Why the future of transportation in the US remains battery electric (by James Carter)
What the heck is up with the electric vehicle industry??
If you have read the North American media recently you would get the picture that the EV industry is in decidedly poor shape and the future is very uncertain.
Here’s some recent news that we’ve seen in the last few months:
It’s unfortunately all true.
So, is this the end of electric vehicles (EVs)? What happened? What changed??
Let me be VERY clear: NOTHING has changed in the medium- and long-term outlook for EVs.
EVs will still be the dominant form of road transportation by the 2030s, and like every new technologically innovative industry that changes people’s behaviours, adoption has its pain points as the industry develops.
Therefore, it’s really important to understand the recent history and dig into why we are at this point with EVs today.
| EVs – A pathway forward
For decades people have been thinking about how to drastically reduce pollution in our transportation, a dream of zero emissions and drastically reducing our reliance on oil and gas.
EVs offered a pathway forward for zero emissions motoring that both completely nixed harmful tailpipe pollution, and drastically lowered carbon emissions over the vehicle’s life.
The “WHY” of EV was clear.
Back in the early 2010s the dream of the electric car came to fruition with the advent of the large lithium -ion battery, suitable for use in cars and trucks. The introduction of vehicles like the Nissan Leaf, and soon after the Tesla Model S, resulted in the volume production of EVs.
These were breakthrough vehicles, and as the decade progressed, they were soon followed by other great purpose built EVs like the BMW i3, Chevrolet Bolt and later the extremely popular Tesla Model 3. What’s more, public chargers began to be installed and EV long distance travel for the middle class became a reality.
| The COVID pandemic Supercharged EVs
Then something crazy happened, COVID hit. This once in a century pandemic knocked the world off its feet.
Governments pumped tons of money into the economy and EV purchasing and investing became the flavour of the month. Sales took off, share prices skyrocketed and the EV future looked like it had come! Between 2020 and 2023:
• Tesla became a trillion-dollar company
• Ford had hundreds of thousands of pre-orders for the F150 Lightning electric pickup
• EVs sold at dealers for $10,000 or more over list
• Governments mandated zero-emission vehicle (ZEV) sales mixes
• Chargers were rolled out at breakneck speed
• A tidal wave of new EV models was launched
• Model Y became the top selling passenger vehicle in the US, only behind F150 and GM trucks. In fact, it became the world’s best-selling vehicle in 2023.
An EV did this?? It sure did! Ten years ago, no one would have forecast that!
| The bubble bursts
Yet, the unfortunate harsh reality was that it became an economic bubble that burst, with the onset of inflation and then high interest rates. Suddenly, car payments became much more expensive, and the whole automotive industry slowed.
This resulted in wildly over valued EV share prices tanking, and some poorly thought out, newly formed EV SPACs (Special Purpose Acquisition Companies) began to look tenuous in their viability, and some went under. A look at the Tesla stock price over time gives a good indication of what happened. They are down by 50% on their all time high, but many multiples ahead of their 2018 valuation.
Yet, something crazy happened: EV sales DID NOT TANK! They kept climbing, although at a slower rate than previously. It was clear that the message of “WHY EV” had cemented itself in consumer minds.
However, OEMs, which had planned for extremely high levels of EV mix, based on 100% year on year sales increases, got caught out when EV sales ONLY expanded at 10% to 30% year on year. The result was oversupply, on expanding sales. In other words, a failure to forecast well was an industry wide problem with industry wide consequences.
Yet, let’s remember how far EVs have come. Ten years ago, EV sales were well under 1% of total US sales. Today they’re north of 7% of the national US sales mix, and over 25% in California. By 2035 it will be 100% in California, as well as in Canada and states that follow California’s regulations, which account for nearly 50% of North America’s new car sales (not including Mexico).
Globally, EV sales were up 30% to 3.4 million in Q1 2024 (the same as the annual volume number just 4 years ago), and some time in Q3 this year cumulative global EV sales to date will hit 50 million, with the IEA (The International Energy Agency) forecasting 16.4 million sales this year.
In other words, EV sales in North America are only on one trajectory – up. There’s no going back.
It’s worth taking a deep dive into the Q1 2024 US sales numbers to gain a deeper understanding of the current situation.
While the US EV registrations rose by 3.8% year on year, compared to the usual 30 to 50% growth we’ve been seeing, it’s well short of expectations. However, it is still (just) ahead of the 3.5% US automotive market increase over the same period.
The first place to look is Tesla. They are the “800-Pound EV Gorilla,” with over 60% US EV market share in 2023. Like Model 3, Model Y has been a runaway success due to its mix of performance space, new technology and access to the ubiquitous Tesla Supercharging network. Because of this large market share, any Tesla success or failure quickly superimposes itself on the broader EV market.
Despite Tesla’s success, sales for Q1 2024 have dropped by 13% versus Q1 2023, a very rare event for the brand. There’s a couple of reasons for this. The first is that their key vehicle, Model Y, is starting to age. It’s been on sale for over 4 years with virtually no hardware changes, and its popularity is beginning to wane as newer competitors go on sale.
The second is the production ramp up of the refreshed Model 3 “Highland” is taking longer than expected. Even though it’s a brand-new update of a very popular vehicle, sales have been off nearly 50%.
In total, with Tesla off by 13%, their share was down to just over 50% of the EV market, and it thus held down the entire segment.
However, for most EVs without a Tesla badge, the story was very different. After Tesla, the top two OEMs for EVs are Hyundai/Kia and Ford (both of whom use SK On batteries) who had sales well up on Q1 2023, with increases of 56% and 86% respectively. These are numbers much more typical of the growth we’ve previously seen with OEMs, and it is repeated with Rivian, Mercedes, BMW and Toyota.
The major reason for this growth is a ramp up of incentives, and a focus on leasing. For OEMs that do not make EVs in the US (or Canada or Mexico), they do not qualify for the USD 7,500 federal incentive, except if the vehicle is leased. By applying the government incentive, adding a factory incentive and a customer down payment, incredibly attractive monthly payments have been offered for consumers, from as low as USD 240 per month. These sorts of offers have made EVs available for LESS than an equivalent IC vehicle, and with huge energy savings to be had on top, that’s a very tempting offer many retail customers are taking advantage of.
| What’s next for EVs? Only UP!
Looking into the short-term future, things will only get better, and there’s several reasons for that.
The first is that the “800-Pound EV Gorilla,” Tesla, will be back with Model 3 Highland production issues sorted, and a major update of the Model Y due in early 2025. Simply put, they won’t be resting on their laurels, and significant sales volume will return.
The second is new models from many different brands with more affordable prices launching soon. A plethora of a high-volume models with low starting prices are now dropping, including the Chevrolet Equinox, Volvo EX30 and soon the Kia EV3. This will only expand in 2025 and 2026. While we won’t see Chinese brands entering the US or Canadian market any time soon, they are selling in a big way in Mexico. Make no mistake, the impact of the Chinese OEMs will force OEMs selling in US and Canada to significantly reduce prices, speed up engineering development and offer more compelling product, even if the urgency is somewhat buffered by tariffs.
The third is the localization of production for key EV models. By building in the North American Free Trade Agreement (NAFTA) countries, the USD 7,500 US federal credit is applicable on cash purchase and finance sales, as well as leased vehicles, thereby opening up the incentive to everyone. The first to localize was the Volkswagen ID4, and this is now being followed by the Hyundai IONIQ 5 and Kia EV9, which will result in a significant volume increase. Most other OEMs are following with local EV production over the next 3 to 4 years, including Honda, Toyota, Volvo, Mercedes, BMW and others.
| Are hybrids the answer?
Another piece to this story is the growth in hybrid sales, which in pure volumes terms, is similar to that of EVs. Many have pointed to this as a reason that EV sales are flat and that IC vehicles have a long-term future. What we’ve seen from the customer research done here at Vision Mobility is that hybrid buyers are ones that are struggling to make the jump from IC to EV, but still want to take a step towards a cleaner, more efficient vehicle. Buyers aren’t going from EV to hybrid, in fact it’s quite the opposite.
Hybrids introduce drivers to electrons, and electrons are addictive, with the only way that they can be fully satiated is to go full EV. If one looks at previous vehicles for EV owners, there’s almost always a hybrid in there, yet once in an EV, they don’t go back as EV retention is generally north of 80%.
Moreover, plug in hybrids offer buyers the same experience of charging as EVs, thereby increasing the comfort level further.
These thoughts are closely reflected in current US policy direction and by forward looking incumbent OEMs. Jennifer Granholm, the US Secretary for Energy, said hybrids “are the step that will lead to (electrification). We are bullish on that.”
Moreover, Korean OEM Kia Motors recently said that “hybrids aren't a threat to EVs but are the perfect gateway to electrification.”
While hybrids offer buyers a “transitional comfort”, once the smoothness and performance of an EV drive is experienced and the realization occurs that it will suit their lifestyle just fine, there’s no going back.
The point is this: hybrid owners of today are the EV owners of tomorrow.
| All new technology has bumps in the road to success, EVs included
What this all adds up to is sustained medium- and long-term growth for EVs, and this is exactly the forecast from both BNEF (Bloomberg New Energy Finance) and IEA.
On the other side of the COVID bubble, the WHY of EV hasn’t changed. The dream of clean air, lower transportation emissions and less reliance on oil and gas is not just still there; we are now FAR closer to that dream.
Just like the dot com bubble 20 years ago, the EV bubble will have end results that are no different. The weak players are shaken out, but the strong players will not just survive, they’ll flourish. No one today can imagine going back to a world without the internet, and the same will happen with EVs in 20 years from now. Fundamentally, EVs are a far superior technology to internal combustion (IC) cars, and once the dust settles, EV growth will normalise until there are no IC models left on the market.
In other words, the learning is nothing has changed, except that on the road to an EV reality, the dream came with a few bumps, just like almost every other major technological shift in the last 200 years.
■ Related articles
- SK On develops polymer electrolytes for lithium metal batteries
- Soon EVs will be the only vehicles purchased by lower mainstream buyers (by James Carter)
- Take the power with you: Why V2L is the must-have feature for new EVs (by James Carter)
- A passport ensures ethical transparency and sustainability to the battery minerals supply chain (by James Carter)
2024. 07. 04
|
World’s first* supply chain established for more sustainable polyester fiber based on CO2-derived material as well as renewable and bio-based materials
A consortium of seven companies across five countries has jointly established a supply chain for more sustainable polyester fiber. Instead of fossil materials, renewable and bio-based materials as well as materials produced via carbon capture and utilization (CCU para-xylene)** will be used in the manufacturing of polyester fibers for THE NORTH FACE brand in Japan. The project parties are Goldwin, in the role of the Project Owner, Mitsubishi Corporation, Chiyoda Corporation (all three from Japan), SK Geo Centric (South Korea), Indorama Ventures (Thailand), India Glycols (India) and Neste (Finland).
The polyester fiber produced from the project is planned to be used by Goldwin for a part of THE NORTH FACE products including sports uniforms in July 2024. After that, the launch of further products and brands of Goldwin will be considered.
The seven companies apply a mass balancing approach*** to ensure credible traceability of material streams throughout the supply chain and will jointly continue to proactively promote the de-fossilization of materials to contribute to a more sustainable society.
“This consortium has great significance as it is the first case where multiple companies gather under the same of reducing carbon by making sustainable polyester that will eventually be used in clothing products in the final stage,” said an official from SK Geo Centric. “This is just the beginning. We will strive to keep creating greater synergy through cooperation with global companies.”
*World’s first: This refers to the first time CCU para-xylene (direct synthesis from CO) is applied and also to the first time a polyester is made without the use of fossil materials in collaboration among upstream material companies and a downstream apparel company through mass balancing, according to the companies’ research.
**CCU para-xylene: Regarding the production of para-xylene derived from CO2 as a raw material, the University of Toyama, HighChem Company Limited, Nippon Steel Engineering Co. Ltd., Nippon Steel Corporation, Chiyoda Corporation and Mitsubishi Corporation were awarded in 2020 as a NEDO‘s project (New Energy and Industrial Technology Development Organization) "Technology Development for Carbon Recycling and Next Generation Thermal Power Generation/Technology Development for CO2 Emission Reduction and Effective Utilization" and are conducting the joint research and development. This project is to supply CO2-derived para-xylene as a trial, which was produced during the operation process of a pilot plant installed in Chiyoda Corporation's Koyasu Research Park since March 2022.
***Mass balance / Mass balancing approach: A process that tracks the amount and sustainability characteristics of materials and enables allocation of such to a specific portion of the product in proportion to the input of the raw materials with sustainability characteristics, when they are mixed with other materials in the process of manufacturing and distribution of products.
[Photo] The establishment of a sustainable polyester supply chain by the consortium formed by SK Geo Centric in collaboration with global petrochemical, fiber, and clothing companies
2024. 07. 05
|
SK On recognized as “best supplier” by Ferrari
■ SK On recognized for driving continuous improvement
SK On announced today it has been recognized by Italian luxury sports carmaker during the Podio Ferrari supplier convention.
SK On was one of the eight companies that was recognized at this year’s Podio Ferrari in Maranello, Italy, on June 26. The traditional event hosted by Ferrari saw the attendance of some 700 suppliers and strategic contributors of the automaker, emphasizing their specific contribution to the Prancing Horse’s technological progress, competitiveness and innovation.
SK On received the supplier award in the Fearless Organization category for its resolution, rigor and transparency in having addressed Ferrari's challenging technological needs in the development of cells for the batteries of Ferrari’s most powerful sports cars since 2019.
The company started providing battery cells for Ferrari with the launch of the marque’s first-ever range supercar and Plug-in Hybrid Electric Vehicle (PHEV), the SF90 Stradale, and its open-top variant, the SF90 Spider. SK On’s cells are also used in the battery that powers the 296 GTB and the 296 GTS PHEVs that were launched in 2021 and 2022, respectively.
In March, SK On signed a memorandum of understanding (MOU) with Ferrari to renew the two companies’ on-going collaboration and share valuable insights into the innovation of cell technology. Under the MoU, these exchanges will help both companies envision new possibilities to drive continuous improvement.
“We are honored to be recognized at the Podio Ferrari,” said Chung Goo-pil, Head of Europe Sales at SK On. “We are working together to combine each company’s expertise to proactively support Ferrari’s drive to envision new potential solutions for its high-performance electric vehicles.”
[Photo] Chung Goo-pil (right), Head of Europe Sales at SK On, and Gianmaria Fulgenzi (left), Chief Product Development Officer at Ferrari, pose for a photo at Podio Ferrari in Maranello, Italy, on June 26. (Photo provided by Ferrari)
■ Related articles
- SK On and Ferrari to lead innovation in battery cell technology
2024. 06. 28
|
INSIGHT
Why the future of transportation in the US remains battery electric (by James Carter)
What the heck is up with the electric vehicle industry??
If you have read the North American media recently you would get the picture that the EV industry is in decidedly poor shape and the future is very uncertain.
Here’s some recent news that we’ve seen in the last few months:
It’s unfortunately all true.
So, is this the end of electric vehicles (EVs)? What happened? What changed??
Let me be VERY clear: NOTHING has changed in the medium- and long-term outlook for EVs.
EVs will still be the dominant form of road transportation by the 2030s, and like every new technologically innovative industry that changes people’s behaviours, adoption has its pain points as the industry develops.
Therefore, it’s really important to understand the recent history and dig into why we are at this point with EVs today.
| EVs – A pathway forward
For decades people have been thinking about how to drastically reduce pollution in our transportation, a dream of zero emissions and drastically reducing our reliance on oil and gas.
EVs offered a pathway forward for zero emissions motoring that both completely nixed harmful tailpipe pollution, and drastically lowered carbon emissions over the vehicle’s life.
The “WHY” of EV was clear.
Back in the early 2010s the dream of the electric car came to fruition with the advent of the large lithium -ion battery, suitable for use in cars and trucks. The introduction of vehicles like the Nissan Leaf, and soon after the Tesla Model S, resulted in the volume production of EVs.
These were breakthrough vehicles, and as the decade progressed, they were soon followed by other great purpose built EVs like the BMW i3, Chevrolet Bolt and later the extremely popular Tesla Model 3. What’s more, public chargers began to be installed and EV long distance travel for the middle class became a reality.
| The COVID pandemic Supercharged EVs
Then something crazy happened, COVID hit. This once in a century pandemic knocked the world off its feet.
Governments pumped tons of money into the economy and EV purchasing and investing became the flavour of the month. Sales took off, share prices skyrocketed and the EV future looked like it had come! Between 2020 and 2023:
• Tesla became a trillion-dollar company
• Ford had hundreds of thousands of pre-orders for the F150 Lightning electric pickup
• EVs sold at dealers for $10,000 or more over list
• Governments mandated zero-emission vehicle (ZEV) sales mixes
• Chargers were rolled out at breakneck speed
• A tidal wave of new EV models was launched
• Model Y became the top selling passenger vehicle in the US, only behind F150 and GM trucks. In fact, it became the world’s best-selling vehicle in 2023.
An EV did this?? It sure did! Ten years ago, no one would have forecast that!
| The bubble bursts
Yet, the unfortunate harsh reality was that it became an economic bubble that burst, with the onset of inflation and then high interest rates. Suddenly, car payments became much more expensive, and the whole automotive industry slowed.
This resulted in wildly over valued EV share prices tanking, and some poorly thought out, newly formed EV SPACs (Special Purpose Acquisition Companies) began to look tenuous in their viability, and some went under. A look at the Tesla stock price over time gives a good indication of what happened. They are down by 50% on their all time high, but many multiples ahead of their 2018 valuation.
Yet, something crazy happened: EV sales DID NOT TANK! They kept climbing, although at a slower rate than previously. It was clear that the message of “WHY EV” had cemented itself in consumer minds.
However, OEMs, which had planned for extremely high levels of EV mix, based on 100% year on year sales increases, got caught out when EV sales ONLY expanded at 10% to 30% year on year. The result was oversupply, on expanding sales. In other words, a failure to forecast well was an industry wide problem with industry wide consequences.
Yet, let’s remember how far EVs have come. Ten years ago, EV sales were well under 1% of total US sales. Today they’re north of 7% of the national US sales mix, and over 25% in California. By 2035 it will be 100% in California, as well as in Canada and states that follow California’s regulations, which account for nearly 50% of North America’s new car sales (not including Mexico).
Globally, EV sales were up 30% to 3.4 million in Q1 2024 (the same as the annual volume number just 4 years ago), and some time in Q3 this year cumulative global EV sales to date will hit 50 million, with the IEA (The International Energy Agency) forecasting 16.4 million sales this year.
In other words, EV sales in North America are only on one trajectory – up. There’s no going back.
It’s worth taking a deep dive into the Q1 2024 US sales numbers to gain a deeper understanding of the current situation.
While the US EV registrations rose by 3.8% year on year, compared to the usual 30 to 50% growth we’ve been seeing, it’s well short of expectations. However, it is still (just) ahead of the 3.5% US automotive market increase over the same period.
The first place to look is Tesla. They are the “800-Pound EV Gorilla,” with over 60% US EV market share in 2023. Like Model 3, Model Y has been a runaway success due to its mix of performance space, new technology and access to the ubiquitous Tesla Supercharging network. Because of this large market share, any Tesla success or failure quickly superimposes itself on the broader EV market.
Despite Tesla’s success, sales for Q1 2024 have dropped by 13% versus Q1 2023, a very rare event for the brand. There’s a couple of reasons for this. The first is that their key vehicle, Model Y, is starting to age. It’s been on sale for over 4 years with virtually no hardware changes, and its popularity is beginning to wane as newer competitors go on sale.
The second is the production ramp up of the refreshed Model 3 “Highland” is taking longer than expected. Even though it’s a brand-new update of a very popular vehicle, sales have been off nearly 50%.
In total, with Tesla off by 13%, their share was down to just over 50% of the EV market, and it thus held down the entire segment.
However, for most EVs without a Tesla badge, the story was very different. After Tesla, the top two OEMs for EVs are Hyundai/Kia and Ford (both of whom use SK On batteries) who had sales well up on Q1 2023, with increases of 56% and 86% respectively. These are numbers much more typical of the growth we’ve previously seen with OEMs, and it is repeated with Rivian, Mercedes, BMW and Toyota.
The major reason for this growth is a ramp up of incentives, and a focus on leasing. For OEMs that do not make EVs in the US (or Canada or Mexico), they do not qualify for the USD 7,500 federal incentive, except if the vehicle is leased. By applying the government incentive, adding a factory incentive and a customer down payment, incredibly attractive monthly payments have been offered for consumers, from as low as USD 240 per month. These sorts of offers have made EVs available for LESS than an equivalent IC vehicle, and with huge energy savings to be had on top, that’s a very tempting offer many retail customers are taking advantage of.
| What’s next for EVs? Only UP!
Looking into the short-term future, things will only get better, and there’s several reasons for that.
The first is that the “800-Pound EV Gorilla,” Tesla, will be back with Model 3 Highland production issues sorted, and a major update of the Model Y due in early 2025. Simply put, they won’t be resting on their laurels, and significant sales volume will return.
The second is new models from many different brands with more affordable prices launching soon. A plethora of a high-volume models with low starting prices are now dropping, including the Chevrolet Equinox, Volvo EX30 and soon the Kia EV3. This will only expand in 2025 and 2026. While we won’t see Chinese brands entering the US or Canadian market any time soon, they are selling in a big way in Mexico. Make no mistake, the impact of the Chinese OEMs will force OEMs selling in US and Canada to significantly reduce prices, speed up engineering development and offer more compelling product, even if the urgency is somewhat buffered by tariffs.
The third is the localization of production for key EV models. By building in the North American Free Trade Agreement (NAFTA) countries, the USD 7,500 US federal credit is applicable on cash purchase and finance sales, as well as leased vehicles, thereby opening up the incentive to everyone. The first to localize was the Volkswagen ID4, and this is now being followed by the Hyundai IONIQ 5 and Kia EV9, which will result in a significant volume increase. Most other OEMs are following with local EV production over the next 3 to 4 years, including Honda, Toyota, Volvo, Mercedes, BMW and others.
| Are hybrids the answer?
Another piece to this story is the growth in hybrid sales, which in pure volumes terms, is similar to that of EVs. Many have pointed to this as a reason that EV sales are flat and that IC vehicles have a long-term future. What we’ve seen from the customer research done here at Vision Mobility is that hybrid buyers are ones that are struggling to make the jump from IC to EV, but still want to take a step towards a cleaner, more efficient vehicle. Buyers aren’t going from EV to hybrid, in fact it’s quite the opposite.
Hybrids introduce drivers to electrons, and electrons are addictive, with the only way that they can be fully satiated is to go full EV. If one looks at previous vehicles for EV owners, there’s almost always a hybrid in there, yet once in an EV, they don’t go back as EV retention is generally north of 80%.
Moreover, plug in hybrids offer buyers the same experience of charging as EVs, thereby increasing the comfort level further.
These thoughts are closely reflected in current US policy direction and by forward looking incumbent OEMs. Jennifer Granholm, the US Secretary for Energy, said hybrids “are the step that will lead to (electrification). We are bullish on that.”
Moreover, Korean OEM Kia Motors recently said that “hybrids aren't a threat to EVs but are the perfect gateway to electrification.”
While hybrids offer buyers a “transitional comfort”, once the smoothness and performance of an EV drive is experienced and the realization occurs that it will suit their lifestyle just fine, there’s no going back.
The point is this: hybrid owners of today are the EV owners of tomorrow.
| All new technology has bumps in the road to success, EVs included
What this all adds up to is sustained medium- and long-term growth for EVs, and this is exactly the forecast from both BNEF (Bloomberg New Energy Finance) and IEA.
On the other side of the COVID bubble, the WHY of EV hasn’t changed. The dream of clean air, lower transportation emissions and less reliance on oil and gas is not just still there; we are now FAR closer to that dream.
Just like the dot com bubble 20 years ago, the EV bubble will have end results that are no different. The weak players are shaken out, but the strong players will not just survive, they’ll flourish. No one today can imagine going back to a world without the internet, and the same will happen with EVs in 20 years from now. Fundamentally, EVs are a far superior technology to internal combustion (IC) cars, and once the dust settles, EV growth will normalise until there are no IC models left on the market.
In other words, the learning is nothing has changed, except that on the road to an EV reality, the dream came with a few bumps, just like almost every other major technological shift in the last 200 years.
■ Related articles
- SK On develops polymer electrolytes for lithium metal batteries
- Soon EVs will be the only vehicles purchased by lower mainstream buyers (by James Carter)
- Take the power with you: Why V2L is the must-have feature for new EVs (by James Carter)
- A passport ensures ethical transparency and sustainability to the battery minerals supply chain (by James Carter)
|
SK Geo Centric
World’s first* supply chain established for more sustainable polyester fiber based on CO2-derived material as well as renewable and bio-based materials
A consortium of seven companies across five countries has jointly established a supply chain for more sustainable polyester fiber. Instead of fossil materials, renewable and bio-based materials as well as materials produced via carbon capture and utilization (CCU para-xylene)** will be used in the manufacturing of polyester fibers for THE NORTH FACE brand in Japan. The project parties are Goldwin, in the role of the Project Owner, Mitsubishi Corporation, Chiyoda Corporation (all three from Japan), SK Geo Centric (South Korea), Indorama Ventures (Thailand), India Glycols (India) and Neste (Finland).
The polyester fiber produced from the project is planned to be used by Goldwin for a part of THE NORTH FACE products including sports uniforms in July 2024. After that, the launch of further products and brands of Goldwin will be considered.
The seven companies apply a mass balancing approach*** to ensure credible traceability of material streams throughout the supply chain and will jointly continue to proactively promote the de-fossilization of materials to contribute to a more sustainable society.
“This consortium has great significance as it is the first case where multiple companies gather under the same of reducing carbon by making sustainable polyester that will eventually be used in clothing products in the final stage,” said an official from SK Geo Centric. “This is just the beginning. We will strive to keep creating greater synergy through cooperation with global companies.”
*World’s first: This refers to the first time CCU para-xylene (direct synthesis from CO) is applied and also to the first time a polyester is made without the use of fossil materials in collaboration among upstream material companies and a downstream apparel company through mass balancing, according to the companies’ research.
**CCU para-xylene: Regarding the production of para-xylene derived from CO2 as a raw material, the University of Toyama, HighChem Company Limited, Nippon Steel Engineering Co. Ltd., Nippon Steel Corporation, Chiyoda Corporation and Mitsubishi Corporation were awarded in 2020 as a NEDO‘s project (New Energy and Industrial Technology Development Organization) "Technology Development for Carbon Recycling and Next Generation Thermal Power Generation/Technology Development for CO2 Emission Reduction and Effective Utilization" and are conducting the joint research and development. This project is to supply CO2-derived para-xylene as a trial, which was produced during the operation process of a pilot plant installed in Chiyoda Corporation's Koyasu Research Park since March 2022.
***Mass balance / Mass balancing approach: A process that tracks the amount and sustainability characteristics of materials and enables allocation of such to a specific portion of the product in proportion to the input of the raw materials with sustainability characteristics, when they are mixed with other materials in the process of manufacturing and distribution of products.
[Photo] The establishment of a sustainable polyester supply chain by the consortium formed by SK Geo Centric in collaboration with global petrochemical, fiber, and clothing companies
|
SK On
SK On recognized as “best supplier” by Ferrari
■ SK On recognized for driving continuous improvement
SK On announced today it has been recognized by Italian luxury sports carmaker during the Podio Ferrari supplier convention.
SK On was one of the eight companies that was recognized at this year’s Podio Ferrari in Maranello, Italy, on June 26. The traditional event hosted by Ferrari saw the attendance of some 700 suppliers and strategic contributors of the automaker, emphasizing their specific contribution to the Prancing Horse’s technological progress, competitiveness and innovation.
SK On received the supplier award in the Fearless Organization category for its resolution, rigor and transparency in having addressed Ferrari's challenging technological needs in the development of cells for the batteries of Ferrari’s most powerful sports cars since 2019.
The company started providing battery cells for Ferrari with the launch of the marque’s first-ever range supercar and Plug-in Hybrid Electric Vehicle (PHEV), the SF90 Stradale, and its open-top variant, the SF90 Spider. SK On’s cells are also used in the battery that powers the 296 GTB and the 296 GTS PHEVs that were launched in 2021 and 2022, respectively.
In March, SK On signed a memorandum of understanding (MOU) with Ferrari to renew the two companies’ on-going collaboration and share valuable insights into the innovation of cell technology. Under the MoU, these exchanges will help both companies envision new possibilities to drive continuous improvement.
“We are honored to be recognized at the Podio Ferrari,” said Chung Goo-pil, Head of Europe Sales at SK On. “We are working together to combine each company’s expertise to proactively support Ferrari’s drive to envision new potential solutions for its high-performance electric vehicles.”
[Photo] Chung Goo-pil (right), Head of Europe Sales at SK On, and Gianmaria Fulgenzi (left), Chief Product Development Officer at Ferrari, pose for a photo at Podio Ferrari in Maranello, Italy, on June 26. (Photo provided by Ferrari)
■ Related articles
- SK On and Ferrari to lead innovation in battery cell technology
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SK Innovation to explore future energy growth strategies at Global Forum in the U.S.
■ "SK Innovation Global Forum" to be held in San Jose, US, on July 13 ■ To discuss growth strategies for key businesses such as batteries with global energy experts SK Innovation is set to meet with global energy experts to secure future growth drivers. SK Innovation announced that it will host the "SK Innovation Global Forum" on July 13 (KST) in San Jose, California, the U.S. The forum will be attended by approximately ten key executives from SK Innovation affiliates, including Lee Seok-hee, CEO of SK On, and Lee Seong-jun, Head of SK Innovation Institute of Environmental Science & Technology, along with around 50 representatives from academia and industry related to global energy. Since 2021, SK Innovation has been hosting the Global Forum to expand its global network, which supports the execution of SK Innovation's strategies. Through this initiative, SK Innovation aims to enhance its global competitiveness by engaging and collaborating with outstanding overseas talent. Specifically, this year’s Global Forum will feature five sessions on the following topics: Secondary Batteries, Battery Thermal Runaway Prevention Technology, Geo Biz & Tech, Carbon Materials, and Open Innovation. Discussions will center on future energy strategies and the development direction of battery technology. Each session will be conducted in various formats, including group discussions and expert presentations. Additionally, SK Innovation will use this event to directly scout global talents who will lead future energy businesses. In last year's Global Forum, SK Innovation secured a pool of outstanding talents, including employees from global energy companies and distinguished scholars from prestigious universities, and has maintained connections with them. "The SK Innovation Global Forum has established itself as a leading networking platform for sharing trends and technologies in the global energy industry,” said an SK Innovation official. “We will accumulate the know-how and achievements of the forum to enhance the execution capabilities of SK Innovation affiliates' core businesses, such as batteries and overseas resource development." [Photos] (Photo 1) A panel discussion session at 2023 SK Innovation Global Forum (Photo 2) Participants gather in the main hall of 2023 SK Innovation Global Forum ■ Related articles - [Recap] 2023 SK Innovation Global Forum
2024. 07. 10
SK Innovation to explore future energy growth strategies at Global Forum in the U.S.
■ "SK Innovation Global Forum" to be held in San Jose, US, on July 13 ■ To discuss growth strategies for key businesses such as batteries with global energy experts SK Innovation is set to meet with global energy experts to secure future growth drivers. SK Innovation announced that it will host the "SK Innovation Global Forum" on July 13 (KST) in San Jose, California, the U.S. The forum will be attended by approximately ten key executives from SK Innovation affiliates, including Lee Seok-hee, CEO of SK On, and Lee Seong-jun, Head of SK Innovation Institute of Environmental Science & Technology, along with around 50 representatives from academia and industry related to global energy. Since 2021, SK Innovation has been hosting the Global Forum to expand its global network, which supports the execution of SK Innovation's strategies. Through this initiative, SK Innovation aims to enhance its global competitiveness by engaging and collaborating with outstanding overseas talent. Specifically, this year’s Global Forum will feature five sessions on the following topics: Secondary Batteries, Battery Thermal Runaway Prevention Technology, Geo Biz & Tech, Carbon Materials, and Open Innovation. Discussions will center on future energy strategies and the development direction of battery technology. Each session will be conducted in various formats, including group discussions and expert presentations. Additionally, SK Innovation will use this event to directly scout global talents who will lead future energy businesses. In last year's Global Forum, SK Innovation secured a pool of outstanding talents, including employees from global energy companies and distinguished scholars from prestigious universities, and has maintained connections with them. "The SK Innovation Global Forum has established itself as a leading networking platform for sharing trends and technologies in the global energy industry,” said an SK Innovation official. “We will accumulate the know-how and achievements of the forum to enhance the execution capabilities of SK Innovation affiliates' core businesses, such as batteries and overseas resource development." [Photos] (Photo 1) A panel discussion session at 2023 SK Innovation Global Forum (Photo 2) Participants gather in the main hall of 2023 SK Innovation Global Forum ■ Related articles - [Recap] 2023 SK Innovation Global Forum
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