Albemarle Corp., a major player in the lithium market, has altered its investment strategy due to evolving market dynamics. The company has deferred spending on its ambitious lithium conversion facility project in South Carolina. Instead, it redirected efforts towards permitting activities for the Kings Mountain lithium-spodumene mine resource in North Carolina.

This strategic shift responds to the softer conditions in the lithium market, prompting Albemarle to optimize its cost structure and re-evaluate growth investments.

Navigating Market Challenges and Reallocation of Funds

The world’s largest provider of lithium for electric vehicle batteries expects its 2024 capital expenditures to range from $1.6 billion to $1.8 billion, down from about $2.1 billion in 2023.

The proposed lithium production facility in South Carolina, with an initial capacity of 50,000 metric tons per year, was originally scheduled for construction starting in late 2024. It was designed to process both spodumene concentrate and recycled batteries. It has a potential capacity expansion to 100,000 t/y in a subsequent phase.

RELATED: Lithium-ion Battery Capacity to Reach 6.5 TWh in 2030

Funds reallocation will now prioritize the development of spodumene concentrate production at the Kings Mountain mine. The mine has a potential production capacity of 350,000 t/y of spodumene concentrate. 

Kings Mountain is supported by grants of nearly $150 million from the U.S. Department of Energy in 2022 and $90 million from the US Defense Department in 2023. It could eventually supply the proposed lithium conversion facility in South Carolina.

Albemarle didn’t disclose whether the spending cuts would affect the capacity expansion project at its Nevada Silver Peak lithium operations. The company aims to increase its lithium carbonate production from 5,000 t/y – 10,000 t/y by 2025.

This decision is part of Albemarle’s proactive measures to re-phase organic growth investments and optimize its cost structure in response to changing market conditions. Remarkable changes are particularly happening in the lithium value chain. 

Despite the deferral, the company remains committed to advancing its Meishan lithium conversion facility in China and the Kemerton lithium conversion facility in Australia in 2024. Albemarle also plans to reduce costs related to sales, general, and administrative expenses.

Market Dynamics Impacting Lithium Prices

Stalling spending on its lithium conversion facility project in South Carolina is largely due to a softer market in 2024. The global lithium market experienced a correction in 2023, witnessing a significant price decline from the record levels in 2022. 

According to S&P’s Platts data, lithium carbonate CIF North Asia assessment stands at $15,000 per metric ton as of the beginning of 2024. This level approaches its historical range after surpassing $70,000 t/y for most of 2022.

S&P Global revised price projection for lithium carbonate stands below $20,000 t/y from 2024 to 2026. This decrease in expected prices is largely attributed to weakened near-term demand for EVs and a surplus of lithium globally. 

Interestingly, despite weaker demand, Mercedes-Benz reported a new record for both volume and share of its all-electric cars in 2023. The company is directly sourcing lithium to scale up its fully EV production.

The German luxury car saw a 73% year-over-year growth rate in its all-electric car brand in 2023, selling over 240,000 units. This accounted for about 11% of the carmaker’s total sales volume. 

For the same period, Mercedes-Benz also sold around 22,700 all-electric vans, accounting for over 5% of its total sales. The figure is up 51% year-over-year. 

In the U.S., the automaker’s battery electric vehicle (BEV) sales totalled to over 13,000 units, representing a 139% increase. Electric vehicles in the country are getting a stronger policy support.

The Electric Vehicle Boom and the Lithium Race

Just recently, the U.S. government revealed a $623 million grant to drive the growth of EVs. The financial support aims to make EV chargers more accessible and convenient for EV drivers. 

READ MORE: USA’s $623 Million Boost for EV Infrastructure

Globally, the EV market, including both BEV and plug-in hybrid, would reach a whopping $623 billion in sales. This huge growth potential would lead to a global EV units sold at 17 million by 2028. 

What all these mean is the more intense race for securing lithium, the white gold that fuels the EV revolution. One of the companies positioned to take advantage of this lithium opportunity is Li-FT Power (LIFT; LIFFF). It is the fastest developing North American lithium junior, owning five various projects in Canada.

The electrification of transportation and the quest for sustainable energy solutions are poised to reshape the global resource landscape. The path forward is brimming with potential, driven by the dual forces of electric and lithium-powered advancements. 

Albemarle’s move to prioritize cost and efficiency improvements aligns with market conditions and aims to navigate the challenges posed by the evolving lithium industry.

Disclosure: Owners, members, directors and employees of carboncredits.com have/may have stock or option position in any of the companies mentioned: LIFT

Carboncredits.com receives compensation for this publication and has a business relationship with any company whose stock(s) is/are mentioned in this article

Additional disclosure: This communication serves the sole purpose of adding value to the research process and is for information only. Please do your own due diligence. Every investment in securities mentioned in publications of carboncredits.com involve risks which could lead to a total loss of the invested capital.

Please read our Full RISKS and DISCLOSURE here.

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Pop sensation Taylor Swift, owner of a $40 million private jet, is making headlines as she turns to carbon offsets to address her substantial carbon footprint. Despite being the world’s most carbon polluting celebrity in 2022, Swift aims to offset her emissions. 

However, questions arise about the transparency and legitimacy of these carbon offsets, raising concerns within the climate-conscious community.

Carbon offsets are mechanisms used by companies and individuals to compensate for their carbon emissions by investing in projects that reduce or remove an equivalent amount of greenhouse gasses (GHG). Each offset equals one tonne of carbon emissions. 

Private Jets and Celebrity Carbon Footprints

The aviation industry contributes about 2.5% of global emissions. Despite airplanes emitting around 100x more carbon dioxide per hour than other transportation modes, celebrities like Taylor Swift seldom opt for public transport. 

The pop star’s reliance on a private jet significantly amplifies her carbon footprint compared to an average individual. 

Private jets are considered the most polluting form of transport, posing challenges in global decarbonization efforts. 

In the U.S., a study by the Institute for Policy Studies (IPS), showed that the richest 1% of air travelers in the country are responsible for about 50% of all aviation carbon emissions. 

In the UK, each of the wealthy fliers onboarding largest private jets release as much as 20-30x more pollution than those flying in economy class on ordinary commercial flights. These flights are several times more polluting than transit. 

Celebrities and politicians, in particular, receive criticisms from environmentalists regarding their carbon footprints, which are higher than that of the average person. 

Putting that in perspective, a flight from London to Dubai makes a private jet 11x more polluting than a regular commercial aircraft, 35x more than a train, and a whopping 52x more than a bus. 

Jet-Set Stats: Unveiling Swift’s Sky-High Carbon Footprint

According to a digital sustainability consultancy, Yard, Taylor Swift is the world’s most carbon polluting celebrity due to her footprint in 2022. She is followed by Floyd Mayweather and Jay-Z.

The study revealed that only 15% of the population takes 70% of the flights annually. It also showed that the average CO2 emissions by the celebrities surveyed, through their private jet flights alone, stands at 3,376.64 tonnes each. In comparison, an average person emits only 7 tonnes of carbon every year. 

Of the celebrities studied, the pop princess tops the list for 2022. With a staggering total of 170 flights since January, Swift’s jet has logged an extensive 22,923 minutes in the air. That’s roughly 16 days in total.

This substantial figure is noteworthy, especially considering that she’s not on tour that period. Her jet’s average flight duration is a mere 80 minutes, covering an average distance of over 139 miles per flight. 

Swift’s cumulative flight emissions for the year reach 8,293.54 tonnes, representing a staggering >1,100x more than the average person’s total annual emissions. Her shortest recorded flight for 2022 was a brief 36 minutes, covering the distance from Missouri to Nashville. 

Swift’s Bid for Environmental Redemption

In the middle of her Eras Tour in March 2023, Swift’s regular flights to see her NFL-playing boyfriend, Travis Kelce, emitted 138 tonnes of CO2 in 3 months. The superstar remains the world’s most carbon emitting celebrity.

In an Instagram post tracking Swift’s private jet flight records, she took 12 flights to see her love interest. These flights by her Desault Falcon 7x and Dessault Falcon 900 emitted a total of 138 tonnes of CO2. That means the popular singer can offset that footprint by growing almost 2,300 trees for a decade. 

However, the pop star’s representative said that Taylor’s private jet is also loaned out to others, so it’s incorrect to attribute most or all of the trips to her. The spokesperson further noted that “Taylor purchased more than double the carbon credits needed to offset all tour travel.”

Carbon offsets are generated by projects or initiatives that reduce or capture carbon dioxide from the atmosphere. It could be through natural ecosystems or using carbon removal or carbon capture technologies.

From which project do carbon offsets Taylor Swift purchased come from?

Individuals or corporations are not required to publicly disclose their sources of carbon offsets. But as the carbon credit industry is strengthening its integrity and reliability, regulations are also tightening. Transparency in reporting and disclosing carbon offsets, despite being voluntary, would soon be the standard.  

Universal, Swift’s record label, didn’t disclose where the singer had bought the offsets. These offsets, including those bought by corporations, undergo verification by third parties to ensure reliability and effectiveness. 

Controversies surround the validity of offsets after an expose last year claimed that 90% of them approved by the leading verification body, Verra, were worthless. Verra disputed that the allegations aren’t valid.

The legitimacy of Taylor Swift’s offsetting her carbon footprint may remain uncertain. Despite this ambiguity, Swift appears determined to shed her climate villain reputation. Whether the pop princess will eventually disclose the details is unclear, but her move brings celebrity carbon accounting to the forefront.

The post Taylor Swift Turns to Carbon Offsets for Her Sky-High Footprint appeared first on Carbon Credits.

ZERO13, the COP28 award-winning initiative providing a digital climate fintech platform-as-a-service, and XTCC, the world’s first exchange-traded investment products for high-integrity carbon credits, announce a Statement of Accord aiming to attract $100bn capital market investment into high-integrity carbon credits. The initiative would help address the multi-trillion dollar annual climate financing gap.

ZERO13 is an automated AI and blockchain-driven international carbon exchange, registry and aggregation hub and ecosystem by London-based GMEX Group.

XTCC’s high-integrity carbon credits are from verified, renewable energy and regenerative agriculture projects focused on the drive to net zero.

The Financial and Digital Gateway to Net Zero

The announcement was made at the World Economic Forum’s (WEF) Futur.IO Davos Executive Reception, taking place this week. The partners presented the Accord details, including its approach to current carbon market issues, call to action, and methodology to achieve its goals. 

The WEF emphasizes the need for $4-5 trillion in clean energy investments annually by 2030 to avert a climate disaster. So far, renewable power got the biggest share of the investment since 2015. 

RELADTED: Clean Energy Transition Investment Hits New Record

Signatories of the Accord commit to enhancing the integrity and credibility of carbon credits. Their goal is to strive for an economic model that rebuilds trust in the carbon credit market and enhances liquidity. 

ZERO13 and XTCC encourage stakeholders throughout the climate value chain to collectively invest in digitally verifiable, high-integrity carbon credits. 

The investment aims to drive community development and economic progress in the Global South and emerging nations. The aim is to empower others to initiate and drive change within the carbon credit industry. 

The Accord serves as a financial and digital gateway for project funders and investors seeking returns. The initiative is in collaboration with various climate ecosystem partners.

By boosting liquidity through capital markets, ZERO13 and XTCC aim to create more opportunities to mobilize capital and fund projects. 

Presently, the organizations are involved in over $1 billion worth of bankable projects in multiple countries. These include India, Brazil, Kenya, Rwanda, Seychelles, and South Africa.

Establishing Trust in Carbon Markets

The African region, in particular, has been ramping its efforts as it jumps into the carbon trading space. Take for example, Kenya, which leads carbon credit generation in the region, contributing over 20% of the continent’s volume over the 5 years. 

At COP28 climate summit, the ‘Africa Green Industrialisation Initiative’ aimed at accelerating Africa’s green industrialization, co-hosted by Kenya and the UAE, saw the participation of African Heads of State and key figures from green developers, industry, multilateral development banks, and global institutions.

RELATED: UAE to Power Up African Carbon Credit Market with $450M Pledge

The partnership between ZERO13’s digital carbon climate market infrastructure ecosystem and XTCC’s exchange-listed investment products establishes trust in carbon markets. It also provides a platform to meet the anticipated growth in the demand for high-integrity carbon credits. 

ZERO13 DIGITAL CARBON MARKET ECOSYSTEM

Moreover, ZERO13 and XTCC facilitate the distribution of high-integrity regenerative agriculture and renewable energy projects in capital markets. This, in turn, produces carbon credits with complete digitally verified provenance.

The collaboration positions itself as a precedence in climate markets, blending private climate financing with large-scale capital from public markets. 

Hirander Misra, Chairman and CEO of GMEX Group and ZERO13, highlighted the importance of their initiative, noting that:

“Through our partnerships with XTCC, multiple exchanges, participants, custodians, and registries we increase interoperability, digitally interconnect silos, and bridge the gap between climate tech and fintech. This enables us to scale climate finance across multiple APIs and blockchains and build capacity where it is needed most, benefitting countries, corporations and communities.”

Professor Lisa Wilson, MD of XTCC, emphasized that the partnership between XTCC and ZERO13 goes beyond infrastructure and a call for investment. 

The Accord represents a critical pledge with the full commitment of all stakeholders to a sustainable net zero future. Investing in high-integrity carbon credits could potentially stimulate carbon reduction initiatives, playing a crucial role in achieving net zero targets. Together, they have established the foundations for a full end-to-end trusted ecosystem for high-integrity carbon credits, removing obstacles to allow investment to flow freely with full investor confidence.

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In a bid to reshape the transportation landscape, the United States government has committed a staggering $623 million to propel the growth of electric vehicles (EVs). Across the Atlantic, Ireland is stepping into the limelight with promising lithium discoveries, aiming to bolster Europe’s battery supply chain. 

The dynamics of these groundbreaking developments will have a potential impact on the future of sustainable mobility.

Empowering EVs in the US

The Biden administration grants, available through the 2021 Bipartisan Infrastructure Law, are geared towards supporting the increasing deployment of EVs.

Currently, there are over 4 million electric vehicles on the American roads, as per the U.S. Transportation Department’s data. But progress on the EV charging network has been slow. Only New York and Ohio have charging stations in operation. 

Meanwhile, Pennsylvania and Maine are expected to open EV charging stations early this 2024.

EV Unit Sales 2016-2028

Last year, a total of around 11 million EV units were sold globally, according to Statista. This year, the EV market, including both battery and plug-in hybrid, would reach a staggering $623 billion in sales worldwide. Such a massive growth will lead to a market volume of $906 billion by 2028, reaching 17 million vehicle units. 

With the grant, the U.S. aims to make EV chargers more accessible, reliable, and convenient for American drivers. Plus, this will also generate jobs in charger manufacturing, installation, and maintenance. 

Of the total amount, $311 million from the Federal Highway Administration will support 36 community projects, including EV charging and hydrogen fueling infrastructure. 

The remaining $312 million will go to 11 recipients for projects along designated alternative fuel corridors. In total, the grants will fund 47 EV charging and alternative-fueling infrastructure projects across 22 states and Puerto Rico. Overall, this would lead to the construction of approximately 7,500 EV charging ports. 

The recipients include the North Central Texas Council of Governments, the New Jersey Department of Environmental Protection, and the Maryland Clean Energy Center. 

The funds are part of the $2.5 billion Charging and Fueling Infrastructure Discretionary Grant Program under the infrastructure law. The regulation has a broader goal of installing 500,000 EV charging stations in the U.S. by 2030. 

Since January 2021, EV sales have quadrupled, and publicly available charging ports have increased by 70%, per the Transportation Department. That figure is only ⅓ of the way to the current administration’s goal, with 6 years left. 

What all these bullish projections mean is more requirement for lithium and Europe is also ramping up its lithium exploration. As seen below, projected lithium requirements for EV needed by 2040 is nearly 25 million metric tonnes.

RELATED: Lithium: The White Gold Powering up the EV Revolution

Ireland’s Lithium Odyssey

Back in 1972, Irish Base Metals Ltd. identified traces of lithium in local granites during base metals exploration. However, the potential significance was overlooked at the time, as lithium was deemed “not of interest” and “not really a commercial mineral,” according to John Teeling, a former key adviser to Irish Base Metals.

The EU, heavily dependent on Australia for 87% of its raw lithium imports, is now keen on expanding exploration. The bloc’s Critical Raw Materials Act is supporting this move. The EU-backed GreenPeg project has considered southeast Ireland as one of 3 locations to study pegmatite ore deposits.

Pegmatite lithium deposits is also known as hard-rock lithium deposits, containing extractable amounts of a number of elements, including lithium,

Ireland is historically significant as Russia’s 3rd-largest alumina supplier in 2022. It is also home to Europe’s largest zinc-producing mine. However, recent mineral exploration has primarily focused on other resources like copper, lead, zinc, and gold. 

S&P Global Market Intelligence data indicates only 2 established lithium projects in the country, Avalonia (Carlow) and Leinster (Wicklow). 

John Harrop, senior project geologist at Canadian consultancy Coast Mountain Geological Group, which works on the Avalonia project, highlighted that:

“If exploration is successful in Ireland, it is more likely to contribute a number of small- to medium-size lithium bodies similar to the clusters that are being explored and discovered elsewhere in Europe.” 

Harrop envisions Ireland becoming a contributor to lithium supply feeds for upcoming lithium processing plants in Europe. He further emphasized the potential for more discoveries in the Irish lithium belt.

Arkle Resources, in a new lithium exploration effort, discovered pegmatites in its Mine River gold project in November 2022. This area is west of the Avalonia project, a joint venture established in 2014 by Canada’s International Lithium Corp. and China’s Ganfeng Lithium Group.

These developments come as Ireland faces challenges in building a lithium sector. These particularly include a shortage of skilled professionals experienced in recognizing hard rock lithium. 

One of the companies best prepared to take advantage of the looming shortage of lithium is Li-FT Power (LIFT; LIFFF). It is the fastest developing North American lithium junior, with 5 different projects across Canada.

As the wheels of innovation turn, the convergence of substantial investments in EV infrastructure and Ireland’s lithium exploration signals a transformative era. The electrification of transport and the pursuit of sustainable energy solutions will shape the global landscape in unprecedented ways. The road ahead is charged with potential, both electric and lithium-powered.

Disclosure: Owners, members, directors and employees of carboncredits.com have/may have stock or option position in any of the companies mentioned: LIFT

Carboncredits.com receives compensation for this publication and has a business relationship with any company whose stock(s) is/are mentioned in this article

Additional disclosure: This communication serves the sole purpose of adding value to the research process and is for information only. Please do your own due diligence. Every investment in securities mentioned in publications of carboncredits.com involve risks which could lead to a total loss of the invested capital.

Please read our Full RISKS and DISCLOSURE here.

The post Charging Ahead: USA’s $623 Million Boost for EV Infrastructure & Ireland’s Lithium Quest appeared first on Carbon Credits.