Blog Category: General

On September 9, 2024, the United Kingdom, the United States, and Australia signed a landmark Memorandum of Understanding (MoU) aimed at bolstering supply chain resilience. This agreement marks a significant step towards enhancing strategic cooperation and addressing risks to critical supply chains among these three nations.

On September 9, 2024, the United Kingdom, the United States, and Australia signed a landmark Memorandum of Understanding (MoU) aimed at bolstering supply chain resilience. This agreement marks a significant step towards enhancing strategic cooperation and addressing risks to critical supply chains among these three nations.

In a significant shift, Western automakers have suspended or cancelled battery joint venture projects worth at least $13 billion. This move comes as the industry grapples with weaker electric vehicle (EV) sales, increased competition from Chinese manufacturers, and the high costs associated with building gigafactories. The Changing Landscape of EV Investments The slowdown in EV demand has prompted automakers to reassess their ambitious plans. Companies like Stellantis and Mercedes-Benz, through their joint venture Automotive Cells Company, have halted projects in Italy and Germany, each valued at €2 billion. Similarly, Ford has scrapped two joint ventures in Turkey with Korean battery makers SK On and LG Energy Solution, which had a combined capital expenditure of approximately $6 billion.

In a significant development, foreign direct investment (FDI) in the US manufacturing sector has plummeted to its lowest level in a decade. This decline raises concerns about the effectiveness of recent US industrial policies aimed at boosting foreign investment. Key Statistics According to the latest data from the US Bureau of Economic Analysis (BEA), new FDI in US manufacturing fell to $42.9 billion in 2023, marking a one-third drop from the previous year. This is the lowest level recorded over the past ten years. Additionally, manufacturing's share of new FDI expenditure also hit a decade-low of 28.8%.

In recent years, the United States has witnessed a remarkable surge in investments in battery energy storage systems (BESS). This trend is driven by the growing demand for renewable energy sources, the need for grid stability, and advancements in battery technology. As the country transitions towards a more sustainable energy future, battery storage is playing a pivotal role in ensuring reliability and efficiency. The Driving Forces Behind the Surge 1.        Renewable Energy Integration As the adoption of renewable energy sources like solar and wind power increases, the need for efficient energy storage solutions becomes critical. Battery storage systems help in balancing supply and demand, storing excess energy generated during peak production times and releasing it when needed.

In a significant move towards bolstering renewable energy initiatives in Africa, AMEA Power has signed a Power Purchase Agreement (PPA) and Implementation Agreement (IA) with Ethiopian Electric Power for the development of the Aysha-1 Wind Project. This 300MW wind farm, located in Ethiopia's Somali region, is set to become the largest wind energy project in the Horn of Africa.

Costa Rica is experiencing a surge of optimism in its microchip industry, buoyed by recent developments and strategic investments. This Central American nation is positioning itself as a key player in the global semiconductor supply chain, thanks to significant support from the United States.

Copenhagen Infrastructure Partners (CIP), a global leader in renewable energy investments, has recently secured two offshore wind feasibility licenses in Australia, marking a significant milestone in the country's renewable energy landscape. These projects, covering nearly 1,300 km² of seabed, have the potential to deliver up to 4.4 GW of capacity, enough to power approximately 2.4 million homes. To spearhead these initiatives, CIP has launched a new platform company, Southerly Ten, dedicated to the development and delivery of offshore wind projects in Australia. This move underscores CIP's commitment to establishing a robust offshore wind industry in the region, contributing to Australia's green energy transition while creating economic and job opportunities.

Lightsource BP, a leading solar energy developer, has announced the commencement of commercial operations for its first solar project in Poland. The 40MW solar farm, located in the village of Kotuń, marks a significant milestone in the company's efforts to expand its renewable energy footprint in Europe. The Kotuń solar project is part of a long-term power purchase agreement (PPA) with Microsoft, signed in September 2023. This agreement supports Microsoft's ambitious goal of achieving 100% renewable energy supply by 2025. The solar farm, spanning 76,000 square meters, is expected to generate enough electricity to power approximately 30,000 homes, significantly contributing to the decarbonization of Poland's energy grid.

The United Kingdom has seen a significant increase in its Foreign Direct Investment (FDI) projects, even as Europe's overall FDI project total has declined. UK's FDI Growth In 2023, the UK was home to 985 FDI projects, marking a 6% increase from the previous year. This growth has been driven by a resurgence in digital investment, securing over a quarter (27%) of all European tech projects last year. The UK's share of Europe’s inward investment market grew to 17.3%, up from 15.6% in 2022.