There are two polite words to describe President Trump’s auto industry policies: uncertain and self-contradictory. He claims he wants to revitalize the car industry, which was already thriving under the previous administration. But the approach involves tariffs that could gut American manufacturing jobs.
Then there’s the war on the Environmental Protection Agency’s (EPA) emissions standards, often mischaracterized as mandates. Now, Republican Senator Bernie Moreno of Ohio has introduced a bill that tries to do some damage control—just not convincingly enough.
Welcome back to Critical Materials, your daily round-up of news and events shaping up this turbulent shift towards battery-powered vehicles.
Also on our radar today: South Korean battery giant Samsung SDI is considering adding another battery plant in the U.S. despite Trump’s threats against clean energy programs. In Texas, Waymo and Uber join forces to start robotaxi service in Austin, furthering the Alphabet-owned company’s dominance in the AV space.
30%: Automakers Back Lawmaker’s Attempt To Ease Emissions Rules
America is a confounding blend of technological progress coexisting with leaders seeking to reverse said progress.
On one hand, automakers are selling a record number of EVs. Driverless taxis are growing in popularity. Meanwhile, Republican senators are pushing legislation to reverse the country’s technological progress, masquerading it as an attempt to make cars cheaper and revitalize American jobs—which were already thriving under former President Biden.
Republican Senator Bernie Moreno of Ohio has proposed a bill called the Transportation Freedom Act which aims to provide a “historic investment in American auto workers” and “lower vehicle prices.”
His new bill proposes to provide a 200% tax deduction for wages paid to American auto workers earning up to $150,000 a year. The bill also states that vehicle prices will be lowered by slashing “onerous mandates” like the EPA’s emissions guidelines and California’s Zero-Emission Vehicles rules.
The bill is supported by Toyota, General Motors and Stellantis as well as the National Automobile Dealers Association, the Alliance For Automotive Innovation and American Trucking Association.
Here’s more from Automotive News:
“Trump’s 100 percent right, and all of us should rally around his demand that our two neighbors step up,” the Ohio lawmaker said in an interview last week. “Until they do what they need to do, yes, am I willing to take some amount of short-term pain? Absolutely, 100%.”
Let’s see what “short-term pain” looks like for American consumers.
Ford CEO Jim Farley has said that the 25% tariffs on items imported from Mexico and Canada could “blow a hole” in the auto industry. The tariffs will not only squeeze automakers' profits but might also result in mass layoffs of American auto workers. Analysts estimate that car prices will surge by as much as $12,000.
That’s in addition to thousands of dollars of additional expenses for American household items.
Moreno, who is of Colombian descent, built an empire of car dealerships before selling them off to pursue his political ambitions. Selling the dealership network spurred his net worth to over $100 million. Reports suggest he also settled over a dozen cases of wage theft at his dealerships.
It’s unclear if the bill will gain any significant traction, but what’s clear is changing EPA’s emissions rules isn’t easy. The rulemaking process is lengthy and time-consuming. Plus, it will likely face legal challenges from leaders on the other side of the aisle.
60%: Samsung SDI May Build A Third U.S. Battery Plant
On a brighter note, South Korean battery giant Samsung SDI seems to have a bullish outlook on America’s EV industry. It is reportedly considering constructing another plant in the U.S. despite President Trump’s plans to roll back EV subsidies.
It has already built a $2.5 billion battery factory in Indiana in partnership with Stellantis. Another $3.5 billion facility in collaboration with General Motors is planned. The battery giant’s CEO Joo Sun Choi told reporters that it’s being cautious about expansion plans. But the company needs to focus on long-term growth.
Here’s more from Bloomberg:
“We are very conservative on building a new plant in North America because demand has weakened significantly this year compared to last year,” Choi said. “But we are vigorously reviewing the plan because we need mid-to-long-term growth.”
I’d urge you to take a moment, decouple from the political news cycle and just let this sink in: Ten new battery plants will go online this year in the U.S., all worth billions of dollars. More will start churning batteries for EVs, hybrids and plug-in hybrids in a couple of years.
You don’t make that kind of investment if EVs were the “green new scam.”
Automakers and battery companies know that without ramping up EV efforts, the U.S. risks falling technologically behind China. The ship of electric cars has sailed. Right now it’s just passing through some rough waters.
90%: Uber And Waymo Begin Robotaxi Service In Austin
Driverless Jaguar I-Pace electric crossovers are now ferrying passengers in Austin. This time, the program comes as Uber and Waymo joined forces to deploy robotaxis in the Texan city.
Waymo has been serving riders in San Francisco and Phoenix since 2020 before it expanded to Los Angeles. It has not only grown its footprint in those cities, but is now hoping to unlock a larger pool of riders by teaming up with Uber in Austin.
The Associated Press reported that riders will use the Uber app in Austin, but a robotaxi ride won’t be guaranteed. However, they can increase their chances by going into the menus and selecting the preference for AVs.
If they get lucky, Uber will notify the rider of the self-driving taxi and also provide the option to switch to a human driver.
100%: Have Your Car Buying Plans Changed This Year?
Dozens of cars sold in the U.S. are made in Mexico and Canada, including some popular models like Honda Civic and CR-V (whose production is split between Honda’s U.S. and Mexico plants), Ford Mustang Mach-E, Chevy Equinox EV, Chevy Silverado 1500, BMW 3 Series, Volkswagen Jetta and many more.
Prices of these vehicles could increase in the coming weeks as automakers adjust their production plans. Japanese and Korean vehicles remain relatively—but not entirely—shielded from Trump’s tariffs. We’d love to know how all this is affecting your purchase decisions. Leave a comment below.
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