The President's Daily Brief - December 29th, 2022. Dirty Green Energy: Renewable Energy Batteries, Part 2.

Episode Date: December 29, 2022

It’s December 29th. You’re listening to the President’s Daily Brief. Your morning intel starts now. ------ Today is Part IV of our Series on Dirty Green Energy — Or as some might say, “renewable energy” or “clean energy.” But always we here at the PDB are asking, “How clean or green is this stuff - really?” Well, so far we’ve discovered that solar panels are not clean or green. They use Chinese slave labor and lots of coal energy to create polysilicon.  And we know that wind energy is very dirty too. It’s killing America’s national bird — the bald eagle — but the federal government won’t tell us how many. How odd.  Then of course we have to talk about the batteries that store and distribute the dirty green power that comes from solar and wind.  Well, yesterday, we talked about the Dirty Minerals that go inside those batteries. And as we now know — Lithium and Cobalt in particular — are very dirty for America: they have to be mined in other countries, and in some cases, the people mining are little children, some only six years old. Today we’re looking at the next, dirty step in the battery process. We gotta explore the refining, the manufacturing, the life, and the ultimate death of these batteries. But before we get going, let’s remind ourselves of the goal of this Dirty Green Energy Series. It is not to degrade solar or wind or batteries because they deserve some sort of unique or targeted prosecution for their sins. Instead, it’s inform ourselves that Green Energy isn’t green at all, but rather very dirty, and we need to hold that industry to the same standards as we do for traditional forms of energy like oil, gas, and coal. ------ Please remember to subscribe if you enjoyed this episode of the President's Daily Brief. Email: [e-mail] Learn more about your ad choices. Visit megaphone.fm/adchoices

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Officer Brian Dean Wright. Your morning intel starts now. Today is part four of our series on dirty green energy, or as some might say, renewable energy or clean energy. But as always, we here at the PDB are asking, how clean or green is that stuff really? Well, so far, we've discovered that solar panels are not clean or green at all. They use Chinese slave labor and lots of coal energy to create something called polysilicon. And we also know that wind energy is very dirty too. In fact, it's killing America's national bird, the bald eagle, but the federal government won't tell us how many. That's odd. Then, of course, we have to talk about the batteries that store and distribute the dirty green power that comes from things like solar and wind energy. Well, yesterday we talked about the dirty mineral

that go inside of those batteries. And as we now know, lithium and cobalt in particular are very dirty for America. They have to be mined in other countries. And in some cases, the people mining are little children, some only six years of age.

Today we're looking at the next dirty step in that battery process. We've got to explore the refining, the manufacturing, the life and the ultimate death of these batteries. But before we get going, let's remind ourselves of the goal of this dirty green energy series. It's not to degrade solar or wind or batteries because they deserve some sort of unique or targeted persecution and prosecution

for their sins. Instead, it's to inform ourselves the green energy isn't green at all, but rather very dirty. And we need to hold that industry to the same degree of standards as we do for traditional forms of energy like oil and gas and coal. Seem fair? All right, let's get started. When we kicked off our conversation yesterday, we did it by imagining that we had a battery in our backyard. And we tore it apart and we found three key minerals inside, lithium, cobalt, and nickel. So now let's imagine we are putting our battery back together again. But this time, let's imagine that we are assembling this thing for the very first time.

That means we're going to have to take those raw minerals, the lithium, the cobalt, and the nickel. and make them usable, malleable. And to do that, we have to refine them, just like we do with oil in order to get gas and diesel. Well, in this case, we have to take out the impurities from this stuff. For instance, lithium tends to be found with deposits of magnesium and calcium. So we have to strip that stuff out. But unfortunately, refining lithium and cobalt and nickel

is a very difficult and specialized process. It requires a huge amount. of energy to do so. And it just gives you a sense of that. These minerals have to be heated to upwards of 1,800 degrees Fahrenheit. According to researchers at MIT, that is a temperature that can only be cost-effectively done and reached by burning fossil fuels, which means that the refineries are going to be located in those places with very cheap supplies of energy.

So where in the world might that be? Hmm. Based on what we know about, say, solar panels, well, which of course also require cheap energy, where in the world might we find that stuff? Yeah, that's right. We got to talk about China. According to data from the U.S. Department of Energy and Bloomberg NEF, China controls 80% of the world's refining capacity for dirty green raw minerals, like cobalt and lithium. Just to underline the point here, the next closest country for refining cobalt, for instance, is Finland at 10%. Meanwhile, here in the United States, cobalt refinement is basically zero, lithium two. Now, to be fair, there are efforts to address that, at least with lithium here in America.

To give you an example, the car company Tesla announced their intention to build a lithium refinery in Texas. Although, once again, that's because Texas has a whole bunch of cheap fossil fuel. energy. Meanwhile, there are also other plans for refineries in Tennessee and other states, too, especially down south. But as ever, that's largely because those states get very cheap, reliable nuclear power. But look, even if that sounds hopeful, refineries in America for dirty green minerals, a word of caution, these refineries will take years to permit and construct if environmental groups and others don't successfully sue to stop them as they, they have elsewhere in America.

The point then is that once again, the United States does not have control of the most foundational aspects of dirty green energy. We don't have the mines and we don't have the refineries. And that won't change for many years to come. And that's just the very first step of turning those minerals into batteries. We now need to move on to the second step after refining, which will require us to pinch our noses and buy some refined materials. from China and start manufacturing the physical battery itself.

Now, the details here get pretty technical. You'll hear words like cathode and anode terminals and anti-exposure valves. And that cathode in particular is the real trade secret for batteries, because it's largely where you mix and match different materials and minerals to achieve different goals for your batteries, like how long it takes to charge or how prone it is to explode or how much range it might have if it's put into a car. But instead of getting into the weeds on those details, what's important for us to consider is who controls most of the world's battery manufacturers.

Because as always, that's a critical question in trying to figure out how dirty these batteries really are, at least from a national security perspective. Well, as it turns out, there is one country that dominates the battery manufacturing industry, and that country is not surprisingly still China. Last year, about 80% of all lithium-ion batteries that entered the global marketplace came from China. And that makes sense, practically speaking. If China controls the mines, especially for cobalt,

plus virtually all of the refining capacity for all dirty green minerals, well, it stands to reason that the supply chain would likely stay in China when it comes to battery manufacturing. And that's precisely what's happened. Now, as always, to be fair, there are lots of companies jumping into the battery manufacturing industry here in America to try to build American-made batteries. Last summer, for instance, Panasonic announced a battery factory in Oklahoma, with another one possibly in the state of Kansas. LG Energy, the South Korean company, they're looking at a factory in Ohio. And that's all happening in no small part because of Joe Biden's $380 billion climate change bill.

It had lots of incentives to build out this battery manufacturing capacity in America. And that means that over time, you know, 5, 15 years analysts say, we may have more domestic battery supply to work with. But that means that there is going to be a gap between now and then. And that helps explain this. Ford Motor Company announced last summer that for its F-150 Lightning electric pickup truck and their Mustang Mach-E electric car, the battery. the batteries will largely come from China, specifically a company called Contemporary Amperics

Technology or C-A-T-L. They're the world's largest battery manufacturer. But folks, I want to emphasize something. Even when we build our own battery manufacturers here in America, we still have two foundational problems. China and other countries like the Congo still control the lithium and the cobalt mines, as we talked about yesterday. and China still controls the refining process too, as I just mentioned. So if I could use a rough analogy here, trying to compare dirty green to something we might understand a bit more,

let's think about oil. We don't control the oil wells. We don't control the oil. And we don't control the oil refineries. But we are building out some gas stations. And that's nice, I guess. With that, let's take our first. first break. For my paid subscribers on the Apple platform, no ads for you, for everybody else,

don't worry, we'll be back very shortly. When we do, we're going to talk about the life and the death of batteries. We'll be right back. Kayak gets my flight, hotel, and rental car right, so I can tune out travel advice that's just plain wrong. Bro, Skycoin, way better than points. Never fly during a Scorpio full moon. Just tell the manager you'll sue. Instant room upgrade. Stop taking bad travel advice. Start comparing hundreds of sites with kayak and get your trip right.

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then everyone does. Awkward becomes electric. When Bose sound fills the room, You don't just hear the music. You feel it. Your life deserves music. Your music deserves Bose. Find your perfect product at Bose.com. Welcome back to the PDB folks. Today we are talking about dirty green batteries and we're focused next on the life and the death of that very critical component in the dirty green revolution. So let's start with this. How long does a battery last? And by that, I mean, how long will it hold the charge before it just gives out and we have to

throw the thing away or recycle it, because that is a critical question in understanding how dirty these batteries are. Well, it turns out the determining a battery's life is a really tricky question to answer. It depends on a range of factors. So, for instance, was the battery over its life often stored in the cold for too long, like in the wintertime? Or was it in the heat for too long, like in the summer? Because batteries perform and survive longest, they are left in temperatures between 60 to 75 degrees. That's according to researchers at the University of Michigan. Next, batteries don't like it too humid or too wet.

So if you are on the U.S. East Coast or in the South, determining battery life might get tricky for you, especially during the hurricane season. Also, lithium ion batteries don't like to be fully charged or totally empty. They last longer if you leave them charged somewhere between 20% and 80% of total capacity, if you please. Finally, if you've got an electric vehicle to maximize the life of your battery, do not accidentally run over a modestly sized rock or a curb because that will likely

damage the battery and void the warranty. And if that happens, get out your checkbook because replacement batteries will run you $20,000 to $25,000 or so. Now, tomorrow we're going to talk more about. this issue as it relates to electric vehicles. There's actually some general guidance I can give you about battery life, but suffice to say, I can't tell you exactly how long a battery lasts because there are so many variables. And for consumers, that's bad. Now, one thing before we move on to the death of our batteries, some listeners in the past have asked that I talk about the carbon footprint

of batteries, because it's true. It's pretty substantial. Batteries require, tremendous amounts of carbon-based energy like coal or natural gas for the refining process, for the manufacturing and the transportation of the very heavy finished product. We're going to talk more about that tomorrow. But excellent questions, and I thank you all for those emails. Meanwhile, let's focus now on the end of life of a battery, because like all things, batteries live and batteries die. So what happens when they die?

Well, there are two options. Landfills or recycling centers. Let's talk first about recycling. So right now, there aren't a lot of recycling options. In fact, as of this moment, the world only recycles around 5% of lithium ion batteries. Plus, even when we do, only around half of the materials inside those batteries can be extracted and repurposed. Much of the rest is ending up in landfills. So why is that? Well, the energy requirements of recycling a lithium ion battery is pretty similar to making one in the first place. It requires a high-temperature smelting process that requires a lot of energy usually created by natural gas, coal, or nuclear plants. Now, as always, to be fair, there are some effort at building out this recycling industry in America. So, for example, in the fall of 2022, the U.S. Department of Energy announced a grant of $300 million,

for entrepreneurs and researchers to find better ways of recycling these batteries. Meanwhile, the private sector is moving ahead with the inefficient recycling systems such as they are today. To give you just one example of that, there's a company called Redwood, which currently has a battery recycling plant in Nevada, with another one set to open in South Carolina in the spring of 2023. Although folks in South Carolina might be a little bit gun-shy about these battery recycling facilities, facilities. According to a local newspaper called the state, recycling plant outside of the city of Florence, South Carolina recently declared bankruptcy. For years, they had been cited for breaking

environmental laws. And now, the soil there is considered a hazardous waste zone. So for what it's worth, Redwood is aware of this very bad legacy in South Carolina. But they say it will never happen with their facility. Well, we shall see. With that, let's take our final break of the morning. When we come back, we'll talk about what happens when batteries end up in a landfill. And it's not good news, I'm sorry to say. We'll be right back. How many discounts does USAA auto insurance offer? Too many to say here. Multi-vehicle discount. Safe driver discount. New vehicle discount. Storage discount. How many discounts will you stack up? Tap the banner or visit usaa.com slash auto discounts. Restrictions apply.

Get the most out of your vehicle with GM genuine parts. and AC Delco original equipment, the only parts designed, engineered, tested, and backed by General Motors. You can find your perfect fit for most makes and models and choose from three tiers of parts, including GMOE or gold and silver aftermarket parts. Visit GMParts.com for more information. Welcome back to the PDB. We are wrapping up today's brief about batteries by going to the dumps. Now, before our last break, I mentioned that the world only recycles around

5% of lithium ion batteries, which means that about 95% gets thrown into landfills. And we see that that is true and not just the United States, but around the world too. In fact, a study out of Australia showed that 98% of their lithium ion batteries ended up in a landfill. And that's really bad because inside of these batteries is a witch's brew of toxic chemicals. And when those batteries inevitably break either in a garbage truck or in a landfill, those chemicals leach into the ground if the dump isn't properly sealed. And that gets into our groundwater. Now, I want to pause for just a moment and really reflect on the magnitude of this problem if it doesn't get worked out. So remember yesterday when I said that there are 1.4 billion passenger vehicles on the road today,

and the goal by climate change activists is to replace all of these things with electric vehicles. Well, each of those vehicles will have upwards of 500 pounds a piece of lithium ion batteries or some polluting chemical cousin. So you can do the math on that. Just imagine the scale of this potential global environmental disaster if just car batteries get dumped into landfills. Say nothing of the solar farms and the wind farms and all those industrial batteries. So, all right, as bad as that problem is, we've got another one to talk about. But this time, it's not what's going to go into the ground, God forbid. It's what's going into the air.

So to understand this issue, let's actually take a step back for a second. Lithium ion batteries are by their very nature, very explosive. They've got a lot of energy inside them. Now, sometimes they burst into flames on their own without even being damaged, and usually because they get too hot. Now, other times, as I mentioned earlier, there is some damage, such as your electric vehicle accidentally running over rock or you had a curb wrong. So those batteries can burst into flames.

And when they do, these fires are incredibly hard to put out. Let me just give you an example. In April of 2022, the West Coast utility company PG&E installed a Tesla industrial battery pack for a solar and wind farm. Tesla calls these things megapacks. Well, after five months of use, that megapack, a big pack, a big, apparently overheated, and it burst into flames. Residents in the area were told to shelter in place, to shut their windows and turn off their air conditioners, all because of the toxic fumes being emitted, namely hydrochloric and hydrofluoric acid. It took the fire department tens of thousands of gallons of water

to put that fire out, and they had to wear hazmat suits to do it. In other words, folks, this technology can be incredibly dangerous. So knowing that, let's think about this problem once again and step back into landfills. So do me a favor. When you have time, do an internet search for landfill battery fire. You will see example after example of fires all around the country and all around the world, all of which started by batteries. Now, it's mostly lithium ion batteries and mostly from consumer products.

I'll just give you but one example in one state. California. According to a study published by the newspaper USA Today, about 40% of all the fires in that state were caused by lithium ion batteries. Now, there are estimates as well that in the United States and Canada, fires from lithium ion batteries as of right now are costing operators over $1.2 billion a year. Plus, they're starting fires not only in landfills, but in garbage trucks, too. So imagine that problem with millions or billions of more batteries. So all in all folks, we've got ourselves another set of very dirty challenges with these batteries. Let's recap. We've got a profound national security issue with these things as 80% of the refining and manufacturing

processes are in China. Now there are some efforts to change that. Modest efforts on refining, a bit more robust on manufacturing, but nevertheless, either way, it'll take years to build out these things here in America. And even when we do, we still won't control the mines, the raw materials. Meanwhile, it's wildly variable about how long these batteries will last, but eventually they will die, and there's very little recycling at present. And that means that most of these batteries are going into landfills. And once there, they will sometimes be crushed, leading to leaching of toxic chemicals into the ground, or they will start a fire, putting toxic fumes like hydrochloric and hydrofluoric acid into the air. But to be very clear, sometimes these batteries

just burst into flames on their own. No crushing or landfills needed. We've seen that in California and in places actually that I didn't mention like Australia. So my friends, there you have it. We've gone from China to your local landfill. And we have learned today that those batteries in the dirty green revolution are just as dirty as we might have feared. Now, if any of this comes as a surprise, ask yourself, why is that? Why are you learning about this stuff for the first time? Why isn't the media or car companies, environmental groups, or our politicians, talking about the dirty side of green energy?

Hmm, I'll leave those questions with you to wrestle with this morning, all in anticipation of tomorrow's brief on electric vehicles, because that is where most of us will touch this dirty green revolution every time we get into one of these electric cars. And I hate to say it, but, well, those things are far dirtier than you ever imagined or have ever been told. And that, ladies and gentlemen, conclude, your morning brief. As always, we close out the show, reminding each other of why we are here,

talking about our country and our world. It's the creed of every good spy and every smart American. It's from John, chapter 8, verse 32. And you shall know the truth. And the truth shall make you free. Good day.