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In today’s edition:

• 🔥 EV darling Proterra declares bankruptcy

• ⚡️ Rivian supports solar on top of coal mine

• 🌎 Heat’s impact on EV batteries

Read time: 5 minutes

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BIG STORY

EV bus maker Proterra near the end of the line

Driving the news: Proterra, a notable player in the electric vehicle industry recognized for its battery systems used in buses and heavy-duty EVs, has declared bankruptcy.

What's happening: Founded in 2004, Proterra began as an electric transit bus company and quickly became a favorite in the EV industry.

• Over the years, the company expanded its offerings, venturing into battery technology, powertrains, and even launching its own charging infrastructure business.

• By August 2023, Proterra had delivered over 1,000 electric transit buses. Despite its success and going public in 2021 with a valuation of $1.6 billion, the company faced financial challenges.

• The share price plummeted to below $2, a stark contrast to its post-SPAC peak of $26.38. The shares further declined to under $1 upon the bankruptcy news.

Why it matters: Proterra's bankruptcy filing underscores the challenges faced by electric vehicle manufacturers, especially amidst supply chain disruptions and the ongoing effects of the pandemic.

• Contracts with transit agencies, dependent on federal and state funding, were slow to finalize and often required Proterra to reduce product prices to secure bids. This impacted their profit margins.

• Their struggles are not isolated, as NFI Group, a Canada-based bus and coach manufacturer, is also grappling with financial difficulties.

What's next: The US electric bus market, especially school buses, has shown growth potential in recent years.

• While Proterra struggles, other electric bus manufacturers, such as Lion Electric and GreenPower Motor, continue to operate.

• On a global scale, China's BYD stands out as the world's leading electric bus and EV manufacturer.

• The majority of electric buses are found in China, thanks to significant government initiatives. In 2022, China was responsible for 80% of global electric bus sales, with many of those sold internationally being Chinese-made.

🌶 Hot take: Proterra survived multiple recessions and the Cleantech 1.0 crash, so it’s a bummer to see them hit a wall now. Government sales cycles can take years with similarly lengthy deployments, especially with transit agencies with high safety and regulatory standards.

HOT TOPICS

1. 💰 IRA: One year later, the US celebrates a resurgence in clean energy manufacturing with 83 new or expanded facilities announced since President Biden signed the Inflation Reduction Act. Solar component production leads the way, followed by wind energy and battery storage investments.

2. 😎 EV + Solar: Rivian supports an ambitious solar plant on Kentucky coal mine, set to become the largest in the eastern U.S. 800MW project by BrightNight aims to benefit communities, environment, and climate.

3. 😕 Insurance risk: US insurers have invested billions in fossil fuels, increasing the risk of climate-related damage to their underwriting. A report reveals $536 billion in fossil fuel-related assets held by 77% of insurers.

4. ☢️ Nuclear: Congress is taking steps to reduce America's reliance on Russia for nuclear fuel, which currently accounts for over 20% of US nuclear fuel. A Senate amendment aims to boost domestic uranium production and enrichment, promoting national security and climate goals.

5. ⚡️ Electricity: Biden's carbon plan faces opposition from the U.S. power sector, and warns about unproven technologies and high costs.

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TODAY’S DATA

31%

A study by Recurrent reveals that extreme heat can lower the range of certain electric vehicles by 31%.

ACCLIMATE RECS

• Electric vehicles vs. gas-powered cars: Which one is cheaper to buy and own?

• First solar-powered battery charging & swapping hub for rural mobility launches in Kenya

• Seville heat wave measures include a very old cooling technique

• They got jobs in the growing solar industry – but the reality was less sunny than they expected

• Circularity is getting fashionable

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