Toyota Expands EV Operations in China and the US with New Facilities

Toyota

Toyota, a leading Japanese manufacturer, is setting up a new electric vehicle (EV)

production facility in Shanghai, China. The company aims to strengthen its presence in the growing Chinese EV market by delivering electric vehicles (EVs) and EV batteries to local customers. At the same time, it will begin shipping EV batteries from its newly established North Carolina facility in the United States. These moves are part of Toyota’s broader strategy to boost global EV production, aligning with its goal to sell 1.5 million EVs by 2026.

New Shanghai Facility: Focusing on EVs and Batteries

The new plant in Shanghai will focus on the production of EV batteries as well as the new Lexus brand EVs. Toyota plans to manufacture 100,000 EV units after 2027, though it has not disclosed whether this production will include batteries for models other than the Lexus EVs. Interestingly, Toyota has decided to set up the new Shanghai firm as a wholly-owned subsidiary, a rare move for foreign automobile manufacturers, who typically partner with local companies in China. This suggests that Toyota is committed to delivering new energy vehicles (NEVs) to Chinese customers rapidly, with a strong focus on the domestic market.

North Carolina Facility: EV Battery Production Ramp-Up

Toyota is also investing heavily in its North Carolina facility, which will start delivering EV batteries from April. This facility, with an investment of approximately $14 billion, will feature 10 production lines for batteries catering to EVs and plug-in hybrid electric vehicles (PHEVs), alongside four production lines dedicated to hybrid vehicle batteries. While Toyota has not disclosed the specific production volume for its North Carolina plant, this significant investment underscores its commitment to becoming a major player in the global EV market.

Toyota's EV Sales Strategy and Challenges

Despite these expansions, Toyota's global EV sales remain sluggish, with the company revising its sales forecast downward for the 2024-25 fiscal year. The revised outlook predicts sales of 142,000 EVs and 154,000 PHEVs, which represents a decrease of 11% and 4.9%, respectively, compared to the previous forecast. Toyota’s decision to adjust its expectations for EV and PHEV sales marks two consecutive downward revisions, highlighting the challenges the company faces in meeting its EV targets. Nonetheless, the investments in China and the US represent critical steps in Toyota's ongoing efforts to accelerate its EV production and meet its 1.5 million EV sales goal by 2026.

GM Slows Ontario EV Van Production Amid U.S. Tariff Uncertainty

Ontario EV

BrightDrop EV Van Production to Pause Until October 2025

General Motors (GM) will halt and scale back production of its BrightDrop electric delivery van at its Ingersoll, Ontario plant. The company will initiate temporary layoffs on April 14, affecting nearly 500 workers, according to Canadian union Unifor.

GM plans a limited return to production in May, before a prolonged shutdown until October 2025. When operations resume, the plant will run a single production shift, significantly reducing workforce needs.

Retooling Plans Move Forward Despite Market Headwinds

During the downtime, GM will retool the Ontario facility to prepare for 2026 model-year commercial EV production. The company reported 274 BrightDrop van sales in Q1, up 7% year-over-year, showing modest EV delivery growth.

However, Unifor President Lana Payne criticized U.S. trade policies, citing Trump-era tariffs as barriers to investment stability. She warned that without stronger domestic support, Ontario’s EV production future remains fragile despite GM’s commitment.

U.S. Policy Turbulence Adds Pressure to Canada’s EV Industry

The slowdown highlights how protectionist U.S. policies and shifting EV strategies are reshaping North America's industrial landscape. Canadian facilities like Ingersoll face uncertainty as automakers reevaluate supply chains, tariffs, and long-term EV market access.

Unifor urged Canadian policymakers to boost EV sector resilience, warning that delays could weaken future battery and vehicle investments.

The Metalnomist Commentary

GM's EV production pause in Ontario reflects the volatility caused by geopolitical and trade tensions. While retooling shows long-term intent, the move also signals growing caution in the North American EV race. Without cohesive cross-border policy, industrial momentum risks stalling.

Volkswagen ID.4 Production Halt Shows US EV Demand Pressure

Volkswagen EV

Volkswagen ID.4 production in the US will end as the German automaker shifts its Chattanooga, Tennessee, plant toward higher-volume internal combustion vehicle output. The decision reflects weaker electric vehicle demand in the US and the need to protect North American manufacturing utilisation.

Volkswagen said the EV market continues to challenge the industry and requires measured decisions. The company will stop producing the ID.4 at Chattanooga and begin assembling the all-new second-generation Atlas from mid-April 2026.

Volkswagen ID.4 production has been strategically important because the model is the company’s top-selling EV in the US. However, the ID.4 sold 22,373 units in 2025, far below the Atlas, which sold 71,044 units and remained Volkswagen’s second-best-selling model for the past three years.

The decision shows how automakers are adjusting production footprints as EV adoption slows. US EV sales fell by 27% year on year to 216,300 units in the first quarter, creating pressure on manufacturers to rebalance plant capacity, dealer inventory and product planning.

Chattanooga Shift Prioritises Higher-Volume SUV Demand

The Chattanooga plant will now focus on the second-generation Atlas, a three-row sport utility vehicle with much stronger US sales momentum. This gives Volkswagen a clearer volume base in a market where larger SUVs remain commercially attractive.

The move is not a full retreat from the ID.4. Volkswagen said model-year 2026 ID.4 vehicles will remain available through current inventory, supporting US demand into 2027. The company also plans a future version of the ID.4 for North America, although details have not yet been disclosed.

Still, the production shift is significant. Automakers rarely remove capacity from a model unless demand, margin or manufacturing strategy has changed. In this case, Volkswagen appears to be choosing a higher-volume SUV platform over a slower-moving EV in the near term.

This reflects a wider industry trend. EV demand has become more uneven as consumers respond to vehicle prices, charging access, policy uncertainty and changing incentive structures. Automakers now need more flexible production strategies rather than relying on straight-line EV growth forecasts.

EV Slowdown Could Weigh on Battery Materials Demand

Volkswagen ID.4 production changes also matter for the battery materials supply chain. Lower EV output can reduce near-term demand for lithium, nickel, graphite, manganese, copper, aluminium and rare earth magnet materials linked to electric drivetrains and battery systems.

The effect will not come from Volkswagen alone. The bigger issue is that several automakers are reassessing EV production rates in response to slower consumer adoption. If this pattern continues, battery material demand growth may become more volatile than earlier industry forecasts suggested.

For suppliers, the shift creates a timing problem. Many battery, cathode, anode and recycling investments were planned around rapid EV market expansion. Slower model-level output can leave material producers exposed to weaker offtake, lower utilisation and price pressure.

At the same time, Volkswagen’s decision does not eliminate long-term EV demand. It shows that the transition may move in phases, with automakers balancing EVs, hybrids and combustion vehicles depending on regional demand. North America may therefore remain a more mixed powertrain market than China or parts of Europe.

The Metalnomist Commentary

Volkswagen’s ID.4 decision shows that EV strategy is now being tested by real factory economics. The energy transition is still moving forward, but automakers will increasingly prioritise models that protect utilisation, margins and supply-chain stability.

Mazda Eyes Thailand as Key Hub for Electric SUV Production

Mazda SUV

Japanese automaker Mazda is setting its sights on Thailand to become the main production base for its electric and electrified compact SUVs. This move is part of Mazda’s broader strategy to expand its electric vehicle (EV) footprint and to meet the rising demand for environmentally friendly vehicles across the ASEAN region. The investment aligns with Thailand’s ambitions to be a central player in the electric vehicle manufacturing sector.

Strategic Investment in Thailand’s EV Industry

Mazda announced an additional investment of 5 billion baht ($148 million) in Thailand. According to Thailand’s Board of Investment (BOI), this significant financial commitment will enable Mazda to produce up to 100,000 electrified compact SUVs per year. The investment will not only support domestic demand but also fuel exports to Japan and other ASEAN nations, enhancing Mazda’s regional presence.

The investment will focus on two of Mazda’s key manufacturing facilities in Thailand: the Mazda Powertrain Manufacturing Thailand and the AutoAlliance plant. The latter is a joint venture between Mazda and U.S. automaker Ford. The company plans to enhance its vehicle production lines, including the development of engine and electric vehicle battery production, to support the company’s future electrified product offerings.

Mazda’s Strategic Shift Toward Electrification

This investment marks the beginning of Mazda’s gradual shift towards electric vehicle production. According to Masahiro Moro, Mazda’s President and CEO, this is just the start of their transition to xEV (electric vehicle) production. In 2024, like many of its Japanese counterparts, Mazda faced operational challenges, including the suspension of production due to scandals involving tampered safety test results. Despite this, Mazda is taking proactive steps to strengthen its position in the rapidly growing EV market.

The Thai market itself saw a decline in car production in 2024, with a 20% year-on-year drop, according to the Federation of Thai Industries (FTI). However, the Thai government’s support for the electric vehicle industry, including the extension of the BEV production requirements, is expected to provide a significant boost. As of the end of 2024, Thailand had produced nearly 10,000 battery electric vehicles (BEVs), signaling the country’s readiness to be a significant player in the EV landscape.

Conclusion: A Green Future for Mazda and Thailand’s Automotive Sector

Mazda’s focus on Thailand as an EV production hub reflects both the company’s commitment to sustainability and Thailand’s strategic importance in the global automotive industry. As Mazda advances its electrified product line, it aims to capitalize on Thailand’s growing automotive ecosystem and favorable policies supporting EV production. The company’s long-term goals will likely help strengthen both Thailand’s automotive sector and Mazda’s position in the global EV market.

Stellantis Leapmotor Spain BEV Production Plan Signals Localised Chinese EV Strategy

Stellantis

Stellantis Leapmotor Spain BEV production plans could mark a new phase in Europe’s electric vehicle supply chain, as western automakers look to combine local assembly with lower-cost Chinese components. Stellantis and Leapmotor are considering new battery electric vehicle lines at Zaragoza and Villaverde in Spain through their Leapmotor International joint venture.

Stellantis Leapmotor Spain BEV production would move the partnership beyond vehicle imports and toward European manufacturing. That shift matters because local content rules, tariff risk and regional supply security are becoming more important in the EV market.

Stellantis Leapmotor Spain BEV production could also help the companies respond to weaker European affordability conditions. Chinese component sourcing can lower cost, while Spanish assembly may improve regulatory and commercial positioning inside Europe.

The companies have not disclosed production targets, utilisation rates or investment figures. This leaves the scale of the plan uncertain, but the strategic direction is clear.

Spain Could Become a European Platform for Leapmotor Models

Zaragoza could gain a new all-electric SUV line as early as this year. The plant has long been associated with Opel production and could become a base for new BEV output under the joint venture.

Villaverde in Madrid may also become more important to Leapmotor International. The plant faces a production gap after Citroen C4 output ends and may shift entirely to Leapmotor models by 2029.

That potential transition would give Stellantis a way to protect industrial activity at existing Spanish plants while adding lower-cost BEV models to its European portfolio.

The plan reflects a broader industry pattern. European automakers are trying to defend market share against Chinese EV competition while also using Chinese platforms, components and cost structures to improve competitiveness.

Stellantis bought a 21% stake in Leapmotor in 2023 and created a 51-49 joint venture to sell and manufacture Leapmotor vehicles outside China. Spain could now become one of the key production bases for that strategy.

For Spain, the opportunity is industrial. More BEV assembly could support jobs, supplier activity and demand for local logistics, batteries, wiring, aluminium components and electronics integration.

Local Assembly Meets Cost Pressure and Supply-Chain Rules

The move from imports to local production is strategically important. European BEV manufacturing is increasingly shaped by tariffs, local content rules, battery sourcing requirements and political pressure to keep vehicle production inside the region.

Leapmotor brings cost-competitive EV engineering and components. Stellantis brings European plants, distribution, regulatory experience and manufacturing scale.

This combination could help address one of Europe’s biggest EV problems: producing affordable electric vehicles while maintaining regional industrial capacity.

However, the lack of disclosed volumes makes the market impact difficult to judge. Without production targets, it is unclear whether the Spain plans will materially change Stellantis’ European BEV output.

Stellantis needs stronger BEV momentum. Its BEV sales accounted for around 13% of output in the first half of last year, behind Volkswagen and BMW, and the company later reported a major write-down after cutting prices.

Leapmotor is growing much faster. Its EV sales, including plug-in hybrids, more than doubled last year to 596,000 units. That growth gives Stellantis access to a Chinese partner with clear scale momentum.

The industrial implication extends into materials. More European BEV production increases demand for aluminium body and structural parts, copper wiring, electrical steel, battery materials, power electronics and lightweight components.

If the model works, Stellantis and Leapmotor could create a template for Chinese-designed, Europe-built EVs. That would reshape competition not only in vehicles, but also in the upstream materials and component chains that support regional BEV manufacturing.

The Metalnomist Commentary

Stellantis and Leapmotor are not only discussing new Spanish EV lines; they are testing a hybrid supply-chain model for Europe. Local assembly with Chinese components may become a practical route for automakers caught between cost pressure, tariff risk and the need to keep European factories active.

SK On Secures $9.6B Loan for US Battery Plants, Boosting EV Production Capacity

BlueOval SK

South Korean battery manufacturer SK On has successfully secured a loan of up to $9.6 billion for the construction of three new battery plants in the United States. The plants, located in Tennessee and Kentucky, will have a combined production capacity of 120 GWh per year, primarily dedicated to supplying batteries for Ford Motor's electric vehicles (EVs), including models under the Ford and Lincoln brands.

Major Investment in EV Battery Production

This loan, the largest ever awarded under the U.S. Department of Energy’s (DOE) Advanced Technology Vehicles Manufacturing Program, is a significant step towards bolstering the country’s position in the rapidly expanding electric vehicle (EV) market. The funds will be used to develop three state-of-the-art battery production facilities, which are set to contribute to Ford’s ambitious EV production goals.

The collaboration between SK On and Ford Motor has already led to the formation of BlueOval SK, a joint venture designed to build the largest EV battery production operation in the U.S. Despite the recent slowdown in the EV industry, which prompted Ford to delay the construction of its second Kentucky plant in October 2023, production at the first two plants is still scheduled to commence in 2025.

Strategic Importance of the DOE Loan

This loan represents a key investment in the future of the U.S. automotive and energy sectors. As the U.S. seeks to meet rising domestic demand for EVs and maintain its leadership in the global electric vehicle market, the DOE's Advanced Technology Vehicles Manufacturing Program plays a vital role in providing financial support for innovative technologies. By securing this funding, SK On ensures it is well-positioned to support Ford’s EV ambitions while contributing to the nation's electrification goals.

With the ongoing growth of Ford's electrified vehicle sales—reaching 257,693 units between January and November 2024, marking a 40% increase from the same period last year—this new production capacity is expected to play a pivotal role in meeting rising demand. SK On’s battery production capabilities have also seen growth, with the company’s installations increasing by 9.5% year-on-year, capturing 4.5% of the global market share, according to SNE Research.

BYD Achieves Record-High EV Production and Sales in 2024, Cementing Market Dominance

BYD

China’s leading new energy vehicle (NEV) manufacturer, BYD, has set a new industry benchmark by exceeding 4 million units in EV production and sales in 2024. With a 41% year-on-year growth, BYD continues to dominate the global NEV market, reinforcing its commitment to battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs).

BYD’s Historic NEV Production and Sales Growth

BYD’s total NEV production for 2024 reached 4.304 million units, marking a 41% increase from 2023. Notably, the company completely ceased production of gasoline-powered vehicles in March 2022, focusing entirely on electric mobility.

• December 2024 Production: 466,441 units, a 41% increase from the previous year.

• BEVs: 189,759 units (+7.6% YoY)
• PHEVs: 270,960 units (more than double YoY)

• Total 2024 Sales: 4.272 million units, accounting for 100% of BYD’s vehicle sales.

• December Sales: 514,809 units (+41% YoY)
• BEV Sales: 207,734 units (+8.9% YoY)
• PHEV Sales: 301,706 units (more than double YoY)

These figures place BYD at the forefront of China’s rapidly expanding NEV industry, which produced 11.345 million units between January and November 2024—a 35% increase compared to the previous year. Industry experts forecast that China’s total NEV sales will surpass 13 million units in 2024, further solidifying the country’s leadership in EV adoption.

BYD’s Power Battery Expansion and Market Position

In addition to its dominance in the EV sector, BYD is also a major player in power and energy storage batteries. The company installed 23.495GWh of power batteries in December and 194.705GWh throughout 2024—a 29% year-on-year increase.

BYD ranks second among China’s top power battery manufacturers:

1. CATL (Contemporary Amperex Technology): 211.7GWh (45% market share)
2. BYD: 117.5GWh (25% market share)
3. CALB: 32.3GWh (7% market share)

These figures indicate BYD’s growing influence in the global lithium battery market, positioning it as a formidable competitor to CATL in the race for next-generation energy storage solutions.

Conclusion

BYD’s record-breaking EV production and sales in 2024 underscore its dominance in China’s NEV and battery industries. With strong growth in both BEV and PHEV sales, the company is well-positioned to expand its global market share. As China’s NEV production surpasses 13 million units in 2024, BYD’s continued investment in power batteries and energy storage will further reinforce its standing as a global EV leader.

Ford First-Quarter Sales Fell as Aluminium Supply and EV Weakness Hit Deliveries

Ford EV

Ford first-quarter sales fell in January-March as lower F-Series truck deliveries, weaker EV demand, and aluminium supply disruption weighed on the US automaker. Total vehicle sales declined by 8.8% on the year to 457,000 units.

Ford first-quarter sales were affected by production timing as the company worked to recover lost output tied to Novelis outage at its Oswego, New York, aluminium rolling facility. The disruption has exposed how dependent high-volume vehicle platforms are on stable aluminium sheet supply.

Ford first-quarter sales also reflected weaker electric vehicle momentum. Sales of all-electric and hybrid models fell by 35% to 48,000 units, while internal combustion engine vehicle sales declined by 4.3% to around 409,000 units.

F-Series Production Shows Aluminium Supply Chain Vulnerability

Ford’s F-Series truck sales fell by 16% on the year to 160,000 units in the first quarter. F-150 production declined by 11% to 137,700 trucks, while Super Duty output dropped by 17% to 74,900 units.

The decline matters because the F-Series is one of Ford’s most important profit engines. Any production disruption in the truck platform can have an outsized effect on revenue, margins, dealer inventory, and supplier scheduling.

The Novelis Oswego outage remains a key constraint. Ford expects the recovery in vehicle production to be weighted toward the second half of 2026, while warning that Novelis’ restart could be uneven.

Ford previously estimated that temporary aluminium sourcing costs could reach $1.5bn-2.5bn this year because of the Oswego fires. That cost pressure shows how one upstream rolling disruption can flow directly into automotive manufacturing economics.

EV Sales Weakness Adds Pressure to Ford’s Product Mix

Ford first-quarter sales were also hit by the company’s shift away from some EV production and the expiration of EV tax credits. Reduced availability of discontinued models added further pressure to deliveries.

SUV sales fell by 7.8% to 186,000 units, while Mustang sales rose by 50% to 14,000 units. This mixed performance shows that Ford’s portfolio remains uneven as the company balances combustion vehicles, hybrids, EVs, and high-margin trucks.

The EV decline is strategically important because automakers are still trying to manage battery costs, consumer demand, policy incentives, and production discipline. Lower EV volumes can affect demand for battery materials, power electronics, aluminium structures, copper wiring, and rare earth magnet supply chains.

For the wider metals market, the bigger lesson is clear. Automotive demand is not only shaped by consumers, but also by material availability, rolling capacity, battery economics, and policy support.

The Metalnomist Commentary

Ford’s results show that automotive production is now highly exposed to upstream material bottlenecks. The Novelis outage turned aluminium sheet supply into a direct constraint on truck output, while weaker EV sales added another layer of demand uncertainty.

China's BYD Begins EV Production in Uzbekistan

China's top electric vehicle (EV) maker, BYD, has officially kicked off EV production in Uzbekistan through a joint venture. Back in December 2022, BYD teamed up with Uzbekistan's Uzavtosanoat JSC (UzAuto) to cater to the rising demand for EVs in Central Asia. The first phase of production aims to roll out 50,000 units annually, focusing on BYD's Song Plus DM-i and Destroyer 05 hybrid plug-in EVs. Specific details about future development phases haven't been revealed yet.

Located in Jizzakh state in eastern Uzbekistan, the plant produced its first BYD Song Plus DM-i vehicle on June 27. This event marks the beginning of mass production at the facility and is expected to significantly boost vehicle electrification in the country, said BYD chairman Wang Chuanfu.

BYD has also signed a green transportation cooperation initiative with the Uzbek government to promote the country's EV development. The company began selling EVs in Uzbekistan in March 2023.

Chinese EV makers, including BYD, have been ramping up their global expansions to manage potential oversupply and address geopolitical challenges from the US and Europe. BYD has invested in EV production in Hungary, Thailand, Brazil, Morocco, India, and Vietnam, with a total planned capacity of around 1 million units per year.

Since 2022, BYD has been the world's largest producer of new energy vehicles (NEVs), manufacturing 1.29 million NEVs from January to May, a 26% increase compared to the previous year. During the same period, sales rose by 27% to 1.27 million units. In 2023, BYD's NEV sales surged to 3.024 million units, up 62% from the previous year. The company is also a leading EV exporter in China, with over 176,000 units shipped from January to May.

Honda Ontario EV Plan Suspended Amid Slower Market Growth Projections

Honda EV

Honda suspended its ambitious C$15 billion ($10.7 billion) Honda Ontario EV plan to build a comprehensive electric vehicle value chain in Canada. Chief Executive Toshihiro Mibe announced the two-year delay during the company's first-quarter earnings presentation, citing slower-than-expected EV market growth. The Honda Ontario EV plan postponement represents a significant setback for Canada's battery materials supply chain development and critical mineral processing ambitions.

Comprehensive Battery Supply Chain Project Faces Market Reality

The Honda Ontario EV plan encompassed a complete electric vehicle manufacturing ecosystem in Alliston, Ontario, including an EV assembly plant and standalone battery manufacturing facility. Honda partnered with Posco Future M to develop cathode and precursor materials facilities while collaborating with Asahi Kasei on separator plant construction. Meanwhile, this integrated approach aimed to reduce supply chain dependencies while supporting Honda's goal of 100% battery and fuel cell EV sales by 2040.

The comprehensive nature of the Honda Ontario EV plan positioned Canada as a strategic hub for North American electric vehicle production. Honda's investment would have created substantial demand for Canadian critical minerals, particularly lithium, nickel, and cobalt for battery cathode materials. However, slower market adoption rates have forced automakers to reassess their aggressive electrification timelines and associated capital investments.

Critical Mineral Processing Ambitions Face Automotive Headwinds

Canada's strategy to capture value from its abundant critical mineral resources through downstream processing suffers a major blow from the Honda Ontario EV plan suspension. The project represented a key opportunity to establish domestic battery materials manufacturing capabilities using Canadian lithium, nickel, and graphite resources. As a result, the delay undermines government efforts to build integrated critical mineral supply chains within North America.

Posco Future M's planned cathode and precursor facilities would have processed Canadian-sourced critical minerals into high-value battery materials for Honda's EV production. The partnership promised technology transfer and manufacturing expertise to establish Canada's position in global battery supply chains. Therefore, the Honda Ontario EV plan postponement reduces near-term demand prospects for Canadian critical mineral producers seeking domestic processing partnerships.

The two-year delay reflects broader challenges facing automaker electrification strategies as consumer adoption lags initial projections. Honda joins other manufacturers reassessing EV investment timelines amid market uncertainty and profitability concerns. Consequently, critical mineral demand growth may moderate as automakers adjust production capacity plans to match actual market conditions.

The Metalnomist Commentary

Honda's decision to pause its massive Ontario investment reflects the gap between aggressive EV transition rhetoric and market reality, highlighting risks for critical mineral producers banking on rapid battery demand growth. This setback underscores the importance of diversified demand strategies for Canadian critical mineral projects, as automotive electrification timelines prove more volatile than anticipated across the industry.

Japan Increases EV Subsidies to Promote Green Steel Usage

Japan EV

New Incentives to Drive Adoption of Environmentally Friendly Steel

Japan's Ministry of Economy, Trade and Industry (Meti) has announced an increase in electric vehicle (EV) subsidies starting April 1st, aiming to promote the use of green steel. The new measure will provide up to ¥50,000 ($321) in additional financial support, expanding the subsidy to a total of ¥900,000 per EV, depending on the model and size, if it is manufactured with green steel. The initiative is part of Japan's broader green transformation policy to reduce greenhouse gas (GHG) emissions.

Meti has secured a budget of ¥110 billion for the EV subsidy program. The main objective of this increase is not only to boost EV demand but also to support the domestic steel industry. Green steel, though more expensive to produce, has the same functionality as conventionally produced steel, which emits higher GHGs. Meti is addressing concerns among domestic steel producers, who fear the higher production costs of green steel may deter consumers.

Shifting Steel Production to Electric Arc Furnaces

Japan's steel industry is making efforts to reduce GHG emissions, especially through the transition to electric arc furnaces (EAFs). However, EAF plants require significant investment and face various technical challenges. Japan's largest basic oxygen furnace (BOF) producer, Nippon Steel, began commercial operations of an EAF in 2022, and JFE Steel plans to launch its own EAF by 2027. Additionally, Kobe Steel intends to replace one of its BOFs with an EAF facility by 2027.

Despite these advancements, the Japan Iron and Steel Federation (JISF) reported a 3.4% decline in EAF-produced crude steel in 2024, with EAF production accounting for 26.2% of the country’s total crude steel production.

Challenges in Boosting Green Steel Production and EV Sales

Although Meti's measures aim to increase green steel production, there are doubts about their effectiveness, given the sluggish performance of the domestic EV market. Sales of domestic passenger EVs in Japan plummeted by 33% in 2024, largely due to reduced demand for local EV brands. EVs accounted for only 1.5% of total passenger vehicle sales in Japan, down by 0.7 percentage points from the previous year. This decline raises questions about whether the increased subsidies will be enough to stimulate demand for both green steel and EVs.

Tesla and Rivian EV Deliveries Rise as US Tax Credit Expires

Tesla

Tesla and Rivian EV deliveries surged in the third quarter as US buyers raced to secure incentives. The jump in Tesla and Rivian EV deliveries highlights how strongly policy deadlines can pull demand forward. As a result, automakers now face a more uncertain sales outlook in a post-incentive US EV market.

Tesla and Rivian EV deliveries both increased, but their strategic positions differ. Tesla delivered more than 497,000 vehicles in the quarter, up by 7pc year on year. Meanwhile, Rivian delivered 13,201 vehicles, marking a 32pc increase from a year earlier. This divergence shows that Tesla and Rivian EV deliveries are growing from very different scales, with Tesla defending volume leadership and Rivian still in ramp-up mode.

However, much of the strength in Tesla and Rivian EV deliveries reflects a rush ahead of policy change. US consumers accelerated purchases before the $7,500 federal EV tax credit expired on 30 September. This incentive had supported EV affordability and narrowed the cost gap with combustion models. Now that the tax credit has ended, manufacturers must rely more on price cuts, financing offers and brand strength.

Energy storage and competition reshape the US EV landscape

Tesla’s third quarter also underlined its shift into broader clean-energy infrastructure. The company deployed 12.5GWh of energy storage products, an 81pc increase from the third quarter of 2024. These storage deployments support grid stability and fast-charging networks, and they diversify earnings beyond vehicle sales. As a result, Tesla’s integrated model may cushion the impact of any slowdown in pure EV demand.

Competition around Tesla and Rivian EV deliveries is intensifying as legacy automakers scale production. General Motors reported a 107pc surge in EV deliveries to 66,501 units in the third quarter. GM expects sales to normalise in the fourth quarter, once the pre-expiry demand bulge passes. Therefore, US EV market growth will increasingly depend on sustained consumer confidence rather than one-off policy deadlines.

Rivian trims outlook as policy tailwinds fade

Rivian’s revised guidance shows the limits of relying on one strong quarter. The company narrowed its full-year delivery outlook to 41,500–43,500 vehicles. The upper end is 5pc lower than its August guidance, signalling caution on demand and ramp-up execution. Investors will watch whether Rivian can manage costs and scale production while incentives fall away.

As a result, Tesla and Rivian EV deliveries now sit at the intersection of policy, pricing and competition. The next test will be how both brands perform without the powerful pull of a federal tax credit. Their ability to hold margins, maintain growth and expand product lines will shape upstream demand for batteries, critical minerals and low-carbon materials.

The Metalnomist Commentary

The spike in Tesla and Rivian EV deliveries illustrates how sharply fiscal incentives can front-load EV demand. With the US tax credit gone, supply-chain planners from cathode producers to aluminium and copper suppliers should expect more volatile order cycles. Over the medium term, winners in the EV race will be those automakers that pair cost discipline with secure access to critical materials, not just headline delivery growth.

General Motors Advances EV Strategy with Sale of Michigan Battery Plant Stake to LGES

LGES

General Motors (GM), a leading US automaker, is set to enhance its approach to electric vehicle (EV) production by selling its stake in the Michigan battery plant to its partner, LG Energy Solution (LGES). This strategic move, expected to finalize in the first quarter of 2025, reflects GM's ongoing adjustments to its EV development plans amid fluctuating market demands.

Strategic Divestiture and Operational Shifts

GM's decision to divest its share in the $2.6 billion Michigan facility aligns with its broader strategy to recalibrate its EV production goals. The company has recently scaled down its 2024 EV production forecast, citing softening demand influenced by high costs and inadequate infrastructure, which are hindering the adoption of electric models. By selling the stake to LGES, GM aims to recoup its initial investment, allowing for a more flexible response to the evolving EV market.

Expanding Battery Technology Partnerships

In addition to the sale, GM is deepening its collaboration with LGES by developing prismatic-style battery cells. This new venture is anticipated to innovate battery technology by reducing weight and costs, thanks to the space-efficient design of prismatic cells compared to traditional pouch-style cells. GM's plans include potentially producing these advanced cells at its Ultium facilities in Warren, Ohio, and Spring Hill, Tennessee, which are already active in producing pouch-style battery cells and will adjust production based on market demand.

Thailand Extends Deadline for BEV Production Commitments Amid Auto Industry Challenges

Thailand's Federation of Thai Industries

Extension of Commitment Deadlines

The National Electric Vehicle Policy Board of Thailand has announced an extension for battery electric vehicle (BEV) manufacturers to meet their production commitments originally set for this year. The extension, confirmed by the country's Board of Investment (BOI), comes in light of the challenges faced by the auto industry, including reduced production outputs and the impacts of global economic conditions.

Updated Production and Subsidy Guidelines

Under the first phase of Thailand’s EV promotion, known as EV 3.0 measures, BEV manufacturers who received subsidies were required to produce one BEV in 2023 for every vehicle they imported during 2022-2023. This obligation will now increase to producing 1½ BEVs by 2025 for every imported vehicle as part of the updated EV 3.5 measures. However, any unfulfilled commitments from the current year will not qualify for retroactive subsidies but must be met under the new EV 3.5 guidelines before any future subsidies can be applied.

Manufacturers who fail to meet their production quotas under the EV 3.0 scheme will see their unfulfilled obligations roll over into the next phase without the benefit of initial subsidies, as outlined by the BOI on December 4. This strategic adjustment aims to maintain investment momentum in Thailand’s burgeoning electric vehicle market.

Broader Industry Impact

The extension reflects broader challenges within Thailand’s automotive sector, as highlighted by the Federation of Thai Industries (FTI). The FTI has revised down the country's auto production forecast for 2024 twice this year, with the latest figures suggesting a drop from an initial 1.9 million units to 1.5 million units. This downturn is mirrored in the production statistics from January to October, showing a 19% decrease year-over-year, with significant reductions in domestic sales and exports as well.

Despite these setbacks, the production of electric vehicles shows a promising trend, with the production of battery passenger cars, hybrid passenger cars, and plug-in hybrid passenger cars reaching significant numbers. Furthermore, the National Electric Vehicle Policy Board’s recent decision to temporarily reduce the excise tax rate for hybrid EVs from 2028 to 2032 is expected to stimulate approximately 50 billion baht ($1.4 billion) in new investments, provided manufacturers comply with strict CO2 emissions standards and continue to invest in local production capabilities.

Freeport-McMoRan Plans Copper Mine Expansions in Arizona and Chile

Freeport-McMoRan Copper

Freeport-McMoRan, the Arizona-based mining giant, has announced ambitious plans to expand its copper mining operations to meet the rising demand for the metal, particularly driven by electric vehicle (EV) production and infrastructure development. The company outlined key projects in Arizona and Chile slated for 2025 and beyond.

Expansion Projects in Arizona and Chile

• Bagdad Mine (Arizona): Freeport plans to double the concentrator capacity of the Bagdad mine to produce 200–250 million lbs of copper annually. It is set to become the first Freeport mine with a fully autonomous haulage system, transitioning its fleet to 100% automation.
• Lonestar/Safford Mine (Arizona): Exploration studies are ongoing, with results expected by late 2024. This could pave the way for significant capacity increases.
• El Abra Mine (Chile): An expansion at the El Abra site is under review, with environmental impact studies scheduled for submission by the end of 2025.

Copper Production Trends and Market Dynamics

In the third quarter, Freeport's copper production fell 3% year-on-year to 1.05 billion lbs, but year-to-date production remains up by 1.8% at 3.17 billion lbs. Consolidated molybdenum production for the quarter was steady at 20 million lbs, though year-to-date figures are down 6% to 58 million lbs.

Despite the mixed production figures, copper prices averaged $4.32/lb during the quarter, a notable increase from $3.86/lb in the previous year, bolstering revenues.

Regional Production Overview

1. North America: Copper production dropped by 9% to 313 million lbs due to lower ore grades and operating rates, with the Morenci joint venture experiencing the most significant decline. However, molybdenum production in the region rose by 14% to 8 million lbs.
2. South America: Copper output decreased by 2% to 299 million lbs, largely attributed to shipment timing and reduced output at Cerro Verde.
3. Indonesia: Copper production rose by 0.7% to 439 million lbs. However, a fire at the Manyar smelter in October may impact fourth-quarter figures.

Financial Performance

Freeport reported a quarterly profit of $526 million, up from $454 million a year ago, supported by a revenue increase to $6.8 billion from $5.8 billion.

Demand Outlook

Freeport is cautiously optimistic about the future of copper demand, citing:

• Increased EV-related demand from China, supported by anticipated government stimulus.
• Balanced US demand with strong performance in power cable and building wire markets offsetting weaknesses in residential and auto sectors.

With these expansions, Freeport-McMoRan is positioning itself to capitalize on growing copper demand while navigating regional production challenges.

Stellantis Invests in Italy Electric Motor Plant to Advance EV Strategy

Stellantis

Stellantis invests €38mn in Italian plant to expand EV motor component production and strengthen European electric vehicle supply chain.

New Investment to Expand Stellantis Electric Motor Production in Italy

Stellantis will invest €38 million ($41.1 million) in its Verrone, Italy plant to build electric motor components. The funding will support the installation of 56 new machine tools, enabling an output of 400,000 components per year. Stellantis may expand this capacity to 600,000 units in the future. Production is scheduled to start by 2027.

The move represents another strategic step in Stellantis' transition from internal combustion engines (ICE) to electric vehicles (EVs). This investment also aligns with the company’s plan to boost local manufacturing and maintain its industrial base in Italy. In January, Stellantis announced plans to produce electrified dual-clutch transmissions for hybrid cars in Italy.

EV Sales Decline But Stellantis Doubles Down on Electrification

Stellantis' global sales dropped to 5.7 million units in 2024, down from 6.2 million in 2023. Full electric vehicle sales also declined to 314,500 units, compared with 369,000 units in the previous year. Despite this, the company is increasing investment in long-term EV infrastructure to future-proof its European operations.

Meanwhile, Stellantis’ push to localize EV production aligns with broader EU goals to reindustrialize the clean tech sector. With supply chain risks growing, building electric motor parts domestically offers greater security and cost stability. This investment could also stimulate supplier ecosystems in northern Italy and contribute to job preservation.

The Metalnomist Commentary

While EV sales have slowed, Stellantis is thinking long-term. Strategic investments like this suggest a pivot toward in-house component production and regional manufacturing resilience. This move also signals confidence in the EU’s clean mobility future, despite current market volatility.

EV demand low into early 2026 forces GM to reset its EV roadmap

GM

EV demand low into early 2026 is forcing GM to reset its electrification roadmap. The company now expects a sharp slowdown in US EV demand from October, with weakness extending into early 2026. As a result, GM EV strategy will focus less on volume and more on profitability, cost reduction and flexible product planning while EV demand low into early 2026 reshapes investment priorities.

EV demand low into early 2026 shifts focus from growth to profitability

GM is refocusing its EV portfolio on returns as EV demand low into early 2026 erodes earlier growth assumptions. Management will target lower material costs through larger battery modules and new chemistries, seeking better pack economics across upcoming models. This shift shows how GM EV strategy is moving from pure scale to margin protection in a cooling market.

However, the company still holds a meaningful EV position despite the slowdown. GM delivered more than 66,000 EVs in the US during the third quarter, capturing a 16.5pc market share. Even so, the $1.6bn charge tied to converting the Orion, Michigan plant back to internal combustion output signals a decisive retreat from some earlier EV capacity bets. GM will also end production of its BrightDrop electric delivery van after weaker than expected fleet demand.

Tariff exposure falls as GM doubles down on North American supply chains

Tariff relief and localisation are cushioning GM as EV demand low into early 2026 complicates planning. The company cut its 2025 tariff exposure by $500mn, now guiding to $3.5bn-4.5bn in potential duties. Recent tariff measures on some vehicle imports have had limited impact on GM because of years spent strengthening North American supply chains.

As a result, sourcing strategies have become a core pillar of GM EV strategy. Management highlighted investments in magnet supply and its stake in Lithium Americas as examples of upstream de-risking. These moves help secure critical materials for both EV and hybrid programs while limiting exposure to geopolitical shocks. Still, quarterly profit fell to $1.3bn from $3bn a year earlier, underlining how a softer EV ramp and restructuring costs weigh on near-term earnings.

The Metalnomist Commentary

GM’s reset shows that profitability is now the dominant theme in Western EV markets. For metals producers, slower EV growth into 2026 could delay some demand, but localisation of magnets, batteries and power electronics remains structurally bullish. Suppliers that can offer both competitive pricing and North American footprint will be best positioned as GM and peers rebalance their EV roadmaps.

Hyundai Motor and LGES Jointly Complete EV Battery Plant in Indonesia

This photo provided Hyundai Motor Group shows an aerial view of HLI Green Power, an EV battery plant built jointly with LG Energy Solution in Indonesia

Hyundai Motor Group announced the completion of its electric vehicle (EV) battery plant in collaboration with LG Energy Solution in Indonesia. This development marks a significant step in establishing a fully-integrated EV production system in the Southeast Asian nation. The Hyundai LG Indonesia Green Power (HLI Green Power) battery plant, located in Karawang New Industry City, will supply battery cells for the mass production of the KONA Electric EV at Hyundai's local manufacturing plant starting this month.

The establishment of this plant enables Hyundai to leverage a local, integrated production system, enhancing its strategic position in the Southeast Asian EV market. Production at HLI Green Power began in the second quarter of this year.

A grand completion ceremony was held, attended by 300 dignitaries, including Indonesian President Joko Widodo and key officials from both nations. Hyundai Motor Group's executive chair Euisun Chung highlighted the collaboration’s success in his speech, emphasizing the joint efforts in shaping the future of the EV ecosystem globally.

HLI Green Power, spanning 320,000 square meters, boasts advanced facilities with an annual output capacity of 10 gigawatt-hours, supporting over 150,000 EVs. The battery cells will be utilized not only in Hyundai’s Indonesian plant but also in various Hyundai and Kia models worldwide. Following the Ioniq 5, the KONA Electric is expected to significantly impact the Indonesian EV market.

Indonesia aims to achieve carbon neutrality by 2060 and plans to produce 600,000 EVs by 2030. Hyundai Motor Group is committed to furthering cooperation with Indonesia in other innovative areas, including hydrogen solutions and future air mobility.

Neo Estonia Magnet Production Begins with First Traction Motor Samples

Neo Performance Materials

Neo Performance Materials has shipped its first samples under its new Neo Estonia magnet production facility. The company produced 18,000 sintered magnet units at its Narva plant, meeting electric vehicle (EV) traction motor standards. These magnets are now being tested by a key European customer for performance validation.

Strategic Facility Targets EV Supply Chain Localization

The Estonia plant has an initial capacity of 2,000 t/yr, with plans to scale to 5,000 t/yr. It marks a critical step in Europe's strategy to localize its EV supply chain. Backed by Export Development Canada and the EU’s Just Transition Fund, the $75 million facility is designed to reduce reliance on Asian magnet suppliers.

Commercial Production Expected by Late 2026

Neo expects to receive production part approval in early 2026. Full commercial production is set to begin later that year. A leading European EV traction motor manufacturer has already secured 35% of the plant’s first-phase output, confirming strong early demand for Neo Estonia magnet production.

The Metalnomist Commentary

Neo’s new Estonia facility demonstrates how permanent magnet supply chains are shifting westward. With EV demand growing, Neo Estonia magnet production could be a cornerstone of European critical materials independence.

Ford Starts Battery Pack Assembly in Germany

Ford Battery Pack

Ford Expands EV Production with Cologne Battery Facility

Ford has begun mass assembly of electric vehicle battery packs at its Cologne, Germany plant, marking a major step in the automaker’s $2bn European electrification strategy. The facility will directly align with Ford’s nearby Cologne Electric Vehicle Center, enabling integrated production of the Capri and Explorer EV models, which will deliver ranges of up to 627km and 602km.

The highly automated production line, spanning 2km, uses 180 robots to weld, glue, and assemble the battery housing. Each battery pack consists of 2,775 individual parts and up to 12 modules, underscoring Ford’s commitment to advanced manufacturing efficiency and scale.

Strategic Supply Agreements for EV Battery Materials

Ford has also secured long-term supply deals to ensure stable access to critical materials. In October 2024, LG Energy Solution signed a contract to deliver 109 GWh of batteries from 2026, with terms extending up to six years. Meanwhile, US specialty chemicals firm Albemarle agreed to supply over 100,000 tonnes of lithium hydroxide between 2026 and 2030.

These partnerships highlight Ford’s focus on securing raw materials essential for its EV expansion. The agreements align with global trends of automakers locking in lithium and battery supply to mitigate price volatility and ensure future production capacity.

The Metalnomist Commentary

Ford’s Cologne investment reflects the growing importance of localized EV battery production in Europe. By integrating supply agreements with global partners, Ford strengthens its resilience against supply chain disruptions. This strategy not only supports its electrification roadmap but also places it in direct competition with European and Asian automakers accelerating EV deployment.