LONDON — Euro zone inflation hit its highest level in 13 years in September, as the bloc battles surging energy costs.
Headline inflation came in at 3.4% last month, according to preliminary data from Europe’s statistics office Eurostat. This was the highest level since September 2008 when inflation stood at 3.6%. It comes after German consumer prices rose by 4.1% in September — the highest level in almost 30 years.
The rise has been driven higher by surging energy prices, deepening concern among policymakers. The front-month gas price at the Dutch TTF hub, a European benchmark, has risen almost 400% since the start of the year.
What’s more, this record run in energy prices is not expected to end any time soon, with energy analysts warning market nervousness is likely to persist throughout winter.
France has become the latest country to step up measures to mitigate the costs for consumers. Prime Minister Jean Castex said Thursday the government would be blocking further natural gas price increases as well as rises in electricity tariffs. However, before these measures kick in, gas prices will rise by 12.6% for French consumers as of Friday.
Italy, Greece and Spain have also taken steps to address the price increases.
Temporary?
Central bankers are of the opinion recent spikes in inflation are “transitory” and that price pressures will ease in 2022.
“We have been revising upward many of our projections in the last three quarters. Things have picked up faster and that is true for growth, that is true for inflation, and that is true for employment,” European Central Bank President Christine Lagarde told CNBC in September.
“So, in a way it is a package of good news because it means that our economies are responding.”
However, she added that energy price pressures were likely to outlast other inflationary factors, notably disruptions in supply chains.
“Energy is going to be a matter that will probably stay with us longer. Because we are transitioning, as well, from fossil industry driven sources of energy,” Lagarde said.
But some economists are questioning whether all of the price pressures are temporary — and if the central bank needs to adapt monetary policy more quickly.
“The recent surge will do very little to bridge the gap between the two inflation camps: one arguing that inflation drivers are transitory and that base effects will disappear or even reverse next year and the other seeing a broad risk of accelerating inflation. We remain somewhere in the middle,” Carsten Brzeski, global head of macro at ING Germany, said in a note on Thursday.
“Constantly higher inflation rates and a high risk that the ECB has actually entered a period in which its longer-term inflation forecasts frequently turn out to be too low, compared with too high in the years prior to the pandemic will put more pressure on how much monetary accommodation the euro zone economy really needs,” he added
Analysts expect the ECB to give more details about its monetary policy stance at a meeting in December. Its pandemic emergency purchase program, known as PEPP, is due to end in March and ECB watchers foresee a reduction in the level of purchases in the last months of the program.
“Even if inflation stays higher for longer, we still think the [European Central] Bank will stick to its dovish approach,” Andrew Kenningham, chief Europe economist at Capital Economics, said in a note Thursday.
That was more than 50,000 miles ago, and the car is still going strong!
Take a good look at that digital dashboard display up there, and you might notice the Hyundai IONIQ 5’s odometer is sitting pretty at 666,255 km. That’s over 413,990 miles, and the South Korean EV is, reportedly, still racking up miles — and fast! Over at the Facebook Group Mileage Impossible, the car’s owner claimed he covered all those miles in less than three-and-a-half years … which works out to just under 10,000 miles per month! (!!!)
Nearly 400 miles per day
Nearly 10,000 miles/mo.; via Mileage Impossible.
Like any vehicle being driven extreme miles, Hyundai’s excellent IONIQ 5 isn’t perfect. That means a bunch of stuff broke, including the car’s Integrated Charging Control Unit (ICCU), which means it can’t currently be charged on AC (L1/L2) charger. And, while electric cars don’t need oil changes, they do need other types maintenance, and the differential oils and brake fluids have been regularly changed on this car — which, no doubt, has contributed to its longevity.
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The most significant repair to date was the battery replacement at 360,000 miles (almost 55,000 miles ago, by my math). Remarkably, Hyundai covered the cost of the replacement despite the battery being way, way beyond its original 10 year/100,000 mile warranty.
The most impressive part of all this? Even after enduring 360,000 miles and countless fast-charging cycles, the battery reportedly retained 87% of its original health. (!)
Electrek’s Take
The caption reads, “free replacement of battery, motor, and reduction gear at 580,000 km.”
And now, with this 400,000 IONIQ 5, Hyundai has a shining example of the fact that its soon-to-be American-made EVs can go the distance.
Hyundai is still offering 0.99% APR financing for 60 months on all versions of the hot-selling 2025 IONIQ 5, as well as up to $7,500 in Retail Bonus Cash, which (when combined with other incentives in certain markets) can make a huge difference to customers’ bottom line. It doesn’t look like the two offers can be combined, however, so be sure to do the math and see which deal makes the most sense for you.
Porsche is launching a new EV battery recycling pilot to recover valuable raw materials from its cars’ high-voltage battery packs at the end of their useful life in vehicles. The new pilot hopes to develop a “closed-loop” raw material cycle that would have new batteries made from old batteries without the need for new, high carbon cost mineral mining.
With this new initiative, Porsche engineers hope to address the growing importance of recycled battery raw materials and promote the responsible handling of high-voltage batteries at the end of life.
In the long term, a recycling network for EV batteries is planned to be established in collaboration with external partners.
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“With the help of innovative recycling processes, we strive to increase our independence from volatile and geopolitically unstable raw material markets,” says Barbara Frenkel, Executive Board Member for Procurement at Porsche. “Circular Economy is a core pillar of our sustainability strategy, and with this pilot project, we want to underscore our ambitions.”
Three phase plan
“Second Life” concept uses EV batteries as backup power; via Porsche.
Porsche is advancing its commitment to sustainability by embracing the principles of, “reduce, reuse, recycle.” The company is developing more efficient electric vehicles with longer-lasting batteries, which are repurposed in “Second Life” Battery Energy Storage Systems (BESS) like the one implemented at its Leipzig plant (above). Now, through a new closed-loop recycling pilot, Porsche is emphasizing that “recycle” part by approaching the project in three phases.
In the first project phase, EV batteries from development vehicles are mechanically shredded at the end of their use-phase and processed into “black mass” that contains valuable raw materials like nickel, cobalt, manganese, and lithium. So far, the program has produced about 65 tons of processed black mass.
In the next phase, the black mass is further separated and refined until the materials reach both the levels of quality and purity Porsche demands from the “virgin” materials it buys for its new batteries.
In the third phase, Porsche takes the raw materials recovered from its decommissioned high-voltage batteries and makes new batteries with them, demonstrating Porsche’s, “holistic understanding of the circular economy.”
Porsche hopes its new pilot will help prepare the company for upcoming regulatory changes – for example, the expected requirements for batteries in the European Union by 2031. By adopting recycled materials early, the company says it intends to make an active contribution to the technology while further reducing its environmental impact.
New 5-passenger G30Es electric golf cart (right); via Yamaha.
Yamaha has announced plans to launch a pair of new five-seater electric golf carts featuring new lithium-ion batteries and vehicle control units developed in-house this June. The launch is scheduled to coincide with the company’s 50 year anniversary in the golf car/golf cart business.
Yamaha Motor launched its first golf cart, the YG292 “Land Car,” in June 1975. That original golf cart was powered by the company’s air-cooled, 292cc 2-stroke snowmobile engine, while its fiber-reinforced plastic (FRP) composite bodywork was developed using the companies maritime and boat-building expertise.
The in-house developed batteries use lithium iron phosphate (LFP) chemistry in their cells, with the company claiming higher levels of reliability and an extended lifespan compared to other battery chemistries it’s worked with. The Yamaha batteries are available in both 4 kWh and 6 kWh capacities, enabling buyers to tailor their choice based on their individual driving range requirements, course conditions, and individual play/mobility preferences.
Both new models are 144.5″ (367 cm) long and 49.5″ (125 cm) wide, with an 84.25″ (214 cm) wheelbase, and are powered by an AC motor with, “superior speed and torque control, combined with optimized regenerative braking and a brushless design,” that, according to Yamaha, give the brand’s new golf carts far greater efficiency than the company’s previous models, resulting in 30% better efficiency.
You can check out more detailed pictures of the Yamaha-developed parts and full specs, below, then let us know what you think of the tuning fork brand’s newest mobility products in the comments.