Overview
Lucid is raising $3bn via a stock offering, with around 2/3 coming from Saudi Arabia's Public Investment Fund (PIF). This is not surprising, as PIF owns more than 60% of Lucid. Lucid, along with other EV start-ups, is burning through cash. This raise is critical, as Lucid has announced ever-increasing losses, whilst trying to strengthen its balance sheet position. This raise gives the company enough capital for at least a year. The reason for this raise is a culmination of the impact of the Price War, fears of a recession and frankly, underestimating the liquidity runway needed to manufacture EVs. Market consensus is undecided on Lucid, as the cash burn rate is alarming however PIF is a significant shareholder, with deep pockets.
S&P has released data that states that in Q1 23, US imports of lithium-ion batteries increased by 66% (235,386 metric tons), compared to Q1 22. This is the 11th consecutive quarter of rising battery imports and set a new record, c24% higher than the previous record, set in Q4 2022. Simultaneously, the USA has seen a major increase in the construction of lithium-ion battery factories, due to the substantial manufacturing tax incentives provided by the IRA. The USA is aggressively trying to localize the production of lithium, so it can be less dependent on China. This is great news for the EV market, as this increases competition and availability, which should ramp up EV output (esp. in America), in the coming years.
GM and Stellantis paid a combined $363.7m in penalties after failing to meet the USA Corporate Average Fuel Economy (CAFE) requirements for recent model years. Stellantis had to pay $235.5m for their 2018 and 2019 model-year fuel economy shortfalls. Whereas GM had to pay $128.2m for their 2016 and 2017 models.
Greater Bay Technology, a Chinese start-up, states that its new EV battery, the Phoenix cell, can charge at normal speeds, in temperatures ranging from -4F to 77F in 5 minutes. It can do this by using superconducting materials and thermal management to allow the battery to charge within 6 minutes in all weather conditions. This is an important milestone, as one of the drawbacks of EV batteries, historically, has been the loss of charging efficiency in cold weather. Furthermore, the company claims that these cells have a 1,000km range. This follows on from Gotion High-Tech’s announcement a couple of weeks ago, that it has a LMFP EV battery with a 1,000km range also. Currently, these range claims, from both parties, have not been substantiated. Greater Bay Technology plans to launch its battery next year in Aion EVs.
Volvo is planning to sell its, first entry-level EV, the EX30 SUV, for $34,950 in the USA and €36,000 in Europe. The EX30 will be a small(er) EV, compared to its peers, and therefore the price point is similar to its ICE SUV counterpart. First deliveries are expected in 2024 (summer) in the USA. Interestingly, the USA EX30 battery will have NMC chemistry (lithium, nickel, manganese, and cobalt) and enables the EX30 Single Motor Extended Range to offer an e275 miles of range between charges. Whereas the European EX30 will offer an entry-level Single Motor powertrain with an LFP battery pack with an estimated range of around 200 miles.
VW, in its joint venture with SAIC Motor, has transformed one of its plants in Shanghai for the production, research, and development of EVs. This is another positive sign from VW, signalling how important it views China. VW is focussing on (re)gaining market share in China, as it lags behind Tesla and local brands (such as BYD). Analysts are waiting until Q4 2023, to see how these strategic decisions will impact VWs results.
Ola Electric plans to IPO at the end of 2023 or Q1 2024, after appointing Goldman Sachs and Kotak Mahindra Capital to manage the potential IPO. Ola specialises in 2-wheeler EVs and is a major rival of Uber in India. The company is seeking a valuation of more than $5bn, as the company was valued this when it last raised in 2022 and has the backing of SoftBank Group and Tiger Global Management. Ola has strongly performed so far this year, selling 30,000 scooters in April alone however the CEO is keen to IPO quickly, to further ramp up its output and product offerings.
Electrify America and BMW, in North America, have joined forces to offer, first-time i5 owners, 2 years of complimentary 30-minute charging sessions. New owners can activate this charging benefit via the My BMW app. The i5 is set to launch later this year and this should help increase sales. BMW has been cautiously and conservatively increasing its EV offering, which is still very small compared to its ICE portfolio, however, this is a step in the right direction. BMW seem to be entering the EV market by leveraging its popular brands, such as the popular 5 Series, to gain traction in the (North American) EV market.
The British Government has announced a new £7m fund to support reliable connectivity in remote areas in the UK. This is a result of the new report published called Unleashing Rural Opportunity, by Secretary of State for Rural Affairs, Thérèse Coffey. The 4 broad themes of the report are connectivity, growth, housing, and communities. The report highlights accelerating electricity network connections to ensure rural areas can manage the additional consumer electrical inputs such as electrified heat and EV charging.
Deals
Daimler Truck and Toyota Motors have struck a preliminary deal to combine their truck units in Japan. According to MoU the businesses of, Daimler-owned, Mitsubishi Fuso Truck and Bus Corp and Toyota subsidiary Hino Motors would be combined under a holding company. The shares of the new company are expected to be listed on the Tokyo Stock Exchange's prime market. The sales organisation globally will remain separate, but the two companies will pursue joint development, procurement, and production.
ZParq, a Swedish marine propulsion start-up, has successfully raised $2.68m in its Seed round. The capital raised will be used to bring its compact electric marine motors, powertrains, and other adjacent technologies to market.