I want to be discussing with you guys the results of a new study that came out highlighting solid state batteries, its impact on climate change and the ev market study was conducted by menviro of europe and a little bit about menviero. Menviro is a group of geologists that work with multiple companies in the raw materials sector to help assess, quantify and mitigate the impacts of these raw materials. Some of the companies they work with are tesla, pilbara, minerals, epsilon, compass, minerals and blackstone minerals to name a few. Today well also be discussing some companies, i feel, will be greatly impacted by some of the findings, including tesla byd alp american battery technology company. I also want to review with you guys the impact i believe it will have here in the united states and what steps our administration will be taking to help minimize some of our reliance on foreign countries with regard to how we mine refine raw materials out our Way here in the united states now before we get into this battery and raw material discussion, how about we just review really quickly what some of these precious metals that are heavily sought out in todays market? We have lithium magnese, graphite, nickel and cobalt just to name a few of lets hop straight into the study. Solid state batteries can further boost climate benefits of evs. The new technology can reduce the carbon footprint of an electric car battery by up to ‘ percent.

Solid state batteries can reduce the carbon footprint of electric vehicle batteries by almost two fists. Further increasing evs advantages over fossil fuel vehicles, thats according to research commissioned by transport environment from menviro, a company specialized in raw materials psychoanalysis, which compared emerging, solid state technology to current battery chemistries. A solid state battery which stores more energy with less materials can reduce the already decreasing carbon footprint of an electric car battery by further 24. The analysis compares a nmc 811 solid state battery, which is one of the most promising chemistries being developed to current lithium ion technology. Solid state technology uses solid ceramic materials instead of liquid electrolytes to carry electric current, also making the batteries lighter faster to charge and eventually cheaper battery manufacturers forecast that solid state batteries will be used in evs in the second half of the decade. Okay, right there, the second half of the decade. We know that alp plans on getting their pilot plant by the end of 2023 or the end of q1 2023. We know that we should get an announcement of where the big facility will be made. Hopefully, next quarter, and so, if you put those two time frames together, ideally we would hopefully get mass production up and running by 2024, hopefully and start seeing some true turnaround on it. By 2025. cecilia matia, clean vehicles officer at tne, said, electric vehicles are already far better for the planet from burning oil and the carbon footprint of batteries is falling every year, but solid state technology is a step change, because their higher energy density means far less materials And therefore far less emissions are needed to make them that also stood out to me about solid state battery making.

I think for some of us. We want to be a little bit more future minded and think about what steps are being taken by some of our favorite companies on achieving these long term goals for alp, one of their subsidiaries electjet. We all know that they are heavily invested in the production of solid state batteries. Right now they have the ax01, the axo2 theyre working on getting a new prototype facility built out in san jose. That will open up at the end of q1 2023 to put all their focus on the development of the axo3 and by the end of q2 we should hold, or by the end of q3 2022. We should get an idea of where their major production facility will take place and what city that they plan on doing that, so that they can get into mass production for their solid state batteries. Lets say you know continuing with electr as our prime example. If theyre able to achieve this – and we have an administration that is putting part of that infrastructure bill in making sure that we can achieve our carbon emission goals and our carbon emission reduction goals at a much quicker rate with the use of elect, then why wouldnt? A company like alp and the subsidiary election be able to get their hands on some, some of that infrastructure bill money or if not a new bill, may come in the future that allocates even more funds their way.

The research also finds the new technology can reduce the climate impact of batteries even further by ‘, compared to current lithium batteries. If solid state batteries are made using the most sustainably sourced materials, new mining methods, including extracting lithium from geothermal wells, have significantly lower climate impacts than more commonly used. Sources such as lithium, from hard rock mine in australia and refined in china. Solid state batteries could require up to 35 percent more lithium than the current lithium ion technology, but far less graphite and cobalt are used. Tne said that the requirements in the eus proposed batteries, regulation for lithium, to be sourced responsibly in terms of environmental and social impacts and recycled, are a no regrets policy that will ensure there is enough supply for solid state batteries. Matia also had this to say clean up the way we extract and process the raw materials in solid state batteries will slash their climate impact. Even further. Improving the methods used in the supply chain will be key. The eu battery regulation is an opportunity to ensure that every battery made or sold in europe is better sourced, has a lower carbon footprint and is recycled at the end of its life. We dont have the ability to mine, at the rate that we would like to or try to accumulate the amount of lithium and i use lithium lot because its one of the highlighted metals in this process. But if we are unable to do this, what we will start to see is not only will we see the market start to price out.

You know, for example, right now, just with inflation. A lot of everything is priced up higher right now. Just imagine when we have a limited resource accessibility to these precious metals, just think of how much more we would have to increase the prices of these products such as evs and how that would ultimately affect the market as a consumer. Most of us have had a car, but a lot of us have never even been behind the wheel of an electric vehicle, so you already need that education and that to take place, which in itself is not an easy task, then you already have companies such as Ford that are dropping billions into the manufacturing of in revamping of their some of their their keystone products, such as the ford f 150. You have new product new companies out there, such as rivien and tesla and neo and polestar that are trying to their very best. At infiltrating the auto space market out here and trying to take some hold that market share, but ultimately none of that is going to be possible if these precious bad battery metals are not easily accessed on a domestic scale but, more importantly, the amount of manpower and Labor that will go into it will also come with a much greater cost than any of us have ever foreseen. We have companies like abml, for example, that you never know. Theyve already received some money from the state of nevada and theyre already taking the on some of the initiatives that the administration has asked, with projects out in nevada for some of the recycling.

That is coinciding with their pilot project thats being built right now. And if you guys want some updates or just some visuals on how far the plan has come, if youve been following this channel, you know youve been checking in on it from time to time, but check out some of these images right here to get in just To get a better idea of just how far along its coming, not only is lithium huge for companies like tesla, with their mass productions, whether its their mega packs or their evs. But we have companies out there like byd, that was up until recently, heavily backed by warren buffett and berkshire, and all of them out there and how it all coincides with the accessibility to lithium beneath byd stellar performance. A wrinkle is emerging lithium supply, while its been well telegraphed that a raw material shortage looms as price surge. The company has so far circumvented those cost pressures its been pushing a vertically integrated model, eyeing minds across the world, boosting production, making better batteries and keeping a tight hold on its supply chain. Among all those factors is its grip on lithium production and, and that has been the most uncertain. High material prices have been hitting chinas industrial firms so hard that beijing called for capping the rising lithium price and is planning policies to help downstream firms. Byd has been on a mission to get its hand on lithium mines and resources. This year the firm is connected with young ricoh, one of chinas first raw lithium compound miners.

In march, it participated in a private placement in another minor change in lithium group. As part of this, the firm will get discounted lithium compounds in the future, while both are likely to continue buying more mines in the citroen region. It isnt going to lead to immediate or guaranteed supply. Most of the quarries have future not existing or production capacity, and changing doesnt have full access to supplies in some of them. If you havent seen my video regarding byd, i highly suggest that you do just look on the list below and go into a little more detail on how they plan and how they have been the leader in ev manufacturing not only with cars but with their buses And just fleets of all kinds, but more importantly, how they utilize lithium in their blade batteries, even companies that are doing really well theyre, all gearing up for a shortage when it comes to lithium. Another company that we will be discussing today will be tesla a recent article that came out with their thoughts on mining and whether or not they are going to continue to pursue their aspirations to get into the mining side of battery metals. The fundamental governor of the rate at which we can transition into sustainability is the rate at which we can grow the output of lithium ion batteries. Teslas entire lineup of electric vehicles relies on lithium ion batteries for propulsion. Besides, building cars, tesla also provides stationary energy storage solutions, such as power pack, which can provide supplementary or emergency electric supply to buildings.

The car maker has even scaled up to the mega pack in energy storage park, which can provide off grid electricity to up to 3 600 homes for an hour. There are three pillars to sustainable energy future. One is electric transport, the other sustainable power generation and the third is stationary battery energy, storage and theres. Clearly, a global need for a large number of battery packs made from hundreds of lithium cells, but building these cells isnt easy. We dont want to go into the mining industry or the refining industry, because the limitation is more lithium refinement than is actual mining. So youve got to take the ore that contains lithium and refine it to get it to the battery grade, lithium, hydroxide and lithium carbonate. In other words, mining isnt, the only issue extraction of pure lithium from its aura, is a bigger concern. It has to be extremely pure, otherwise you have a breakdown in the cell and you cant have impurities in the cell because it would cause the cell to fail. So the challenge with a lot of the ingredients in lithium ion batteries is that its not the fundamental rarity of lithium lithium is very common. Its the most common element on earth, but youve got to turn it into battery grade lithium and thats. Where the choke point is, for this reason, musk hopes that the lithium supply problems wouldnt, make it necessary for his company to get into the lithium mining.

Tesla is in it for the long run in the stationary energy storage business. According to musk, around three lake h, gigawatt hours of energy storage, is needed to fully transition the planet to sustainable energy. This translates to a steady supply of 15 terawatts of batteries every year for 20 years to reach this goal. At the moment we are far from generating enough batteries for anything other than evs. According to the data from wood mckenzie, the global production capacity stood at 600 gwh in 2021, with electric vehicles as the primary consumers of lithium ion batteries. Global lithium battery production is rising rapidly and its exponential growth is key to making electrical cars more affordable, closer to home and ayog. Our nitai expects indias global demand for lithium to reach 260 gigawatt hours by 2030.. The government has a production linked incentive in place to accelerate local battery production, so this is very huge, and this is why its very important that our administration can achieve and do what it seeks out to do with their new initiative and well get into that. In just a little bit, the united states says it will back miners to stop chinas weaponization of battery metals developers of battery metals projects can win support from the u.s government as it seeks to counter the dominance of china in clean technology supply chains. Nations, including the united states, have raised concerns over the global concentration of refining and production capacity for key materials like lithium, rare earths and cobalt, prompting president joe biden to invoke the 1950 defense production act to encourage domestic production.

Our concern is that critical minerals could be vulnerable to manipulation as weve seen in other areas or weaponization. In a meeting in sydney with companies, including bhp group, rio, tinto group and linus corp energy secretary jennifer granholm, had said, we are very serious about establishing strong relationships with australia and with you and with your potential customers for off. Take the forecast for 2025 output and refining capacity in metric tons clearly indicates how china has a strong grip on this space, with australia being behind in a close second. Now, if you look at the united states, as you can tell, the united states is vastly treading behind these other countries. Producers and nations, including australia, can also access support through agencies, including the department of energys loan programs office. China accounts for almost three quarters of manufacturing capacity for lithium, ion batteries needed for electric vehicles and renewable energy storage and dominate steps throughout the supply chain, including the processing of a suite of key metals. The nation is also the worlds dominant supplier of solar power equipment and is seeking to build out its market share in their merging clean hydrogen sector. Cyber resources, a melbourne based graphite producer with facilities in mozambique and louisiana in april, a 107 million dollar commitment from the loan programs office. Rare earth producer linus rare earth ltd in june, signed a contract with the united states department of defense to establish a plant here. In texas, the biden administration already has allocated vast amounts, including six billion dollars as part of the infrastructure bill.

That is all aimed at developing a u.s battery supply chain and weaning. The auto industry, off its reliance on china, the leading producer of lithium ion cells, energy independence advocates, have also pushed the administration to focus further upstream on mining and on minerals processing, a key step in the ev sector, thats also largely dominated by china. The us is already sharing information with countries seeking foreign funding for mining projects and allied governments, foreign mining companies and financial institutions that can help kick start projects. The state department effort is part of a broader large, longer term body administration, initiative to wean the u.s and its allies from china and other countries it sees as misusing their market dominance or geopolitical leverage. Okay, well that wraps up the importance of that study. With regard to solid state batteries, the importance of lithium and how its affecting tesla and their actions as a company, what our administration plans on doing to help sever our reliance on countries like china when it comes to these precious metals, and we also reviewed some of How i think some of these companies can benefit from some of this news, so i do hope that this video was informational for all you guys out there and, like always, thank you so much for checking in with stock talk with eric, anthony and ill see.

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