As the EV Future barrels into the passenger vehicle market, it is transforming the global battery industry toward large scale, commercial manufacturing operations that are supported by emerging regionalized supply chains. Global sales of 6.6 million Electric Vehicles in 2021 consumed over 280 GWh of Lithium-Ion Battery Cells valued at almost 30 B USD. This is double the EV Battery market of 2020.

In this episode we consider the transition to EV from the perspective of multiple stakeholders:

Car manufacturers

Utility providers

Battery manufactures (and the supply chain)

Government

Consumers (with different vehicle uses and in different locations)

Biography:

Ron Turi is a battery engineer who owns and operates Element 3 Battery Venture, LLC, a small, but well-equipped development lab centered on lithium battery design that provides contract services for battery end users, cell makers and materials suppliers to the battery industry. Ron is a chemical engineer with 30 years of experience in the lithium-ion battery industry, starting with electrode coating and moving to cell and to battery level development / design. Ron is engaged in projects  for startup companies and larger companies involved in multiple emerging battery technologies with a focus on EV applications

Areas of discussion

Market capacity

Fuel pricing

Labour shortages

Ongoing market restrictions

Importance of confidence

Impact of low economic growth

Resilience of the low cost carriers

Resources

https://www.linkedin.com/feed/update/urn:li:activity:6652962252913729536/

The Endeavour Programme has developed an artificial intelligence technology that can be applied to improve the performance of major projects.

Key takeaways:

Throughout history, the construction industry has rapidly adopted ‘mechanical’ technology, but the management and design of projects is still dominated by humans using programmes such as excel, primavera and autocade

An AI machine is like a mechanical mind. It uses billions of data points to predict the probable time and cost outcome of a project in ways that humans simply cannot do

By gaining a greater understanding of this probable outcome, humans (AI machines don’t make choices!) can make more informed management decisions throughout the project lifecycle

Used correctly, AI allows Governments to better understand the requirements of a project, and make better decisions on how it will allocate resources to match social need

Important decisions now need to be made at the policy level. The data generated from infrastructure is valuable.  Where Government has paid for the infrastructure, it should have open access to that data

Clare is an award-winning environmental expert and sustainability strategist.

Key takeaways

Although widely used, sustainability is a jargonistic word which is not immediately self-explanatory.  ‘Wellbeing’ (social, indigenous, economic and environmental) is a term people can more closely relate to, measure and understand

If the key project evaluation tools are economic (GDP contribution/IRR), the infrastructure delivered will prioritise these requirements (at the expense of broader long-term wellbeing)

Government is responsible for setting the strategic wellbeing framework for large scale capital projects – the market then delivers to these standards.  However, pressure from the business sector remains a key driver of business and government wellbeing practices

The shift to a wellbeing (or sustainable) approach requires a top-down and bottom-up cultural shift.  This can only be achieved through focused, structured and timely wellbeing training

Episode references:

https://nz.linkedin.com/in/clare-feeney-b96926b

https://www.clarefeeney.com/

https://esst.institute/

Key takeaways:

A Portfolio is the totality of an Organisation’s investment required to achieve its strategic objectives. An Organisation can have one or multiple Portfolio’s depending on its business model.

A Program is a temporary organisation structure created to coordinate, direct and oversee the implementation of a number of related Projects. Program’s deliver outcomes and benefits related to and aligned with an Organisation’s strategic objectives.

A Project is created for the purpose of delivering one or more business outputs according to a specified business case. Projects can be stand alone or form part of Program.

Operated effectively, the layered approach:

Provides leadership will a single line of sight from strategy to output.

Allows an organisation to clearly set out, monitor and evidence how it will achieve its stated strategic aims.

Provides quantifiable data for performance reporting and progress

Enables effective risk management across all levels

Richard is the Global Head of Infrastructure at KPMG where he leads a team of nearly 3,000 people.  Richard is an authority within the infrastructure industry.

Key takeaways:

Infrastructure drives quality of life – society functions on the strength of its infrastructure

Covid, and the rising societal awareness of climate change, is releasing the ability of Governments to be more radical than ever before

Governments and the industry are facing three key challenges:

How to prioritise investment

How to leverage technology to improve delivery

How to increase the long-term skills and resilience of the construction industry

The quantum and speed of infrastructure funding required now outstrips the resources of Government – unlocking the trillions of dollars available from the private sector is a priority

The energy (renewables) and transport (electrification, digital connectivity and automation) sectors are being transformed – the burning platform now exists to make wholesale changes to these markets

Sustainability is a global issue – climate change cannot be isolated to a single industry or geography

Following the publication of “Know your options” Frank joined us to discuss what level of private sector participation a government can and should have in delivering long-term infrastructure projects.

Key takeaways

Although ‘Traditional’ models are compared to PPP, all models involve some level of private sector participation. This begs the question: What is the right level of participation for a specific project?

To find the ‘optimal’ approach, Government must first agree and rank its objectives for a project. Common objectives often include the desire to transfer risk but deliver at the lowest possible cost – these are conflicting and need to be ranked to find an optimal solution

The status quo must always be tested. External events (economic growth, Covid-19, new policy) result in constantly changing objectives for Government.  The right level of private sector participation two years ago may not be the right level now

Soft market testing can provide confidence in a new approach in a timely and efficient manner. For the cost of a coffee, potential issues with an approach can be identified early, and addressed before being released to the wider market

Following his excellent article ‘A 10 Point Public-Private Partnership Plan for National Economic Recovery in the USA’ (link in comments) David joined us to discuss the state of the infrastructure in the USA and how the acceleration of PPP programs can provide a solution.

Key takeaways:

For decades, investment into new build infrastructure, or maintenance of existing infrastructure, has been deferred. This policy has created a modern-day infrastructure crisis in the US

The level of investment now required is substantial, even within the context of the US economy

Unless projects cross state boundaries (such as roads or bridges), the States control how infrastructure is procured. States operate autonomously in relation to State issues. Therefore, there are potentially 50 different approaches to how infrastructure is procured

Taxation is central to the American psyche.   Convincing the public or politicians to invest now and take the long-term social or economic view on payback is extremely challenging

PPPs can be a solution to the crisis, but work is required to create a unified approach and provide investors with the confidence to enter this complex market

Article link:

https://www.linkedin.com/pulse/10-point-public-private-partnership-plan-national-economic-baxter/?trackingId=dwLntuny8xEpNmYa7WeMMg%3D%3D

In this episode, we are joined by the team from Conexig to take an in-depth look at the infrastructure market in Latin America.

 

Key takeaways

Covid has significantly impacted economies across the region – with GDP expected to fall by 10% in 2020 

Across the region basic infrastructure is not fully developed. Although this creates a strong pipeline of opportunity, there are several sizable barriers preventing infrastructure delivery

Politics dominates the infrastructure market with major international projects (such as Mexico International Airport which was in construction) being cancelled due to political pressure

Corruption remains prevalent. The ongoing implications of Operação Lava Jato (commenced in March 2014) led to thousands of warrants and arrests across the region including Peru, Brazil, Colombia, Panama, and Mexico.

The market is full of opportunities but it is both complicated and complex. Major international contractors have learned the hard way that local knowledge and insights are critical to success

This is the podcast version of our recent videocast https://youtu.be/EDnCJWurQIs

Key conclusions

We do not know where the bottom of the market is. However, we have seen upward curves in the US (Domestic) market, Europe (pre-lockdown), Mexico, Russia, and China.  Private aviation is also performing strongly

Consistency of Government policy in relation to travel bans, quarantine & pre-departure testing, and the economic recovery are all key to restarting the industry

2021 will be a turbulent year but we can expect to see:

More airline failures

Further staff reductions if conditions do not improve

Asia leading the global economic recovery

Airline fleets being righted size to reflect market conditions

Potential opportunities for new entrants into specific markets

Recording date: 30 October 2020 (pre-second wave of lockdowns across Europe)

Subscribe to our mailing list and receive a copy of the slides used in the presentation - http://eepurl.com/higlMj