Norsk Hydro warns flood of Chinese electric vehicles threatens aluminium demand in Europe

[beijingwalker]

Norsk Hydro warns flood of Chinese electric vehicles threatens aluminium demand in Europe​

Major producer sa

Norsk Hydro plant in Norway. Aluminium is used in electric cars for battery pack casings and other components to help cut weight and offset the heavy battery, © Gwladys Fouche/Reuters

Harry Dempsey
Oct. 29 2023

A major European aluminium producer has warned that the increasing numbers of imported electric cars from China could have a big impact on regional demand.

Hilde Merete Aasheim, chief executive of Norsk Hydro, said the company was paying attention to this risk. “The fear when it comes to [electric vehicles] is imports into Europe and the impact on European car manufacturers. There is quite a steep curve right now,” she told the Financial Times in an interview.

“That is a threat that we are following: if European automakers start reducing their demand [for aluminium] because they are outcompeted,” she said.

Her comments highlight the ripple effects from growing Chinese EV imports for businesses in Europe from the car supply chain including raw material producers.

Aluminium is used in electric cars for battery pack casings and other components to help cut weight and offset the heavy battery, allowing EVs to travel further on a single charge.

The average EV produced in Europe in 2022 contained 283kg of aluminium, compared with 169kg for combustion engines, according to a study commissioned by European Aluminium, a trade body.

In September, the EU announced plans for an anti-subsidy probe of Chinese EVs that it said was “distorting” the European market and “flooding” global markets.

China is building battery plants far beyond levels needed to meet domestic demand, backed by regional subsidies and lending, and manufacturers are seeking to channel the excess supply into overseas markets.

European carmakers are responding to the threat in different ways. This week Stellantis, which owns brands including Peugeot and Jeep, said it would invest €1.5bn in a 20 per cent stake in Chinese EV start-up Leapmotor, in an attempt to profit from the influx of cheaper China-made EVs into Europe.

In the first seven months of 2023, China exported $13.1bn of EVs to Europe, compared with $15.4bn in the whole of the previous year, according to Chinese customs data. However, the majority of the vehicles are China-made versions of western brands such as Tesla.

The worries about aluminium demand in Europe come after the sector was hit by surging energy prices following Russia’s invasion of Ukraine last year, which forced smelters including Hydro’s Slovalco smelter in Slovakia to close. The industry also faces uncertainty over whether China, the biggest aluminium producer in the world, will maintain a 45mn tonne annual production cap.

Hydro’s adjusted earnings before interest, tax, depreciation and amortisation fell short of analyst expectations on Tuesday, falling 60 per cent to NKr3.90bn ($350mn) in the third quarter compared with the same period last year because of weaker global economic activity.

Norsk Hydro warns flood of Chinese electric vehicles threatens aluminium demand in Europe

Major producer says regional orders for the lightweight metal will drop if European carmakers cannot compete

www.ft.com

 

[tower9]

The European car industry can’t compete

 

[beijingwalker]

It'll be a chain reaction, with the fall of EU's car industry, it will take the whole supply chain industries down with it.

 

[tower9]

It'll be a chain reaction, with the fall of EU's car industry, it will take the whole supply chain industries down with it.

European industry is pretty much doomed in the next twenty to thirty years. The only viable industries left will be their wine industry, tourism and the Amsterdam red light district.

 

[Hamartia Antidote]

European industry is pretty much doomed in the next twenty to thirty years. The only viable industries left will be their wine industry, tourism and the Amsterdam red light district.

It didn’t have to be. This is what people get when they quickly laugh off people like Elon Musk. It’s not like electric cars started showing up last week in the market. They have had plenty of time. He warned them all years ago that they are going to be dead.

 

[SaadH]

It didn’t have to be. This is what people get when they quickly laugh off people like Elon Musk. It’s not like electric cars started showing up last week in the market. They have had plenty of time. He warned them all years ago that they are going to be dead.

Elon Musk is a bigger net contributor to the Chinese economy than he's to the western economies as a whole

 

[Hamartia Antidote]

Elon Musk is a bigger net contributor to the Chinese economy than he's to the western economies as a whole

That’s mainly due to Western worshipping by Chinese consumers due to low quality local brands. If Tesla tanked 10 years ago in China due to strong local brands instead of being a top seller like Apple the situation would even be more dire. Chinese companies would be walking into a completely unprepared market 10 years behind them in tech.

 

[beijingwalker]

That’s mainly due to Western worshipping by Chinese consumers due to low quality local brands. If Tesla tanked 10 years ago in China due to strong local brands instead of being a top seller like Apple the situation would even be more dire. Chinese companies would be walking into a completely unprepared market.

lol, how can Chinese local brands be low quality when Tesla is totally dependent on the Chinese supply chain? and how do you explain the decline of Tesla and rise of Chinese local brands now in the Chinese market? China can kill Tesla overnight but Tesla can do nothing to stop the production of Chinese cars.

 

[mulj]

The European car industry can’t compete

They can but morons jumped into this EV hype and cut well established branch.

 

[Hamartia Antidote]

how do you explain the decline of Tesla and rise of Chinese local brands now in the Chinese market?

Decline of Tesla?? The model y looks like it is going to be the top selling car in China this year…and that includes all combustion engine cars too. Sales have not declined at all.

Infact right now the Model Y is the top selling car in the world for all of 2023. The first EV ever. Your car companies are incredibly late to the party.

The China decline is in other automakers marketshare. Maybe you should be asking about the decline of the other car models that were ahead of the Model Y last year instead…and that included Chinese cars.

Can you name a foreign market where a Chinese auto company has the #1 selling car…nevermind the world.

 

[beijingwalker]

Decline of Tesla?? The model y looks like it is going to be the top selling car in China this year…and that includes all combustion engine cars too. Sales have not declined at all.

Infact right now the Model Y is the top selling car in the world for all of 2023. The first EV ever. Your car companies are incredibly late to the party.

The China decline is in other automakers marketshare. Maybe you should be asking about the decline of the other car models that were ahead of the Model Y last year instead…and that included Chinese cars.

Can you name a foreign market where a Chinese auto company has the #1 selling car…nevermind the world.

Are we talkinga about the same China?

 

[Hamartia Antidote]

Are we talkinga about the same China?

View attachment 966910

LOL yes it is the same China..remember the Shanghai factory has to juggle exports too.

You know all that talk about China exporting cars..with a high percentage being Teslas.
Look at the September export bar. Note how when the export bar goes up the local bar goes down.

The funny thing is even with all the exports limiting the amount available to the Chinese local market the Tesla Model Y STILL manages to remain at the top in China.

 

[beijingwalker]

LOL yes it is the same China..remember the Shanghai factory has to juggle exports too.

You know all that talk about China exporting cars..with a high percentage being Teslas.
Look at the September export bar.

The funny thing is even with all the exports limiting the amount available to the Chinese local market the Tesla Model Y STILL manages to remain at the top in China.

My data is the lastest with sources, how new is your sources and mind leaving them here?

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