Dear battery enthusiast,
Welcome to Battery Associates’ March Newsletter. We have summarised some of the month’s most relevant battery news, highlighting technology and research development, and updates from Battery Associates.
Battery Newsletter structure:
Battery Industry Highlights
B.A Editorial
Battery Insiders Podcast
B.A Updates & Events
Battery Industry Highlights
In this section, we have summarised relevant battery news from the past month.
On March 14, the U.S. Department of Energy announced a conditional commitment by the Loan Programs Office (LPO) to Lithium Americas Corp. This commitment aims to support the financing of the construction of a lithium project in Nevada. The project, known as the Thacker Pass Lithium Mine, is expected to produce 40,000 tons of lithium carbonate annually for use in electric vehicle lithium batteries.
B.A Commentary:
Once finalised, the loans will be extended through LPO's Advanced Technology Vehicles Manufacturing (ATVM) Loan Program, designed to bolster domestic manufacturing of advanced technology vehicles, qualifying components, and materials that enhance fuel efficiency. Established under the Energy Independence and Security Act of 2007, this project is also supported by a private equity investment of US $650 million from General Motors, expected to be their long-term lithium carbonate buyer. The ATVM Loan Program has thus far allocated US $8 billion to various projects. Notable recipients of ATVM loans include Nissan, Ford, Tesla, and Ultium Cells.
On March 28, the US Department of Energy announced the selection of 11 projects related to Battery Recycling, Reprocessing, and Battery Collection projects. 4 projects were selected under Topic 1 (Expanding Consumer Participation in Consumer Electronics Battery Recycling Programs), and 7 projects were selected under Topic 2 (Improving the Economics of Recycling Consumer Electronics Batteries). 9 of the projects selected under Topics 1 & 2 received US $54.5 million in funds administered by the Vehicle Technologies Office (VTO) and 6 of the projects selected under Topic 3 (State and Local Programs for Consumer Electronics Battery Collection, Recycling, and Reprocessing) received US $7 million in funds that will be administered by the Office of Manufacturing and Energy Supply Chains (MESC).
B.A Commentary: Last year, in June, the US Department of Energy announced a $125 million funding opportunity for recycling, reprocessing, and battery collection, authorised by the Bipartisan Infrastructure Law, to bolster and secure America’s battery supply chain. The funds mentioned above are provided under this initiative. On February 20, 2024, the DOE reopened applications for Topic 4 (Collection of Used (Spent) Consumer Batteries at Retailers) for a US $15 million fund, with applications due on April 9, 2024. For information on selected projects and their focus areas, refer to this link.
On March 12th, Li-Cycle, a lithium-ion battery recycler, announced securing a US $75 million strategic investment from Glencore, a global natural resource company. Glencore serves as both a battery feedstock partner for Li-Cycle’s Spoke facilities and a prospective supplier of black mass and key reagents for its future Hub facilities.
B.A Commentary: Li-Cycle stated, "We are pleased to secure an additional US $75 million investment from Glencore, following Glencore’s June 2022 investment, to improve our liquidity position while we continue our ongoing comprehensive review process." Glencore had previously invested US $200 million in Li-Cycle in June 2022. Li-Cycle also reported ongoing efforts with the US Department of Energy regarding a conditional commitment for a loan of up to US $375 million. However, the company faced setbacks last year, halting construction on their Rochester Hub project in October 2023 due to rising construction costs.
On March 1, SQM Lithium Ventures announced an additional investment of US $9.43 million in the UK-based clean technology startup, Altilium, which focuses on battery circular economy products. This investment completed Altilium's "Series A" financing round. The company operates a black mass pilot plant in Teesside, UK, and a hydrometallurgy plant in eastern Europe for CAM materials production. Upon completion of its UK facility, it is expected to process 50,000 tons of black mass annually. Additionally, Altilium aims to achieve a production capacity of 30,000 tonnes of CAM per year by 2030, meeting 20% of the UK's cathode active needs.
B.A Commentary: SQM Lithium Ventures is a venture capital initiative by SQM aimed at accelerating innovation in three key areas: Lithium technology, Water Technology, and Electromobility. Focusing on early-stage startups, SQM Lithium Ventures invests through seed funding, Series A, and follow-on investments with a fund size of up to US $40 million. On September 12, 2023, SQM Lithium Ventures invested US $2.57 million in Altilium. Following this initial investment, SQM made an additional US $9.43 million investment in Series A, bringing its total contribution to US $12 million.
On March 21, the European Union (EU) and the Kingdom of Norway signed a Memorandum of Understanding (MoU) to establish a strategic partnership focused on developing sustainable land-based raw materials and battery value chains. This agreement focuses on five key areas: integration of raw materials and batteries value chains; cooperation on research and innovation (R&I); application of high environmental, social, and governance standards and practices; mobilization of financial and investment instruments; and developing necessary skills for high-quality jobs in raw materials and battery sectors.
B.A Commentary: The European Union has signed an agreement with Norway to strengthen the land-based battery raw materials supply chain, excluding materials extracted from the seabed off the coast of Norway. The EU and Norway aim to encourage joint ventures, consortia, special purpose vehicles, and other forms of cooperation among industrial actors, facilitating connections between final users and raw materials suppliers. Additionally, they plan to invest notably in Norwegian battery-related projects under the InvestEU, European Battery Alliance, and European Raw Materials Alliance Frameworks. Following the MoU's signature, the EU and Norway will collaborate with stakeholders to implement the Roadmap for the Partnership. As an initial activity, a business matchmaking event is scheduled during the Hannover Messe on April 22nd.
On March 5, Mitsubishi Corporation (MC) announced its entry into a binding agreement with Frontier Lithium Inc., a Canadian lithium mining company, to establish a joint venture for the development of the PAK Lithium Project in Ontario, Canada. MC has invested CA $25 million in Frontier Lithium Inc. for a 7.5% equity interest, with the option to increase its share to 25% in the future. The JV aims to commence production of premium spodumene concentrates by 2027, followed by battery-grade chemicals by 2030. The mine is projected to have an annual production capacity of 20Kt of lithium carbonate equivalent, enough for nearly 300K electric vehicles, and a mine life exceeding 20 years.
Mitsubishi Corporation invest in Frontier Lithium Inc
B.A Commentary: According to the Pre-Feasibility Study (PFS) for the PAK Lithium Project located in Ontario, Canada, the project is expected to generate a Life of Project Cash Flow (unlevered) totalling US $8.07 billion over its 24-year lifespan. The anticipated Annual Average EBITDA is projected at US $251.3 million. The project has the potential to establish a Chemical plant producing 12,520 tonnes of battery-quality Lithium Hydroxide Monohydrate (LiOH-H2O) per year, along with 7,360 tonnes of battery-quality Lithium Carbonate annually. The expected After-Tax Payback of Capital Expenditures is estimated at 4.9 years after the commencement of commercial operations.
B.A Exclusive summary
The Lithium Rush: Capital Support to Accelerate Lithium Exploration and Processing Capabilities in Americas.
The growing demand for batteries across various applications, including Electric Vehicles (EVs), Battery Energy Storage Systems (BESS), etc., has significantly increased the demand for lithium. Over the past three years, this demand has tripled, reaching approximately 1 million tons in 2023. However, experts predict that the growth rate is expected to moderate in the upcoming years.
According to Benchmark Minerals, in December 2022, the price of Lithium Carbonate (≥99.5% Li2CO3) soared to an all-time high of US $81,375 per tonne. By October 2023, the price had plummeted to US $22,950 per tonne, marking a staggering 71.8% fall from the previous year. Experts attribute this downward trend to the continuous destocking of inventories. Wood Mackenzie anticipates that this destocking trend will persist in 2024, further impacting the lithium industry.Despite the decline in the cost of Lithium Carbonate in the market, the lithium market continues to exhibit growth potential. According to Fortune Battery Insights, the global lithium market was valued at US $22.19 billion in 2023 and is projected to grow from US $26.88 billion in 2024 to US $134.02 billion in 2032.
The increasing demand for lithium and the implementation of critical mineral strategies by Western countries post-COVID have spurred significant lithium exploration projects in the Americas and Europe. Major companies have initiated exploration activities in these regions, and we are now witnessing funding from Original Equipment Manufacturers (OEMs), battery manufacturers, and chemical companies to develop lithium carbonate processing plants.
In March 2024, the U.S. Department of Energy announced a conditional commitment loan of US $2.2 billion to Lithium Americas Corp for its Nevada lithium processing plant. Mitsubishi Corporation revealed a CA $25 million investment in the PAK Lithium Project located in Ontario, Canada. M4E Lithium also announced an investment of US $7.5 million to US $10 million to accelerate Brazilian lithium exploration.
In addition to these recent investments, countries in the Americas such as Argentina and Chile have already attracted a significant amount of foreign investment in their lithium upstream industries. It is anticipated that capital inflows into the lithium upstream industry will continue to increase in the coming years to support global electrification and decarbonization efforts.
EU Battery Regulation Services
Visit our updated EU Battery Regulation Briefings website (batteryregulation.eu).You are able to request an expert call and also access our AI-powered tool to understand the passed EU Battery Regulation. For any additional questions, please do not hesitate to reach out via info@batteryregulation.eu.
Battery Insiders Podcast
Battery Associates Updates & Events
Advanced Battery Power – Battery Power Plant
10 - 11 April 2024
In-Person & Online | Münster
The Advanced Battery Power Conference will feature automotive and energy supply solutions and also offers an excellent platform for companies, research institutes, universities, and individuals to present their work and results in the field of battery technology to a professional audience. Scientists, developers, and engineers from all areas of the battery value-added cycle will meet at the 16th International Advanced Battery Power Conference at the Messe und Congress Centrum Halle Münsterland in Münster. Register here.
Vehicle-to-grid, Vehicle-to-Home & Smart Charging
10 - 11 April 2024
In-Person & Online | Münster
Vehicle-to-grid conference will feature technical and systemic perspectives from industry and business. The conference places five focus topics along the value chain - practical projects, charging infrastructure, vehicles, system integration, and networks. It features selected speakers from important institutions and will provide an opportunity for interactive exchange of business & science. Register here.
Li-Ion Battery Americas 2024
23 - 24 April 2024
In-Person | Las Vegas
Li-ion Battery Americas 2024 is at the forefront of expediting the development of the American EV & Li-ion Battery industry, gathering policy makers, investors, manufacturers, raw materials suppliers, components suppliers, and technical service providers internationally to build business partnerships. Key highlights include inspiring keynote speakers, thought-provoking panel discussions, networking opportunities with industry pioneers, and cutting-edge technology showcases. Be a voice of innovation! If you have valuable insights to share, there's still an opportunity to join the esteemed lineup of speakers. If you are interested in speaking, sign up here. Register now and take advantage of a 10% discount here!
FT Live Future of the Car
7 - 9 May 2024
10th Anniversary Edition
In-Person & Digital | London
The FT Future of the Car Summit returns for its tenth anniversary edition this Spring. Held over three days, the event convenes the most influential players in the automotive sector for newsworthy keynote interviews, lively debates and ample networking opportunities.
Hear from executives from the biggest car companies, CEOs from Peugeot, Nissan, Rivian, SEAT & CUPRA, Bentley Motors, Hyundai, Volkswagen, Mazda and more and connect with investors, tech creators and OEM leaders seeking new partners for future vehicle development.
Key themes will include transitioning to electric and future battery tech, sustainability and alternative fuels and future mobility and evolving supply chains.
Register now and save 20% using code BATTERY!
The Battery Show EU
18 - 20 June 2024
In-Person | Stuttgart
Get ready to meet 930+ industry leading suppliers at The Battery Show Europe and Electric & Hybrid Vehicle Technology Expo Europe, the largest European tradeshow and conference focused on the latest advanced battery and H/EV technology developments.
Join 19,000+ fellow engineers, executives, thought leaders, professionals and decision-makers at the Messe Stuttgart, Germany on 18-20th June, 2024 for three electrifying days, filled with opportunities to source the latest technologies, develop your industry knowledge of key topics and network with like-minded peers.
Register here and get an exclusive 20% discount using code EXH20!
BatteryMBA May Cohort
BatteryMBA’s upcoming cohort runs from May 6 to July 27, 2024! BatteryMBA offers a combination of in-depth technical and business knowledge on a range of battery topics aligned with the sector's dynamic growth. BatteryMBA alumni have affiliations with Tesla, Farasis Energy, JLR, Airbus, Hitachi High-Tech Europe, Schlumberger, Bertrandt Group, AMTE Power, the University of Birmingham, the European Parliament, and many others. Enroll here!
The course consists of an exciting battery case study track (with case studies from leading business schools). If you have any queries, reach out to us via email at info@battery.mba. Need-based scholarships and group discounts are available.
Battery Day 2024
Battery Day 2024 will take place on Thursday, September 26, 2024, featuring panels, deep dive sessions, keynotes, and networking breaks to facilitate up-to-date knowledge of different battery technologies, future chemistries, applications, and market insights from leading battery experts. If you are interested in being involved in the event, please contact info@battery.associates.
Battery Associates services
Battery Associates offers consultancy, innovation, and education services on a wide range of topics. Please get in touch if you're interested in any of our services!
About Battery Associates
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