Tokyo to get car recharging sites

Western Lithium Supply Localization is accelerating as EV battery makers diversify from China, boosting lithium hydroxide sourcing in North America and Europe, amid Covid-19 disruptions and rising prices, with geothermal brines and local processing.

Key Points

An industry shift to source lithium and processing near EV hubs, reducing China reliance and supply chain risk.

✅ EV makers seek North American and European lithium hydroxide

✅ Prices rise amid Covid-19 and logistics constraints

✅ New extraction: geothermal and oilfield brine projects

The global outbreak of coronavirus will accelerate efforts by western carmakers to localise supplies of lithium for electric car batteries, according to US producer Livent.

The industry was keen to diversify away from China, which produces the bulk of the world’s lithium, a critical material for lithium-ion batteries, said Paul Graves, Livent’s chief executive.

“It’s a conversation that’s starting to happen that was not happening even six months ago,” especially in the US, the former Goldman Sachs banker added.

China produced about 79 per cent of the lithium hydroxide used in electric car batteries last year, according to consultancy CRU, a supply chain that has been disrupted by the virus outbreak and EV shortages in some markets.

Prices for lithium hydroxide rose 3.1 per cent last month, their first increase since May 2018, according to Benchmark Mineral Intelligence, due to the impact of the Covid-19 bug.

Chinese lithium producer Ganfeng Lithium, which supplies major carmakers from Tesla to Volkswagen, said it had raised prices by less than 10 per cent, due to higher production costs and logistical difficulties.

“We can get lithium from lots of places . . . is that really something we’re prepared to rely upon?” Mr Graves said. “People are going to relook at supply chains, including battery recycling initiatives that enhance resilience, and relook at their integrity . . . and they’re going to say is there something we need to do to change our supply chains to make them more shockproof?”

General Motors last week said it was looking to source battery minerals such as lithium and nickel from North America for its new range of electric cars that will use cells made in Ohio by South Korea’s LG Chem.

“Some of these critical minerals could be challenging to obtain; it’s not just cobalt you need to be concerned about but also battery-grade nickel and lithium as well,” said Andy Oury, a lead engineer for batteries at GM. “We’re doing all of this with an eye to sourcing as much of the raw material from North America as possible.”

However, George Heppel, an analyst at CRU, warned it would be difficult to compete with China on costs. “China is always going to be the most competitive place to buy battery raw materials. That’s not likely to change anytime soon,” he said.

Livent, which extracts lithium from brines in northern Argentina, is looking at extracting the mineral from geothermal resources in the US and also wants to build a processing plant in Europe.

The Philadelphia-based company is also working with Canadian start-up E3 Metals to extract lithium from brines in Alberta's oil and gasfields for new projects in Canada.

“We’ll look at doing more in the US and more in Europe,” said Mr Graves, underscoring evolving Canada-U.S. collaboration across EV supply chains.

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New Brunswick Small Modular Reactors promise clean energy, jobs, and economic growth, say NB Power, ARC Nuclear, and Moltex Energy; critics cite cost overruns, nuclear waste risks, market viability, and reliance on government funding.

Key Points

Compact reactors proposed in NB to deliver low-carbon power and jobs; critics warn of costs, waste, and market risks.

✅ Promised jobs, exports, and net-zero support via NB Power partnerships

✅ Critics cite cost overruns, nuclear waste, and weak market demand

✅ Government funding pivotal; ARC and Moltex advance licensing

When Mike Holland talks about small modular nuclear reactors, he sees dollar signs.

When the Green Party hears about them, they see danger signs.

The loquacious Progressive Conservative minister of energy development recently quoted NB Power's eye-popping estimates of the potential economic impact of the reactors: thousands of jobs and a $1 billion boost to the provincial economy.

"New Brunswick is positioned to not only participate in this opportunity, but to be a world leader in the SMR field," Holland said in the legislature last month.

'Huge risk' nuclear deal could let Ontario push N.B. aside, says consultant
'Many issues' with modular nuclear reactors says environmental lawyer
Green MLAs David Coon and Kevin Arseneau responded cheekily by ticking off the Financial and Consumer Services Commission's checklist on how to spot a scam.

Is the sales pitch from a credible source? Is the windfall being promised by a reputable institution? Is the risk reasonable?

For small nuclear reactors, they said, the answer to all those questions is no. 

"The last thing we need to do is pour more public money down the nuclear-power drain," Coon said, reminding MLAs of the Point Lepreau refurbishment project that went $1 billion over budget.

The Greens aside, New Brunswick politicians have embraced small modular reactors as part of a broader premiers' nuclear initiative to develop SMR technology, which they say can both create jobs and help solve the climate crisis.

Smaller and cheaper, supporters say
They're "small" because, depending on the design, they would generate from three to 300 megawatts of electricity, less than, for example, Point Lepreau's 660 megawatts.

It's the modular design that is supposed to make them more affordable, as explained in next-gen nuclear guides, with components manufactured elsewhere, sometimes in existing factories, then shipped and assembled. 

Under Brian Gallant, the Liberals handed $10 million to two Saint John companies working on SMRs, ARC Nuclear and Moltex Energy.

Greens point to previous fiascoes
The Greens and other opponents of nuclear power fear SMRS are the latest in a long line of silver-bullet fiascoes, from the $23 million spent on the Bricklin in 1975 to $63.4 million in loans and loan guarantees to the Atcon Group a decade ago.

"It seems that [ARC and Moltex] have been targeting New Brunswick for another big handout ... because it's going to take billions of dollars to build these things, if they ever get off the drawing board," said Susan O'Donnell, a University of New Brunswick researcher.

O'Donnell, who studies technology adoption in communities, is part of a small new group called the Coalition for Responsible Energy Development formed this year to oppose SMRs.

"What we really need here is a reasonable discussion about the pros and cons of it," she said.

Government touts economic spinoffs
According to the Higgs government's throne speech last month, if New Brunswick companies can secure just one per cent of the Canadian market for small reactors, the province would see $190 million in revenue. 

The figures come from a study conducted for NB Power by University of Moncton economist Pierre-Marcel Desjardins.

But a four-page public summary does not include any sales projections and NB Power did not provide them to CBC News. 

"What we didn't see was a market analysis," O'Donnell said. "How viable is the market? … They're all based on a hypothetical market that probably doesn't exist."

O'Donnell said her group asked for the full report but was told it's confidential because it contains sensitive commercial information.

Holland said he's confident there will be buyers. 

"It won't be hard to find communities that will be looking for a cost effective, affordable, safe alternative to generate their electricity and do it in a way that emits zero emissions," he said.

SMRs come in different sizes and while some proponents talk about using "micro" reactors to provide electricity to remote northern First Nations communities, ARC and Moltex plan larger models to sell to power utilities looking to shift away from coal and gas.

"We have utilities and customers across Canada, where Ontario's first SMR groundbreaking has occurred already, across the United States, across Asia and Europe saying they desperately want a technology like this," said Moltex's Saint John-based CEO for North America Rory O'Sullivan. 

"The market is screaming for this product," he said, adding "all of the utilities" in Canada are interested in Moltex's reactors

ARC's CEO Norm Sawyer is more specific, guessing 30 per cent of his SMR sales will be in Atlantic Canada, 30 per cent in Ontario, where Darlington SMR plans are advancing, and 40 per cent in Alberta and Saskatchewan — all provincial power grids.

O'Donnell said it's an important question because without a large number of guaranteed sales, the high cost of manufacturing SMRs would make the initiative a money-loser. 

The cost of building the world's only functioning SMR, in Russia, was four times what was expected. 

An Australian government agency said initial cost estimates for such major projects "are often initially too low" and can "overrun." 

Up-front costs can be huge
University of British Columbia physicist M.V. Ramana, who has authored studies on the economics of nuclear power, said SMRs face the same financial reality as any large-scale manufacturing.

"You're going to spend a huge amount of money on the basic fixed costs" at the outset, he said, with costs per unit becoming more viable only after more units are built and sold. 

He estimates a company would have to build and sell more than 700 SMRs to break even, and said there are not enough buyers for that to happen. 

But Sawyer said those estimates don't take into account technological advances.

"A lot of what's being said ... is really based on old technology," he said, estimating ARC would be viable even if it sold an amount of reactors in the low double digits. 

O'Sullivan agrees.

"In fact, just the first one alone looks like it will still be economical," he said. "In reality, you probably need a few … but you're talking about one or two, maximum three [to make a profit] because you don't need these big factories."

'Paper designs' prove nothing, says expert
Ramana doesn't buy it. 

"These are all companies that have been started by somebody who's been in the nuclear industry for some years, has a bright idea, finds an angel investor who's given them a few million dollars," he said.

"They have a paper design, or a Power Point design. They have not built anything. They have not tested anything. To go from that point … to a design that can actually be constructed on the field is an enormous amount of work." 

Both CEOs acknowledge the skepticism about SMRs.

'The market is screaming for this product,' said Moltex’s Saint John-based CEO for North America, Rory O’Sullivan. (Brian Chisholm, CBC)
"I understand New Brunswick has had its share of good investments and its share of what we consider questionable investments," said Sawyer, who grew up in Rexton.

But he said ARC's SMR is based on a long-proven technology and is far past the on-paper design stage "so you reduce the risk." 

Moltex is now completing the first phase of the Canadian Nuclear Safety Commission's review of its design, a major hurdle. ARC completed that phase last year.

But, Ramana said there are problems with both designs. Moltex's molten salt model has had "huge technical challenges" elsewhere while ARC's sodium-cooled system has encountered "operational difficulties."

Ottawa says nuclear is needed for climate goals
The most compelling argument for looking at SMRs may be Ottawa's climate change goals, and international moves like the U.K.'s green industrial revolution plan point to broader momentum.  

The national climate plan requires NB Power to phase out burning coal at its Belledune generating station by 2030. It's scrambling to find a replacement source of electricity.

The Trudeau government's throne speech in October promised to "support investments in renewable energy and next-generation clean energy and technology solutions."

And federal Natural Resources Minister Seamus O'Regan told CBC earlier this year that he's "very excited" about SMRs and has called nuclear key to climate goals in Canada as well.

"We have not seen a model where we can get to net-zero emissions by 2050 without nuclear,"  he said.

O'Donnell said while nuclear power doesn't emit greenhouse gases, it's hardly a clean technology because of the spent nuclear fuel waste. 

Government support is key 
She also wonders why, if SMRs make so much sense, ARC and Moltex are relying so much on government money rather than private capital.

Holland said "the vast majority" of funding for the two companies "has to come from private sector investments, who will be very careful to make sure they get a return on that investment."

Sawyer said ARC has three dollars for every dollar it has received from the province, and General Electric has a minority ownership stake in its U.S.-based parent company.

O'Sullivan said Moltex has attracted $5 million from a European engineering firm and $6 million from "the first-ever nuclear crowdfunding campaign." 

But he said for new technologies, including nuclear power, "you need government to show policy support.

"Nuclear technology has always been developed by governments around the world. This is a very new change to have an industry come in and lead this, so private investors can't take the risk to do that on their own," he said. 

So far, Ottawa hasn't put up any funding for ARC or Moltex. During the provincial election campaign, Higgs implied federal money was imminent, but there's been no announcement in the almost three months since then.

Last month the federal government announced $20 million for Terrestrial Energy, an Ontario company working on SMRs, alongside OPG's commitment to SMRs in the province, underscoring momentum.

"We know we have the best technology pitch," O'Sullivan said. "There's others that are slightly more advanced than us, but we have the best overall proposition and we think that's going to win out at the end of the day."

But O'Donnell said her group plans to continue asking questions about SMRs. 

"I think what we really need is to have an honest conversation about what these are so that New Brunswickers can have all the facts on the table," she said.

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California Battery Storage is transforming grid reliability as distributed energy, solar-plus-storage, and demand response mitigate rolling blackouts, replace peaker plants, and supply flexible capacity during heat waves and evening peaks across utilities and homes.

Key Points

California Battery Storage uses distributed and utility batteries to stabilize power, shift solar, and curb blackouts.

✅ Supplies flexible capacity during peak demand and heat waves

✅ Enables demand response and replaces gas peaker plants

✅ Aggregated assets form virtual power plants for grid support

Last month as a heat wave slammed California, state regulators sent an email to a group of energy executives pleading for help to keep the lights on statewide. “Please consider this an urgent inquiry on behalf of the state,” the message said.

The manager of the state’s grid was struggling to increase the supply of electricity because power plants had unexpectedly shut down and demand was surging. The imbalance was forcing officials to order rolling blackouts across the state for the first time in nearly two decades.

What was unusual about the emails was whom they were sent to: people who managed thousands of batteries installed at utilities, businesses, government facilities and even homes. California officials were seeking the energy stored in those machines to help bail out a poorly managed grid and reduce the need for blackouts.

Many energy experts have predicted that batteries could turn homes and businesses into mini-power plants that are able to play a critical role in the electricity system. They could soak up excess power from solar panels and wind turbines and provide electricity in the evenings when the sun went down or after wildfires and hurricanes, which have grown more devastating because of climate change in recent years. Over the next decade, the argument went, large rows of batteries owned by utilities could start replacing power plants fueled by natural gas.

But that day appears to be closer than earlier thought, at least in California, which leads the country in energy storage. During the state’s recent electricity crisis, more than 30,000 batteries supplied as much power as a midsize natural gas plant. And experts say the machines, which range in size from large wall-mounted televisions to shipping containers, will become even more important because utilities, businesses and homeowners are investing billions of dollars in such devices.

“People are starting to realize energy storage isn’t just a project or two here or there, it’s a whole new approach to managing power,” said John Zahurancik, chief operating officer at Fluence, which makes large energy storage systems bought by utilities and large businesses. That’s a big difference from a few years ago, he said, when electricity storage was seen as a holy grail — “perfect, but unattainable.”

On Friday, Aug. 14, the first day California ordered rolling blackouts, Stem, an energy company based in the San Francisco Bay Area, delivered 50 megawatts — enough to power 20,000 homes — from batteries it had installed at businesses, local governments and other customers. Some of those devices were at the Orange County Sanitation District, which installed the batteries to reduce emissions by making it less reliant on natural gas when energy use peaks.

John Carrington, Stem’s chief executive, said his company would have provided even more electricity to the grid had it not been for state regulations that, among other things, prevent businesses from selling power from their batteries directly to other companies.

“We could have done two or three times more,” he said.

The California Independent System Operator, which manages about 80 percent of the state’s grid, has blamed the rolling blackouts on a confluence of unfortunate events, including extreme weather impacts on the grid that limited supply: A gas plant abruptly went offline, a lack of wind stilled thousands of turbines, and power plants in other states couldn’t export enough electricity. (On Thursday, the grid manager urged Californians to reduce electricity use over Labor Day weekend because temperatures are expected to be 10 to 20 degrees above normal.)

But in recent weeks it has become clear that California’s grid managers also made mistakes last month, highlighting the challenge of fixing California’s electric grid in real time, that were reminiscent of an energy crisis in 2000 and 2001 when millions of homes went dark and wholesale electricity prices soared.

Grid managers did not contact Gov. Gavin Newsom’s office until moments before it ordered a blackout on Aug. 14. Had it acted sooner, the governor could have called on homeowners and businesses to reduce electricity use, something he did two days later. He could have also called on the State Department of Water Resources to provide electricity from its hydroelectric plants.

Weather forecasters had warned about the heat wave for days. The agency could have developed a plan to harness the electricity in numerous batteries across the state that largely sat idle while grid managers and large utilities such as Pacific Gas & Electric scrounged around for more electricity.

That search culminated in frantic last-minute pleas from the California Public Utilities Commission to the California Solar and Storage Association. The commission asked the group to get its members to discharge batteries they managed for customers like the sanitation department into the grid. (Businesses and homeowners typically buy batteries with solar panels from companies like Stem and Sunrun, which manage the systems for their customers.)

“They were texting and emailing and calling us: ‘We need all of your battery customers giving us power,’” said Bernadette Del Chiaro, executive director of the solar and storage association. “It was in a very last-minute, herky-jerky way.”

At the time of blackouts on Aug. 14, battery power to the electric grid climbed to a peak of about 147 megawatts, illustrating how virtual power plants can rapidly scale, according to data from California I.S.O. After officials asked for more power the next day, that supply shot up to as much as 310 megawatts.

Had grid managers and regulators done a better job coordinating with battery managers, the devices could have supplied as much as 530 megawatts, Ms. Del Chiaro said. That supply would have exceeded the amount of electricity the grid lost when the natural gas plant, which grid managers have refused to identify, went offline.

Officials at California I.S.O. and the public utilities commission said they were working to determine the “root causes” of the crisis after the governor requested an investigation.

Grid managers and state officials have previously endorsed the use of batteries, using AI to adapt as they integrate them at scale. The utilities commission last week approved a proposal by Southern California Edison, which serves five million customers, to add 770 megawatts of energy storage in the second half of 2021, more than doubling its battery capacity.

And Mr. Zahurancik’s company, Fluence, is building a 400 megawatt-hour battery system at the site of an older natural gas power plant at the Alamitos Energy Center in Long Beach. Regulators this week also approved a plan to extend the life of the power plant, which was scheduled to close at the end of the year, to support the grid.

But regulations have been slow to catch up with the rapidly developing battery technology.

Regulators and utilities have not answered many of the legal and logistical questions that have limited how batteries owned by homeowners and businesses are used. How should battery owners be compensated for the electricity they provide to the grid? Can grid managers or utilities force batteries to discharge even if homeowners or businesses want to keep them charged up for their own use during blackouts?

During the recent blackouts, Ms. Del Chiaro said, commercial and industrial battery owners like Stem’s customers were compensated at the rates similar to those that are paid to businesses to not use power during periods of high electricity demand. But residential customers were not paid and acted “altruistically,” she said.

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Hydro Quebec transmission expansion aims to move surplus hydroelectric capacity from record reservoirs to the US grid via new interties, increasing exports to New England and New York amid rising winter peak demand.

Key Points

A plan to add capacity and intertie links to export surplus hydro power from Quebec's reservoirs to the US grid.

✅ 245 MW added in 2021; portfolio reaches 37,012 MW

✅ Reservoirs at unprecedented levels; export potential high

✅ Lacks US transmission; working on new interties

Hydro Quebec plans to add an incremental 245 MW of hydro-electric generation capacity in 2021 to its expansive portfolio in the north of the province, while Quebec authorized nearly 1,000 MW for industrial projects across the region, bringing the total capacity to 37,012 MW, an official said Friday

Quebec`s highest peak demand of 39,240 MW occurred on January 22, 2014.

A little over 75% of Quebec`s population heat their homes with electricity, Sutherland said, aligning with Hydro Quebec's strategy to wean the province off fossil fuels over time.

The province-owned company produced 205.1 TWh of power in 2017 and its net exports were 34.4 TWh that year, while Ontario chose not to renew a power deal in a separate development.

Sutherland said Hydro Quebec`s reservoirs are currently at "unprecedented levels" and the company could export more of its electricity to New England and New York, but faces transmission constraints that limit its ability to do so.

Hydro Quebec is working with US transmission developers, electric distribution companies, independent system operators and state government agencies to expand that transmission capacity in order to delivery more power from its hydro system to the US, Sutherland said.

Separately, NB Power signed three deals to bring more Quebec electricity into the province, reflecting growing regional demand.

The last major intertie connection between Quebec and the US was completed close to 30 years ago. The roughly 2,000 MW capacity transmission line that connects into the Boston area was completed in the late 1990s, according to Hydro Quebec spokeswoman Lynn St-Laurent.

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Britain Electricity Demand During Lockdown is around 10 percent lower, as industrial consumers scale back. National Grid reports later morning peaks and continues balancing system frequency and voltage to maintain grid stability.

Key Points

Measured drop in UK power use, later morning peaks, and grid actions to keep frequency and voltage within safe limits.

✅ Daily demand about 10 percent lower since lockdown.

✅ Morning peak down nearly 18 percent and occurs later.

✅ National Grid balances frequency and voltage using flexible resources.

Daily electricity demand in Britain is around 10% lower than before the country went into lockdown last week due to the coronavirus outbreak, data from grid operator National Grid showed on Tuesday.

The fall is largely due to big industrial consumers using less power across sectors, the operator said.

Last week, Prime Minister Boris Johnson ordered Britons to stay at home to halt the spread of the virus, imposing curbs on everyday life without precedent in peacetime.

Morning peak demand has fallen by nearly 18% compared to before the lockdown was introduced and the normal morning peak is later than usual because the times people are getting up are later and more spread out with fewer travelling to work and school, a pattern also seen in Ottawa during closures, National Grid said.

Even though less power is needed overall, the operator still has to manage lower demand for electricity, as well as peaks, amid occasional short supply warnings from National Grid, and keep the frequency and voltage of the system at safe levels.

Last August, a blackout cut power to one million customers and caused transport chaos as almost simultaneous loss of output from two generators caused by a lightning strike caused the frequency of the system to drop below normal levels, highlighting concerns after the emergency energy plan stalled.

National Grid said it can use a number of tools to manage the frequency, such as working with flexible generators to reduce output or draw on storage providers to increase demand, and market conditions mean peak power prices have spiked at times.

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BC Fossil Fuel Phase-Out outlines a just transition to a green economy, meeting climate targets by mid-century through carbon budgets, ending subsidies for fracking, capping production, and investing in renewable energy, remediation, and resilient infrastructure.

Key Points

A strategic plan to wind down oil and gas, end subsidies, and achieve climate targets with a just transition in BC.

✅ End new leases, phase out subsidies, cap fossil production

✅ Carbon budgets and timelines to meet mid-century climate targets

✅ Just transition: income supports, retraining, site remediation jobs

Politicians in British Columbia aren't focused enough on phasing out fossil fuel industries, a new report says.

The report, authored by the left-leaning Canadian Centre for Policy Alternatives, says the province must move away from fossil fuel industries by mid-century in order to meet its climate targets, with B.C. projected to fall short of 2050 targets according to recent analysis, but adds that the B.C. government is ill prepared to transition to a green economy.

"We are totally moving in the wrong direction," said economist Marc Lee, one of the authors of the report, on The Early Edition Wednesday. 

He said most of the emphasis of B.C. government policy has been on slowing reductions in emissions from transportation or emissions from buildings, even though Canada will need more electricity to hit net-zero according to the IEA, while still subsidizing fossil fuel extraction, such as fracking projects, that Lee said should be phased out.

"What we are putting on the table is politically unthinkable right now," said Lee, adding that last month's provincial budget called for a 26 per cent increased gas production over the next three years, even though electrified LNG facilities could boost demand for clean power.

B.C.'s $830M in fossil fuel subsidies undermines efforts to fight climate crisis, report says
He said B.C. needs to start thinking instead about how its going to wind down its dependence on fossil fuel industries.

'Greener' job transition needed
The report said the provincial government's continued interest in expanding production and exporting fossil fuels, even as Canada's race to net-zero intensifies across the energy sector, suggests little political will to think about a plan to move away from them.

It suggests the threat of major job losses in those industries is contributing to the political inaction, but cited several examples of ways governments can help move workers into greener jobs, as many fossil-fuel workers are ready to support the transition according to recent commentary. 

Lee said early retirement provisions or income replacement for transitioning workers are options to consider.

"We actually have seen a lot of real-world policy around transition starting to happen, including in Alberta, which brought in a whole transition package for coal workers producing coal for electricity generation, and regional cooperation like bridging the electricity gap between Alberta and B.C. could further support reliability," Lee said.

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Lee also said well-paying jobs could be created by, for example, remediating old coal mines and gas wells and building green infrastructure and renewable electricity projects in affected areas.

The report also calls for a moratorium on new fossil fuel leases and ending fossil fuel subsidies, as well as creating carbon budgets and fossil fuel production limits.

"Change is coming," said Lee. "We need to get out ahead of it."

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