EU and China, VDA Analysis, Schaeffler, Symbio, TransnetBW, Circulus and more

The European Union plans to impose provisional special tariffs on electric cars from China starting in July. The tariffs will vary depending on the manufacturer and are based on subsidies identified by the EU. 

BYD will be subject to a special tariff of 17.4%, Geely at 20%, and SAIC at 38.1%. These tariffs are in addition to the existing 10% import duty on electric cars from China. Hildegard Müller, President of the German Automobile Association VDA, criticized the move, stating, "The EU's announcement to impose provisional high additional tariffs of up to 38.1% on electric cars from China starting in early July is another step away from global cooperation. This measure increases the risk of a global trade conflict. Furthermore, countervailing duties on imported electric cars from China are not suitable for enhancing the competitiveness of the European automotive industry." 

According to the German Association of the Automotive Industry (VDA), no other country in Europe produces as many cars as Germany, with 4.1 million vehicles coming off the production lines in 2023. This figure surpasses the combined total of the next two countries, Spain (1.9 million) and the Czech Republic (1.4 million). Approximately 76% of these vehicles are sold outside of Germany. Germany also leads in terms of the value of cars exported, with cars worth €164 billion exported in 2023. Belgium is second with €39 billion, followed by Spain with €38 billion. The total revenue of the German automotive industry, including suppliers, exceeds €500 billion. France was second in 2022 with €142 billion, followed by Italy with €72 billion. 

Germany also excels in the production of electric drivetrains, having produced 1.27 million battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs) last year, of which 955,000 were BEVs. Globally, Germany ranks second behind China in the production of electric cars. With 780,000 employees, the German automotive sector is the largest employer within the European automotive industry. 

Germany also leads globally in patents related to this industry, according to VDA analysis. Nearly one-third of all such patents (29%) are attributed to German inventors. Following Germany are Japan, China, the USA, and South Korea. The next European country, France, ranks sixth with 5% of the patents, according to the IW Patent Database. 

Innoplate, a joint venture between Schaeffler and Symbio, has commenced construction of a factory for bipolar plates near the German-French border. Starting with an initial capacity of four million bipolar plates, the facility aims to increase its output to 50 million units per year by 2030. The project, supported by the France 2030 investment program, is expected to create about 120 new jobs by 2030. 

Bipolar plates are essential components in fuel cells as they regulate the flow of hydrogen and air as well as the output of steam and energy. This factory represents the first industrial-scale production of bipolar plates in Europe. Schaeffler and Symbio each contribute their expertise in steel processing, coating technology, and fuel cell technology to the joint venture.  

TransnetBW, a German transmission system operator, and Octopus Energy have launched a pilot project in Germany named OctoFlexBW to explore the "micro-flexibility" potential of battery electric vehicles. The project aims to manage the charging processes of approximately 1,500 electric vehicles owned by Octopus Energy customers. By adjusting the charging times based on network load conditions—reducing during peak times and increasing during off-peak—this initiative seeks to enhance grid stability and foster the integration of micro-flexibility into network management tools. The collected data will provide insights into user acceptance, reliability, and the future potential of electric vehicles as a flexibility resource for power grids. 

The project "CIRCULUS – Sustainable Battery Systems for the Energy Transition and New Business Models" is exploring ways to optimize the recycling of batteries and the re-use of old battery cells from electric vehicles. Findings indicate that many battery cells retain enough capacity after their use in vehicles to be repurposed as stationary energy storage. This second-life application contributes to the sustainable use of resource-intensive battery cells and supports the circular economy. As part of the project, the Fraunhofer Institute for Structural Durability and System Reliability (LBF) is developing lightweight, recyclable plastic battery casings designed for easy disassembly and efficient sorting, aiming to recover high-quality recyclates. Researchers emphasize the need for a transdisciplinary approach to address the ecological, economic, and social challenges associated with battery recycling. 

Bosch has made investments in two emerging startups in the battery recycling sector: Cyclyx and Redwood Materials. These investments are aimed at developing sustainable end-of-life solutions for batteries and promoting a circular economy. Redwood Materials focuses on reclaiming valuable materials from spent batteries for reuse in new batteries. Cyclyx, on the other hand, collects and prepares used batteries to enhance the efficiency of the recycling process.  

BMW and Pirelli have collaborated to create the new P-Zero Winter 2 tire, specifically optimized for electric vehicles. This tire is designed to extend the winter range of the fully electric BMW i7 by up to 50 kilometers. This increase in range is achieved through technological advances in tread pattern and compound that reduce rolling resistance and enhance efficiency. The new tire will be available from August 2024 and is also planned for use in other upcoming BMW models, starting with the new BMW X3. 

Hongqi, a premium brand of China's FAW Group, is set to introduce its EH7 electric sedan in Europe later in 2024. The EH7 will be offered in Europe with rear-wheel or all-wheel drive and two battery options (85 kWh and 111 kWh). The rear-drive version with the larger battery is expected to have a range of up to 700 kilometers. The vehicle is slated to go on sale in the third quarter, with initial deliveries planned for the fourth quarter. 

Toyota has initiated road testing of prototype models of its hydrogen-powered pickup truck, the Hilux, in the United Kingdom. Ten units of the H2 Hilux have been produced, with five currently undergoing field testing. The H2 Hilux employs fuel cell technology from the Toyota Mirai and aims to offer a range of up to 600 kilometers. Insights gathered from these tests are intended to further the development of fuel cell technology to achieve longer life cycles, greater ranges, and lower costs. Toyota plans to incorporate the findings into the next generation of fuel cell systems, which are expected to be market-ready by 2026 or 2027.