Category Archives: Producer Class Economics

Tesla buys Maxwell



The guy who was an ultra-capacitor geek n college has purchased probably the most promising next-gen storage technology. My guess is that this is the start of a promising relationship. Capacitors will probably never run an EV for a host of real-world reasons. But because they can charge and discharge so rapidly, they can certainly help—especially in leveling the loads in real-world traffic conditions.

But the real reason for Tesla's hookup with Maxwell is likely to be their ability to make a superior anode that doeasn't use cobalt. Cobalt is found greatest quantities in parts of the world known for corruption, major human rights abuses, and violence. Relying on such a rickety supply chain for a critical part of a manufacturing process is something to be avoided at all costs. With this purchase, Tesla will be able to make cobalt-free anodes that are objectively better.




Fred Lambert over at Electrek has much wisdom to add about this high-level Industrial Class hookup.

And Autoblog explains the importance of ultracapacitors

Tesla buys Maxwell



The guy who was an ultra-capacitor geek n college has purchased probably the most promising next-gen storage technology. My guess is that this is the start of a promising relationship. Capacitors will probably never run an EV for a host of real-world reasons. But because they can charge and discharge so rapidly, they can certainly help—especially in leveling the loads in real-world traffic conditions.

But the real reason for Tesla's hookup with Maxwell is likely to be their ability to make a superior anode that doeasn't use cobalt. Cobalt is found greatest quantities in parts of the world known for corruption, major human rights abuses, and violence. Relying on such a rickety supply chain for a critical part of a manufacturing process is something to be avoided at all costs. With this purchase, Tesla will be able to make cobalt-free anodes that are objectively better.




Fred Lambert over at Electrek has much wisdom to add about this high-level Industrial Class hookup.

And Autoblog explains the importance of ultracapacitors

The way its supposed to work


The Diamond-Star auto manufacturing facility in Normal Illinois was shut down by Mitsubishi in 2015. Selling an old auto plant is amazingly difficult. They tend to be very large (2.6 million square feet—242,000 sq. meters) surrounded by rail yards an other transportation hubs. When in operation, an auto plant is an operating investment of roughly $1billion, with 1200 skilled operators to make it all work. At one point, this operation cranked out 200, 000 cars per year—or about one a minute.

This plant is being refitted to make electric pickups called Rivian. The selling price was $16 million. Some of the equipment is unusable. Some, like a paint shop, is extremely valuable. But the biggest advantage is that the plant has only been closed for four years. This means that many of those valuable producer-class types it takes to create a working production plant are still in the area. My guess is that the Rivian roll-out will be a lot smoother than the Tesla Model 3.

When I was in college, I worked at an auto-parts store that was part of a small chain. The head of purchasing once told me to never order parts from California—parts made in the Midwest were better-built, cheaper, and they arrived as promised. He was right in 1970. It will be interesting to see if the Midwest is still home to some world-class manufacturing expertise.



I am NOT a truck guy so I have NO idea if these things will sell to the folks who like their pick-ups loud and petroleum-fired.  Scaringe looks like HE knows trucks so this might work.

Plant Finds Second Life With Rivian—And So Do Ex-Mitsubishi Workers

By RYAN DENHAM 1/22/2109

Three years ago, Wade Jensen punched the clock for the last time at Mitsubishi’s manufacturing plant in Normal.

“I remember taking pictures the day that I left, sitting in my car, of the gate I walked in every day for years, and saying on social media, ‘Last day. Onto new adventures.’ Thinking I’d never be back here again,” Jensen said.

But here he is, once again. He's now engineering manager for Rivian's first assembly line, getting the electric automaker ready for production to begin next year.
"The opportunity to see this plant producing cars out the back door again, I was all in."

Of the 60 or so Rivian employees in Normal, about half are former Mitsubishi workers like Jensen. He said it was surreal to walk back into the plant.

“When you’ve done it for 28 years ago, it’s your passion. It’s what’s in your heart. It’s your desire,” Jensen said on GLT’s Sound Ideas. “And the opportunity to see this plant producing cars out the back door again, I was all in.”

Jensen was eager to give GLT a tour of the Rivian plant in a golf cart. It's massive—around the size of 24 Walmarts, or 2.6 million square feet.

It looks even bigger now that it’s so empty. Some sections are cordoned off by Rivian prep work. Jensen cruised past lots of old Mitsubishi equipment that Rivian is deciding whether to sell, use, or scrap.

It's a big difference from the days when Mitsubishi was cranking out 200,000 vehicles a year in the 90s and early 2000s.

“Our goal was to get at least one car a minute off the end of the line,” Jensen said.

Rivian is planning to make 50,000 electric pickups and SUVs here annually—about a quarter of the Mitsubishi's peak production. Jensen said that lower volume means Rivian won't be as heavily automated as Mitsubishi was.

That begins later this year with what Rivian calls “validation builds.” They'll build around 70 vehicles on roll-around carts—static builds, they’re called, instead of running them down the assembly line. Jensen said those 70 vehicles will be divvied up for crash-testing, manufacturing training, and other company needs. Later, full production will begin.

Making Batteries

GLT’s tour with Jensen stopped at a well-lit, newly painted, but very much empty section of the plant—a reminder that automakers' plans don't always come to fruition.

“Back in Mitsubishi’s time, in the early to mid-2000s, this was an expansion that Mitsubishi put on, for their SUV, the Endeavor. This is where production for that vehicle was going to be done,” Jensen said, looking out onto the empty space. “But obviously everyone knows what happened to the economy about that time and everything started going south, and this was never utilized for any of that.

“It lent itself perfectly to Rivian’s plan. This will become our first battery factory,” he said.

Those batteries will be the heart and soul of Rivian's vehicles. Rivian says the biggest ones will give 400 miles of driving range on a single charge. They'll sit on a skateboard base that'll be shared across Rivian's vehicles, and maybe even sold to other companies that will make their own electric vehicles with Rivian's technology.

Rivian's battery manufacturing process is being developed in Irvine, Calif., and will be re-created here in Illinois.

“Everything out in Irvine is their design, technical process development. Working out all the bugs and fine-tuning it. And then from there, they’ll decide on what equipment and what layout they need to move that to the facility here,” Jensen said.

On The Ground Floor

For Jensen, this will be the second time he's been on the ground floor for a young automaker.

He was hired in 1988 as a second-shift supervisor as the Chrysler-Mitsubishi joint venture Diamond-Star Motors was launched. He rose through the ranks, spending time in Japan to help launch cars. He became maintenance and engineering manager.

But in 2015, he lost his job just like his 1,200 co-workers. Production was moved back to Japan. McLean County lost one of its Top 5 largest employers.

“It was kind of a shock to everybody. I was sitting at home and start getting all these text messages and phone calls. ‘Are you seeing the news? What’s going on?’” Jensen said. “The next day, you come in, and they make the official announcement in July (2015) that November 2015 would be the end of our production here.”

The 56-year-old father of three bounced from job to job doing engineering work in the years since, most recently for a Caterpillar contract company in Pontiac, his hometown.

Two years ago, Rivian bought the plant from a liquidator for $16 million, a bargain price. It hired back a dozen or so maintenance guys, and Jensen's name kept coming up. Soon, he was hired too.

“To see normally aspirated cars and try to change my vision to electric cars 100 percent, is not only a passion but intriguing to me at the same time,” Jensen said.

Jensen said the hardest part is all the new lingo and acronyms. Mitsubishi's final assembly line—snaking north to south through the plant—is now Rivian's general assembly line. "Structure studies" are now validation builds.

Aside from those differences, Jensen sees a lot of similarities.

“Anybody that you talk to in the automotive business, they all do the same things. They all know there’s prototype builds to prove out parts. There’s tooling builds to prove out tooling. There’s all these steps you follow, and it’s pretty much the same from company to company,” he said.

Rivian's hiring in Normal will ramp up throughout this year. It now has 600 employees companywide, with most in Michigan, California, and the U.K. To get its millions in local and state tax breaks, Rivian has promised to hire 1,000 full-time workers in Normal by 2024.

The first vehicles are scheduled come off the assembly line in 2020. Jensen said he's excited to be back.

“It’s intriguing and at the same time it can be daunting. But when you get my age, I’m not that far from retirement. But if I can keep doing this—and stay this excited about it—I don’t know when I’ll retire,” Jensen said.

You can follow all of GLT's Rivian coverage at WGLT.org/Rivian.

The way its supposed to work


The Diamond-Star auto manufacturing facility in Normal Illinois was shut down by Mitsubishi in 2015. Selling an old auto plant is amazingly difficult. They tend to be very large (2.6 million square feet—242,000 sq. meters) surrounded by rail yards an other transportation hubs. When in operation, an auto plant is an operating investment of roughly $1billion, with 1200 skilled operators to make it all work. At one point, this operation cranked out 200, 000 cars per year—or about one a minute.

This plant is being refitted to make electric pickups called Rivian. The selling price was $16 million. Some of the equipment is unusable. Some, like a paint shop, is extremely valuable. But the biggest advantage is that the plant has only been closed for four years. This means that many of those valuable producer-class types it takes to create a working production plant are still in the area. My guess is that the Rivian roll-out will be a lot smoother than the Tesla Model 3.

When I was in college, I worked at an auto-parts store that was part of a small chain. The head of purchasing once told me to never order parts from California—parts made in the Midwest were better-built, cheaper, and they arrived as promised. He was right in 1970. It will be interesting to see if the Midwest is still home to some world-class manufacturing expertise.



I am NOT a truck guy so I have NO idea if these things will sell to the folks who like their pick-ups loud and petroleum-fired.  Scaringe looks like HE knows trucks so this might work.

Plant Finds Second Life With Rivian—And So Do Ex-Mitsubishi Workers

By RYAN DENHAM 1/22/2109

Three years ago, Wade Jensen punched the clock for the last time at Mitsubishi’s manufacturing plant in Normal.

“I remember taking pictures the day that I left, sitting in my car, of the gate I walked in every day for years, and saying on social media, ‘Last day. Onto new adventures.’ Thinking I’d never be back here again,” Jensen said.

But here he is, once again. He's now engineering manager for Rivian's first assembly line, getting the electric automaker ready for production to begin next year.
"The opportunity to see this plant producing cars out the back door again, I was all in."

Of the 60 or so Rivian employees in Normal, about half are former Mitsubishi workers like Jensen. He said it was surreal to walk back into the plant.

“When you’ve done it for 28 years ago, it’s your passion. It’s what’s in your heart. It’s your desire,” Jensen said on GLT’s Sound Ideas. “And the opportunity to see this plant producing cars out the back door again, I was all in.”

Jensen was eager to give GLT a tour of the Rivian plant in a golf cart. It's massive—around the size of 24 Walmarts, or 2.6 million square feet.

It looks even bigger now that it’s so empty. Some sections are cordoned off by Rivian prep work. Jensen cruised past lots of old Mitsubishi equipment that Rivian is deciding whether to sell, use, or scrap.

It's a big difference from the days when Mitsubishi was cranking out 200,000 vehicles a year in the 90s and early 2000s.

“Our goal was to get at least one car a minute off the end of the line,” Jensen said.

Rivian is planning to make 50,000 electric pickups and SUVs here annually—about a quarter of the Mitsubishi's peak production. Jensen said that lower volume means Rivian won't be as heavily automated as Mitsubishi was.

That begins later this year with what Rivian calls “validation builds.” They'll build around 70 vehicles on roll-around carts—static builds, they’re called, instead of running them down the assembly line. Jensen said those 70 vehicles will be divvied up for crash-testing, manufacturing training, and other company needs. Later, full production will begin.

Making Batteries

GLT’s tour with Jensen stopped at a well-lit, newly painted, but very much empty section of the plant—a reminder that automakers' plans don't always come to fruition.

“Back in Mitsubishi’s time, in the early to mid-2000s, this was an expansion that Mitsubishi put on, for their SUV, the Endeavor. This is where production for that vehicle was going to be done,” Jensen said, looking out onto the empty space. “But obviously everyone knows what happened to the economy about that time and everything started going south, and this was never utilized for any of that.

“It lent itself perfectly to Rivian’s plan. This will become our first battery factory,” he said.

Those batteries will be the heart and soul of Rivian's vehicles. Rivian says the biggest ones will give 400 miles of driving range on a single charge. They'll sit on a skateboard base that'll be shared across Rivian's vehicles, and maybe even sold to other companies that will make their own electric vehicles with Rivian's technology.

Rivian's battery manufacturing process is being developed in Irvine, Calif., and will be re-created here in Illinois.

“Everything out in Irvine is their design, technical process development. Working out all the bugs and fine-tuning it. And then from there, they’ll decide on what equipment and what layout they need to move that to the facility here,” Jensen said.

On The Ground Floor

For Jensen, this will be the second time he's been on the ground floor for a young automaker.

He was hired in 1988 as a second-shift supervisor as the Chrysler-Mitsubishi joint venture Diamond-Star Motors was launched. He rose through the ranks, spending time in Japan to help launch cars. He became maintenance and engineering manager.

But in 2015, he lost his job just like his 1,200 co-workers. Production was moved back to Japan. McLean County lost one of its Top 5 largest employers.

“It was kind of a shock to everybody. I was sitting at home and start getting all these text messages and phone calls. ‘Are you seeing the news? What’s going on?’” Jensen said. “The next day, you come in, and they make the official announcement in July (2015) that November 2015 would be the end of our production here.”

The 56-year-old father of three bounced from job to job doing engineering work in the years since, most recently for a Caterpillar contract company in Pontiac, his hometown.

Two years ago, Rivian bought the plant from a liquidator for $16 million, a bargain price. It hired back a dozen or so maintenance guys, and Jensen's name kept coming up. Soon, he was hired too.

“To see normally aspirated cars and try to change my vision to electric cars 100 percent, is not only a passion but intriguing to me at the same time,” Jensen said.

Jensen said the hardest part is all the new lingo and acronyms. Mitsubishi's final assembly line—snaking north to south through the plant—is now Rivian's general assembly line. "Structure studies" are now validation builds.

Aside from those differences, Jensen sees a lot of similarities.

“Anybody that you talk to in the automotive business, they all do the same things. They all know there’s prototype builds to prove out parts. There’s tooling builds to prove out tooling. There’s all these steps you follow, and it’s pretty much the same from company to company,” he said.

Rivian's hiring in Normal will ramp up throughout this year. It now has 600 employees companywide, with most in Michigan, California, and the U.K. To get its millions in local and state tax breaks, Rivian has promised to hire 1,000 full-time workers in Normal by 2024.

The first vehicles are scheduled come off the assembly line in 2020. Jensen said he's excited to be back.

“It’s intriguing and at the same time it can be daunting. But when you get my age, I’m not that far from retirement. But if I can keep doing this—and stay this excited about it—I don’t know when I’ll retire,” Jensen said.

You can follow all of GLT's Rivian coverage at WGLT.org/Rivian.

Developing Nations Are Stepping Up Into Global Clean Energy Leadership


The importance of "sunk costs" looms larger by the day. Turns out it is really, REALLY hard to replace old technology with new. And it only makes sense even IF the only consideration is how much money has been invested over the years in the electrical grid, filling stations, etc—things that by rights should be rotting in technology graveyards by now. Of course, it isn't just the interests of pension and hedge funds at stake here—there is also matters of pride in technology, etc. We have successfully made the transition from one technology to another: tubes to transistors, film to digital photography, fax to email attachments, etc. but nothing on this scale.

So now we see that the people with the least infrastructure to displace happen to live in areas with the most sunlight. So it is really no surprise that the least developed countries in the world are embracing solar power with the most enthusiasm. It is the cheapest energy solution by far.

Developing Nations Are Stepping Up Into Global Clean Energy Leadership

by Joshua S Hill, November 28th, 2018

A new report from Bloomberg New Energy Finance has highlighted the rising importance of developing nations in driving clean energy adoption worldwide, and finds they are seizing the mantle of global clean energy leadership from wealthier, more developed nations.

A combination of surging electricity demand, declining technology costs, and a surge in innovative policy-making have resulted in developing nations stepping up to seize the mantle of global clean energy leadership from wealthier nations, according to a comprehensive new report published by Bloomberg New Energy Finance (BNEF) as part of its annual Climatescope project.

According to the report, emerging market nations surveyed by Climatescope accounted for the majorities of clean energy capacity added, and new funds deployed, globally in 2017. Specifically, developing nations added an impressive total of 114 gigawatts (GW) worth of zero-carbon generating capacity — including 94 GW worth of wind and solar. At the same time, developing nations brought online the least amount of new coal-fired power generating capacity since at least 2006 — with new build coal falling 38% year-over-year to 48 GW, half of what was added in 2015.

“It’s been quite a turnaround,” said Dario Traum, BNEF senior associate and Climatescope project manager. “Just a few years ago, some argued that less developed nations could not, or even should not, expand power generation with zero-carbon sources because these were too expensive. Today, these countries are leading the charge when it comes to deployment, investment, policy innovation and cost reductions.”



In addition to the increasing economic viability of clean energy technologies — specifically technologies such as wind and solar — which are further bolstered by the “exceptional” natural resources boasted by many developing nations, when combined with continually declining technology equipment costs, new renewable energy projects in developing nations are regularly outcompeting new fossil fuel projects on price. This has been most evident in the 28+ GW worth of generation contracted through tenders in emerging markets in 2017.

Financing for renewable energy projects in developing nations is similarly increasing, with 54 developing nations recording investment in at least one utility-scale wind farm, and 76 countries receiving financing for solar projects of 1.5 megawatts (MW) or larger (up from 20 and 3, respectively, a year ago). Further, development banks, export credit agencies, and other traditional backers are all combining to ensure investment and project backing continues to support the development of clean technology projects in emerging nations.

“European players, in particular, have moved aggressively to finance projects, particularly in Latin America,” said BNEF head of Americas Ethan Zindler, who helped found Climatescope. “While concessional capital is still clearly required in least developed countries or in others just beginning to adopt clean energy, elsewhere private funders appear quite comfortable deploying capital at volume.”

The report further highlights the growing trend that shows developing nations are skipping the fossil fuel stage of economic development which has so plagued their more developed brethren.

“I think it’s undeniable that for an equivalent level of economic development (GDP/capita), a number of emerging markets have a much higher penetration of solar and wind than their most developed peers had,” explained Dario Traum, who spoke to me via email.

“That’s a factor of technology change but also of course of cost. Emerging markets are where renewables most frequently undercut existing power procurement cost. In particular, Latin America has a number of countries that are amongst the countries with the highest level of solar + wind penetration, often facilitated by hydro and interconnection with neighbours.

“Caveat to all that is that big manufacturing and demographic hubs in Asia haven’t yet been able to get around coal as a cheap way to power industry around the clock. But they are seeing the consequences too, in particular air pollution. So a strong support for renewables there too.” more