All posts by Margrethe Harboe

US gains ground in electric vehicle readiness, but China and Norway remain out in front

Automobile / Transport, Business News
  • China retains its place at the top of the EV Country Readiness Index, remaining dominant in production and infrastructure
  • The US rises from seventh to third following increases in production, regulation to stimulate demand and investment in battery manufacturing
  • The UK remains fifth, behind Sweden in fourth

China has retained the pole position when it comes to progress toward an electric vehicle (EV) future, according to the latest EY Electric Vehicle Country Readiness Index. The Index looks at the preparedness of the top 20 vehicle markets for the arrival of EVs based on supply, demand and regulation. Norway remains in second place for the second year running, while the US, Sweden and the UK round out the top five.

Battery manufacturing and supply chain control remain key drivers for China leading the way, with China accounting for 74% of investment in battery manufacturing in 2022. Backed by soaring consumer demand – 58% of Chinese consumer respondents expect to buy an EV as their next vehicle, compared to the average of 41% across other markets – and investment in its charging infrastructure, China continues to lead the way on EVs, representing the largest EV market globally in absolute volume terms.

Norway, an early adopter of EVs, remains steady at number two in the ranking as the country’s EV adoption rate rises to 81%, the highest in the world. This owes to continued generous EV incentives and relatively high GDP per capita, meaning EVs are more affordable. In Norway, 83% of vehicles launched between 2022 and 2027 will be EVs, the highest in the world. Meanwhile, the US, Germany and Sweden retain their strengths in manufacturing, investment and consumer uptake.

Randy Miller, EY Global Advanced Manufacturing & Mobility Leader, says: “China and Norway have demonstrated that a potent mix of regulation to stimulate demand, combined with localized battery production and implementation of a robust infrastructure plan are critical factors in helping countries successfully transition to EVs. Now that demand is at sufficient levels in most of the countries in this study, it is up to OEMs and government to accelerate their efforts to expand EV production, investment and incentives.”

EVs making inroads in the US market

The US has risen sharply in the ranking, from seventh to third. Business has been a key driver of this rise with new innovations in car models and investment in battery manufacturing providing a greater supply and variety of EVs to the US market. This, combined with the greater affordability resulting from streamlined production and greater supply, has caused consumer demand to rise steadily. These significant steps forward by businesses have been backed up by government regulation. For example, the Inflation Reduction Act has introduced a federal tax credit of up to $7,500 for EVs assembled locally and purchased from December 2022 to January 2033. The US now accounts for 11% of EV production globally, behind only China which accounts for 55%.

Miller says: “The US is rapidly rising through the rankings due to businesses innovation and investment in EVs and the manufacturing capability to support them. This has in turn increased consumer choice and made EVs more affordable and more attractive options for consumers. This business-first approach has also been backed by friendly government regulation, providing a holistic approach which is preparing the US for the electric future.”

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Norway’s Offshore: Moving on

Business News, Shipping & Offshore

Norway’s decision in the early phase of the pandemic, in March 2020, to protect its petroleum industry by lowering taxes, maintaining production and investment activity in an economic setback, appears to pay off well. The strategy to renounce on short-term revenue, in order to safeguard industrial capacity and competence, showed positive results already in 2022, as output increased over the preceding years. The trend is likely to persist for several years.  

Norway shows commitment to the offshore oil and natural gas industry. In hindsight, lowering petroleum taxation was a wise move by two succeeding governments and mainstream politicians. Petroleum extraction is expanding. Revenue from oil and gas in 2023 is estimated at about US$100 billion, close to three times the average for the preceding decade. The petroleum activities provide jobs and industrial challenges, especially in coastal communities. The oil and gas revenues bolster Norway’s economy, although only a tiny fraction is spent directly over the budget. The rest, savings from oil and gas revenues, have made the world’s largest sovereign wealth fund.  

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A roadmap for the health industry

Business News, Health

How will Norway commercialise research and turn health into a green export success?

The roadmap for the health industry was released today by Ingvild Kjerkol, Minister of Health and Care Services, and Jan Christian Vestre, Minister of Industry, Trade and Fisheries. The roadmap includes 12 focus areas and 41 actions, which the two ministries have worked together with industry to identify.

Commercialising research

One of the focus areas is testing and piloting of novel health solutions.

“We will become better at commercialising research results and create industry. We want the state to contribute considerably more so companies have access to testing facilities, so they can develop their solutions. We will develop the catapult scheme for the health industry,” said Vestre.

Today there is no health catapult in Norway. SIVA, the Research Council of Norway and Innovation Norway will now investigate how the health industry can better utilise the catapult scheme.

“The health clusters are ready to contribute! Based on work we did in 2019 and 2020, Oslo Cancer Cluster, Norwegian Smart Care Cluster and Norway Health Tech have set up Health Catalyst, a national arena for developing, testing and piloting novel solutions in health. Among other things, we have signed an agreement to collaborate with Nortrials,” commented Ketil Widerberg, general manager of Oslo Cancer Cluster.

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Nordic AmChams & Politico: Centripetal and Centrifugal Forces

AmCham News, Government

Nordic AmChams & Politico: Centripetal and Centrifugal Forces

Brussels-based Politico Europe Editor-in-Chief Jamil Anderlini recently joined over 130 AmCham members from across the Nordics for an enlightening hour on the centripetal and centrifugal forces acting upon Europe, China’s economic outlook, transatlantic green transition collaboration, and journalism’s role in explaining democracy.

In his position, Anderlini oversees Politico’s journalistic coverage, shapes editorial strategy, and manages the day-to-day operations of the organization’s rapidly expanding European newsroom. His previous roles include Asia Editor, Assistant Editor, and member of the Editorial Board at the Financial Times. He has also served as the Beijing Bureau Chief for the Financial Times, Beijing Correspondent for the South China Morning Post, and Chief Editor of the China Economic Review.

Fresh Expert Perspectives

The meeting was the latest in AmCham’s joint-Nordics series – offering fresh, expert business perspectives from Finland, Sweden, Denmark, Norway, the US and beyond. Previous presenters include:

Peter Harrell, Senior Director for International Economics and Competitiveness on The White House National Security Council

  • Bridget Fawcett, Global Chief Strategy Officer for Banking, Capital Markets and Advisory at Citi
  • Hannah Hawkins, Principal in the Washington National Tax, Credits & Incentives Group at KPMG
  • Andrew Schwedel andHernan Saenz, Partners at Bain & Company
  • Steven L. Scully, former C-SPAN Political Editor

 We sincerely thank our friends at AmCham Sweden for arranging and virtually hosting us!

Norway’s conservative opposition wins local elections with nearly 26% of the votes

Business News, Government

COPENHAGEN, Denmark (AP) — Norway’s center-right opposition party has won local elections in the Scandinavian country, putting the conservatives of former Prime Minister Erna Solberg ahead of the governing social democratic Labor Party locally for the first time since 1924.

According to preliminary official figures released Tuesday with all votes counted, the conservative Hoeyre party received 25.9% of the votes in Monday’s elections, up nearly 6 percentage points from the last balloting in 2019 for local councils in Norway’s 356 municipalities and 11 counties. The Labor Party, headed by Prime Minister Jonas Gahr Støre, which ousted Solberg in 2021 national elections, came in second in the local vote with 21.7% of the ballots, down 3.1 percentage points from 2019.

Labor, which for decades was Norway’s largest party in local elections, had its worst results in nearly a century in Monday’s vote, making Hoeyre the largest party locally since 1924. It even surpassed Labor in Oslo, the capital.

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B-2 Spirit Conducts Historic Hot Pit Refueling in Norway

Business News, Defense / Security

Orland, Norway —
A B-2 Spirit bomber from Whiteman Air Force Base, Mo., conducted a historic hot pit refueling at Orland Air Base, Norway on Aug. 29, 2023. The occasion marked the first time that the B-2 has landed in Norway, signaling the shared commitment between the U.S. and Norway to deter threats and strengthen the NATO Alliance. Three B-2 Spirit bombers are currently forward deployed from Whiteman Air Force Base, Mo., to Keflavik Air Base, Iceland, in support of Bomber Task Force Europe 23-4.

Hot pit refueling within NATO countries allows for the B-2 to expand its fuel range and minimize its time on the ground. By exercising the ability to conduct hot pit refueling in strategic locations, the U.S. and our Allies are able to increase combat airpower throughout the European theater.

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AmCham Defense Forum: Expert Perspectives & Nordic Mindsets

AmCham News

AmCham Defense Forum: Expert Perspectives & Nordic Mindsets

First House warmly hosted AmCham’s June Defense Forum, providing representatives from 24 organizations a unique opportunity to share insights, expand collaboration, and assess future transatlantic needs. The agenda focused on supporting US defense industry partners operating in Norway, with discussions centered on Norway’s future acquisitions and Nordic defense cooperation.


Meeting presenters Sigbjørn Aanes, Partner at First House, Erling Heine Alvestad, Specialist Director at the Department of Security Policy, Norwegian Ministry of Defense, and LtCol Christopher D. Shore, Chief of Defense Cooperation Norway-Iceland, provided expert perspectives.

The discussion commenced by addressing the Norwegian political landscape, defense spending, recent political risks, the significant standing of labor, and impacts on defense procurements. Russia’s invasion of Ukraine and ongoing geopolitical ramifications were also in focus.

 

Also spotlighted were the strategic depth and benefits that Sweden and Finland’s NATO membership offer Norway amidst a shifting security landscape. We thoroughly explored the future of Nordic defense collaboration, including identifying obstacles and broader implications. Additionally, we investigated defense links between the US and Norway, emphasizing considerations for industry collaboration.

The meeting concluded by recognizing the importance of adhering to good business practices in Norway, encompassing proper processes, adhering to timelines, and understanding cultural differences in the business environment – or “mindsets.”

About the AmCham Defense Forum

AmCham’s Defense Forum supports US defense industry partners in Norway. Patron-level representatives work jointly to bridge the gap between public and private sector stakeholders, fostering dialogue, collaboration, and innovation. AmCham’s far-reaching membership network strengthens defense capabilities and secures long term transatlantic bonds.

Jointly founded together with the US Commercial Service, the forum serves as a unique platform for regularly sharing insights, developments, and trends within the defense sector and beyond.

 

 

Norway Retail Sales Surprise With Biggest Jump in 6 Months

Business News, Financial / Investment

Norwegian retail sales rose more than expected in May, jumping the most in six months, led by hardware stores and petrol stations, in another sign that consumers show resilience to rising costs.

Seasonally adjusted retail sales, excluding motor vehicles, rose 1.2% from April, compared with a median forecast of 0.2% gain in a Bloomberg survey of analysts. The statistics office in Oslo also revised the April decline of 1.2% to a dip of 0.1%, it said on Wednesday.

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Exxon CEO Tells Europe to Follow US Approach to Climate Action

Business News, Energy

European leaders looking to tackle climate change should look to US policy and “let the market work” to avoid driving companies away with prescriptive regulations, Exxon Mobil Corp. Chief Executive Officer Darren Woods said.

“I think it’s a huge mistake to be picking winners and losers and focusing on specific technologies,” Woods told the CEO Norway’s Wealth Fund, Nicolai Tangen, on his podcast. “Instead we should be looking more broadly at letting the markets figure out which solutions provide the most emissions reductions for the lowest cost.”

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