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XThe Lithium Race Takes Shape in the Salton Sea
David Shultz
David Shultz reports on clean technology and electric vehicles, among other industries, for dot.LA. His writing has appeared in The Atlantic, Outside, Nautilus and many other publications.
Located roughly a hundred miles east of San Diego, the Salton Sea is California’s largest landlocked body of water, for now.
Measuring 5 miles across and 35 miles long in its current form, the lake was created by diverting water from the Colorado River into the region for agricultural purposes. Once a vacation destination renowned for its wildlife and wetlands, a series of environmental mishaps and mismanagement have left the lake toxically salty, shrinking and often malodorous. Conditions have gotten so bad that Palm Springs Life Magazine called the region’s transformation “the biggest environmental disaster in California history” in March of 2020.
But against this unlikely backdrop, new life—or at least new industry—is scrambling to set up shop in the region. The Salton Sea, it turns out, is rich with lithium, an element that has taken center stage in the world’s transition to clean energy and its ever-growing demand for batteries. From smartphones to electric vehicles, there’s a pretty good chance that the last battery you used had lithium ions inside. Prices for the metal reached an all time high in September, and futures are up more than 400% since the start of 2021. With Biden’s new economic policy outlined in the Inflation Reduction Act, there are strong financial incentives to move battery production back to North America.
If that’s going to happen the Salton Sea could very well become the lithium capital of North America, or to paraphrase Governor Gavin Newsom, the region could become the “Saudi Arabia of lithium,” and the players are already starting to assemble.
Currently, there are three companies attempting to set up plants in the Salton Sea for direct lithium extraction: EnergySource Minerals, Controlled Thermal Resources and BHE Renewables, a branch of Berkshire Hathaway. All three companies have similar business strategies from a high level, all of which involve geothermal power plants. These plants, which are common in many parts of the world, draw hot, salty water from deep in the ground to create steam which drives a turbine to produce electricity. What makes the Salton Sea so special is that its geothermal brines just happen to contain lithium.
In a 2017 study, researchers from the U.S. DOE Office of Energy Efficiency and Renewable Energy analyzed more than 2,000 samples of geothermal fluid from U.S. sources and found that only 1% had significant lithium concentration. This rare confluence of geothermal activity and lithium presence provides an opportunity for companies to generate electricity and mine lithium simultaneously.
Beyond their marriage of geothermal energy and lithium extraction, the three companies begin to diverge.
According to former dot.LA engagement editor Luis Gomez — whose newsletter Lithium Valle, is essential reading on this topic — EnergySource seems to be out in front early.
“They claim to have the technology that’s patented, they claim to have done the research, they claim to have the funding, and they claim they're ready to go and start production,” says Gomez. “They are kind of considered the canary in the coal mine.”
According to a report from the United States Department of Energy, EnergySource plans to eventually scale production up to over 20,000 metric tons of lithium hydroxide per year using its proprietary Integrated Lithium Adsorption Desorption technology.
Construction on the plant was slated to start earlier this year, but has been delayed. EnergySource has said publicly that lithium production might begin in the second quarter of 2024, but it’s unclear whether this date will also be pushed back. The company has a long history of operating in the region, having run the John L. Featherstone geothermal plant since 2012. The new venture into lithium would leverage that same plant, but without more details about how their proprietary technology works, there’s not much to do but wait and see.
One potential problem facing all three lithium extraction companies is that the Salton Sea geothermal brines are not the same as the brines in evaporation ponds similar to those in Argentina, Chile and Bolivia, where more than half of the world’s lithium is produced. Specifically, the deep geothermal brines in the Salton Sea contain more silica and transition elements, which may complicate the chemistry of purifying the lithium. Still, many researchers are extremely bullish on the prospect of tapping into these reserves. Alex Grant, The Principal at Jade Cove, a research organization focusing on direct lithium extraction technologies, says that much of the skepticism surrounding the technology can be attributed to competing financial interests that are trying to squash the nascent tech’s potential in favor of an established method.
Lithium Mines in the Atacama Salt Flats, Chile from an altitude of 15km via Google Earth. The facility is about 10km wide.
Google Earth
For its part, BHE Renewables, operating as CalEnergy, runs a fleet of 10 geothermal plants in the Imperial Valley. The company had previously announced its intent to set up a direct lithium extraction demonstration plant sometime before the end of 2022 to assess the viability of lithium extraction. If that pilot program goes well, the company could build a commercial-scale facility as early as 2026 with a projected annual capacity of 90,000 metric tons of lithium.
Obviously, having the backing of Berkshire Hathaway comes with advantages and capital. Add into the equation another $15 million in DoE grant money obtained last winter, and BHE appears to be well positioned as a major player in the long term.
Finally, there’s Controlled Thermal Resources. As the only company not already operating a geothermal business in the region, CTR is something of an outsider and dark horse. By 2024, the company hopes to build both a geothermal energy plant and a direct lithium extraction plant to operate in parallel, projecting a capacity to extract 300,000 metric tons of lithium carbonate equivalent annually by 2030. As dot.LA previously reported, Controlled Thermal Resources has partnered with Statevolt, a company that intends to build a $4 billion gigafactory nearby that will run on power from CTR’s geothermal plant and make batteries from the lithium it extracts. It’s a beautiful closed-loop business model. But again, all of this relies on the direct lithium extraction technology, and details are scant.
According to Gomez, despite the typically cut-throat nature of the energy industry, the relationship between the three upstarts in the Salton Sea is often surprisingly cooperative at the moment.
“They want the others to succeed because it kind of gives them the confidence that their technology is also eventually going to succeed,” he says. “It gives confidence to investors.”
Which is all to say, there may well be space for all three companies if the technology is as solid as they claim. If that’s the case, the Salton Sea and its surrounding region may have yet another miraculous transformation up its sleeve.
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David Shultz
David Shultz reports on clean technology and electric vehicles, among other industries, for dot.LA. His writing has appeared in The Atlantic, Outside, Nautilus and many other publications.
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PG&E Is Seeking EV Owners for Its New Program to Sell Energy Back to the Grid
06:00 AM | December 12, 2022
Photo courtesy of Ford
Pacific Gas and Electric is in the midst of enrolling customers into an ambitious new pilot program that seeks to use electric car vehicles as a means of powering daily life and stabilizing the grid.
The “Vehicle to Everything” pilot envisions a future in which automobiles not only draw their power from the electrical grid but can also strategically add electricity back in when demand is high — and generate some money for their owners along the way.
The concept of bidirectional energy flow using EV batteries isn’t new, and dot.LA has covered various vehicle-to-grid endeavors in the past. But having a utility company as large as PG&E onboard could begin to transform the idea into a reality.
Though the program’s website has been live for a few weeks, PG&E officially began to invite customers to pre-enroll starting on December 6th. The pilot has space for 1,000 residential customers and 200 commercial customers. PG&E isn’t releasing the numbers for how many people have signed up so far, but Paul Doherty, a communications architect at the company, says he expects the enrollment period to take several months, stretching into Q1 2023.
On the residential side, customers can receive financial incentives up to $2,500 just for enrolling in the pilot. That money, says Doherty, goes towards the cost of installing a bidirectional charger at the customer’s residence. The cost of installation varies according to the specifications of the residence, but Doherty says it’s unlikely that $2,500 will cover the full cost for most users, though it may come close, with most installations ranging in the low thousands.
But there’s more money to be had as well. Once the bidirectional charger is installed, customers can not only use the electricity to power their homes but also begin selling electricity back to the grid during flex alerts. Southern California residents may remember back in September when the electric grid was pushed to its breaking point thanks to an historic heatwave. During such events–or any other disaster that strains the system–customers can plug their vehicle in, discharge the battery and get paid.
Doherty says that users can expect to make between $10 and $50 per flex alert depending on how severe the event is and how much of their battery they’re willing to discharge. That might not seem like a huge sum, but the pilot program is slated to last two years. Meaning that if California averages 10 flex alerts per year like in 2022, customers could make $1,000. That could be enough to offset the rest of the bidirectional charger installation or provide another income stream. Not to mention, help stabilize our beleaguered grid.
There is one gigantic catch, however. PG&E has to test and validate any bi-directional charger before it can be added into the program. So far, the only approved hardware is Ford’s Charge Station Pro, meaning only one vehicle–the F-150 Lightning–can participate in the program. That should change soon as the utility company tests additional hardware from other brands. Doherty says they’re expecting to add the Nissan LEAF, Hyundai’s IONIQ 5, the KIA EV6 and others soon since it’s just a matter of testing and integrating those chargers into the program.
One name notably absent from that list is Tesla. So far, the country’s largest EV presence hasn’t announced concrete plans for bidirectional charging, meaning there’s no way for Tesla owners to participate in the pilot.
“We hope they come to the table as soon as possible,” says Doherty. “That would be a game changer.”
The commercial side of the pilot looks similar to the residential. Businesses receive cash incentives upfront to help offset the cost of installing bidirectional charger and then get paid for their contribution to stabilizing the grid in times of duress. PG&E says electric school bus fleets, especially, represent attractive targets for this technology due to their large battery capacity, high peak power needs, and predictable schedule–a strategy that mirrors what V2G pioneer Nuvve described to dot.LA back in October.
If California’s plan to transition all new car sales to electric by 2035 actually succeeds — which would require it to add nearly two million new EVs to state roads every year — that’s two million rolling, high power batteries with the potential to power our homes, our jobs and the grid at large. Getting there will be a colossal undertaking, but PG&E’s pilot should be a litmus test of sorts, assuming they can figure out how to get more vehicles than the Ford Lightning into the program.
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David Shultz
David Shultz reports on clean technology and electric vehicles, among other industries, for dot.LA. His writing has appeared in The Atlantic, Outside, Nautilus and many other publications.
Vinfast's First EVs Have Just 180 Miles of Range but Still Cost Over $55K
05:15 AM | December 13, 2022
Vinfast
Vinfast, the Vietnamese EV company with headquarters in Los Angeles, shipped its first order of vehicles to U.S. soil from Hai Phong, Vietnam on November 25th. The batch of 999 automobiles is due to arrive here in California on Thursday this week.
The VF8 SUVs on board will have the difficult task of convincing American buyers that an unknown, untested Vietnamese manufacturer can deliver on a new technology. And so far, the company appears to be off to a rocky start.
According to an email sent to reservation holders on November 29th, the VF8s in the initial shipment will be a special “City Edition” and have lower range advertised than the previously announced versions–just 180 miles in total. Over the weekend, Vinfast confirmed to dot.LA via Twitter that all of the vehicles in the first batch are the City Edition, and that the standard edition would be coming Q1 of 2023. Until this email, there had been little, if any mention of this new City Edition. The message to reservation holders offered no rationale as to why the company was choosing to ship this version of the car instead of the 260-292 mile-range VF8 it’s been advertising for months. Despite the lower range, however, the EVs will still carry a price tag of either $55,500 or $62,500, depending on trim–just $3,000 less than the previously-announced versions.
The VF8 Specs page from Vinfast’s site still bears no mention of a “City Edition,” but that’s what’s coming to America this month.
Vinfast is offering reservation holders an additional $3,000 off these City Edition variants (bringing the total to $6,000 less than the previously announced versions). But even at a discount, the vehicle’s $52,000 price tag is far from competitive with more established EV makers and raises questions about the brand’s strategy and value.
For comparison:
- The 2023 Hyundai Ioniq 5 has 220 miles of range and starts at $42,745. Or 303 miles of range for $60,000.
- The base model Kia EV6 costs $49,795 and goes 206 miles on a full charge.
- The Mustang Mach E starts at 46,895 and reaches 224 miles.
And the list goes on. In fact, you’d be hard pressed to find a 2023 EV with a worse cost to range ratio than the VF8. Vinfast, which has been nearly impossible to reach on this matter despite numerous calls and emails, hasn’t explained why they chose to offer such a range-compromised version as their initial foray into the U.S. market, or why the cost remains so high.
The reaction to the news, especially on Reddit, has been largely negative, with users accusing the company of “springing” the City Edition on reservation holders. Others speculated that the company rushed out the first batch so it could drum up good press before its recently announced IPO. Whatever the reason, most redditors didn’t seem to be buying it, and with Vinfast so reluctant to comment, it’s hard to see the announcement in a light that bodes well for the company’s future. First impressions tend to last, and this doesn’t seem like a good one for the EV hopeful.
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David Shultz
David Shultz reports on clean technology and electric vehicles, among other industries, for dot.LA. His writing has appeared in The Atlantic, Outside, Nautilus and many other publications.
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