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Europe Boosts Battery Production; Autoworker Win is a Boon for Robots

By Paul Berger

 

Northvolt is expanding its battery plant in Sweden. PHOTO: JONATHAN NACKSTRAND/AGENCE FRANCE-PRESSE/GETTY IMAGES

Europe is boosting efforts to reduce its reliance on Chinese batteries. The European Union is contributing almost $1 billion toward $3.4 billion in lending for Swedish battery-maker Northvolt to increase production and recycling of batteries in Sweden. The WSJ’s Amrith Ramkumar and William Boston report that the funding is part of a push across Western countries to loosen China’s control over swaths of the battery supply chain from metals processing to cell assembly. The U.S. and European governments are throwing billions of dollars in tax credits, loans and grants at companies to build up supply chains that power electric cars and store energy from the wind and sun. Northvolt’s funding is one of the largest transactions for a clean-energy company in recent years and includes funding from banks such as JPMorgan Chase and Citigroup. The Swedish plant will provide batteries for customers including Volkswagen and BMW.

 
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Manufacturing

Auto assembly line workers in Slovakia. PHOTO: AKOS STILLER/BLOOMBERG NEWS

The United Auto Workers’ big win in 2023 is also a victory for robots. Auto executives are exploring ways to blunt increased labor costs after the union won a record 25% wage increase over four years. The WSJ’s Nora Eckert reports that automakers are increasingly looking toward automation as a solution. Robots have been working on auto assembly lines for decades. Rising labor bills and improvements in technology are expected to accelerate adoption of the machines. Ford Motor believes the new union contract will add $900 in cost per vehicle by 2028. Its finance chief recently pointed to “opportunities in automation” as a way of offsetting the extra expense. Experts say a wave of job cuts isn’t imminent. Installing automation is expensive and retrofitting an existing factory is often cost prohibitive. Instead, automakers are expected to phase in robots by replacing human workers as they retire.

 

Quotable

“Automation is the future. More so than we’ve ever seen.”

— Laurie Harbour, of Michigan consulting firm Harbour Results.
 
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Number of the Day

1.077

The Cass Freight Index for U.S. domestic shipping for December, not seasonally adjusted, down 7.2% from the year before and 1.6% below the previous month to the lowest level since July 2020.

 

In Other News

China’s economy grew 5.2% in 2023. (WSJ)

Inflation accelerated in Canada in December. (WSJ)

Natural-gas prices are expected to remain low for the rest of 2024. (WSJ)

Danish shipping giant A.P. Moeller-Maersk and Germany’s Hapag-Lloyd are teaming up to form a new vessel-sharing agreement from next year. (WSJ)

A federal judge blocked a $3.8 billion deal in which JetBlue Airways planned to acquire Spirit Airlines. (WSJ)

Uber Technologies is shutting down Drizly, the alcohol-delivery service it acquired for $1.1 billion in 2021. (WSJ)

Private-equity firm TPG is acquiring supply-chain risk company Sayari Labs. (WSJ).

Shell suspended shipments through the Red Sea indefinitely after U.S. and U.K. strikes on Yemen’s Houthi rebels triggered fears of further escalation. (WSJ)

Michelin is pausing tire production at four factories in Spain because of Red Sea shipping delays. (Dow Jones Newswires)

Insurers are raising war risk rates following recent attacks on U.S. and Greek ships in the Red Sea. (TradeWinds)

India to U.S. ocean rates are surging because of Red Sea disruptions. (Journal of Commerce)

CMA CGM and Air France-KLM are ending their air cargo alliance after a row over flight slots at Amsterdam airport cast doubt over regulatory approval in the U.S. (Reuters)

A motorist jumped out of his car and dove into a freezing Minnesota river to rescue a box truck driver who had crashed moments earlier. (KARE 11)

 

About Us

Paul Page is editor of WSJ Logistics Report. Reach him at paul.page@wsj.com.

Follow the WSJ Logistics Report team: @PaulPage, @bylizyoung and @pdberger. Follow the WSJ Logistics Report on X at @WSJLogistics.

 
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