Dive Brief:

• The White House on Thursday released a “fact sheet” adding detail to President Joe Biden’s plan to accelerate the adoption of electric vehicles (EV), including new funding and research partnerships and providing guidance on how existing federal grant programs can be used by states to install charging infrastructure.
• Biden’s American Jobs Plan includes $174 billion for EV investments, including chargers and vehicle purchase incentives. Policy experts say much of that proposed spending will need to be authorized by lawmakers, but on Thursday the administration highlighted more than a dozen programs with $41.9 billion in federal grant funding available now and which could be applied to EV infrastructure buildout.
• “Identifying resources that exist now can get the ball rolling on this,” said Samantha Houston, senior vehicles analyst in the Union of Concerned Scientists’ Clean Transportation Program. “There is a lot of great stuff in the fact sheet.”

Dive Insight:

Federal lawmakers are working to translate Biden’s jobs plan into an infrastructure bill that will help to revitalize and decarbonize the United States’ economy. While that legislation is being developed, experts say it is important that existing funding opportunities be tapped in order to begin making immediate progress on transportation electrification.

“It’s really encouraging to see federal leadership on EVs and charging infrastructure. We need it right now to succeed in this rapid transition to electric transportation,” Houston said. “That is the direction the market is going anyway, but we need to get there as quickly as we can.”

“Electric mobility is currently in a similar place where renewable energy was a few years ago; trending upwards yet not widespread,” ENGIE Impact CEO Mathias Lelièvre said in an email, adding he is “encouraged” by the president’s proposal. ENGIE assists companies and governments in setting and meeting climate targets.

The transportation sector is the United States’ largest contributor to greenhouse gas emissions, and in order to decarbonize it and the rest of the economy by 2050 Biden is aiming to electrify much of the U.S. vehicle fleet — and bring the power sector to 100% carbon-free by 2035. His administration’s new report finds that building 500,000 new public EV chargers is “a key strategy” for reducing emissions.

The report concludes federal funding for EV charging infrastructure on U.S. highways is available through 15 programs.

Those could be used to build chargers, support workforce training and integrate EVs into public transportation systems and freight, the report said. But DOT also warned that “many of these programs are oversubscribed, and EV charging infrastructure competes with many other types of eligible projects.”

“The American Jobs Plan would provide dedicated funding for EV charging infrastructure,” DOT said.

The National Highway Performance Program, for instance, has a Fiscal Year 2021 budget of $23.1 billion and the Surface Transportation Block Grant Program was funded at $10.2 billion. Each could be accessed to construct chargers and support training related to EVs, DOT said.

The U.S. Department of Energy also announced new research funding opportunities, including $10 million to reduce the cost of direct current fast charging equipment and $20 million for community-based public-private partnerships that support charging infrastructure and share data.

DOE has also marked $4 million aimed at boosting workplace charging. And the Idaho National Laboratory will partner with automakers to analyze anonymous vehicle charging data “that describe market-level trends of operation and charging behavior for a large sample of U.S. consumer EVs.”

The White House also announced early progress on its goal to electrify the federal vehicle fleet, saying the Council on Environmental Quality and the General Services Administration “are on track to triple the number of total [zero emissions vehicles] added to the fleet this year compared to last.”

The United States and Canada have also agreed to work jointly “to identify a pathway to net-zero supply chains” for the countries’ buildings and zero-emissions vehicle fleets. The U.S. federal government has a fleet of about 650,000 vehicles, and experts say the shift to all-electric will require an early focus on charging.

Transitioning the federal fleet will require building EV infrastructure on federal property, said Lelièvre, which will ultimately benefit not just the federal fleet but also visitors and contractors who are on federal grounds.

“Working on this EV infrastructure is something the government can do immediately, while the fleet itself will take some more time to change,” Lelièvre said.

Charging infrastructure at federal facilities is “a really critical complement to this commitment,” said Houston.

House Speaker Nancy Pelosi, D-Calif., has targeted July 4 to finalize a $2 trillion infrastructure bill, and those efforts may focus around H.R. 2, the infrastructure bill passed by Democrats in July. However, Republicans have released a competing — and dramatically smaller — infrastructure proposal that would spend just $568 billion and does not include funds for EV infrastructure and incentives, or other power grid investments.

It appears the age of all-electric vehicles is upon us.

President Joe Biden is proposing $174 billion in spending to boost the electric vehicle market, and he wants incentives for state and local governments to build electric vehicle charging stations to power those new cars. Gov. Charlie Baker’s plan to cut greenhouse gas emissions also mandates that all new cars sold in the state be electric by 2035.

But as desirable as those goals may be, are they realistically achievable?

Scott Shepard, principal research analyst for the technology consulting firm GuideHouse, has no doubt about it.

“It is going to happen,” he said. “It is not pie in the sky. And some of the reasons why it’s going to happen have to do with the momentum the technology has.”

Shepard cited dramatic technological improvements that are removing the barriers to consumer acceptance. The principal ones have been cost and what’s know as “range anxiety,” or the fear of running out of juice with no outlet in sight.

His research shows that over 5 years, the cost of battery-powered electric vehicles has declined by 30% while the distance they can travel without needing a recharge has grown by 40%.

A study done by another consulting firm showed a dramatic increase in consumer sentiment for electric vehicles. In the spring of 2020, 34% of respondents to an Oliver Wyman survey said they would be willing to buy one. In March 2021, that figure shot up to 51%.

Scott Smith of Holliston began looking at electric vehicles 10 years ago. But the Nissan Leaf he was considering could travel only about 70 miles before needing a recharge. Plus, his wife really didn’t like the unusual look of the little car. But as he saw the improvements being made in electric vehicle development and design, he took another look — and finally took the plunge three years ago.

Guy Bedeau, the Milford Nissan salesman who sold Smith his electric car, said he sold very few electric vehicles when he first started working 10 years ago. But that all changed thanks to Elon Musk.

”Tesla … captured the imagination of a lot of people in a way that a traditional battery powered car didn’t,” he said.

Teslas now make up about 80% of all electric vehicles registered in the U.S. But the cars are still expensive, which is why rebates have been essential in jump starting the transition to electric.

Smith was offered a generous dealer discount of $10,000 and rebates totaling another $10,000 — $2,500 from the state and another $7,500 from the federal government. What would have been a $40,000 purchase ended up costing him just $20,000. That convinced him it was a good deal.

Paulina Muratore of the Union of Concerned Scientists supports rebates but said they should be offered at point of sale rather than making buyers wait months for the money. She also believes they should be extended to used electric vehicles, which would make them more affordable for lower-income buyers.

Given all the improvements, the stars seem aligned for an electric vehicle revolution. Favorable government policies, improving battery technology, pricing incentives, a wider choice of vehicle types and higher gas prices will all drive the change.

And then there’s the word of mouth endorsements from enthusiastic owners like Smith, who has enjoyed three trouble-free years with his Nissan Leaf.

“I tell people all the time, the minute you drive an electric vehicle and you get back into your fossil fuel burner, it’s a night and day difference,” he said. “I just think the adoption is going to accelerate massively, because it just makes sense.”

KNOXVILLE, Tenn. (WATE) — With the news that a Tesla service center will open at West Town Mall, WATE 6 On Your Side took a deeper dive on what owning or renting an electric vehicle is like.

For example, what you need to charge one, and where you’ll be able to plug one in on long road trips.

More and more automakers, like Volkswagen, are starting to roll electric vehicles off of the assembly line, and others like General Motors say they are preparing for an all-electric future.

Whether you get behind the wheel of an electric VW or a Tesla, charging a battery powered vehicle is really as simple as plugging it in.

Tesla recommends buying a wall connector for faster charging times, but the company’s website says that an adapter for a normal wall outlet is included with all new cars.

As for long road trips, back in February the TVA signed an agreement to fund a network of fast charging stations every 50 miles along Tennessee interstate and major highways. We’re told the undertaking will triple the existing fast charging network.

But what if you have family in Texas or have vacation plans in Florida? In addition to TVA, five other major utilities are all working together to make sure drivers of electric vehicles have access to a seamless network of charging stations from the Atlantic coast through the midwest and south and into the Gulf region and central plains.

TVA expects to see well over 200,000 electric vehicles in the Tennessee Valley by the year 2028.

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DETROIT — Charged up by strong sales of its electric cars and SUVs, Tesla on Monday posted its seventh-straight profitable quarter.

The company made $438 million in the three-month period that ended March 31, as sales more than doubled the same period last year to nearly 185,000 vehicles. All but 2,000 of the sales were lower-priced Model 3 sedans and Model Y SUVs. Tesla said it didn’t produce any of its higher priced Model S sedans and Model X SUVs as it switched to new versions during the quarter.

The Palo Alto, California, company faces challenges as it tries to reach its second-straight annual profit this year. There’s a global shortage of semiconductors that’s forcing automakers to idle factories, and Tesla is facing renewed scrutiny of its Autopilot partially automated driving system after two men died in a crash earlier this month near Houston.

Excluding stock-based compensation and non-recurring items, Tesla made 93 cents per share. That beat Wall Street estimates of 75 cents per share, according analysts polled by data provider FactSet. First-quarter revenue rose 74% to $10.39 billion, but it was just shy of the $10.48 billion expected by analysts.

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Once again the company needed regulatory credits purchased by other automakers in order to make a profit. Without $518 million in credits for the quarter, Tesla would have lost money. Other automakers buy the credits when they can’t meet emissions and fuel economy standards.

Tesla said adjusted net income, excluding stock-based compensation, passed $1 billion for the first time in company history.

The company, which also makes solar panels and batteries, made only $16 million in the first quarter of 2020.

Tesla, which now has the sixth-largest market value of all companies in the S&P 500 at $708.56 billion, saw its shares fall about 2% in extended trading Monday. The company released numbers just after the markets closed.

The company’s cash position fell by $2.24 billion in the quarter to $17.14 billion, due mainly to $1.2 billion in bitcoin purchases and another $1.2 billion in debt and finance lease payments, offset by $293 million in free cash flow. Tesla said it has sufficient liquidity to fund its new products and factory growth.

CEO Elon Musk got $299 million during the quarter for hitting market value and operational milestones, the company said.

Tesla said that over a “multi-year horizon,” it expects vehicle deliveries to grow on average by 50% per year, with some years, like 2021 growing faster than others.

“The rate of growth will depend on our equipment capacity, operational efficiency and capacity and stability of the supply chain,” the company said in its quarterly letter to investors.

Factories in Berlin and Austin, Texas, are on track to start producing this year, and the company said production of its Semi will start in 2021. Also, first deliveries of the new Model S should start shortly.

The company said that ultimately it will use only cameras as sensors for its fully autonomous driving system, making radar unnecessary. Critics have said that even with radar Tesla doesn’t have the proper sensors needed for safe autonomous driving.

Two federal agencies are investigating the fiery Tesla crash earlier this month in Spring, Texas, in which two men were killed and no driver found behind the wheel.

Local authorities said one man was found in the passenger seat, while another was in the back. They’re issuing search warrants in the probe, which will determine whether the Tesla’s Autopilot partially automated system was in use. Autopilot can keep a car centered in its lane, keep a distance from cars in front of it, and can even change lanes automatically in some circumstances.

Last week Musk wrote on Twitter that data logs “recovered so far” show the Tesla in the Texas crash did not have Autopilot turned on, and “Full Self-Driving” was not purchased for the vehicle. The company has said despite the name Autopilot, it is a driver-assist system and drivers must be ready to take over at any moment.

The National Highway Traffic Safety Administration and the National Transportation Safety board sent teams to investigate the April 17 crash on a residential road.

Critics have said that Tesla’s system for monitoring drivers to make sure they’re paying attention is easily fooled. Consumer Reports was able to trick a Tesla into driving on Autopilot with no one in the driver’s seat.

Electric vehicles (EVs) are a small but growing segment of the automobile market as consumers look for alternatives to fossil fuel use. But how can you charge an EV overnight if you don’t have a garage where you can plug it in? Researchers at Missouri S&T used machine learning to help Kansas City planners prepare to expand the availability of EV charging stations in neighborhoods where many apartment dwellers lack places to charge their cars.

“We wanted to locate the charging stations at streetlights so people who use on-street parking would have access,” says Dr. Xianbiao (XB) Hu, assistant professor of civil, architectural and environmental engineering at Missouri S&T. “We used city planning data including traffic volume and speed, density of land use and data from existing charging stations to see how and when they were used.”

Hu and his Ph.D. student, Chris Yang Song, used the data to develop machine-learning models to identify potential charging station locations. They also compared the locations to points of interest on Google maps to locate the charging stations near apartment buildings, shopping malls, restaurants, coffee shops and other areas where people park their vehicles. Based on the information, the team picked the top 300 locations.

Hu says the National Renewable Energy Laboratory (NREL) then took the S&T data and compared it with NREL maps to choose locations that would provide access for drivers who typically lack easy access to EV charging stations.

The list was further narrowed by Kansas City planners and the nonprofit Metropolitan Energy Center, which is leading the project. Hu says the city determined that some streetlights would not be good locations for charging stations because they lacked on-street parking or because of some other obstacle. The city plans to hold public hearings and narrow the list of potential charging locations to about 60. Hu says the city plans to install between 30 and 60 charging stations.

The project is supported by a $1.2 million grant from the U.S. Department of Energy. Hu says their work to this point is the first step in the three-year project. Next comes charging-station installation and public hearings, and in year three, Hu and his team will collect the data from the charging stations and compare the data with their predictions from the beginning of the project. He says the Kansas City project could expand to other cities.

“Most of the research we’re developing for this project could be very easily transferred to another city,” Hu says.

About Missouri University of Science and Technology

Missouri University of Science and Technology (Missouri S&T) is a STEM-focused research university of over 7,600 students and part of the four-campus University of Missouri System. Located in Rolla, Missouri, Missouri S&T offers 99 different degree programs in 40 areas of study and is ranked by CollegeFactual as the best public university to study engineering. For more information about Missouri S&T, visit www.mst.edu.

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Supply Chain Issues

By Jon Lynch, CME Group

AT A GLANCE

• Electric vehicles use more than double the copper of an internal combustion engine automobile, and the metal is also used heavily in EV infrastructure
• Sales of electric and hybrid vehicles in the U.S., Europe and China have increased for each of the last 10 years

The acceleration towards lowering carbon output through alternative energy sources has become a top priority around the world, particularly in the transportation sector. The Biden administration is set to introduce a green infrastructure and clean energy plan which was initially estimated at $3 trillion.  First revealed last year, the plan is likely to include upgrades to municipal transit networks, expansion of broadband/wireless broadband to all Americans, as well as investment in electric vehicle infrastructure.

In the U.K., Prime Minister Boris Johnson announced plans to stop the sale of new diesel and gasoline vehicles by 2030. Many other nations are embracing the drive towards electric vehicle use as well.  Germany recently unveiled a 130 billion euro recovery budget, which specifically includes subsidies for buyers of battery powered vehicles while no funds were allocated towards combustion engine vehicles.  Israel has announced they will also phase out fossil-fuel vehicles by 2030, while China announced a similar plan by 2035.  Meanwhile, Norway plans to remove traditional gasoline powered vehicles from the road by 2025.

With forecasts of increased electric vehicle (EV) adoption,  all eyes are on the battery metals of Cobalt, Lithium and Nickel. However, the role to be played by copper in this push for a green recovery should not be underestimated.  Not only is copper used within vehicle production but is also intrinsic in the various elements of EV infrastructure.

^{Source: Copperalliance.org, Aluminum.org, Worldsteel.org, Mining.com, Silverinstitute.org}

Copper Use in Hybrid and Electric Vehicles

Conductivity of pure copper is second only to silver.  With the advent of hybrid and battery electric vehicles, the amount of copper wiring used to power an automobile has increased.  There are generally three types of electric vehicles, each requiring more copper than a traditional internal combustion vehicle.

Hybrid Electric vehicles utilize a gasoline engine and electric motor which work simultaneously to increase fuel efficiency.  The gasoline engine also charges the battery that powers the electric motor.

Plug-in Hybrid Electric vehicles (PHEV) operate primarily on the electric motor, using the gasoline engine purely as a back-up once the battery has run out of power.  In order to recharge the battery, the PHEV must be plugged in.

A Battery Electric vehicle (BEV) runs completely on a battery powered electric motor and requires charging.

Automobile Sales Trends

Total auto sales in the United States have been between 14 million and 18 million per year since 2012 and have decreased each year for the past 3 years.    Sales of PHEVs and BEVs, however have shown exponential growth since first being introduced in 2010.

^{Source: IEA.org, Statista.com}

Similar trends have been seen in Europe…

^{Source: IEA.org, Statista.com}

…and in China as well.

^{Source IEA.org, Statista.com}

Total global sales of BEVs and PHEVs reached over 3.2 million in 2020 representing over 5% of all auto sales worldwide. 

^{Source: IEA.org, Statista.com}

Conservatively, an equal amount of PHEV (132 lbs.) and BEV (183 lbs.) sales would equate to an additional 345 million pounds of copper needed over traditional combustion engine vehicles (51 lbs.), for vehicles sold in 2020 alone.  BloombergNEF is forecasting global sales of EVs to eclipse 54 million by 2040, representing more than 50% of total auto sales. 

Charging Stations

Additional EV demand for copper lies with the source of their power, the charging station.  While the charger itself does not have much copper in it, the wires used to connect the charger to the electrical panel as well as the charging cable itself are the main sources of copper.  Wood Mackenzie estimates by 2030, there will be over 20 million EV charging points globally, consuming 250% more copper than in 2019.

Copper Supply

According to the U.S. Geological Survey (USGS), 2019, global copper reserves are estimated at 830 million metric tons, with annual demand being 28 million metric tons.  In addition, discovered and undiscovered deposits based on geological surveys, including reserves, total over 5 billion metric tons (USGS, 2014, 2017). Take into account that copper is 100% recyclable and it is safe to say that there is currently enough copper to meet EV demand.

Hedging Electric Vehicles

As electrification of the auto industry accelerates, demand for the metals that enable the shift from traditional combustion engine vehicles to electric vehicles increases.  Whether it’s copper for wiring and cables, steel and aluminum for engine blocks or chassis, or lithium and cobalt for battery components, futures markets exist to hedge exposure to market fluctuations.

That’s important because if the forecasts are correct, demand for these metals will increase in the coming years. Copper especially could see changing demand cycles as housing and infrastructure booms and busts take shape at the same time the world demands

Read more articles like this at OpenMarkets

MANKATO, Minn. — Joe Sullivan drives a Tesla Model 3 and is one of the growing number of Mankato residents who has an electric vehicle.

Sullivan, a member of the the Minnesota Public Utilities Commission, said he bought his EV two years ago because it’s practical and could be a research project for him to study the benefits and drawbacks of having an electric car.

The electric vehicle market had more barriers five years ago. But a rise in charging station infrastructure and a decline in costs are spurring an increase in electric vehicle ownership in the area.

Local dealers report an increase in interest in electric vehicles. Some auto manufacturers have pledged to make their fleet all electric, increasing the availability of the vehicles on the market.

There’s been a push from state agencies and legislators to increase accessibility to electric vehicles because transportation is one of the biggest sources of greenhouse gas emissions in the state, the Mankato Free Press reported.

But even as EVs become more popular, some disadvantages remain — including high upfront costs and a continued need for more infrastructure such as accessible charging stations. Experts say some of those issues will diminish as the market grows.

“As battery and upfront costs come down and as more infrastructure develops, these vehicles are going to take over,” Sullivan said. “The advantages are so clear.”

Electric vehicles make up a small part of the auto market. About 2,800 electric vehicles were purchased in Minnesota in 2018, making up 1.14% of auto sales in the state that year according to EVadoption, an electric car research organization.

The electric vehicle market is growing, though, with EV sales in the state doubling from 2017 to 2018.

General Motors, one of the largest auto manufacturers in the country, announced in January its plan to sell only electric light duty vehicles by 2035. Other auto manufacturers are also working to increase their electric vehicle fleet.

The Minnesota Pollution Control Agency is in the process of adopting a rule that would require auto manufacturers to deliver more vehicles with zero tailpipe emissions, like EVs, for sale in the state, increasing each year. An administrative law judge is in the process of writing a report on the rule based on public feedback. If the judge approves the plan, the regulations would go into effect in January 2024.

A Climate and Energy omnibus bill moving through the state Legislature includes investments for the electric vehicle market, including funding for charging stations and rebates for EV purchases.

Hunter Ellis, a sales consultant for Mankato Volkswagen, has seen an uptick in demand for electric vehicles but said that inventory hasn’t caught up yet.

Ellis specializes in Volkswagen’s ID.4, an SUV that is the first global all-electric vehicle from the company. There are demos of the vehicle at Mankato Volkswagen, but the dealership won’t have the vehicle for sale on the lot until next year. Ellis said there is already interest in the vehicle, with five to 10 customers having submitted orders or are in the process of doing so.

He anticipates even more interest once the vehicle is available locally. “Demand is going to continue as infrastructure grows,” he said.

A barrier to the EV market for many is that these vehicles are often more expensive to purchase than gasoline-powered cars. While federal tax credits can help bring costs down, EVs can still have higher initial costs.

A 2021 Tesla Model S carries a starting price tag of $78,490. The cost of a new 2021 Chevrolet Bolt starts at $36,500.

Ellis said prices will go down as vehicles become more readily available on the market and that some companies, such as Volkswagen, are working to make their EVs more affordable.

Despite the upfront costs of buying an electric vehicle, local EV owners say the vehicles are cheaper than gas-powered cars over the long term because they are low maintenance and charging is less expensive than gas.

Sullivan estimates it costs about $4 to $5 to fully charge his Tesla. He also has had the vehicle for two years and has never had to bring it to a shop.

“From an operation and maintenance perspective, it doesn’t break,” he said of his vehicle.

A Consumer Reports study found maintenance and repair costs for EVs are about half of the costs of a gas-powered vehicle, which require regular oil changes and are more mechanically complex.

There are 80 electric vehicles and 71 hybrid vehicles registered in Blue Earth and Nicollet County, according to the Minnesota Department of Transportation, which tracks electric vehicle ownership in the state. Hybrid vehicles run on electricity and gasoline.

Charging-station infrastructure has been popping up in the community in the last few years at places such as the Children’s Museum of Southern Minnesota and Goodwill. Tesla plans to install chargers at Target later this year.

Local EV owners say the growing number of charging stations has made it easier to have an electric vehicle, especially the increase in Level 3 chargers that can typically charge a vehicle in less than an hour. A shortcoming infrastructure-wise is that many available charging stations are Level 2, which can take four to 12 hours to fully charge a vehicle.

Lee Tesdell, a professor at Minnesota State University, drives a Chevrolet Bolt EV and commutes to work from Iowa. He was able to buy an EV in 2018 partly because he could charge his vehicle at MSU while he works.

“This is a perfect commuting car,” he said.

Geoff Roise of Lindsay Windows can usually drive to the Twin Cities and back in his Tesla without having to charge his vehicle. If he does need a charge, he said, there are Tesla superchargers he can stop at to get a quick charge.

As infrastructure develops, Sullivan hopes to see more visibility around these chargers. When driving a gas-powered vehicle, he said it’s easy to feel safe because you know there are gas stations everywhere and they are easy to spot.

To him, driving an EV can sometimes feel like being out in the middle of the ocean because there aren’t always charging stations nearby and not much visibility of where the stations are. There is a lot more planning that goes into taking a road trip in his vehicle because he has to make sure charging stations are available that can help him get to his destination.

“I need the infrastructure built to make me feel safe,” he said.

Ellis, of Mankato Volkswagen, said the fear of not having enough charge to get from point A to B, or range anxiety, is a big reservation people have around entering the EV market.

“There are actually more charging stations than people think,” he said. “We just don’t always see them.”

Charging infrastructure continues to develop. The MPCA and various companies have been installing charging stations around the state. The bill going through the Legislature includes $4 million in funding for charging stations.

To combat the lack of visibility around EV infrastructure, apps and online forums are available for people to share resources.

“There is a very useful online ecosystem of EV drivers who share information,” Tesdell said. He uses an app called PlugShare that helps users find nearby charging stations. Users can also leave comments to help others know if a charging station is out of commission.

“I see we are entering a new era where EVs aren’t all that weird and strange anymore,” Tesdell said. “I think we are going to see a lot more of them.”

In a new video, CNBC details how Tesla’s battery mastermind is solving the largest problem that EVs have. The video starts out with thousands of plastic bags filled with batteries. These batteries come from EVs, phones, scooters, laptops, and other electronic devices. Since these batteries are both flammable and toxic, it’s critical that they don’t end up in landfills. And it would be a waste if they did — after all, the batteries still have materials that are “as good as new.”

JB Straubel, a Tesla co-founder and its former Chief Technological Officer for many years, started Redwood Materials in 2017. He sat down in an interview with CNBC to talk about the importance of battery recycling and shared an inside look at the first Redwood Materials recycling facility, which is in Carson City, Nevada. Straubel pointed out why the materials from old batteries are still as good as new.

“Batteries are amazing that way because the metals in the critical materials inside of them are very highly recyclable. We recover 95–98% of many of those critical materials like nickel and cobalt and copper. Essentially all of those metals are able to go back straight into reuse again and again.”

Straubel was the mastermind behind many of Tesla’s core technologies, especially those centered around battery technology. Although he started Redwood Materials in 2017, he didn’t leave Tesla until 2019. Eventually, though, he decided he wanted to put all of his focus into battery recycling. CNBC noted that Redwood Materials is already recycling tons of batteries and sending some of the recovered materials to Panasonic so it can put them right back into Tesla electric cars.

Celina Mikolajczak, the Vice President of Battery Technology at Panasonic Energy North America, also shared her thoughts in the interview. “We can’t just take all these really great minerals and just dump them. That would be criminal. I mean, we have to reuse them.”

Straubel spoke about why he started Redwood Materials. “We started this, you know, because I saw this looming problem from the end-of-life vehicles that we were creating and starting to have a deep appreciation back then for the scale of what was coming and the fact that, you know, I didn’t see anyone else getting ready for the scale of that problem. The sheer magnitude of the waste and scrap problem and the magnitude of batteries that need to get recycled is, I think, shocking to most people. There’s, I think, a really exciting opportunity to link the recycling and solving the end of life problem with the supply chain solution, bringing more materials back into the feedstock so it doesn’t bottleneck battery production.”

The demand for lithium-ion batteries is expected to grow from $44.2 billion last year to $94.4 billion by 2025, the video narrator noted. (Some of us think it will grow much faster.) This is is mostly due to the increased adoption and demand for electric vehicles.

Phil LeBeau, who interviewed Straubel, asked if there were enough materials to build all the EV batteries that are going to be required and Straubel replied, “Frankly, no. Not right this second. We don’t have enough materials in the supply chain to build everything today. So growth has to happen in the supply chain for all these vehicles. A lot more of that investment has to find its way to the top of the food chain to figure out where these materials will come from — investing in new mines, refining, and recycling.”

Mikolajczak also added her thoughts to this question. “We look at the materials that are in cells. These are metals that are very durable. And we took a lot of effort to get them out of the ground. It’s not like we have excess supply lying around that we can just pull to make cells from. Our excess supply is in the cells that have basically come to end of life and are ready for recycling. So we would be really foolish if we didn’t take advantage of the capacity of older cells to create the next generation.”

Panasonic produces 2 billion battery cells annually out of the Tesla Gigafactory in Nevada. Allan Swan, President at Panasonic Energy North America, added his thoughts. He noted that Giga Nevada’s battery cells just supply the Model 3 and Model Y (and not all of their global battery supply), and “we need somewhere between 20–25 of these all over the world. But particularly here in the United States, we certainly need at least 4 or 5 or 6 of these factories to support the wide automotive industry.”

Not many people think about the effort that goes into making batteries. Not only are the metals such as cobalt, nickel, and lithium mined from all over the world, but the raw materials travel over 20,000 nautical miles from the mine to the automaker — they have to be processed, put into cells, and put into battery packs. This supply chain is far from sustainable.

“Recycling has a very big role to play in the sustainability of electric vehicles themselves,” said Ram Chandrasekaran, Transportation and Mobility Principal Analyst at Wood Mackenzie. “One of the biggest sources of CO2 from an electric vehicle is from the mining and manufacturing side of battery packs. Mining for lithium is not a very CO2-friendly activity, so there will be a time where recycling of batteries for the metals that it needs is going to be a strong factor in helping EVs achieve carbon neutrality.”

The video pointed out the details of how those materials get to Tesla. They are mined in countries such as South America and then sent to China to be refined. Then sent to Tesla’s Giga Nevada for cell production at Panasonic. It also shared that another challenge looming in the near future for materials like lithium, nickel, cobalt, and copper is a significant shortage.

LeBeau asked whether or not current demand is outstripping supply five years down the road and Straubel agreed that this was correct, then elaborated on how worried he was about it. “I am pretty worried that this could become a bottleneck to electrifying everything that people are hoping to do. I think it’s going to be a bit painful when all of these factories try and ramp at the same time, and recycling and being able to efficiently reuse those materials can relieve some of the burden on the need for new mines or finding new resources.”

Straubel also touched upon the cost of EVs. “The cost of electric vehicles is dropping, but it’s still dominated by the cost of the battery. And within the battery, the biggest cost is the materials. It’s a fairly direct link to say that the way to reduce further the cost of EVs so that more and more people can afford them is to figure out how we attack that material cost inside the lithium-ion battery. And as the demand for electric cars continues to grow, it’s going to put more stress on those commodity markets. But our goal is to find a way to decouple that and provide those materials for use at a lower cost.”

You can watch the full interview here.