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Electric truck industry advances as EU cuts tolls

  • Market: Metals
  • 10/12/20

Europe's electric trucking industry is likely to advance rapidly after EU ministers greenlit plans to cut tolls by 50pc for emission-free trucks until April 2023, while major automakers increase investment in large electric fleets.

Earlier this week, EU transport ministers greenlit plans to cut tolls by 50pc for trucks that are electrified or run on hydrogen, while individual member states can provide discounts of up to 100pc until 2025. Hauliers' annual tolling costs can reach up to €25,000 ($30,190) per truck, EU-backed research group Transport and Environment (T&E) said.

While much of the electrification is focused on passenger cars, large-scale vehicles such as trucks are often seen as one of the most important areas to electrify, given the length of time a single truck can spend on the road. Trucks account for 23pc of all road transport emissions in the EU, T&E said, but currently electric trucks make up only 0.01pc of the 6.6mn medium and heavy-use vehicles on Europe's roads, European Automotive Manufacturers' Association (ACEA) data show.

The EU's decision to cut tolls comes as further private investment in electric trucks starts to take hold. Major players such as Volvo and Daimler are offering a wider range of heavy-duty vehicles to haulage firms already, with the former selling a complete range of battery electric trucks for distribution in Europe.

Volvo said that its new trucks have a gross combination weight of 44t and an expected range of 300km, depending on the battery configuration. While sales will begin next year, volume production will start in 2022, it said.

But unlike many major passenger car sellers that aim to move all-electric by 2030, Volvo plans to still offer diesel and petrol engines until the end of its transition period in 2040.

German auto giant Daimler plans to offer all-electric trucks by 2022 as part of its plan to become more sustainable. Last week, Daimler's board approved a €70bn plan to move towards electrification and digitisation between 2021 and 2025.

Earlier today, the firm said that it would be working with American-German chemical firm Linde on a liquid hydrogen refuelling technology to be used in some of Daimler's trucks, aiming for a prototype of the vehicle by 2023.

Further investments are being made in the US, where haulage is a major contributor of emissions. According to the country's Environmental Protection Agency, heavy and medium-duty trucks account for 23pc of greenhouse gas emissions but only make up 6pc of all vehicles on the road.

But uptake, albeit slow, is rising. Wood Mackenzie estimates that 54,000 electric trucks will be on American roads by 2025, up from 2000 last year.

Volvo has already launched electric trucks for use in the US, such as the Volvo VNR Electric, which was made commercially available last week. Newer firms such as Tesla are also launching trucks to be made in 2021, with orders already being taken from the likes of Walmart and Pepsi for Tesla's Semi, which will be produced in Texas. General Motors last month signed a memorandum of understanding with Tesla rival Nikola for its semi-trucks, with a prototype scheduled for 2022.


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Viewpoint: Why EVs hold the key to the next US election

Viewpoint: Why EVs hold the key to the next US election

London, 20 January (Argus) — While the inauguration of President Donald Trump may have sent a shudder through the boardrooms of electric vehicle (EV) producers, boosting the US EV market during his term may be the best way to keep Republicans in the White House in 2028. President Trump has been highly critical of the EV market in previous years, and aims to abolish the $7,500 consumer tax credit for EVs. Despite this, a combination of the Inflation Reduction Act (IRA), corporate tax breaks, support for Tesla owner Elon Musk and, counter-intuitively, an oil boom, could herald the start of the good years for the US EV market. And a Trump administration would be foolish to resist it. IRA boosts key swing states Donald Trump ran on a manufacturing ticket. Among his slogans were "drill baby drill" and an evolution of the MAGA tagline: "Make America Greater Than Ever Before". That second slogan cannot be achieved without manufacturing the technologies of the future, including EVs, and thanks to former president Joe Biden those jobs might land in key areas for the 2028 campaign. The US EV market has had a slow start to the latest phase of expansion, lagging behind as Europe and China boomed in 2022-2023. This changed last year, as US EV sales in 2024 rose by 7.2pc and totalled 1.3mn, according to Cox Automotive. Momentum is starting to build. The Inflation Reduction Act (IRA) passed under Biden's tenure has become a catalyst for EV investment, much of it in key swing states and red states. This makes it unlikely the Trump administration will roll back any of the government money allocated to projects since the IRA was passed. In a study from August 2024, US clean energy think-tank E2 discovered nearly 60pc of the announced projects under the IRA are based in Republican congressional districts. Of all new projects, Republican districts represent 85pc of investment and 68pc of jobs. Of the top 20 congressional districts for clean energy investments, 19 are held by Republicans. The largest of these investments so far, Toyota's $13.9bn EV production plant, is in the key swing state North Carolina, which Trump won by a 183,000 vote margin in 2024. The Toyota plant will create up to 5,000 jobs, most of which are due to start during Trump's second term. Other swing states have multiple projects supported by the IRA. Michigan, Georgia, South Carolina, Texas and North Carolina have over 20, while Ohio, Tennessee, California, New York, Indiana and Arizona have more than 10. Most of the states with multiple projects are key marginals which were pivotal for a Trump victory in 2024, except California and New York. Unfortunately for Biden, the benefits of his flagship legislation were too late to save the presidency for the Democrats, but they may benefit Republicans next time around. Big tech and big oil The new Trump administration is filled with contradictions, which are likely to expand into open conflict. Nowhere is this more evident than the contrast between interests of Tesla founder Elon Musk and Trump's "drill baby drill" policy. Although Musk has rolled back some his more fervent views on climate change, he still supports a transition to EVs, led by Tesla. His competition in the oil industry have also started to shift their policies on electrification. Both ExxonMobil and Saudi Aramco, two leading oil majors, have announced investments into lithium extraction over the last year. Trump's promised tax cuts and oil licence bonanza may give them a windfall of cash just at the point that oil executives are looking to put money into the electric transition. Despite his pro-fossil fuel rhetoric, Trump may leave office having presided over an increasingly green America. By Thomas Kavanagh EV sales in the US, by carmaker ('000s) Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Export opportunities crucial for Turkish mills in 2025


17/01/25
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17/01/25

Export opportunities crucial for Turkish mills in 2025

London, 17 January (Argus) — Waning prospects for the Turkish domestic rebar market means domestic steel mills are keeping a close eye on developments in potential key export destinations, as well as in key global demand drivers China and the US. The recent ceasefire deal between Israel and Hamas could lead to a recovery of Turkish exports to Israel in the coming months, while there is some expectation that the Chinese government will announce further stimulus packages once Donald Trump is inaugurated as US president on 20 January for a second term. At the same time, mills producers will be keen for the Turkish government to persuade Syria's new government to soften its stance on its steep hike in import duties announced earlier this week. Post-earthquake reconstruction work in southern Turkey is not likely to provide the same level of support to prices this year that it did last year. Earthquakes struck in the Iskenderun region of Turkey and in northern Syria in February 2023, eventually resulting in strong demand for rebar used for reconstruction work throughout most of last year. But the premium enjoyed by Iskenderun-based steelmakers as a result has become a discount in recent weeks as demand has faded, and with local supply so far failing to respond. In housing projects, rebar is required mainly in the foundations of buildings, and so even for projects that are not yet completed, the spike in rebar demand in the region may have run its course. Recent acquisitions in the Iskenderun region by major producers Habas and Tosyali are squeezing local prices, with Tosyali's July acquisition, the former Bastug steelworks, currently operating at 75pc capacity, or 3,000 t/d, according to local sources. There could be further consolidations and also an idling of capacity in the Turkish market in the coming months, as smaller companies struggle against tepid demand and elevated costs. Tosyali is considering making a bid for Izmir-based longs producer Ege Celik, market sources said. The export market will continue to be a challenge for Turkish suppliers this year, as it has been for the past few years, and Trump's return to office is set to push the world towards more trade barriers. The Israel-Hamas ceasefire deal, approved by the Israeli parliament today, could lead to an outlet for Turkish steel, as the Turkish government is expected to quietly allow companies to export to Israel again if fighting does not resume. Before the conflict broke out, Israel was a major destination for Turkish rebar. The Turkish trade ministry today said it will meet with Syrian representatives next week to pursue a free trade deal, following the new Syrian government's decision to raise import tariffs steeply with immediate effect, with duties on some commodities increasing fourfold. If the higher tariffs remain in place, it could significantly dent southern Turkish rebar producers' hopes of selling large volumes to Syria from later this year onwards as the country starts to rebuild following several years of civil war. Overall, Turkish mills will be more reliant on export opportunities this year than in 2024, with much ultimately depending on the extent to which Chinese exports continue to pressure the global steel market. The International Rebar Exporters' Association today said its hopes for a real resurgence in Chinese domestic steel demand were muted, implying that Chinese export volumes are likely to remain elevated after hitting record levels in 2024. By Brendan Kjellberg-Motton Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Port of Liverpool to hike steel handling, storage fees


17/01/25
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17/01/25

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