EU seeks battery autonomy, but first it needs graphite

Europe needs to make more of the graphite used in electric vehicles. A single model from Tesla, for example, requires about 70 kg of the material. (Shutterstock)
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Updated 23 February 2020

EU seeks battery autonomy, but first it needs graphite

  • The key component in electric vehicles is currently mostly produced in Asia

VÉNISSIEUX: As Europe looks to declare its tech independence by becoming a leader in next-generation batteries, it will have to start by making its own graphite. The problem is, nearly all of it now comes from Asia, mainly China.

So France’s Carbone Savoie and Germany’s SGL Carbon, the only European firms deemed capable of taking up the challenge, have been corralled into an ambitious battery alliance launched by Brussels.

“Thank you for bringing us on board this ‘Airbus for batteries,’ though to be honest, we weren’t even on the passenger list,” Carbone Savoie’s chairman Bruno Gastinne told France’s deputy finance minister Agnes Pannier-Runacher on Thursday.

They were attending the ribbon-cutting for a new, more efficient carbon baking oven, a “brick cathedral” some five meters underground at its site in Venissieux, just south of Lyon in southeast France.

The €11 million ($11.9 million) investment will allow the company to double its carbon production, the first step for making the synthetic graphite prized for batteries.

The carbon is then shipped to its factory at Notre-Dame de Briancon in the Alps, where hydroelectric dams provide the intense electrical currents needed to turn it into graphite.

Carbone Savoie says it has developed a new production technology that uses just half the energy required currently, and cuts waste levels in half. “It will be less expensive and more efficient than Chinese graphite, while consuming less energy. The hard part is that we have to move quickly,” said Regis Paulus, the firm’s head of research and development. “To catch up with the Chinese, we have to invest massively,” he said.

EU authorities in November unlocked a whopping €3.2 billion for the European Battery Alliance, hoping to attract an additional €5 billion in private money to build the factories needed to meet homegrown demand.

Automakers are racing to shift to electric fleets, under growing pressure to cut carbon emissions and the reliance on fossil fuels. Batteries make up about 40 percent of the value of an electric car, but are currently made by companies in South Korea, China and Japan.

A single electric model from Tesla, for example, requires around 70 kilogrammes (150 pounds) of graphite, Carbone Savoie’s CEO Sebastian Gauthier said. While the material can be mined, battery producers usually prefer the more expensive synthetic versions that offer improved technical performance. It is the only key component of lithium-ion batteries that can be produced in a factory — nickel, lithium, manganese and cobalt must be mined.

But without government help, few of Europe’s industrial giants were willing to embark on the costly crusade to build their own batteries.

The push has been a boon for Carbone Savoie. Even so, the company still does not produce anywhere near enough graphite required to fulfil Europe’s electric car dreams, or its own goal of becoming “the European leader in battery graphite” by 2025.

That would require a good chunk of the funds promised by Brussels, which have been pledged by Germany, France, Italy, Poland, Belgium, Sweden and Finland.


British Airways burning through cash, CEO urges unions to engage

Updated 04 June 2020

British Airways burning through cash, CEO urges unions to engage

  • Job losses necessary as cash reserves of IAG, British Airways’ parent company, would not last forever

LONDON: The boss of British Airways said its parent company IAG was burning through $223 million a week and could not guarantee its survival, prompting him to urge unions to engage over 12,000 job cuts.
British Airways came under heavy attack from lawmakers in parliament on Wednesday, who accused it of taking advantage of a government scheme to protect jobs while at the same time announcing plans to cut its workforce by 28 percent.
Planes were grounded in March due to coronavirus restrictions, forcing many airlines to cut thousands of staff as they struggle without revenues. Airlines serving Britain now face an additional threat from a 14-day quarantine rule.
In an internal letter to staff seen by Reuters, Alex Cruz, the chief executive of British Airways said the job losses were necessary as IAG’s cash reserves would not last forever and the future was one of more competition for fewer customers.
BA also wants to change terms and conditions for its remaining workers to give it more flexibility by, for example, making all crew fly both short and long-haul.
Cruz said IAG, which also owns Aer Lingus, Iberia and Vueling, was getting through $223 million a week, meaning that it could not just sit out the crisis. The group had €10 billion of liquidity at the end of April.
“BA does not have an absolute right to exist. There are major competitors poised and ready to take our business,” Cruz said in the letter.
He urged two unions which represent cabin crew and other staff, GMB and Unite, to join in discussions to mitigate proposed redundancies. Pilots union BALPA is “working constructively” with the airline, he added.
Cruz also joined other airline bosses in criticizing Britain’s quarantine rule, due to come into effect on June 8, calling it “another blow to our industry.”