Mobility news, February 12-18, 2024

Spain accelerates towards a greener future with the Sustainable Mobility Act

Spain has taken a significant leap towards environmental sustainability and modern urban living with the launch of the Sustainable Mobility Act. This initiative is part of a broader €2.5 billion investment that also includes housing guarantees. The Act aims to transform urban areas into spaces centred around people rather than vehicles, encouraging walking, cycling, and the use of public transport. By targeting decarbonisation, efficient spending, digitalisation, and recognising mobility as a fundamental right, the Spanish government is paving the way for cities that are both more liveable and less reliant on carbon-intensive modes of transport. This move not only reflects Spain's commitment to tackling climate change but also its dedication to enhancing the quality of urban life through sustainable mobility solutions.

China's EV sector aims to power global expansion with cutting-edge tech

Chinese electric vehicle companies are steering the future of global mobility by harnessing advanced technology and competitive pricing to forge partnerships in the West. Noteworthy examples include 比亚迪 's expansion with new manufacturing sites in Europe and North America, and U POWER Tech redefining vehicle architecture with its innovative EV chassis, dubbed skateboards. These initiatives are supported by significant Western investments, such as Volkswagen's $700m collaboration with XPENG Motors 小鹏汽车 and Stellantis 's ￡1.5bn investment in Leapmotor , highlighting the allure of Chinese EV technology. Furthermore, collaborations extend beyond vehicles to essential components and software, with enterprises like Gaain FD Corp and DeepRoute.ai delivering state-of-the-art laser and autonomous driving technologies to major global brands. This concerted effort underscores China's strategic ambition to position itself as a key player in the international EV ecosystem, combining technological excellence with strategic overseas expansion.

Albemarle adjusts lithium demand forecast as EV market shift slows

Albemarle Corporation , the leading lithium producer, has revised its 2030 demand prediction for lithium downwards by 10%, attributing this adjustment to a slower transition towards electric vehicles in the US and Europe than initially anticipated. Delays in the launch of new EV models by major car manufacturers, including Tesla, Ford, and General Motors, due to tepid consumer uptake, particularly in the US, have contributed to this reassessment. Consequently, Albemarle now estimates a global need for 3.3 million tonnes of lithium carbon equivalent by 2030, a decrease from its former projection of 3.7 million tonnes. This revision comes amidst a backdrop of plummeting lithium prices and Albemarle reporting a significant loss, underscoring the challenges the industry faces despite the long-term growth potential fuelled by ongoing EV adoption, particularly in China.

Surf Air Mobility electrifies the skies with the Electra eSTOL

Surf Air Mobility , an innovative green air mobility operator, is set to revolutionise regional travel with its early acquisition of 90 Electra eSTOLs (electric short takeoff and landing aircraft). By integrating these cutting-edge planes into its fleet, Surf Air aims to drastically reduce travel times, such as cutting a Los Angeles-San Diego trip from over three hours to just one and a half hours, leveraging the Electra's remarkable ability to operate from smaller airports with minimal infrastructure. This move not only promises a significant boost in efficiency and convenience for passengers but also marks a significant step towards sustainable aviation, with the Electra eSTOL offering zero-emission flights and a range of 500 miles at a cruising speed of 175 knots, accommodating up to nine passengers. Surf Air's bold strategy highlights its commitment to electrifying air travel, showcasing a future where regional flights are greener, faster, and more accessible.

Aichi prefecture: the new frontier for aerospace and mobility start-ups

Aichi Prefecture , the heartland of Toyota Motors, is emerging as a key base for start-ups specialising in future transport technologies like space planes, drones, and flying cars. This shift is driven by the automotive industry's urgent need to diversify amidst the challenges posed by electric vehicles. With local government support and collaboration with Toyota and its suppliers, these start-ups, including PD Aerospace and Prodrone, are leveraging the region's rich manufacturing legacy and engineering expertise to innovate in air mobility and space travel. The opening of Station Ai, a start-up incubation centre, and the cooperative efforts with major companies and local entities underscore Aichi's ambition to become a leading hub for next-generation transport solutions.

Renault and Stellantis brace for cost-cutting amidst EV transition

Renault and Stellantis are set for significant cost reductions in what's anticipated to be a turbulent year, fraught with economic and political uncertainties and the challenges posed by the shift to electric vehicles (EVs). Despite witnessing rising profits and rewarding shareholders with dividends and a share buyback scheme, both car manufacturers are under pressure to slash EV production costs to stay competitive. Renault is targeting a 40% reduction in EV costs by 2027, while Stellantis plans to launch eight new electric models in the US, emphasising efficiency improvements in the face of lower margins from EVs compared to traditional internal combustion engine vehicles. This strategic shift is essential as they navigate through a year of uncertainty, with Stellantis experiencing a minor dip in margins due to weaker sales in North America and the impact of strikes, whereas Renault projects a slight decrease in margins for 2024 despite achieving a record profit the previous year.

US luxury car imports delayed due to banned Chinese part

Thousands of Porsche, Bentley, and Audi vehicles have been impounded in the US after a Volkswagen supplier discovered a subcomponent from China that violated anti-forced labour laws, delaying deliveries potentially until the end of March. The electronic component's origin was unknown to VW until the supplier's alert, prompting immediate notification to US authorities amidst ongoing efforts to stabilise US-China relations. VW is investigating the allegations and may terminate the supplier relationship if violations are confirmed, especially against the backdrop of concerns regarding VW's operations in Xinjiang, China.

Uber shifts gears to profitability, marking a new era in ride-sharing dynamics

Uber has transitioned into profitability, marking a significant milestone for the company and its operations within the mobility and transport sector. In a recent update, Uber reported positive true free cash flow, distinguishing itself from competitors like Lyft, which has also projected positive free cash flow for the next year. This achievement suggests a consolidation and maturing of the ride-sharing industry, despite ongoing debates about Uber's long-term viability as a transport company versus a tech entity. Analysts are now focused on understanding Uber's future growth trajectory in the mobility market, as the company seeks to expand its ride-sharing services and capitalise on its current momentum.