👋 Watts up? As you may have seen by now, reports are surfacing about a potential merger between Japanese automotive giants, Nissan and Honda. If we see the agreement go through, the entity could become the 3rd largest automaker in the world and be worth around $54 billion. Over in Germany, Mercedes has just received an SAE-Level 3 certification for their DRIVE PILOT system, allowing automated driving at speeds of up to 95 km/h. Learn more on these stories, and others, in todays issue.

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QotD: How many EVs did BMW sell in 2023?

MARKETS

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ELECTRIC VEHICLES

Honda and Nissan in talks of Possible Merger

🚗 Honda and Nissan are reportedly in discussions for a potential merger that could create the world’s third-largest automaker, producing 7.4 million vehicles annually. The $54 billion entity would aim to tackle challenges from competitors like Tesla, and Chinese EV makers like BYD.

• The merger could reduce costs and streamline operations, addressing competition in the global EV market.

• Nissan’s financial difficulties include an 85% profit drop in Q2 and slumping sales in China and the U.S.

• Market reactions were mixed: Nissan shares rose 24%, whilst Honda’s fell 3%.

• Potential structures include a holding company or full merger, with Renault reportedly open to discussions.

• Challenges include cultural differences, regulatory hurdles, and long-term integration planning.

Although unconfirmed, the merger could strengthen Japan’s automotive industry amid global competition.

INFRASTRUCTURE

BlueOval SK Acquires $9.63 Billion Loan from the DOE

🔋 The U.S. Department of Energy (DOE) has finalised a $9.63 billion loan to BlueOval SK LLC to construct three major battery manufacturing plants in Tennessee and Kentucky. A collaboration between Ford and SK On, these facilities will annually produce over 120 gigawatt hours of batteries for Ford and Lincoln electric vehicles.

• The project will generate over 7,500 operational jobs and has already created 5,000 construction roles.

• It represents the largest loan issued under the DOE’s Advanced Technology Vehicles Manufacturing (ATVM) Program.

• BlueOval SK has partnered with local colleges to establish training centres, ensuring residents benefit from quality job opportunities.

• The ATVM Program supports the EV supply chain, from manufacturing to recycling and critical mineral processing.

This investment strengthens the nation’s overall EV infrastructure, whilst also promoting economic and community growth.

CLEAN ENERGY

Alternus Clean Energy Finalises Acquisition of LiiON

☀️ Alternus Clean Energy has acquired U.S.-based energy storage leader, LiiON, for $5 million, marking a strategic step in diversifying its energy solutions and expanding market reach. The deal, financed through debt and equity, includes LiiON’s customer contracts, service agreements, and intellectual property, immediately adding $3 million to Alternus’ shareholder equity.

• The acquisition enhances Alternus’ presence in the Battery Energy Storage Systems (BESS) sector with advanced technology and recurring revenue.

• LiiON’s high-profile clients, including Amazon, Walmart, and NASA, provide access to critical infrastructure and industrial markets.

• A new BESS division will focus on microgrid solutions, integrating LiiON’s storage with Alternus’ renewable energy collaborations, such as Hover Energy’s wind and solar systems.

Alternus CEO, Vincent Browne, called the acquisition transformative, positioning Alternus to meet growing demand for integrated renewable energy solutions.

TECHNOLOGIES

Mercedes-Benz Recieves Approval for Level 3 Autonomous Driving

📱 Mercedes-Benz has unveiled an updated version of its DRIVE PILOT system, achieving an SAE-Level 3 conditional automation certification in Germany. Available for purchase in early 2025 at €5,950, it will be an option for the S-Class and EQS luxury saloons. Existing vehicles can receive the update via over-the-air or during routine visits at no extra cost.

• The system allows automated driving at speeds up to 95 km/h on German motorways, letting drivers focus on tasks like reading or streaming.

• It features 35+ sensors, including LiDAR and cameras, ensuring comprehensive environmental awareness.

• In emergencies, DRIVE PILOT safely stops the vehicle and activates hazard lights if the driver does not resume control.

With plans to extend automation to 130 km/h by 2030, Mercedes-Benz continues to pioneer advancements in automated driving, whilst prioritising safety and convenience.

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Answer: 330,596

*As of 11:00am EST, on the same business day. Includes top movers.