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An exclusive interview with the Rivian CEO about the future of electric vehicles.
It has been an astonishing year for the electric vehicle industry. In the past 12 months, the world’s three largest car markets — the United States, the European Union, and China — have unveiled aggressive new subsidies or ambitious new targets to accelerate EV adoption. Even automakers that have long sat out the electric revolution, such as Toyota, are now getting in the game.
That might be good news for R.J. Scaringe, the founder and chief executive of Rivian Automotive. Rivian is angling to use the EV revolution to become one of a handful of new American entrants to the automotive space. You can think of its high-end trucks and SUVs, the R1T and R1S, as the Patagonia meets Apple meets Jeep of the vehicle space. But the company, which designs and manufactures its trucks in America, has struggled with scaling issues and delivered only 42,000 electric vehicles since 2021.
I recently had the chance to sit down with Scaringe and chat about what’s next for Rivian and the broader electric vehicle industry. Our conversation has been lightly edited for concision and clarity.
It seems like over the past year — between the Inflation Reduction Act, between things we’ve seen internationally — the entire electric-vehicle market has undergone a number of shifts that the wider world still hasn’t caught up to yet. Could you give us a snapshot of the sector right now, as you see it?
I think we have seen these really large-scale shifts. You could almost look at it across every vantage point.
You have it from the vantage point of policymakers. If you'd told me just a few years ago that Europe would be committing to 100% of new vehicles being electric, you know, within the next 10 years. That California would be making that commitment in the same way. That the United States, through EPA regulations, is going to be 60% EV of new sales by 2030, I don't think I would have believed it. It’s awesome to see that — literally the reason I started the company is to help drive and instigate that change.
But in parallel with that, we see a shift in how consumers are looking at it. The performance envelope and the drivability of an electric vehicle makes it so much more desirable than an alternative. Buying a non-EV just feels very old. Aside from carbon emissions and environmental responsibility, it's just not interesting.
And then I think the third element is the way that the manufacturers have responded. Up until not too long ago, electrification was sort of a thing you had to do to generate some credits and to look responsible as a company, but they weren't really committed to it. Now, most big vehicle manufacturers have begun to really lean into their electrification strategies.
So with all those things happening, then the question becomes like, what does five years from now look like? What does 10 years from now look like?
I think policy is going to ping-pong around a little bit, unfortunately. Electrification and sustainability have become politicized — it makes no sense at all that it has been, but unfortunately it is. So as a result of that, you will see a little bit of variation there.
But I don't think, at a macro level, [the trend] is going to change. The slope of the curve is going to continue to be policy that drives toward electrification, policy that drives toward moving off of fossil fuels. I think consumers have made the switch and it's a diode-like switch — it's one directional.
I don't think we're going to see consumers have any reignited interest in combustion-powered vehicles. You're going to see a lot of entrenched things try to switch that. But the reality is consumers have made it clear that shift is going to come. It’s not as if everyone has reached that decision [today]. But you can see the slope of the curve.
Once you drive an electric vehicle, again, you can't go back. So for example, for us, more than 75% of our vehicles are sold to first-time EV customers, which is really cool, which means our brand is creating new EV customers. We're helping to drive that change. But once you're in a vehicle, you just can't imagine, like, going back to the pump or dealing with the sound of an engine.
And manufacturers now are all working towards both creating supply of vehicles, but also making sure that the products that they offer are interesting enough to generate demand.
The big question is: There's new brands like us, and then there's existing brands, and which of those brands emerge as the sort of stronger pools of demand — that because of their product attributes, the way those attributes are combined together, the way those are put in under a brand position, which of those offerings, create sort of breakaway interests from consumers?
Do you see consumers deciding my next vehicle will be electric? Or at this point, are consumers still being like, I'd like to go electric, but I want these different attributes. And I'm looking around.
Yeah, both. I think the vast majority of customers are now at least asking themselves the question, "Should I be thinking about electric?"
That doesn't mean they're going to decide on electric, either because of concerns around charging infrastructure or price, or the vehicle that they're looking for doesn't exist — "I want a minivan, but there's no electric minivan that's out there.” There may not be a form factor that fits your desire to see convertible electric vehicles today. So like you may end up in a non-EV choice, because it doesn't exist yet on the supply side. But everyone is asking the question. Or a lot of people are.
And I think what will happen over the next 10 years is those questions today that may not get answered with something that leads to an electric vehicle purchase, that will change. The vehicle that I want, that form factor will be available in an electric offering. And the infrastructure is getting solved too.
Then I think the reality of buying a combustion powered vehicle, in light of the policy that's coming, is sort of like building a horse barn in 1910. Like, imagine buying a Chevy Suburban in 2030. Like, what are you going to do with that, right? In 10 years? Yeah, like gas stations will be slowly disappearing. It's just weird.
It's also, like, your second largest asset.
You're buying this thing that absolutely has no future in our society. And will just increasingly become more and more of a relic of the past. But I think the anticipation of that is leading people to say I don't want to be buying a relic of the past.
I think we're one product cycle away from that really driving consumer demand.
What year do you see?
I think towards the end of this decade. This swing is nonlinear because once you get to that point, whether you're thinking about residual value, or just thinking about standing out as, like, the weird person who still drives a combustion powered vehicle, it's just gonna swing really fast.
What’s the biggest obstacle to electrification right now — to consumers making that decision? Is it just acceptance? Is it charging? Additional policy that needs to happen?
There's a number of them. But I think the biggest is customer choice.
Until recently, there were very, very few choices. Even today, I'd say there are very few good choices, especially across all price bands. So if you want to spend $20,000, you just don't have a good choice to make. You want to spend $35,000 or $40,000, there's a couple of choices. But there's still not a lot of choices. And we've seen that manifest in the extreme market share that Tesla has, because of the lack of choice from other manufacturers.
It's funny, because there aren't that many sub $25,000 new vehicles, period. Do you think we'll get back to that place in a few years in EVs? Or that we might have, you know, a Model 3 that gets there with local incentives, but everything will be nominally above $25,000.
$25,000 starts to get pretty low. I mean, the average selling price, or ASP — like, across the industry now — the average selling price of a new vehicle in the States is about double that, right? It’s like $50,000.
Also, I remember when I could buy a new car for less, but, like, inflation is happening.I bought a new car back in the day for less than $10,000. You can't do that anymore.
What does Rivian need to do to be ready for that moment, five years from now, when consumers are ready to make that leap?
This is the really exciting part for us.
The objective of our R1 program was to serve as our handshake to the world. I often say, it's like it opened the brand umbrella for us as a company and it communicated from a brand point of view and values point of view.
We have vehicles that, we say, enable adventure. They can take your kids to the beach, they can take you to the theme park, they can go to your folks' house for the weekend, you can go mountain biking — just these vehicles that enable life.
And we did that at a premium price with a flagship set of products, the R1T and R1s, that have led to the R1 vehicles being the best-selling electric vehicles over a $70,000 price point. Within that range there, they are the best selling vehicles in the premium segment today, the best-selling electric vehicles.
So as we now look at R2, we need to take that same brand excitement that we've generated, and apply it to a smaller form factor and a much lower price point, and therefore a much bigger addressable market, and carry with it the essence of what was embodied in R1, but make it accessible to so many more people.
So the timing of that program fits beautifully with what we see as this big shift, as a lot of people ask themselves, Am I gonna get an electric car? Well maybe the next one.
So we hope that the R2 platform helps pull a lot of customers across that jump where I want to spend $45,000 or $40,000 in a vehicle. It needs to fit my life. So it's my kids, my pets, my gear — it needs to be able to go places and get dirty and go down a rough road. Our brand fits that so well, but today, a lot of customers just can't afford it, or don't want to spend $70,000-plus, so that's where R2 comes in. I couldn't be more excited about what's coming with that program. Because it just fits so nicely into the market.
What’s the timing on R2?
Beginning of '26. So that vehicle will be produced in our second plant and in Atlanta.
I want to talk about factories for a second. I think Rivian was early to what we would now call reshoring — although, of course, for Rivian, it wasn't really "re," it was just locating manufacturing in the United States with engineering talent located here as well. Lots of other companies are now joining that for various policy and political risk reasons. I think for Rivian, the ramp up has been challenging. What advice would you have to other firms looking to, you know, stand up a manufacturing line and a new factory in the United States?
Yeah, well, we launched our R1T, the R1s, and then our two different variants of our commercial van. In any vehicle, a launch is tough, you’ve got thousands of components coming from hundreds of suppliers that have to ramp in unison and be beautifully synchronized. Any one of those parts can throw it off — there's a whole host of things that can go wrong from a quality or production process point of view. And so we were doing that for the first time. New workforce, new supply chain, new plant, new product, new technology.
And we weren't only doing the first time, we were doing it the first time times three, so it's just really challenging.
And then the operational backdrop was far worse than what we could have ever imagined. So the supply chain catastrophe that was 2022 was our launching ramp here. And then managing the build out of a large 5,000-plus person workforce to produce vehicles in our first plant, in the middle of a pandemic, was also really hard.
It was a hard launch and hard ramp. I don't think you could have designed a more complex environment to do that in. And the strategy we had of those three vehicles happening at the same time, in hindsight, knowing what we know now about what the environment was, we would have created more separation.
In 2017, someone should have come to you and been like, there's going to be a global pandemic.
If somebody only told us that.
So as we think about R2, we're simplifying the launch, we have one product that we're launching, it's a new product, leveraging a lot of the existing technology topology that we have in R1. So there's less technical risk, obviously. There’s also dramatic focus on part simplification, joint simplification and manufacturability. So it’s a very, very different vehicle architecture than what we did in R1. All the scars from ramping R1 are informing and driving this deep focus on manufacture building as we go into R2.
Would that have happened anyway or because of the needs of the R2 platform?
I think it's sometimes the pains of the present that enable the skills of the future. I look at like all the pain we've gone through on R1, created this proximity and an appreciation for manufacturing simplicity that, one, everyone would have agreed that that's necessary for R2, but two, embody that in such a deep way because you've lived through it is really powerful. And it's not like a whole different team is doing R2, it's the team that had to go through the R1 launch.
We’re coming off that — there's still people that are involved with the ramp, but a lot of the people that were on that are now moving to our or have moved, I should say, to R2, and so they're directly talking about stuff like, Hey, that was a real big challenge when we had to attach the C pillar trim on this part because the clips do this, this and this. Let's rethink that. Heck, let's get rid of all the clips. Those types of big questions are now coming up.
How do you see and how you think about vehicle weight right now?
Weight or wait? We get asked about both.
Ha, that’s true. Weight — W E I G H T. Rivian has obviously made two very big vehicles right now, and that increases the material needed for them — the bigger the vehicle, the bigger the battery, the bigger the mineral needs. At the same time, consumers seem to prefer larger motor vehicles. So I'm curious, like, do you think we're gonna find a sweet spot on vehicle weight? Do you think there's a trade-off between consumer demand, consumer tastes, and vehicle size? And if so, what does that mean for profitability? Because if vehicles are getting bigger, and it also means less safe for other people, not vehicles?
Yeah. There's a lot of questions.
First of all, our R1 vehicles are and will be our biggest consumer vehicles. They’re the flagship vehicles, as you'd expect — we have a three row SUV and, like, call it a large truck. And as a result of their physical size, their weight is also high, as a result of batteries, and drive train, chassis architecture, all this stuff. R2 will be a much lighter product, inherently.
And that's, I think, where you start to see where the vast majority of demand is going to be — that mid-size or smallish crossover and SUV space, where the vehicles are themselves smaller and therefore require less materials. This goes back to before the start of the company.
We also have to recognize that in order to drive electrification and to drive this transition, we have to be building products that are both just deeply desirable, but also respond to what customers want. So I talked before about what are the things that would block EV adoption? If we told customers the only way you can get an EV is if it's a small sedan, we're not going to sell a lot of EVs, you're going to see low penetration because customers want a vehicle that can fit all their kids, the gear, their stuff, they want larger SUVs —
And for energy density reasons, actually, the smaller the vehicle, the more likely it is to be fossil.
There's a lot of challenges. So I think what we're seeing is customers do want things that fit a form factor that applies what they've grown accustomed to. And we started with the large truck and largest SUV to do that.
The other thing just to note, and I think this is often missed, but if you're to pick the vehicles on the road, that from a carbon emissions point of view, you wanted to reduce carbon emissions by the largest percentage, you wouldn't pick the smallest vehicles in the road to replace, you'd go to the biggest, the least efficient. A 17 mile-per-gallon, 3-row SUV being replaced with a 80 to 90 mile-per-gallon equivalent R1S is a far better trade than a 45 mile-per-gallon ICE Vehicle being replaced with a 100 mile per gallon equivalent EV. Those deltas are really important.
And then I think the last part is — and this is something that I sort of lightly referenced — but there's so much amplified noise around the imperfections of electrification today that is creating a bunch of misinformation around the sustainability of an electric vehicle. No one, including ourselves, is saying an electric vehicle has zero footprint. Everything we do in our industrialized society has a footprint. If you use a light switch in your house, you have footprint. If you buy anything, or eat anything, for that matter, it has a footprint.
So the question is how do we approach a world that can be sustainable for generations upon generations, which means it needs to be a world that's powered by the sun. So that's either direct with photovoltaics or indirect with wind but either way it's sun powered. And that relies on us shifting off of an overall industrial economy that's running on fossil fuels.
And core to that is the things that need to move through stored energy. I think the vast majority [of that stored energy] will likely be in the form of batteries. There are hard problems like planes, but by the end of my lifetime, very few things on the planet will move with propulsion coming from fossil fuels.
And so the world is going to have a diverse set of needs. You're going to see everything from large trucks to buses, to large SUVs, to minivans to station wagons to hatchbacks to sports cars to — everything needs to be electrified.
And that means our vehicles are going to be a little heavier across the board because you know, the average vehicle weight is going to go up because everything's carrying a battery as opposed to a plastic fuel tank.
But you also get into a world where this becomes very circular. So we could talk about raw material extraction and some of the challenges with that. But in my lifetime, we'll also see a world where the source of our lithium is old lithium-ion batteries. And so you get this closed loop and it's why every lithium manufacturer, lithium processor in the world is focused, very focused on access to recycled content, and recycling becomes a really key feedstock as this system starts to reach scale.
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Jesse gives Rob a lesson in marginal generation, inframarginal rent, and electricity supply curves.
Most electricity used in America today is sold on a wholesale power market. These markets are one of the most important institutions structuring the modern U.S. energy economy, but they’re also not very well understood, even in climate nerd circles. And after all: How would you even run a market for something that’s used at the second it’s created — and moves at the speed of light?
On this week’s episode of Shift Key Summer School, Rob and Jesse talk about how electricity finds a price and how modern power markets work. Why run a power market in the first place? Who makes the most money in power markets? How do you encourage new power plants to get built? And what do power markets mean for renewables?
Shift Key is hosted by Jesse Jenkins, a professor of energy systems engineering at Princeton University, and Robinson Meyer, Heatmap’s executive editor.
Subscribe to “Shift Key” and find this episode on Apple Podcasts, Spotify, Amazon, YouTube, or wherever you get your podcasts.
You can also add the show’s RSS feed to your podcast app to follow us directly.
Here is an excerpt from our conversation:
Jesse Jenkins: If I’m just a utility operating on my own, I want to basically run my fleet on what we call economic dispatch, which is rank ordering them from cheapest to most expensive on a fuel or variable cost basis, and trying to maximize my use of the less expensive generators and only turn on the more expensive generators when I need them.
That introduces this idea of a marginal generator, where the marginal generator is the last one I turned on that has some slack to move up or down as demand changes. And what that means is that if I have one more megawatt-hour of demand in that hour — or over a five-minute period, or whatever — or 1 megawatt-hour less, then I’m going to crank that one generator up or down. And so the marginal cost of that megawatt-hour of demand is the variable cost of that marginal generator. So if it’s a gas plant that can turn up or down, say it’s $40 a megawatt-hour to pay for its fuel, the cost on the margin of me turning on my lights and consuming a little bit more is that that one power plant is going to ramp its power up a little bit, or down if I turn something off.
And so the way we identify what the marginal value of supplying a little bit more electricity or consuming a little bit more electricity is the variable cost of that last generator, not the average cost of all the generators that are operating, because that’s the one that would change if I were to increase or decrease my output.
Does that make any sense?
Robinson Meyer: It does. In other words, the marginal cost for the whole system is a property of the power plant on the margin, which I realize is tautological. But basically, the marginal cost for increasing output for the entire system by 1 megawatt-hour is actually a property of the one plant that you would turn on to produce that megawatt-hour.
Jesse Jenkins: That’s right, exactly. And that can change over the course of the day. So if demand’s really high, that might be my gas plant that’s on the margin. But if demand is low, or in the middle of the day, that gas plant might be off, and the marginal generator during those periods might be the coal plant or even the nuclear plant at the bottom of the supply curve.
Mentioned:
Jesse’s slides on electricity pricing in the short run
Jesse’s lecture slides on electricity pricing in the long run
Shift Key Summer School episodes 1, 2, and 3
This episode of Shift Key is sponsored by …
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Music for Shift Key is by Adam Kromelow.
Generate Capital’s Jonah Goldman makes his case.
The Inflation Reduction Act sparked a predictable surge in clean energy-related investments from the law’s signing in 2022 through the 2024 election, before President Trump’s second term ushered in an era of cancellations, closures, and downsizing. Of the domestic projects announced since the IRA’s passage, a total of 35 have been nixed or scaled back so far this year — more than in all of 2023 and 2024 combined, according to estimates from the environmental advocacy organization E2. This accounts for over $22 billion in lost investment and 16,500 in lost jobs.
“There’s a drastic decrease in the amount of new [clean energy] investments,” E2’s Michael Timberlake told me. After the IRA’s passage, he explained, nearly every month saw over a billion dollars invested in new clean energy projects. But since December of last year, monthly investment has come in below a billion dollars more often than not.
Domestic electric vehicle and battery manufacturing projects have been hit the hardest, as these sectors are staring down a federal bureaucracy clearly hostile to their tech on the one hand and Chinese competitors that are already leagues ahead of them on the other. But there is a bright spot: E2’s data shows that the grim outlook for clean energy projects is largely confined to the manufacturing sector. Many large-scale energy generation projects might actually, maybe, be mostly okay.
That’s what Jonah Goldman of the infrastructure investment firm Generate Capital is banking on. As electricity demand rises for the first time in over a decade, the need to deploy cost-competitive grid energy is only increasing. Thus, Goldman sees plenty of reason to continue investing in a renewables buildout — solar especially, which can often be deployed more quickly, flexibly, and economically than any other form of generation, politics aside.
“What is not a question really anymore is whether these projects are going to get built,” Goldman told me. “There’s just not another option. Even if you think of doubling our investment in gas generation, you still don’t get to this incredible increase in power demand that we need in order to reach the projections that we’re getting.”
Taking a closer look at the post-IRA projects that have been either canceled or scaled back shows that solar is indeed the most resilient investment of the bunch. Since the IRA’s passage, about 12% of announced solar projects have been canceled or downsized, compared to 25% of wind projects, 19% of EV projects, and 34% of EV battery projects. Only three of the 35 projects hit this year were related to solar, and only one of those was for solar generation.
Despite the overall dour domestic investment outlook, Timberlake thus agrees with Goldman that solar in particular isn’t grinding to a halt anytime soon. The market signal for clean energy, Timberlake said, is “indisputable.” The buildout might happen more slowly than it otherwise would have, as the administration continues to unspool regulatory red tape for these projects, but it’ll happen.
And, of course, it will get more expensive. Because while Trump’s One Big Beautiful Bill maintains investment and production tax credits for most clean energy technologies through 2033, it cuts credits for solar and wind projects that either start construction after July 2026, or, if they haven’t started by then, are placed in service after 2027.
While Goldman hates what that will do to electricity prices, he doesn’t seem too worried about it hurting Generate’s ability to invest. For the moment, he told me, this timeline leaves the firm with a strong pipeline of opportunities not only in solar, but also in other categories like battery energy storage, geothermal, and sustainable fuels that have largely retained their IRA incentives. “You’re still talking about hundreds of billions of dollars of available investments that don’t wear that risk at all,” he said.
In fact, there are also already so many renewables projects under construction or set to begin soon that “we’ve got more investable opportunities than we have capital to invest,” Goldman explained. Rather than a lull, the tax credit cutoff date is now creating an incentive for investors to throw their support behind projects that appear poised to meet the deadlines.
That won’t last forever. After the credits phase out, investment could certainly dip, Goldman said, “until either those incentives are restored — which they still could be — or the market figures out how to effectively price those projects without that incentive.” Because tax-credit eligible projects that began construction prior to July 2026 will still be coming online for the next few years, Goldman predicts the lull could start around 2029.
He’s not convinced the incentives are gone for good, though. Solar and wind tax credits have suffered through many periods of uncertainty during their decades-long history, always ultimately enduring. And while the industry shouldn’t bank on a mid-term congressional shakeup laying the groundwork for a credit extension, it’s always a possibility — especially given looming electricity price hikes. That could rile up voters enough to begin chipping away at the partisan divides that have formed around clean energy, fossil fuels, and how the heck to power all of these AI data centers.
“We’re no longer talking about a political issue, despite the fact that they made this a political issue.” Goldman told me. “What we need is more electrons on the grid for as affordable a price as possible. And some of those will be generated from gas, and some of those will be generated from renewables.”
The U.S. is also not the only place for infrastructure investors to make money. While domestic clean energy investment may be down, the first half of 2025 saw global private infrastructure funding increase significantly compared with the prior two years. Data center and renewables-focused funds drove the trend, making up 45% and 36% of total investment raised, respectively. The “power and transmission” sector — which includes fossil fuel-fired generation — comprised a mere 12%.
But given that climate funds from all corners of the globe do primarily invest in the U.S., this certainly points to a sustained interest in building domestic clean energy infrastructure. Or, as Goldman put it, “the fundamentals of the market are complicated but only pointing in one direction — a deep thirst for quick, buildable power. And there’s only certain technologies that can fill that deep thirst.”
On Interior’s birdwatching, China’s lithium slowdown, and recycling aluminum
Current conditions: Hurricane Erin is gathering strength as it makes its way toward Puerto Rico later this week • Flash flooding and severe storms threaten the Great Plains and Midwest • In France, 12 administrative regions are on red alert for heat as temperatures surge past 95 degrees Fahrenheit.
Ford announced plans on Monday to deliver a $30,000 mid-size all-electric truck in 2027, in a potential shakeup of an EV market that’s been plagued by high costs. But the truck — which is rumored to revive the retro name Ford Ranchero — wasn’t really the main news. The pickup is part of Ford’s plan to “reimagine the entire way it builds EVs to cut costs, turn around its struggling EV division, and truly compete with the likes of Tesla,” Heatmap contributor Andrew Moseman wrote, which the company has dubbed its second “Model T moment.”
The strategy embraces a more minimalist, software-driven method of car design that EV-only companies such as Tesla and Rivian employ, allowing them to make mechanically simpler vehicles with fewer buttons and parts and more functions run by software through touchscreens. The push could “change everything” and “disrupt the U.S. auto industry,” wrote Inside EVs.
The Department of the Interior’s Fish and Wildlife Service is sending letters to wind developers across the U.S. asking for volumes of records about eagle deaths, indicating an imminent crackdown on wind farms under the auspices of bird protection laws, Heatmap’s Jael Holzman reported. The letters demand developers submit a laundry list of documents to the Service within 30 days, including “information collected on each dead or injured eagle discovered.”
The Trump administration has ramped up its assault on the wind industry in recent weeks, de-designating millions of acres of ocean for offshore wind development and yanking federal approvals for the Lava Ridge wind project in Idaho. Here’s Jael with more on the escalation.
An explosion at a U.S. Steel plant outside Pittsburgh killed at least two workers and injured nearly a dozen more. The first worker confirmed to have died was Timothy Quinn, 39, a father of three and caretaker to his mother, his sister, Trisha Quinn told CNN. She said officials did not alert her to her brother’s death until 4 p.m., hours after the explosion occurred. “My dad worked at the steel mill for 42 years,” she said. “He would be disgusted at the situation right now.” U.S. Steel executives said they do not yet know what caused the blast. The name of the second worker to have died was not yet confirmed.
The Clairton Coke Works facility, which has operated for more than 120 years, is a key node in the American steel supply chain, providing iron for the blast furnaces in Braddock, Pennsylvania, and Gary, Indiana. It was slated for potential investments under Nippon Steel’s $15 billion acquisition of the American giant. The extent of the damage is unclear, but the reconstruction of the plant could pose a test of whether Nippon will invest in newer, cleaner technologies or rebuild the existing coal-fired equipment.
Chinese battery giant Contemporary Amperex Technology, or CATL, said Monday it would halt production at a major lithium mine, sparking a surge in lithium futures and miners’ share prices, Reuters reported. The move is seen as part of Beijing’s broader attempt to rein in China’s overcapacity in the battery market, which created a global glut. Stock in lithium companies outside China surged on the news, as did spot prices. The license on the mine, located in the southeast province of Jiangxi, expired on August 9. The site previously supplied up to 6% of the world’s lithium.
“I am bullish on the move. It is proof positive that Chinese producers can only operate at a loss for so long before shutting in production. When they do, the floor under prices starts to take shape,” Ashley Zumwalt-Forbes, the Department of Energy’s former deputy director for batteries and critical minerals, wrote on LinkedIn. “This move will not fix the sector’s structural challenges overnight, but it is a meaningful signal that the worst of the oversupply pressure may be behind us.”
President Donald Trump’s 50% tariffs on imported aluminum could spur a recycling boom, industry experts told The Wall Street Journal’s Ryan Dezember. Primary aluminum production dwindled over the last 25 years. Two of the first new smelters planned in the U.S. in decades are facing increased competition for electricity from data centers. Production is likely still a few years away. By contrast, aluminum-recycling plants can be built faster and cheaper — roughly two years and $150 million — and consume 5% of the energy needed for primary production since they rely on chemical reactions to break down wasted metal. “Recycling is the answer,” said Duncan Pitchford, the executive in charge of recycling giant Norsk Hydro’s upstream business in the U.S. “The metal is already here.”
Scientists at the University of Illinois Urbana-Champaign and Princeton University re-engineered the metabolism of the yeast Issatchenkia orientalis to supercharge its fermentation of plant glucose into succinic acid, an important industrial chemical used in food additives and agricultural and pharmaceutical products. The natural fermentation process, relying on yeasts and renewable plant material, is far less carbon intensive than the conventional production using petrochemicals. “These advances bring us closer to greener manufacturing processes that benefit both the environment and the economy,” Vinh Tran, study’s primary author, said in a press release.