⚡️🔋Current Events 4/3/23: OPEC cuts production, New US Battery Recycling Plant Opens, Tesla Q1 Numbers, and EV Tax Credit Updates on April 18th
Big question, will EV demand get a boost with more high gas prices? New recycling plant in GA. Tesla broke another Q1 record. Also, EV Tax Credit talk, bring preferred caffeine.
A happy Monday evening to everyone,
Welcome back to Current Events, where we bring you news and lore from the world of electrification. This weekend had some interesting developments and we’re excited to kick the week off right. Let’s jump in.
OPEC cut production last Sunday. What does this mean for EVs?
As of writing this article, the price of crude oil is already up ~7% after OPEC announced the cuts. The average price for regular gasoline in the United States on Sunday was $3.51 a gallon, rising over 13 cents in the past month. Since everything in the economy uses energy, when energy prices go higher, everything tends to get more expensive. Price increases for energy are a major factor in the economic inflation still being experienced today.
So what does this mean for EVs and electrification? Generally speaking, when gasoline prices go higher because of reductions in oil output, it usually has the effect of pushing more people and their families who are in the market for a new vehicle to make the switch to electric, assuming there are affordable options available. Electricity is much more price stable and thermally efficient as a fuel from production, to transmission to the battery pack, to power delivery at the vehicle level. Customers can expect great savings by converting to electric if they happen to be in the market for new transportation options.
For commuters who are looking for more affordable transport but aren’t ready for or interested in a new car, I highly recommend considering electric micro-mobility options. During this period of time when gas prices will definitely increase, these vehicles are incredible workhorses that stretch every kilowatt-hour as far as possible.
E-Scooter Options for Non-Car Commuters:
EV Tax Credit Guidelines take effect on April 18th, 2023
The new rules taking effect on April 18th (Tax Day) will affect which vehicles are eligible to give their owners a federal tax credit that can be used towards federal tax liabilities. Important to note, if you do not owe money to the IRS, this credit is not going to be accessible to you at all, as it is a credit, not a rebate. If you do not have any tax liability, you will not get the credit back as a refund. Since taxes tend to put people to sleep, Current Events has made a non-drowsy flowchart to help everyone understand how the rule works. Here it is below:
If by the third question, you felt like you were being asked the airspeed velocity of an unladen swallow, I completely understand. These are not questions that typical customers would be able to answer without guidance. Store employees and dealers could likely provide insight into which of their offerings are eligible.
The Department of Energy Office of Energy Efficiency & Renewable Energy will be updating the list of qualifying vehicles and credit amounts on April 17, 2023, and Current Events will make sure to update everyone on the new list as soon as it’s available that day. For now…
EVs eligible for the credit if delivered on or before April 17th:
2022 - 2024 Cadillac Lyriq
2022 - 2023 Chevrolet Bolt
2022 - 2023 Chevrolet Bolt EUV
2024 Chevrolet Silverado EV
2022 - 2023 Ford E-Transit
2022 - 2023 Ford F-150 Lightning
2022 - 2023 Mustang Mach-E
2023 - 2024 Genesis Electrified GV70
2021 - 2023 Nissan Leaf (All Trims)
2022 - 2023 Rivian R1S
2022 - 2023 Rivian R1T
2022 - 2023 Tesla Model 3 Standard Range RWD
2022 - 2023 Tesla Model 3 Long Range AWD
2022 - 2023 Tesla Model 3 Performance AWD
2022 - 2023 Tesla Model Y Long Range AWD
2022 - 2023 Tesla Model Y Performance AWD
2023 Volkswagen ID.4 (All Trims)
Ascend Elements opens EV Battery Recycling Operations in Georgia.
Ascend Elements, based in Westborough, Massachusetts, specializes in sustainable, closed-loop battery material solutions for applications in electric vehicles. The firm just opened its first commercial-scale, lithium-ion battery recycling facility in Covington, just around 35 mi from Downtown Atlanta. The $50 million facility is among North America's most extensive electric vehicle battery recycling plants. It has an annual capacity to process 30,000 metric tons of used lithium-ion batteries and manufacturing scrap, roughly equivalent to 70,000 electric vehicle batteries per year.
The company recovers up to 98% of critical battery metals using proprietary processes, reducing the carbon footprint of new electric vehicle battery cathode materials by ~90%. The facility, powered by renewable energy and featuring onsite wastewater recycling and treatment systems, currently employs about 100 team members. Ascend has said it has plans to increase its workforce to 185 by 2024.
Best of luck to the Ascend team as they ramp up their operations to support the vast production required to electrify the world!
Tesla hits a record Q1 Number… Again!
Tesla just announced they managed to have 440,808 vehicles produced and 422,875 vehicles delivered in the first quarter of 2023. Deliveries went up 36% YoY despite tough economic conditions and high interest rates. Good luck to the Tesla team on the hard road to reaching 2 million vehicles per year.
Thanks again for being part of the Current Events community, where I write hoping to guide people through the world of electrification. Your support for this project means everything.
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With love and gratitude,
Renato
Renato A. Amboss is the author of Current Events, The All-Electric Newsletter. He is also the Founder and First Pilot of Ronin EV. The thoughts and opinions expressed here are his own. None of the views expressed are intended as investment advice of any kind and should not be taken as such. Have a lovely day!