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Right now, the FAA is taking public comments for SpaceX’s environmental review of the upcoming Starship Orbital launch. While I generally support space exploration and hope SpaceX succeeds, it’s important to consider the environmental impacts of space activities and find ways to reasonably minimize the environmental impacts.

The Use of Methane For Rockets Is Mostly Defensible

From an environmental perspective, a rocket should be powered by hydrogen. Burning hydrogen combines hydrogen with oxygen from the atmosphere, producing only water vapor in the exhaust. The water vapor harmlessly diffuses in the atmosphere, and doesn’t contribute to climate change or any other environmental harms. Hydrogen rockets are also a proven technology that took the United States to the moon, so it’s entirely possible to use hydrogen for space launches.

But hydrogen does have some serious drawbacks.

Being a small molecule, it’s very difficult and expensive to make sure a rocket doesn’t simply leak its fuel out. Every weld must be absolutely perfect. Every seam must be carefully sealed. All joints and fittings from tanks to engines must have perfect seals. All of that need for perfection means a lot more work, expense, and even danger.

The second problem with hydrogen is that it makes metal more brittle. This again drives up the cost of safely building a hydrogen rocket. Other problems include the low energy density compared to other fuels, temperature control, expense, and complexity of the systems needed to handle it properly. It’s also not easy to produce on Mars, so it wouldn’t be suitable for a Mars colony.

Methane (the purest form of “natural” gas) is the next best thing. It does produce carbon dioxide when it’s burned, but that’s basically all it produces (other than water vapor, like any combustion reaction). Unlike RP-1 or other rocket fuels, it does contribute some to greenhouse gases, but doesn’t spew out other pollutants.

Given the costs of hydrogen and the fact that methane is only a little worse, going with methane was the obvious choice, even if not perfect for the environment.

All The Methane Has To Come From Somewhere, Though

While assessing environmental impacts, the FAA didn’t factor one thing in: the source of the natural gas that would feed SpaceX’s Starbase.

The obvious thing they’ll need natural gas for is the rockets. For those unfamiliar, natural gas is mostly methane, and while it’s good enough for things like furnaces and power plants, the gas that’s normally in pipes just isn’t pure enough for use in rockets. So SpaceX needs a facility to take natural gas in, purify it, and then cool it down until it changes to a liquid state. Then, it’ll be ready to pump into a rocket’s tank and use for launches.

But they didn’t mention the source of all this natural gas in the report. Theoretically, they could truck the natural gas in using tanker trailers, but that would be expensive, cumbersome, and would take a LOT of trucks. The other, more reasonable, option would be to reactivate a natural gas pipeline that runs through the Lower Rio Grande Valley National Wildlife Refuge. The pipeline, which was abandoned in 2016, is currently holding fiberoptic cables for a local educational institution.

So, SpaceX may still be able to use the pipeline, or it may have to build a new one.

The other thing that hasn’t been considered in the report is that the gas has to get put in the pipeline from somewhere, and the areas near Brownsville just don’t produce enough gas to feed the needs of  SpaceX at Starbase, so more gas will be needed from at least 80 miles away. That means more wells, more pipelines, and more environmental impact that isn’t currently being considered.

SpaceX Is Also Building a 250-Megawatt Gas Power Plant

Getting methane for rockets would probably be something the nearby wells could supply, with minimal gas needs from elsewhere in the state, and that would be reasonable. But, add the needed fuel for a 250-megawatt power plant that runs on natural gas, and you end up in the situation described above. There just isn’t enough local gas to power the rockets plus a big power plant.

According to TechCrunch and ESG Hound (both linked above), the power plant will be needed to power a desalination plant to provide for Starbase’s water needs, as well as to provide for the base’s other electrical needs.

Desalination makes sense, given the limited water supplies in the area and the abundance of salt water, but the equipment to do that isn’t picky about where its electrons come from. Whether it comes from natural gas, or comes from wind and solar, as long as the power keeps coming in, they’ll be able to produce the needed water.

So, Why Isn’t SpaceX Using Renewables?

Given that the company is already planning on piping in gas, and getting more gas is relatively cheap, it’s probably the cheapest solution overall.

But, really, south Texas has great solar resources.

Image provided by the National Renewable Energy Laboratory (NREL). Public Domain.

Sure, it’s not as red hot as it is in El Paso, but Brownsville still has better quality sunlight for solar power production than most of the country. There’s not much in the way of excuse to not build a big solar power plant with storage to supply the desalination plant’s needs, as well as other needs at Starbase. You probably couldn’t build a plant that big right next to Starbase, but you could find some vacant land in the region to supply enough power.

Brownsville only has 223 sunny days per year, which could make an issue, but there’s no reason to not go further away in Texas for power. El Paso and other parts of far west Texas, as close as Big Bend, have over 300 sunny days per year.

Getting the power from the vacant land to Starbase, whether from nearby or farther away, is an issue, but so is the issue of building pipelines. If you can build pipelines, then you can build power lines. Plus, power lines don’t leak and cause other environmental harms the way that gas lines do.

The cost of doing 250 megawatts of solar is probably higher than 250 megawatts of gas, but it doesn’t make sense to be trying to save the species with Tesla and then turn around and burn natural gas for SpaceX’s space colonization efforts.

 

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Lucid’s (LCID) Gravity SUV has ‘so many orders’ it’s extending the $7,500 EV tax credit

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Lucid's (LCID) Gravity SUV has 'so many orders' it's extending the ,500 EV tax credit

Lucid Motors (LCID) will continue offering the $7,500 federal EV tax credit for Gravity buyers until the end of the year. Lucid’s interim CEO, Marc Winterhoff, said the electric SUV has “so many orders” and it doesn’t want buyers to lose out on the savings.

Are orders for Lucid’s Gravity SUV picking up?

Apparently, demand for Lucid’s new Gravity SUV is picking up. A recent Automotive News report claimed that Lucid registered just nine Gravity models in its first six months on the market, but the company was quick to shut down the rumors.

Lucid’s communication boss, Nick Twork, told Electrek in an email that the report was “completely inaccurate,” adding “a quick review of social media postings from our customers shows that those numbers are simply not credible.”

According to Twork, Gravity deliveries are “well into the 3-digit range.” In the second half of the year, Lucid expects the SUV to account for the majority of deliveries and production.

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Winterhoff confirmed on Lucid’s second-quarter earnings call that production of the Gravity SUV was “beginning to ramp up” after resolving most of the supply chain issues that had limited output in the first half of the year.

Lucid's-Gravity-SUV-orders
Lucid Gravity Grand Touring in Aurora Green (Source: Lucid)

Since it started offering test drives while adding Gravity models to its studios, Lucid’s interim CEO said the daily order rate for the electric SUV has nearly doubled.

During a new interview with Brew Markets on Tuesday, Winterhoff suggested that the Gravity is quickly attracting buyers. Lucid’s chief confirmed it will honor the $7,500 federal EV tax credit for Gravity buyers until the end of the year “because we have so many orders and we don’t want to tell order holders, you know what, you’re out of luck, we didn’t deliver in time.”

Lucid-Gravity-SUV-orders
The Lucid Gravity (Source: Lucid)

Winterhoff also said that Lucid expects a limited impact on sales from the loss of the credit due to its market position and pricing.

Lucid views the German luxury brands, including Mercedes, BMW, and Audi, as its primary competitors. Although it does view Tesla as a competitor, “we see ourselves a little bit of a notch higher than Tesla,” Winterhoff said, when comparing the interior, materials, and luxury.

Lucid's-Gravity-SUV-orders
The interior of the Lucid Gravity (Source: Lucid Group)

Despite several luxury brands recently pulling back on their electrification plans, like Porsche, Lucid will remain a pure EV company and still believes electrification is the future.

Lucid’s vehicles currently start in the $70,000 to $80,000 range, but the company is working on launching its midsize platform in late 2026, which will bring the price down to around $50,000. The midsize platform will wear at least three “top hats,” including a crossover SUV, a more rugged variant, and a third, rumoured to be a midsize sedan aimed at the Tesla Model 3.

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Trump wants a stake in Nevada’s upcoming lithium mine

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Trump wants a stake in Nevada's upcoming lithium mine

The Trump administration is seeking to acquire a 10% stake in Nevada’s upcoming lithium mine, operated by Lithium Americas (LAC).

Lithium Americas (LAC) has a flagship lithium mining project, Thacker Pass, located in Nevada.

With the Biden administration, the company had secured a $2.26 billion government loan to advance the project to production. However, since taking office, Trump has been attempting to claw back many loans related to the energy transition.

Last night, reports began to circulate about the Trump administration attempting to renegotiate the terms of the loans to include a 10% stake in the project.

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It sent LAC’s stock surging by as much as 80% in after-hours trading.

The reports forced the company to issue a comment. Lithium Americas confirmed being “in discussions” with both the Department of Energy, which issued the loan, and General Motors, which holds a 38% stake in the company and a right to buy the lithium from the mine, about drawing from the loan:

The Company is in discussions with the DOE and General Motors Holdings LLC (“GM”), its joint venture partner in the Thacker Pass lithium project (“Thacker Pass” or the “Project”), regarding first draw on the DOE Loan. The topics of these discussions include certain conditions precedent to draw on the DOE Loan and associated loan specifics, as well as incremental requests from the DOE for potential further conditions to first draw and/or potential amendments to the DOE Loan and associated transaction documents, including corresponding consideration. The Company continues to work with the DOE and GM regarding proposals for a mutually agreeable resolution.

This would be the latest example of the Trump administration taking direct stakes in companies and using “national security” as the reason.

Electrek’s Take

The Biden administration was attempting to establish a North American battery supply chain, but Trump has significantly hindered that effort over the last few months.

However, this is a good move.

The loan would have likely worked as well, but direct ownership is essentially how China operates, and it has worked out quite well for them. There’s a word for this, but Trump’s base hates it.

My main issue with how Trump is doing these market-moving announcements and leaks looks a hell of a lot like insider trading.

Even with this move on LAC, there was suspicious short-term option trading on the stock leading up to this.

The US is in its era of grifters.

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Lithium Americas soars 100% as Trump administration seeks equity stake in Canadian miner

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Lithium Americas soars 100% as Trump administration seeks equity stake in Canadian miner

A Lithium Americas worker processes lithium at the company’s Reno, Nevada R&D lab.

Lithium Americas stock doubled Wednesday as the Trump administration is seeking an equity stake in the mining company, which is based in Vancouver, British Columbia.

The White House proposed the equity stake as Lithium Americas renegotiates the terms of a $2.2 billion loan from the Department of Energy for its Thacker Pass mine in Nevada, a Trump administration official told CNBC. Reuters first reported the equity stake proposal.

Lithium Americas’ shares hit a session high of $6.23, up more than 100% over Tuesday’s close of $3.07. The miner has a market cap of about $1.5 billion.

It is the latest move by the White House to take direct ownership in the mineral supply chain critical to U.S. interests, but the first such stake proposed for a Canadian company. Lithium Americas trades on both the Toronto Stock Exchange and the NYSE but is incorporated and domiciled in Canada.

The Department of Defense took a 15% equity stake in rare earth miner MP Materials in July. Shares of Las Vegas-based MP Materials have more than doubled since the deal.

Thacker Pass in northern Nevada is expected to become one of the largest sources of lithium in North America with the first phase of the project scheduled to start operations in late 2027. The project is a joint venture between Lithium Americas and General Motors.

Lithium Americas has a 62% stake and operates the mine. GM has a 38% stake and has agreed to buy offtake from the mine when it is operational. Lithium is a critical material for electric vehicle batteries.

Lithium Americas and GM had to renegotiate the terms of the loan for Thacker Pass because they did not meet the conditions for the first disbursement, the Trump administration official said. During negotiations with the Department of Energy, they requested to push out part of the loan repayment into later years, the official said.

“If we’re going to push out part of the repayment into later years, then the administration would like a very small stake of equity to create essentially a cash buffer and eliminate some risk on behalf of taxpayers,” the official said.

A deal has not been finalized but the Trump administration supports the project and the discussions are positive, the official said. The investment could need Canadian approval as well given the company’s jurisdiction.

Lithium Americas confirmed Wednesday that it is in talks with the Energy Department and GM on the loan for Thacker Pass. GM declined CNBC’s request for comment.

Interior Secretary Doug Burgum revealed in April that the Trump administration was considering taking equity stakes in miners to back them against state-sponsored competition in China.

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