For many people in government and the auto industry, the main concern is whether there will be enough lithium to meet soaring demand for electric vehicles.

The Inflation Reduction Act, which President Biden signed in August, has raised the stakes for the auto industry. To qualify for several incentives and subsidies in the law, which go to car buyers and automakers and are worth a total of $10,000 or more per electric vehicle, battery makers must use raw materials from North America or a country with which the United States has a trade agreement.

rising fast.

California and other states move to ban internal combustion engines. “It’s going to take everything we can do and our competitors can do over the next five years to keep up,” Mr. Norris said.

One of the first things that Sayona had to do when it took over the La Corne mine was pump out water that had filled the pit, exposing terraced walls of dark and pale stone from previous excavations. Lighter rock contains lithium.

After being blasted loose and crushed, the rock is processed in several stages to remove waste material. A short drive from the mine, inside a large building with walls of corrugated blue metal, a laser scanner uses jets of compressed air to separate light-colored lithium ore. The ore is then refined in vats filled with detergent and water, where the lithium floats to the surface and is skimmed away.

The end product looks like fine white sand but it is still only about 6 percent lithium. The rest includes aluminum, silicon and other substances. The material is sent to refineries, most of them in China, to be further purified.

Yves Desrosiers, an engineer and a senior adviser at Sayona, began working at the La Corne mine in 2012. During a tour, he expressed satisfaction at what he said were improvements made by Sayona and Piedmont. Those include better control of dust, and a plan to restore the site once the lithium runs out in a few decades.

“The productivity will be a lot better because we are correcting everything,” Mr. Desrosiers said. In a few years, the company plans to upgrade the facility to produce lithium carbonate, which contains a much higher concentration of lithium than the raw metal extracted from the ground.

The operation will get its electricity from Quebec’s abundant hydropower plants, and will use only recycled water in the separation process, Mr. Desrosiers said. Still, environmental activists are watching the project warily.

Mining is a pillar of the Quebec economy, and the area around La Corne is populated with people whose livelihoods depend on extraction of iron, nickel, copper, zinc and other metals. There is an active gold mine near the largest city in the area, Val-d’Or, or Valley of Gold.

Mining “is our life,” said Sébastien D’Astous, a metallurgist turned politician who is the mayor of Amos, a small city north of La Corne. “Everybody knows, or has in the near family, people who work in mining or for contractors.”

Most people support the lithium mine, but a significant minority oppose it, Mr. D’Astous said. Opponents fear that another lithium mine being developed by Sayona in nearby La Motte, Quebec, could contaminate an underground river.

Rodrigue Turgeon, a local lawyer and program co-leader for MiningWatch Canada, a watchdog group, has pushed to make sure the Sayona mines undergo rigorous environmental reviews. Long Point First Nation, an Indigenous group that says the mines are on its ancestral territory, wants to conduct its own environmental impact study.

Sébastien Lemire, who represents the region around La Corne in the Canadian Parliament, said he wanted to make sure that the wealth created by lithium mining flowed to the people of Quebec rather than to outside investors.

Mr. Lemire praised activists for being “vigilant” about environmental standards, but he favors the mine and drives an electric car, a Chevrolet Bolt.

“If we don’t do it,” he said at a cafe in La Corne, “we’re missing the opportunity of the electrification of transport.”

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Analysis: Industrial users flee LME nickel, deepening market fissures

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Traders work on the floor of the London Metal Exchange, in London, Britain September 27, 2018. REUTERS/Simon Dawson/File Photo

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  • Nickel deliverable against LME contract only 21% of market
  • Nickel pig iron 50% of global market

LONDON, Sept 14 (Reuters) – The London Metal Exchange faces a struggle to regain its dominant position in global nickel trading as volumes slide and participants flee an increasingly volatile market in the wake of trade mayhem earlier this year.

Nickel volumes on the world’s oldest and largest venue for trading metals collapsed after the LME suspended its contract for a week and cancelled all trades on March 8, when prices doubled in a few hours to a record above $100,000 a tonne.

LME data shows many participants have abandoned the nickel market, a trend several traders say looks set to continue leading to even lower volumes and more volatility as more people opt to negotiate prices directly.

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Average daily volumes of nickel traded on the LME plunged 50% last month to 203,856 tonnes from the same period last year. This follows drops of 28%, 35%, 25% and 42% in April, May, June and July respectively.

“Volumes may well be down because there is still a certain lack of trust in the LME after the debacle in March,” said Wood Mackenzie analyst Andrew Mitchell. “LME nickel does not represent the bulk of the market.”

The nickel that can be delivered against the LME’s contract will this year amount to only 650,000 tonnes or around 21% of global production compared with 50% in 2012, Macquarie analyst Jim Lennon said.

The exchange says it is working on potential improvements.

“The LME is actively engaging with nickel market users to consider…potential enhancements to its nickel contract and additional measures to address the growing market in nickel and its different forms,” the exchange told Reuters in response to a request for comment. “We look forward to sharing plans in due course.”

LME nickel volumes

VOLATILITY DOOM LOOP

Several traders believe the LME’s nickel contract will never recover as the low liquidity has created a vicious circle of falling volumes and extreme price volatility.

They say trying to trade even 10-20 lots or 60-120 tonnes of nickel is tough without moving the price, compared with 200-250 lots or 1,200-1,500 tonnes prior to March.

Volatility and rising supplies of Indonesian nickel pig iron (NPI) used to make stainless steel are spurring the shift away from the LME contract. NPI is a low grade cheaper alternative to pure nickel metal.

NPI, which can’t be delivered against the LME’s contract, is expected to account for more than 50% of global supplies this year at 3.1 million tonnes from 12% in 2010, Mitchell said.

“There is an oversupply of nickel pig iron,” said Lennon. “NPI is priced at around $16,500.”

LME nickel is around $24,500 a tonne.

NPI is not traded on the Shanghai Futures Exchange either. ShFE offers a nickel metal contract that is highly correlated with the benchmark LME nickel contract.

“The LME contract is imperfect in the context of how the market has evolved. There are different pockets and the LME contract caters for just one of those pockets,” said Michael Widmer, an analyst at Bank of America.

Nickel sulphate, used to make the cathode component of electric vehicle batteries is another product. Sulphate can be made from nickel briquettes stored in LME registered warehouses , .

But LME nickel stocks are depleted and sulphate is now being made from nickel matte, a product that can be made from nickel pig iron (NPI), and another intermediate product known as mixed hydroxide precipitate (MHP) produced in Indonesia.

Rival exchange CME Group is looking into launching a nickel sulphate contract, according to sources. It declined to comment on how its plans were progressing.

Stainless steel mills, many in China, consume about two-thirds of global nickel supplies. Electric vehicle batteries are expected to take a larger share as sales surge due to the energy transition; around 30% by 2030 compared with 15% last year.

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Reporting by Pratima Desai; editing by Veronica Brown and Emelia Sithole-Matarise

Our Standards: The Thomson Reuters Trust Principles.

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President Biden Touts Electric Vehicles At Detroit Auto Show

The president is expected to promote the new climate, tax and health care law that offers tax incentives for buying electric vehicles.

President Joe Biden, a gearhead with his own vintage Corvette, showcased his administration’s efforts to promote electric vehicles during a visit Wednesday to the Detroit auto show.

President Biden traveled to the massive North American International Auto Show to plug the huge new climate, tax and health care law that offers tax incentives for buying electric vehicles. He toured a mix of American-manufactured hybrid, electric and combustion vehicles from Chevrolet, General Motors, Ford, and Stellantis on a closed-off convention center floor, and greeted union workers, CEOs, and local leaders.

The Democratic president, who recently took a spin in his pine-green 1967 Stingray with Jay Leno for a segment on CNBC’s “Jay Leno’s Garage,” hopped into the driver seat of a bright orange Chevrolet Corvette Z06 — not an EV —and fired up its engine, alongside GM CEO Mary Barra.

“He says he’s driving home,” she joked.

President Biden then toured the new electric Ford Mustang Mach-E, marveling with Ford executive chairman Bill Ford at the model’s performance. “It’s amazing the speed,” President Biden said, adding, “Does it have a launch button?” He also explored less-flashy vehicles, like Ford’s all-electric E-Transit van and F-150 truck.

President Biden finally got behind the wheel of a Cadillac Lyriq all electric SUV, briefly driving it down an aisle in the blue-carpeted hall. It marked a rare occasion to drive — albeit at little more than a walking pace — for the president, who typically is transported in armored U.S. Secret Service vehicles when out in public.

“Jump in, I’ll give you a ride to Washington,” he joked to reporters. “It’s a beautiful car,” he added, “But I love the Corvette.”

While President Biden has been taking credit for the recent boom in electric vehicle battery and assembly plant announcements, most were in the works long before the Inflation Reduction Act was signed into law on Aug. 16. President Biden’s 2021 infrastructure legislation could have something to do with it — it provides $5 billion over five years to help states create a network of EV charging stations.

In Detroit, President Biden was to announce approval of the first $900 million in infrastructure money to build EV chargers across 53,000 miles of the national highway system in 35 states.

Under the law, electric vehicles must be built in North America to be eligible for a new federal tax credit of up to $7,500. Batteries for qualifying vehicles also must be made in North America, and there are requirements for battery minerals to be produced or recycled on the continent. The credits are aimed at creating a U.S. electric vehicle supply chain and ending dependence on other countries, mainly China.

Passage of the measure set off a scramble by automakers to speed up efforts to find North American-made batteries and battery minerals from the U.S., Canada or Mexico to make sure EVs are eligible for the credit.

In April, Ford started building electric pickup trucks at a new Michigan factory. General Motors has revamped an older factory in Detroit to make electric Hummers and pickups.

Long before legislators reached a compromise on the legislation, each company announced three EV battery factories, all joint ventures with battery makers. A GM battery plant in Warren, Ohio, has already started manufacturing. A government loan announced in July will help GM build its battery factories.

Ford said last September it would build the next generation of electric pickups at a plant in Tennessee, and GM has announced EV assembly plants in Lansing, Michigan; Spring Hill, Tennessee; and Orion Township, Michigan. In May, Stellantis, formerly Fiat Chrysler, said it would build another joint venture battery factory in Indiana, and it has announced a battery plant in Canada.

Hyundai announced battery and assembly plants in May to be built in Georgia, and Vietnamese automaker VinFast announced factories in North Carolina in July. Honda and Toyota both announced U.S. battery plants after the act was passed, but they had been planned for months.

President Biden has been talking for a long time about the importance of building a domestic EV supply chain, and that may have prodded some of the companies to locate factories in the U.S. But it’s also advantageous to build batteries near where EVs will be assembled because the batteries are heavy and costly to ship from overseas.

And auto companies are rolling out more affordable electric options despite battery costs. The latest came last week from General Motors, a Chevrolet Equinox small SUV. It has a starting price around $30,000 and a range-per-charge of 250 miles, or 400 kilometers. Buyers can get a range of 300 miles, or 500 kilometers, if they pay more.

The Equinox checks the North American assembly box. It will be made in Mexico. The company won’t say where the battery will be made but it is working on meeting the other criteria for getting the tax credit.

Additional reporting by The Associated Press.

Source: newsy.com

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This Remote Mine Could Foretell the Future of America’s Electric Car Industry

Hiding a thousand feet below the earth’s surface in this patch of northern Minnesota wetlands are ancient mineral deposits that some view as critical to fueling America’s clean energy future.

poor environmental record in the United States, and an even more checkered footprint globally. While some in the area argue the mine could bring good jobs to a sparsely populated region, others are deeply fearful that it could spoil local lakes and streams that feed into the Mississippi River. There is also concern that it could endanger the livelihoods and culture of Ojibwe tribes whose members live just over a mile from Talon’s land and have gathered wild rice here for generations.

provoked outrage in 2020 by blowing up a 46,000-year-old system of Aboriginal caves in Australia in a search for iron ore.

at higher rates than any other racial or ethnic group in the state. Locals say the only Tesla for miles is Talon’s company car.

“Talon and Rio Tinto will come and go — greatly enriched by their mining operation. But we, and the remnants of the Tamarack mine, will be here forever,” Mr. Applegate said.

near tribal land.

approved a plan to ban the sale of new gas-powered cars by 2035.

Indonesia and the Philippines, releasing vast amounts of carbon dioxide before being refined in Chinese factories powered by coal.

Another source of nickel is a massive mining operation north of the Arctic Circle in Norilsk, Russia, which has produced so much sulfur dioxide that a plume of the toxic gas is big enough to be seen from space. Other minerals used in electric vehicle batteries, such as lithium and cobalt, appear to have been mined or refined with the use of child or forced labor.

With global demand for electric vehicles projected to grow sixfold by 2030, the dirty origins of this otherwise promising green industry have become a looming crisis. The Democrats’ new tax and climate bill devotes nearly $400 billion to clean energy initiatives over the next decade, including electric vehicle tax credits and financing for companies that manufacture clean cars in the United States.

New domestic high-tech mines and factories could make this supply chain more secure, and potentially less damaging to the global environment. But skeptics say those facilities may still pose a risk to the air, soil and water that surrounds them, and spark a fierce debate about which communities might bear those costs.

can leach out sulfuric acid and heavy metals. More than a dozen former copper mines in the United States are now Superfund sites, contaminated locations where taxpayers can end up on the hook for cleanup.

canceled leases for another copper-nickel mine near a Minnesota wilderness area, saying the Trump administration had improperly renewed them.

Talon Metals insists that it will have no such problems. “We can produce the battery materials that are necessary for the energy transition and also protect the environment,” said Todd Malan, the company’s chief external affairs officer and head of climate strategy. “It’s not a choice.”

The company is using high-tech equipment to map underground flows of water in the area and create a 3-D model of the ore, so it can mine “surgically” while leaving other parts of the earth undisturbed, Mr. Malan said. Talon is also promising to use technology that will safely store the mine’s toxic byproducts and do its mining far underground, in deep bedrock where groundwater doesn’t typically penetrate.

Talon has teamed up with the United Steelworkers union on work force development. And Rio Tinto has won a $2.2 million Department of Energy grant to explore capturing carbon near the site, which may allow the mine to market its products as zero emission.

estimates, the world will need roughly 20 times as much nickel and cobalt by 2040 as it had in 2020 and 40 times as much lithium.

Recycling could play a bigger role in supplying these materials by the end of the decade, and some new car batteries do not use any nickel. Yet nickel is still highly sought after for electric trucks and higher-end cars, because it increases a vehicle’s range.

The infrastructure law passed last year devoted $7 billion to developing the domestic supply chain for critical minerals. The climate and tax law also sets ambitious thresholds for ensuring that electric vehicles that receive tax incentives are partly U.S.-made.

has begged miners to produce more.

is home to deposits of nickel, copper and cobalt, which were formed 1.1 billion years ago from a volcano that spewed out miles of liquid magma.

Talon has leased 31,000 acres of land in the area, covering an 11-mile geological feature deep under the swamp. The company has zealously drilled and examined the underground resources along one of those 11 miles, and discovered several other potential satellite deposits.

In August, the company announced that it had also acquired land in Michigan’s Upper Peninsula to explore for more nickel.

Talon will start Minnesota’s environmental review process within a few months, and the company says it anticipates a straightforward review. But legal challenges for proposed mines can regularly stretch to a decade or more, and some living near the project say they will do what they can to fight the mine.

Elizabeth Skinaway and her sister, Jean Skinaway-Lawrence, members of the Sandy Lake Band of Minnesota Chippewa, are especially concerned about damage to the wild rice, which Ms. Skinaway has been gathering in lakes several miles from the proposed mine for 43 years.

Ms. Skinaway acknowledges the need to combat climate change, which also threatens the rice. But she sees little justice in using the same kind of profit-driven, extractive industry that she said had long plundered native lands and damaged the global environment.

“The wild rice, the gift from the creator, that’s going to be gone, from the sulfide that’s going to leach into the river and the lakes,” she said. “It’s just a really scary thought.”

“We were here first,” said her sister. “We should be heard.”

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New Gas-Powered Cars Will Be A Thing Of The Past By 2035 In California

California’s Air Resources Board approved a sales ban of all new, gas-powered vehicles by 2035, which could slash the state’s emissions.

California is moving to ban the sale of gas-powered cars. 

The state’s Air Resources Board approved a timeline that requires 100% electric or hydrogen-powered new vehicle sales by 2035 and a minimum of nearly 70% by 2030. By 2026, the state will require 35% of all new cars sold to run on electricity or hydrogen. Automakers would be fined $20,000 for every new gas-powered car sold outside those benchmarks.

The policy still needs federal approval, which is considered very likely under President Joe Biden’s administration.   

Right now, about 16% of new cars sold in California are electric.

The move is huge for the country’s most-populous state. It could slash California’s car emissions in half by 2040.

But it’s also a harbinger of things to come for nearly a third of the U.S., with about a dozen other states likely to follow in California’s footsteps.

“The industry is undergoing the biggest shift that it’s ever taken since we switched from horses to cars,” said Tim Kuniskis, Dodge brand CEO. “The industry has invested a half a trillion dollars in this transition. This is the biggest shift that has ever happened in this industry.”

The massive new deadline lights a fire under car makers who are already having trouble pumping out electric vehicles fast enough to meet current demand.

Already, Ford is struggling to get models of its Lightning pickup truck off the line.

Incentivizing drivers to give up older, gas-powered cars in exchange for new battery-powered ones means coming up with more electric cars that drivers want to have, like the electric Dodge Charger, which is engineered to sound like its gas-powered ancestor.

“Horses and buggies went away because cars were better,” Kuniskis said. “The adaption to electrification is not going to happen from government subsidies. It’s going to happen when that is better than what they have today.”

California’s new plan applies to new car sales, but that doesn’t mean there aren’t smart minds trying to retrofit older, gas-powered cars.

In Milwaukee, Wisconsin, Veronika Wright is converting a 1999 Jeep Wrangler to run on batteries, and she’s not planning to stop there. 

“I wanna be converting Jeeps, boats and also other industries,” Wright said.

It’s a sign of things to come for an industry in the midst of a planet-saving revolution.

Source: newsy.com

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Pace of Climate Change Sends Economists Back to Drawing Board

Economists have been examining the impact of climate change for almost as long as it’s been known to science.

In the 1970s, the Yale economist William Nordhaus began constructing a model meant to gauge the effect of warming on economic growth. The work, first published in 1992, gave rise to a field of scholarship assessing the cost to society of each ton of emitted carbon offset by the benefits of cheap power — and thus how much it was worth paying to avert it.

Dr. Nordhaus became a leading voice for a nationwide carbon tax that would discourage the use of fossil fuels and propel a transition toward more sustainable forms of energy. It remained the preferred choice of economists and business interests for decades. And in 2018, Dr. Nordhaus was honored with the Nobel Memorial Prize in Economic Sciences.

Inflation Reduction Act with its $392 billion in climate-related subsidies, one thing became very clear: The nation’s biggest initiative to address climate change is built on a different foundation from the one Dr. Nordhaus proposed.

offers tax credits, loans and grants — technology-specific carrots that have historically been seen as less efficient than the stick of penalizing carbon emissions more broadly.

The outcome reflects a larger trend in public policy, one that is prompting economists to ponder why the profession was so focused on a solution that ultimately went nowhere in Congress — and how economists could be more useful as the damage from extreme weather mounts.

A central shift in thinking, many say, is that climate change has moved faster than foreseen, and in less predictable ways, raising the urgency of government intervention. In addition, technologies like solar panels and batteries are cheap and abundant enough to enable a fuller shift away from fossil fuels, rather than slightly decreasing their use.

Robert Kopp, a climate scientist at Rutgers University, worked on developing carbon pricing methods at the Department of Energy. He thinks the relentless focus on prices, with little attention paid to direct investments, lasted too long.

California. But a federal measure in the United States, setting a cap on carbon emissions and letting companies trade their allotments, failed in 2010.

At the same time, Dr. Nordhaus’s model was drawing criticism for underestimating the havoc that climate change would wreak. Like other models, it has been revised several times, but it still relies on broad assumptions and places less value on harm to future generations than it places on harm to those today. It also doesn’t fully incorporate the risk of less likely but substantially worse trajectories of warming.

Dr. Nordhaus dismissed the criticisms. “They are all subjective and based on selective interpretation of science and economics,” he wrote in an email. “Some people hold these views, as would be expected in any controversial subject, but many others do not.”

Heather Boushey, a member of the White House’s Council of Economic Advisers who handles climate issues, says the field is learning that simply tinkering with prices won’t be enough as the climate nears catastrophic tipping points, like the evaporation of rivers, choking off whole regions and setting off a cascade of economic effects.

“So much of economics is about marginal changes,” Dr. Boushey said. “With climate, that no longer makes sense, because you have these systemic risks.” She sees her current assignment as similar to her previous work, running a think tank focused on inequality: “It profoundly alters the way people think about economics.”

To many economists, the approach pioneered by Dr. Nordhaus was increasingly out of step with the urgency that climate scientists were trying to communicate to policymakers. But a carbon tax remained at the center of a bipartisan effort on climate change, supported by a panoply of large corporations and more than 3,600 economists, that also called for removing “cumbersome regulations.”

speech in 2018, Dr. Nordhaus pegged the “optimal” carbon price — that is, the shared economic burden caused by each ton of emissions — at $43 in 2020. Gernot Wagner, a climate economist at Columbia Business School, called it a “woeful underestimate of the true cost” — noting that the prize committee’s home country already taxed carbon at $120 per ton.

another tack. Carbon prices, they reasoned, tend to hit lower-income people hardest. Even if the proceeds funded rebates to taxpayers, as many proponents recommended, similar promises by supporters of trade liberalization — that people whose jobs went offshore would get help finding new ones in a faster-growing economy — proved illusory. Besides, without government investment in low-carbon infrastructure, many people would have no alternative to continued carbon use.

“You’re saying, ‘Things are going to cost more, but we aren’t going to give you help to live with that transition,’” said Rhiana Gunn-Wright, director of climate policy at the left-leaning Roosevelt Institute and an architect of the Green New Deal. “Gas prices can go up, but the fact is, most people are locked into how much they have to travel each day.”

At the same time, the cost of technologies like solar panels and batteries for electric vehicles — in part because of huge investments by the Chinese government — was dropping within the range that would allow them to be deployed at scale.

For Ryan Kellogg, an energy economist who worked as an analyst for the oil giant BP before getting his Ph.D., that was a key realization. Leaving an economics department for the public policy school at the University of Chicago, and working with an interdisciplinary consortium including climate scientists, impressed on him two things: that fossil fuels needed to be phased out much faster than previously thought, and that it could be done at lower cost.

Just in the utility sector, for example, Dr. Kellogg recently found that carbon taxes aren’t meaningfully more efficient than subsidies or clean electricity standards in driving a full transition to wind and solar power. And as more essential devices can be powered by batteries, affordable electricity becomes paramount.

more useful for policymakers than broad, top-down economic models.

begun to look at the relationship between extreme weather and federal revenue. But because it’s still not clear how best to do that, other institutions are trying as well.

Carter Price, a mathematician at the nonprofit RAND Corporation, is working on a budget model that will incorporate the latest social science research, as well as climate science, to inform long-term policy decisions.

“This is a space where having more models early on would be better,” Dr. Price said. “Rather than someone has an assumption, that assumption goes into a model, nobody questions it and, 10 years later, we realize that assumption is pretty powerful and maybe not right.”

The larger lesson is that modern climate policy is a complex endeavor that calls for large, interdisciplinary teams — which is not historically how the economics field has operated.

“You can only do so much by writing things down on a single sheet of paper from your office at Yale,” said Dr. Kopp, of Rutgers. “That’s not how science gets done. That’s how a lot of economics gets done. But you run into limits.”

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Expansion of Clean Energy Loans Is ‘Sleeping Giant’ of Climate Bill

Tucked into the Inflation Reduction Act that President Biden signed last week is a major expansion of federal loan programs that could help the fight against climate change by channeling more money to clean energy and converting plants that run on fossil fuels to nuclear or renewable energy.

The law authorizes as much as $350 billion in additional federal loans and loan guarantees for energy and automotive projects and businesses. The money, which will be disbursed by the Energy Department, is in addition to the more well-known provisions of the law that offer incentives for the likes of electric cars, solar panels, batteries and heat pumps.

The aid could breathe life into futuristic technologies that banks might find too risky to lend to or into projects that are just short of the money they need to get going.

failure of Solyndra, a solar company that had borrowed about $500 million from the Energy Department, to criticize the Obama administration’s climate and energy policies.

Backers of the program have argued that despite defaults like Solyndra, the program has been sustainable overall. Of the $31 billion the department has disbursed, about 40 percent has been repaid and interest payments in the fiscal year that ended on Sept. 30, 2021, totaled $533 million — more money than the failed Solyndra loan.

The Energy Department’s loan programs began in 2005 under the George W. Bush administration but expanded significantly in the Obama era. The department provided a crucial loan that helped Tesla expand when it only sold expensive two-door electric sports cars; the company is now the world’s most valuable automaker.

Under the Trump administration, which played down the risks of climate change, the department’s loan office was much less active. The Biden team has been working to change that. Last month, the department said it planned to loan $2.5 billion to General Motors and LG Energy Solution to build electric-car battery factories in Michigan, Ohio and Tennessee.

complicate the qualification process.

  • Plug-In Hybrids: After falling behind all-electric cars, U.S. sales of plug-in hybrids have been surging. The high cost of electric cars and gasoline have given them an opening.
  • Car Crashes: Tesla and other automakers capture data from their vehicles to operate their products. Experts say the collected information could also improve road safety.
  • A Frustrating Hassle: The electric vehicle revolution is nearly here, but its arrival is being slowed by a fundamental problem: The chargers where people refuel these cars are often broken.
  • One beneficiary of the new loan money could be the Palisades Power Plant, a nuclear facility on Lake Michigan near Kalamazoo, Mich., that closed in May. The plant had struggled to compete in the PJM energy market, which serves homes and businesses in 13 states, including Michigan, New Jersey and Pennsylvania, and Washington, D.C.

    The Biden administration has made nuclear power a focal point of its efforts to eliminate carbon dioxide emissions from the power sector by 2035. The administration has offered billions of dollars to help existing facilities like the Diablo Canyon Power Plant — a nuclear operation on California’s coast that is set to close by the end of 2025 — stay open longer. It is also backing new technologies like small modular reactors that the industry has long said would be cheaper, safer and easier to build than conventional large nuclear reactors.

    The owner of the Palisades facility, Holtec International, said it was reviewing the loan program and other opportunities for its own small reactors as well as bringing the shuttered plant back online.

    “There are a number of hurdles to restarting the facility that would need to be bridged,” the company said in a statement, “but we will work with the state, federal government, and a yet to be identified third-party operator to see if this is a viable option.”

    Rye Development, a company based in West Palm Beach, Fla., that is working on several projects in the Pacific Northwest.

    geothermal power; old coal power plants as sites for large batteries; and old coal mines for solar farms. Such conversions could reduce the need to build projects on undeveloped land, which often takes longer because they require extensive environmental review and can face significant local opposition.

    “We’re in a heap of trouble in siting the many millions of acres of solar we need,” Mr. Reicher said. “It’s six to 10 million acres of land we’ve got to find to site the projected build out of utility scale solar in the United States. That’s huge.”

    Other developers are hoping the government will help finance technologies and business plans that are still in their infancy.

    Timothy Latimer is the chief executive and co-founder of Fervo Energy, a Houston company that uses the same horizontal drilling techniques as oil and gas producers to develop geothermal energy. He said that his firm can produce clean energy 24 hours a day or produce more or less energy over the course of a day to balance out the intermittent nature of wind and solar power and spikes in demand.

    Mr. Latimer claims that the techniques his firm has developed will lower the cost for geothermal power, which in many cases is more expensive than electricity generated from natural gas or solar panels. He has projects under development in Nevada, Utah, Idaho and California and said that the new loan authority could help the geothermal business expand much more quickly.

    “It’s been the talk of the geothermal industry,” Mr. Latimer said. “I don’t think we were expecting good news a month ago, but we’re getting more ready for prime time. We have barely scratched the surface with the amount of geothermal that we can develop in the United States.”

    For all the potential of the new law, critics say that a significant expansion of government loans and loan guarantees could invite more waste and fraud. In addition to Solyndra, the Energy Department has acknowledged that several solar projects that received its loans or loan guarantees have failed or never got off the ground.

    A large nuclear plant under construction in Georgia, Vogtle, has also received $11.5 billion in federal loan guarantees. The plant has been widely criticized for years of delays and billions of dollars in cost overruns.

    “Many of these projects are funded based on political whim rather than project quality,” said Gary Ackerman, founder and former executive director of the Western Power Trading Forum, a coalition of more than 100 utilities and other businesses that trade in energy markets. “That leads to many stranded assets that never live up to their promises and become examples of government waste.”

    But Jamie Carlson, who was a senior adviser to the energy secretary during the Obama administration, said the department learned from its mistakes and developed a better approach to reviewing and approving loan applications. It also worked more closely with businesses seeking money to ensure that they were successful.

    “It used to be this black box,” said Ms. Carlson, who is now an executive at SoftBank Energy. “You just sat in purgatory for like 18 months and sometimes up to two years.”

    Ms. Carlson said the department’s loans serve a vital function because they can help technologies and companies that have demonstrated some commercial success but need more money to become financially viable. “It’s there to finance technologies that are proven but perhaps to banks that are perceived as more risky,” she said.

    Energy executives said they were excited because more federal loans and loan guarantees could turbocharge their plans.

    “The projects that can be done will go faster,” said William W. Funderburk Jr., a former commissioner at the Los Angeles Department of Water and Power who now runs a water and energy company. “This is a tectonic plate shift for the industry — in a good way.”

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    Inflation Reduction Act Pushes Financial Incentives, Reduced Costs

    The Inflation Reduction Act offers tax credits and other incentives for switching to cleaner energy alternatives.

    It has been called groundbreaking and historic by some, expensive and futile by others. But the parts of the Inflation Reduction Act that deal with climate change could dramatically impact the lives of many Americans — and soon. 

    “The Inflation Reduction Act will add another $370 billion in clean energy tax credits in reconciliation, including incentives to accelerate domestic production of solar panels, wind turbines, batteries and critical materials process,” President Joe Biden said.

    Tackling climate change has been debated for so long that many Americans might be inclined to chalk these words and actions up to more political chatter with little results.  

    “It’s because American people want their government to do something so they can go into August recess and they can get ready for elections and really brag about so many things,” Haddad Media CEO Tammy Haddad said. “If you read every single poll — and you don’t have to read a poll, you can talk to your neighbor — things are bad. The weather is bad. You can’t get what you want. Should I wear a mask? Shouldn’t I wear a mask? All of these things. And then finally, from the government comes certainty.”

    Here is how you may feel the impact of the legislation. 

    If you already own an electric vehicle, you are probably already seeing huge savings. Currently, EV drivers receive a $7,500 tax credit for a new vehicle and a $4,000 tax credit for used vehicles. This legislation extends that tax credit until the end of 2032, with the hope of providing a greater incentive for drivers to switch from gas to electric.  

    Despite the lucrative switch to plug-ins, there are some hurdles that might keep you years away from purchasing an electric vehicle, like supply chain. According to the Wall Street Journal, China alone currently regulates 75% of all lithium-ion battery cell manufacturing. That’s why Sen. Joe Manchin insists the tax credit will force automakers to move their EV supply chain away from China and to the U.S.

    For consumers looking to purchase larger electric vehicles like trucks, vans and SUVs, there is a cost threshold. The cost of the vehicle must be under $80,000 to see those savings. And there are also income limits. People have to make under $150,000 to take advantage of the tax credit.  

    As the temperatures rise and fall around the world, the demand to cool and heat us in extreme condition will likely grow.  

    According to a study by The Climate Institute, 20% of the total electricity use in buildings around the world goes toward air conditioning units and electric fans.  

    The legislation will provide a tax credit that covers 30% the cost of installing energy efficient air conditioners, water heaters, furnaces and other cooling and heating equipment. Savings could be as high as $1,200 per household.   

    For low- and moderate-income households, this legislation could provide up to $14,000 to cover the upgrade cost of your appliances.  

    For homes with outdated windows and doors, you can receive up to $1,200 in rebates a year to upgrade your home over the next 10 years. 

    The legislation will also cover up to 30% of the pricey installation cost of a solar panel system to your home, saving you nearly $6,000. 

    Source: newsy.com

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