Latest news with #RhoMotion
Yahoo
21-05-2025
- Business
- Yahoo
Energy storage boom drives battery shift, leaving nickel, cobalt behind
By Eric Onstad LONDON (Reuters) -When Fidra Energy acquired a 55-acre (22-hectare) patch of northern England countryside in 2023, its plan to transform it into a 1.45 gigawatt energy storage facility - Europe's largest once completed - was far from a done deal. "We were struggling to make the economics work," Chris Elder, the Edinburgh-based company's CEO, told Reuters. But that was before the lithium iron phosphate (LFP) batteries being used in the project, which were already recording significant improvements in performance, roughly halved in cost in a period of just 18 months. Fidra now plans to start installing battery units for its 600-million pound ($800-million) Thorpe Marsh project next year. LFP batteries are fuelling a boom in energy storage projects that - in percentage terms - now outpaces electric vehicle sales growth. UBS bank estimates total storage capacity must grow eight-fold by the end of this decade and 34-fold by 2050 to keep up with the renewable power expansion. While EVs still dominate battery demand, energy storage will make up about a fifth of the market by 2030, according to a forecast by energy transition consultancy Rho Motion. Growth in the U.S. - the world's second-biggest energy storage market, still dependent upon Chinese imports - will face headwinds in the next few years due to tariff uncertainty, analysts say. But long-term growth is intact. That's good news for the renewables sector and should help national grids maintain balanced power supply as they transition to cleaner energy sources, avoiding the kind of massive blackout that briefly crippled Spain last month. The rapid uptake in the use of LFPs, which are much cheaper than traditional batteries and do not use cobalt and nickel, is sending shockwaves through the already depressed markets for those metals. "You've seen a truly monumental shift lower for nickel and cobalt in the intensity of commodity use in battery demand," said Martin Jackson at commodities consultancy CRU. NICKEL, COBALT IN DECLINE For years, analysts expected the battery sector would need huge amounts of nickel and cobalt for high-powered batteries allowing EVs to travel long distances between charges, a forecast that, for a time, sent their prices soaring. Anticipating a demand surge, production ramped up - particularly in top nickel miner Indonesia and leading cobalt exporter Democratic Republic of Congo. But a lack of affordable EV models and the slow roll-out of charging infrastructure have slowed EV uptake among consumers outside China, leading some carmakers to scale back their electrification plans. Benchmark nickel prices, burdened by oversupply, have halved over the past three years while cobalt has slumped by 60%. Global EV sales still grew 23% last year. But demand for storage batteries surged 51%, according to Rho Motion, and is on track to expand by 40% this year. Energy storage - crucial for the greener national power grids needed to meet governments' net-zero climate goals - is dominated by LFP batteries. They are also increasingly being used by Chinese EV makers - including BYD, which surpassed Tesla last year to become the world's biggest seller of EVs. As a result, the intensity of nickel use for batteries used in EVs, storage and consumer electronics batteries fell by almost a third over the four years to 2024 and by two-thirds for cobalt, according to data from CRU. The gathering pace of the shift to LFPs is likely to further weigh on prices for the two metals. Lithium, on the other hand, could get a boost. "The share of stationary storage within the battery demand picture is growing very significantly and is increasingly important for lithium players at a time of slower than anticipated EV demand," said Rho Motion's Iola Hughes. That has not translated into a firmer market so far, with oversupply helping push already weak lithium carbonate prices down a further 20% this year. BEYOND PRICE Yet price is not the only factor helping drive the LFP battery storage boom. Fidra's Elder said recent technological advances in LFP batteries mean that those being used at Thorpe Marsh will have a lifespan of 20 years, up from 10-15 years previously. And concerns over the carbon intensity of nickel production and rights issues related to cobalt mining in Congo are also propelling the shift, said Lars Christian Bacher, CEO of Norway's Morrow Batteries. "There are expectations on the battery suppliers and the traceability over where all of this comes from," he said. "Some of these minerals have historically been associated with ... countries that have some question marks related to human rights issues, child labour." Lithium is also facing increasing scrutiny over indigenous rights and environmental concerns in major producing countries Chile, Argentina and China, but the criticism has not garnered the same level of public attention as cobalt and nickel. Morrow, which will launch production in the second quarter, plans to manufacture 3 million cells - or one gigawatt hour of capacity - annually. Fully charged, that's roughly enough to power 1 million homes for an hour, according to the British government's energy regulator. Existing battery makers are also piling in. South Korea's LG Energy Solution is expanding its energy storage business to mitigate the impact of slowing EV demand in North America. It plans to stop making EV batteries containing nickel at one U.S. plant and repurpose it for LFP battery production, an industry source in Asia told Reuters. However, while U.S. President Donald Trump is pushing to break China's battery dominance, analysts expect the pivot to LFPs to only tighten its grip on the industry. Battery production in the United States does not meet demand, with 90% of its energy storage batteries imported from China. And ramping up U.S. energy storage capacity now faces the challenge of Washington's tariffs on Chinese battery imports - currently at 41% during the current 90-day trade war truce - with uncertainty over the levies likely to hit short-term demand, according to analysts. While Europe is also seeking to reduce its dependence on China, Fidra's Elder, whose Thorpe Marsh project uses batteries produced by China's Sungrow Power Supply, said governments would need to be practical. "If the (British) government wants to hit its net-zero targets for the UK, and I think it's pretty committed to doing that, it's going to have to work with China pragmatically," he said. 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Yahoo
20-05-2025
- Automotive
- Yahoo
Honda plans a $20 billion pivot to hybrids as EV sales slow
Honda plans to reduce EV investment by $20 billion to focus on hybrids amid a global sales slowdown. Its CEO cited regulatory changes and slowing EV growth as key reasons for a strategic shift. The abandoned merger with Nissan adds pressure on Honda to safeguard its future. Honda is dialing back its ambitious EV push and doubling down on hybrids amid slowing demand. On Tuesday, CEO Toshihiro Mibe said the automaker would cut its EV investment by 30% from $69 billion (10 trillion yen) to $48.4 billion (7 trillion yen) through the 2031 fiscal year. The move is aimed at stabilizing Honda's future in a slowing EV market. The Japanese company will focus on ramping up its hybrid lineup, citing "changes in environmental regulations" and "a slowdown in EV market expansion" as key drivers. "Due to the recent market slowdown, our EV sales ratio in 2030 is now expected to fall below the previously announced target of 30%," Mibe said. The shift comes amid broader turbulence in the auto industry. In the first four months of 2025, EV sales in North America — the US, China, and Mexico — rose by just 5% compared to 25% in Europe and 35% in China, according to data from EV research firm Rho Motion. Meanwhile, the International Energy Agency said in its Global EV Outlook 2025 that higher tariffs could further raise EV prices and slow down sales growth. In response, Honda plans to launch 13 new hybrid models globally starting in 2027, with the aim of selling 2.2 million hybrids annually by 2030. Despite the pivot, Honda said it remains committed to reaching 100% zero-emission vehicle sales by 2040. The announcement follows the collapse of a proposed $50 billion merger with Nissan that would have created the world's third-largest automaker. Nissan rejected the deal over concerns about being treated as a subsidiary. Honda is also ordering US employees back to the office at least 80% of the time by October, saying in-person work is key to "facing a rapidly changing business environment and increasingly competitive market conditions." Read the original article on Business Insider
Business Insider
20-05-2025
- Automotive
- Business Insider
Honda plans a $20 billion pivot to hybrids as EV sales slow
Honda is dialing back its ambitious EV push and doubling down on hybrids amid slowing demand. On Tuesday, CEO Toshihiro Mibe said the automaker would cut its EV investment by 30% from $69 billion (10 trillion yen) to $48.4 billion (7 trillion yen) through the 2031 fiscal year. The move is aimed at stabilizing Honda's future in a slowing EV market. The Japanese company will focus on ramping up its hybrid lineup, citing "changes in environmental regulations" and "a slowdown in EV market expansion" as key drivers. "Due to the recent market slowdown, our EV sales ratio in 2030 is now expected to fall below the previously announced target of 30%," Mibe said. The shift comes amid broader turbulence in the auto industry. In the first four months of 2025, EV sales in North America — the US, China, and Mexico — rose by just 5% compared to 25% in Europe and 35% in China, according to data from EV research firm Rho Motion. Meanwhile, the International Energy Agency said in its Global EV Outlook 2025 that higher tariffs could further raise EV prices and slow down sales growth. In response, Honda plans to launch 13 new hybrid models globally starting in 2027, with the aim of selling 2.2 million hybrids annually by 2030. Despite the pivot, Honda said it remains committed to reaching 100% zero-emission vehicle sales by 2040. The announcement follows the collapse of a proposed $50 billion merger with Nissan that would have created the world's third-largest automaker. Nissan rejected the deal over concerns about being treated as a subsidiary. Honda is also ordering US employees back to the office at least 80% of the time by October, saying in-person work is key to "facing a rapidly changing business environment and increasingly competitive market conditions."
Yahoo
16-05-2025
- Automotive
- Yahoo
EV sales are surging globally — but growth in North America is lagging
Global EV sales surged 29% in the first four months of the year, led by China and Europe. North America posted growth of just 5% according to data from Rho Motion. China's 35% sales boost was driven by trade-in schemes, while EV sales jumped in Europe too. EV sales are booming globally — but growth in North America lags the rest of the world. Global EV sales jumped 29% to 5.6 million in the first four months of the year compared with the same period in 2024, according to data released Wednesday by EV research firm Rho Motion. In April alone, 1.5 million EVs were sold worldwide. However, EV sales in North America — the US, China, and Mexico — rose by just 5%, or 600,000 vehicles. Battery electric vehicle sales in the region rose 7%, while plug-in hybrid sales increased only 1%. Tesla sold 128,100 vehicles in the US in the first quarter of the year, down 8.6% from the same time last year and 21% lower than 2023, per Cox Automotive data. It remains the biggest EV brand despite its market share falling from 51% to 44% over the past year. Mexico, meanwhile, was a bright spot, with EV sales nearly doubling. Unlike their American counterparts, Mexican drivers can buy Chinese-made vehicles. In Europe, stricter emissions targets pushed sales up 25%, with growth of more than 40% in countries including Italy, Spain, and Germany. "The EU is certainly the success story for EV sales in 2025 so far," said Charles Lester, data manager at Rho Motion. "In China, that year-on-year sales increase is even greater at 35%, spurred on by the vehicle trade-in scheme." Read the original article on Business Insider Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Insider
16-05-2025
- Automotive
- Business Insider
EV sales are surging globally — but growth in North America is lagging
EV sales are booming globally — but growth in North America lags the rest of the world. Global EV sales jumped 29% to 5.6 million in the first four months of the year compared with the same period in 2024, according to data released Wednesday by EV research firm Rho Motion. In April alone, 1.5 million EVs were sold worldwide. However, EV sales in North America — the US, China, and Mexico — rose by just 5%, or 600,000 vehicles. Battery electric vehicle sales in the region rose 7%, while plug-in hybrid sales increased only 1%. Tesla sold 128,100 vehicles in the US in the first quarter of the year, down 8.6% from the same time last year and 21% lower than 2023, per Cox Automotive data. It remains the biggest EV brand despite its market share falling from 51% to 44% over the past year. Mexico, meanwhile, was a bright spot, with EV sales nearly doubling. Unlike their American counterparts, Mexican drivers can buy Chinese-made vehicles. In Europe, stricter emissions targets pushed sales up 25%, with growth of more than 40% in countries including Italy, Spain, and Germany. "The EU is certainly the success story for EV sales in 2025 so far," said Charles Lester, data manager at Rho Motion.
