Drivers of change in our operating environment
Climate change is the most impactful megatrend in our operating environment. The goal of the Paris agreement on climate change is to limit global warming to 1.5 degrees. The EU is committed to reducing its greenhouse gas emissions by 55% by 2030, compared with 1990. The United States is aiming to reduce emissions by 50%, compared with 2005. Both the EU and the United States are aiming for carbon neutrality by 2050.
Time for solutions
Citizens and political decision-makers want solutions. Terrafame is a provider of solutions.
Emissions from transport must be addressed, because transport is a major source of emissions. According to the European Parliament, transport generates around 30% of the EU’s carbon dioxide emissions. More than 70% of the emissions generated by transport come from road transport. This is why political decision-makers in many countries have strongly promoted electric motoring.
The automotive industry has responded quickly to the expectations of consumers and legislators. Many car manufacturers have announced that they will completely abandon combustion engines after a transition period. In addition, numerous manufacturers have entered the electric car market from outside the traditional automotive industry. For example, there are around 500 electric car manufacturers in China.
Increased awareness among citizens and decision-makers has significantly accelerated electric car sales.
Sustainability spells success
The increase in electric car sales drives demand for batteries, which offers many opportunities for battery chemicals produced by Terrafame.
There is also another strong market trend that favours Terrafame: the growing significance of sustainability. Customers and investors are increasingly interested in companies’ sustainability. The EU taxonomy affects financiers’ decisions.
As the only major manufacturer of battery chemicals in the European Union, Terrafame can offer its customers a small carbon footprint and a transparent supply chain. Its climate impacts are the lowest in the industry, thanks to a unique bioleaching method that consumes considerably less energy than conventional methods.
Its production chain is transparent, because the mine and the battery chemicals plant operate on the same industrial site.
Nickel improves battery performance
Drivers expect their electric cars to have longer ranges. Nickel is a key raw material in increasing battery performance, and its share in batteries has grown rapidly. This has strengthened Terrafame’s position in the competition, because the company has the largest nickel reserves in Europe.
Facts about the electric car market
*Source: Rho Motion