UAW deal eases just one obstacle for EVs

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

Oct 31, 2023 View in browser   By Joel Kirkland Presented by Chevron United Auto Workers members strike a General Motors plant last month in Lansing, Mich. | Bill Pugliano/Getty Images The deal between the United Auto Workers and Detroit automakers could ensure unionized workers play a large role in the transition to electric vehicles. But it's still unclear whether Ford, General Motors and Stellantis (think Jeep, Dodge and Ram) will be able to successfully transition from gasoline cars to electric ones — and be profitable in the end, writes David Ferris. The traditional automakers are up against Tesla, which isn’t unionized and has cut the prices of its top selling models. The Detroit Three, meanwhile, have slowed their investments in the electric vehicle market, as they grapple with wavering buyer enthusiasm for still-pricey vehicles. “When you have higher labor costs, does it change your ability to invest? I would say yes,” Rob Handfield, a business management professor at North Carolina State University, told Power Switch. Political tightrope The labor deal comes as President Joe Biden faces a tough reelection campaign in must-win states like Michigan. Through his push to get more EVs on the road, Biden is making a case that an aggressive effort to combat global warming can yield secure jobs for Americans. But a careful balancing of policy priorities is required to get there. China dominates the global supply of materials and designs for electric car batteries. Biden’s Treasury Department is expected to set rules soon spelling out how strictly it will enforce a U.S. ban on car companies using battery parts and minerals from Chinese suppliers. That matters for both electric car makers and buyers. Embedded in Biden’s signature climate law are tax credits that add up to $7,500 in savings on cars built with domestically sourced supplies. That help from the federal government to bring down the cost of purchasing an EV has spurred billions of dollars in spending on EV and battery plants across America’s midsection, from Michigan to Tennessee. But access to critical minerals such as lithium and nickel is the hitch: North America has virtually no large-scale supply chain for the minerals needed for battery manufacturing. That accounts for half of the EV tax break.   It's Tuesday — thank you for tuning in to POLITICO's Power Switch. I'm your host, Joel Kirkland. Power Switch is brought to you by the journalists behind E&E News and POLITICO Energy. Send your tips, comments, questions to jkirkland@eenews.net.   A message from Chevron: Chevron knows methane management is critical for a lower carbon future. We’re striving to lead in methane management with innovative practices, partnerships, and new technologies. These are a few ways we’re aiming to keep methane in the pipe.   Listen to today’s POLITICO Energy podcast Today in POLITICO Energy’s podcast: Alex Guillén breaks down the latest push to set a national program to regulate greenhouse gas emissions.   GET READY FOR POLITICO’S DEFENSE SUMMIT ON 11/14: Russia’s war on Ukraine … China’s threats to Taiwan … a war in Gaza. The U.S. is under increasing pressure to deter, defend and fight in more ways — but not everyone agrees how. Join POLITICO's 3rd Annual Defense Summit on November 14 for exclusive interviews and expert discussions on global security and the U.S.'s race to bolster alliances and stay ahead of adversaries. Explore critical topics, including international conflicts, advanced technology, spending priorities and political dynamics shaping global defense strategies. Don’t miss these timely and important discussions. REGISTER HERE.     Power Centers Five turbines stand off the coast of Block Island, R.I. | David Goldman/AP Another wave of wind The Interior Department on Tuesday approved a project off the coast of Virginia Beach that will be the country's largest, writes Heather Richards. The Coastal Virginia Offshore Wind project, which will include up to 176 turbines, is the fifth large offshore array that Biden has approved for construction. Everything but the kitchen sink Republicans are widening their assault on the Biden administration's energy efficiency proposals, moving beyond gas stoves to other household appliances such as ceiling fans and ice-makers, Nico Portuondo and Andres Picon write. In legislation and in hearings, GOP lawmakers are arguing that Department of Energy efficiency rules are un-American and making lives worse. Among their targets: a DOE rule that would force water heater manufacturers to transition to electric heat pump technology. The ferry of the future — or not An electric passenger ferry has caught the attention of Maryland counties that are looking to link towns across Chesapeake Bay, writes Corbin Hiar. But the Swedish makers of the 30-passenger Candela, which is in the testing phase, are still figuring out how to comply with the Jones Act, a law that requires ships that move goods between U.S. ports to be domestically built and crewed.   A message from Chevron:   In Other News Texas toxics: The state's prolific oil and gas wells have spilled nearly 150 million gallons of wastewater over the last decade, with companies only able to recover about 40 percent of the water spilled. Timber towers: Building codes are being rewritten in Europe and the United States to accommodate the latest trend in sustainable architecture: tall, wooden buildings that lock the carbon of a clear-cut forest into the built environment.   A message from Chevron: By 2028, our upstream methane intensity target is set to be 53% below the 2016 baseline. To help us get there, we’ve trialed over 13 advanced methane technologies including satellites, planes, drones, and fixed sensors to help reduce methane emissions intensity. In the Permian, we have deployed real-time autonomous optimizers that continuously monitor facilities and well conditions to help prevent flaring, venting and well shutdowns. Developing new solutions to provide energy that’s affordable, reliable and ever-cleaner, that’s energy in progress.   Subscriber Zone A showcase of some of our best subscriber content. The Interior Department's new acting deputy secretary, Laura Daniel-Davis, on Capitol Hill. | Francis Chung/POLITICO Laura Daniel-Davis will become the Interior Department's acting deputy secretary, the agency announced Tuesday. Daniel-Davis, the agency's principal deputy assistant secretary for land and minerals management, has faced Senate opposition for her confirmation to the No. 2 spot. Banking regulators are posing an unexpected threat to the Inflation Reduction Act, Biden's signature climate law. Some Senate Republicans want to know why Department of Energy money for hydrogen hubs went to projects disproportionally represented by Democrats. That's it for today, folks! Thanks for reading.   SUBSCRIBE TO CALIFORNIA CLIMATE: Climate change isn’t just about the weather. It's also about how we do business and create new policies, especially in California. So we have something cool for you: A brand-new California Climate newsletter. It's not just climate or science chat, it's your daily cheat sheet to understanding how the legislative landscape around climate change is shaking up industries across the Golden State. Subscribe now to California Climate to keep up with the changes.       Follow us on Twitter Arianna Skibell @ariannaskibell   Follow us

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