Hello! Thank you for checking out this week’s EV North Newsletter!

This issue is packed with Canada-specific news!

Welcome to The EV North - a weekly newsletter that brings together some of the biggest EV news stories and delivers them to your inbox. There is a focus on Canada & North America but you’ll also find EV news from around the world!

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In this issue:

• Canada Imposes 100% Tariff on Chinese Electric Vehicles and Announces 25% Tariff on Steel.

• Ford Halts Construction of Canadian Cathode Material Plant Again Amid EV Strategy Shift.

• Lucid's Affordable EV Lineup and Expanded Canadian Lease Options.

• US Department of Defense Invests $20M in Canadian Cobalt Production to Strengthen EV Battery Supply Chain.

• Tesla Launches Official Amazon Storefront in Canada for EV Charging Solutions.

• US Only Tesla Has a New Referral Program: $1,000 Off for Referrals and $500 Rewards.

• Polestar Appoints Michael Lohscheller as New CEO Amid Global Expansion Plans.

• + more!

Canada

Canada Imposes 100% Tariff on Chinese Electric Vehicles and Announces 25% Tariff on Steel.

The Government of Canada has announced a 100% tariff on all Chinese-made electric vehicles (EVs), including those manufactured by Tesla. In addition, a 25% tariff will be levied on Chinese steel and aluminum imports. This decision follows similar actions by the United States and the European Union.

The new tariff applies to all electric vehicles imported from China, impacting major EV manufacturers like Tesla. This move comes as Canadian imports of Chinese automobiles surged by 460% in 2023, largely due to Tesla’s Shanghai-made vehicles. Alongside the EV tariffs, Canada is also imposing a 25% duty on Chinese steel and aluminum, affecting various sectors reliant on these materials.

Tesla’s shares fell by 3.2% following the announcement. Analysts predict that Tesla may shift its logistics, potentially exporting vehicles from the U.S. to Canada to avoid the tariffs, which could impact profit margins due to higher production costs in the U.S.

Prime Minister Justin Trudeau stated that the tariffs are a response to China's state-directed over-capacity and non-compliance with global trade rules. The tariffs will take effect on October 1, 2024. Trudeau also mentioned potential additional measures, including tariffs on chips and solar cells, to address non-market practices by China.

China’s Commerce Ministry criticized Canada’s move as a violation of World Trade Organization (WTO) rules and a disruption to global supply chains. The ministry’s spokesperson described the tariffs as protectionist and damaging to economic relations between Canada and China.

Implications for Global Trade: The imposition of these tariffs is likely to have significant repercussions for the global automotive and steel industries. As countries navigate these new trade barriers, companies like Tesla may need to adapt their supply chains and production strategies to mitigate the impact of these tariffs.

Ford Halts Construction of Canadian Cathode Material Plant Again Amid EV Strategy Shift.

Ford Motor Company has paused construction of their cathode material plant in Bécancour, Quebec, marking the second delay this year. The halt is attributed to Ford's shifting priorities in the EV sector due to supposed “weak demand”.

Ford, along with SK On and EcoProBM, initially announced in summer 2023, the joint $1.2 billion CAD investment was aimed at establishing a cathode material plant with an annual production capacity of 45,000 tonnes of CAM by early 2026. However, with the latest delay, the plant’s opening is now projected for 2027.

Ford's revised focus in the EV market and changing battery demand have led to the pause, which began on August 5. The delay follows earlier construction issues related to contractor selection and facility design. The current pause is linked to a more extensive redesign of the facility.

Ford has been grappling with profitability challenges within its ‘Model e’ EV unit. Losses in the second quarter of 2024 deepened for the US automaker’s EV division. This struggle follows Ford’s decision to abandon its 2030 target for solely electric car sales in Europe. Additionally, Ford recently scrapped plans for an EV hub in Oakville, Canada, in favor of continuing combustion pickup truck production.

The repeated delays and strategic shifts illustrate the challenges automakers face in adapting to evolving demand and technological requirements. As Ford recalibrates its approach, the future of the Bécancour cathode material plant remains uncertain - although government officials are optimistic that the project will resume, with the facility's launch now likely pushed to 2027.

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Lucid's Affordable EV Lineup and Expanded Canadian Lease Options.

Lucid Motors is set to introduce three affordable electric vehicles as part of its new "mid-size program," which will include a crossover SUV, a potential sedan, and possibly a hatchback. The upcoming models, which will be more accessible than the Air sedan and the forthcoming Gravity SUV, will emphasize efficiency and aerodynamics while offering a compact and lighter design. Lucid aims to expand its market reach by leveraging technology and design elements from the Air.

While details about specific body styles remain uncertain, the new lineup could include a sedan to rival the Tesla Model 3 and a hatchback to complement the potential Model Y competitor. Lucid CEO Peter Rawlinson has previously expressed interest in creating a sporty and affordable hatchback. As Lucid progresses with the Gravity SUV's launch, it continues to push for innovation in the EV market despite current industry challenges.

Lucid Motors has extended its leasing options to Canadian residents through Lucid Financial Services, marking its third international leasing market. Lucid has exceeded its Q2 delivery targets for the Lucid Air sedan, renowned for its exceptional 5 miles per kWh range efficiency.

With a recent $1.5 billion investment from Saudi Arabia’s Public Investment Fund, Lucid is focused on boosting Air sales and preparing for the Gravity SUV’s release. Canadian customers can now explore flexible lease options for the 2024 Lucid Air, with 2025 models soon to follow. The digital leasing platform, developed in partnership with Bank of America, offers personalized support and aims to provide a premium experience consistent with Lucid’s high service standards.

US Department of Defense Invests $20M in Canadian Cobalt Production to Strengthen EV Battery Supply Chain.

The United States Department of Defense (DoD) has allocated $20 million USD to Electra Battery Materials Corporation, a rising player in North America's sustainable raw materials sector. This major investment will aid Electra in completing its cobalt refinery plant in Temiskaming Shores, Ontario, thereby supporting a localized supply chain for US EV manufacturers.

The DoD’s funding will enable Electra Battery Materials to finalize its industrial-scale hydrometallurgical plant in Ontario and begin cobalt sulfate production. This facility will be the first North American refinery dedicated to producing cobalt sulfate, a crucial component in lithium-ion batteries.

Canada is working to become a key player in the EV raw materials market, crucial for North America’s supply chain goals. The US aims to increase domestic production through incentives from the Inflation Reduction Act (IRA), signed by the Biden Administration in 2022.

Following the IRA, Volkswagen and Mercedes-Benz signed deals with the Canadian government for EV battery raw materials. General Motors’ BrightDrop also relocated electric van production to Canada. Additionally, Canada Nickel Co. is investing $1 billion in a major nickel processing plant in Ontario, set to become North America's largest.

Since the start of fiscal year 2024, the Defense Production Act Investments (DPAI) has awarded $445 million USD across various projects, including two significant Canadian initiatives. The $20 million USD allocated to Electra represents the DoD's third and largest investment in Canada under this program.

The DoD's investment looks to establish a domestic processing facility for cobalt and other critical materials, supporting both DoD projects and the expanding EV supply chain. Jonathan Wilkinson, Canada’s Minister of Energy and Natural Resources, highlighted the economic and security benefits of developing secure critical minerals value chains through collaboration with the US.

The Government of Canada has also invested CAD 5 million (USD 3.6 million) in Electra to advance the next phase of its battery materials recycling project at the same Ontario facility.

Tesla Launches Official Amazon Storefront in Canada for EV Charging Solutions.

Tesla has officially launched its Amazon storefront in Canada, offering s a convenient way to purchase their Wall Connector and Universal Wall Connector directly through Amazon.

The Tesla storefront currently features two key products: the Wall Connector and the Universal Wall Connector, compatible with all EVs using a J1772 connector. These are priced at CAD 625 and CAD 800, respectively, mirroring the prices available on Tesla's own website.

Purchasing Tesla’s charging solutions through Amazon not only offers the same prices as Tesla’s website but also provides advantages such as expedited shipping for Amazon Prime members and a straightforward return process.

Visit the Storefront: For a seamless shopping experience and to view Tesla’s offerings, you can visit the Tesla storefront on Amazon here.

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EV Around the World 🌏

US Only Tesla Has a New Referral Program: $1,000 Off for Referrals and $500 Rewards.

Tesla has introduced an updated referral program for the US, replacing the previous version that ended earlier this year. The new program, launched on August 24, 2024, is designed to simplify and enhance the referral process through Tesla's mobile app.

The new program offers a flat $1,000 discount to the first ten individuals who use a referral link to purchase a new Tesla vehicle. In addition, those who refer new buyers will receive $500 in rewards, which can be used for Supercharging, Tesla products, merchandise, service payments, or towards the purchase of a new vehicle. Also, buyers who use a referral link will also have the chance to win invitations to exclusive Tesla events.

To take advantage of the new referral program, users can access it through the Tesla mobile app version 4.36.1. More details about the program are available on Tesla’s website in the US.

The former referral program utilized a credits system, which provided referrers with 7,500 credits per referral, a decrease from an earlier offering of 10,000 credits. Tesla has regularly adjusted referral benefits over time to better align with company goals and customer needs.

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Polestar Appoints Michael Lohscheller as New CEO Amid Global Expansion Plans.

Polestar has announced Michael Lohscheller as its new CEO, succeeding Thomas Ingenlath, who has led the company since its inception. The leadership transition will take effect on October 1, 2024.

Michael Lohscheller, formerly of Opel (and VinFast) and with extensive experience in the automotive industry, will take over as Polestar's CEO. Lohscheller expressed enthusiasm about joining Polestar during this pivotal moment, highlighting the company's strong foundation and his commitment to accelerating its development in the electric vehicle (EV) sector.

Polestar has ambitious plans for global expansion. In June 2024, the company announced its intention to introduce new electric vehicles in seven additional markets, spanning Europe, Asia, and South America. Europe remains a significant focus for many Chinese-owned automotive brands, including Polestar, which originates from Volvo, owned by China-based Geely.

QuickEV

• Tesla launches Drive Anywhere Package for Model S & X purchases.

• Finally: Hyundai Confirms the N Vision 74 for Production.

• Sailun ERange Tires: Performance And Longevity With Extended EV Range.

• Tesla owners complain about extended Service waits of nearly two months.

• Dodge CEO: The Charger Daytona EV Is a 'Better, Faster' Muscle Car.

• Can-Am presents its first electric motorbikes.

• Tesla Giga Berlin employee experience highlights need for more staff training.

EV Tweet of the Week

Hopefully coming to a Canadian Costco near you: