EV sustainability and affordability

Issue #181, Dec 22nd, 2022

Electric vehicles (EVs) by default need not be sustainable or affordable. Steps are being taken to ensure that they result in the much desired carbon emission reduction at all stages in an EV lifecycle and are affordable for end users. Usage of "green" metals is one step in the upstream manufacturing process, as Nissan is planning. e-fuels or a type of synthetic methanol are an example for an alternate sustainable fuel, in comparison to gasoline or diesel. Low-cost heavy rare earth-free magnets for usage in EV motors are one example for affordability. White labelling of EVs is another approach for affordability by achieving economies of scale in manufacturing. Recycling may be one approach for keeping the cost of batteries low. But there may not be enough batteries out there to recycle. Looking at the EV challenges, Toyota is not keeping all its eggs in one basket and diversifying its product portfolio with hydrogen and hybrid models. Below are some recent updates in the EV journey towards sustainability, while keeping affordability in mind.

Green steel to reduce Scope 3 emission

Nissan Motor will use "green" steel and aluminum supplied by Kobe Steel in its domestic car brands to lower carbon dioxide emissions in its supply chain, the companies announced recently. The plan is to use Kobenable Premier, a steel product launched by Japanese steelmaker Kobe Steel that eliminates CO2 emissions from the manufacturing process, in domestically built Serena minivans to be sold starting in spring 2023. - Nikkei Asia

Synthetic methanol as alternate fuel

Porsche and several partners have started production of a climate neutral “e-fuel” aimed at replacing gasoline in vehicles with traditional internal combustion engines. e-fuels are a type of synthetic methanol produced by a complex process using water, hydrogen and carbon dioxide. Companies say they enable the nearly CO2-neutral operation of gas-powered engines. Porsche said that a pilot plant in Chile started commercial production of the alternative fuel. By mid-decade, the plan is to produce millions of gallons of the e-fuel. Porsche expects to initially use the fuel in motor sports. - CNBC

Low cost magnets for EV affordability

Along with the electrification megatrend, R&D efforts to develop more efficient and affordable solutions are also on the rise. Scientists from the Center for Automotive Energy Materials at the International Advanced Research Centre for Powder Metallurgy & New Materials (ARCI), an autonomous R&D center of the Department of Science & Technology, Government of India have fabricated improved low-cost heavy rare earth-free high Neodymium Iron Boron (Ni-Fe-B) magnets, which are in high demand for EVs and can make them more affordable. ARCI is setting up a pilot plant to manufacture near net-shaped Nd-Fe-B magnets. - ET Auto

White labeling EVs

Foxconn, the Taiwanese electronics giant that assembles all manner of popular electronic devices, is diving head-first into the world of EVs. But rather than sell them under its own brand, it wants to design and manufacture cars for established automakers and the new crop of EV startups. Foxconn's chairman recently said the company aims to someday make 40-45% of the world's EVs, matching the success it's achieved in electronics. - Business Insider

Availability of EV batteries for recycling

Sales of electric cars and trucks are taking off, and the auto and battery industries are investing billions of dollars on factories. These cars could help address climate change, but batteries pose their own problems. Raw materials can be hard to mine. Venture capitalists, automakers and energy companies are pouring money into dozens of start-up recycling companies. But for all the optimism, this new business faces a daunting challenge: few batteries will be available to recycle for a decade or more. Tesla began selling cars in 2008 and until 2017 sold fewer than 100,000 cars a year. There are other sources to recycle today. But the supply is limited and collection can be challenging. - New York Times

EVs and the silent majority

Auto makers are making big bets on fully electric vehicles, investments that have been bolstered by robust demand for the limited numbers of models that are now available. Still, challenges are mounting. Toyota has stuck to a strategy of investing in a diverse lineup of vehicles that includes hydrogen-powered cars and hybrids, which combine batteries with gas engines. - WSJ