LFP batteries – Aramco to Gain Majority Stake in Petro Rabigh, Enhancing Financial Stability and Turnaround Strategy 10-08-2024

LFP batteries

The production of Lithium Iron Phosphate (LFP) batteries is at risk due to an inadequate supply chain struggling to meet growing demand

LFP batteries are becoming increasingly important, particularly in China, where they power about 50% of zero-emission vehicles, and are gaining popularity in the USA and Europe. However, as demand surges, the supply chain faces potential bottlenecks that could destabilize the market. LFP batteries

China dominates the supply of phosphate rock, essential for LFP batteries, with 81% of global production concentrated in just six countries. This concentration creates a vulnerable market, especially since only 3% of mined phosphate rock is suitable for battery production. Furthermore, purified phosphoric acid, crucial for LFP batteries, is in short supply, with demand expected to increase significantly by 2030. Without new supply channels, prices may rise, and availability could decline, threatening the electric mobility sector. LFP batteries

A potential solution lies in recovering phosphorus from wastewater, a method under exploration in China and the USA. This process, though complex and still in development, could offer a new source of phosphorus. Interestingly, LFP batteries using phosphorus from wastewater may exhibit better charging capacity and longer lifespan, providing an unexpected benefit amid the supply challenges. LFP batteries

LFP batteries

Infinity Recycling and others partner to tackle plastic pollution

Infinity Recycling will support companies to develop their recycling capabilities via its Circular Plastics Fund.

Infinity Recycling, a Dutch growth equity investor, has announced a partnership with BlueInvest and the European Investment Fund (EIF) to address the escalating plastic pollution issue.

With €50m ($54.61m) in financing from InvestEU via the EIF, Infinity is set to invest in advanced recycling technologies that aim to enhance the recycling of plastic waste and make it profitable. LFP batteries

Through its Circular Plastics Fund, Infinity Recycling will support European companies in developing and scaling up technologies that can fully recycle plastic waste.

These technologies will enable the production of new plastics with properties equivalent to virgin materials, a significant improvement over traditional recycling methods that often degrade the quality of plastics. LFP batteries

LFP batteries

Aramco to Gain Majority Stake in Petro Rabigh, Enhancing Financial Stability and Turnaround Strategy

  • Aramco to Purchase Additional Shares in Petro Rabigh from Sumitomo Chemical
  • Agreed Mechanism to Strengthen Petro Rabigh’s Financial Health

Aramco, a global leader in integrated energy and chemicals, has finalized an agreement to acquire an additional 22.5% stake in Rabigh Refining and Petrochemical Co. (“Petro Rabigh”) from Sumitomo Chemical for $702 million.

Petro Rabigh, situated on Saudi Arabia’s west coast, is a key refining and petrochemical complex. LFP batteries

Currently, both Aramco and Tokyo-based Sumitomo Chemical hold 37.5% shares in Petro Rabigh, which has been publicly traded on the Saudi Exchange since 2008. The transaction, priced at SAR7 per share, will increase Aramco’s ownership to approximately 60%, making it the majority shareholder. Sumitomo Chemical will retain a 15% equity stake. This deal, pending customary closing conditions including regulatory and third-party approvals, is part of a broader financial strategy aimed at bolstering Petro Rabigh’s financial standing. LFP batteries

According to the share sale agreement, all proceeds from Sumitomo Chemical’s sale will be reinvested into Petro Rabigh. Additionally, Aramco will inject matching funds of $702 million into Petro Rabigh, bringing the total financial boost to $1.4 billion. This injection aims to enhance Petro Rabigh’s financial stability and support its strategic goals.

Furthermore, Aramco and Sumitomo Chemical have agreed to gradually waive $750 million each in shareholder loans, collectively reducing Petro Rabigh’s liabilities by $1.5 billion. LFP batteries

Aramco to Gain Majority Stake in Petro Rabigh, Enhancing Financial Stability and Turnaround Strategy

Lenzing Group Reports Further Improvement In Operating Result

The Lenzing Group, a supplier of regenerated cellulose fibers for the textile and nonwovens industries, reports a gradual improvement in its business performance in the first half of 2024. As expected, the recovery of the markets relevant to Lenzing proved to be sluggish. Although fiber sales volumes increased, fiber prices remained at a low level. The cost of raw materials and energy remained high. At the same time, logistics costs rose significantly in the reporting period. LFP batteries

Revenue grew by 4.8 percent year-on-year to EUR 1.31 bn in the first half of 2024, primarily thanks to higher revenue from fibers (+9.3 percent).

The trend in the operating result primarily reflects the positive effects of the comprehensive performance program. Earnings before interest, tax, depreciation and amortization (EBITDA) rose by 20.4 percent from EUR 136.5 mn in the first half of 2023 to EUR 164.4 mn in the same period of 2024. The EBITDA margin increased from 10.9 to 12.5 percent. LFP batteries

The operating result (EBIT) amounted to EUR 18.9 mn (compared with minus EUR 12 mn in the first half of 2023) and the EBIT margin stood at 1.4 percent (compared with minus 1 percent in the previous year). Earnings before tax (EBT) amounted to minus EUR 22.3 mn (compared with minus EUR 76.1 mn in the prior-year period).

Earnings per share stood at minus EUR 1.84 (compared with minus EUR 3.92 in the first half of 2023). LFP batteries

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Lenzing Group Reports Further Improvement In Operating Result

Regulation and voluntary action fail to inspire circular packaging

The rising tide of corporate commitments and regulatory targets relating to the circular economy have made “disappointingly little impact” on the global plastics industry in the past decade, according to Wood Mackenzie. The global economy “remains wedded to an extractive, rather than circular, model”, the consultants conclude in a new whitepaper. 

The circular economy, a critical strategy for delivering a lower-emission, more sustainable future by reusing materials and minimising waste has “struggled to navigate traditional value chains and business practices”. LFP batteries

“The circular economy model has not made the impact many plastics industry observers predicted when it was first mooted, but there are some exciting initiatives underway that could change that,” said Guy Bailey, VP of oils & chemicals research at Wood Mackenzie. “The successful negotiation and introduction of the United Nations Plastic Treaty [a legally binding agreement that would end plastic pollution] is a necessary starting point, but the adoption of new business models to drive coordination across the value chain is the key to real change.” LFP batteries

The report states that currently petrochemical companies, technology companies and waste management firms all operate with different assumptions about what a ‘fair’ allocation of value looks like. This has led to slow progress.

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Regulation and voluntary action fail to inspire circular packaging

Mattress Recycling Council expanding into Oregon

Statewide mattress recycling program to begin Jan. 1, 2025.

The Oregon Department of Environmental Quality (DEQ) has announced it has authorized the Mattress Recycling Council (MRC), Alexandria, Virginia, to establish and administer a statewide mattress recycling program in the state. Oregon DEQ approved a modified operating plan, including a budget and stewardship assessment to fund the program.

The program will begin Jan. 1, 2025, and will be funded by a $22.50 per unit DEQ-approved stewardship assessment collected on the sale of each mattress and foundation sold for use in Oregon. LFP batteries

“With our nearly 10 years of experience in administering our existing state programs, we’re ready to bring mattress recycling to Oregon,” says MRC’s Chief Operating Officer Mike O’Donnell. “We appreciate the support of the solid waste and recycling community, mattress manufacturers and retailers which has resulted in MRC recycling over 13 million mattresses through our state programs.”

Before the Oregon program begins, retailers, manufacturers, importers, distributors and renovators of mattresses and foundations sold for use in Oregon must register their business with MRC. LFP batteries

Those selling these products to end-users—individual consumers or a large-volume buyers—must also be prepared starting Jan. 1, 2025, to collect the $22.50 per unit stewardship assessment, and displaying that amount as a line item on the receipt, invoice or other sales documentation that the seller provides the purchaser.

“MRC encourages the mattress industry, solid waste facilities and other interested parties to learn about this program and understand their role in a successful recycling program,” O’Donnell says. “We offer a library of resources and have a wonderful team ready to answer your questions.” LFP batteries

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Mattress Recycling Council expanding into Oregon

Tethered PET caps – Solid-state batteries have been a hot topic for years, heralded as the next big thing in the automotive industry 09-08-2024

LFP batteries