The Friday Report Blog: October 7th, 2022

Honda to Construct Electric Vehicle Battery Plant in Ohio

Honda has announced a partnership with electric vehicle battery maker, LG Energy Solution, to build a lithium-ion electric battery manufacturing facility. Construction of the Fayette County, Ohio plant is set to begin in the first quarter of 2023 and will support Honda and Acura electric vehicle production. The facility is projected to open towards the end of 2025. The companies have pledged an initial investment totaling $3.5 billion to construct the plant, however executives believe that the total cost will reach at least $4.4 billion.

In addition to the partnership with LG, Honda will also invest $700 million to modernize three Ohio plants for electric vehicle battery production. Honda hopes to begin production and sales of their electric vehicles by 2026, with electric vehicles representing all its North American sales by 2040.

Ford and General Motors have also invested in electric vehicle and battery facilities in the U.S. Ford is currently building a plant in Tennessee while General Motors operates plants in Ohio and Michigan.

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Online Fashion Retailer Shein to Cut Emissions 25% by 2030

Fashion retail company Shein has announced plans to cut its greenhouse gas emissions across its supply chain by the year 2030. Last year Shein produced nearly 6.3 million tons of carbon dioxide emissions.

Shein is collaborating with the Apparel Impact Institute and Interek to develop a three-part plan to reduce emissions. The Apparel Impact Institute will oversee the creation of energy-saving programs for 500 of Shein’s partner distribution centers. The companies hope that these programs will result in a 1.25-million-metric-ton reduction in greenhouse gas emissions per year. According to the institute, the operations of Shein’s supply chain network make up 99% of its annual emissions.

The fashion company will also construct a warehousing and distribution center in Indiana that will serve as its Midwest headquarters. This facility will be utilized to reduce reliance on airfreight, which is an emissions-heavy transportation method.

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U.S. Semiconductor Suppliers Ending Business with Chinese Manufacturer

Many of the leading American semiconductor-equipment manufacturers are removing staff from China’s largest memory chip maker facilities and suspending business due to newly implemented restrictions from the United States Department of Commerce on semiconductor exports.

Amid China’s efforts to improve its self-sufficiency and increase its global market share of the semiconductor industry, the U.S. has levied new rules to prevent China’s military from capitalizing on American technology. This has prompted American companies like KLA and Lam Research to withdraw employees from Yangtze Memory Technologies at a rapid pace.

The United States currently supplies 41% of chip-production equipment globally. The withdrawal of technical support staff from the Chinese facility will pause enhancements to the company’s chip manufacturing tools. This will slow operations and further development of their goods.

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