Clean Car Standards
DOJ Aide Alleges Wrongdoing In Automaker Probe.
According to E&E News, “A career employee
at the Department of Justice plans to offer bombshell testimony today on the Trump administration’s now-closed investigation of automakers that adopted California’s stricter vehicle emissions standards. John Elias, a trial attorney at DOJ, plans to tell the
House Judiciary Committee that the investigation appeared to be politically motivated, according to his prepared testimony. His remarks are set to confirm the suspicions of Democrats on the Judiciary Committee, led by Chairman Jerry Nadler of New York, who
have long accused the department of politicization under Attorney General William Barr. Democrats have taken a special interest in DOJ’s probe of four automakers — Ford Motor Co., Honda Motor Co. Ltd., Volkswagen AG and BMW of North America LLC — that agreed
to adopt the California Air Resources Board’s stricter greenhouse gas standards for passenger cars last July. The move stands to subvert the Trump administration’s rollback of federal clean car standards, which was finalized in March. DOJ’s antitrust division
began formally investigating the matter in September, seeking to determine whether the four car companies violated antitrust law. At the time, Sen. Kamala Harris of California and other Democrats blasted the probe as a partisan attack on the blue state of
California (Greenwire, Sept. 13, 2019). DOJ subsequently closed the probe in February without uncovering any wrongdoing (Climatewire, Feb. 10). Elias plans to strongly imply that the probe was motivated by baseless political concerns, rather than genuine antitrust
concerns.” [E&E News, 6/24/20
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DOJ Whistleblower Cites Trump Tweets As Impetus
For California Emissions Probe. According
to The Hill, “A Department of Justice (DOJ) investigation into California’s efforts to reduce vehicle emissions appeared to be politically motivated, a DOJ whistleblower wrote in testimony to lawmakers that was released Tuesday. John W. Elias, a DOJ career
employee slated to appear before the House Judiciary Committee Wednesday, wrote that an investigation into California’s emissions agreements with four automakers was spurred shortly after tweets from President Trump complaining about the deal. ‘The day after
the tweets, Antitrust Division political leadership instructed staff to initiate an investigation that day,’ Elias said, noting that it was ‘generated by the division’s policy staff, which does not conduct enforcement investigations of this type.’ The July
deal came as the Trump administration was in the midst of developing now-finalized tailpipe emission and mileage standards for vehicles that significantly roll back those developed under the Obama administration. California’s agreements with BMW, Ford, Honda
and Volkswagen commit automakers to producing vehicles that could average 50 miles per gallon (mpg) by 2026, while the Trump plan asks automakers to reach 40 mpg in the same timeframe. ‘Car companies should know that when this administration’s alternative
is no longer available, California will squeeze them to a point of business ruin,’ Trump tweeted in August. The DOJ Antitrust Division immediately began investigating whether the agreement violated the nation’s competition laws against collusion — prompting
an outcry from Democratic lawmakers in D.C. and California.” [The Hill, 6/23/20
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Whistleblower: DOJ Probe Of California Auto Emissions
Deal Driven By Politics. According to
Politico, “The Justice Department’s antitrust probe last year into the voluntary vehicle emissions deal that California reached with four automakers was rushed, unusual and launched, despite the objections from career staff, according to a senior prosecutor
at the agency. The written testimony from John W. Elias, released ahead of a Wednesday hearing before the House Judiciary Committee, describes what the career prosecutor viewed as the irregular nature of the investigation into the automakers, as well as other
aspects of the Trump administration’s fight with California on the environment and other issues. Elias said he raised concerns about the probe and a separate series of investigations into the cannabis industry with the Justice Department’s inspector general.
Elias was chief of staff for the DOJ’s antitrust division from January 2017 to October 2018. He now works as an antitrust prosecutor and has focused on price-fixing probes of the pharmaceutical industry. Democrats and other critics of the Trump administration
have long argued that the investigation of the automakers appeared politically motivated given Trump’s animosity toward California and the probe’s timing. The antitrust investigation may also have spooked other automakers with whom the state was in talks to
adopt its regulatory plan over a less stringent one pushed by the administration. Assistant Attorney General Makan Delrahim has long rejected the notion, arguing instead that the probe was a standard review.” [Politico,
6/23/20
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In Break With Trump's EPA, Nevada Announces Plan
To Cut Tailpipe Emissions. According
to DeSmog, “Nevada Governor Steve Sisolak announced on Monday, June 22, that Nevada would be developing a policy to increase the number of zero and low-emission vehicles sold within the state. With the announcement of the Clean Cars Nevada initiative, Nevada
is set to join 14 other states that have fully or partially adopted clean car standards identical to California’s stricter standards authorized by the Clean Air Act. Eleven states have already formalized their commitments to California’s standards, which have
been threatened by the Trump administration’s rollback of vehicle emissions rules and the current U.S. Environmental Protection Agency’s pledge to revoke California’s right under the Clean Air Act to set its own standards. States like Minnesota, Colorado,
and Washington have already initiated clean car standards programs in efforts to improve air quality, protect public health, and reduce greenhouse gas emissions at the state level. Transportation is the largest source of climate pollution in the U.S., and
tops the list in many states including Nevada. Given that fact, reducing transportation emissions is essential for Nevada to meet its climate policy goals. ‘Transportation is the number one source of greenhouse gases in Nevada, and therefore a top priority
for addressing climate change statewide,’ Bradley Crowell, Director of the Nevada Department of Conservation and Natural Resources (DCNR), said in a press release. ‘To move Nevada’s climate future forward, we must reduce pollution from the cars and trucks
we drive as well as modernize our urban planning efforts through transit-oriented development and electrification of our transportation infrastructure.” [DeSmog,
6/23/20
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Nevada Adopting California's Tough Car Pollution
Rules, Pushing Back Against Trump Administration. According
to The Hill, “Nevada’s governor announced Monday that the state will adopt tougher emission standards for vehicles set by neighboring California, a blow to the Trump administration’s efforts to roll back vehicle standards passed under the Obama administration.
Gov. Steve Sisolak (D) said in a statement that the time was right for Nevada to confront climate change and work to develop sustainable transit options, according to the Los Angeles Times. ‘Now more than ever, it is critical for Nevada to continue accelerating
efforts to address climate change including capturing the many benefits of sustainable transportation options for Nevadans,’ Sisolak said. ‘Now is the time to set a new trajectory that will lead to healthier communities across the Silver State and establish
Nevada as a leader in the clean transportation economy.’ Local activists told the newspaper that the changes were a result of concerns over air pollution in the Las Vegas region, which is one of the worst-hit by smog in the country. The state’s decision comes
as California is engaged in a legal battle with the White House over the Trump administration’s efforts to end the Clean Air Act’s exception that allows the state to set its own, tougher emission standards and allows other states to jump on board with California’s
standards. California officials have largely resisted the Trump administration’s efforts to roll back emission standards, thereby creating two sets of standards for vehicles in the U.S. One local activist told the Times that an increase in wildfires and other
effects of climate change necessitated Nevada’s decision to join with California in adopting the tougher standards.” [The Hill,
6/23/20
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Analysis: Fuel Efficiency Standards.
According to Dan Becker and James Gerstenzang
in CQ Press, “President Trump’s rollback
of clean-car rules halts the biggest single step any nation has taken to cut global warming pollution. The rules took effect in 2012 and would deliver a new-car fleet in 2025 that averages 37 mpg, while cutting auto emissions in half. By trashing the rules,
the president is leaving the world at far greater risk of the climate catastrophes we are already witnessing. Before Trump gutted them, the rules not only reduced pollution — they were saving Americans hundreds of billions of dollars at the pump. Even after
paying for the gasoline-saving improvements — more-efficient transmissions and safe, lightweight materials — consumers would come out $4,000 to $6,000 ahead because their cars would need less fuel. Each gallon of gasoline we burn pumps 25 pounds of carbon
dioxide (CO2), the primary global warming pollutant, into the atmosphere. The stringent standards were designed to prevent release of 6 billion tons of CO2 by eliminating our need for 12 billion barrels of oil. CO2 creates an invisible heat-trapping blanket
close to Earth. The energy from that heat is making tropical storms and wildfires more frequent and fierce. The heat is helping spread tropical diseases to once-temperate climates and is making increasing swaths of the globe unfit for human habitation. Ignoring
science, Trump is ending widely popular rules that would improve the cars we drive for years to come and keep as much CO2 out of the atmosphere as shutting all U.S. coal-fired power plants for more than a year.” [CQ Press,
6/19/20
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States
In Ohio, A Glint Of Hope Among Heartbreak.
According to Bloomberg, “In a cavernous
Northeast Ohio factory that General Motors Co. abandoned last year, a small group of engineers is coaxing dormant robots back to life -- one by one -- in a long-shot bid to build a new type of pickup truck. Here, in the middle of the Rust Belt, the small,
untested company hopes to build electric vehicles where GM once employed 10,000 at its peak, turning out Impalas and Firebirds -- and, when the end came, compact Cruzes. So far, the fledgling company, Lordstown Motors, has hired just 70 full-time employees,
and no one thinks it can bind up all the economic wounds that have hit the region time and again. But the company’s Chief Executive Officer, Steve Burns, says he gave the commercial truck a name with that history in mind: ‘a dual meaning about the endurance
of the people of the region.’ The Endurance will be unveiled Thursday, though it’s a working protoype ahead of planned production in 2021. Vice President Mike Pence is scheduled to attend the reveal at the plant, which became a national story in recent years
because of President Donald Trump’s attention to it. As recently as June 19, the chairman of the Federal Reserve, Jerome Powell, spoke virtually with community leaders about their ongoing struggle to revitalize the area. ‘The Lordstown closure served as a
reminder of how interconnected local economies can be,’ Powell said. By the time GM shut down production in March 2019, its ranks had dwindled to about 1,500, and most of those workers either retired or transferred to plants in states including Tennessee,
Indiana or Kentucky.” [Bloomberg, 6/24/20
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California Could Adopt Nation’s First Electric
Standard This Week. According to Cap
Radio, “Tens of thousands of electric trucks could be on California roads within a decade’s time if state air officials and clean-air advocates get their way this week. The California Air Resources Board, or CARB, is set to vote on a plan Thursday to require
manufacturers to produce more electric trucks, which could put 100,000 zero-emission trucks on roads by 2030 and around produce 300,000 by 2035. The rule would be the first of its kind in the country ‘We’re sending the market signals that zero-emission trucks
are going to be required in California,’ said Craig Duehring in April. He’s a manager within the Mobile Source Control Division of CARB. The agency updated a draft plan on electric trucks in late April and is scheduled to vote on the plan Thursday. If adopted,
they’ll ask manufacturers to create more zero-emission trucks — from full-size pick-up trucks to cement trucks to semi-trucks. The proposal is part of the state’s climate goal of reaching carbon neutrality by 2045. ‘This is putting us on a path to having 100%
of trucks being zero emission by the 2045 time frame where feasible,’ said Tony Brazil in April. He’s the branch chief for CARB’s heavy duty diesel implementation division. The trucking industry questions the proposal over how fast it could build trucks and
how businesses will purchase them, especially with the pandemic and a potential recession. The projections about the future electric truck fleet are in some cases nearly double a previous CARB proposal from 2019, where only about eight percent of trucks would
be required to go electric, said Paul Cort, staff attorney with the environmental advocacy group Earthjustice. Cort said the plan was not aggressive enough.” [Cap Radio,
6/23/20
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California Accelerates Clean Transportation Policy,
Targeting 500,000 Electric Trucks By 2040. According
to Forbes, “California is about to shift the electric trucks market into high gear. On June 25th, the California Air Resources Board (CARB) will vote on its proposed Advanced Clean Trucks rule, which would require about 60 percent of new medium- and heavy-duty
trucks sold in the state to be zero-emission vehicles (ZEVs) by 2035. The rule would be America’s first electric vehicle standard for trucks, creating a market for up to 500,000 electric trucks by 2040. Tesla TSLA’s stock price recently jumped to more than
$1,000 per share on news the company would rev up production of its long-haul Class-8 tractor—an indication of growing investor confidence in electric truck economics. But while Elon Musk’s statements grab headlines, the bigger story is CARB’s proposed clean
trucks rule. If adopted as expected, clean transportation historians will look back at the Advanced Clean Trucks rule as a landmark policy. Energy Innovation and the Energy Defense Fund recently evaluated the proposed clean trucks rule using the California
Energy Policy Simulator (EPS), finding it could create $7-$12 billion in savings for fleet operators, on top of at least $9 billion in public health benefits across the state. And, macroeconomic analysis indicates the clean truck rule will create thousands
of new jobs. The proposed clean truck rule is first and foremost a public health measure, aimed at improving air quality for millions of Californians. The Golden State has the nation’s worst smog, much of it due to diesel trucks that release hazardous pollution
like nitrogen oxides (NOx).” [Forbes, 6/24/20
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Auto Manufacturers
'I Pray It Does Work': Inside The High Hopes For Lordstown Motors.
According to The Drive, “Good morning and welcome back to Speed Lines, The Drive’s morning
roundup of what matters in the world of cars and transportation. Today we’re talking about Lordstown Motors’ attempt at a comeback for a former General Motors plant in Ohio, how Bentley wants to speed up electrification and an end to BMW and Mercedes’ short-lived
partnership. The all-new Ford F-150 isn’t the only important American pickup truck that will debut this Thursday. Granted, what Lordstown Motors has in Ohio is very much the David to Ford’s best-selling vehicle in America, but it’s still important—if nothing
else, as a ray of hope for a battered community that’s seen much of its manufacturing base dry up in recent years. On Thursday, EV startup Lordstown Motors will conduct the official reveal of the Lordstown Endurance electric pickup truck, which is made at
the former Chevrolet Cruze plant in the Ohio town with the same name. That plant has had an ugly and often highly politicized history; built in the 1960s, it spent decades making an ever-dwindling number of GM compact cars from the Bel Air to the Cruze, but
was ‘unallocated’—a fancy, union-placating term for production being discontinued—last year. That delivered a crushing blow to the local economy, which has long been dependent on Ohio’s evaporating manufacturing sector. That county alone has lost 20,000 jobs
since 2000. GM, rightfully so in my opinion, received a great deal of criticism for unallocating the plant as it moved other production jobs overseas and to Mexico. The plant got a rare shot at another lifeline when it was sold to Lordstown Motors, which is
10 percent owned by electric truck maker Workhorse Group, and uses its technology.” [The Drive,
6/23/20
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Mercedes-Benz And Nvidia Team Up To Develop Next-Generation Supercomputers For Cars.
According to The Verge, “Mercedes-Benz is teaming up with Nvidia to develop a next-generation
computing platform for vehicles that will support everything from over-the-air software updates to automated driving. The German automaker said it plans to begin rolling out the new technology across its fleet starting in 2024. The new platform will be based
on Nvidia’s system-on-a-chip Orin technology and will also use the San Jose-based company’s full Drive AGX software stack. Nvidia first unveiled Orin at CES in December 2019, and aside from top-line specifications such as the ability to deliver up to 200 trillion
operations per second while using less power, the company has yet to provide any further details. The new platform includes a full system software stack that can support a variety of automated driving applications, including advanced driver assist systems
like Tesla’s Autopilot and Cadillac’s Super Cruise, as well as driverless parking functions like Tesla’s Smart Summon. It will also enable smartphone-style over-the-air software updates on all Mercedes vehicles starting in four years. Legacy automakers have
struggled to catch up to Tesla, which has long been the leader in shipping over-the-air (OTA) updates to its customers to change everything from its Autopilot driver assistance system to the range of its electric vehicles. It’s similar to how Apple or Samsung,
for example, can update or repair the software on a smartphone. Nvidia’s Drive system can track a driver’s head and eyes to assess when they’re paying attention to the road, and it can monitor blink frequency to assess drowsiness.’ [The Verge,
6/23/20
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Tesla Battery Day Set For September, Elon Musk Says.
According to CNET, “We’ll likely hear some big news about electric car batteries at Tesla’s
upcoming Battery Day, which now has a tentative rescheduled date. Battery Day was originally supposed to happen in April or May, but Tesla and CEO Elon Musk didn’t make mention of the event as the coronavirus pandemic set in. Musk said on Twitter this Sunday
that Sept. 15 will be the day we learn about whatever Tesla has in store for this event. The main rumor has it the event has something to do with a ‘million-mile’ battery. China’s CATL has supposedly worked with Tesla to create such a unit, and the company
said earlier this month it’s ready to build a battery with enough energy to go 1.24 million miles. However, CATL didn’t mention Tesla. But that could be because Tesla has its own version with help from CATL it wants to announce during its Battery Day. It’s
rumored that this cobalt-free battery will first show up in Chinese-built Model 3 vehicles, and then possibly head to cars sold in other countries. Aside from a possible million-mile battery, we’ve also heard about Tesla batteries that won’t use cobalt to
reduce costs and some rumored charging technology to help cars give back to the grid when possible.” [CNET,
6/23/20
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Ford Aims To Achieve Carbon Neutrality By 2050.
According to The Hill, “Ford Motor Co. on Wednesday announced a new goal to become carbon
neutral by 2050. A spokesman for the company said they are ‘working backwards’ to design a plan for reaching the goal, which would focus on production emissions before addressing emissions from vehicles. ‘We don’t have all the answers yet but are determined
to work with all of our global and local partners and stakeholders to get there.’ Bob Holycross, Ford’s chief sustainability, environment and safety officer, said in a release. ‘We can develop and make great vehicles, sustain and grow a strong business and
protect our planet at the same time — in fact, those ideals complement each other.’ The company will first work to reduce emissions at its facilities before moving to tackling emissions from the electricity it purchases. Part of the goal includes a commitment
to switch entirely to renewable sources of energy by 2035. The third phase of the plan will focus on reducing emissions from their vehicles, rather than seeking to offset them. Ford is investing more than $11.5 billion in electric vehicles through 2022, aiming
to offer zero emission versions of some of its most popular models, including the Mustang and the F-150. The goal comes as the Trump administration in March rolled back mileage standards for vehicles, significantly decreasing the goals the government sets
for automakers. Ford is one of four companies that has signed an agreement with California to produce vehicles that average 50 miles per gallon by 2026, while the Trump plan asks automakers to reach 40 mpg in the same time frame.” [The Hill,
6/24/20
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How Tesla’s Allure Increases Consumer Readiness For EVs.
According to Clean Technica, “Before we know it, 2020 second quarter results will be
in for automakers. By far, Tesla has been the winner, with stockholders increasing their faith in the all-electric car company and its future. Consumer readiness for EVs is generally dictated by personal experience with EVs, especially positive experience,
and high satisfaction rates seem to be pivotal for EV sales. Earlier this year, the Consumer Reports Owner Satisfaction Survey announced that Tesla is the car brand with the highest owner satisfaction. Yet the JD Power 2020 Q1 Mobility Confidence Index Study
concluded that most aren’t ready for electric vehicles. Can Tesla’s allure on the stock market and on city streets inspire more consumers to take the EV plunge? Of course it can. The bigger question is, how many will feel ready in the coming year? We don’t
know, but let’s explore some of the underlying issues. US transportation accounts for 29% of total energy use per year, and the transportation sector is beginning either a gradual but consistent shift from fossil fuel to electric power or a sharp shift. Forecasts
vary widely, depending on assumptions of how quickly consumers warm to electric vehicles, how strong policies supporting them are, and availability of key materials/supplies. Already, we see gals charging in public garages and wide-eyed teenagers circling
Teslas at shopping malls. The cars are getting out there and getting into mainstream consciousness. More and more people are seeing them at the grocery store, and getting into conversations with happy owners.” [Clean Technica,
6/23/20
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Tesla's Electric Vehicle Competition 'Not A Measurable Threat' Yet, Gene Munster Says.
According to Benzinga, “Thanks to its control of 80% of the U.S. electric vehicle market,
Tesla Inc TSLA has the highest valuation in the auto industry. Rivals are never far off in the rearview mirror, a Tesla expert said this week. ‘For the company’s valuation to advance higher it will need to hold off other automakers as they roll out new EVs
over the next five years,’ Loup Ventures managing partner Gene Munster said in a Monday note. Munster’s Latest Tesla Projections: Munster said he expects Tesla’s domestic share to fall below 25% over the next decade, adding that it will fend off competition
in the near-term. ‘Based on the currently available EV models in the U.S. market, along with the models expected to be released next year, we believe Tesla will exit 2021 with a 70-80% market share,’ he wrote. ‘If we’re correct, Tesla’s economies of scale
will strengthen, making it more difficult for traditional automakers to benefit from the long-term secular shift to electric.’ So far, competitors have failed to introduce a serious threat. Automaker timelines suggest the U.S. EV market could have between
16 and 28 vehicles by the end of 2020 — but few hold a candle to Tesla’s Model 3. ‘The majority of these new models suffer from one of two critical flaws: starting prices above $70,000 and/or ranges below 225 miles,’ Munster wrote. ‘These two flaws rule out
most EVs as mainstream options.’ Only five vehicles currently qualify as ‘mainstream,’ and, in Munster’s view, Tesla’s Model 3 leads the pack with superior software, charging networks and design.” [Benzinga,
6/23/20
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Electric Vehicles
Lyft's 100% EV Strategy Requires A Policy Blitz.
According to Green Biz, “ICYMI, ride-hailing biggie Lyft announced last week that it plans to electrify every single car offering services
on its platform by 2030, including both those that Lyft owns and rents to drivers and ones that its drivers own. It’s a colossal task for an 8-year-old company that says it won’t be profitable until at least 2021 and plans to slash hundreds of millions of
dollars in costs this year. Why will it be so hard? Because the vast majority of cars on the Lyft platform are owned by drivers, many of which drive for less than 10 hours a week for Lyft. So essentially Lyft has to act as a catalyst — using policy, economic
and industry tools — to spur the broader transportation ecosystem to more rapidly adopt zero-emission vehicles. In particular, the unprecedented move will require an unprecedented leap forward in policies that can make electric vehicles affordable and beneficial
for Lyft drivers within the next 10 years. On a media call last week, Elizabeth Sturcken, managing director at the Environmental Defense Fund, put it this way: ‘Lyft is committed to using the most powerful tool we have to fight climate change: policy influence.’
One of Lyft’s strategies will be to work with regulators across city, regional, state and even federal levels to create an environment that reduces the upfront costs of EVs and helps drivers save money fueling them compared to gasoline cars. Lyft already has
tested out creating this kind of environment in a couple of microcosms in the United States.” [Green Biz,
6/24/20
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Lyft Aims For An All-Electric Fleet By 2030—Is That Possible?
According to Scientific American, “When ride-hailing company Lyft Inc. announced last week that it would transition to 100% electric
vehicles by 2030, observers cheered its ambitious commitment to curbing climate pollution. But as analysts dig into the details, some are questioning whether the company can—and will—make good on its promise. ‘It’s a noble commitment. But it needs to be backed
by a plan and financial resources,’ said Michelle Krebs, an analyst at Autotrader. ‘It’s easy to throw out a goal. But you’ve gotta put something behind it to make it happen,’ she added. One worry is that while most Lyft drivers own their own vehicles, the
company doesn’t plan to offer drivers financial support to switch to EVs, which have a higher upfront cost than the gasoline-powered status quo. The average price of a new car in the United States in June 2019 was $36,600, while the average cost of an EV was
$55,600, according to data from Cox Automotive Inc. Over their lifetimes, however, EVs cost less than half as much to operate as gas-powered cars, according to a 2018 study from the University of Michigan’s Transportation Research Institute. If Lyft offered
drivers a financial incentive for going electric, it would go a long way toward lowering the initial cost barrier, said Sam Abuelsamid, an auto analyst with the consultancy Guidehouse LLP. But Abuelsamid said he doesn’t expect the incentive to materialize
anytime soon, given Lyft’s failure to turn a profit thus far. ‘It would be great if they took a more active role in the shift to electrification. Realistically, though, when you look at the financials of these companies, none of these companies make money,’
he said.” [Scientific American, 6/23/20
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‘Welcome To The Age Of Copper’: Why The Coronavirus Pandemic Could Spark A Red Metal Rally.
According to CNBC, “The coronavirus pandemic is set to pave the way for ‘the age of copper,’ according to the director of energy, climate
and resources at Eurasia Group, as governments double down on investments that will drive up demand for the red metal. The commodity, which is widely seen as a bellwether for the general state of the economy, has taken a hit during the coronavirus crisis.
Slumping demand drove prices down at the height of the pandemic in March. However, benchmark copper on the London Metal Exchange was trading around $5,909 per metric ton Tuesday, up 0.5%. That’s close to its five-month high of $5,928 hit earlier this month,
Reuters reported. Eurasia Group’s Henning Gloystein said in a research note on Tuesday that the pandemic is expected to accelerate trends in government-supported environmental investments and digitalization, which ‘heralds a coming boom in copper demand.’
‘Huge green and digital stimulus programs, especially in Asia and Europe, will create the conditions for a boom in copper demand — electric vehicles, 5G networks, and renewable power generation all require large amounts of the red metal,’ Gloystein said. Demand
for copper could fall by as much as 5% in 2020 due to the pandemic-driven recession, he projected. But, widescale fiscal stimulus measures would help drive demand for the metal back to pre-crisis levels next year, he noted, with traders and miners expecting
consumption to rebound by 4% in 2021. Bank of America analysts increased their price forecast for the metal earlier this month, expecting prices to rise 5.4% in 2020 to $5,621 a ton. They kept their projection for 2021 unchanged at $6,250 per ton.” [CNBC,
6/24/20
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Apple's New iOS Courts EV Drivers.
According to Axios, “Apple is adding a feature to its new iOS 14 phone operating system aimed at making easier for EV drivers to find
places to plug in. Driving the news: ‘Electric vehicle routing adds charging stops along a planned route based on current vehicle charge and charger types,’ the company announced. Why it matters: Concerns about running out of battery power — or ‘range anxiety’
— is among the barriers to wider EV adoption. How it works: ‘The company previously only allowed users to route to or from certain chargers in Maps, but now it will be able to include or add chargers to a trip, even on the fly,’ The Verge reports. Their piece
points out that drivers will of course need to find chargers compatible with their vehicle model, and that Apple is initially working with Ford and BMW. Per TechCrunch, an Apple official said more vehicle manufacturers will be added soon.” [Axios,
6/23/20
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Big Players Hunt For EV And Battery Startups.
According to Axios, “Hyundai Motor Group and the battery heavyweight LG Chem are launching a global competition to find and finance
battery and electric vehicle startups. How it works: The ‘EV & Battery Challenge’ aims to identify up to 10 startups to collaborate with and ‘develop proof-of-concept projects while leveraging the sponsors’ technical expertise, resources and laboratories.’
They’re targeting startups in areas including EV charging, power electronics, battery systems and materials, and recycling. The nonprofit group New Energy Nexus, which works with clean energy entrepreneurs, will manage the competition. Why it matters: Monday’s
announcement underscores how auto companies making big investments in EVs know they need better tech and outside help to make it pay off in the increasingly competitive space. Where it stands: Hyundai, which sells cars under its eponymous and Kia brands, and
LG Chem did not say how much funding they plan to provide. Hyundai plans to have 23 EVs in its lineup by 2025 and, per Reuters, LG Chem will be among the suppliers for the models.” [Axios,
6/23/20
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Research And Analysis
We’re Halfway There.
According to Politico, “U.S. gasoline consumption is now more than halfway back to its pre-coronavirus levels, according to a new survey from IHS Markit company OPIS. Fill-ups at the pump were down 49 percent from 2019 volumes during the second week of April
when oil prices tumbled. During the second week of June, however, demand was down 22 percent compared to the same week in 2019, the survey found. ‘Although people talk about ‘demand destruction’, it’s actually been ‘demand contraction’ in response to the economic
shutdown,’ said Daniel Yergin, vice chairman of IHS Markit, in a statement. ‘And now we’re seeing demand ‘uncontracting’ as people get back into their cars.’” [Politico,
6/24/20
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International
UK Electric Buses Boosted By Innovative £20m Battery Deal.
According to The Guardian, “One of Britain’s biggest battery companies has secured a loan to help increase the UK’s electric bus fleet
by taking ownership of the batteries inside scores of UK buses. Zenobe Energy has secured a £20m loan from NatWest to finance enough batteries to power about 100 electric buses owned by private transport firms and councils around the UK. The energy storage
experts will own the bus batteries and lease them to the bus operators as part of a service contract. The contract includes running the electric charging infrastructure at their bus depots and charging the batteries overnight. This novel ownership scheme effectively
splits the ownership of an electric bus between the transport company, which owns the body of the vehicle, and Zenobe, which will own the battery which powers it. The arrangement is already in use in south London, where buses run by Abellio are powered by
batteries owned and operated by Zenobe. Zenobe hopes that by separating the ownership of the battery system from the bus itself transport companies will have fewer concerns about making the leap to electric vehicles, which can involve complex charging infrastructure.
Dividing the financial risk between the bus operator and the battery charging firm also lowers the overall cost of the electric bus, which could help the government support go further in accelerating the uptake of electric buses on UK roads. Nicholas Beatty,
the founder of Zenobe, said the new funding will be crucial in supporting electric buses as transport companies begin to adopt zero-emissions fleets.” [The Guardian,
6/23/20
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Opinion Pieces
Analysis: Tesla's Reluctant Commitment To Cobalt A Warning To Others.
According to Andy Home in Reuters, “Just when his electric vehicle (EV) company Tesla seemed to be pivoting away from using cobalt in its batteries, it signs a long-term supply deal
for the controversial metal with Glencore. This from the man who has vowed to eliminate cobalt from the Tesla product mix because of its financial cost and the reputational cost of a metal associated with child labour and poor safety conditions at artisanal
mining operations in the Democratic Republic of Congo, the world’s dominant producer. Tesla’s not the first auto company to lock in future cobalt supplies with a miner. BMW did the same last year, also with Glencore as well as with the Bou-Azzer mine in Morocco.
But Tesla is the standard-bearer for the EV revolution and its deal with Glencore has strategic significance for the global battery raw materials supply chain. It’s a boost for cobalt’s prospects, both in terms of physical demand and, more importantly, in
the apparent admission that cobalt isn’t going away as a battery material any time soon. It’s also a warning to other auto companies that if they want cobalt, they’re going to have to take control over their own supply chain. Tesla and its battery partner
Panasonic have until now largely used a nickel-cobalt-aluminium (NCA) formula in their lithium-ion batteries. Other automotive companies targeting the passenger vehicle market have adopted nickel-manganese-cobalt (NMC) technology. Everyone has been trying
to reduce the amount of cobalt in the metallic mix. Cobalt is expensive, currently trading around $33,000 per tonne on the London Metal Exchange. It has a history of volatility both in terms of price and supply, which is dominated by production, both official-sector
and artisanal, in the Congo.” [Reuters,
6/23/20 (=)]
Chad Ellwood
Senior Research Associate
Climate Action Campaign
202.448.2877 ext. 119