The Week in Cleantech: 1 October 2023

Ford Pauses Construction at $3.5 Billion EV Battery Plant Amid Uncertainty

Ford has decided to halt construction and reduce spending on its planned $3.5 billion EV battery plant in Marshall, Michigan. The pause, effective immediately, is intended to ensure competitive operations at the plant, according to Ford spokesperson T.R. Reid. This decision comes amidst various considerations, and it's unclear if the ongoing United Auto Workers strike is a contributing factor. The BlueOval Park Michigan plant was slated to produce lithium iron phosphate (LFP) batteries, a more cost-effective alternative to NCM batteries, with production originally scheduled to begin in 2026.

Ford's decision to pause construction raises questions about the future of the US-based LFP battery facility and its impact on Ford's EV production plans. LFP batteries are already in use in Ford's Mustang Mach-E, and their affordability was expected to help reduce EV prices. The plant was anticipated to add 35 GWh of battery capacity, supporting around 400,000 Ford EVs, and bolstering domestic production. The pause also highlights the complexities and challenges automakers face as they transition to electric vehicles, including labor issues and supply chain concerns.

Covered in: Electrek and 5 other sources tracked by Cleantech Vanguard.

U.S. Energy Storage Sets New Record in Q2 2023

The U.S. energy storage market achieved a record-breaking quarter in Q2 2023, adding 5,597 MWh of storage capacity, with grid-scale installations leading the way. California dominated the market with 738 MW and a 49% share of installed capacity. Despite supply chain challenges and interconnection delays, the energy storage market is poised for a record year, nearly doubling annual installations.

This record-breaking quarter reflects the growing importance of energy storage in enhancing the grid and improving reliability. Grid-scale installations are expected to continue driving the market's growth, accounting for 83% of total installations in the five-year forecast. However, the community, commercial, and industrial (CCI) segment experienced a quarterly decline, highlighting the challenges of meeting growth projections in this sector. Overall, the energy storage market's resilience and expansion indicate its critical role in the transition to cleaner and more reliable energy systems.

Covered in: Solar Power World and 5 other sources tracked by Cleantech Vanguard

Lego's Quest for Sustainable Bricks Hits a Snag

Lego has abandoned its ambitious project to replace oil-based plastic bricks with ones made from recycled plastic due to concerns about increased carbon emissions. After two years of testing, Lego found that the new recycled plastic lacked the "clutch power" of the traditional material, leading to more carbon-intensive processes to achieve the desired durability. Lego originally aimed to eliminate petroleum-based plastics from its production by 2030.

Lego's decision highlights the complex challenges companies face in pursuing sustainability goals. While the company won't pass its increased sustainability spending on to consumers, this case underscores the difficulty of balancing environmental objectives with practicality and cost-effectiveness. It also illustrates that finding sustainable alternatives isn't always straightforward, even for a beloved brand like Lego.

Covered in: EnergyNow and 4 other sources tracked by Cleantech Vanguard.

Top-3 Funding Rounds Raised by Cleantech Startups

• ZeroAvia, a leader in hydrogen-electric aviation, has secured $30 million in funding from new investors, including Barclays Sustainable Impact Capital, NEOM, and AENU. This investment, along with additional funding from International Airlines Group (IAG), brings the Series B round total to $68 million. ZeroAvia plans to use these funds to develop infrastructure at airport sites, facilitating live demonstrations of its Hydrogen Airport Refueling Ecosystem (HARE). (PR Newswire)
• Hamburg-based biomaterials startup traceless materials has raised €36.6 million in a Series A round led by United Bankers and Swen Capital Partners. The funds will be used to scale production of its sustainable plastic alternative, starting with a demonstration plant. Existing investors Planet A Ventures, High-Tech Gründerfonds, and b.value participated as well. (Tech.eu)
• Swiss renewable energy software firm Pexapark has secured €20 million in a Series C funding round led by Telstra Ventures. The company specializes in power purchase agreement (PPA) price reference, risk, and portfolio management. It plans to use the funds to expand its team and offerings as the renewable power market continues to grow. Pexapark has a strong track record, supporting over 30 GW of PPA deals and managing 13 GW of renewable energy assets across Europe. (Renewables Now)

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