Miami’s mayor looks to woo Chinese bitcoin miners with low energy prices and clean nuclear power

Published

4 years ago

June 19, 2021

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MIAMI – Mayor Francis Suarez says Miami’s doors are open to bitcoin miners in China who are currently scrambling to find a new home after Beijing made it clear that their days are numbered.

Mining is the energy-intensive process which both creates new coins and updates the digital ledger of all transactions of existing tokens. More than half of all miners are currently based in China, but a mass exodus is already underway. Where they’re going, however, isn’t yet clear.

While Suarez told CNBC he hasn’t personally received any calls from Chinese miners, the mayor is looking to patriate this mining diaspora by promoting the city’s essentially unlimited supply of cheap nuclear energy.

“We want to make sure that our city has an opportunity to compete,” he said. “We’re talking to a lot of companies and just telling them, ‘Hey, we want you to be here,’” he said.

Rolling out the red carpet

Bitcoin miners are location agnostic; all they need is a rig and a good internet connection. What varies place to place, however, is the cost of energy. And ultimately, what miners care about most is finding the cheapest source of power out there to drive up their profit margins.

That’s why Mayor Suarez, one of the most crypto-friendly politicians in the United States, is making big promises on the cost of doing business in Miami. Suarez has been a crypto believer for years, but he took the plunge into investing in bitcoin and ethereum once he saw the federal government pass a $1.9 trillion American rescue plan, because he “realized that what was inevitable – and already happening – is inflation.”

He emphasized the city’s reliance on nuclear power as a source of clean, inexpensive energy.

“The fact that we have nuclear power means that it’s very inexpensive power,” Suarez told CNBC in an interview from a second-floor conference room in the Miami City Hall building.

Less than an hour from City Hall is the Turkey Point Nuclear Plant, which helps to power Miami, according to data from the Energy Information Administration. The Bureau of Labor Statistics reported an average electricity per kilowatt hour cost of 10.7 cents in Miami, versus the national average of 13.3 cents.

Florida Power and Light workers Juan Madruga (R) and Pehter Rodriguez (L) confer at the Turkey Point Nuclear Reactor Building in Homestead, Florida May 18, 2017.

Rhona Wise | AFP | Getty Images

Across the state of Florida, nuclear energy is the second-biggest power generator, after natural gas. Suarez is already in talks with Florida Power & Light Company to figure out how to further drive down the price of energy.

“We understand how important this is…miners want to get to a certain kilowatt price per hour. And so we’re working with them on that,” Suarez told CNBC.

The mayor is also considering a mix of other incentives, like enterprise zones specifically for crypto mining. Enterprise zones are areas in which tax concessions, infrastructure incentives, and scaled-back regulations are offered to companies, with the hope that these breaks will encourage investment and create jobs.

Miami is not alone in its ambitions to capture the attention of bitcoin miners.

“There is demand in North America…so the question will be one of capacity,” said Alyse Killeen, founder and managing partner of bitcoin-focused venture firm Stillmark.

Where physical infrastructure and capacity is concerned, the mayor is optimistic the city can meet the needs of miners.

“We were one of the first cities in the world to have a data center, and a mining hub is very similar to a data center,” he said.

But even Suarez admits that a lot needs to happen first.

“Building a mining facility is similar to building a data center. It’s not something that happens overnight,” Suarez told CNBC.

Miami is also not competing in a vacuum here in the U.S. States like Texas and Wyoming are also fast becoming hot mining destinations, thanks to their cheap energy mix and crypto-friendly policies.

The pollution debate

Mayor Suarez isn’t alone in championing the benefits of using nuclear power.

The federal government calls nuclear energy “a zero-emission clean energy source,” and tech billionaire and climate change evangelist Bill Gates previously told CNBC that nuclear power will “absolutely” become politically acceptable again. Gates said that new innovations are making it safer and more affordable.

“Nuclear has actually been safer than any other source of [power] generation,” Bill Gates told Andrew Ross Sorkin on CNBC’s “Squawk Box.” “You know, coal plants, coal particulate, natural gas pipelines blowing up. The deaths per unit of power on these other approaches are far higher,” Gates said.

But there are a few drawbacks to harnessing nuclear energy. While nuclear power reactors do not produce air pollution or carbon dioxide while operating, emissions are generated when constructing nuclear power plants and in the decommissioning of reactors.

And more often than not, the world’s cheapest energy sources are renewable. All factors considered, solar and wind energy sources are the lowest cost and most scalable, making them a natural fit for mining, according to Killeen.

“Miners’ capitalist motivations push them toward green energy,” she said.

Whether Chinese miners actually make the move to Florida remains to be seen, but there are signs of progress in Miami’s aspirations to become a mining hotspot. Mayor Suarez says he is currently fielding calls from different mining companies outside China that are considering a move to the sunshine state.

The establishment vs. bitcoin

Miami isn’t just after bitcoin miners. The city wants to become a crypto destination for all sorts of professionals interested in the space.

To draw them, the mayor has been trying to make bitcoin mainstream by advocating for policies that would enable city employees to be paid and residents to pay their taxes in the cryptocurrency. The city itself is considering holding it as an asset on their balance sheet. Suarez says they now have legal clearance to proceed, and his office is currently going through the ‘Request for Proposal’ stage, which is the next leg of the approval process.

Though the crypto world is often seen as anti-establishment and opposed to government, Suarez doesn’t think the movement is at cross purposes with his administration.

“That’s why I jumped in on crypto, and that’s why there was such a crazy response, because [people] saw that government was not antithetical; government was not trying to kill it,” he said. “On the contrary…the city of Miami understands how fundamentally important it is to our future and how it could change the paradigm in the way people live their lives.”

He also talked a little bit about climate change and the prospect of rising sea levels challenging the city’s existence in coming years. Miami is a low-elevation city, and “dry day flooding” has become common in recent years.

“100% Miami still exists in 20 years,” he said, emphasizing the money and effort Miami is putting into resilience.

“I do recognize it as a threat. You know, you can’t just put your head in the sand and pretend like it’s not happening, it doesn’t exist. We’re one of the few cities in the world that is actually putting up significant amount of resources, $200 million from our Miami Forever Fund.” He added, “And now our challenge is to be the most water resistant city on the planet.”

Environment

Kia’s new Syros SUV is going electric as a low-cost Hyundai Inster EV twin

Published

51 mins ago

December 26, 2024

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Kia's new Syros SUV is going electric as a low-cost Hyundai Inster EV twin

Kia introduced its new Syros SUV last week. Although it was launched with a gas-powered engine, Kia plans to launch the all-electric version soon. The new Kia Syros EV will share underpinnings with the Hyundai Inster EV as its latest low-cost electric model.

What we know about the upcoming Kia Syros EV

India’s EV market is expected to surge over the next few years. In 2024, the India EV market is projected to be valued at around $24 billion. That number is expected to reach nearly $118 billion by 2032.

Kia is looking to take advantage of the transition. After launching its first vehicle (Seltos) in India in 2019, Kia is already one of the top 10 auto manufacturers in the region.

The Korean auto giant has added several models to its lineup, including the Sonet, Carnival, Caren, and electric EV6 and EV9 SUVs.

Just last week, the Kia Syros made its global debut. Kia calls the compact SUV “revolutionary,” but there’s one problem: it only has two gas-powered engine options. That will soon change. According to Autocar India, Kia will launch the Syros EV in India in early 2025.

Although no other details were confirmed, the Kia Syros EV will share its K1 platform with the Hyundai Inster EV. Hyundai’s compact electric crossover has two battery options, 42 kWh and 49 kWh, good for 300 km (186 mi) to 355 km (220 mi) range on the WLTP cycle.

In Europe, the Inster EV starts at around $30,000. In Korea, the electric crossover is known as the Casper Electric, and prices, including incentives, start around $20,000.

Hyundai-Casper-EV-Cross — Hyundai Casper Electric (Inster EV) models (Source: Hyundai)

Kia’s new electric SUV is expected to start in the price range of Rs 15 lakh-20 lakh (ex-showroom), or around $17,500 to $23,500.

Despite the difference in powertrain, the electric version is expected to have the same styling and features as the gas-powered models. Kia expects between 50,000 and 60,000 in sales between the upcoming electric Carens and Syros EV models by 2026.

The company is launching a series of more affordable, mass-market EVs globally, including the EV3, EV4, and EV5, to secure its spot in the industry as it shifts to electric vehicles.

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Environment

Hyundai’s all-solid-state EV batteries are on the verge of a major milestone

Published

3 hours ago

December 26, 2024

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Hyundai's all-solid-state EV batteries are on the verge of a major milestone

Hyundai is about to take the next steps as it preps to launch production of its “game-changing” all-solid-state batteries. The new EV battery tech promises a longer driving range, faster charging, and significantly higher energy density. Here’s what to expect.

When are Hyundai’s all-solid-state EV batteries coming?

Last June, Hyundai Motor CEO Chang Jae-hoon revealed a massive $7.3 billion (9.5 trillion won) investment to advance electric vehicle battery development over the next decade.

Hyundai plans to develop various EV batteries, including LFP, NCM, and all-solid-state, to cover a wide range of segments. According to sources familiar with the matter (via TheKoreanCarBlog), Hyundai’s all-solid-state EV batteries are about to hit a significant milestone.

On December 23, industry sources claimed Hyundai was almost done establishing an all-solid-state battery production demo line.

An official close to the project said the equipment for individual processes is almost complete. Now, only the logistics automation portion remains.

Hyundai plans to begin testing electric vehicles with all-solid-state batteries by 2025. By the end of the decade, mass production is scheduled to start.

The production line is at Hyundai’s Uiwang Research & Development Center in Korea. Hyundai has 22 joint research projects across four divisions, including lithium metal batteries, solid-state batteries, battery management systems, and battery process technology. Of these, 14 will be related to lithium metal and solid-state batteries.

Hyundai said the initiatives will “pave the way for South Korea to become one of the world’s leading battery technology houses.”

In September, Hyundai and Kia launched a joint project to develop a precursor for LFP battery cathode material for upcoming lower-priced EV models. Hyundai plans to launch EVs with LFP batteries developed in-house in 2025.

The news comes after Honda unveiled its all-solid-state battery demo production line just last month. Honda also plans to launch EVs powered by the new battery tech by 2030.

Hyundai-Casper-Electric — Hyundai Casper Electric, known as the Inster EV overseas (Source: Hyundai)

Factorial, which teamed up with Mercedes-Benz, announced its “Solstice” all-solid-state battery cells have been scaled to 40Ah capacity, a new milestone. With “breakthrough” energy density of up to 450 Wh/kg, Factorial claims its battery tech can boost EV range by up to 80%, or around 600 miles.

Electrek’s Take

With the promise of unlocking more range and faster charging at a much higher energy density, many carmakers and other companies are rushing to unlock all-solid-state EV batteries.

Global battery leaders like CATL, BYD, and Samsung SDI, as well as carmakers like Toyota, Mercedes-Benz, and Hyundai, are advancing the new technology. However, concerns over safety and manufacturing hurdles remain a challenge.

According to the latest SNE Research figures, China’s CATL remains the global EV battery leader with a commanding 36.8% share of the market through the first ten months of 2024. BYD was second with a 16.8% share, while Korea’s LG Energy placed third with an 11.8% share.

Will the next generation of EV batteries shake up the list? Hyundai hopes to make its mark with a new all-solid-sate EV battery production pilot line that will be coming online soon.

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Environment

BYD’s new EV plant in Brazil suddenly halted over ‘slavery’ worker conditions [Update]

Published

5 hours ago

December 26, 2024

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BYD's new EV plant in Brazil suddenly halted over 'slavery' worker conditions [Update]

Construction at BYD’s new EV plant in Brazil was suddenly halted Monday after authorities found Chinese workers in “slavery-like” conditions. The workers were hired in China by another firm, and BYD has since cut ties. BYD and the firm are now saying the term “slavery” was unjustly used, and some translations may have been misunderstood.

Why construction at BYD’s EV plant in Brazil is halted

Updated 12/26/24: This article has been updated with the latest information, including a statement from Jinjiang Group and comments from BYD’s general manager of public relations, Li Yunfei. Read more below.

According to a statement from the Public Ministry of Labor (MPT), 163 workers at the construction site of BYD’s new EV plant in Salvador, Brazil, were “being held in conditions analogous to slavery.”

Construction on the site was halted on Monday after the findings. According to the authorities, Jinjiang Group, one of the contractors BYD hired to build the new EV plant, hired the workers in China.

BYD released a statement saying it has cut ties with Jinjiang and is assisting the victims as it works with Brazilian authorities. All workers will be transferred to hotels. They will not be able to work and will have their contracts terminated.

Alexandre Baldy, senior vice president of BYD Brazil, said the company remains “committed to full compliance with Brazilian legislation, especially with regard to the protection of workers’ rights and human dignity.”

The MPT statement detailed the extreme “slavery-like” worker conditions. For example, they had one bathroom for every 31 workers, forcing them to wake up at 4 am to get in line to be ready for work at 5:30 am. They slept without mattresses on the bed, and the kitchens operated in “alarming conditions.”

If a worker quit after six months, they would leave the country without any pay after factoring in the cost of a round-trip airplane ticket.

BYD-Shark-Brazil — BYD Shark PHEV pickup (Source: BYD)

BYD said it has held a “detailed review” over the past few weeks. The Chinese EV giant asked Jinjiang several times to improve the conditions.

A joint virtual hearing of the MPT and MTE is scheduled for December 26. The MPT said the need for new “on-site inspections” has not been ruled out. BYD’s new EV plant is set to begin production next year. Check back soon for more updates on the situation.

Update 12/26/24: Jinjian Group said the portrayal of its employees working in “slavery-like” conditions was inconsistent, and some of the translations may have been misunderstood.

“Being unjustly labeled as ‘enslaved’ has made our employees feel that their dignity has been insulted and their human rights violated, seriously hurting the dignity of the Chinese people,” Jinjiang said in a social media post (via Reuters). The company issued a joint letter to issue an apology.

BYD’s general manager of public relations, Li Yunfei, reposted the statement. Li added that “foreign forces” and some other members of the media were “deliberately smearing Chinese brands.

Mao Ning, a spokesperson for China’s foreign ministry, said the Chinese embassy in Brazil was in talks with leaders in the region to verify the accusations.

BYD is already a top-selling EV brand in Brazil. In October, it launched its first pickup, the Shark PHEV. The pickup is BYD’s sixth vehicle in Brazil, joining other popular models like the Dolphin Mini (Seagull), Yuan Plus, and Dolphin.

Once up and running, which was expected later this year or early 2025, BYD’s Brazil plant will have an annual production capacity of 150,000 vehicles.

Source: Bloomberg, Brazil Public Ministry of Labor

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