In this issue: Trump administration shores up domestic critical minerals supply chains, Tesla signs lithium agreement with Piedmont, Volkswagen increases Chinese e-mobility investment, Walmart triples electric truck order, and more.
President Trump mandates expansion of domestic critical minerals supply chains
US President Donald Trump has issued an executive order to “protect and expand” the domestic supply chain for critical energy-related minerals, Power Materials reports.
In a related statement, President Trump obliquely referenced Chinese control of the rare earth element market as a spur for the administration’s more aggressive approach.
“Our country needs critical minerals to make airplanes, computers, cell phones, electricity generation and transmission systems, and advanced electronics,” President Trump said. “Though these minerals are indispensable to our country, we presently lack the capacity to produce them in processed form in the quantities we need. American producers depend on foreign countries to supply and process them. Whereas the United States recognizes the continued importance of cooperation on supply chain issues with international partners and allies, in many cases, the aggressive economic practices of certain non-market foreign producers of critical minerals have destroyed vital mining and manufacturing jobs in the United States. We must reduce our vulnerability to adverse foreign government action, natural disaster, or other supply disruptions. Our national security, foreign policy, and economy require a consistent supply of each of these minerals.”
The order was praised by uranium, vanadium, and prospective rare earth element producer Energy Fuels Inc in a separate statement.
“Earlier this year, the company announced its plan to enter into the rare earths processing business, where the company believes its White Mesa Mill can play a critical role in bringing the rare earth element supply chain back to the US,” Energy Fuels wrote.
Stanford team tests seawater lithium extraction method
A Stanford University team is exploring the possibility of extracting lithium from seawater, according to a paper published in Joule.
The team used a pulsed electrochemical method to separate the lithium from the associated sodium in seawater.
“It is highly attractive to develop efficient methods to directly extract Li from seawater to secure the supply of Li,” the team wrote in its summary. “However, high concentration of Na in the seawater poses a great challenge in Li extraction. Here, we developed pulsed-rest and pulse-rest-reverse pulse-rest electrochemical intercalation methods with TiO 2-coated FePO 4 electrodes for Li extraction.”
The extraction method also has the potential to produce longer-lasting electrodes, Power Materials understands.
“The method can lower the intercalation overpotential and successfully boost the Li selectivity,” the team wrote. “Moreover, the pulse-rest-reverse pulse-rest method can also promote electrode crystal structure stability during the co-intercalation of Li and Na and prolong the lifetime of the electrode.”
Tesla signs lithium supply agreement with Piedmont
Australia’s Piedmont Lithium has inked a lithium supply agreement with Tesla, Power Materials reports.
The five-year deal covers 160,000 tonnes/year with the option to renew following the initial five-year term. The contracted amount is equal to about one-third of the company’s output and represents 10-20% of its revenue, according to a company release.
Following announcement of the deal, Piedmont’s stock price increased by 395% as of September 29.
Delivery is slated to begin between July 2022 and July 2023.
“We are excited to be working with Tesla, which represents the start of the first US domestic lithium supply chain and a disruption to the current value chain,” said Piedmont CEO Keith Phillips. “We will now accelerate our mine/concentrator development to support Tesla’s plans, work to further expand our mineral resources, and potentially increase our planned annual spodumene concentrate production capacity. We will simultaneously be advancing our plans to produce lithium hydroxide in North Carolina, using a combination of internally produced spodumene concentrate as well as material sourced from other producers around the world.”
Nickel prices recede from annual high in September
Nickel prices cooled somewhat in early October from their month-ago levels, Power Materials learns from the London Metal Exchange.
As of October 2, the LME put cash nickel prices at $14,271/tonne. A month prior, nickel was trading at about $15,658/t - a high for the year.
Prices remain up slightly from the beginning of the year, when the LME pegged nickel at $14,070t. The trough thus far this year was reached in late March at around $11,055/t.
In October 2019, nickel prices fluctuated from roughly $17,000-18,000/t.
Automaker places pre-order for HPQ’s nano silicon powder
Canadian silicon producer HPQ Silicon Resources has secured a pre-order from a major automobile manufacturer, the company says in a statement.
The order for spherical nano silicon powder will be fulfilled by the company’s subsidiary HPQ Nano Silicon Powders Inc.
No financial terms - or the identity of the auto manufacturer - were released. The order represents the company’s first order for its nano silicon powder line.
“The manufacturer is well aware that HPQ Nano will only fulfill this first order in December 2020 and, as such, this pre-order is simply a way for them to guarantee to be first in queue for this material,” the company said. “The automobile manufacture’s name shall remain anonymous for competitive and confidential reasons.”
HPQ CEO Bernard Tourillon said the order is a validation of the company’s potential, as well as silicon’s potential in the larger battery market.
“Although we do not expect this initial order to be a big order it does validate our strategic decision to enter this space. To have piqued the interest of a major industrial player so early on, and to the point where they will pay for product before production just to secure a position, speaks volumes about where we are and what we are doing,” he said. “We are extremely proud as a company to be at this table at this unique time. However, I must caution investors that although this pre-order signals interest in our unique products, we are still at the very preliminary stages and there is no guarantee that anything of commercial value will materialize from these efforts. It does however demonstrate the potential for new and exciting advances by HPQ Nano in the silicon battery space.”
Tesla eyes stake in LG Energy Solution: The Korea Times
Electric vehicle producer Tesla is seeking a stake of up to 10% in battery supplier LG Energy Solution, according to a report from The Korea Times.
LG Energy Solution is a spin-off of LG Chem, Power Materials notes.
The Korea Times cites several unidentified market sources for the reported Tesla interest.
"It's quite early to tell if Tesla has an actual plan to acquire a stake in LG Energy Solution. But given Tesla's growing attempts at cost cuts and moves in producing round batteries, it does make sense that Tesla would explore an opportunity to buy a stake in LG Energy Solution," says one of the market sources to The Korea Times.
Volkswagen ramps up e-mobility investment in China
German auto producer Volkswagen will invest a further 15 billion euro to support its e-mobility business in China, Power Materials learns from a post by Volkswagen Group China CEO Stephan Wöllenstein.
The 15 billion euro is additive to the 33 billion euro previously announced as part of Volkswagen’s global e-mobility push.
Posting from China’s World New Energy Vehicle Conference, Wöllenstein said that 15 of Volkswagen’s models will be produced locally by 2025. China is aiming for carbon neutrality by 2060.
“By 2025 in China, 15 of the Group’s models will be produced locally, while 35% of the product portfolio will be e-models. Meanwhile we are gearing up to meet future demand for e-mobility by scaling our participation and partnerships in battery capacity and charging infrastructure,” Wöllenstein said. “For almost 40 years, we’ve been present in the development of China’s auto industry, and will remain committed and connected to it. Together with our existing and future Chinese partners, we will shape the mobility of tomorrow - for generations to come. On October 22, we’ll show our Chinese customers what our new electric mobility looks - the first two ID.4 models. Stay tuned.”
Walmart Canada triples Tesla truck order, aims for 20% electrification by 2022
Walmart’s Canadian wing has tripled its reservations of Tesla 18-wheelers, Power Materials learns from a company release.
Walmart Canada has reserved 130 Tesla Semis, which it says is one of the largest reservations of electrified trucks in Canada. The company further notes that the reservation aligns with its previously announced $3.5 billion investment to meet Walmart’s global target of zero emissions by 2040.
By 2022, Walmart Canada expects to convert about 20% of its fleet to electric power. Ultimately, the company hopes to achieve 100% alternative power by 2028.
"Tripling our reservation of Tesla Semi trucks is part of our ongoing effort to innovate the business and prioritize sustainability," said logistics senior vice president John Bayliss. "By converting 20% of our fleet to electric vehicles by the end of 2022 and committing to alternative power for all fleet vehicles by 2028, we are putting safety, innovation and sustainability at the forefront of our logistics network."
President Trump, Biden debate relative merits of federal electric fleet
Both US President Donald Trump and his challenger Joe Biden appeared to support the increased electrification of the US fleet - to greater or lesser degrees - in their first debate held 29 September, Power Materials reports.
In response to a question concerning his easing of federal emission standards put in place under President Barack Obama, President Trump said the relaxed standards would make newer cars more affordable - with electric cars as an added, market-based bonus.
“The car has gotten so expensive because they have computers all over the place for an extra little bit of gasoline,” he says. “And I’m okay with electric cars, too. I think I’m all for electric cars. I’ve given big incentives for electric cars, but what they’ve done in California is just crazy.”
President Trump referred to a recently issued executive order that would ban new production of internal combustion engine vehicles by 2035.
Biden followed up with a statement on the viability of his energy plan, which he characterizes as different from the so-called “Green New Deal.”
In addition to supporting renewable energy, “...we’re going to make sure that we are able to take the federal fleet and turn it into a fleet that’s run on electric vehicles,” he said. “Making sure that we can do that, we’re going to put 500,000 charging stations in all of the highways that we’re going to be building in the future.”
European scientists say hydrogen climate benefits dependent on ending fossil subsidies
A group of European scientists warned on Tuesday that there will be no climate benefit from hydrogen unless the EU stops subsidies for fossil fuels, Power Materials understands.
According to the European Academies Science Advisory Council (EASAC), also known as the “voice” of European science, direct and indirect support for fossil fuels “send the wrong signals.”
Their argument is that even when combined with carbon capture and storage (CCS), fossil fuel-based hydrogen “still has a significant carbon footprint.”
“The EU must stop all subsidies to fossil fuels. The fast growing demand for hydrogen must be met by a massive increase of renewable electricity, together with certified imports from third countries,” said EASAC’s energy program director, William Gillett.
The scientists believe the EU should rather strengthen carbon pricing and revise the emissions trading directive to build investor confidence in future markets for renewables and green hydrogen. Europe should lead in the manufacture of low cost electrolysers to produce hydrogen from carbon-free sources, they said.
Gillett noted that electrification is a “great way to decarbonize” the economy, but sectors such as transportation and steelmaking can’t easily be powered by electricity. That’s where renewable hydrogen, or green hydrogen, can play an important role.
“To become climate neutral, they need a fuel that can be transported like oil or gasoline, or that can convert iron ore to steel at high temperatures like coal,” he said.
To produce more hydrogen, Europe will need “much more” renewable electricity and would also need to rely on imports. It “must therefore develop partnerships with third countries to drive global trade in renewable hydrogen and in technologies that produce it,” Gillett added.
EASAC’s scientists, who also include members from Norway, Switzerland and the UK, are calling on policymakers to halt direct and indirect subsidies, taxes, levies and incentives to fossil fuels. This way, efforts could be focused on the support of carbon-free fuels and technologies, eventually making them more competitive and economically viable.
According to UK’s chemicals and sustainable technologies company, Johnson Matthey, the production cost of brown hydrogen (produced from coal) stands at $1.2-$2.1 per kg, compared with green hydrogen (produced by electrolysis powered by renewables) at $3-$7.5/kg.
The most promising fossil-fuel hydrogen, produced from natural gas, is much more competitive than the carbon-free version. The cost of grey hydrogen (produced from gas with no CCS) is around $1-$2.1/kg, while blue hydrogen (produced from gas with CCS) ranges between $1.5 and $2.9/kg.
Siemens to build green hydrogen plant in Germany
Siemens Smart Infrastructure and hydrogen specialist WUN H2 plan to build one of the largest green hydrogen production plants in Germany.
The facility will be built in Wunsiedel in the north of Bavaria, with groundbreaking slated for the end of the years and start-up for 2021, Power Materials understands. The project will enable the use of hydrogen for mobility and industrial purposes, Siemens said last week.
Hydrogen will be produced by electrolysis powered by renewable energy, such as solar photovoltaic and wind. Initially, the plant will produce over 900 tonnes of hydrogen per annum (tpa). When fully expanded, it will be able to supply up to 2,000 tpa.
According to Siemens, the hydrogen produced will be filled into gas cylinders for local distribution and shipped by truck to end-users in northern Bavaria and Western Bohemia -- the border region with Czech Republic.
Future plans include a public hydrogen filling station for trucks and buses, helping Germany to convert fuel of heavy-duty traffic and public transportation. The country aims to become carbon neutral by 2050.
The Wunsiedel plant will also be the first hydrogen plant to supply the co-products, oxygen and low-temperature waste heat, to “nearby industrial operations.” This makes the facility, which will rely on the so-called PEM technology, one of the most efficient today.
In the electrolysis process, the PEM, or proton-exchange membrane, works as a separator, among other things, and prevents the resulting gases from mixing. Compared to traditional alkali electrolysis, PEM technology is “ideally suited for utilizing fluctuating wind and solar electricity because of its highly dynamic method of operation,” according to Siemens.
Dry dock work starts for experimental hydrogen vessel Zeus
Italian shipbuilder Fincantieri is starting construction of an experimental fuel cell-powered vessel called ZEUS (Zero Emission Ultimate Ship) at its shipyard in Castellammare di Stabia, near Naples, Kallanish learns from Fincantieri. The vessel will be built as part of the “Low Environmental Impact Technologies” (TECBIA) project, co-funded by the Italian Ministry for Economic Development.
ZEUS is the result of research activity aimed at improving the level of environmental sustainability of cruise ships, mega-yachts, ferries and oceanographic research vessels, by reducing greenhouse gas emissions, nitrogen oxides (NOx), sulfur oxides (Sox) and particulate.
Measuring about 25 meters in length and weighing around 170 tons, ZEUS will serve as a floating laboratory to investigate fuel cell behavior in natural settings. Fuel cells are electrochemical devices that convert the chemical energy of hydrogen directly into electricity with no thermal combustion, Fincantieri explains in a note.
The vessel, to be delivered in 2021, will be fitted with a hybrid engine, 2 diesel generators and 2 electric motors, which will be used as conventional propulsion system. It will also be equipped with a 130 kW fuel cell system powered by about 50 kg of hydrogen contained in 8 metal hydride cylinders, using technologies already applied on board submarines, and a battery system which can guarantee a zero-emission navigation range of 8 hours at a speed of approximately 7.5 knots.
“The second research goal is to develop a new way of generating electricity and heat on board cruise ships. This will result in: greater passenger comfort, by reducing noise and vibrations from the power generating systems; increased energy conversion output by adopting power generating systems with no moving mechanical parts; higher ship safety by increasing the redundancy of existing systems; and smaller onboard diesel generating sets”, the note says.
Research activities also include testing new ways of using innovative green outfitting, such as new covering materials and photovoltaic panels to keep batteries and low Watt OLED light bulbs charged.
Several Group shipyards and subsidiaries are involved in the project, Castellammare di Stabia and Palermo shipyards, Fincantieri SI, Seastema, Cetena and Isotta Fraschini Motori.
CNR (National Research Council of Italy), the universities of Genoa, Palermo, and Naples, the ENR (National Institution of Italy for Standardization Research and Promotion) and RINA acted as project’s consultants, Power Materials notes.
Northvolt raises $600 million in private placement
Swedish battery producer Northvolt has raised $600 million in a private placement, moving the company closer to hitting its 150 GWh manufacturing target by 2030.
The private placement was led by Baillie Gifford, Goldman Sachs Merchant Banking Division, and Volkswagen AG. They were joined by Baron Capitol Group, Bridford Investments Limited, Norrsken VC and PCS Holding, Power Materials understands.
“We are in the middle of a race to establish manufacturing capacity in Europe, and I believe the companies that are best at attracting talent and capital, while scaling their blueprints the fastest, will be the most successful,” said Northvolt CEO Peter Carlsson in a statement. “With these world-class partners behind us, we have created a solid foundation to go on and execute our plans to enable large-scale manufacturing of green batteries in Europe.”
InoBat Auto, Manz ink agreement for Slovakian R&D facility
Slovakian battery producer InoBat Auto has signed a strategic agreement with German manufacturer Manz to equip a new AI-driven battery research and development centre, Power Materials gleans from a company release.
The 100MWh centre will begin to produce lithium-ion pouch cells next year. By 2024, the company plans to build a 10GWh production facility.
InoBat claims that its AI testing methods enable it to bring batteries to market 10 times faster than its competitors.
“InoBat is one of the global leaders in battery innovation, and through strategic partnerships with companies like Manz, we move another step closer to producing the most advanced batteries directly in the heart of Europe,” says CEO Marian Bocek. “We are excited to work with Manz on our R&D centre in Voderady, Slovakia –a truly European partnership which will not only enhance Europe’s bid for technological sovereignty but also reaffirm our ambition for a fully European supply chain. This will be vital to accelerating the electrification of transport.”
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