Energy Transition ETFs were broadly positive in December, with the average performance of the 66 ETFs in our database being +6.13%. A notable exception was Uranium ETFs, which fell by 3.7% on average. The charts below look at the performance of the 6 ETFs with over $1 billion USD in assets.

Check out our full database of Energy Transition ETFs.

U.S. Treasury Department releases guidance on section 30D EV credit

December 1st 

“Under the excluded entity restriction, in order to be eligible for the section 30D credit, vehicles placed in service beginning in 2024 must not have batteries containing battery components manufactured or assembled by a FEOC. In addition, vehicles placed in service beginning in 2025 must have not batteries containing applicable critical minerals extracted, processed, or recycled by a FEOC.” U.S. Department of Treasury

• Section 30D of the Inflation Reduction Act (IRA) provides a credit for new clean vehicles, worth a maximum credit of $7,500 per vehicle. 
• The credit consists of $3,750 if certain critical minerals requirements are met and $3,750 if certain battery components requirements are met.
• The proposed criteria would restrict vehicles where the minerals and materials come from a company where at least 25% of the board seats or voting interest is held by a “foreign entity of concern”.
• For example, material from Greenbushes, the world’s largest Lithium mine located in Australia may not qualify under proposed rules as Chinese company Tianqi Lithium owns 26% of the mine.

Read Article: Axios

Press Release: Treasury Department

Generac takes minority stake in EV charging company Wallbox

December 4th | $GNRC  $WBX

“Our first joint effort will accelerate Generac’s entrance into EV charging with leading technology including a dual branded home bidirectional EV charger. We plan to continue to integrate across Wallbox and Generac technologies and leverage our collective brand strength to extend a broader line of residential and business solutions.” Generac President and CEO Aaron Jagdfeld

• Generac will get a seat on Wallbox’s board of directors.
• Generac will offer Wallbox’s EV chargers to its customers.

Read Press Release: Wallbox

AT&T announces plans to buy Rivian EVs in 2024

December 14th| $T $RIVN

“We’re excited to purchase Rivian EVs for our fleet. This pilot is another important step in our ongoing efforts toward sustainability, reducing our carbon footprint and embracing a cleaner future for our operations. With advanced connectivity and a vision for a sustainable future, Rivian is setting the standard for the evolving demands of modern transportation” Hardmon Williams, SVP, AT&T Connected Solutions

• AT&T will add Rivian R1T pickup trucks, R1S SUVs, and Rivian commercial vans to its fleet in early 2024.
• The companies did not disclose the number of vehicles or the cost involved.

Read Article: Reuters

Alibaba plans to sell $391 million worth of XPeng stock, reducing its stake to 7.5%

December 16th | $BABA $XPEV

“We have a strategic relationship with XPeng, which is one of China’s leaders in electric vehicles. We believe in XPeng’s prospects and look forward to continued cooperation with the company.” Alibaba spoksperson

• Alibaba’s stake is held by Taobao China, which owned around 10.2% of XPeng’s outstanding shares prior to the announcement.
• Alibaba is the second-largest shareholder, after Xpeng founder He Xiaopeng.

Read Article: Bloomberg

NIO announces a $2.2 billion equity investment from Abu Dhabi-based CYVN

December 18th | $NIO

• CYVN Holdings is an investment vehicle operated by the Abu Dhabi Investment Authority.
• CYVN now beneficially owns approximately 20.1% of the company’s total issued and outstanding shares
• CYVN will pay $7.5 a share

Read Press Release: Nio

Nikola founder Trevor Milton sentenced to 4 years in prison

December 18th | $NKLA

“Trevor Milton lied to investors again and again — on social media, on television, on podcasts, and in print. But today’s sentence should be a warning to start-up founders and corporate executives everywhere — ‘fake it till you make it’ is not an excuse for fraud, and if you mislead your investors, you will pay a stiff price,” Damian Williams, U.S. attorney for the Southern District of New York

• Milton was convicted in October 2022 on two counts of wire fraud and one count of securities fraud.
• Nikola paid $125 million to settle civil charges brought by the SEC in 2021.

Read Article: CNBC

Panasonic drops plan for Oklahoma EV battery factory

December 20th | $PCRFY

“This decision will not impact our operations in Nevada or Kansas; we have made a long-term commitment to investing in and advancing the EV industry in the United States, and we remain focused on delivering the highest quality batteries for our customers” Panasonic statement

• In April, Panasonic entered into a formal agreement with the state of Oklahoma to explore the possibility of building a factory in the state.

Read Article: Nikkei Asia

BYD to build first European EV plant in Hungary

December 22nd | $BYDDY

Photo: BYD

“The state-of-the-art facility will be the first of its kind built by a Chinese automotive company in Europe and will have the advanced car production line. The factory will be built in phases and is expected to create thousands of local jobs, boost the local economy and support local supply chains. ” BYD Statement

• BYD has now established 230 retail stores across 19 countries in Europe.
• In 2022, Chinese EV battery maker CATL announced plans for a $7.6 billion battery plant in Hungary.

Read Article: New York Times

ReNew signs $5.3 billion MoU with the Asian Development Bank at COP28

December 4th | $RNW

“Today’s agreement marks an exciting time for ReNew. Significant financing is needed to reach global climate targets and this agreement helps secure the capital needed. We look forward to collaborating with Asian Development Bank over the coming years to meet India’s target of achieving 500 GW of renewable capacity by 2030.” Sumant Sinha, ReNew Founder, Chairman, and CEO

• The MoU identified potential investments in renewable energy projects, manufacturing, carbon offset projects, and green hydrogen, with the aim of jointly supporting a sustainable energy transition.
• The MoU is expected to draw interest from additional international investors to participate in financing long-term debt for significant Renewable Energy infrastructure projects
• ADB has a funding ambition of $100 billion in green energy projects by 2030.

Press Release: ReNew Energy Global

Louisiana approves its first-ever offshore wind agreements with Vestas and Mitsubishi

December 14th | $VWDRY

“Legislation passed in recent years clarifying and codifying rules on leasing state offshore areas for wind energy projects helped Louisiana draw interest from operators” Louisiana Department of Natural Resources (DNR) Secretary Tom Harris

• The approvals will launch Louisiana’s first two offshore wind projects, Cajun Wind and Diamond Offshore Wind.
• The state has a goal of 5 GW of offshore wind by 2035.
• Cajun Wind is a near-shore project being developed by Steelhead Americas, Vestas’ North American development arm.
• Diamond Offshore Wind is a wholly-owned subsidiary of Diamond Generating Corporation, part of Mitsubishi’s Power Solution Group.

Press Release: State of Louisiana

SunPower shares fall 23% on ‘going concern’ warning

December 18th | $SPWR

“If the lenders under the Credit Agreement and the Atlas Credit Agreement were to demand immediate repayment, the Company would not have sufficient liquidity to meet its obligations and pay its liabilities arising from normal business operations when they come due” SunPower 10-Q filing

• SunPower, backed by TotalEnergies and Global Infrastructure Partners, saw its shares fall by 73% in 2023.

Read More: SunPower 10-Q

Enphase Energy to cut about 10% of its global workforce

December 18th | $ENPH

“Over the last few months, we have made significant efforts to reduce our operating costs, but we have more work to do to right-size our operations and become leaner and more efficient” Enphase CEO Badri Kothandaraman

• Enphase stated that it is planning to reduce the capacity of its worldwide microinverter contract manufacturing operations to about 7.25 million units per quarter, down from its current capacity of about 10 million units per quarter.
• Enphase will also cut costs by consolidating facilities worldwide, reducing its real estate footprint, and extending hiring and travel freezes.
• The company expects restructuring and impairment charges in the range of $16 million to $18 million.

Read Article: Reuters

U.S. Treasury releases clean hydrogen production tax credit guidance

December 22nd

“The US Treasury Department issued long-awaited guidance for a hotly anticipated hydrogen production tax credit. In doing so, it incorporated stringent conditions that advocacy groups said were necessary to provide environmental guardrails despite industry group concerns that the provisions could stifle the emerging clean hydrogen ecosystem.” S&P Global

• The Inflation Reduction Act (IRA) of 2022 provides a production credit for each kilogram of qualified clean hydrogen produced by a taxpayer at a qualified clean hydrogen production facility.

Proposed Guidance: Treasury Department

Read Article: S&P Global

Uranium firms enCore and Boss Energy form strategic partnership

December 6th | $BQSSF  $EU

Photo: enCore

“Given the location, grade, scale, growth potential and historic production, the Alta Mesa Project is one of the best ISL projects globally with a near-term pathway to production. It is a project that we have always wanted to be involved in.” Duncan Craib, Boss Energy’s Managing Director 

• The companies will form a joint venture to operate the Alta Mesa in-situ leach (ISL) project in South Texas.
• enCore, the project’s current owner, will hold a 70% interest, while Boss will hold a 30% interest in exchange for a payment of $60 million.
• Boss will make a private placement of USD10 million into enCore shares at a price of USD3.90 per share.
• Additionally, Boss will lend up to 200,000 pounds of physical uranium at commercial rates to enCore from its strategic stockpile, allowing enCore the flexibility to optimize its contracts and potential spot sales.

Read Article: World Nuclear News

Tsingshan lists battery unit REPT Battero Energy in Hong Kong

December 18th

• Tsingshan, the world’s top nickel producer, raised around $272 million, selling shares for HK$18.3. 
• REPT Battero will use 80% of the proceeds to expand its production capacity, particularly the construction of facilities in Wenzhou, Foshan, and Chongqing.
• Shares gained 2.6% on the first day of trading.

Read Article: Bloomberg

SQM and Hancock make $1.14 billion bid for Australian lithium developer Azure Minerals

December 19th | $SQM  $AZRMF

• The A$3.70 per share offer from SQM and Rinehart’s Hancock Prospecting, already the target’s two largest shareholders, is up 5.1% from SQM’s prior solo offer of A$3.52 per share.
• SQM has built up a 19.4% stake, while Hancock Prospecting owns 18%.
• The A$3.70 per share is on offer under a scheme of arrangement that needs the backing of 75% of voting shareholders. If that fails, there will be a back-up off-market takeover offer at A$3.65 per share. Both are all-cash offers.

Read Article: Reuters

Core Lithium announces strategic review

December 22nd | $CXOXF

“The team at Core are working at pace on all options to optimise our business and position it as well as possible in the current lithium pricing environment. While we are experiencing market volatility today, our focus is on the continued safe and efficient operation of the Finniss project while preserving the value of our operating asset, projects and exploration potential.” Gareth Manderson, Core Lithium CEO 

• Core has been producing concentrates for ten months, having shipped 10,188 tonnes of concentrate and 16,246 tonnes of fines in November.
• Options include temporarily curtailing operations, seeking commercial solutions, and trimming exploration and other discretionary spending.

Read Article: Mining Technology

SQM signs MoU with Codelco

December 27th | $SQM

“The MoU highlights the entry of Codelco at the beginning of 2025 into the ownership of the NewCo, the company that will be responsible for the production of lithium carbonate and lithium hydroxide on the properties that SQM currently leases from the Chilean Production Development Company (Corfo) in the Salar de Atacama.” SQM statement

• A new company will be formed to produce Lithium on the properties SQM currently leases from the Chilean government.
• Codelco will own 50% + 1 share and contribute their Salar de Atacama lease agreements for mining Lithium from 2031-2060.

• SQM will own 50% – 1 share and contribute its know-how, employees, production equipment and distribution networks.

• Under the new deal, annual production will grow to as much as 300,000 tons.

Press Release: SQM

• Dec 8th: Joe Lowry on Money of Mine podcast Part II.
• Dec 9th: Ken Brinsden of Patriot Battery Metals on the Lithium-ion Rocks podcast.
• Dec 14th: KoBold Metals CEO Kurt House on Volts podcast.