befast
9 months ago
I think the move on the LOI is rather smart. Unfortunately for US and European car maker industry, the upstream intergration into battery production is synonym of big trouble ahead. With limited lithium and rare earths resources, the Chinese auto industry will be the only one to get access to cheap batteries and will be able to flood the auto markets worldwide like the Japanese did in the 1970s and 1980s. Other companies will lose market shares, unless there is a turnaround on EV policy, that does not make any sense on a thermodynamic standpoint, when you take into account the efficiency of thermal engines vs the efficiency of power generation, renewable or not. Politicians should dig a little bit into scientific matters and try to understand the basics of thermodynamics, but it appears to be way beyond their intellectual capabilities