'Made in America' fight clouds EV gains

Presented by Chevron: Your guide to the political forces shaping the energy transformation

Nov 29, 2022 View in browser   By Arianna Skibell Presented by Chevron President Joe Biden drives a Ford F-150 Lightning truck in Dearborn, Mich., last year. | Evan Vucci/AP Photo An escalating trade spat between the United States and Europe threatens to overshadow the Biden administration's gains on the electric vehicle front. Before the ink could dry on the $369 billion investment in clean energy that President Joe Biden signed into law in August, European leaders started panicking over a provision requiring key technologies, such as batteries for electric cars, to be made in the U.S. European leaders say the "made in America" requirement is protectionist and ultimately harms Europe's domestic clean energy industries. French President Emmanuel Macron is slated to arrive in Washington this week in hopes of persuading Biden to take European concerns seriously and avoid a trade war. The U.S. has demonstrated little interest in backing away from the law's domestic manufacturing provisions, which are intended to spur job creation. Former Vice President and current climate campaigner Al Gore today defended the law and encouraged Europe to instead "match what the U.S. has done." What has the U.S. done? As of June, car buyers in the United States have bought a cumulative 2.9 million EVs. The second quarter of this year saw a record 230,000 EVs sold, which was 14 percent more than the prior quarter record, according to a report published today by Atlas Public Policy. EVs in that quarter made up 7 percent of light-duty sales — a massive jump compared with last year's market share of approximately 4 percent. In recent months, automakers have announced more than 115,000 jobs and $82.1 billion in EV manufacturing in the U.S. But building out a domestic supply chain for the critical minerals needed to build EVs continues to be difficult. In 2021, the country imported more than 25 percent of its lithium, 48 percent of its nickel, 76 percent of its cobalt, and all its graphite and manganese, Atlas Public Policy found. Sourcing these minerals inside the country also comes with a host of environmental justice concerns. Deposits of the vast majority of all five critical minerals are located within 35 miles of Indigenous reservations. While mining safety requirements have improved in recent decades, mining can still cause environmental degradation and disruption to cultural sites.   It's Tuesday — thank you for tuning in to POLITICO's Power Switch. I'm your host,  Arianna Skibell.  Power Switch is brought to you by the journalists behind E&E News and POLITICO Energy. Send your tips, comments, questions to  askibell@eenews.net.   A message from Chevron: We're working to help lower the lifecycle carbon emissions of transportation fuels. Find out how Chevron's renewable diesel can help fuel the way to a lower carbon future.   Listen to today's POLITICO Energy podcast Today in POLITICO Energy's podcast: Zack Colman breaks down why billions of new federal tax dollars are failing to help people leave climate-vulnerable areas. Off the rails Freight train is seen at a train station in Northbrook, Ill., on Oct. 12. | Nam Y. Huh/AP Photo A threatened strike by rail workers has the biofuel industry bracing for another knockdown while memories of the Covid-19 pandemic's disruptions are still fresh, writes Marc Heller. Most crop-based fuels like corn ethanol are shipped by freight rail, and much of the grain or soybeans used to make them move on trains as well. The potential hit to biofuels is one of the more significant impacts for American agriculture. Glimmer of hope: Congress lines up behind Biden's strike plan, but it might not be quick, Alex Daugherty, Garrett Downs and Tanya Snyder report .   A message from Chevron:   Power Centers Energy Secretary Jennifer Granholm on Capitol Hill last year. | Francis Chung/E&E News Get ready for subpoenas Looming Republican control of the House means Biden's Energy Department is about to face a two-year onslaught of subpoenas, hourslong hearings and letters demanding information, writes Nico Portuondo. For months, Republican committee leaders have been firing off requests for documents and other information from the agency tasked with implementing Biden's clean power goals. What's next for oil majors? The oil industry is basking in record profits two years after a handful of large European oil companies announced plans to transition their business and zero out emissions, writes Benjamin Storrow. The windfall has prompted questions about whether companies intend to spend their profits on their traditional business or on green technologies needed to meet their climate goals. Investment slump Volkswagen AG may stop investing in battery factories across Europe if the E.U. fails to tame energy prices and beef up its industrial policy, writes Joshua Posaner. "If we don't succeed in quickly lowering energy prices in Germany and Europe, then investments in energy-intensive production, or for new battery cell factories, in Germany and across the E.U., will no longer be feasible," said Thomas Schäfer, who runs the Volkswagen brand. in other news A woman fetches water during an extreme drought in Zimbabwe. | Tafadzwa Ufumeli/Getty Images Drought: Record-low water levels in Zimbabwe have forced offline the hydroelectric power plant responsible for generating more than 70 percent of the country's power. Fossil-free flight: Rolls-Royce has tested a hydrogen-fueled aircraft engine — a world first in aviation.   POLITICO APP USERS: UPGRADE YOUR APP BY DECEMBER 19! We recently upgraded the POLITICO app with a fresh look and improved features for easier access to POLITICO's scoops and groundbreaking reporting. Starting December 19, users will no longer have access to the previous version of the app. Update your app today to stay on top of essential political news, insights, and analysis from the best journalists in the business. UPDATE iOS APP – UPDATE ANDROID APP .     Subscriber Zone A showcase of some of our best subscriber content. The U.S. Supreme Court, as photographed Sept. 2, 2021. | Francis Chung/E&E News A dozen oil and gas companies are asking the Supreme Court to intervene in a lawsuit against the industry, arguing it could "disrupt and impede" international climate change talks. Wyoming has sued the Biden administration in an effort to reinstate two oil and gas lease sales that were originally scheduled for 2021. John Podesta has recruited policy experts from across the executive branch to help him oversee the rollout of the massive new climate and clean energy law. That's it for today, folks! Thanks for reading.   A message from Chevron: Renewable fuels can help lower lifecycle carbon emissions in industries around the world. At Chevron, we're working to bring more renewable fuels to vehicles, today. Our renewable diesel can fuel trucks, trains, heavy-duty vehicles, and more, without requiring new equipment or infrastructure. The fuel—which is made with bio feedstock—has lower carbon intensity than regular diesel. It's just one of the ways Chevron is committed to increasing our renewable fuel production, and fueling a lower carbon world. Find out more about our renewable diesel.     Mark your calendar! The fourth annual edition of the Future Sustainability Week will take place from November 29 to December 1. Take part in discussions about the most current and pressing sustainability policies together with our expert speakers. Join this three-day-long summit, either in Brussels or online, by  registering today !       Follow us on Twitter Arianna Skibell @ariannaskibell   Follow us

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