Accelerating Change: Supply Chains Tackle EV Demands and Sustainability Goals

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1. General Motors Secures Synthetic Graphite Supply for EV Batteries

General Motors (GM) has entered into a multi-year agreement with Norway's Vianode to supply synthetic graphite anode materials for electric vehicle (EV) batteries. This material will be utilized by the Ultium Cells joint venture between GM and LG Energy Solution. The agreement spans from 2027, when Vianode's North American plant commences production, through to 2033. Synthetic graphite is intended to diversify supply chains currently dominated by China, which controls 95% of global supply. Vianode's CEO, Burkhard Straube, emphasized the resilience this deal brings to North America's EV supply chain. The plant, either in the U.S. or Canada, is expected to produce 80,000 tons annually by 2030, enough for approximately 1.5 million EVs. Furthermore, Vianode's synthetic graphite boasts a 90% lower CO2 footprint compared to traditional methods. Vianode is also in discussions with other automakers about potential supply agreements. 

Source - Reuters 

2. Nissan's Sunderland Plant to Receive EV Powertrains from New UK Factory

Nissan's Sunderland plant in the UK will receive up to 340,000 electric vehicle powertrains annually from JATCO Ltd's new factory, set to be completed in 2026. This initiative is supported by a British government grant as part of the country's stringent EV mandates. Nissan is currently facing significant competition from Chinese EV manufacturers and is considering merging with Honda by 2026. To reduce costs, Nissan has also announced job cuts and reductions in global manufacturing capacities. In 2023, Nissan committed $1.4 billion to develop electric versions of two car models at its Sunderland facility. The new 138,840 square feet JATCO plant will involve a £48.7 million investment ($59.5 million) and will create up to 183 jobs in Sunderland. 

Source - Reuters

3. JBS Clarifies Net-Zero Emissions Commitment

JBS, the world's largest meatpacker, declared in 2021 a commitment to achieving net-zero emissions by 2040 and ending illegal deforestation in its supply chain. However, Jason Weller, JBS's global chief sustainability officer, has since described the net-zero emissions target as merely an "aspiration." He emphasized that the company cannot control farm operations but encourages voluntary changes. Despite claims of unaltered climate ambitions, Reuters found little investor action holding JBS accountable on sustainability, and minimal pressure is present due to the Batista family's significant ownership stake. Non-public advice from proxy advisors underscores governance and transparency issues. Deforestation by cattle farmers remains a critical environmental challenge, with Brazilian cattle ranchers contributing significantly to Amazon deforestation. As Brazil prepares for global climate talks, the difficulty of mitigating agricultural environmental damage poses challenges to sustainable progress. 

Source - Reuters

4. J&T Express Reports Significant Growth in Parcel Volume

J&T Express, a leading logistics service provider, announced a 31% year-over-year increase in parcel volume for 2024, surpassing 24.65 billion parcels. This growth reflects the expanding e-commerce market in Asia and the company's efforts to enhance its delivery network across the region. 

Source - Logistics Asia

5. Surge in Corporate Electric Vehicles Expected to Boost Total Industry Volume (TIV) in 2025

Analysts predict a rise in Total Industry Volume (TIV) for the automotive sector in 2025, driven by an increase in corporate adoption of electric vehicles (EVs). This trend is anticipated to influence supply chains, with a greater emphasis on sourcing EV components and establishing supporting infrastructure. 

Source - Logistics Area

6. Singapore Invests in Supply Chain Infrastructure to Attract ASEAN Expansion

Singapore is deepening its investment in supply chain infrastructure to attract companies looking to expand into the ASEAN region. This strategic move aims to position Singapore as a central logistics hub, enhancing connectivity and efficiency for businesses operating in Southeast Asia. 

Source - CNA

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