The information : Next-Gen Battery Developer Ionic Materials Closes Down

Next-Gen Battery Developer Ionic Materials Closes Down
Company said it had developed a novel polymer that would enable batteries using lithium metal.

The Takeaway
• Battery developer Ionic Materials shut down, idling more than 40 employees
• Company claimed it had developed a novel polymer that would enable batteries using lithium metal
• Closure is latest setback for a company hoping to make a next-generation EV battery

In another setback for a maker of a next-generation electric vehicle battery, Massachusetts battery developer Ionic Materials let go virtually its entire workforce on Tuesday, closed down and made plans to sell its equipment and other assets, according to multiple former employees. The company fired more than 40 employees, two of whom said they received two weeks of pay as severance.

Ionic attracted investor attention in 2018, claiming it had invented a novel polymer material that solved some of battery science’s most vexing problems with lithium metal, an exceptionally energy-dense material that—if it worked—could deliver long driving range. That year, Ionic raised $65 million in a Series C round—large by the standards of the time— from investors including Renault, Nissan and Mitsubishi.

But by 2021, Ionic had failed to get the material to work beyond laboratory scale, and CEO Mike Zimmerman, the material’s inventor, was demoted and left the company later that year. Michael Edelman, a nano materials industry executive, replaced him as CEO. Edelman divided the company into two parts, one attempting to develop another type of battery, and the other working on a polymer film for use in 5G cellular devices.

Meanwhile, growth in EV industry sales slowed last year and investors chilled toward battery startups that were not yet earning revenue. In February, Kleiner Perkins provided Ionic an undisclosed sum as a bridge loan, according to PitchBook, but by this week, the company had all-but run out of cash, executives told employees Tuesday morning, the former employees said.

Neither Zimmerman nor Edelman responded to messages.

I spoke with Zimmerman in 2018. The material he described inventing seemed to solve everything that confounded rivals attempting to make lithium metal work in a battery: Even though it was a solid, lithium ions could move through it faster than they could through liquid, he told me. It was easy to handle and could be manufactured like plastic wrap, he said. And it operated at 5 volts, far beyond the capacity of most rival separators, which if true would enable a number of novel electrodes that didn’t work with lower voltages.

There was a clue that something was amiss when I asked about his plans to scale up a lithium-metal battery. He said that wasn’t his problem—he had invented the material. Now it was up to battery makers who licensed the material to put it into action.

FT : How the energy transition could create a fleet of ghost ships

How the energy transition could create a fleet of ghost ships
New study warns that up to $286bn in value stands to be destroyed in the fossil fuel shipping sector

Assessing the threats facing fossil fuel shipping
When you think of “stranded assets” — investments that will be rendered worthless by the global energy transition — what comes to mind? Probably something big and static like an oilfield or a coal-fired power station. But this fate could await a large proportion of the world’s shipping fleet — ghost ships in the making, even if their owners don’t yet realise it.

That, at least, is the argument of a paper published today by researchers at University College London and Switzerland’s Kühne Foundation.

It notes that more than a third of the world’s commercial shipping capacity carries fossil fuels, including around 13,000 oil tankers, roughly 3,000 tankers carrying liquefied natural or petroleum gas, and 2,500 bulk carriers transporting coal. The total value of these ships, including new vessels ordered but not yet delivered, amounts to about $596bn.

The new paper looks at what would happen to this sector if the world gets on track to limit global warming to 1.5C above preindustrial levels, a target that governments agreed to strive towards in the 2015 Paris agreement. To assess this, it uses a scenario set out by the International Energy Agency, in which global energy emissions are reduced to net zero by 2050, with an attendant slump in fossil fuel demand.

Under that scenario, as much as $286bn in value could be destroyed, according to the new study. This figure amounts to about 37 per cent of the profits that would have been expected from fossil fuel-carrying vessels under a business-as-usual scenario, over the next 25 years.

There are some important caveats to mention here. For one thing, the authors make clear that their estimates indicate a “maximum risk” of loss, and don’t take account of the potential to repurpose the vessels to carry other commodities. This would be pretty straightforward for bulk carriers bearing coal, which are able to carry other bulk loads — including minerals needed to power low-carbon energy systems, for which demand is set to boom over the next few decades.

Such repurposing will be much more complicated for LNG tankers, which are expensively kitted out to carry their load at extremely low temperatures. Oil tankers can in principle be refitted to carry methanol and other biofuels, though the growth outlook for these fuels remains uncertain.

Moreover, while many might consider the IEA’s 2050 net zero scenario a desirable one, it’s now very hard to see it as probable. Certainly, investors in tanker operators are showing no sign of panic at the prospect.

Shares in Norway’s Frontline, one of the biggest oil tanker operators, have risen 159 per cent in the past two years. Rivals Hafnia and Scorpio Tankers have also much more than doubled in value over the same period.


One big driver of activity in this sector has been Russia’s invasion of Ukraine, which has disrupted the global oil and gas trade, driving an increase in seaborne deliveries. Another has been the security crisis in the Red Sea, which has forced tankers to take longer routes, increasing capacity utilisation for the sector.

“The long-run view for oil demand is not necessarily the same as the view for the international oil trade,” points out Tim Smith, who leads research on oil and tanker markets at consultancy Maritime Strategies International.

Still, only the most starry-eyed oilman would refuse to acknowledge the dramatic long-term demand slide that lies in store for the fossil fuel industry, as the world gradually shifts towards cleaner forms of energy.

A way forward
The UCL-Kühne authors argue that shipping companies should manage their risks “by tempering investment in segments with uncertain future transport demand” and building other options for their businesses.

Some tanker companies have started diversifying in this way. Belgium-based Euronav in recent months sold 24 large-scale oil tankers to rival Frontline, while acquiring CMB.Tech, a developer of clean hydrogen and low-carbon shipping technology.

Further pressure may come from the industry’s financiers, Smith warns. Stockholm-based Swedbank went further than most of its peers in 2022 when it said it would no longer provide direct finance for new oil tankers, citing sustainability concerns.

Perhaps a more worrying sign for tanker owners came late last year when the head of shipping at Hamburg Commercial Bank, a significant German financier for the sector, said it was getting nervous about crude carriers’ long-term financial health.

“In the long term we may not be the ones to give loans for crude tankers,” Jan-Philipp Rohr told Shipping Watch, noting that such vessels typically earn an investment return over the course of about 20 years. “The question is for how long the tanker market will remain good, and do shipowners have the possibility to repay loans over that period of time?”

Such questions will be faced by all bankers to this sector in the years ahead. The tanker business is booming for now, but a massive decline — assuming the energy transition doesn’t simply halt — is only a matter of time. The question for these companies, and their bankers and shareholders, is how long the good times can last.

Smart read
The world’s renewable energy investment plans are still far short of what’s needed under the 2030 goal agreed by global governments, the International Energy Agency has warned.

>>> US Early premarket gappers

Early premarket gappers
  • Gapping up:
    • WKME +42.6%, CLLS +19.5%, SFIX +17.2%, HPE +12.8%, DDD +12.4%, CRWD +9.1%, VRNT +8.6%, VIR +8.5%, GWRE +7.8%, ABUS +6.6%, APO +3%, DENN +3%, TCOM +1.4%, CWCO +1.1%, INTC +1%, SLM +0.9%, PD +0.8%
  • Gapping down:
    • MNMD -12%, SPWH -11%, ANNX -10.2%, ZVRA -3.2%, DLTR -1.9%, YEXT -1.4%, THO -1.1%, PVH -1%, RPTX -0.8%, GENE -0.8%

(Makor) ALO FP Rights issue update - Very interesting opportunity

 ALO FP Rights issue update - Very interesting opportunity


All,


1/ Conclusion

We believe the impact of arbitrageurs playing the oversubscription trade is offering an opportunity on ALO FP's stock.

Indeed, as we present below, most of ALO FP's volume in the past 2 days is probably the result of hedging the acquisition of rights (average arbitrage intensity ratio of 0.9x in the past 2 days).
As a result, ALO FP's stock has underperformed its key peer SIE GY by up to 7.6% in the past 3 days (see below).
ALO FP is currently trading at the lower end of the valuation range when assuming it should trade at a 15% discount to SIE GY (see section 3 below).

We suggest investors should buy ALO FP's rights and:
  • Exercise them
  • Oversubscribe to potentially generate a profit from a positive outcome on the pro-rate
  • Hedge the implied long ALO FP delta's position $ neutral with a short SIE GY's position

Such a trade could generate an IRR of close to 10%.


2/ Impact of the rights issue arbitrage on ALO FP's stock

21.1% of all rights have traded so far (using the EU ticker's volume for the rights).

Most importantly:
  • 12% of all rights have traded in the past 2 days
  • The average arbitrage intensity ratio ([Right volume / Stock volume] / Nb of rights for one new share) has been 0.9x in the past 2 days versus an average of 0.3x in the first 4 days.
This implies that most of the stock's volume traded in the past 2 days was hedging the acquisition of rights.
This happened as the average market implied pro-rate in the past 2 days has been around 5.3%, significantly lower than the 7.5% average in the first 4 days.

As a result of arbitrageurs' positioning, ALO FP's stock has underperformed its key peer SIE GY by up to 7.6% in the past 3 days.



3/ Implied ALO FP's valuation post Rights issue

ALO FP is currently trading at the lower end of the valuation range when assuming it should trade at a 15% discount to SIE GY.

This is the case despite recent ALO FP's consensus downgrades (which might already include some of the post Rights issue dilution, and hence some double counting).



David
David Darmouni​​​​
Equity Sales
Makor Securities London Ltd. | Makor Group
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WSJ : BYD, NIO Get Approval to Test Automated Driving Technology on China Roads

BYD, NIO Get Approval to Test Automated Driving Technology on China Roads
This is the first time that Chinese authorities have approved testing for level 3 and level 4 automated driving technologies in China

BYD and NIO NIO -2.43%decrease; red down pointing triangle are among the first few automakers to win approval from Chinese regulators to test their automated driving technology on roads.

China’s Ministry of Industry and Information Technology said late Tuesday that it has approved a list of nine automakers, including manufacturers of trucks and passenger cars, whose automated driving technology can be tested on certain Chinese roads. BYD, NIO and Chongqing Changan Automobile 000625 -1.09%decrease; red down pointing triangle are among those on the list.

The approval means the automakers can test automated driving functions in certain areas in approved cities. Seven cities were approved, including the biggest cities like Beijing, Shanghai, Guangzhou and Shenzhen.

However, the automakers still need to conduct test and safety evaluations before they can carry out actual testing on roads, the ministry said in a separate statement.

This is the first time that Chinese authorities have approved testing for level 3 and level 4 automated driving technologies in China. Both levels mean that cars can go beyond assisted driving and are able to do informed driving decisions with limited human intervention.

“Being able to test for L3 technology is the starting point of autonomous driving,” BYD said in a statement. The approval can hasten the application of automated driving technology, it added.

“It can help these automakers gather real road data in China for advancing their L3 and L4 auto-driving technology,” Bocom International auto analyst Angus Chan said.

The approval shows the government’s commitment to conduct larger scale of testing for automated driving in the country, Chan added.

Chinese automakers have become increasingly competitive in advanced driving technology this year. Tesla’s full self-driving technology has yet to be approved in China, while XPeng and Huawei-backed Seres, two automakers who are leading the auto-driving technology in China, didn’t make it to the list of carmakers approved to carry out automated driving tests on roads.

WWD : Jil Sander, Maison Margiela, Marni Products Will Now Be Digitally Certifie

Jil Sander, Maison Margiela, Marni Products Will Now Be Digitally Certified Authentic
Starting from the fall 2024 collections, parent OTB is aiming to guarantee authenticity of 1.5 million products through the insertion of an NFC chip and registration on the Aura Blockchain platform.

MILAN — OTB is making significant strides in its sustainability path.

The Italian fashion group will reveal Tuesday that it is able to provide digital authenticity certificates for all Jil Sander, Maison Margiela and Marni products, starting from the fall 2024 collections.

The insertion of an NFC chip in every garment and accessory and the registration of all products on the Aura Blockchain platform allow OTB to generate the certificates, which will be guaranteed for more than 1.5 million products a year.

OTB, which also owns the Diesel and Viktor&Rolf brands, production arms Staff International and Brave Kid, and holds a stake in the Amiri brand, is a steering member of the Aura Blockchain Consortium.

“This is an important advance in the OTB innovation process, because it enables us to guarantee greater transparency, new ways of interaction and an increasingly high-profile experience for our luxury brand clients,” said Stefano Rosso, a member of the Aura Blockchain Consortium board and CEO of Marni. “Full-scale adoption of blockchain technology and its integration with our production processes means we shall be able to respond promptly to all the challenges and opportunities presented by future legislation.”

Rosso, who is the son of OTB group founder and chairman Renzo Rosso, was named to the CEO role in May and is also chair of Maison Margiela. He is a board member of the OTB Group and CEO of BVX (Brave Virtual Xperience), the business unit of OTB dedicated to the development of products, content and experiences for the virtual world.

The certificates follow a pilot project involving some of Maison Margiela, Marni and Jil Sander designs. Since the beginning of 2022, the group has already registered approximately 1.2 million products. The NFC chip enables customers to use their smartphone to access the digital authenticity certification, which provides information on the product and its origin.

OTB joined the Aura Blockchain Consortium in 2021, becoming its fourth founding member. LVMH Moët Hennessy Louis Vuitton in 2019 initiated the Aura platform, and were joined in April 2021 by Prada Group and Compagnie Financière Richemont in the Aura Blockchain Consortium, which promotes the use of a single blockchain solution open to all luxury brands worldwide to help consumers trace the provenance and authenticity of luxury goods.

In 2022, OTB joined the Fashion Pact, a further step in sustainability strategy launched in 2021.

Diesel has also been actively committed to a more sustainable road map, joining, for example, the Camera della Moda Re.Crea to manage the end-of-life cycle of products.

Since the launch of the “For Responsible Living Strategy,” in January 2020, Diesel’s denim program has been completely overhauled to implement less impactful practices across the supply chain, from fabrics to treatments. Diesel’s denim crafted from organic, recycled or regenerative cotton has in the last three years grown to 50 percent from 3 percent.

>>> US After Hours Summary: HPE +18%, CRWD +7.4%, GWRE +7.3% higher on earnings;

After Hours Summary: HPE +18%, CRWD +7.4%, GWRE +7.3% higher on earnings; SPWH -11.5%, PVH -1.2% lower on earnings; INTC +0.7% announces JV with APO

After Hours Gainers:

Companies trading higher in after hours in reaction to earnings/guidance: SFIX +22.1%, HPE +18%, CRWD +7.4%, GWRE +7.3%, VRNT +6.1%

Companies trading higher in after hours in reaction to news: DDD +16.5% (expands into digital dentistry market; also announces large $250 mln contract for clear aligners), CLLS +2.7% (EC grants Orphan Drug Designation for UCART22), RPTX +2.5% (FDA grants fast track designation for Lunresertib), CWCO +1.5% (announces settlement of dispute with Mexico), APO +1.4% (APO funds to pay Intel $11 bln to acquire 49% interest in JV related to Intel's Fab 34 in Ireland), AAON +1.1% (authorizes new $50 mln share repurchase program), INTC +0.7% (APO funds to pay Intel $11 bln to acquire 49% interest in JV related to Intel's Fab 34 in Ireland), SLM +0.7% (Director bought 11702 shares), ALSN +0.5% (CFO will also become new COO for now; co searching for new CFO), SNOW +0.3% (PD announces integration of PagerDuty Operations Cloud with Snowflake Trail), INFA +0.2% (launches new Generative AI and Snowflake Native App offerings on Snowflake AI Data Cloud), NDAQ +0.1% (reports monthly trading volumes for May), GEF +0.1% (announces price increases)

After Hours Losers:

Companies trading lower in after hours in reaction to earnings/guidance: SPWH -11.5%, PVH -1.2% (also CEO of Tommy Hilfiger Global and PVH Europe to leave)

Companies trading lower in after hours in reaction to news: ZVRA -4.3% (files $350 mln mixed shelf securities offering), ANNX -2% ($125 mln share offering), YEXT -1.5% (to cut workforce by 12%), WFRD -0.5% (signs MoU with QatarEnergy to advance Tawteen), IBM -0.4% (HCP and AWS (AMZN) announce strategic collaboration), AUPH -0.2% (responds to shareholder Lucien Selce concerns), AMZN -0.1% (HCP and AWS (AMZN) announce strategic collaboration), PD -0.1% (PD announces integration of PagerDuty Operations Cloud with Snowflake Trail), AMZN -0.1% (Twitch raising US subscription prices by $1, according to Engadget)