[HN Gopher] Ford Will Keep Battery Factory Even If Republicans A...
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       Ford Will Keep Battery Factory Even If Republicans Ax Tax Break
        
       Author : doener
       Score  : 29 points
       Date   : 2025-06-23 18:37 UTC (4 hours ago)
        
 (HTM) web link (www.nytimes.com)
 (TXT) w3m dump (www.nytimes.com)
        
       | duxup wrote:
       | Cutting these tax breaks seems counter productive.
       | 
       | What is supposed to happen? The US and vehicle makers doubles
       | down on ICE cars while the rest of the world moves in the other
       | direction?
       | 
       | Sounds like a good way to trash any competitiveness US car makers
       | have....
        
         | toomuchtodo wrote:
         | These efforts are struggles to maintain the status quo for
         | entrenched interests against unsurmountable momentum as it
         | relates to the clean energy transition [1] and the
         | electrification of transportation. If you're looking for a
         | rational explanation, the human will disappoint. Simply
         | maintain pace and pressure in the appropriate direction. That
         | effort, combined with time, will hopefully equal success. In my
         | personal opinion, the "why" is important to understand from a
         | threat model perspective (ie how do you hack around humans and
         | entities attempting to slow or stop the transition), but not
         | important as a contributor to input to speed the transition
         | (because mental models and identity are rigid, and you're not
         | taking the selfish out of the human, broadly speaking).
         | 
         | [1] _Texas Legislature Beats Back Assault on Clean Energy_ -
         | https://news.ycombinator.com/item?id=44277367 - June 2025
         | 
         | (China installed 93GW of solar in May 2025, more than every
         | other country combined in 2024:
         | https://news.ycombinator.com/item?id=44359105)
        
         | Arnt wrote:
         | Not sure what's supposed to happen, but I can guess what will
         | happen instead: US states will have to pay upfront for new
         | factories to be built instead of promising tax breaks later,
         | because the companies that decide whether to build will trust
         | the promises less than until now.
        
         | dalyons wrote:
         | So short sighted and self destructive. The US is actively
         | sabotaging its future in innovation, manufacturing and energy.
         | For what? To make its car industry even less competitive? The
         | world is moving on with or without the US, as you say.
        
           | toomuchtodo wrote:
           | For profits today. There is no will or care to invest for the
           | future in the US.
        
             | foobarian wrote:
             | Wonder if it's just that, or whether there is a more
             | sinister mindset in place that would gladly see the country
             | slide in reverse towards a backward theocracy that would be
             | easier to control.
        
               | dalyons wrote:
               | Honestly I think it's neither, it's just stupidity,
               | incompetence and spite.
        
             | georgeecollins wrote:
             | Do you mean there is no will to make public investments in
             | the future? Because in the private space the US leads the
             | world in investing in the future. Think about how much we
             | invest in AI and self driving! I think a US private company
             | pioneered electric cars.
        
               | dylan604 wrote:
               | no, they mean there's no interest in tomorrow's profits
               | when you can have them today. besides "they" won't be
               | here tomorrow, so get it now. Don't be a simp and leave
               | things for someone else.
        
               | RankingMember wrote:
               | > I think a US private company pioneered electric cars.
               | 
               | Electric cars have been around since the late 1800s. If
               | you mean modern ones, in the US the California Air
               | Resources Board basically willed them back into existence
               | in the 90s, and a California automaker (Tesla pre-Musk)
               | made great strides in their public esteem by putting a
               | battery pack and electric motor into a Lotus chassis and
               | selling it as the "Roadster" (leaning on the prior art of
               | companies like Ford and especially GM's EV1).
        
               | toomuchtodo wrote:
               | I argue you are overvaluing AI and self driving and
               | undervaluing the capability to build high-tech products,
               | systems, and infrastructure.
        
               | germinalphrase wrote:
               | That US private company was significantly enabled by a
               | (apparently temporary) government policy of direct and
               | indirect financial support. That company does not exist
               | without the direct and intentional support by the US
               | government.
        
           | mindslight wrote:
           | It's not really "for" anything besides letting increasingly-
           | marginalized people feel like they have some agency. Of
           | course, choosing to politically express themselves with spite
           | instead of constructive solutions based on what they want is
           | exactly why they continue to be increasingly marginalized.
        
         | OneLeggedCat wrote:
         | Counter productive to whom? Certainly not oil companies, nor
         | the politicians that represent their interests?
        
           | bluGill wrote:
           | Not really productive for oil companies either. They can
           | fight, but they can't bring down oil prices enough to compete
           | and consumers are catching on.
        
             | ryoshoe wrote:
             | Unfortunately they can lobby to prevent cheaper
             | alternatives from being made available
        
         | ajross wrote:
         | > What is supposed to happen?
         | 
         | That's an argument from a rationality perspective. This is a
         | decision from ideology. It's not about making the best choice,
         | it's about making sure the right people lose.
        
         | dylan604 wrote:
         | That sounds exactly like the MAGA plan. bigOil is too ingrained
         | into the party to allow the demand for their product to reduce
         | by eliminating ICE powered anything. To expect MAGA to dump
         | bigOil would be more productive to bang your head on the
         | keyboard and expect to write the code for anything.
        
           | geoffeg wrote:
           | > would be more productive to bang your head on the keyboard
           | and expect to write the code for anything.
           | 
           | There's gotta be a joke about AI vibe coding there...
        
             | dylan604 wrote:
             | I thought AI vibe coding was the joke
        
         | megaman821 wrote:
         | I am huge believer in the eventual dominance of battery-
         | electric vehicles, but these tax incentives are very
         | inefficient. The money would be better spent on R&D into
         | batteries and motors. The time would be better spent making it
         | easier to build.
        
           | 01HNNWZ0MV43FF wrote:
           | It would be better spent on UBI and walkable cities but you
           | know, sometimes the only progress we get is what voters will
           | support
        
         | SV_BubbleTime wrote:
         | > makers doubles down on ICE cars while the rest of the world
         | moves in the other direction?
         | 
         | Automotive EE here...
         | 
         | As respectfully as I can; you have no idea what you are talking
         | about and neither do the people cheering you on.
         | 
         | These vehicles are not ready for the markets they are (were)
         | being pushed to.
         | 
         | Current electrics do not make sense in specifically hot or cold
         | climates. They do not make sense for hard use. They do not make
         | sense for long trips. They do not make sense for repair.
         | 
         | They make sense in California for people that will keep them
         | only a couple of years until the next status symbol is
         | available.
         | 
         | I own an electric, I work on some. I like the pluses, and am
         | keenly aware of the negatives. I see people storing them
         | outside in snow and it makes me sad for their owners that think
         | they bought an alternative to an ICE vehicle.
         | 
         | EVs today are not alternatives to ICE vehicles, the are
         | compliments.
         | 
         | Fun fact... right now with the systems today, most EVs that
         | will need a new battery, will be totaled by that cost. I have
         | the tools, I've been inside the 600V packs that can easily kill
         | you. Mechanics aren't trained, prepared for, or will accept the
         | risk. These are not 20 year vehicles. They're basically 8 year
         | vehicles currently.
         | 
         | Disagree with your feelings all you like, I live it.
        
           | LargeWu wrote:
           | The country with the highest adoption of EV's in the world is
           | Norway. If they can deal with the cold, so can the US.
           | 
           | I have an EV in Minnesota and it's great. Battery life does
           | take a pretty big hit in winter but that's fine based on how
           | I use it. The real problem is lack of charging
           | infrastructure, not the range.
        
           | 01HNNWZ0MV43FF wrote:
           | Hybrids once again totally undervalued. I don't know why the
           | industry and the consumers are going so hard on pure EVs
        
             | blacksmith_tb wrote:
             | Hmm, I drive a PHEV, but full EVs are extremely simple
             | vehicles, as long as you work out charging, they'll need
             | tires eventually, and brake pads (slowly, since they mostly
             | have regen), and that's about it. No fluids (and leaks), no
             | belts, no going to gas stations - pretty compelling for the
             | motorist (and scary for dealerships and repair shops).
        
           | kingstnap wrote:
           | EVs are better suited to most commute patterns. The ICE would
           | be the compliment, and the EV, the daily driver.
           | 
           | With better charging infrastructure, that most turns into
           | virtually all.
        
           | bryanlarsen wrote:
           | > They're basically 8 year vehicles currently.
           | 
           | The major EV makers provide an 8 year warranty on their
           | batteries. If EV batteries only lasted 8 years on average, it
           | means they'd be replacing half of them under warranty, which
           | would cost them a fortune and show up on their balance sheet.
           | Tesla & Hyundai aren't bankrupt; batteries last significantly
           | longer than 8 years.
        
           | rstuart4133 wrote:
           | Assuming the announcements from CATL and BYD pan out and
           | battery prices continue on their current trajectory:
           | 
           | By 2030 EV's will cost less than an ICE powered vehicle up
           | front, travel further on a single charge than an ICE with a
           | full tank, cost less to maintain, take about the same amount
           | of time to "refuel" (if you need to do that at all because
           | you can recharge for free at a solar powered home) ... and
           | won't be built in the USA if Ford doesn't do something like
           | this. It probably won't be in the USA even with Ford's
           | efforts.
           | 
           | If you are an automotive EE and live and work in the USA,
           | you've got very little time left to get your finger out. Even
           | if you do and are insanely clever, you've got 3.5 more years
           | of Trump and the GOP playing to the denial crowd, putting up
           | barriers like this to any attempt to change from the status
           | quo. You're also up against a highly industrialised country
           | with four times the number of EE's the USA, some of which are
           | also insanely clever, all being forced to innovate in a
           | highly competitive market fueled by government subsidies.
           | 
           | Personally, if I were you, I'd be assuming the car
           | manufacturing industry in the USA is fucked, and looking for
           | another industry to transition my EE skills into.
        
           | garyfirestorm wrote:
           | isn't it well known that the avg commute is only 35 miles for
           | a consumer? and how many road trips does an avg consumer take
           | in a month? in a year? they can always rent an ICE for
           | specific long journeys. not being able to take your car on a
           | road trip speaks more about infrastructure issues and not the
           | car itself.
        
         | kevin_thibedeau wrote:
         | Hybrids will be viable for a long time for regions of the world
         | that don't have ready access to a charging station and for
         | users that need to make long trips without delays from 30+
         | minute charge times.
        
           | bluGill wrote:
           | Hybrids only are viable so long as they exist in large
           | numbers thus ensuring that there is enough money to be made
           | in having infrastructure. Since getting a PHEV I've massively
           | cut down my gas purchases. Car buyers who care about money
           | are catching on to just how much cheaper it is to fuel and
           | EV, and the PHEV looks like the best of both worlds (lets not
           | get into that debate). I'm predicting that in about 5 years
           | EVs will be common enough that gas stations stop going up as
           | fast - not that they will go out of business, but they
           | companies building them will be more careful about there they
           | put them in because demand just isn't there in many
           | locations. Starting in 10 years there will be an increase in
           | the number of going out of business because the demand just
           | isn't there to support several of them on less busy corners.
           | (both of these will be hard to see at first - there are other
           | business cycles in play that make the trends hard to be sure
           | of so it will be another decade before you can be sure) In 20
           | years gas will be hard to find - not impossible (collectors
           | will still buy it, and long distance travel will be the last
           | place is goes away so freeways will keep it much longer)
        
       | LorenDB wrote:
       | https://archive.ph/rHrr8
        
       | GenerWork wrote:
       | Good, that's the way it should be. If EVs are the future of
       | personal vehicles (and I think they will be), then there's all
       | the reasons to trade short term pain for long term gain.
        
         | contagiousflow wrote:
         | What is the short term pain exactly?
        
           | enticeing wrote:
           | Presumably short term pain for Ford from missing out on
           | federal incentives they would've gotten otherwise
        
         | bastawhiz wrote:
         | That's assuming the market is homogeneous and resources are
         | fungible. If interest in EVs in the US is low, nobody builds
         | battery factories in the US. But we know China and others are.
         | If it takes EVs another two decades to really catch on in the
         | US, all the parts and materials will be foreign. Costs will be
         | higher for domestic consumers, even if interest does pick up
         | eventually. Catching up at that point may not even be possible.
         | 
         | Consider that if Asia and Europe manage to replace a majority
         | of ICE vehicles in a decade or two with EVs, oil production
         | will necessarily decrease in the end. We'll have a glut of
         | cheap oil for a while as other countries buy less, which will
         | artificially prop up ICE vehicles until production slows and
         | costs go up. When gasoline inevitably becomes prohibitively
         | expensive (assuming EVs are indeed the future), the US could be
         | left with pricey fuel and no real ability to dig itself out of
         | the hole it's created. It's not just the battery factories,
         | it's the knowledge, talent, supply chains, trade deals,
         | infrastructure, sales pipelines, patents, etc.
         | 
         | The "long term gain" turns out to just be us killing off our
         | entire auto industry slowly. The "free market" in this case is
         | actually "the free market here in our bubble". Globalization
         | isn't going to sell cheap Chinese EVs in Montana, and people
         | buying an $8000 BYD aren't going to look at a Chevy Malibu.
         | If/when that market eventually collapses because we got left
         | behind by the rest of the world, we'll be regretful that we
         | didn't put subsidies into batteries and the grid. After all, we
         | _did_ subsidize oil and the auto industry for decades and
         | decades for this reason. How many politicians stumped on the
         | promise of keeping Detroit going?
        
       | throwaway48476 wrote:
       | This also hurts innovation into more efficient gas engines for
       | hybrids. Without needing the engine to power the wheels new
       | engine types become viable.
        
       | laidoffamazon wrote:
       | It's unclear if they will or won't - but given the current
       | presidents tendency to attack any entity that crosses him with
       | "lawfare" it doesn't seem safe to accurately project their
       | intentions
        
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