In this issue: Biden talks renewables, EVs as future of American manufacturing, nickel demand predicted to grow 10X by 2030, Total invests in HYZON, and more.
Scientists find better predictors for rare earth deposits
A team of scientists claims to have found a new clue for finding commercially valuable deposits of rare earth elements, Power Materials understands.
The team - led by Australian National University’s Michael Anenburg - found that rare earths in industrially useful quantities tend to be found in formations associated with certain varieties of carbonatite, an igneous rock.
This finding will help prospective rare earth element developers in pinpointing new resources.
“Demand for electric vehicle motors is forecast to increase in the coming decades,” according to the study’s abstract. “Our need for responsible mining and greater resilience to global supply-chain disruption necessitates diversification of mining localities.”
The study was published in ScienceAdvances.
EV nickel hunger to grow 10-fold through 2030: IDTechX
Nickel’s growing role in the electric vehicle industry - to the detriment of cobalt - is slated to increase by 10X through 2030, according to research firm IDTechX.
At least 95% of new electric vehicles sold in 2019 used one of two nickel-based battery formulas - NMC, or lithium nickel manganese cobalt oxide - and NCA, or lithium nickel cobalt aluminum oxide.
“Nickel is the most expensive material in electric vehicle batteries after cobalt and is also one of the most highly used outside of the battery industry. While nickel is often not discussed as much as cobalt or lithium, sustainable and environmentally conscious supply is becoming more of an issue,” IDTechX stated.
A global crunch in nickel supply - partly due to a 2017 partial suspension of nickel mining in the Philippines and a 2019 ban of exports of raw nickel from Indonesia - is coinciding with a massive surge in demand, IDTechX said.
“As the electric vehicle market grows with the trend towards higher nickel chemistries, IDTechEx expects the demand for nickel from electric vehicle batteries to increase 10-fold by 2030 compared to 2019,” the company said. “This makes the environmentally-conscious supply of nickel a serious issue going forward for the electric vehicle market.”
Lordstown poised for $800m windfall from Postal Service contract:Roth Capital
Ohio’s Lordstown Motors Corp stands to reap $800 million in revenue if associated company Workhorse Group secures an $8.1 billion US Postal Service contract, Power Materials learns from a report from investment banking firm Roth Capital Partners.
Lordstown is the manufacturing entity associated with Workhorse, and the CEO of Lordstown - Steve Burns - was the co-founder of Workhorse. Burns has said in the past that his Lordstown, Ohio, facility - formerly a General Motors facility - will build vehicles for Workhorse if it snags the deal.
Workhorse is one of just three applicants remaining for the Postal Service contract, and the only one proposing to fill the contract with electric vehicles, Roth noted.
Lordstown is in the midst of finalizing a $675 million merger with DiamondPeak Holdings, which will ultimately bring the company public on the NASDAQ under the ticker RIDE.
Total invests in hydrogen vehicle company HYZON Motors
French oil major Total has invested an unspecified amount into hydrogen mobility company HYZON Motors, Power Materials learns from a Total release.
The investment was made through Total’s venture capital arm Total Carbon Neutrality Ventures.
HYZON is a spin-off of Singapore’s Horizon Fuel Cell Technologies, and “...commercializes Horizon’s 17 years of hydrogen technology development for applications in the transportation sector,” Total noted.
Hyzon’s US headquarters are located in Honeoye Falls, New York, at the site of a former General Motors fuel cell facility. Ultimately, the company hopes to deliver 5,000 fuel cell vehicles over the next three years - reaching 40,000 vehicles annually by 2025.
"Building out hydrogen mobility technology and assets is a long game and requires significant partnerships. This is why we are pleased to welcome today our new investors and their support for accelerating the energy transition in mobility,” said HYZON CEO Craig Knight. “In particular, we are delighted to welcome global energy company Total, a leader in the energy transition. As an investor and strategic partner, their experience, technology and infrastructure to supply clean energy, including hydrogen, around the world will be important to the success of HYZON."
Toyota to begin heavy truck fuel cell verification tests in 2022
Japanese auto producer Toyota and its hydrogen fuel cell partners plan to begin road tests for a line of heavy trucks by spring 2022, Power Materials learns from a company release.
Toyota’s heavy-duty fuel cell trucks - defined as vehicles over 3.5 tons - are slated to have a target range of 600km. The participating companies are Asahi Group, Seino Transportation, NEXT Logistics Japan, Yamato Transport, and Hino Motors.
The decision to move up the testing schedule was made to accelerate “...the development of a sustainable society,” Toyota said.
“This may be achieved, at least in part, by reducing CO2 emissions from heavy-duty FCETs [fuel cell electric trucks], which account for approximately 70% of all CO2 emissions from commercial vehicles in Japan,” Toyota added.
$46m microfactory for EVs comes to South Carolina
Electric vehicle producer Arrival plans to build a $46 million microfactory in South Carolina’s York County, according to an announcement by South Carolina Governor Henry McMaster.
“The company’s South Carolina operations will utilize a new cell-based assembly method to produce vehicles rather than a traditional automotive production line, allowing the production of any vehicle from Arrival’s portfolio,” according to the governor’s release. “With this model, Arrival occupies a smaller footprint, hence the name “microfactory." The microfactory design is key to Arrival’s approach to bringing down the cost of EVs to accelerate mass adoption.”
Operations are slated to begin in the second quarter of 2021, with a production target of Q4 2021.
“Our new microfactory in South Carolina is the beginning of a paradigm shift in the EV space,” said Arrival CEO Mike Ableson. “We're thankful for the great work at the state and local levels that lead us to South Carolina, and we are excited to be able to partner with York County to deliver our vision for commercial electric vehicles while investing in the lives of the community members that support Arrival.”
Sumitomo Metal Mining to step up lithium production, battery research
Japan’s Sumitomo Metal Mining plans to increase its battery-grade lithium nickel oxide production to match an expected uptick in demand from electric vehicles, Power Materials reports.
According to a company release, Sumitomo will both increase its lithium nickel oxide production and step up its research efforts on next-gen batteries “...to meet the growing demand for automobile secondary batteries as the push toward electric automobiles grows.”
The company’s Isoura Plant will increase capacity from 4,550 tons/month to 4,850t/m beginning in mid-2022.
“While the scale of our production increase this time is limited by structural restrictions, we’re not limiting ourselves to simply expanding existing plants to meet the increasing demand for cathode materials for secondary batteries,” Sumitomo said. “We’re also looking at the construction of a new plant that incorporates ‘smart’ functionality, like remote operation and automation.”
EVE Energy eyes lithium, cobalt stockpiling in favorable price environment
Chinese lithium-ion battery producer EVE Energy plans to increase its lithium and cobalt buying while prices are in a lull, Power Materials learns from a Bloomberg report.
EVE chairman Liu Jincheng told Bloomberg that the company is “...seriously considering whether we can buy more while they are cheap now.”
The company - which has a battery supply agreement with Daimler AG - is the fifth largest supplier to China’s electric vehicle market with a 5% share.
In a related report, BNEF recently forecasted that lithium demand will increase by at least 9X through 2030, with a concurrent threefold growth in cobalt demand.
Energy Renaissance breaks ground on Australian gigafactory
Australian battery producer Energy Renaissance announced this week that it will build an A$28 million ($20.04m) gigafactory in Tomago, according to a company release.
Dubbed Renaissance One, the facility will be completed sometime in 2021, said managing director Mark Chilcote.
Initial battery capacity will begin at 66MWh/year, eventually scaling to 5.4GWh/y. Total investment cost will likely be over A$200 million.
About half of the factory’s production will be exported, Energy Renaissance noted. “Once Renaissance One is operating at capacity, it will be able to provide – in the space of a year – enough batteries to power every public school, hospital, fire station, SES unit and new homes built in Australia,” said Patron Senator for the Hunter Region Hollie Hughes. “That’s reassuring because Australia will be able to rely on its own source of renewable energy in the very near future.”
Appia launches private placement to fund Canadian RE project
Toronto’s Appia Energy Corp is offering a non-brokered private placement with an eye towards funding its Saskatchewan rare earth element and uranium project, Power Materials gleans from a company release.
The offering will be for up to 10 million flow-through units priced at $0.40/unit, or up to 10 million working capital units priced at $0.35/unit.
The company’s rare earth element development centers around the Alces Lake property.
NAWA claims its carbon electrodes represent “quantum leap” in battery tech
French battery and ultracapacitor producer NAWA Technologies plans to produce a new variety of carbon electrode that could potentially greatly improve battery power, storage capacity, lifecycle, and charging times.
The battery is based on the company’s vertically aligned carbon nanotube design and uses a 3D internal design, Power Materials learns from a company release.
That means that batteries using the new carbon electrode stand to improve power by a factor of 10; storage by a factor of three; lifecycle longevity by a factor of five; and charging times will fall from hours to minutes, the company said.
NAWA also claimed that the carbon electrode is cost-efficient compared to existing technologies. The electrodes make up about 25% of the cost of an electric vehicle battery, the company said.
Nano One unveils cobalt-free EV battery
British Columbia’s Nano One Materials reports that it has developed a cobalt-free electric vehicle battery with the potential to achieve a “breakthrough” in battery longevity, Power Materials understands from a company report.
The battery uses a lithium nickel manganese (LNM) cathode chemistry, produced with a proprietary one-pot process.
“Our high voltage battery resolves excessive gassing and anode contamination issues that are associated with this configuration when operating at both ambient and elevated temperatures," said Dr. Stephen Campbell, chief technology officer of Nano One. "We are able to avoid rapid capacity fade and premature failure and have successfully demonstrated a high voltage lithium ion battery cell with significant cycle life - this is an exceptional outcome. The enabling technology is Nano One's patented LNM cathode material operating up to 4.7 volts and made using our patented One Pot process. The LNM voltage is 25% higher than commercial lithium ion batteries, improving efficiency, thermal management and power."
Ultimately, LNM batteries are a candidate for the switch from lithium pouch to next-generation solid state batteries, Campbell added.
Canada Nickel to begin trading on OTCQB
Canada Nickel Company has begun publicly trading under the ticker symbol CNIKF on the OTCQB Venture Marketplace, the company says in a release.
Trading for the company went live on October 14.
"Trading on the OTCQB will make the company accessible to a much broader range of US investors and assist in our goal of increasing liquidity and visibility in the US,” said CEO and chairman Mark Selby. “We look forward to introducing our Crawford nickel-cobalt sulphide project, located in one of the world's best mining jurisdictions, to this new group of investors."
Canada Nickel’s Crawford project is located in Ontario, Canada, and contains both nickel and cobalt resources - both key to the production of electric vehicle batteries, Power Materials notes.
First Cobalt praises Canadian supply chain support
First Cobalt is cheering Canadian federal support for the development of electric vehicle and battery manufacturing supply chains throughout the country, Power Materials reports.
CEO Trent Mell said in an e-mailed statement that federal and provincial governments announced in early October a combined $590 million toward that end.
“This investment will secure jobs in the auto sector as the electric vehicle revolution picks up steam and will have ripple effects across the auto parts sector,” Mell said. “Government support for a transformation of the automotive supply chain will give Canada an edge when it comes to competing for the billions of dollars of capital investments that are being made by companies and governments around the world in anticipation of increased consumer demand for electric vehicles.”
He adds that the so-called electric vehicle “arms race” between Asia, Europe, and North America has been weighted against North America for some time. The continent stands to recoup lost ground quickly, however.
“North America has lagged behind Asia and Europe in EV adoption but make no mistake, change will happen quickly,” he said. “Moreover, with the largest passenger market on the planet just across our border, change will be swift and Canadian industry must be prepared to meet a drastically different market.”
Fortune Nickel and Gold to speed up development for EV market
Here To Serve Holding Corp subsidiary Fortune Nickel and Gold plans to expedite its Timmins, Ontario, nickel mining project in the face of expected demand from the electric vehicle sector.
Power Materials learns from a company release that Fortune has retained Prairie Fire Enterprises to assist in the investigation and photography of the Timmins site.
"We are very excited about the on-going exploration progress and the attention nickel is receiving in the electric vehicle battery supply chain,” said Fortune CEO Paul Riss. “We have read that nickel is arguably the single most important metal component in electric vehicle batteries. Elon Musk has been quoted as saying that the battery cells should be referred to as nickel-graphite, because the primary constituent in the cell is nickel."
European charging chain Fastned sees revenue grow by more than 50%
European electric vehicle charging chain Fastned saw its revenues increase by more than 50% on-year during the third quarter, Power Materials learns from the company’s earnings review.
Fastned generated revenues of €1.6 million, up 54% on-year. That represents 2.9 GWh of delivered renewable energy; 47,213 customers; 167,000 charging sessions; and 14.3 million electric kilometers of driving distance.
“What is not reflected in our numbers is the quantum shift in our underlying market, with fully electric vehicle deliveries in many of our markets moving from 1-2% of total car sales in 2019 to 5-10% in September of this year,” said CEO Michiel Langezaal. “Once people start moving again, we expect to see accelerated sales growth. Therefore, we continue to expand capacity by building new and bigger stations. I am really proud that just in the last few days our team opened the largest charging hub of Germany, as well as delivering our first station in Belgium. The latter will be officially opened at the end of October, adding a fourth country to our network.”
Indonesia to form battery coalition from state-owned companies
Global nickel heavyweight Indonesia plans to put together an electric vehicle battery joint venture between several state-owned companies, Power Materials learns from Reuters.
Reuters cites Mining Industry Indonesia chief executive Orias Petrus Moedak with announcing the joint venture, dubbed Indonesia Battery Holding.
It will be made up of MIND ID, Aneka Tambang, Perusahan Listrik Negara, and Pertamina.
Reuters adds that at least two projects are in the works with Chinese and South Korean partners valued at $12 billion, again citing Orias. Additional smelter projects in the $2-3 billion range are also being considered, Orias told Reuters.
Electric vehicles represent opportunities for steel: AISI
The rapid growth of the electric vehicle market isn’t a threat to steel - and in fact reinforces efforts already underway in the high-value advanced high-strength (AHSS) steel arena, Power Materials hears from the American Iron and Steel Institute.
“As the industry shifts toward more electric vehicles, lightweighting will remain front and center,” said AISI automotive program vice president John Catterall. “Automakers can combine the potential mass reduction enabled by AHSS with appropriate engine technologies to achieve their desired fuel-economy goals.”
Three main opportunities exist in the electric vehicle arena for steel, Catterall adds - EV battery packaging, B-pillarless designs, and overall lightweighting.
“As battery efficiencies improve the battery pack costs decrease, as does the premium an automaker is willing to pay for mass reduction. Advanced grades of steel also allow thinner gauges thus optimizing the available package pace for more batteries, resulting in greater range on a single charge,” Catterall says.
Third-generation AHSS is being used in vehicle side structures, which eliminates the need for B-pillars - or the vertical supports near the midsection of a vehicle.
“With more than 200 grades of innovative steels available to automakers today, and more in development, applying the right grade of steel for the right application allows for exceptional occupant protection, durability and crash energy management in a cost-efficient manner,” Catterall says.
European EV market share to treble despite pandemic
Europe’s electric vehicles (EVs) market share is set to treble this year to 10%, despite the Covid-19 pandemic, Power Materials reports.
According to a new analysis by Transport & Environment (T&E), that’s because of the EU 2020/21 car CO2 emission standards. The legislation forces carmakers to meet targets to reduce the average emissions of the cars they sell, or pay fines.
The European clean transport campaign group estimates that the total number of electric cars sold in Europe will double to reach 1 million this year and 1.8 million in 2021.
The EVs market share in Europe is expected to grow to 15% in 2021, which means one in seven cars sold will be either a battery electric vehicle (BEV), a plug-in hybrid electric vehicle (PHEV) or a hybrid electric vehicle (HEV).
T&E believes purchase incentives launched in mid-summer in Germany, France and other countries are “undoubtedly continuing the emobility momentum.”
The boom in EV sales has resulted in a significant drop in CO2 emissions, with automakers already reaching or close to reaching their 2020 CO2 targets. In the first-half of the year, new car CO2 emissions in the continent dropped to 111 g/km, from 122 g/km in 2019, T&E said.
The PSA Group, Volvo, FCA-Tesla and BMW have already reached their binding targets; while Renault, Nissan, Toyota-Mazda and Ford are very close to hitting them, T&E said.
Volkswagen and Hyundai-Kia need to improve their EVs sales, but Daimler and Jaguar-Land Rover are the ones farthest away from meeting their targets, according to the analysis.
UK could face EV supply shortage: analysis
The UK supply of electric vehicles (EVs) could dry up next year, as the country leaving the European Union lacks regulation incentivizing sales, Power Materials understands.
A new report published this week by campaign group Transport & Environment (T&S) claims the current UK draft regulation contains “errors” that will lead to a roughly 20% drop in EVs sales.
Under the EU regulation, car manufacturers must meet targets to reduce the average emissions of the cars they sell in Europe, or pay fines. From 2021, UK sales of EVs won’t help manufacturers achieve EU standards.
“European manufacturers have EVs to sell, but from January they’ll have no incentive to sell them in the UK unless the government requires them to do so,” said Greg Archer, UK director at T&E.
Archer states the British government needs to quickly introduce regulations equivalent to the EU’s in 2021, “or demand for electric cars will outstrip available supply and drivers will be left with long waits to secure their new electric car, which will be more expensive.”
The country plans to phase out sale of all new internal combustion engines cars by 2035, the latest. This deadline is rumored to be brought forward to 2030.
Tesla cuts Model S prices twice in a week
US electric vehicle producer Tesla announced two price cuts to its Model S line in the week ended 18 October.
The Model S began the week at $74,990 and ended at $69,420.
“The gauntlet has been thrown down! The prophecy will be fulfilled. Model S price changes to $69,420 tonight!” tweeted CEO Elon Musk on October 14.
The move came shortly after competitor Lucid announced earlier in the day that its Lucid Air sedan would be priced at $77,400. Federal tax credits that no longer apply to Tesla would ultimately bring Lucid’s price in the US down to $69,900.
Porsche shoots for 50% EVs by 2024, 90% by 2030
German auto producer Porsche AG is eyeing a massive increase in its electric vehicle portfolio, according to a presentation given by CEO Oliver Blume during October’s Institut für Automobilwirtschaft.
During the presentation, Blume presented a slide that appeared to show the company’s electric/internal combustion engine portfolio breaking even in 2024 and then shifting to 90% electric by 2030.
The announcement comes against the backdrop of increasingly stringent European Commission emission regulations and the announcement by two US states - New York and California - that internal combustion vehicle sales are to be phased out by 2035.
Biden pins US manufacturing hopes on renewables, electric vehicles
Presidential hopeful Senator Joe Biden said during a roundtable discussion on the ABC network on 15 October that the future of American manufacturing lies in renewable energy and electric vehicles.
The roundtable discussions were an alternative to a planned second presidential debate with incumbent President Donald Trump. The two are slated to meet again on 22 October.
“What we have to do in the future rests in renewable energy - the single fastest-growing energy source in the world right now,” Biden says. “I'm going to say something that's going to sound self-serving but I managed the Recovery Act and I was able to invest billions of dollars into bringing down the cost of the cost per BTU of wind and solar so now it's cheaper than coal and it's cheaper than oil right now and it has great, great promise.”
Made-in-America stipulations for federal contracts are going to be a cornerstone of his administration, if elected, he adds.
“I, as president, am going to invest that $600 billion we spend in government contracts only on those things that in fact also are not only made in America but building an infrastructure that's clean and new and what we have to do is focus on the transmission of energy across the country from areas relating to solar and wind. The reason is that that has not been mastered yet.”
The electrification of the US vehicle fleet represents further opportunities, he says.
“Electric vehicles will save billions of gallons of oil, create...one million automobile jobs,” Biden says. “But we're lagging because we're not investing. We're not doing any of the research.”
California devotes $384m to zero-emission transportation
The California Energy Commission has approved a $384 million plan to bolster zero-emission vehicle adoption, Power Materials learns from a government statement.
“The zero-emission transportation market continues to be California’s for the making, delivering jobs and cleaner air especially in communities most in need of relief,” said lead commissioner for transportation Patty Monahan. “This funding plan is another down payment on electrifying transportation while helping ensure everyone can take part through access to convenient refueling, innovative mobility options, workforce training programs and more.”
The investment plan, which will stretch through 2023, allocates $132.9 million for light-duty vehicle charging infrastructure, $129.8 million for medium- and heavy-duty charging infrastructure, and $70 million for hydrogen refueling.
The remainder will be spent on fuel production and supply, recovery and reinvestment, manufacturing, and workforce development.
Electric vehicle growth to dampen nickel volatility: INSG
Uncertainty in the nickel market is likely to persist into 2021, offset somewhat by continued growth in the electric vehicle sector, Power Materials learns from the October meeting of the International Nickel Study Group.
“The continued electrification of vehicles will have positive effects on nickel usage, through the use of nickel sulphate in batteries,” according to a released summary of the October meeting.
The group put world primary nickel usage for all end-uses at 2.403 million tonnes in 2019. That is expected to be about 2.318mt in 2020 and 2.518mt in 2021.
UK EVs exports to EU likely to face 10% tariff from January
UK electric car exports could be hit with a 10% tariff from January, as the EU is said to soon quash a Brexit plea to zero tariffs on UK exports to the bloc.
According to the BBC, the EU is about to officially reject the British request to exempt tariffs when the minority of the parts value is from the two areas. In this plea, up to 70% of the parts of the exported electric and hybrid cars could be from elsewhere.
The EU is set to announce that a zero-tariff scenario would only apply if a majority of the parts value were from the UK and the EU. This is a challenging outlook for car export factories, which rely on imports of electric batteries, hybrid systems and other technology from Asia, particularly from Japan.
Asian carmakers Nissan, Toyota and Honda have substantial manufacturing facilities in the UK. But due to Brexit, Honda is shutting its Swindon factory next year.
Post-Brexit trade negotiations between the UK and the EU aren’t going smooth and the dreaded no-deal outcome could put many industries at risk.
On October 16, UK Prime Minister Boris Johnson said in a speech that with only 10 weeks until the end of the transition period on January 1, he has “to make a judgment about the likely outcome” and to get the country ready.
His sought-after Canada-style deal is unlikely to happen. “We should get ready for January 1 with arrangements more like Australia’s based on simple principles of global trade,” said Johnson.
Cross-sector firms set up Japanese hydrogen association
Toyota and eight other Japanese firms have announced the creation of a hydrogen association to be launched in early December, Power Materials reports.
The so-called Japan Hydrogen Association (JH2A) will promote the development of a hydrogen supply chain and global partnerships, through a cross-sector collaboration.
A preparatory committee has been created to draw up policies and promote initiatives with a view to “resolve the issues of creating demand in hydrogen, reducing cost through scale-up of hydrogen use and technological innovation.”
The committee also includes Kawasaki Heavy Industries, Kobe Steel, Mitsui & Co, Sumitomo Mitsui Financial Group, Eneos Corporation, Iwatani Corporation, Kansai Electric Power and Toshiba.
“With hydrogen anticipated to play an important and central role in curbing global warming, Japan is expected to continue to take the lead globally through innovative steps,” the companies said in a statement released by Toyota.
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