This week, we’re sharing the NEIS News Roundup, a monthly recap of major international developments in new energy industrial strategies and advanced energy systems. These selections capture global trends shaping industrial strategy and competitiveness, with a focus on investment, policy, trade, and technology.
Here are four major stories we’re following:
#1: Korean investments focus on supply chain security and competitiveness
South Korea’s government made several significant investment announcements this month aimed at boosting supply chain security and competitiveness in strategic industries.
Supply chain security:
Critical minerals: The Export-Import Bank of Korea committed $500 million via the Asia Development Bank (ADB) to support critical minerals projects — from exploration through to refining — in emerging economies in the Asia Pacific. It will provide a mix of loans, guarantees, technical assistance packages, and investments. ADB is planning to scale up its overall financing pool for critical minerals to $2-$3 billion. (Korea Herald, Korea Times)
Solar inverters: Korea’s Ministry of Climate, Energy and Environment launched a new initiative intended to expand domestic manufacturing of solar inverters and reduce import dependence on a technology that is critical for power grid stability. Initially, a consultative body will bring together public sector institutions, including Korea Electric Power (KEPCO) and Korea Energy Agency, with industry players such as OCI Power and HD Hyundai Electric to promote joint R&D and develop policy measures to support the industrial ecosystem. (News 1)
Competitiveness of strategic industries:
Shipbuilding: The Korean Government committed $1.4 billion across several initiatives to boost the competitiveness of Korea’s shipbuilding industry. The investment plans include building the world’s first 24-hour shipyard powered by AI and developing Level 4 fully autonomous vessels. (Korea Times)
In parallel, Korea signed a memorandum of understanding (MOU) with the United States to advance shipbuilding cooperation. This sits alongside Korea’s pledge to invest $150 billion in US shipbuilding as part of last year’s tariff negotiations. (Korea Times)
Sovereign wealth and investments: Domestically, Korea is preparing to launch a new sovereign wealth fund that targets investments in startups at Series B or later, particularly in AI and semiconductors. (Maeil Business News Korea) Korea’s move echoes the recent trend toward government equity investments in strategic firms that we’ve seen emerge in the United States (e.g., Intel, MP Materials) and also Japan, where the government is backing emerging semiconductor company Rapidus. (CSIS, Japan Times)
Korea also announced it would raise $412 million from retail investors who want to participate in a state-backed fund targeting the AI and semiconductor industries. (Korea Times)
Industrial transformation: Finally, the Government announced $200 million in funding for industrial complexes to undertake AI and green transformation projects and $36 million for AI infrastructure at factories. (Korea Times, Korea JoongAng Daily)
#2: North America retreats while the rest of the world races ahead on electric vehicles
Next, we look at the diverging regional trends in EV and battery manufacturing investments.
In North America, the boost to EV sales since the start of the current fuel crisis has not been enough to counter softer demand forecasts driven by the end of US federal tax incentives for EV purchases and the rollback of vehicle emissions standards.
Last month, General Motors idled its EV plant in Detroit and Volkswagen announced it would cease production of electric vehicles in Tennessee. (Reuters, Crain’s Detroit Business, New York Times)
This month, Honda announced it is suspending a planned EV megaproject in Canada — first announced in 2024 as a CAD $15 billion project. (The Manufacturer)
Ford also announced a pivot from EVs to storage systems for its battery production capacity in Michigan — built with technology licensed from China’s CATL — and announced a 5-year, 20 GWh supply deal with renewable energy developer EDF. (E&E News, Reuters) This announcement follows Ford’s $20 billion write-down of its EV business last year and suspension of production of its F150 Lightning electric pickup truck. (New York Times)
Though the major players are retreating, some smaller and emerging automakers provide a current in the other direction:
Polestar announced plans to build its Polestar 3 EV entirely in South Carolina, consolidating production that is currently split across South Carolina and Chengdu, China. (Inside EVs)
Startup Slate Auto announced it is scaling up operations at its HQ in Detroit, with a $10.4 million investment and 400 new jobs, as it prepares to launch its minimalist electric pickup truck. (Crain’s Detroit Business)
Another bright spot in the US EV market this month was electric trucks: California announced a $1 billion rebate program for medium- and heavy-duty electric trucks (California Governor’s Office) , and Tesla finally began production of its Class 8 semi truck at its factory in Nevada. (Canary Media)
The EV manufacturing retraction in North America is happening despite the US market being shielded from competition from Chinese car brands. America’s protectionist stance was underscored when lawmakers in Congress introduced legislation this month to codify an already existing ban on Chinese automakers — a move widely seen as an attempt to prevent President Trump from using US market access as a bargaining chip in his meeting with President Xi. (Reuters)
The rest of the world, meanwhile, is moving in the opposite direction, with record EV sales driven by high petrol costs underpinning a wave of momentum for EV manufacturing capacity.
In Europe:
Tesla announced it would invest $250 million to expand battery cell manufacturing in Germany. (Investor’s Business Daily)
Stellantis and Chinese EV maker Leapmotor announced they will expand their partnership to produce EVs in Europe. (Reuters)
BYD is looking to new or underutilized factory space to expand European manufacturing. (Investor’s Business Daily)
In India, a total of $1.1 billion in new commitments, which include:
JSW announced $500 million funding for a research hub to build expertise in next-generation batteries and EV systems. (Economic Times)
Tata Group committed $400 million to battery research with the eventual aim to manufacture lithium iron phosphate (LFP) batteries in India. (Economic Times)
Ola Electric is investing $200 million into its battery and EV businesses as it doubles down on localization and vertical integration. (Economic Times)
And Indonesia announced it will introduce incentives to accelerate the adoption of 100,000 electric cars and 100,000 electric motorcycles in response to rising fuel costs. (Automotive Logistics)
#3: EU and US tariffs are reshaping where investment lands
Our third story examines how tariffs and local sourcing requirements in both the US and EU are increasingly redirecting investment into each region.
In Europe, recent announcements in EVs and batteries signal a strategic shift — particularly among Chinese manufacturers, who view the continent as a major growth market but recognize that trade barriers make local production a practical necessity. Despite significant overcapacity at home, Chinese automakers are not simply seeking export outlets; they are committing to European joint ventures as the primary vehicle for long-term market access.
In addition to the European EV announcements mentioned above:
Electrek reports that Ford is in advanced talks with Geely to sell some of its vehicle assembly lines at its factory in Valencia, Spain, as part of Ford’s efforts to reduce European production costs to compete with Chinese car brands. The deal may also include technology-sharing for advanced driving assistance systems, including automated driving.
Bloomberg reports that China’s SAIC Motor is likely to pick Spain over Hungary for a new EV factory — with details on capacity and investment still to be finalized.
And on batteries:
CATL, the world’s largest battery maker, is deepening its European commitment with an “In Europe, for Europe” strategy, planning to direct much of the $5 billion it recently raised in Hong Kong toward a wholly-owned plant in Hungary. The facility is set to begin operations this year with an initial capacity of 40 GWh, with headroom to expand to 100 GWh, and will become CATL’s second major European manufacturing site after Germany. However, the plant’s structure may attract scrutiny. Unlike many Chinese entrants, CATL has no European joint venture partner — an arrangement that could face pressure as Europe’s Industrial Accelerator Act progresses. Forthcoming regulations may require CATL to demonstrate deeper local commitment through R&D investment, technology sharing, and local hiring obligations. (Korea Herald)
Gotion High-Tech, another Chinese battery manufacturer, has provisionally secured €92 million from the Spanish Government’s e-mobility funding program, PERTE, to build two facilities in Spain (one focused on cathode production, another on battery recycling) for a total investment of €944 million. (Electrive)
Meanwhile, Korean battery makers LG Energy Solution, SK On, and Samsung SDI are determined to hold on to their European positions (160 GWh+ combined capacity). If the battery battleground shifts from EVs to energy storage systems (ESS), as it has elsewhere, EU local content requirements at the project level may carry even greater weight to access government-backed finance, an advantage — for now — for Korean battery makers already well-established in the region. (Korea Herald)
Chinese investment into the EU is flowing unevenly — with some countries more wary than others of attracting large manufacturing facilities owned or part-owned by China, and exposing domestic manufacturers to heightened cost pressures. Spain, however, has been a major beneficiary of recent investments. In 2020, Spain announced plans to spend €5 billion from pandemic recovery funds to attract EV and battery production. It has also signaled openness to Chinese investment by, for example, abstaining on the EU vote to impose additional tariffs on Chinese EV imports and urging the EU to reconsider penalizing Chinese-made EVs to avoid a trade war. (Investing.com)
In the United States, tariffs and negotiating pressure are inducing investment commitments — for example, this month:
Toyota filed for approval of a $2 billion ICE vehicle assembly plant in Texas. (Japan Times)
Polestar’s move to consolidate production in South Carolina is likely to avoid import tariffs. (Inside EVs)
Twelve Indian companies announced a total of $1.1 billion of investments in the US across aerospace, defense, energy, and AI. (Economic Times)
Korea is expected to launch the Korea-US Investment Corporation next month to support its investment commitment to the United States of $20 billion per year (and $350 billion) made during earlier trade and tariff negotiations. (Maeil Business News Korea)
All told, however, these new investments mask an overall decline in US manufacturing investment and a shift from clean to traditional industries, as production subsidies and other sectoral supports have disappeared. Rhodium Group and MIT’s Clean Energy Investment Monitor and Atlas Public Policy are tracking these trends.
#4: Geothermal and nuclear startups cash in on the data center power rush
Finally, geothermal startup Fervo Energy debuted on the US stock market this month. Fervo raised $1.9 billion at a valuation of $7.7 billion despite a current operational capacity of only 3.5 MW (plus a further 100 MW expected to come online by 2027). (Axios)
Fervo has a pipeline of 3.5 GW under advanced development with demand driven by data center owners looking for clean firm power with relative price insensitivity. Fervo already supplies power to Google, which has a right of first refusal over part of Fervo’s uncontracted pipeline. Fervo’s IPO filing also reveals discussions with several other large tech companies. (Axios, CTVC)
While the first-of-a-kind technical risk seems glaring for such a high valuation, a large part of Fervo’s value and competitive advantage are the resources it has secured: 596,000 acres (241,000 hectares) of high-quality geothermal resources in the western United States. Regarding its cost position and trajectory, Fervo’s first-of-a-kind plant will cost $7,000/kW while Fervo’s long-term target is $3,000/kW. Along the road, $5,000/kW capex will translate to approximately $100 per MWh, per CTVC.
RMI’s report looking at the geothermal supply chain in the United States argues that the ball is in the United States’s court to make the right investments to secure the supply chain as enhanced geothermal scales up. (RMI)
On the topic of power sector IPOs buoyed by AI power demand, small modular nuclear developer X-energy had a similarly heady stock market launch last month, raising $1 billion at an initial valuation of $9.1 billion. X-energy has its headline deal with Amazon, which is a major shareholder and anchor customer with an option on 5 GW of capacity. (Axios, Reuters, CNBC, CTVC)
Though investment and sector growth is strong — spilling over from AI and data centers into clean firm power generation — fresh reports of rapid power price increases (e.g. a 76% year-of-year increase in Q1 reported by PJM) once again highlight the significant pressure this source of industrial growth is putting on energy affordability in the US. (E&E News)
#5: Other stories we’re following
Government policy and investments:
Australian federal budget claws back A$300 million in unspent funds on battery and solar manufacturing and A$1 billion for hydrogen production, and commits A$14.8 billion to boost fuel security (Energy Storage News, Federal Budget)
The Indian Government may require manufacturers to demonstrate minimum design capabilities under new rules for its Electronic Component Manufacturing Scheme designed to incentivize upstream integration. (Economic Times)
The UK withdraws half its funding from the Green Climate Fund, set up by the United Nations (Bloomberg)
Europe will phase out the use of Chinese-made inverters in EU-funded projects, per officials who cited concern over cybersecurity risks to critical infrastructure (Euro News)
France released a roadmap to transition away from fossil fuels (Climate Interministerial Team)
South Korea’s Hanwha Group has signed an MOU to establish a joint venture producing military and industrial vehicles in Canada, though the deal is contingent on Hanwha Ocean winning the Canadian military’s submarine contract ahead of German rival TKMS. (CBC, Korea Times)
Japan and Australia announce an energy supply agreement and expanded critical minerals cooperation following bilateral meetings (Australian Industry Minister, Department of Prime Minister & Cabinet)
Member nations of the International Maritime Organization agree to keep working towards a carbon price on shipping (Associated Press)
India’s Cabinet approved $400 million for two new semiconductor projects under the India Semiconductor Mission (Economic Times)
CTVC, Rhodium Group and Reuters look at China’s evolving industrial strategy
Critical minerals and raw materials:
Miner BHP struck a major iron ore pricing agreement with Beijing denominated in renminbi (RMB) instead of the typical USD, effectively accepting China as an alternative benchmark price maker. RMB-denominated sales allow BHP to access low-cost RMB-denominated debt. (Australian Financial Review)
Brazil weighs restrictions on rare earth exports and incentives to boost domestic refining. (Valor International)
Critical Metals Corporation agrees to buy Australian-listed European Lithium for $835 million. (Bloomberg)
EVs and batteries:
European battery maker Morrow files for bankruptcy, under pressure from Chinese oversupply, capital intensity, and rising financing costs. (Battery Tech Online)
In China, electric trucks are booming while sales of electric cars taper after years of strong growth. (Bloomberg)
Loss-making Vietnamese EV maker VinFast announced a corporate restructure. (Reuters)
Semiconductors:
Samsung Electronics reaches last-minute deal with workers to avoid strike over AI profits. (Financial Times)
Sony and TSMC announced plans for a new joint venture in Japan to manufacture next-generation image sensors. (Reuters)
CATL signed a 60 GWh supply agreement for sodium-iron batteries with a major Chinese energy storage integrator — a major commercialization milestone for the battery technology, which has lower energy density than lithium-ion but may offer lower cost in certain applications long-term due to cheaper raw materials. (CTVC)
Solar:
India’s Tata Power announced it will invest $670 million in a solar ingot and wafer manufacturing facility with potential capacity of up to 10 GW. (Business Standard)
Storage:
India’s Adani Green plans to invest $1.6 billion in FY27 to improve power reliability in the Indian grid by adding 10 GWh battery storage. (Economic Times)
Nuclear:
The US Nuclear Regulatory Commission is establishing approval processes for microreactors and reactors with non-traditional designs. (Canary Media)
Brookfield partners with startup developer The Nuclear Company to restart construction of two conventional nuclear reactors in South Carolina. (Bloomberg)
Nuclear startup Blue Energy is partnering with Tier 1 turbine maker GE Vernova to supply its 2.5 GW gas-plus-nuclear project to power a Texas data center. (E&E News)
Until next month, that’s all from us.
