China economy – A recent study by the Canadian company Geotab challenges common misconceptions about the rapid degradation of electric vehicle (EV) batteries 28-09-2024
China economy
According to recent data from the Department for Environment, Food and Rural Affairs (Defra), recycling rates for plastics produced by major UK companies have more than doubled over the past decade
In 2023, of the 2.3 million tonnes of plastic waste recovered, 1.2 million tonnes were recycled, resulting in a recycling rate of 52.5%. This is a significant increase from 2021, when only 25.2% of plastic waste was recycled—644,000 tonnes out of 2.6 million tonnes.
These figures focus on packaging producers who handle 50 tonnes or more and have an annual turnover exceeding £2 million, thus falling under regulations that mandate recycling a portion of their production. The past ten years have witnessed a surge in activism against plastic pollution, highlighting its severe impact on human health and the environment. This has prompted both government initiatives and private sector efforts to enhance recycling through policy changes and advancements in technology and infrastructure.
The official statistics also reveal that the overall recycling rate for packaging waste—including paper, cardboard, glass, metals, and wood—increased to 64.8% in 2023. This marks an improvement from 62.4% in 2022 and continues an upward trend since comparable data became available in 2014.
However, despite these positive developments among producers, Defra’s figures show that the UK’s household recycling rate has declined to its lowest level since comparable records began in 2015. This suggests a discrepancy between industrial recycling advancements and household recycling practices, indicating an area that requires additional focus and improvement.
China is reportedly planning to issue around 2 trillion yuan ($284.43 billion) in special sovereign bonds this year to stimulate its economy, according to two sources familiar with the matter
This initiative is in addition to existing efforts aimed at combating deflationary pressures and sluggish economic growth following the COVID-19 pandemic.
The Ministry of Finance intends to issue 1 trillion yuan of these special bonds to boost domestic consumption. Funds from this issuance will be allocated to increase trade subsidies, upgrade business equipment, and provide financial support to families with multiple children. China economy
Specifically, families with two or more children (excluding the first child) may receive a monthly allowance of approximately 800 yuan ($114) per child.
In a parallel move, China aims to raise another 1 trillion yuan through a separate special sovereign debt issuance. The proceeds from this will assist local governments in addressing their mounting debt issues. Despite substantial fiscal stimulus directed toward investment, diminishing returns and a staggering $13 trillion in local government debt have raised concerns.
Additionally, household spending in China remains below 40% of GDP, significantly less than the global average by about 20 percentage points. China economy
Some of these fiscal support measures could be announced as early as this week, the sources indicated. Both the Ministry of Finance and the State Council Information Office were unavailable for immediate comment. According to a Bloomberg report, up to 1 trillion yuan from the new bond issuance will be injected into major state banks to enhance their capacity to support economic activities.
A recent study by the Canadian company Geotab challenges common misconceptions about the rapid degradation of electric vehicle (EV) batteries
By analyzing data from over 10,000 electric cars across North America and Europe, the research found that battery capacity declines by an average of only 1.8% per year. This is an improvement over 2019 estimates, which suggested a 2.3% annual degradation rate. For some brands, the decline is even less than 1% annually, indicating that battery life may exceed the vehicle’s average lifespan. China economy
In Italy, where cars typically remain on the road for about 13 years—one of the highest averages in Europe—Geotab’s findings imply that it could take at least 20 years before battery deterioration significantly affects vehicle performance. Contrary to popular belief, frequent charging does not accelerate battery degradation. China economy
However, the study did find a correlation between regular use of DC fast charging and increased battery wear, especially in hot climates. This effect varies among different models and manufacturers.
To optimize battery health, the study suggests being mindful of external temperatures during charging and keeping the vehicle cool on particularly hot days when possible. These insights help alleviate concerns about the durability of EV batteries. China economy
They indicate that batteries are likely to maintain acceptable performance levels throughout the vehicle’s useful life, making early replacement unnecessary and reinforcing the practicality of electric vehicles as a long-term investment.
Stellantis’s planned joint venture with Orano for battery recycling has collapsed, highlighting ongoing challenges in the automotive industry’s move toward electrification
This setback follows Automotive Cells Company’s recent suspension of gigafactory projects in Kaiserlautern and Termoli, which had already cast doubts on the sector’s electrification efforts.
Less than a year ago, Stellantis and Orano signed a memorandum of understanding to strengthen Stellantis’s role in the electric vehicle battery value chain and secure better access to raw materials. The joint venture was set to focus on recycling end-of-life batteries and processing waste from gigafactories, aiming to enhance sustainability and resource efficiency in battery production. China economy
However, both companies have now announced they will not finalize the contracts needed to establish the joint venture. Their joint statement did not specify reasons, but it’s likely influenced by factors causing a slowdown in electrification across Europe’s automotive sector—such as economic pressures, supply chain disruptions, or strategic shifts.
Despite this development, Stellantis and Orano recognize the value of their collaboration over recent months. They have agreed to consider other potential commercial relationships, especially given the quality of the recycling processes developed by Orano. Orano, a French multinational born in 2017 from a segment of the nuclear energy giant Areva, has made significant advancements in recycling technologies. China economy
The dissolution of this joint venture underscores the complexities automakers face in transitioning to electric vehicles, particularly in establishing sustainable and reliable supply chains for critical components like batteries. It reflects broader industry challenges that may affect the pace and success of electrification initiatives in Europe.
LyondellBasell emphasizes sustainability at Fakuma through its “solutions for a better tomorrow” initiatives
The company is investing significantly in securing feedstock, expanding recycling capacity, and developing technologies to reduce plastic waste. Its Circulen portfolio offers recycled and renewable-based polymers that minimize environmental impact without compromising performance. China economy
At Fakuma, LyondellBasell will unveil Hostacom, a foaming material for automotive interiors. Utilizing advanced catalyst technology, Hostacom enables the production of lightweight, durable, and visually enhanced parts like door panels, featuring low emissions and scratch resistance. This product advances sustainable automotive design by focusing on both performance and eco-friendliness.
The company will also present CirculenRecover, a polypropylene compound with 20% recycled content, tailored for automotive exteriors. CirculenRecover offers a unique mold-in-color aesthetic and simplifies recycling, making it attractive for automakers seeking both performance and sustainability. China economy
In the growing electric vehicle (EV) market, LyondellBasell is delivering material solutions that meet stringent demands. It will showcase engineered polymers for EV charge port assemblies and battery systems, designed for high strength, stiffness, and durability. These materials address functional and aesthetic challenges in EV design, enabling manufacturers to create lighter, more efficient, and cost-effective vehicles. Their polymers also extend to EV charging stations, ensuring reliability and safety in components like charger enclosures and plugs. China economy
Additionally, LyondellBasell will display Polybatch Effects FROST, a breakthrough in rPET packaging. This solution provides a matte frost effect while maintaining compatibility with recycling processes, meeting aesthetic and sustainability goals in industries like food and cosmetics.
Circulate Capital has invested in Cirklo, a company formed by eB Capital, to enhance PET recycling in Brazil
Their partnership aims to divert over 1.3 million tons of plastic from disposal to recycling through new sustainability projects in the plastics industry. China economy
In 2022, eB Capital merged two leading recycling companies, Green PCR and Global PET, into Cirklo. Now the largest independent PET recycler in Brazil, Cirklo has the capacity to recycle over 4 billion bottles annually. With Circulate Capital’s support, the company plans to expand operations in the Southeast and Northeast regions, promoting sustainability in the production chain. The recycled PET produced by Cirklo is suitable for packaging, including food-grade products.
This investment marks Circulate Capital’s second venture in Latin America, following their involvement with Colombia’s Polyrec S.A.S. Funding for Cirklo’s expansion is partly sourced from Circulate Capital’s $70 million Latin America and Caribbean initiative launched in 2023. This initiative is supported by IDB Lab and major corporations like Chevron Phillips Chemical, Danone, Dow, Mondelēz International, and Unilever. China economy
Brazil’s upcoming presidency of the G20 and hosting of COP30 in 2025 position the country to lead the global climate agenda. Significant progress has been made in plastic recycling, with a 25.6% recycling rate in 2022—the highest in Latin America and comparable to Europe. According to a study by PICPlast and consultancy MaxiQuim, recycled plastic production in Brazil reached 1.1 million tons in 2022, a 9% increase from the previous year.
China economy