This week, we cover updates on the Nexperia crisis, China’s EV margin collapse, Symbio’s downsizing after Stellantis abandons fuel cells, a looming cobalt squeeze from Congo’s export halt, Indonesia’s nickel glut, and rising North American uncertainty as Stellantis faces Canadian defaults and U.S. fuel-economy rollbacks. Plus: major new supplier investments and intensifying geopolitical supply risks.
The Chinese EV margin collapse really shows how brutal the competition has gotten. BYD and others are basically eating lower tax breaks with increased rebates while battery costs climb, which is a tough squeeze. What's interesting is that this margin pressure might actually force faster innovation in battery chemistry and pack design since the current cost structure isn't sustainable for mid-tier players. Mass market brands will likely survive by pushing volume, but premium EV makers in China could get hammered pretty hard.
The Stellantis-Canada situation is a good reminder that government incentives can backfire when companies change their plans. Ottawa giving $379 million in forgivable loans tied to production commitments seemed smart, but now they're basically stuck enforcing penalties or looking weak. The really tricky part is that the battery plant funding is also linked to keeping Brampton open, so one broken promise cascades into jeopardizing the whole regional investment strategy.
Fascianting breakdown on the Congo cobalt squeeze. The price jump from $6 to $23 per pound shows howquickly a single export policy can reshape critical material costs. What's particualrly noteworthy is the timing here when EV makers are already pivoting toward LFP chemistry, Congo's attempt to control market share might accelerate the very shift away from cobalt they're trying to capitalize on. The real supply chain lesson is about dependency concentration, not just the price shock itself.
The Chinese EV margin collapse really shows how brutal the competition has gotten. BYD and others are basically eating lower tax breaks with increased rebates while battery costs climb, which is a tough squeeze. What's interesting is that this margin pressure might actually force faster innovation in battery chemistry and pack design since the current cost structure isn't sustainable for mid-tier players. Mass market brands will likely survive by pushing volume, but premium EV makers in China could get hammered pretty hard.
The Stellantis-Canada situation is a good reminder that government incentives can backfire when companies change their plans. Ottawa giving $379 million in forgivable loans tied to production commitments seemed smart, but now they're basically stuck enforcing penalties or looking weak. The really tricky part is that the battery plant funding is also linked to keeping Brampton open, so one broken promise cascades into jeopardizing the whole regional investment strategy.
Fascianting breakdown on the Congo cobalt squeeze. The price jump from $6 to $23 per pound shows howquickly a single export policy can reshape critical material costs. What's particualrly noteworthy is the timing here when EV makers are already pivoting toward LFP chemistry, Congo's attempt to control market share might accelerate the very shift away from cobalt they're trying to capitalize on. The real supply chain lesson is about dependency concentration, not just the price shock itself.