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Stellantis and CATL to Build $4.33 Billion EV Battery Factory in Spain

Stellantis and Chinese battery manufacturer CATL have announced a joint investment of €4.1 billion ($4.33 billion) to establish a new electric vehicle (EV) battery factory in Zaragoza, Spain. The two companies will form a 50-50 joint venture and aim to start production by the end of 2026. The plant could have a production capacity of up to 50 gigawatt hours, depending on market growth and regulatory support.


Boost to European EV Battery Production

The collaboration between Stellantis and CATL is part of Europe’s efforts to reduce its reliance on Asia for EV batteries and increase its competitiveness against the United States in the race for green subsidies. The move comes as the region continues to attract battery manufacturers despite challenges such as regulatory delays, production issues, and slower-than-expected demand for electric vehicles.

In recent months, European battery makers have faced significant setbacks, with Sweden’s Northvolt filing for Chapter 11 bankruptcy after losing a major customer. However, the new Zaragoza plant represents a step forward for both companies, leveraging the region’s clean energy initiatives.


CATL’s Expansion in Europe

The Zaragoza factory will be CATL’s third European plant, following its existing facilities in Germany and Hungary. The German plant, established six years ago, has an investment of €1.8 billion, with a planned capacity of 14 gigawatt hours. The Hungarian plant, under construction, will see a €7.3 billion investment and target a much larger capacity of 100 gigawatt hours.


Stellantis’ Broader EV Strategy

Alongside its partnership with CATL, Stellantis is a major investor in the ACC battery joint venture, which also includes Mercedes and TotalEnergies. ACC has begun production in France, although the development of additional plants in Italy and Germany has faced delays due to a dip in EV demand.

Scientists Discover Rare Metals in Coal Waste, Offering Potential for Clean Energy Transition

Scientists have uncovered a surprising potential source of rare earth metals in the vast amounts of coal ash left behind by power plants, presenting a new opportunity to advance clean energy technologies. These metals, essential for electric vehicles, solar panels, and wind turbines, are critical to the global shift away from fossil fuels, but their supply is limited. According to research led by the University of Texas at Austin, coal ash could contain up to 11 million tons of rare earth elements, worth around $8.4 billion. This is nearly eight times the amount currently available in U.S. reserves.

While coal ash has long been a concern due to its toxicity, the discovery of valuable rare earth elements within it could offer a way to recycle this waste and reduce reliance on mining. Bridget Scanlon, a research professor at the University of Texas, emphasized the opportunity to “close the cycle” by turning waste into a resource. The rare earth metals in coal ash, including scandium, neodymium, and yttrium, are crucial for clean technologies and are typically difficult and expensive to extract from conventional ore deposits.

Despite the name “rare earths,” these metals are not rare in nature but are challenging to separate from their ores. With global demand for these elements expected to rise sharply in the coming years, the need for alternative sources is becoming urgent. The International Energy Agency predicts that demand could increase up to sevenfold by 2040, yet the U.S. currently imports over 95% of its rare earths, mainly from China, presenting both supply chain risks and national security concerns.

In response, there has been growing interest in unconventional sources of these metals, with coal and its byproducts emerging as a viable option. Coal ash is produced in massive quantities—around 70 million tons annually in the U.S.—and contains trace amounts of rare earth elements. The extraction process would be significantly more efficient than traditional mining, as much of the material is already processed, leaving only the need to extract the metals.

However, the extraction process is not without challenges. The coal ash from different regions of the U.S. varies in its concentration of rare earths. For example, coal ash from the Appalachian Basin has higher concentrations but can only yield 30% of the available metals. In contrast, coal ash from the Powder River Basin, with lower concentrations, allows for up to 70% of the rare earth elements to be extracted.

Despite these variations, experts caution that the extraction process could be costly, involving strong acids and bases that are both expensive and environmentally hazardous. The environmental impact of extracting these metals, particularly when coal ash contains contaminants like mercury, arsenic, and lead, is another concern.

However, the research team argues that the financial value of the metals could offset the costs of improving the management and storage of coal ash. The Biden administration has already invested $17.5 million into projects focused on extracting rare earths from coal byproducts, aiming to enhance national security, revitalize energy and manufacturing sectors, and create jobs.

While some worry that focusing on coal ash could inadvertently encourage further coal production, Scanlon reassured that the plan focuses on utilizing existing waste, with over 2 billion tons of coal ash already stored across the U.S. This approach is aimed at extracting value without incentivizing the continued use of coal, as most of the focus is on “legacy waste.”

The ultimate goal is to explore a range of valuable products that can be derived from coal waste, contributing to a more sustainable approach to resource extraction while advancing the clean energy transition.

 

Britain Forecasted to Reach Peak Gasoline This Year as Electric Vehicles Gain Traction

Britain is set to reach a milestone in 2024, with the country expected to hit “peak petrol” — a moment when the number of gasoline-powered cars will begin to significantly decline, signaling a shift towards electric vehicles (EVs).

According to a report published by Auto Trader, the number of gasoline-powered cars on British roads is forecast to drop nearly by half over the next decade as drivers increasingly switch to EVs. In 2024, there are expected to be 18.7 million gasoline cars, a number projected to fall to 11.1 million by 2034.

Meanwhile, the number of EVs on the roads is expected to skyrocket from 1.25 million in 2024 to 13.7 million by 2034. The EV share of new car sales is projected to increase from 18% in 2024 to 23% in 2025, although this still falls short of the U.K. government’s target of 28% under the Zero Emissions Vehicle (ZEV) mandate.

“Peak petrol marks a genuine turning point for the U.K.,” said Ian Plummer of Auto Trader. “Over the next decade, we expect a seismic shift in British motoring as the number of petrol cars falls sharply and EVs take a larger share.”

Despite challenges such as the introduction of ZEV targets and supply constraints, Plummer noted that strong demand for used cars continues.

ZEV Mandate and Industry Pressures

The U.K.’s ZEV mandate requires that at least 22% of new cars sold be zero-emission vehicles, with the target set to rise to 28% in 2025, 80% by 2030, and 100% by 2035. However, the mandate has faced criticism, particularly as the cost of EVs remains high, leading to concerns over the industry’s ability to meet targets without putting businesses at risk.

The Society of Motor Manufacturers and Traders (SMMT) has warned that government targets could harm the industry’s viability and job security, citing recent closures like Stellantis’ Vauxhall van factory in Luton, which threatens over 1,000 jobs.

Despite these concerns, 14 NGOs and campaign groups sent an open letter urging the U.K. government to uphold the ZEV mandate, arguing that it remains one of the country’s most significant measures for reducing carbon emissions.

A U.K. government spokesperson confirmed that a consultation will be launched soon to explore how to best support the industry in reaching its target of phasing out internal combustion engine vehicles by 2030. The government has also allocated £2 billion ($2.54 billion) to support domestic manufacturing during the transition and committed over £300 million to boost EV adoption.