Volkswagen Group (VW) announced it will be investing (up to) $5bn in Rivian as part of a new 50/50 JV allowing EV architecture and software to be swapped & shared. This crucial investment will enable Rivian to strengthen its balance sheet and to develop its more affordable R2 SUVs which is pencilled to hit the market in H1 26. Furthermore, Rivian will be able to cut its operating costs by leveraging volumes of supplies including chips and components. VW hopes this JV will help solve its software issues; as its software division, Cariad has exceeded its budget and more importantly, failed to meet its objectives.
Stagecoach has announced it has ordered 158 Yutong electric buses from Pelican Bus and Coach. The funding from these buses comes from a mixture of investments from Stagecoach, local and national government support via 3 different funding initiatives: the Levelling Up Fund (for Sunderland), the Full Electric City programme (for Coventry), and the ZEBRA 2 scheme. This order will be delivered from Q3 24 onwards and the buses will be in operation by Q3 25.
Martin Brower has received 10 additional Volvo VNR EVs, that will support deliveries to select McDonald’s restaurants in Montreal and Toronto. The Volvo EVs were picked due to a successful trial that took place in 2022, which highlighted the vehicle's capability of handling routine routes and large product loads. This is an encouraging step forward in the right direction, as McDonald's is aiming to achieve net zero greenhouse gas emissions by 2050.
Walmart Canada has announced it has introduced its 1st hydrogen fuel cell electric truck, the Nikola Hydrogen Fuel Cell EV Class 8 truck, into its fleet. This is the first major retailer in Canada to deploy and utilise a hydrogen fuel cell electric semi-truck. This aligns with Walmart’s ultimate goal to transition to a 100% alternatively powered fleet, and it is proactively looking at deploying different zero-emission vehicles to see which mix suits its needs best. The company will use this Nikola vehicle for long-haul travel, as it has a range of c800km on a single charge. Mr Lecce, Ontario’s Minister of Energy and Electrification, has welcomed this addition by this prominent retailer, as he believes this will trickle down and (potentially) attract (FDA) investment into hydrogen technology in the country.
Greenpower Park, a JV agreement between Coventry Airport and Coventry City Council, has urged the next UK government to help support the domestic battery sector. Greenpower Park is campaigning for the next government to focus on accelerating domestic battery production and attract global OEMs to help flesh out supply chains. The UK only has 1 operational gigafactory (AESC) that produces (up to) 6 GWh annually, however, consensus among industry experts has highlighted that the automotive sector (alone) needs 100 GWh per annum by 2030, increasing to 200 GWh by 2040. Greenpower is trying to attract businesses by offering tax incentives and breaks for investors for up to 10 years, including stamp duty, land tax relief, business rate relief, and national insurance contributions for new jobs. We completely agree with Greenpower and hope the next government will hear and respond with appropriate support and policies.
The World Bank has announced it has approved a c$1.5bn loan to India to help support its green hydrogen production, electrolysers, and renewable energy plans. This loan stems from the bank’s Second Low-Carbon Energy Programmatic Development Policy Operation. Bear in mind, that the hydrogen market in India has essentially been nascent until 2023, when the country launched its National Green Hydrogen Mission. This is part of the country’s wider goals of becoming energy-independent by 2047 and achieving net zero emissions by 2070.
Stagecoach has been bus-y this week as it has placed an order for 244 Alexander Dennis zero-emission buses. To be able to place such a large order the bus operator collaborated with various local English authorities to secure ZEBRA funding. This order is made up of a mixture of single and double-decker Enviro400EV, Enviro100EV, and Enviro200EV buses. These buses are pencilled in to be delivered between 2025-2026.
Deals
Solera, an American-based risk management and asset protection software company, has filed publicly for a USA IPO. Analysts are theorising the company will be looking to raise as much as $1.5bn at a valuation of between c$10bn - $13bn. It appears the company is very keen to IPO quickly, as some believe it will start pilot fishing by mid-July. The motivation for this may stem from the strong USA IPO market starting in 2024 and the best since 2021, with c$21bn raised in H1 24. Investor appetite and company valuations are starting to rebound after a couple of dry and dismal years of IPO (in)activity.
Compredict, a German-based AI software solution startup, has raised $15m in a Series B funding round led by Woven Capital. This startup focuses on developing virtual sensors for (sustainable) mobility. This results in OEMs being able to optimise vehicle design, usage and maintenance. The capital raised will be used to increase its product offerings, expand its global footprint and enhance its large-scale deployment capabilities.
Sila, an American-based battery materials company, has raised $375m in a Series G round, led by Sutter Hill Ventures and T. Rowe Price Associates. Most of the capital raised will be used to help fund its manufacturing facility in Eastern Washington, which is scheduled to be completed by Q1/H1 25. This facility will produce its Titan Silicon anode material and bear in mind that silicon increases the battery’s energy density by c20% compared to graphite batteries. The startup has confirmed that Mercedes-Benz and Panasonic will be customers that will use the Titan Silicon anode.