The Friday Report Blog: October 28th, 2022

Quick wrap up of a few hot topic newsworthy stories in the supply chain logistics industry

Biden Administration Awards $2.8 Billion to Expand EV battery Manufacturing

President Biden has announced the awarding of $2.8 billion in grants to expand United States electric vehicle battery production. Twenty companies were recipients of the grants, ranging from $50 million to over $480 million. These grants are part of the first round of funding of the landmark Bipartisan Infrastructure Bill.

In addition to announcing the grants, President Biden declared the American Battery Materials Initiative as active. This program is an effort to obtain reliable and sustainable supply of materials used in EV battery production. The President says that these actions will raise U.S.  electric vehicle battery supply which is necessary to minimize American reliance on China.

A large amount of the funding was awarded to companies that will supply parts to major automakers. Sila Nanotechnologies was awarded $100 million to construct a facility in Moses Lake, Washington. This plant will supply Mercedes-Benz with battery components that are necessary for Mercedes EV battery production. Talon Nickel received $114.8 million to build a facility in Aitken County, Minnesota to help Tesla meet EV battery demand.

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Amazon Set to Add 10 Hawaiian Airlines Freighters to Fleet

E-commerce giant Amazon has announced that the company will add ten cargo airplanes to its fleet. These aircraft will be used to expand the company’s express shipping capabilities. The A330-300 cargo planes will be flown and maintained by Hawaiian Airlines. Amazon Air currently has over 110 aircraft operating around the globe.

The partnership between Amazon and Hawaiian Airlines is for eight years. The airline will be responsible for flight crews, maintenance, and administrative functions. Amazon has agreed to pay Hawaiian Airlines a fixed monthly rate per aircraft, a per flight hour fee, and a per flight cycle fee. Amazon will also reimburse expenses such as fuel.

Amazon Air is currently facing a slump in growth. The company’s daily flight activity fell from 14.3% to 3.8% between the months of March and August. Amazon states that this is due to less e-commerce demand. The company predicts that the Holiday season will improve its growth.

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Apple Urges Suppliers to Eliminate Carbon Emissions by 2030

Tech giant Apple has announced that its parts manufacturers must work to minimize greenhouse gas emissions by 2030. Apple plans to make its entire supply chain carbon neutral in that time frame.

To assist their suppliers in the change to renewable energy, Apple has planned solar and wind energy construction projects in Europe. The projects are estimated to create between 30 and 300 megawatts of energy. Apple’s end goal is to produce enough low-carbon energy to power devices across the entire European continent.

Over 70% of Apples suppliers have committed to reducing carbon emissions. Its largest chip vendor, Taiwan Semiconductor Manufacturing Company, has promised 100% of its Apple production will be completed with renewable energy.

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