February 1, 2023

Increasing Cost of European Energy Can make EV Battery Plants “Unfeasible, ” VW Exec Says

It’s turning out the economics of an industry revolves set into motion almost solely due to government subsidization may not entirely make sense

We’ve already  written this month   about how the “ tax break” incentive to buy an EV is starting to vaporize into thin air within places like Japan as well as the U. K.. Now, the particular irony continues, as rising costs of energy in European countries, helped along by “ green” energy policies, make industrial projects like battery pack cell factories “ unfeasible”.  

Volkswagen brand CEO Jones Schaefer said this week that investments in German plus EU projects will no longer make sense financially if “ policy manufacturers fail to control ballooning energy prices in the long-term”,   according to the  Times .  

In a post on LinkedIn, Schaefer said:   “ Unless we manage to reduce energy prices in Germany and Europe quickly and reliably, investments in energy-intensive production or new battery power cell factories in Indonesia and the EU will be virtually unviable. The value creation in this area will take place elsewhere. ”

Last week,   France and German economy ministers proposed an outline for policy cooperation that Schaefer claims  “ falls short within crucial areas and does not tackle the envisaged priorities”, the report says.  

“ Outdated plus bureaucratic state-aid rules” are not able to focus enough on  “ the short-term ramp-up, climbing and industrialisation of creation, ” he said.  

The statement says that EU authorities are focused on responding to  President Joe Biden’s  Pumpiing Reduction Act, which they state “ violates World Trade Organisation rules and discriminates against non-US companies. ”

Meanwhile, Volkswagen is in the process of putting 6 battery factories in operation across Europe by the year 2030, the report says. You can actually lead plant in Indonesia broke ground this Come july 1st and already has a  € 3bn (R53bn) partnership with Umicore in place with regard to cathode material production.  

Recall, just days ago, we documented that the UK was searching to  raise more tax revenue   from electric vehicles, shattering the years-long assumption that when you contributed to “ helping the environment” by purchasing an EV, you’d be entitled to subsidies and tax credits.

Now Japan’s internal affairs ministry is certainly reportedly weighing whether or not to boost taxes on electric automobiles in order to make up for a shortfall in income from fees on traditional gas driven cars.

Therefore it’s turning out the fact that economics of an industry revolves set into motion nearly solely due to government subsidization may not entirely make sense. Would you have figured?

Ye joins Alex Jones in-studio in a must see groundbreaking interview !

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