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EV start-up Faraday Future (FFIE) inches one step closer to finally launching its flagship EV, the FF 91, after announcing Monday it has reached an agreement to resolve an ongoing dispute with its largest shareholder to fund production.

Faraday Future continues raising money for FF 91 launch

Faraday Future has faced endless delays as it prepares to begin production of its first electric vehicle, the FF 91. It’s been an uphill battle, to say the least.

The LA-based EV start-up has consistently pushed back launch dates as it seeks additional funding to keep the business alive. Faraday Future first claimed it would begin production of the FF 91 in 2018, and we still have yet to see the launch.

Ever since then, it’s been one hurdle after another for Faraday Future. The company has lost a few top executives to other EV start-ups and has been raising funds to keep the business alive for what seems like forever now.

In the company’s Q2 earnings, Faraday Future reported an operating loss of $137 million, up almost 400% from 2021, and $121 million in cash. However, the EV start-up noted it would need to raise $325 million in capital to continue operations with projected cash use of $368 million through the end of this year. It also said it would need additional funds to keep the business running by September.

The struggle has led some of Faraday Future’s top investors to question the company’s motive. Last week, the dispute peaked as FF Top Holding, Faraday Future’s largest shareholder, sued the EV start-up, citing that the company is “suffering from a crisis of leadership at the board level” and calling for several board members to be replaced.

Faraday Future has, nonetheless, kept the dream alive, insisting the FF 91 will begin production by the end of 2022. With Faraday Future resolving the monthslong dispute, the company has up to $100 million in new financing. Will we finally see the FF 91 hit the production line?

Faraday-Future-dispute-1
Faraday Future FF 91 Source: Faraday Future

Faraday Future settles dispute with new funding, board shake-up

Faraday Future announced it has agreed with FF Top Holding, according to a new 8K filing, to resolve the ongoing dispute, which includes new financing and the removal of two board directors.

As part of the agreement, the following changes will take place to Faraday’s board:

  • Brian Krolicki will step down as director.
  • Sue Swenson will step down as executive chair.
  • Faraday Future’s board has been expanded from nine to ten, with Adam He joining.

In addition, Faraday says it will receive $40 million in near-term funding from convertible notes and another $60 million from Senyun International (a subsidiary of Daguan International).

FF Top Holding will drop the lawsuit as a result. A spokesperson from FF Top stated:

FF Top is glad that a resolution has been reached. We look forward to this opportunity for a new start and brighter future for FFIE, and to all parties performing their obligations under the governance agreement, to achieve the best interests of Faraday Future and all shareholders.

Meanwhile, Dr. Carsten Breitfeld, Faraday Future’s CEO talks of the milestone, claiming:

The resolution of governance and related issues with our largest shareholder is a major accomplishment and an important step forward for Faraday Future and all our stakeholders. We can now focus our effort on building the FF 91. We appreciate all parties’ efforts in reaching this agreement.

Electrek’s Take

With another round of funding, will the FF 91 see the light of day? That’s what Faraday Future claims. Although we have heard this many times before, there’s reason to believe this time may be different.

With FF Top getting its way and removing two board members, the investing group may be more willing to work with the EV start-up. Faraday still says production will begin in the fourth quarter of this year. Should we believe them? I wouldn’t keep my fingers crossed, but the company is in a better position now with a new capital injection. More importantly, it isn’t wasting time and resources defending itself in court against its largest investor.

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Stanford scientists figured out why lithium metal batteries fail

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Stanford scientists figured out why lithium metal batteries fail

Researchers at Stanford University and the US Department of Energy’s SLAC National Accelerator Laboratory have identified what causes lithium metal batteries to short-circuit and fail – and this could help avoid the problem in future battery production.

As a result of this discovery, energy-dense, fast-charging, nonflammable lithium metal batteries that last a long time could overcome the main barriers to their use in EVs, among other benefits.

Lithium metal batteries with solid electrolytes are lightweight, inflammable, pack a lot of energy, and can be recharged very quickly. There’s just been a short-circuiting problem that causes them to fail.

But researchers appear to have pinpointed the problem. In a paper published in the journal Nature Energy, titled, “Mechanical regulation of lithium intrusion probability in garnet solid electrolytes,” researchers cited mechanical stress, especially during potent recharging, to be the cause of failure.

Senior author William Chueh explains:

Just modest indentation, bending or twisting of the batteries can cause nanoscopic fissures in the materials to open and lithium to intrude into the solid electrolyte, causing it to short circuit.

Even dust or other impurities introduced in manufacturing can generate enough stress to cause failure.

This artist’s rendition shows one probe bending from applied pressure, causing a fracture in the solid electrolyte, which is filling with lithium. On the right, the probe is not pressing against the electrolyte and the lithium plates on the ceramic surface, as desired. (Image credit: Cube3D)

Colead author Xin Xu likened it to the way a pothole appears in pavement. Through rain and snow, car tires pound water into the tiny, preexisting imperfections in the pavement, producing ever-widening cracks that grow over time.

Xu said:

Lithium is actually a soft material, but, like the water in the pothole analogy, all it takes is pressure to widen the gap and cause a failure.

So the researchers are now looking at ways to use these very same mechanical forces to toughen the material during manufacturing, much like a blacksmith anneals a blade during production. They’re also looking at ways to coat the electrolyte surface to prevent cracks or repair them if they emerge.

Scientists around the world working to develop new solid electrolyte rechargeable batteries can design around the problem, or even turn the discovery to their advantage, as scientists at Stanford are now researching. 

Main image section: Cube3D

Read more: Porsche to design 3D-printed battery gigafactories for Sakuu


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Arrival (ARVL) names new CEO but cuts staff in half as it fights to reach Van production in US

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Arrival (ARVL) names new CEO but cuts staff in half as it fights to reach Van production in US

The woes continue for commercial EV start-up Arrival, which hopes an internal promotion of a new CEO can help get its all-electric Van into US production as part of a business strategy pivot to cut costs. Arrival is still struggling with capital, however, as it also shared plans to reduce its current staff by 50% to further cut costs and stay afloat. Here’s the latest.

Arrival ($ARVL) is an EV start-up focused on delivering urban-centric mobility, particularly its last-mile Arrival Van, although the start-up was originally also developing an all-electric passenger bus and a rideshare-specific Arrival Car designed alongside Uber.

Since going public via an SPAC merger in March of 2021, the start-up’s stock value has dwindled, leading to an announcement last summer that it would be reorganizing its business to focus solely on Arrival Van production, halting Bus and Car development.

By October, Arrival announced it was pivoting its EV business once again, shifting its focus to US production after citing significant costs to scale overseas and a less-than-stellar at-the-market (ATM) platform.

What was more concerning was Arrival’s cutting of “cash-intensive activities,” which included staff salaries. With a refocused aim on US Van production, Arrival shared that its new strategy would, unfortunately, have “a sizable impact on the company’s global workforce, predominantly in the UK.”

By November, Arrival president and chief of strategy Avinash Rugoobur resigned for personal reasons, and CEO Denis Sverdlov stepped down into a new role as chair of the board. Peter Cuneo has been in place as Arrival’s interim CEO since.

Today, Arrival has announced a new chief taking the reins, but with even more job cuts to follow as the start-up looks to further lean down in order to reach a start of US Van production.

Arrival Van
The Arrival Van, which will (hopefully) be manufactured at the start-up’s North Carolina microfactory / Source: Arrival

Arrival Van to arrive in 2024 but will need additional capital

This morning, Arrival shared that its former EVP of digital Igor Torgov will take over as company CEO today, following a unanimous vote from the board. In addition to his time at Arrival, Torgov has held leadership positions at Atol, Bitfury, and Microsoft. He commented on his new role:

Accepting this important role at a critical point in Arrival’s journey is a significant responsibility. Arrival has developed unique technologies in a market that has huge growth potential and can play a key role in addressing climate change. To unlock these opportunities, we need to make difficult decisions and to take swift action. Following a detailed evaluation of Arrival and the wider EV market during the past two months, the leadership team and the Board have taken decisive action to ensure the most effective use of our current resources and optimize the efficiency of the business. The actions support our journey to become a champion in innovative products and new, more efficient methods of vehicle production, particularly in the important US market for commercial electric vehicles. We are keenly aware that these decisions, while necessary, will have a profound impact on a significant number of our colleagues. We are 100% committed to supporting our employees during this difficult process.

A difficult process indeed.

As the new CEO, Torgov’s first task following the aforementioned company evaluation is to cut its current staff of 1,600 by half. By combining those significant job cuts with “reductions in real estate and third-party spending,” Arrival expects to also halve its operational costs down to about $30 million per quarter as it continues to try and begin scaled Van production.

As of December 31, 2022, Arrival had just $205 million in cash on hand. Arrival’s stock has sat well below $1 per share for months now, triggering a noncompliance letter from the Nasdaq Stock Market LLC this past November. Arrival has until May to once again eclipse $1 per share, or it will be delisted.

Arrival said it will share more details of its 2023 business plan during its 2022 full-year business update in March, including its financial outlook and product milestones for the Arrival Van. The start-up reiterated that it intends to start Van production in Charlotte, North Carolina, in 2024 but admits that goal remains subject to raising additional capital.

It’s hard out here for an EV start-up these days, and Mr. Torgov certainly has his work cut out for him.

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World’s first semi-submersible floating offshore wind farm blows past expectations

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World's first semi-submersible floating offshore wind farm blows past expectations

WindFloat Atlantic – the world’s first semi-submersible floating offshore wind farm – has been online for two years, and it’s far exceeding power output expectations.

The 25 megawatt (MW) WindFloat Atlantic project ended 2022 with an electricity production of 78 gigawatt hours (GWh) – 5% more output than its first year. It supplies power to more than 25,000 households and avoids 33,000 tonnes of carbon dioxide. Its annual availability was between 93-94%.

The offshore wind farm sits 20 km off the coast of Portugal in the municipality of Viana do Castelo, north of Porto. It’s made up of three 8.4 MW Vestas wind turbines that sit on semi-submersible, three-column floating platforms anchored by chains to the seabed. A 20 km long (12.4 mile long) cable connects it to an onshore substation.

WindFloat Atlantic was connected to the grid at the end of 2019 and commissioned in 2020, and it’s now finished its full second year in operation. It has an operations and maintenance base in the port of Viana do Castelo, where the team receives the wind farm’s information in real time so can address any issues that arise in real time. Onsite intervention can be complex, due to adverse weather and sea conditions in the area where it’s sited.

It’s a joint venture between Spanish renewable company EDPR, global energy firm ENGIE, Spanish energy firm Repsol, and California-headquartered floating offshore wind firm Principle Power.

Principle Power, which also worked on Scotland’s Kincardine, the world’s largest floating offshore wind farm, says on its website that the “WindFloat” technology is compatible with any standard offshore wind turbine and can be deployed in waters deeper than 40 m (131 feet).

So, what makes semi-submersible floating offshore wind unique? Here’s what Principle Power says:

The WindFloat has been developed specifically to achieve exceptional stability performance, while reducing structural weight, and simplifying logistics during installation and operation.

The virtual pitch- and yaw-free performance in the offshore environment allows the use of existing commercial offshore wind turbines, located at one of the columns, with only minor modifications to control software. 

Photo: Principle Power


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