Toyota is going all-in on game-changing tech, but guess where CATL is heading?

Title: The Rise of Chinese Influence in the Electric Vehicle Market and the Pursuit of Solid-State Battery Technology

Introduction:
In recent years, the electric vehicle (EV) market has experienced significant growth and transformation, with Chinese automakers and component makers emerging as key players. This shift in dynamics has prompted major Japanese automakers like Toyota and Nissan to reassess their strategies and explore new technologies, such as solid-state batteries. Additionally, Microsoft’s decision to relocate top AI researchers from Beijing to Vancouver reflects the geopolitical tensions between the US and China. Meanwhile, Indonesia’s increasing nickel production threatens to disrupt the global supply chain for EV batteries and stainless steel industries.

I. The Evolving EV Market Landscape:
A. Chinese dominance in the EV market
1. Nissan engineer’s realization of the importance of Chinese-made parts
2. Tesla’s investment in a large-scale EV factory in Shanghai
3. Japanese automakers’ diminishing presence and the need to regain market share

B. Solid-state batteries as the next-generation technology
1. Toyota’s plans to release an EV with solid-state battery by 2027
2. Nissan and BMW’s solid-state battery ambitions
3. The advantages of solid-state batteries in terms of charging time and range

II. CATL’s Expansion Into Thailand:
A. CATL’s decision to open a battery assembly factory in Thailand
1. Partnership with Arun Plus, a subsidiary of Thailand’s state-owned oil company PTT
2. Thailand’s ambition to become an electric vehicle hub in Southeast Asia
3. Planned capacity and target production volumes

III. Microsoft’s Relocation of AI Researchers:
A. The success and tensions of US-China collaboration at Microsoft Research Asia
1. Chinese tech entrepreneurs’ association with the Beijing institute
2. Erosion of freedom and the defensive move to Vancouver
3. Potential backlash and Beijing’s efforts to attract overseas researchers

IV. Indonesian Nickel Surplus:
A. The impact of Indonesian smelters on global nickel supply
1. Record-high nickel prices in 2022 due to increased demand
2. Rapid nickel production growth in Indonesia
3. Potential surplus and the timeline for market equilibrium

Conclusion:
The rapid growth of the electric vehicle market, particularly in China, has reshaped the industry landscape and spurred competition among global automakers. Japanese automakers like Toyota and Nissan, aiming to regain their positions, are focusing on solid-state battery technology as the future of EVs. Additionally, CATL’s expansion into Thailand signifies the country’s determination to become a regional leader in electric vehicle manufacturing. Meanwhile, Microsoft’s decision to relocate AI researchers from Beijing to Vancouver signifies the tensions between the US and China. Lastly, Indonesia’s nickel surplus poses challenges to the global supply chain for EV batteries and stainless steel industries. As the pursuit of clean energy technologies continues, these developments will shape the future of the electric vehicle industry.

Additional Piece: The Role of Government Policies in Driving Electric Vehicle Adoption

Introduction:
Government policies play a crucial role in promoting the adoption of electric vehicles (EVs) and accelerating the transition to sustainable transportation. In order to combat climate change and reduce dependence on fossil fuels, policymakers around the world have implemented various measures to incentivize EV production and purchase. These policies include financial incentives, infrastructure development, and regulatory frameworks that support the growth of the EV market.

I. Financial Incentives:
A. Subsidies and tax benefits for EV manufacturers and buyers
1. Government grants and subsidies to encourage EV production and research
2. Tax credits, rebates, and exemptions to reduce the cost of EV ownership
3. The effectiveness of financial incentives in stimulating consumer demand

B. Investment in charging infrastructure
1. Building a network of charging stations to address range anxiety
2. Collaborations between governments, automakers, and energy companies to expand charging infrastructure
3. The importance of accessible and convenient charging stations for widespread EV adoption

II. Regulatory Frameworks:
A. Emission standards and zero-emission vehicle mandates
1. Implementation of stricter emission standards to reduce greenhouse gas emissions
2. Zero-emission vehicle mandates that require automakers to produce a certain percentage of EVs
3. The impact of regulatory frameworks on automakers’ EV strategies and technological advancements

B. Public procurement policies and fleet electrification
1. Government procurement of EVs for public fleets to create demand and showcase commitment
2. Incentives for commercial fleets to transition to electric vehicles
3. The role of government leadership in promoting EV adoption and influencing consumer perception

III. International Collaboration:
A. Global alliances and agreements to accelerate the transition to EVs
1. International cooperation on research, development, and standardization of EV technologies
2. Sharing best practices and knowledge exchange among countries
3. The potential for collaborative efforts to drive innovation and cost reduction in the EV market

Conclusion:
Government policies play a vital role in driving the adoption of electric vehicles, ensuring a sustainable future for transportation. Financial incentives, infrastructure development, and regulatory frameworks provide the necessary support for automakers, consumers, and other stakeholders in the EV ecosystem. By implementing effective policies and fostering international collaboration, governments can accelerate the transition to electric mobility and achieve their climate and sustainability goals.

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Hi everyone, I’m Akito from Singapore.

In the spring of 2019, I was in Shanghai to cover the semi-annual auto show. He’ll never forget the words of a Nissan engineer who had just announced a new electric vehicle for the Chinese market. “Producing electric vehicles without Chinese-made parts is no longer possible,” he said.

Nissan was a pioneer in electric vehicles. In 2010 he released the world’s first globally mass-produced model, the Leaf, a project in which this engineer was involved. “At that time, all parts were made in Japan,” he recalled.

However, the newly announced Nissan EV used batteries made by Chinese manufacturer Contemporary Amperex Technology, known as CATL. And Tesla was building a large-scale electric vehicle factory in Shanghai.

It’s been four years since then, and Chinese automakers and component makers have become much bigger players in the EV market. Conversely, the presence of Japanese automakers has shrunk.

Under these circumstances, major Japanese automakers are looking to come back with all-solid-state batteries, considered the next-generation technology of choice in the industry.

Toyota’s bet on solid state

Toyota Motor aims to release an electric vehicle powered by a fully solid state battery as early as 2027, second Nikkei staff writers. Hiroki Nakajima, chief technology officer, said the company had “found quality material” to “keep up with the rest of the world” and would “use it in a practical way.”

Solid-state electric vehicle batteries can be recharged in less than 10 minutes and power a vehicle for a range of 1,200 kilometers, 2.4 times the distance achievable with traditional lithium-ion batteries.

Toyota’s Japanese rival Nissan also plans to release an EV with a solid-state battery by the end of March 2029, and German giant BMW plans to mass-produce them by 2030.

Toyota, which has a strong lineup of hybrid vehicles, is looking to accelerate its EV business using solid-state batteries. The company sold just about 20,000 EVs globally last year, but it wants to increase to 1.5 million units by 2026 and 3.5 million by 2030.

CATL bets on Thai electric vehicles

Meanwhile, Chinese battery giant CATL has announced it will open a factory in Thailand to assemble electric vehicle batteries with Arun Plus, a subsidiary of Thailand’s state-owned oil company PTT, says Nikkei staff author Francesca Regalado.

Joint venture investment of 3.6 billion baht ($104 million) is the latest Thailand’s push become a hub for electric vehicles in Southeast Asia.

The factory is expected to begin assembling batteries in the fourth quarter of 2024. It will supply Thailand-based electric vehicle makers, starting with Horizon Plus, Arun’s electric vehicle manufacturing arm, with a target capacity of 50,000 cars per year in 2024 and 150,000 by 2030.

“This is a great opportunity for both PTT/Arun Plus and Thailand, as CATL is a global leader of innovative new energy technologies, covering the entire global battery value chain,” said the CEO of Arun Plus Ekachai Yimsakul, who was in Shanghai to sign the cooperation agreement with CATL executives.

Microsoft will transfer top AI experts from China

Microsoft Research Asia (MSRA) stood out as a rare example of successful US-China collaboration on high-tech research. Many of China’s leading tech entrepreneurs have passed through the Beijing institute.

But tensions between the two superpowers are there it eroded the freedom of MSRAaccording to insiders who spoke to the Financial Times’ Eleanor Olcott, Qianer Liu AND Ryan McMorrow. And now, Microsoft is moving some of its top AI researchers from its Beijing facility to a new facility in Vancouver, Canada, a move that threatens to undermine an institution that has been a crucial training ground for tech talent of the country.

Microsoft said the Vancouver lab will be “organizationally aligned” with the MSRA and staffed by researchers from China and other countries around the world.

The US tech giant’s decision to displace workers was a response to heightened political tensions between the US and China. It was also a defensive ploy to prevent researchers from being targeted by national tech groups desperate for AI researchers to develop homegrown versions of OpenAI’s ChatGPT.

It risks sparking a backlash in Beijing, which has been trying to lure high-tech Chinese researchers working overseas to the mainland through generous grants and prestigious teaching posts.

Indonesian nickel surplus

Global nickel supply is heading for a larger surplus this year as more Indonesian smelters come on stream to feed the electric vehicle battery and stainless steel industries, threatening to keep prices down the record highs of 2022, according to the Nikkei staff writer Erwida Maulia.

Prices soared to new highs last year after major nickel producer Russia invaded Ukraine and in the wake of growing demand for so-called class 1 nickel used in electric vehicle batteries.

However, nickel production also increased in 2022, as Chinese-backed smelters in Indonesia rapidly ramped up their output, while slowing global economic growth reduced demand for stainless steel. Indonesia is tied with Australia as home to the world’s largest reserves of nickel, with each country holding one-fifth of global reserves. According to one analyst, the market “is heading for a larger surplus in 2023” and “will not see a deficit before 2028”.

Recommended readings

1. Save game history: Japan keeps its treasures related to cartridges (Nikkei Asia)

2. Chinese tech groups suffer as foreign investors take flight (FT)

3. Thailand aims to duplicate Singapore’s model for start-ups (Nikkei Asia)

4. The former Samsung executive said he stole the technology to recreate a chip plant in China (FT)

5. Japan tops the global rankings for patents for innovative cancer treatments (Nikkei Asia)

6. The Dutch government will screen Chinese tech students on security risks (FT)

7. Neil Shen goes to China alone after Sequoia disbands (FT)

8. Bangladesh prepares digital bank facility to go cashless (Nikkei Asia)

9. AI euphoria and EV bets drive South Korea market rally (FT)

10. ChatGPT sparked a rush on AI, now regulators are fighting to resist (Nikkei Asia)

#techAsia is coordinated by Katherine Creel of Nikkei Asia in Tokyo, with assistance from the FT tech desk in London.

Registration Here at Nikkei Asia to receive #techAsia every week. The editorial board can be reached at no techasia@nex.nikkei.co.jp.

https://www.ft.com/content/09e23ac9-f73a-4104-aa2e-33ea48eba67a
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