Workers photographed on top of a train loaded with coal in China. Global use of coal is projected to increase by 1.2% this year and hit a record high, according to the International Energy Agency.
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Global coal use is on course to increase by 1.2% to hit a record high this year, according to a report from the International Energy Agency.
It comes at a time of significant volatility and uncertainty in global energy markets, with the IEA stating that Russia’s invasion of Ukraine in Feb. 2022 had “sharply altered the dynamics of coal trade, price levels, and supply and demand patterns in 2022.”
“Coal markets have been shaken severely in 2022, with traditional trade flows disrupted, prices soaring and demand set to grow by 1.2%, reaching an all-time high and surpassing 8 billion metric tons for the first time,” the IEA said in its Coal 2022 report, published Dec. 16.
The price of fossil fuels saw a substantial jump this year, the agency said, “with natural gas showing the sharpest increase.”
“This has prompted a wave of fuel switching away from gas, pushing up demand for more price competitive options, including coal in some regions,” it added.
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Despite the increase in coal demand, the picture is a complex one. The IEA noted that “higher coal prices, strong deployment of renewables and energy efficiency, and weakening global economic growth are tempering the increase in overall coal demand this year.”
It said that coal use in electricity generation was set to rise by a little over 2% this year. Coal usage in industry is actually slated to fall by more than 1%, with this decline attributed to lower steel and iron production.
“The world is close to a peak in fossil fuel use, with coal set to be the first to decline, but we are not there yet,” IEA Director of Energy Markets and Security Keisuke Sadamori said in a statement. “Coal demand is stubborn and will likely reach an all-time high this year, pushing up global emissions.”
“At the same time, there are many signs that today’s crisis is accelerating the deployment of renewables, energy efficiency and heat pumps — and this will moderate coal demand in the coming years,” he added.
Government policies would be “key to ensuring a secure and sustainable path forward,” he said.
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Coal use has a substantial impact on the environment, with environmental organization Greenpeace describing it as “the dirtiest, most polluting way of producing energy.”
The debate around coal and its continued use remains charged. Just this month, plans for a deep coal mine in the northwest of England were given the green light by the U.K. government, in a decision that earned both endorsement and criticism.
Uncertainty ahead
The IEA report painted a picture of uncertainty moving forward.
It forecast global coal demand plateauing near the 2022 level of 8 billion metric tons through 2025, but noted that “given the current energy crisis with all its uncertainties, a lurch into growth or contraction is possible.”
Russia was the biggest supplier of natural gas and petroleum oils to the European Union in 2021, according to Eurostat. EU-bound exports of Russian gas have slid this year, prompting major European economies to make efforts to shore up supplies for the colder months.
Volvo CE arrived at bauma 2025 in Munich, Germany with a groundbreaking (Ha!) electric line of heavy equipment options that includes the new A30 Electric articulated haul truck – a world’s first from the Swedish equipment brand!
Volvo CE is calling its bauma display a milestone moment in sustainable innovation, raising the bar with its first-ever zero-emission only lineup at the Munich-based show.
The star of the show, hoever, is the game-changing reveal of the never-before-seen A30 Electric articulated hauler, representing the first vehicle of its kind in what is both a key industrial segment for Volvo and a world’s first for a series production BEV in its class.
“This zero-emission lineup is a marker of our commitment to drive change,” explains Melker Jernberg, President of Volvo CE. “Together with our pioneering service, solutions and updated portfolio of conventional machine variants, we show that we stand alongside our customers to support them across every stage of their journey. We show that we are committed to our ambitions, not just because we can, but because it is the right thing to do.”
60-years since Volvo revolutionised the construction industry with the launch of Gravel Charlie, the world’s first articulated hauler, Volvo now brings its latest game-changing articulated hauler solution to the market: the A30 Electric – the world’s first battery powered articulated hauler in its class. Fully electric and zero-emissions – contributing to a significant reduction in energy costs and maintenance – the A30 Electric delivers all the unrivalled off-road performance, operator comfort and durability you expect from Volvo, ready to bring electrified hauling to a range of segments including quarrying, mining and construction.
The new Volvo A30 Electric offers a 64,000 lb. (32 ton)/23.3 cubic yard payload capacity and “full day” operation thanks to its 245 kWh li-ion battery.
In addition to the new A30 Electric haul truck, Volvo CE brought a number of new or updated models to the show. All of the equipment assets, as well as Volvo’s brand-agnostic telematics and fleet management solution, Site Operarions, can be experienced at Volvo CE’s interactive Solutions Bar all this week at bauma Munich.
Volvo CE at bauma 2025
Volvo EWR150 Electric wheeled excavator; via Volvo CE.
Tesla has stopped taking orders for its Model S and Model X flagship electric vehicles in China – seemingly in reaction to new tariffs.
In China, Tesla produces Model 3 and Model Y vehicles locally at Gigafactory Shanghai for the domestic market and some exports.
Model S and Model X are exclusively produced in the US at Tesla’s Fremont factory in California. The automaker imported the vehicles from the US into China.
Amid President Trump’s new trade wars, the US is now imposing 145% tariffs on all Chinese goods, and China responded by implementing 84% tariffs on US goods, including vehicles.
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This would almost double the cost of US vehicles imported in China, including Tesla’s Model S and Model X.
In the middle of the night, Tesla shut down its Model S and Model X online configurations in China – meaning that Chinese customers can’t place new orders for the electric vehicles.
This isn’t expected to significantly impact Tesla’s business, considering the automaker delivered just over 2,000 Model S and Model X vehicles in China in 2024.
Tesla is still selling what it has in inventory already in China. Still, after a quick inventory check, it appears to have very low new Model S inventory and virtually no Model X.
Electrek’s Take
One of the first victims of the trade war in the EV space. It kills a relatively small market of about 2,000 vehicles for Tesla in China, but those are profitable vehicles, which is not the case for most vehicles Tesla sells in the country these days.
90% of the vehicles Tesla delivers in China are Model 3 and Model Y RWD, which are low-margin vehicles that Tesla has to subsidize 0% financing on to move. It results in the automaker making little to no profit on those vehicles.
In the case of Model S/X in China, we are only talking about roughly $170 million in potential lost revenue for Tesla, but at least the company was making some profits on those.
As we previously reported, Tesla’s biggest concerns amid this trade war are the tariffs on Chinese battery cells entering the US, which support its Megapack and Powerwall energy business, and Chinese buyers turning away from American brands.
If the trade war with China escalates even more, Tesla could even start worrying about the status of its factory in Shanghai, which is a rare auto factory wholly owned by a foreign automaker in China.
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Lucid Gravity Grand Touring in Aurora Green (Source: Lucid)
Lucid Motors has announced that it acquired some of Nikola Motor’s assets out of its bankruptcy, including its factory, and it will offer jobs to over 300 of its employees.
Now, Lucid Motors, an electric vehicle manufacturer, has announced that it purchased some of Nikola’s assets out of a bankruptcy auction.
The company wrote in a press release:
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Lucid Group, Inc. (Nasdaq: LCID), maker of the world’s most advanced electric vehicles, today announced it has reached an agreement to acquire select facilities and assets in Arizona previously belonging to Nikola Corporation, subject to approval by the U.S. Bankruptcy Court for the District of Delaware. The transaction does not include the acquisition of Nikola’s business, customer base, or technology related to Nikola’s hydrogen fuel cell electric trucks.
In Arizona, Lucid’s Casa Grande factory, where it produces the Air and Gravity EVs, is only about 25 minutes away from Nikola’s Coolidge factory, where it used to assemble its trucks.
Lucid confirmed that it is taking over this facility and Nikola’s headquarters in nearby Phoenix:
As part of the agreement, Lucid will take over Nikola’s former Coolidge manufacturing facility (680 E Houser Rd, Coolidge, AZ), as well as the Phoenix facility (4141 E Broadway Rd, Phoenix, AZ) previously used as Nikola’s headquarters and product development center. These buildings collectively add more than 884,000 square feet to Lucid’s Arizona footprint. Most of this space is comprised of state-of-the-art manufacturing and warehousing buildings, which executes against Lucid’s prior planned expansion in Arizona. These facilities also include development equipment with extensive battery and environmental testing chambers, a full-size chassis dynamometer, machining equipment, and more.
The deal is valued at $30 million in cash and non-cash considerations.
As it takes over those facilities, Lucid plans to offer “more than 300 former Nikola employees” jobs in Arizona:
Additionally, Lucid plans to offer employment to more than 300 former Nikola employees in roles across Lucid’s Arizona facilities. These offers will encompass various technical salaried and hourly positions including manufacturing engineering, software, assembly, vehicle testing, and warehouse support as Lucid welcomes employees with strong backgrounds in EV technology and further supports its local community.
Marc Winterhoff, Interim CEO at Lucid, commented on the announcement and hinted that the new facilities and workforce would help Lucid toward bringing its next vehicle platform to production:
“As we continue our production ramp of Lucid Gravity and prepare for our upcoming midsize platform vehicles, acquiring these assets is an opportunity to strategically expand our manufacturing, warehousing, testing, and development facilities while supporting our local Arizona community. We are delighted to extend employment offers to more than 300 former employees, who bring valuable industry experience, and together with our outstanding teams, will continue powering Lucid’s industry-leading innovation.”
Lucid is mainly known for the Air, a super-efficient and long-range electric luxury sedan, and it recently launched the Gravity, an SUV based on the same platform.
Now, it plans to develop a new vehicle platform to deliver smaller and cheaper vehicles.
Electrek’s Take
This makes sense. While Lucid has a lot of operations in California, they were neighbors in Arizona when it came to manufacturing operations.
It may be able to utilize some of Nikola’s manufacturing equipment and quickly put the former Nikola workers to work, reducing the bankruptcy’s impact on local employment.
Lucid has its own financial problems as it’s not yet profitable and relies on raising more capital, but it is undoubtedly in a much more solid financial situation than Nikola has been over the last few years.
Also, $30 million in cash and non-cash considerations is pretty cheap.
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