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NEWS
New developments in Transportation
How the Ukraine crisis could scupper Germany's EV targets
by Steven Gislam
The Russian invasion of Ukraine could prevent Germany from meeting its target of 15 million electric vehicles (EV) on the roads by 2030 says market analyst GlobalData.
Germany, like most countries, has a plan for cutting its greenhouse gas emissions with a 2045 target for net-zero. Increasing the number of EVs on the roads was an important element for how the country was to achieve this target.
According to Global Data, the crisis in Ukraine has led to an 18% rise in the price of Nickel - a key element in EV batteries - since the end of 2021 to over $24,000 (€21,800) per metric tonne. As a result, Germany could see stunted growth for EVs in the coming years.
Figures from the German Environment Agency, Umweltbundesamt (UBA), show the country's transportation sector accounts for 20% of total emissions.
Two of the major driving factors for EV adoption have been the central government subsidy and the battery prices. With battery prices set to increase and uncertainty on the central subsidy level from 2025, Germany may not be able to meet its EV target.
Mohit Prasad, Practice Head of Power at GlobalData, said: "Russia is the world’s third-largest nickel producer. Nickel is a significant ingredient that is used in lithium-ion battery manufacturing. Batteries are the most important component of the electric vehicle. The Ukraine-Russia crisis has led to the highest increase of nickel prices in a decade."
Automakers in Germany have already been affected by the crisis. Volkswagen, which had sold over 20% of the country’s EV sales in 2021, has suspended production at two factories in eastern Germany because the crisis has interrupted deliveries of critical components from western Ukraine.
GlobalData warns that if this continues, other manufacturers could also potentially suspend their operations. "Germany has set an interim target of 48.1% reduction in greenhouse gas emissions coming from the transport sector from the 1990 level by 2030. The growth of the electric vehicle market is important for this. The country has already crossed one million electric cars on the roads. Half of these are Battery Electric Vehicles and the remaining are Plug-in Hybrid Electric Vehicles. To reach its 15 million target only for EVs by 2030, the market should grow at a CAGR of 35%," Prasat added. "Considering the issues and delays related to the procurement of raw materials, which would be further amplified with the Ukraine-Russia crisis, the country could expect a muted growth in the EV sector. This might dent the country’s preliminary target to reduce greenhouse gas emissions coming from the transport sector by 2030." Nickel is not the only commodity necessary for car production that is set to be hit by the war. According to a report in The FT earlier this week, Ukraine supplies around 50% of the world's neon gas, an essential part of semiconductor production. Automakers have already been suffering from a yearlong shortage in semiconductors, and the Russian invasion looks set to further compound this problem. Visit: www.globaldata.com
Historic new deal could secure Africa's automotive future
by Steven Gislam
Ahistoric deal has been signed by 12 automotive associations across Europe and Africa with an eye to accelerating the development of the African auto sector.
While many across the continent and beyond view the automotive sector as playing a key role in African industrialisation, it comes with many challenges.
Nonetheless, the African Association of Automotive Manufacturers (AAAM) believes that trade between nations across the continent can be bolstered and diversified through the development of a Pan-African Automotive Pact. Such a pact would look to expand the continent's market for new vehicles from one to five million units as well as connect regions.
Infrastructure in some parts of Africa still resembles much of that built by the former colonial powers. Road links between competing European spheres of influence were often discouraged, and in newly independent nations, border controls tended to be tightened as a means of protecting internal trade.
Roads built by the former powers tended to lead from mineral-rich inland areas to ports and coastal towns for transport of goods back to Europe, rather than between neighbouring areas.
A number of modern major infrastructure developments, such as the Trans-African Highway network, are in place as a way to remedy this, but this must also be accompanied by a bolstering of the auto sector.
One of the catalysts that led to the signing of the automotive agreement was the launch of the AfCFTA – African Continental Free Trade Area in 2019, which aims to ultimately create the world's largest free trade area among all 54 African nations.
The MoU was initially pushed by the AAAM, along with the German car association the VDA, and the German-African business association Afrika-Verein, and has the support of both the European and African Unions.
According to the AAAM, the deal aims to "grow the automotive sector in Africa through integration into the global and European value chains".
Following the signing, Dave Coffey the CEO of AAAM, said: "The trade and investment climate in Africa can only be improved together. We are convinced that Africa has great potential to develop a promising automotive industry that will provide long-term employment. "The fact that African and European associations have agreed on key points to further develop the industry on the continent is an important milestone. Now political representatives are to support this by creating the framework conditions for the industry to develop and grow." Visit: https://aaamafrica.com
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INDUSTRYNEWS
by Ash Jones
Origami is the art of folding paper into shapes and is an ancient part of Japanese culture. But what if this process could be applied to the manufacturing line?
This was the idea for Swedish design startup Stilride, which has unveiled a line of electric motorcycles and scooters created through a process they dubbed "industrial origami" - robots that fold single sheets of recycling steel into intricate, lightweight and durable structures that could hit showrooms later this year.
The use of green steel and low-carbon robotics allows the active carbon emissions from the production of the motorbikes to be significantly reduced.
The robots take this renewable steel and fashion it into both the chassis and body of the vehicles to form a fleet of "next-generation" motorcycles that run entirely on electricity.
Known as the "Stilfold" technique, it is the brainchild of best friends Tue Beijer and Jonas Nyvang. Both have backgrounds in fashion and engineering and decided to meld the two into a fascinating new design.
The duo have ambitions to redefine how high-performance mobility products are manufactured and distributed using the cutting-edge of industrial technology: green steel, robotics and innovations in design.
“[Our design] at the intersection of technology, mobility and design. My co-founder Tue first introduced the idea for the scooter to me at a dinner in 2019. He sketched out how it could be manufactured using origami folding and built a model out of paper," Stilride CEO Jonas Nyvang said.
He described the technology as a "dance between robots and steel" with the ambition of creating high-performance motorcycles that can stand up to their traditionally-fuelled cousins. "It’s surreal to have now created a high-spec electric motorcycle that’s true to that original vision. It meets our commitment to sustainability whilst also having a radical and distinctive design identity. "Not only is it unisex, but it’s uni-age. It’s designed for everyone and we hope it can be an accessible entry point to the world of scooters and motorcycles for those with an eye for style and a love of nature," he added.
The first model due to hit shelves is the company's Sport Utility Scooter One (SUS1). Unlike traditional scooters which consist of a tubular frame and plastic body, the entirety of this motorcycle is made using folded stainless steel over curves, mimicking the origami technique.
The company claims the major advantage of this design is a significant reduction in materials during production. The SUS1 reportedly required 70% fewer components, sees a 25% reduction in labour costs and a 20% reduction in material costs.
E-motorbikes are just the first step for the company, which will also be attempting to apply this design process in creating cargo bikes and trailers.
The company is also planning to refine its production process that will allow the steel to be flat-packed and shipped to local factories across Europe. These will be folded and fitted with a hub motor and a battery pack. "We’re launching in Europe first as it’s a market that relies heavily on outsourcing and has much to gain from increasing its domestic manufacturing capabilities. Next, we will look to expand into other international markets. It’s an exciting time to be in the green mobility space and we’re ready to make our mark," Nyvang concluded
The firm claims that, under current development, the creation of the chassis of these origami scooters has a climate impact 50% lower than traditional ones.
The SUS1 has reached 90,000 pre-orders and the first rollout is expected for Autumn 2022. Visit: www.stilride.com
The Stilride SUS1
Autoliv joins Polestar project to create climate-neutral car
by Romana Moares & Ash Jones
Swedish car safety systems developer Autoliv is to join Polestar in its initiative to develop a truly climate-neutral car by 2030.
The "Polestar 0" project aims to spur collaboration across automotive supply chains in a bid to change the view on sustainability in the sector, effectively making the vehicles fully sustainable across its value chain, and not just in its fuel use.
In addition, Autoliv has pledged to become carbon neutral in its own operations by 2030 and aim for net-zero emissions across its supply chain by 2040.
Autoliv and Polestar intend to research and develop technology aiming at finding climate neutral solutions and innovations related to automotive safety such as pyrotechnics, textiles, and new generations of materials for airbags and seat belts. "We are happy and proud to join forces with Polestar. To reach our ambitious climate targets, we need to collaborate across the value chain. We are wellpositioned to continue to support our partners and customers in achieving their sustainability goals", says Mikael Bratt, President and CEO of Autoliv. "It was clear from the start that this is not a solo mission and we are very excited to present such a strong line-up of interested partners, all leaders within their fields, including Autoliv. We are leveraging innovation and collaboration to address the climate crisis", says Thomas Ingenlath, Polestar CEO.
The "Polestar 0" project unites companies across the automotive supply chain to leverage innovation and collaboration to address the climate crisis and change the view of how to manufacture cars in a sustainable way. Visit: www.autoliv.com
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Maersk inks green methanol supply deal with Proman
by Steven Gislam
Shipping giant Maersk has signed an agreement with the Swiss methanol and fertiliser company Proman which will see the development of green methanol for Maersk's new container vessels.
Under the deal, Proman is to supply Maersk with 100,000 to 150,000 tonnes of green methanol per year from its new 200,000 tonnes per year methanol facility, currently under development in Texas. The facility is scheduled to be up and running in 2025 and will produce bio-methanol from non-recyclable forestry residues as well as municipal waste.
The two companies will also collaborate on the development of further global projects that will produce and deliver green methanol to Maersk's ships. The aim is to optimise supply of the fuel at the shipping giant's key bunkering points and drive forward sustainability in the shipping and maritime sector.
Proman said it was also looking at and evaluating multiple potential future bio- and e-methanol projects in the UK, mainland Europe and South America. These possible future projects would form part of a longer-term green methanol supply strategy for Maersk and the shipping sector more broadly.
Proman CEO David Cassidy said: "Maersk’s industry-leading commitment to green methanol is fully aligned with Proman’s belief that methanol should be a key part of the energy transition. Methanol-powered vessels are already in use today, with a proven track record of reducing and even eliminating major emissions like particulate matter and sulphur oxides. "We are excited to bring our deep industry experience to help deliver on Maersk’s bold ambitions, working together to deliver green methanol and clean shipping at a global scale."
Henriette Hallberg Thygesen, the CEO of Fleet & Strategic Brands at Maersk, said: "To transition towards decarbonisation, we need a significant and timely acceleration in the production of green fuels. Green methanol is the only market-ready and scalable available solution today for shipping. "Production must be increased through collaboration across the ecosystem and around the world. That is why these partnerships mark an important milestone to get the transition to green energy underway."
Key challenges remain in securing competitively priced green methanol globally, however. In order to help decarbonise the global shipping industry, which has been calling for further legislative action that it says is necessary to help level the playing field and incentivise the adoption of lower-emission fuels.
Proman has also called for more consistent and transparent emissions calculations and accounting standards, which it says will be critical to allow like-for-like comparisons between future fuels.
It is widely believed in the sector that methanol is one of the most viable fuels for meeting the challenges associated with decarbonising the maritime sector. Visit: www.maersk.com
The 16-tonne electric trucks coming to London & Paris
by Steven Gislam
The world's first fully-electric 16-tonne trucks are soon to be a regular sight on the streets of London and Paris after debuting in Madrid next month.
Swedish commercial EV startup Volta Trucks announced that the Volta Zero will debut in the Spanish capital on April 5 as part of Volta's European roadshow at the Circuito del Jarma, which hosted the Grand Prix between 1968 and 1981.
According to the European Commission, in 2020 trucks were responsible for around 75% of inland freight activity in the EU, making them an integral part of the economy. However, despite accounting for less than 2% of vehicles on Europe's roads, trucks represent around 23% of CO2 emissions from road transport.
The company claims the Volta Zero was purposely designed with the objective of decarbonising last-mile logistics in mind and developed for city-centre distribution where air quality is often at its worst.
Volta Trucks plans to produce 5,000 vehicles throughout Europe in 2023 with the aim of 14,000 in 2024, and 27,000 in 2025. The 16-tonne vehicle is the first of the four models, which range between 7.5- and 18-tonnes.
The decision to launch the Volta Zero in London and Paris was down to both cities' "progressive legislation in favour of decarbonisation and the need for zero-emission full-electric commercial vehicles". The launch will then later be followed by a "strategic expansion" in other cities throughout Europe and North America.
Volta says that it is looking to eliminate around 1.2 million tonnes of CO2 emissions by 2025.
The announcement followed the conclusion of a Series C funding round which saw a total investment of €230 million into the company coming from existing New York-based investor, Luxor Capital Group, LP, which led the round, and Stockholm-based initial seed investor and co-lead, Byggmästare Anders J Ahlström.
Volta said the latest funding round will fund engineering and business operations until after the start of production in late 2022 including the development of the 7.5- and 12-tonne derivatives and the preparations for its manufacturing plant in Steyr, Austria to begin production by the end of the year. "We are a revolutionary and innovative player in the field of commercial vehicles, and we are pleased that the successful and oversubscribed conclusion of our Series C funding round demonstrates the confidence placed by new and existing investors in the strategy and track record of Volta Trucks. "They are top-level investors who share our vision and trust in the scalability of our business model, the future of electric commercial vehicles and the new value proposition in the commitment to a greener, safer and more sustainable city," said Volta Trucks CEO, Essa Al-Saleh.
In December, the company signed a preorder agreement for nearly 1,500 Volta Zeros with road transport company DB Schenker.
The Volta Zero has a range of up to 200 km (124 miles), with a top speed of 90 km/h (56 mph) and a payload capacity of up to 8 tonnes. Visit: https://voltatrucks.com
