Everlution Newsletter

For Tuesday 25 August 2020 provided by Ecoprofit.com.au (#letsfindsolutions)

News for green investors and organisations, stock watch & grant opportunities

It Won?t Be Long Until EVs Rule Over ICE

Tesla shares values have broken through the $US2,000 mark, as the company heads towards a five-to-one share split and ? more importantly for investors ? the much anticipated Battery Day.

The Tesla stock is now valued at more than $US380 billion by market cap, and is worth more than ExxonMobil, Shell and BP combined, as well as being the most valuable car maker in the world.

The Californian electric vehicle and energy storage company sits on top of what is referred to as the ESG investing arena (ESG referring to environmental, social, and governance) but is also riding high on the view that it?is more alike to?tech companies such as Apple and? Google than just an eco-conscious auto maker.

At the same time, it is rolling out gigafactories at a rattling pace, including, most recently, installing the ?machine that builds the machine? known as Giga Press, that will enable electric car making on a cheaper and faster scale, starting with a single-cast rear piece for the Model Y.

Tesla boss Elon Musk has also declared that?Tesla is happy to supply battery and powertrains to other car makers,?setting the scene for what is expected to be one of the company?s most important events, Battery Day on?September 22.

Among the products expected to be unveiled, or at least talked about in more detail, is the so-called ?million-mile battery? developed with CATL. It is a shift away from the use of?cobalt in batteries and a focus on cells such as CATL?s lithium iron phosphate (LFP) batteries in the China-made Model 3.

While LFP batteries are less energy dense than NCA (nickel-cobalt-aluminium) batteries, using them allows Tesla to free up more energy dense batteries that use nickel for other technologies including the Tesla Semi. For that reason, Musk pleaded with countries to ?mine more nickel? at Tesla?s Q2 2020 earnings call.

For Tesla?s three major battery partners ? Panasonic, Contemporary Amperex Technology (CATL) and LG Chem ? the approach of Battery Day is also of great significance.

While battery makers like LG Chem and Panasonic battery makers favour NCA chemistry due to their higher energy density, the latter said it is?looking to commercialise a cobalt-free battery in two to three years for Tesla, without elaborating on whether it would employ LFP.

Meanwhile, CATL is developing a new type of electric vehicle (EV) battery that contains no nickel or cobalt, ?with LG Chem going into overdrive?with a new deal from Tesla as well as other top auto makers.

Grants/Subsidies/Funding ? Jobkeeper 2.0

The JobKeeper Payment, which was originally due to run until 27 September 2020, will continue to be available to eligible businesses (including the self-employed) and not-for-profits until 28 March 2021.

In addition, from 3 August 2020 the relevant date of employment will move from 1 March to 1 July 2020, increasing employee eligibility for the existing scheme and the extension. The payment rate of $1,500 per fortnight for eligible employees and business participants will be reduced to $1,200 per fortnight from 28 September 2020 and to $1,000 per fortnight from 4 January 2021. From 28 September 2020, lower payment rates will apply for employees and business participants that worked fewer than 20 hours per week in the relevant reference period.

From 28 September 2020, businesses and not-for-profits seeking to claim the JobKeeper Payment will be required to demonstrate that they have suffered a decline in turnover using actual GST turnover (rather than projected GST turnover). From 28 September 2020, businesses and not-for-profits will be required to reassess their eligibility with reference to their actual GST turnover in the September quarter 2020 (compared to the September 2019 quarter) to be eligible for the JobKeeper Payment from 28 September 2020 to 3 January 2021.

From 4 January 2021, businesses and not-for-profits will need to further reassess their turnover to be eligible for the JobKeeper Payment. They will need to demonstrate that they have met the relevant decline in turnover test with reference to their actual GST turnover in the December quarter 2020 to be eligible for the JobKeeper Payment from 4 January 2021 to 28 March 2021.

To be eligible for JobKeeper Payments under the extension, businesses and not-for-profits will still need to demonstrate that they have experienced a decline in turnover of:

  • 50 per cent for those with an aggregated turnover of more than $1 billion; ? 30 per cent for those with an aggregated turnover of $1 billion or less; or
  • 15 per cent for Australian Charities and not for profits Commission-registered charities (excluding schools and universities). If a business or not-for-profit does not meet the turnover test for the extension period, this does not affect their eligibility prior to 28 September 2020.

The JobKeeper Payment will continue to remain open to new recipients, provided they meet the eligibility requirements and the turnover tests that apply during the relevant JobKeeper Payment period. More information on the eligibility rules for businesses and not-for-profits and their employees is at: www.ato.gov.au/General/JobKeeper-Payment/.

CTI August specials month

As climate change events increase in number and ferocity, so does climate change risk for businesses and organisations.

To remove or control this risk, organisations need to be equipped with the right practical knowledge. Carbon Training International (CTI) offers courses that give clear direction to understand how to deal with climate change risk.

CTI courses include Strategic Carbon Management, Carbon Accounting, Applied Energy Efficiency, Reducing Fleet Emissions and Carbon Offsetting.

For all courses commencing in August, CTI is offering a 15% discount. You can easily enrol in one of CTI?s online webinar courses at https://co2ti.com/. Just choose your preferred course and course start date. Extra course dates can be arranged.

The good news: carbon emissions and business costs are linked. The more an organisation reduces its carbon emissions the more it reduces its costs.

Eco-tip for the day ? First calculate your carbon footprint

Your carbon footprint is the amount of greenhouse gases?including carbon dioxide, methane, nitrous oxide, fluorinated gases and others?that you produce as you live your life.

The most significant carbon emissions for households and businesses come from energy consumption, food & goods consumption and waste.

There are various carbon calculators available, but if you like, go to the calculator on Ecoprofit?s website to find out your carbon footprint for your electricity & gas consumption, fuel & travel emissions and waste.

Please use the email function on the website if you have any questions about carbon footprinting.

Share watch ? Mincor Resources NL (ASX: MCR)

Mincor Resources is an ASX-listed company focused on re-establishing sustainable, high-grade nickel production in the world-class Kambalda district of Western Australia.

In the last hundred years, nickel?s use lies in multiple new technologies including the lithium-ion battery. The lithium-ion battery?s make up has three primary components: anode, cathode and electrolyte.

There are various formulas for the lithium-ion battery, but one of the more common comprises graphite in the anode, lithium as the electrolyte and the cathode which includes nickel, cobalt and manganese.

At this stage, the three cathode materials are usually in equal portions, but with the rocketing cobalt price and supply bottlenecks, many manufacturers have increased the nickel component, with analysts forecasting nickel will account for 80% of the cathode material in most newer batteries by 2020.

When included in the battery, nickel offers fire resistance, higher stability, more power, longer life and further recharges per battery. Notorious Tesla chief executive officer Elon Musk once said the battery would be more aptly called the ?nickel-graphite? battery, ?because primarily the cathode is nickel and the anode side is graphite with silicon oxide. There?s a little bit of lithium in there, but it?s like the salt on the salad.?

Mincor tenements of more than 300km2 are located in Kambalda, one of the world?s great nickel provinces. Since its discovery by WMC Resources Limited in 1966, it has produced over 51?million tonnes of ore grading 3.1% Ni for 1.6Mt of nickel metal.

Mincor played a leading role in Kambalda?s post-2001 revival. The Company produced some 180,000 tonnes of nickel metal in ore over a successful 14-year period as a profitable, dividend-paying mining company before placing operations on care and maintenance in 2016 at a time of historically low nickel prices.

The Company has a high quality Mineral Resource inventory totalling 5.0Mt at 3.8% Ni for 187,800 tonnes of contained nickel including Ore Reserves of 2.3Mt at 2.8% Ni for 65,400 tonnes of contained nickel.

Mincor?s nickel portfolio includes the full spectrum of assets ranging from the first greenfields discovery in Kambalda over 20 years (Cassini) to existing mines on care and maintenance to, brownfields extensions and exploration targets.

The graph shows the company?s trading performance over the last 5 years.

Financial indicators

The VIX fear gauge down by 2.53 points since last Tuesday EST to 18.72 and unbelievably into safe territory.

The Dow Jones Industrial Average up since last Tuesday EST by 424.44 points or 1.52% to 28,308.46, the STOXX 600 up 1.59 points or 0.27% to 370.85 and the Shanghai Composite index up 19.65 points or 0.59% to 3,368.85.

Gold on 1,939.30. US 10-year Treasury Bonds on 0.664 and oil on 42.50. Cryptos Bitcoin down 602 points since last Tuesday or 4.91% to 12,269.

ASX 200 up 38.00 points or 0.62% since last Tuesday to 6,161.40. The Aussie dollar on 71.76US cents.

Eco Market Spot Prices

LGC $42.00

STC $38.30

ESC $25.90

VEEC $34.50

ACCU $15.90

Sources:?RenewEconomy, demandmanager,? Reuters, SMH, Market Watch, Forbes