Steel in autos to drop sharply thru 2040: CAR
The amount of steel in automobiles is expected to fall sharply over the next two decades, replaced increasingly by aluminum and plastic, as automakers continue to strive for lighter weight vehicles.
The use of all types of steel in cars may fall by to 46pc of total curb weight in 2040, down from 65pc in 2020 vehicles, the Center for Automotive Research (CAR) said in a 14 September presentation.
Mild steel and high strength steel (HSS) will be most impacted, falling from 40pc of vehicle curb weight in 2020 to just 9pc in 2040, according to CAR.
In 2019, US steel mills shipped 16.8mn short tons (st) of steel to the US auto industry, including for production of automobiles, heavy trucks, trailers and other vehicle parts, according to data from the American Iron and Steel Institute (AISI).
If the CAR forecast holds, by 2040 steel shipments to the US auto industry could fall to 11.89mn st.
The benefactors of lower steel use will be aluminum, whose share CAR projects will double to 26pc in 2040, and plastics, where curb weight is forecast to grow by 150pc to 15pc of total curb weight.
Between 2020 and 2025, steel used in vehicles is expected to fall by 5 percentage points, with a similar drop expected in the following five-year period. Mild steel and HSS are expected to shoulder all of the declines over those 10 years. The use of Generation 3 steel is expected to increase while advanced high strength steel (AHSS) use will remain approximately the same.
The changes comes as the auto industry climbs out of a deep hole dug during the Covid-19 pandemic, when automakers shut down production for two months from mid-March to mid-May and the US economy fell into a recession.
CAR research expects US vehicle production to fall to 6.6mn vehicles in 2020, down by 39pc compared to the 10.9mn vehicles produced in 2019. CAR expects production to recover to 10.5mn vehicles in 2021, climbing to 11.6mn in 2022 and remaining above 11.5mn through 2028.
Total vehicles sales in the USare forecast to fall to 12.9mn vehicles in 2020, down by 24pc compared to the 17mn vehicles sale recorded in 2019. Sales are not expected to recover above 16mn until 2022, and will not reach 17mn in 2024, according to CAR.
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Australia's MinRes posts higher 1Q spodumene output
Australia's MinRes posts higher 1Q spodumene output
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EV demand slowdown cuts S Korea’s LGES' profit in 1Q
EV demand slowdown cuts S Korea’s LGES' profit in 1Q
Singapore, 25 April (Argus) — South Korea's top battery manufacturer LG Energy Solution (LGES) reported significant lower revenue and profit in January-March, because of lower battery metal prices and slower electric vehicle (EV) demand. LGES' revenue in January-March fell by 23pc on the quarter and 30pc on the year to 6.13 trillion won ($4.46bn), owing to lower demand for EV pouch cells and energy storage system (ESS), with "prolonged metal price impact" affecting its average selling price. The firm reported W157bn of operating profit in January-March, but would have reported an operating loss of W32bn if it did not receive almost W189bn in US Inflation Reduction Act (IRA) tax credits. But this was still a sharp drop from W633bn of operating profit for January-March 2023. The lower revenue and a demand slowdown in the EV market led to utilisation rate adjustments that weighed on its financial performance. The firm reaped a net profit of W212bn during the quarter, which was up by 12pc on the quarter but down by around 62pc on the year, likely significantly propped up by the US' IRA tax credits. LGES said it will continue to invest despite the difficult market environment, but will "adjust" the size of its capital expenditure and execution speed "as per priority". Battery project updates LGES and automaker General Motors in early April completed the first battery shipment out of their second Ultium battery cell factory in US' Tennessee. The plant's capacity is expected to gradually expand to 50 GWh/yr, said LGES. Construction progress at the firm's battery manufacturing complex in US' Arizona is also on track, said the firm. Ramped up capacity is expected to be 53 GWh/yr, which will comprise 36 GWh/yr of 46-series cylindrical battery for EVs and 17 GWh/yr of lithium-iron-phosphate battery for ESS. LGES' 10 GWh/yr Indonesian battery production joint venture with South Korean conglomerate Hyundai Motor has also started mass production. Its battery module production joint venture with automaker Stellantis in US' Ontario, which encountered a halt in construction in May last year, will start operations in the second half of 2024. The factory has a planned capacity of 45GWh/yr and was supposed to begin operations early this year. LGES earlier this year inked a second agreement with Australian firm Wesfarmers Chemicals, Energy and Fertilisers for lithium concentrate supply. The firm will continue building a raw materials supply chain within regions that have a free trade agreement with US, it said. By Joseph Ho Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
EU plastics law clears parliament with mixed reaction
EU plastics law clears parliament with mixed reaction
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Barge delays at Algiers lock near New Orleans
Barge delays at Algiers lock near New Orleans
Houston, 24 April (Argus) — Barges are facing lengthy delays at the Algiers lock near New Orleans as vessels reroute around closures at the Port Allen lock and the Algiers Canal. Delays at the Algiers Lock —at the interconnection of the Mississippi River and the Gulf Intracoastal Waterway— have reached around 37 hours in the past day, according to the US Army Corps of Engineers' lock report. Around 50 vessels are waiting to cross the Algiers lock. Another 70 vessels were waiting at the nearby Harvey lock with a six-hour wait in the past day. The closure at Port Allen lock has spurred the delays, causing vessels to reroute through the Algiers lock. The Port Allen lock is expected to reopen on 28 April, which should relieve pressure on the Algiers lock. Some traffic has been rerouted through the nearby Harvey lock since the Algiers Canal was closed by a collapsed powerline, the US Coast Guard said. The powerline fell on two barges, but no injuries or damages were reported. The wire is being removed by energy company Entergy. The canal is anticipated to reopen at midnight on 25 April. By Meghan Yoyotte Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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