Can't they force tech transfer?
New Energy Vehicles (NEVs) in China
- Thread starter supercat
- Start date
Can't they force tech transfer?
This is very important
BYD should be very aware of the supply chain. Without GF3 (Shanghai giga), Tesla simply can't ramp up production. GF3 accounts for almost 2/3 of all Tesla production right now. Tesla is waiting on the German politicians
Simply put, raising production outside of China is just not possible.
One reason is batteries. GF3 will very soon only be using Chinese batteries. It's German plant uses blade battery. The American factories will have to use Korean ones if Chinese batteries are not available. And based on the previous Taylor tweet, Koreans don't want to share their technology. Also, Korean batteries rely on Chinese supply chain. There is a whole host of WTO compliance issue with IRA. There are some reports of Tesla looking to find ways around battery supply to qualify for the EV tax credits, but that still requires battery maker to cooperate. Tesla itself is not capable of mass producing batteries cheaply.
that bottom paragraph didn't get translated, but you can get a gist of what BYD is saying here.
BYD should be very aware of the supply chain. Without GF3 (Shanghai giga), Tesla simply can't ramp up production. GF3 accounts for almost 2/3 of all Tesla production right now. Tesla is waiting on the German politicians
Simply put, raising production outside of China is just not possible.
One reason is batteries. GF3 will very soon only be using Chinese batteries. It's German plant uses blade battery. The American factories will have to use Korean ones if Chinese batteries are not available. And based on the previous Taylor tweet, Koreans don't want to share their technology. Also, Korean batteries rely on Chinese supply chain. There is a whole host of WTO compliance issue with IRA. There are some reports of Tesla looking to find ways around battery supply to qualify for the EV tax credits, but that still requires battery maker to cooperate. Tesla itself is not capable of mass producing batteries cheaply.
that bottom paragraph didn't get translated, but you can get a gist of what BYD is saying here.
supercat
Major
High-nickel cathode company - South Korea EV battery makers really bet their houses on the wrong battery chemistry. Still, this will affect quite a few premium NEV brands worldwide and South Korea's own companies downstream. Such move will also demonstrate the importance of China's EV battery supply chain again.
It was inconceivable that China could develop an engine for a sports super car during the ICE era. Yet here we are, the 1,225 hp (1.5 times the Formula 1 standard) and 12,000 Nm (8850 ft-lb) electric motor that gives a 1.9-second acceleration to 100 km (62 miles) was developed by GAC Aion in-house.
A 10-second car, as us car nuts in the south would have called it. The issue is no longer the power train. Rather, if the chassis torsion rigidity can handle that much power and torque.
I thought NIO did it with the ep9?
Everybody is too focused on the phased-in EV tax credit. Worst case scenario no company gets the EV tax credit in US, the playing field is still balanced between domestic EV makers.
Here is the problem. The Republicans don't want America to get into evs, because they think it will help china. The democrats want to get into evs, but they bought into the big 3 bs that legacy auto can take over the market. They have no concept of how much the entire ev supply chain depends on china. The entire industry only has 2 viable paths to batteries: china and Korea. And the Koreans rely on Chinese supply chain, because the biggest market in the world is china. So unless Koreans are willing to set up separate supply chain that's china free, there is no avoiding china. America is too small of a market to warrant special treatment at the moment.
Other problem is that you can never achieve low cost production of evs until you rely on Chinese supply chain. You can never scale up production until you rely on Chinese supply chain. So you are going to get a situation where Tesla continue to expand in Shanghai and exporting production there to rest of the world. It doesn't matter that Tesla will probably need to pay 10% tariff to export to Europe since the production cost at Shanghai is so much lower than Berlin. At some point, it's going to make sense for Tesla to export cars from Shanghai to America even with the tariffs.
Other problem is that you can never achieve low cost production of evs until you rely on Chinese supply chain. You can never scale up production until you rely on Chinese supply chain. So you are going to get a situation where Tesla continue to expand in Shanghai and exporting production there to rest of the world. It doesn't matter that Tesla will probably need to pay 10% tariff to export to Europe since the production cost at Shanghai is so much lower than Berlin. At some point, it's going to make sense for Tesla to export cars from Shanghai to America even with the tariffs.
Yikes, Elon might go full Wumao when that happens. Hopefully it won’t come to that.