As electric bicycles continue to grow in numbers in the US, so too have concerns over the safety of their lithium-ion battery packs. A new safety standard just passed in China may soon have a considerable impact on e-bike fire safety.
E-bike battery fires, while exceedingly rare, have become a major concern in the US with significant news coverage. NYC is often seen as the epicenter of e-bike battery fires due largely to the large population of e-bike delivery riders and the low-quality Chinese batteries used on such bikes. Delivery riders’ e-bikes usually feature inferior-quality batteries in order to reduce costs to their owners, who use them to perform low-wage delivery jobs.
Keeping the issue in perspective, more deaths in NYC are attributed to space heater fires each year than e-bike battery fires, but the rapid growth of e-bike use in the US means that fire safety will continue to be a growing concern.
With the vast majority of battery fires originating from poorly produced Chinese batteries designed for ultra-cheap e-bikes and e-scooters, it appears the Chinese government is attempting to address the issue head-on. The country just passed new technical standards for the production of lithium-ion batteries like those used in micromobility devices.
Known as the “Safety Technical Specification for Lithium-ion Batteries Used in Electric Bicycles,” the standards regulate the design, production, and sale of lithium-ion batteries for e-bikes.
The regulations specifically address technical concerns relating to production quality and fire risk, and cover 22 specific aspects of the batteries’ design and manufacturing. Issues addressed include battery over-charging and over-discharging, external short circuits, thermal abuse, battery punctures, and several more key areas.
Electric bicycle batteries at a Chinese factory, waiting to be installed in finished e-bikes
Enforcement of the new standard is expected to begin on November 1, 2024. After that date, no lithium-ion batteries for electric bicycles will be permitted for sale in the country without conforming to the new standard.
The standard currently only addresses the domestic market, which is much larger than China’s e-bike battery export market. There are an estimated 350 million e-bikes on the roads in China, with tens of millions produced each year. In fact, some major Chinese manufacturers alone produce tens of millions of e-bikes and e-scooters each year.
How could the Chinese standard impact US e-bikes?
The vast majority of US-based electric bicycles and their components originate in China. I’ve personally visited several such Chinese factories to see the scale of production that many of these massive suppliers have achieved.
The new Chinese e-bike battery standards are expected to change how electric bicycle batteries are produced in China. Many of the major suppliers of higher-quality batteries likely already meet or exceed the new standards, but the budget-priced batteries known for cutting corners in pursuit of lower costs will likely be weeded out by the regulations.
Unlike in the West, where penalties for breaching standards are often less severe, the Chinese government is more heavy-handed with its control over both private and state-related manufacturing businesses. While that comes with its own litany of issues, it also has the advantage of companies generally respecting and conforming to regulatory standards. That means it likely won’t take very long for battery manufacturers not already meeting these new safety standards to either upgrade their designs and manufacturing or else close down production and switch industries.
Importantly, it appears that the regulations will only apply to China’s domestic market, not products intended for export. However, with China’s market for e-bike batteries dwarfing the rest of the world, it likely won’t make sense for factories to maintain separate production lines and designs for a much smaller export market. Instead, this could very well be a case of a rising tide lifting all ships, where an increase in the manufacturing standards for local e-bike batteries means that export batteries will also come from the same improved production lines.
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This week on Electrek’s Wheel-E podcast, we discuss the most popular news stories from the world of electric bikes and other nontraditional electric vehicles. This time, that includes “70 MPH e-bikes” prompting new law changes, recalled Amazon/Walmart e-bikes, Vietnam banning gasoline-powered motorcycles, and more.
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Exxon Mobil reported second-quarter earnings on Friday that declined significantly compared to last year, though the company beat Wall Street estimates as production growth in the Permian Basin and Guyana softened the impact of lower oil prices.
Exxon’s net income fell 23% to $7.1 billion, or $1.64 per share, compared to $9.2 billion, or $2.14 per share, in the same period last year.
Here is what Exxon reported for the second quarter compared with what Wall Street was expecting, based on a survey of analysts by LSEG:
Earnings per share: $1.64 vs. $1.54 expected
Revenue: $81.5 billion vs. $80.77 billion expected
The oil major pumped 4.6 million barrels per day, the highest output for the second quarter since Exxon and Mobil merged more than 25 years ago. Production in the Permian hit a record 1.6 million bpd.
Exxon’s production business posted a profit of $5.4 billion, down 23% from about $7.1 billion in the same period last year on lower oil prices. Its refining business booked earnings of $1.37 billion globally, up 44% compared to $946 million in the year-ago period due to higher refining margins.
Exxon paid out $9.2 billion to shareholders, including more than $4 billion in dividends and $5 billion in share repurchases. The oil major said it’s on pace to purchase $20 billion of shares this year.
Exxon has slashed its costs by $1.4 billion so far this year and $13.5 billion since 2019. It is aiming to cut another $4.5 billion through the end of 2030.
This is a breaking news story. Please check back for updates.
Chevron on Friday reported second-quarter earnings that took a substantial hit due to low oil prices and a loss on its acquisition of Hess Corporation.
The oil major’s net income declined about 44% to $2.49 billion, or $1.45 per share, from $4.43 billion, or $2.43 per share, in the same period last year.
Chevron booked a $215 million loss on the fair value measurement of Hess shares. When adjusted for that charge and other one-time items, Chevron earned $1.77 per share to beat Wall Street estimates.
Here is what Chevron reported for the second quarter compared with what Wall Street was expecting, based on a survey of analysts by LSEG:
Earnings per share: $1.77 adjusted vs. $1.70 expected
Revenue: $44.82 billion vs. $43.82 billion expected
Chevron completed its acquisition of Hess on July 18, after prevailing against Exxon Mobil in a long-running dispute that threatened to blow up the $53 billion deal. An arbitration court rejected Exxon’s claim to a right of first refusal over lucrative Hess assets in Guyana, clearing the way for Chevron to complete the transaction after a long delay.
Chevron expects the deal to begin adding to earnings in the fourth quarter. It also hopes to reduce annual run-rate costs by $1 billion by the end of 2025.
Chevron pumped a record 3.4 million barrels per day worldwide for the quarter, a 3% increase over the same period last year. U.S. production jumped about 8% to 1.69 million bpd compared to the year-ago period, with production in the Permian Basin hitting 1 million bpd. The Hess acquisition will add assets in the Bakken formation and Gulf of Mexico in addition to Guyana.
Chevron’s production business posted a profit of $2.72 billion, down 38% from $4.47 billion in the same period last year due to lower oil prices. Its refining business booked earnings of $737 million, up 23% from $597 million last year on higher margins for product sales.
Chevron paid out $5.5 billion to shareholders in the quarter, including $2.6 billion in share buybacks and $2.9 billion in dividends.