The Return Of Coal–Climate Crisis AM Edition 3/25/24
According to Reuters, Nissan’s management plans to improve its EV performance while cutting costs to increase profitability. Nissan believes hybrids and EVs will account for 50% of its new vehicle sales by 2030. Over that period, Nissan plans to launch 30 models, 16 of which will be EVs. Reuters reports, “Nissan plans to reduce the cost of the next generation of EVs by 30% to make them comparable to internal combustion engine models by 2030.” Climatecrisis247 has seen several of the world’s largest car companies set similar plans. Nissan’s worry should be that its strategy is not different from that of every major rival in Japan, the EU, and the US. The success of China’s BYD may also ruin these plans, as its inexpensive EVs become available outside their home market.
EV Trouble –Ford Struggles With Demand
Oil Prices –They May Be Lowered By Shale
Another EV company in China has ambitious production plans. The company is Xiaomi, one of the world’s largest smartphone makers. Its management claims its car will also have autonomous driving features, which many experts believe will be the next major development in the auto industry. Xiaomi’s first vehicle will be branded as the SU7. The risk the company takes is that the price of the car will be almost $70,000. Climatecrisis247 is skeptical that Xiaomi can do well either inside or outside China. The trend among large manufacturers is toward inexpensive EVs. This is particularly true in the US, where prices have been a barrier to EV adoption, and companies like Ford and Tesla are working to drop prices to restart slowing consumer demand.
Attacks On Russia’s Oil Production
Geopolitical tensions in Russia and the Middle East have started to lift crude prices. Drones from Ukraine have hit several critical Russian oil facilities. Russia is among the largest oil producers in the world. Houthi rebels continue to attack ships in the Red Sea, and shipping companies have sent many of these ships on routes to avoid the Suez Canal. This can add over ten days to the time it takes to get these ships, including oil tankers, to their destinations. Hiroyuki Kikukawa, president of NS Trading, a unit of Nissan Securities, commented to Reuters, “Escalating geopolitical tension, coupled with a rise in attacks on energy facilities in Russia and Ukraine, alongside receding ceasefire hopes in the Middle East, raised concern over global oil supply.” Climatecrissi247 believes these are legitimate concerns. Crude prices have risen from $72 in mid-January to $80. When Russia invaded Ukraine, crude brief jumped above $100.
Greater Need For Electricity
Electricity demand has spiked recently. Semafor points out, “Artificial intelligence and cleantech manufacturing are driving a huge boom in electricity demand in the U.S., threatening to derail the power sector’s journey to net zero as renewable energy companies struggle to keep pace.” Climatecrisis247 sees this problem as one part of the issue. Bitcoin mining also eats up vast amounts of electricity. This will pit the electricity needs of new technologies against traditional commercial and residential demand. The aging national gride could also be stressed by a sharp increase in demand. Climate change has started undermining conventional sources of energy like that generated by the Hoover Dam, which is threatened by a drought that is lowering the levels of Lake Mead, the water source of the dam’s turbines. Another alternative is to return to coal to increase electricity capacity.
