The Road to Net Zero:
Webinar Key Takeaways
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Key Takeaways
Meet the Speakers
Keys to Driving More EV Growth
EV Goals: Manufacturing Independence, Sustainability
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Additional Resources
EV Adoption is Gaining Momentum
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Sponsored by:
Rodrigo Almeida, Senior Supply Chain Director, Ascend Elements
Featuring:
Felipe Smolka, EY Americas Automotive E-Mobility Leader; Partner, Ernst & Young LLP
Moderated by Adam Ragozzino, Principal Analyst, Batteries and Electric Powertrains, Informa Tech Automotive Group (Wards Intelligence and WardsAuto)
Strategic Insights into the US Battery Materials Market with EY and Ascend Elements
EY is Helping Ascend Decrease Risks
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Ascend is Building an Ecosystem
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EV Success Requires Circularity
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Key Takeaway
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“We have 52 company restaurants, making us the largest operator of the restaurant brand. So, we are right there next to the franchisee. We know exactly what it takes to run them and what it takes to build them and what the challenges are, be they labor or food or whatever.”
- Scott Deviney, CEO, Chicken Salad Chick
EV battery costs. The cost of EV batteries has declined from $2,000 per kilowatt hour to less than $100. Looking ahead, there is the promise of $50 per kilowatt hour batteries that have a longer life, charge faster, and are fully recyclable.
US EV sales. In 2023, US EV sales grew over 50%. North American adoption of EVs has been a bit slower than other markets because SUVs and trucks are harder to electrify due to their weight and the size of the batteries needed.
Worldwide EV sales. Last year, EV sales, including plug-in hybrids, grew over 30%, accounting for around 14 million vehicles. That represents 17% of all global vehicle sales. EVs account for 1 of every 6 vehicles sold.
Despite turbulence in the automotive industry and uncertainty surrounding electric vehicle (EV) adoption, the reality is that a remarkable shift is underway as the automotive market electrifies. The following statistics highlight this shift:
EV Sales in the US Grew Over 50% in 2023
A huge shift is underway as the auto market electrifies.
As with any new and maturing technology, the EV industry must deal with and overcome several challenges. These include:
“The path forward for the EV market will require innovative solutions. The road to affordability remains a key focus. Economies of scale will drive costs down and we should see continued maturation of the technology.”
- Felipe Smolka, Ernst & Young, LLP
Circularity and sustainability. A majority of Americans (56%) fear that old EV batteries will cause toxic landfills. However, EV batteries play a central role in the sustainability of EV platforms. Through effective recycling, the industry can ensure a closed loop system and batteries can come back for a second life.
Manufacturing costs. The costs associated with dedicated EV platforms are daunting. It’s difficult to make money by simply shifting existing platforms to different power trains.
Unstable supply chains. Uncertain, unstable supply chains impact product availability and costs, making it hard for automakers to plan effectively.
Affordability, charging infrastructure, and sustainability are essential.
The EV charging infrastructure. In the United States, a gap in charging availability is hindering broader EV adoption. National Electric Vehicle Infrastructure (NEVI) grants aim to increase charging availability.
56% of Americans fear that old EV batteries will cause toxic landfills. Circularity & Sustainability are required
“It’s a fairly reasonable way to get new guests in your restaurant, partly because third-party delivery is bringing them there.”
Today, many of the materials in EVs are imported. To make US EV manufacturing more self-sufficient, it’s critical to produce more materials domestically and to recycle existing EV materials. The EV battery manufacturing process is very energy and carbon intense. Ascend Element’s vertically integrated business model reduces 90% of the carbon emissions associated with the production of materials that go into every EV battery. That’s driven primarily by a patented Hydro-to-Cathode® process. Ascend Elements begins by recycling the metals in scrap EV batteries and delivering an engineered material that goes into new EV batteries. Ascend’s existing EV battery recycling facility in Georgia will provide the engineered materials to a new site in Kentucky that will produce enough materials to feed 750,000 EV batteries a year. The Kentucky facility will go live by the end of 2024 and enter large-scale industrial production in 2025.
Ascend Elements reduces 90% of emissions associated with EV batteries.
Rodrigo Almeida Describing Ascend Elements’ Focus on Domestic Manufacturing and Sustainability
As Ascend Elements planned its Kentucky site, Ascend realized its plans were theoretical. The company wanted to ensure that once its site was up and running, it would operate as effectively as possible. So, Ascend Elements developed a material flow strategy and mapped out every material movement. Although their work was thorough, they wanted additional validation from outside experts. After meeting with several companies, Ascend Elements decided to team up with Ernst & Young, LLP (EY). The reason: EY was tightly aligned with Ascend Elements. Together, Ascend Elements and EY engaged in a logistics simulation exercise to map all the material movements. (See “Complex logistics study by EY US will guide operations of 150-acre Apex 1 manufacturing campus in Hopkinsville, Kentucky.”) This relationship is a great fit for EY, since EY is committed to sustainability and decarbonization of supply chains. Developing and sustaining a profitable and growing industry for recycling and remanufacturing of batteries is a focus area for EY. The relationship with Ascend Elements started from a shared vision.
Ascend and EY are closely aligned.
- Rodrigo Almeida, Ascend Elements
“We met with different companies to see who would be best suited for providing validation of our material flow strategy. The collaboration with EY [US] was important to ensure that our plans were properly adjusted and fine-tuned.”
Ascend Elements’ Apex 1 facility in Hopkinsville, Kentucky, will be North America’s first sustainable cathode precursor (pCAM) manufacturing facility.
The majority of the world’s cathode materials are made in Asia. Local, state, and federal governments recognize the importance of developing this capability in the US and are providing support to companies like Ascend Elements. For this new industry to thrive, Ascend Elements needs a network of partners including engineering, equipment suppliers, and logistics companies. For most participants in this ecosystem, the field is completely new territory. EY is helping Ascend Elements scale up by overcoming challenges in a variety of areas, including:
Raw materials, regulatory compliance, workforce.
Workforce. There is a pressing need for people to work in EV battery facilities. They need hard skills related to manufacturing, as well as soft skills related to communication and collaboration. EY has a large practice focused on workforce strategies to ensure that companies have the ability to grow.
Regulatory compliance. It’s difficult to secure mining licenses and permits in the US. It’s an area that is hard to break through. Still, the availability of raw materials depends on mining.
Raw material sourcing. The US is finding it difficult to secure stable supplies of raw materials for battery production, such as lithium, nickel, and cobalt. EY has expertise in diversifying supply chains and mitigating supply chain risks.
“The US hasn’t really built batteries on a large scale before. So much money is going into building gigafactories. A big part of this has been joint ventures working with different partners to allow technology to permeate into the fabric of the United States.”
Felipe Smolka Discussing How EY is Helping Ascend Elements Think About Addressing Its Workforce Needs
Consumers worry about EV batteries ending up in landfills.
Ascend Elements is making circularity a reality.
The solution is circularity. Ascend Elements has a clear vision and roadmap for circularity. The company knows that the manufacturing process for batteries is energy and carbon intensive—and has plans to reduce the amount of energy and carbon used. In particular, the Kentucky site will be a game changer, and the company recently announced a joint venture in Europe to expand operations.
Felipe Smolka Discussing Circularity and How Ascend Elements is Driving Change in the EV Battery Market
Adam Ragozzino
Principal Analyst, Batteries and Electric Powertrains Informa Tech Automotive Group (Wards Intelligence and WardsAuto)
Adam Ragozzino is the Principal Analyst in Informa Tech’s Automotive Group (Wards Intelligence and WardsAuto). He covers the rapid advancements in electric vehicle batteries and electric powertrains. Adam’s focus areas also include the latest trends in electric motors, EV transmission trends, and the impact on internal combustion engines.
Speakers
Felipe Smolka
EY Americas Automotive E-Mobility Leader Partner, Ernst & Young LLP
Felipe Smolka leads EY Americas E-Mobility for the automotive sector and is focused on guiding clients through the electrification shift and its opportunities. Felipe is a technologist and innovation executive who brings more than 20 years of experience driving digital change in automotive and fleets.
Rodrigo Almeida
Senior Supply Chain Director Ascend Elements
Rodrigo Almeida is a senior-level supply chain leader with over two decades of experience navigating the complexities of global sourcing, supply chain management and team leadership. He currently serves as Senior Supply Chain Director at Ascend Elements, a fast-growing EV battery materials company.
global sourcing, supply chain management and team leadership. He currently serves as Senior Supply Chain Director at Ascend Elements, a fast-growing EV battery materials company.
through the electrification shift and its opportunities. Felipe is a technologist and innovation executive who brings more than 20 years of experience driving digital change in automotive and fleets.
Intelligence and WardsAuto). He covers the rapid advancements in electric vehicle batteries and electric powertrains. Adam’s focus areas also include the latest trends in electric motors, EV transmission trends, and the impact on internal combustion engines.
Webinar
Electrification and EVs are keys to the automotive industry’s future, and batteries will play a major role. Some have called EV battery manufacturing a matter of national security. Companies like Ascend Elements are developing infrastructure to support an American EV battery material market. Ascend Elements has worked with Ernst & Young LLP (EY US) to accelerate the transition to EVs.
The Road to Net Zero: Strategic Insights into the US Battery Materials Market with EY and Ascend Elements
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Ascend Elements
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Ascend Elements is an independent manufacturer of advanced battery materials using valuable elements reclaimed from spent lithium-ion batteries.
