storage products. If you only look at BEV packs, prices were $138 per kWh in 2022. And prices also vary per region. In China, battery pack prices were cheapest at $127/kWh. BloombergNEF says prices will remain about the same in 2023 before dropping again in 2024. And by 2026, it says battery packs will fall below $100/kWh on average.
1/3 OF FORD DEALERS NOT MAKING EV INVESTMENT
As we reported yesterday, Ford is getting resistance from some of its dealers on how it plans to sell EVs. And now we have a better idea of how many aren’t making the investment, which will cost $500,000 or $1-$1.2 million, depending on what investment tier they choose. At the Automotive News World Congress CEO Jim Farley said nearly 2/3rds of its U.S. dealers have elected to become EV certified and the majority of them chose to invest in the higher tier. But that means the other third or over 1,000 dealers are not making the initial EV investment. Based on yesterday’s report, some will probably never make that switch, however, others might just be taking a wait-and-see approach. Ford will open another investment program in 2025 that would allow dealers that buy in to sell EVs by 2027.
TESLA DENIES SHANGHAI SLOWDOWN
Tesla is denying reports that it plans to cut production in China. Yesterday, Reuters reported that the EV maker will cut Model Y production at its Shanghai factory by 20% this month due to increasing inventory. But Tesla China issued a statement saying the reports were “untrue” and did not elaborate. The company set a record last month, delivering more than 100,000 vehicles, which was 40% higher than the previous month.
HYDROGEN EXTRACTION BREAKTHROUGH COULD BENEFIT FUEL CELLS
One of the big drawbacks of fuel cells is the lack of a hydrogen network to re-fuel vehicles. That’s because pure hydrogen is expensive to compress for transport and is difficult to store for long periods. So in recent years, scientists have turned to ammonia to extract hydrogen since it contains three hydrogen molecules and it’s also easier to transport and store than hydrogen. But there are drawbacks to this. In order to get the hydrogen out of ammonia, it requires extremely high temperatures, around 400 degrees Celsius or 732 degrees Fahrenheit and expensive catalysts are needed for the process. But researchers at Princeton and Rice universities may have discovered a breakthrough and developed a technique to split hydrogen from liquid ammonia that is cheaper and less energy intensive. It uses an LED to excite electrons in iron and copper nanoparticles to split the ammonia into hydrogen and nitrogen, which can be done at room temperature with no additional heating. The researchers say the process is scalable and it can be produced locally instead of at large centralized plants. The next step is to find a cleaner way to create ammonia. It’s currently done so with high temperatures and pressures using fossil fuels. And if that can be solved, this new technique has the potential to be the break that fuel cells need.
MERCEDES REVEALS MOST POWERFUL S-CLASS EVER
Luxury performance is having its day in the sun as Mercedes revealed the new AMG version of the S-Class. Let’s slide past the obvious stuff, like unique styling accents inside and out as well as upgraded brakes and suspension, and move into the real exciting stuff. Power comes from a 4.0L twin-turbo V8 paired to a rear-mounted electric motor that combines for 802 horsepower and over 1,000 lb-ft of torque. That makes it the most powerful S-Class ever and it will do 0-100 km/h in 3.3 seconds. Not bad for a sedan that weighs over 5,700 pounds or nearly 2,600 kilograms. The Mercedes-AMG S-Class is also a plug-in hybrid and features a 13.1 kWh battery pack that provides up to 33 kilometers or 20 miles of range, although Mercedes says it is designed for fast power delivery and draw, not the longest possible range.
OEMs CAN’T GO CARBON NEUTRAL WITH HEVs & PHEVs
Ford says it will be carbon neutral by 2050. GM says by 2040 and Stellantis says by 2038. Carbon neutrality means they will not be adding any new net carbon to the atmosphere. Almost all the other automakers in the world are making the same promise. This is why the auto industry is so committed to electric cars. Automakers can’t get to carbon neutrality with hybrids or even plug-in hybrids. As efficient as they are, they still emit too much CO2. Only battery electrics are going to get them there. This was one of the hot topics at the SAE’s North American International Propulsion Conference last month. The talk was that hybrids and plug-in hybrids are not going to go away in the short term. But they have a limited shelf life that is going to expire sometime in the next decade.
NAVISTAR AND TUSIMPLE PART WAYS
Navistar and self-driving company TuSimple are ending a partnership to develop autonomous semi-trucks. Back in 2020, Navistar bought a minority stake in the startup and the two planned to introduce Level 4 self-driving trucks in 2024. But now the companies have abruptly ended the partnership without specifying why. They aren’t the only companies backing away from developing AVs. As you know, Ford and Volkswagen recently ended their partnership with Argo AI.
DHL TAPS GM’S BRIGHTDROP FOR EV DELIVERY
GM’s all-electric commercial vehicle company, BrightDrop, is expanding into new markets. Delivery company DHL will add BrightDrop vans to its fleet in Canada starting next year. DHL is also testing BrightDrop’s Trace eCarts in a pilot in Toronto. They are ergonomically designed containers which feature a built-in electric hub motor to make moving them around easier. GM also opened its first EV manufacturing plant in Canada. It re-tooled its CAMI Assembly Plant in Ontario to build BrightDrop vans and the first one rolled off the line yesterday. The plant will build 50,000 BrightDrop vans annually by 2025.
INGETRA TYPE S GETS SAME SETUP AS CIVIC TYPE R
Sounds like the performance version of the Acura Integra, the Type S, will have the same setup to the Honda Civic Type R. Undergoing testing right now, the Integra Type S will feature a 2.0L turbocharged engine that makes over 300 horsepower and is mated to a 6-speed manual transmission and a limited-slip differential. Headed to the Acura lineup for the 2024 model year, we should learn more closer to the vehicle’s launch date.
LEXUS DEVELOPING EV MANUAL TRANSMISSION
And speaking of manual transmissions, they might not die with electric vehicles. The chief engineer of Lexus Electrified says that it’s developing a manual for EVs that’s “not just a design concept.” The system is said to feature a shift lever, tach and third pedal, but will use software to simulate the feeling of a manual. But that also means each driver could tune the system to their preference. Lexus says the test vehicles have been fun to drive, but let us know what you think in the comments.
And that brings us to the end of today’s show. Thanks for tuning in.
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Seamus and Sean McElroy cover the latest news in the automotive industry for Autoline Daily.