Tesla Warns Insufficient Lithium Refining Capacity May Hinder EV Production
Good morning! Today, we are celebrating National Pretzel Day! Did you know that pretzels have a unique history in the world of supply chain and transportation? From their origin in Europe to their modern-day production and distribution, pretzels have a fascinating story to tell about the evolution of supply chain practices. 🥨
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During Tesla's Q1 earnings call, CEO Elon Musk said that the "choke point" in the supply chain for EV production is not the price of materials such as lithium, but the refining capacity. Though Tesla saw commodity prices for minerals (including lithium) drop in Q1, the company is planning to start production on its own refinery in Corpus Christi, Texas by the end of this year to further control its lithium supply. According to Drew Baglino, senior vice president of powertrain and energy engineering, Tesla hopes to continue production that matches demand.
Check out today’s featured article from Supply Chain Dive to read about Tesla’s warnings and what this could mean for the company’s manufacturing capabilities. Will this big spending on lithium refining capacity expansion pay off for the EV darling?
Featured Article:
Tesla says lack of lithium refining capacity will become EV production ‘choke point’ | Supply Chain Dive
“Tesla saw commodity prices for minerals, including lithium, begin to drop in Q1, the company said on its Q1 earnings call last week.”
Electric Vehicles & Fuel Tech 🔋
Long-Haul Moves Unlikely to Adopt Electric Trucks in the Near Future
According to a recent survey by Talking Logistics, only 12% of respondents are testing electric trucks to ship goods, and 76% have no plans to do so in the next 12 months. Battery-electric trucks cost upwards of $480,000, which is cost-prohibitive for the majority of motor carriers, have a range of only about 150-330 miles, and can take up to 10 hours to charge.
Furthermore, battery-electric trucks are far heavier than clean-diesel trucks, which reduces payload capacity and increases both traffic congestion and tailpipe emissions. It seems unlikely that electric trucks will replace diesel trucks for long-haul moves anytime soon.
Company Culture & Unions 💪
Teamsters Claim Unionization of Amazon Drivers in CA
The Teamsters Union and a company called Battle-Tested Strategies reportedly reached a deal to improve wages and address health and safety standards for 84 Amazon delivery drivers in California. However, Battle-Tested Strategies is a contract carrier under Amazon’s Delivery Service Partner program, and it is unclear why the company accepted unionization and immediately offered an improved contract. Amazon is not obligated to make changes in compensation for services provided by its contractor, and margins for DSP partners are reportedly slim… so some are concerned that offering generous wages with no corresponding compensation from Amazon could be “financial suicide” for the contractor.
It appears that the situation is more complicated than initially reported, with Amazon spokesperson Eileen Hards accusing the Teamsters of being “intentionally misleading” or not understanding the company’s business.
Let’s Get Global 🌎
🚂 CPKC faces competition from three railroads in the transportation of Mexican shipments. Canadian National, Union Pacific, and Grupo Mexico have all started to work together to move their fleets across the border. This will hopefully create an even bigger network of railroads that may further grow the industry.
🇸🇬 Singapore, Long Beach, and Los Angeles Ports Sign Green Agreement. The Maritime and Port Authority of Singapore, Long Beach, and Los Angeles (along with support from C40 Cities) have signed a memorandum of understanding to establish a green and digital shipping corridor. The aim of the corridor is to decarbonize the maritime industry and improve efficiencies through digitalization. The parties involved will work together to facilitate the supply and adoption of alternative fuels and explore the necessary infrastructure and regulations for bunkering.
🇫🇷 France and the UK explore the use of hydrogen for EVs. A new hydrogen production plant aims to solve the problems with refueling and distribution snags. The UK has announced that by 2050, hydrogen should make up around 30% of the nation's energy demand.
🚀 India's expanding aerospace logistics industry brings hope to freight forwarders. Indian air freight forwarders are optimistic about the growing demand for aircraft-on-ground (AOG) and aero parts shipments as India's aerospace manufacturing sector expands. Major Indian import destinations for AOG shipments are Delhi and Mumbai, with sporadic movements into Chennai and Bangalore. Air freight forwarders must comply with regulatory requirements and work under tight timelines, ensure security and maintain constant communication with all parties involved
iLevel With You 🏡
More topics for the average American household to consider…
🇺🇸 Biden announces reelection campaign. Monday morning, current President Joe Biden announced his run for a second term in office. Biden’s announcement allows him to begin fundraising 18 months before the election in November. While Biden is already the oldest president at 80 years old, he still faces as many obstacles as the other candidates.
💰 P&G braces for $2.2B impact from supply costs. P&G, which owns Tide and Gillette, has stated that the company is expecting to incur $2.2B in costs due to inflation and material costs. Now the company is facing even more pressure due to the continually increasing inflation. They have even implemented price increases of about 4.7 percentage points.
💸 Will the US Economy survive the Fed’s interest rate hikes? The US economy is currently facing the question of whether it will experience a crash or a gentle return to Earth. Conventional wisdom suggests that a recession is necessary to return the economy to normalcy, but a "soft landing" is also possible. The economy is currently showing signs of a soft landing, with a slower job growth rate, decelerating wage growth, and easing inflation.
Get Smart 🧠
Ramp up that brain power for these advanced topics…
👩🦳 Enhancing Opportunities for Women in the Supply Chain. The percentage of women in the total supply chain workforce has decreased from 41% in 2021 to 39% in the present day. The supply chain industry has regressed in terms of gender equality, with a decline in the number of women in leadership positions. Women of color face even bleaker prospects, with only 14% of the overall supply chain workforce and a further decline in numbers at higher corporate levels.
🏗️ Construction Underway on World's Largest Electric Crane. Dutch heavy lift company, Mammoet, is set to build the world’s highest capacity land-based crane - a 6,000t electric-powered ring crane, designed to serve next-generation offshore wind farm projects. The new crane, which is containerized for easy mobilization and on-site assembly, is capable of lifting larger and heavier topside modules and will offer a carbon-free lifting solution, according to the company. The first parts of the new crane are set to be delivered to Mammoet’s engineering center in The Netherlands, with delivery scheduled for 2024.
🌎 Global Demographics Point to Key Spending Trends. The number of centenarians in the US is expected to increase significantly, with projections estimating growth to 130,000 by 2030 and to over 603,000 by 2060. The graying of America is a “megatrend”, with the percentage share of Americans over the age of 65 doubling in size from 8% in 1950 to 16.9% in 2020. The expected growth in the population share of older adults across the world could lead to a demographic dividend, which would result in accelerated growth per capita, economic expansion, and enhanced social development, but the UN also predicts a slowdown in growth among the general population.
🏢 10 Ways Warehouse Management Systems Deliver Value. Warehouse Management Systems (WMS) is a well-established and widely recognized category of supply chain software. Its origins can be traced back to 1975 when the first WMS was adopted to manage inventory using real-time mobile data collection terminals. Today, WMS is used in thousands of distribution centers worldwide. However, some companies, even large ones, are new to WMS, and stakeholders involved in new WMS projects may lack experience in this area, such as those from customer service or transportation.
🇲🇽 Nearshoring Trend Gains Momentum with Redwood Logistics Explanation to Mexico. Redwood Logistics has expanded its operations in Mexico to establish tighter supply chains between the US and Mexico. This is the latest step in a trend among logistics companies to invest in nearshoring efforts, which seek to reduce manufacturing and cash-to-cash cycles. The company's move reflects the significant investments made by leading retailers and manufacturers in Mexico's manufacturing hub, which spans industries such as automotive, appliances, aerospace, pharmaceuticals, HVAC, and food & beverage.
The Workday Dash is an aggregation of articles regarding the transportation logistics, trucking, and supply chain industries for November 27, 2024, from iLevel Logistics Inc.