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| Presented By League of Conservation Voters |
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| Axios Generate |
| By Ben Geman and Andrew Freedman · Sep 14, 2022 |
| 🐪 Halfway there! Today's newsletter has a Smart Brevity count of 1,154 words, 4.5 minutes. 👀 Today: join Andrew at 12:30pm ET for a virtual event exploring what the new climate law means for corporate policies. Register. 🎶 47 years ago, funk and soul legends the Isley Brothers led Billboard's album chart with "The Heat Is On," which provides today's intro tune... |
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| 1 big thing: Forging a link in the battery supply chain |
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| Illustration: Annelise Capossela/Axios |
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| U.S. Strategic Metals plans to invest in commercial-scale manufacturing of precursor cathode active material, or PCAM, a key ingredient for batteries used in electric cars and energy storage projects, Ben writes. Driving the news: The battery materials production and recycling company is today announcing that it will break ground on a pilot-scale PCAM plant later this month. But company officials tell Axios they've already decided the market is favorable for investing in large-scale production, and have lined up private investment. - However, the plan also rests on tapping federal support — they're seeking Energy Department grant funding and also eyeing an application with the department's loan programs office.
Catch up fast: The Missouri company says its plan was in the works before the passage of the new climate law. But the just-enacted statute is speeding up or prompting new projects for batteries, components, raw materials and more. - It ties expanded tax credits for buying EVs to requirements that automakers source batteries and their components domestically or from free-trade partners.
- "This will help us to expedite because the end-users are motivated as well," CEO Stacy W. Hastie said of the new law.
- Right now China dominates big parts of the battery supply chain, including processing of cobalt and other minerals, a business line U.S. Strategic Metals is also investing in.
Hastie, in an interview, said discussions with automakers and battery companies showed that the market will be there. - The company has already had talks with those industries about both sales and receiving batteries for recycling.
- The commercial-scale PCAM plant would represent an investment of hundreds of millions of dollars, company officials tell Axios.
- The goal is eventually to make enough PCAM to supply 2 million electric cars per year.
How it works: U.S. Strategic Metals (USSM) already has a pilot processing plant for critical minerals, with a commercial-scale facility under construction that's slated to begin operations this year. - The combination of that facility and the PCAM plant will "close the loop" on production in the U.S., the company said.
- They're claiming to help the domestic supply chain by "creating an end-to-end battery materials pipeline here in the United States."
Zoom in: USSM, via subsidiary Missouri Cobalt, also owns land and mineral rights including a former lead mine being remediated. - They're tapping waste tailings that are already providing cobalt and nickel.
- They also have the ability to re-mine the site to access cobalt and nickel, in addition to getting materials from recycled batteries and tailings, they said.
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| 2. The energy stakes of the looming rail strike |
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| Illustration: Allie Carl/Axios |
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| A work stoppage at major freight railways would snarl transport of motors fuels and coal, putting upward pressure on energy costs, industry officials and analysts warn, Ben writes. Catch up fast: Big railways including BNSF, Union Pacific and CSX, and unions face a Friday deadline when a "cooling off period" runs out and workers could strike or be locked out. Why it matters: Rail carries about 15% of crude oil and refined products in the U.S., per S&P Global Commodity Insights. - "We have close to record low inventories of gasoline and diesel in the U.S. right now. Rail is necessary to keep inventory balanced," analyst Debnil Chowdhury said in a note.
- The American Fuel & Petrochemical Manufacturers, in a letter to congressional leaders this week, said a strike could spur production cuts at refineries that would deplete supplies and push up prices.
What's next: The oil industry groups are calling on Congress to step into the fray to avert a strike. - The American Petroleum Institute, in a letter to key lawmakers, said Congress may need to step in to "prevent catastrophic disruptions to the freight rail network."
- They say Congress has several options, including the power to extend the cooling-off period and moving parties into binding arbitration.
Go deeper: The Washington Post has an explainer on the dispute. |
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| 3. EU boss eyes $140 billion levy to ease burdens |
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| Illustration: Aïda Amer/Axios |
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| European Commission President Ursula von der Leyen said a cap on revenues of power companies making huge profits during the bloc's energy crisis could yield $140 billion to "cushion the blow," Ben writes. Why it matters: Her annual state of the union speech this morning provides the state of play about simmering proposals to aid consumers and businesses as member states grapple with high gas and power costs. Driving the news: Member states have already invested billions of euros to aid vulnerable households, but this won't be enough, she said. - "This is why we are proposing a cap on the revenues of companies that produce electricity at a low cost."
- She also said major oil, gas and coal companies "have to pay a fair share" via a "crisis contribution."
The big picture: The comments on temporary measures come as officials are eyeing wider market reforms that von der Leyen also promoted in the speech. A combination of forces has sent the bloc into an energy crisis as it grapples with greatly reduced Russian gas flows, heat waves, drought and more. What's next: "With contentious [Russian] gas price caps off the table — at least, for now — diplomats from some states were optimistic that deals could be struck at a meeting of EU energy ministers on Sept. 30," Reuters reports. |
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| A message from League of Conservation Voters |
| President Biden just delivered a huge climate victory |
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| Now it's time to move forward with a supercharged transition to clean energy. ConocoPhillips' dirty and dangerous Willow project in America's Arctic threatens to take us backward. President Biden needs to say no to Willow and keep moving us forward. Learn more. |
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| 4. Energy costs ease despite inflation's march |
 Data: Bureau of Labor Statistics; Chart: Simran Parwani/Axios The steep drop in energy prices held down U.S. inflation but wasn't enough to banish it, Ben and Axios' Courtenay Brown report. Driving the news: Overall energy prices remain sharply up on the year, but have eased since gasoline peaked around an average of $5 per gallon in June. The current national average is $3.70 per gallon, per AAA. Zoom in: Costs for shelter and food continued to jump, per Labor Department data. - Overall consumer prices rose 0.1% last month — after dropping to zero in July — and are up 8.3% over the past year.
- That compares to the 8.5% year-over-year figure reported in July.
Read more. |
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| 5. 🏃🏽♀️Catch up fast on tech: Meta and TeraWatt |
| Facebook parent Meta, the storage company Broad Reach Power and others this morning unveiled a new Energy Storage Solutions Consortium, Ben writes. - The group's goal is to create an "open-source, third-party-verified methodology" to quantify the emissions-cutting benefits of grid-connected storage projects, the announcement states.
- This tool would "provide valuable guidance such as when to deploy stored energy to deliver maximum emissions reduction benefits," it states.
💰The electric fleet charging provider TeraWatt Infrastructure has now raised over $1 billion thanks to fresh support from Vision Ridge Partners, Keyframe Capital and Cyrus Capital, the company said yesterday, Ben writes. Why it matters: The announcement signals investor confidence in the coming need for a major buildout that supports commercial fleets, including medium- and heavy-duty trucks. How it works: Via Axios' Megan Hernbroth, TeraWatt buys land near highways or other major logistics routes with the intent of building charging sites for EV fleets. 💰Speaking of EV charging, the U.K.-based charging management platform Monta this morning announced $30 million in Series A finance led by Energize Ventures. The money will help the company enter North American markets "while consolidating its position in Scandinavia, the UK, and Germany," it said. |
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| A message from League of Conservation Voters |
| President Biden just delivered a huge climate victory |
| |
| |
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| Now it's time to move forward with a supercharged transition to clean energy. ConocoPhillips' dirty and dangerous Willow project in America's Arctic threatens to take us backward. President Biden needs to say no to Willow and keep moving us forward. Learn more. |
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| 📬 Did a friend send you this newsletter? Welcome, please sign up. 🙏 Thanks to Mickey Meece and David Nather for edits to today's newsletter. H/t @albumism for today's music trivia. We'll see you back here tomorrow! |
 | | Why stop here? Let's go Pro. | | |
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