Investing in the Energy Transition: January 2024

February 2, 2024

ETF Performance

Energy Transition ETFs were broadly negative in January, with the average performance of the 66 ETFs in our database being -5.57%. A notable exception was Uranium ETFs, which rose by 11.5% 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.

Company News: Electric Vehicles

BYD overtakes Tesla’s electric car sales in Q4

January 2nd | $BYDDY $TSLA

“BYD has concluded 2023 with record-breaking sales volume, which surpasses the 3 million annual sales target and becomes the global new energy vehicle (NEV) sales champion, for the second year in a row. This year also marks BYD being listed among the global top 10 of car sales for the first time. In the Chinese market, BYD retained its position as the best-selling car brand and manufacturer.” BYD statement

  • BYD sold a record 526,000 fully electric vehicles in Q4 2023, compared to 484,500 for Tesla.
  • BYD sold 3,024,417 New Energy Vehicles (full electric + hybrids) in 2023, up 62% YoY.
    • Fully electric: 1.6 million
    • Hybrids: 1.4 million 
  • Tesla still sold more fully electric EVs in 2023 with 1.8 million vehicles sold.

Read More: Tesla 2023 Sales Figures

Read More: 2023 BYD Sales Figures

VinFast plans $2 billion EV battery plant in India

January 8th | $VFS

“The plan to expand into India aims to seize growth opportunities in the worlds most populous nation and rapidly expanding EV market. This initiative forms a crucial part of VinFasts strategy to establish a strong presence in key markets and strengthen its supply chain for global expansion.” VinGroup statement

  • VinFast and the Tamil Nadu State Government will work toward a total investment of up to USD 2 billion, with an intended commitment of USD 500 million for the first phase of the Project, spanning five years from the commencement date.
  • Construction of the plant is anticipated to begin in 2024.
  • The VinFast Tamil Nadu project aims to evolve into a first-class electric vehicle production hub in the region, with an annual capacity of up to 150,000 units.

Read Article: AP News

Read Press Release: VinGroup

VinFast unveils new electric pickup truck concept

January 9th | $VFS

Photo: VinFast

“We are very proud to introduce the VF Wild concept, which encapsulates our mission to make sustainable, high-quality electric vehicles accessible to a broader market. This is not just a new product in our offering – it showcases our aspiration to venture into the fast-paced and thriving electric pickup truck market.Ms. Tran Mai Hoa, Deputy CEO of Sales and Marketing, VinFast Global

  • The VF Wild concept was jointly developed by VinFast and Australian design studio GoMotiv
  • Car and Driver expect the vehicle to debut in the U.S. in 2026 with a starting price around $45,000.

Read Press Release: VinFast

ChargePoint announces reorganization, plans to cut 12% of workforce

January 10th | $CHPT

“As part of a comprehensive business evaluation in my new position as CEO, today we have taken the difficult decision to reorganize our global workforce” ChargePoint President and CEO Rick Wilmer

  • The reorganization is expected to lead to approximately $14 million in restructuring charges, consisting of approximately $10 million in severance and related expenses and approximately $4 million in facility-related expenses.
  • ChargePoint expects the action to result in annual operating expense savings of approximately $33 million.
  • Additional components of the strategic plan under new CEO Rick Wilmer will be discussed in ChargePoint’s investor call expected in March.

Read Press Release: ChargePoint

Hertz will sell 20,000 EVs from its U.S. fleet

January 13th| $HTZ $TSLA $PSNY

“These vehicle dispositions, which were initiated in December 2023 and are expected to take place in an orderly fashion over the course of 2024, will cover multiple makes and models. EVs held for sale will remain eligible for rental within the Company’s fleet during the sales process. The Company expects to reinvest a portion of the proceeds from the sale of EVs into the purchase of internal combustion engine (“ICE”) vehicles to meet customer demand.” Hertz filing

  • Hertz had previously set a goal to electrify 25% of its fleet by the end of 2024.
    • To this end, in 2021 the company announced plans to buy 100,000 Teslas, and in 2022, plans to buy 65,000 Polestars.
  • The company said it would log a $245 million incremental net depreciation expense related to the sale of the 20,000 electric vehicles.

Read Article: Wall Street Journal

Ford is cutting F-150 Lightning production again amid ‘slower than expected’ demand

January 19th | $F

“We are taking advantage of our manufacturing flexibility to offer customers choices while balancing our growth and profitability. Customers love the F-150 Lightning, America’s best-selling EV pickupFord President and CEO Jim Farley

  • The F-150 Lightning was the top-selling electric truck in the US in 2023 with over 24,000 delivered.
  • The company has capacity to scale production of gas-powered and hybrid F-150 trucks depending on demand.

Read Article: Electrek

Read Press Release: Ford

Check out our full database of EV Industry Stocks.

Company News: Green Energy

First Solar inks up to US$700 million tax credit transfer agreements with Fiserv

January 2nd | $FSLR

“The liquidity generated as a result of this transaction is expected to accelerate the timing of enhancing our cash position in the US through the monetisation of the Section 45X credits, further strengthening our balance sheet and allowing us to continue investing in key aspects of growth, such as research and development” First Solar CFO Alex Bradley

  • Fiserv will pay US$0.96 per US$1 of tax credits to the cadmium telluride (CdTe) module manufacturer during the first half of 2024
  • This marks the first significant credit transfer of its kind in the solar manufacturing industry, according to the company.
  • First Solar is investing heavily in its U.S. manufacturing presence, with new facilities planned in Alabama and Louisiana.

Read Article: PV-Tech

Vineyard Wind starts delivering power to the New England grid

January 2nd | $AGR $IBDRY

Vineyard Wind is now delivering clean energy to the grid produced right off our shores! This milestone is a testament to the achievements we can reach through collaboration, persistence, and a dedication to a green future. Cape Codders and Islanders are proud to pave the way for continued advancement of a clean energy future in Massachusetts powered by offshore wind, one that’s critical to saving our planet and coastal communities.Massachusetts State Sen. Julian Cyr

  • Once completed, the project will have 806 MW capacity from 62 wind turbines.
  • The project is owned by utility Avangrid and Copenhagen Infrastructure Partners.

Press Articla: MV Times

Qcells to supply Microsoft with 12 GW of solar panels in expanded partnership

January 9th | $MSFT

“Our expanded agreement with Qcells is designed to drive large-scale domestic production of solar modules essential to advancing a resilient U.S. supply chain and clean energy economy” Bobby Hollis, VP, Energy, Microsoft

  • Qcells will supply Microsoft with 12 GW of solar modules and engineering, procurement and construction services over eight years, according to the press release
  • Qcells is building a plant in Georgia that is expected to produce 3.3 GW of solar ingots, wafers, cells and finished panels a year.
  • Qcells is a subsidiary of Korean manufacturing conglomerate Hanwha.

Press Release: Microsoft

Read Article: Utility Dive

GE Vernova announces 2.4 GW order for Pattern Energy’s SunZia wind project

January 9th | $GE

We are pleased to support Pattern Energy on this monumental project that reinforces the key role wind power has in delivering renewable energy to meet the growing demand for power in the Western U.S. and in accelerating the energy transition. The project is a great example of how the policy certainty created by the IRA is helping to drive significant investments in the U.S. wind power market.Scott Strazik, CEO of GE Vernova

  • GE Vernova’s Onshore Wind Business announced a new equipment and long-term services deal with Pattern Energy to supply 674 wind turbines that will provide more than 2.4 gigawatts (GW) of power at the SunZia Wind project in New Mexico.
  • GE Vernova’s Financial Services business acted as a Joint Lead Arranger on a $2.25 billion tax equity term loan facility provided by Banco Santander, part of the project’s recent $11 billion financing package.

Press Release: GE

Check out The Listed Companies Delivering the Massive SunZia Wind Project

TPI and GE Vernova Expand Contract in Mexico

January 11th | $TPIC $GE

GE Vernova has a long-standing partnership with TPI in Juarez, producing wind turbine blades for the US market. This expansion of our partnership enables GE Vernova to best serve our customers who are delivering the future of renewable energy.Guy Lynch,  Executive Director of Global Sourcing at GE Vernova Onshore Wind

  • Additional production lines in a third facility within TPI’s Juarez campus will manufacture GE Vernova’s “workhorse” wind turbine blade for the US market.
  • TPI has manufactured wind blades for GE Vernova since 2008.

Read Press Release: TPI Composites

SolarEdge to cut about 16% of its global workforce

January 22nd | $SEDG

We remain confident in the long-term growth of the solar energy market… These changes do not impact our strategic direction and priorities and we remain committed to continue to drive the renewable energy transformation.SolarEdge CEO Zvi Lando

  • The move is part of a restructuring plan following the discontinuation of manufacturing in Mexico, the reduction of manufacturing in China, and the termination of the firm’s light commercial vehicle e-mobility operations.
  • The reduction translates into layoffs of 900 employees, of which about 550 are in Israel.

Read Article: Times of Israel

Plug Power expects $1.6 Billion US Loan in Q3

January 23rd | $PLUG

“Addressing the critical issue of cash management and resolving our going concern is now our foremost priorityPlug Power CEO Andy Marsh

  • The rate will be no higher than 6.5%.

Read Article: Bloomberg

Check out our full database of Hydrogen Stocks.

Company News: Critical Minerals

Arcadium Lithium Announces Completion of Merger of Equals between Allkem and Livent

January 4th | $ALTM

“We are a leader in every major lithium extraction process – from hard rock mining to conventional pond and DLE-based brine processing – and vertically integrated, from resource to chemical manufacturing, in strategic locations around the world” Arcadium Lithium CEO Paul Graves

  • The company is now trading on the NYSE under ticker “ALTH” as well as on the ASX under ticker “LTM”.

Read Press Release: Arcadium Lithium

Pilbara Minerals expands offtake deal with Ganfeng

January 18th | $PILBF $GNENF

“We are delighted to be expanding our valued relationship with Ganfeng, who has extensive capability in the production of battery grade lithium products with over 20 years of industry experience and rapidly expanding global footprint as a major global supplier” Pilbara Minerals CEO Dale Henderson

  • The updated agreement, originally inked in 2017, spans 2024, 2025 and 2026 with a total allocation of up to 310,000 tonnes per annum (ktpa) from the company’s flagship Pilgangoora operation in Western Australia.
  • All spodumene concentrate will be sold at prevailing market prices.

Read Article:

Liontown’s A$760 million funding package falls apart

January 22nd | $LINRF
  • The company’s A$760 million debt funding package could not be finalized amid falling lithium prices.
  • As a result, Liontown is examining options to defer the timing of the previously announced 4 million tonne per annum underground development work.
  • There is no change to the 3 million tonne per annum plant capacity design which the Company is currently constructing.
  • Liontown has approximately $515 million cash at bank at 31 December 2023, having now fully drawn the A$300 million project funding package secured from Ford.
  • The Company expects to be able to provide a funding update by the end of the March 2024 quarter.

Press Release: Liontown

The world’s highest grade hard rock lithium mine to slow production

January 29th | $IPGDF

“Indicated volumes are below forecast, and as such it is likely that production at Greenbushes will be marginally reduced during this period,” IGO filing

  • The mine is 51% owned by a joint venture between Tianqi Lithium and IGO, and 49% owned by Albemarle.

Read Article: Australian Financial Review

Check out our full database of Lithium Stocks.

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