Raphael Stevens

EV sales in the U.S. are expected to jump from an estimated 350,000 autos in 2021 to more than a million annually by 2025, according to LMC Automotive.
Tesla says none of its “scrapped lithium-ion batteries go to landfilling, and 100% are recycled.”
Ford and its battery manufacturing partner SK Innovations will secure a steady supply of key materials such as lithium, nickel and copper critical to manufacturing EV battery packs.

Dane Hardware (right), Ford design and release engineer, and Mary Fredrick, Ford battery validation engineer, measure the voltage of a battery using a digital multimeter at Ford’s Battery Benchmarking and Test Laboratory in Allen Park, Michigan.

Ford is partnering with battery recycling start-up Redwood Materials to reuse the raw materials from EV battery packs.  
The agreement, which will begin initially with recycling scrap material from battery manufacturing, is the latest indication automakers are taking steps to address the supply and cost of raw materials needed to manufacture batteries for electric vehicles.

“It will help us reduce the reliance on importing a lot of the materials that we use today when we build the batteries, and then it’ll reduce the mining of raw materials, which is going to be incredibly important in the future as we start to scale,” said Lisa Drake, Ford’s chief operating officer. “Creating this domestic supply chain is really a major step towards making electric vehicles more affordable and more accessible to everyone.”
With EV sales in the U.S. expected to jump from an estimated 350,000 autos in 2021 to more than a million annually by 2025, according to the research firm LMC Automotive, automakers are increasingly focused on the life cycle of EV batteries. 
Tesla, which recycles batteries from its vehicles, addresses the issue on its website saying, “none of our scrapped lithium-ion batteries go to landfilling, and 100% are recycled.” GM is working with Canada based Li-Cycle to recycle scrap material from the manufacturing of Ultium battery cells.
Ford’s deal with Redwood Materials could benefit both companies as the number of EVs continues to grow. Ford and its battery manufacturing partner SK Innovations will secure a steady, and potentially growing, supply of key materials such as lithium, nickel and copper critical to manufacturing EV battery packs. Redwood Materials will receive battery packs that will be recycled, with the key elements then shipped back to Ford to be reused in future EVs.
“We’re building and deploying around a little more than 2.000 batteries onto the roads in America, every single day,” said JB Straubel, founder and CEO of Redwood Materials. “We need to at least be planning to figure out how we can very efficiently and sustainably recycle and disassemble a similar number of batteries.”

Initially, Redwood will be recycling scrap material it receives from Ford at its facilities in Carson City, Nevada. Over time, as Ford and SK Innovation add plants, it is possible Redwood Materials will build new recycling centers closer to the battery manufacturing plants.
On paper, Ford’s battery recycling plan makes sense. But making sure there is a continuous loop will require Ford to track what happens to its EVs long after they have been sold. A tall task since vehicles typically have two or three owners before they hit the end of their life, and when that happens the EV is likely to end up at a scrap yard. The answer could be requiring automakers to track EV batteries.
“It’s definitely possible for the automaker to shepherd that battery through its lifetime, and get it to the recycling center,” said Sam Jaffe, managing director of Cairn Energy Research Advisors.
Jaffe, who tracks the EV battery market, says recycling is taking hold in Europe because automakers have a legal obligation to guarantee the battery will be recycled. “The batteries get to the scrap yards, the automaker will pick them up and bring them in to centralize them and then send them to recycling,” he said. The push to increase recycling in the EU is one reason Volkswagen and Peugeot have rolled out small recycling operations on the continent.
For now, Ford has not established a definitive plan for making sure battery packs at the end of their lives are recycled, but Drake admits the financial benefit of recycling batteries is substantial. “If we can recapture that value and not have to mine again and have some domestic supply security, that’s incredibly valuable for us,” she said during a briefing announcing the partnership. 
EV battery recycling has not received more attention in the United States in large part because the number of electric vehicles reaching the end of their lives remains relatively small. That will change over the next 10 years as the industry ramps up EV production.   
AlixPartners, an auto industry consulting firm, says investments in battery production will make up almost a quarter of the $330 billion being spent to develop and build electric vehicles from 2021 through 2025.   Ford has committed to spend $22 billion through 2025 developing EVs, including the F-150 Lightning. First deliveries of the all-electric pickup truck are scheduled for early next year.
Ford is among several companies that have invested in Redwood Materials, which has raised more $800 million over three rounds of funding. Straubel says demand for raw materials will continue to grow, so recycling instead of mining will become a smart move for automakers.   
“It can alleviate the need for importing more of these materials from overseas and can alleviate the need and the pressure on ramping up mining,” he said.
— CNBC’s Meghan Reeder contributed to this report

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FA Playbook

Businesses are now more trusted than the government.
Financial advisors face a unique opportunity to rehabilitate a reputation damaged in past financial crises by becoming a valuable resource for investors and savers facing today’s challenges.
Here are five ways advisors can become the “go-to” planning resource for customers.

Marko Geber | DigitalVision | Getty Images

In a world that’s rapidly changing and becoming more uncertain than ever, the financial advisory industry has a great opportunity to become a beacon of trust for investors by helping them navigate through difficult life and financial decisions.
The Covid-19 pandemic, combined with the social and economic shifts over the past few years, has impacted every aspect of life and shifted consumers’ expectations of business. In fact, businesses are now more trusted than the government, and there is a new mandate for business leaders to take action on critical societal issues, according to the recent Edelman trust survey.

Further, the pandemic led to a serious evaluation of life priorities, causing many to change careers, relocate, leave the corporate life altogether or opt for early retirement.

More from FA Playbook:

Here’s a look at other stories impacting the financial advisor business.

In many respects, these critical life changes, combined with increased uncertainty and volatility in the economic environment, have fueled a renewed need for financial advice.
Business is booming for financial advisors, as new clients pour in, seeking not just financial advice but also a trusted advisor on critical life decisions. The opportunity for the financial services industry to regain the trust lost during the financial crisis and establish the financial advice profession as both a valued source of information and guidance for investors, as well as a career of choice for future generations, has never been greater.
Yet capitalizing on this opportunity to build long-term trust will require firms taking deliberate steps toward deepening client relationships now to help guide them through the most critical life decisions and help them build financially secure futures.

Here are five things advisory firms can do now to achieve that:

Offer more than financial advice. Wealth management is no longer just about finances; it is about helping clients make sound life decisions — especially right now, with millions changing jobs during what’s becoming known as the “Great Resignation.” In many ways, advisors need to act as life coaches, guiding clients through critical decisions in life as they navigate a highly complex world. We are increasingly seeing advisors considering adding psychologists or life coaches to their staff to help clients make these difficult choices. By being able to talk more than dollars and cents, advisors not only enhance their value, but also demonstrate that they truly care about clients.
Build multi-generational relationships. To retain business for the long-term, advisors should broaden their relationships beyond the main client. Consider planning and engaging in family meetings to help achieve even greater success with the entire family, particularly the next generation of investors and potential clients. By focusing on the ongoing dynamics of all members of a client’s inner circle, advisors can create actionable and effective roadmaps for wealth management. Building these relationships is all the more possible now given that many young adults are living at home with their parents.
Communicate, communicate, communicate. It is critically important to be visible to clients and prospects with the right message at the right time. Successful advisors take an omni-channel approach using both traditional and digital channels to communicate with clients. Regular check-in emails and occasional texts with useful information, as well as ongoing social media engagement to meet clients where they are and better understand their concerns and lifestyles, are all critical in delivering more targeted and more meaningful advice.
Become a destination for the full wealth journey. Advisors should offer solutions designed to meet client needs at every stage of life. Help early stage investors who are starting off careers or have recently changed career paths by leveraging digital tools, free budgeting and benchmarking solutions so you can build long-term relationships and be there with them all along the wealth journey. For wealthy clients, offer solutions to help them protect and transfer wealth by providing access to other business specialists in your “orbit of expertise.”
Be a client advocate. Advisors should take every day as an opportunity to demonstrate to clients that they are always watching out for their interests. For advisors working in a fiduciary capacity, this may seem like an obvious point. However, your legal structure means little to clients unless they feel that you care for their well-being. Ask your clients the extra questions, get to know them inside out, understand their concerns about life, family and careers, and be their best advocate through their entire life journey.

And perhaps most important, remember that trust takes years to build and seconds to break. Treat every client relationship with the care, respect and attention it deserves: Every. Single. Day.
— By Ben Harrison, co-head of wealth solutions at BNY Mellon Pershing More

Pfizer and BioNTech will provide an additional 500 million doses of their Covid-19 vaccine to the U.S. government.
These will then be donated to low and lower-middle-income countries.
The move announced Wednesday represents an expansion of the companies’ existing agreement with the government to provide extra vaccine doses at a not-for-profit price for less-advantaged nations.

Pfizer and BioNTech will provide an additional 500 million doses of their Covid-19 vaccine to the U.S. government to be donated to low and lower-middle-income countries.
The move announced Wednesday represents an expansion of the companies’ existing agreement with the U.S. government to provide extra vaccine doses at a not-for-profit price for less-advantaged nations, and brings the total number of doses to be supplied for donation to these countries to a billion.

In line with the initial agreement, the U.S. government will allocate doses of the Pfizer-BioNTech Covid vaccine to 92 low and lower-middle-income countries and the 55 member states of the African Union, Pfizer said in a press statement Wednesday.
Deliveries of the initial 500 million doses began in August, and the total 1 billion doses under the expanded agreement are expected to be delivered by the end of Sept. 2022, the company added.
The first doses allocated through this program arrived in Rwanda in mid-August and since then, more than 30 million doses have been shipped to 22 countries.
Pfizer and BioNTech have an existing agreement in place to supply vaccine doses to the COVAX Facility, a mechanism established by Gavi, the Vaccine Alliance, the Coalition for Epidemic Preparedness Innovations and World Health Organization that aims to provide poorer countries with early access to Covid-19 vaccines.

CNBC Health & Science

Meanwhile, developed nations like the U.S. and those in Europe have had plentiful supplies of Covid shots since a number of vaccine candidates were developed at breakneck speed and authorized for emergency use last year before being rolled out to their general populations in mass vaccination campaigns.

While a majority of adults in the U.S. and Europe are now fully vaccinated, millions of people around the world do not have such ready access to Covid vaccines which greatly reduce the risk of severe Covid infection, hospitalization and death.
In the U.S., 64.1% of the population above 12 years of age is fully vaccinated, according to CDC data, while in the U.K., 81.9% of people over 16 are fully vaccinated, British government data shows. In the EU, 71.7% of adults are fully vaccinated, according to the European Centre for Disease Prevention and Control.
Our World in Data figures note that while 43.5% of the world population has received at least one dose of a Covid vaccine, only 2% of people in low-income countries have received at least one dose.

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The organic food industry is a booming business, with sales surging last year by 12.4% to $61.9 billion. However, most people don’t know what “organic” really means.
In 2014, brand consultancy BFG surveyed 300 shoppers. Of those shoppers, 70% purchased organic food, but only 20% of respondents could define organic.

According to the USDA, “organic is a labeling term that indicates that the food or other agricultural product has been produced through approved methods.” In other words, “organic” by itself isn’t necessarily a health claim. It just means the food was produced using organic methods. These methods include a list of federal standards addressing things like soil fertility, pest and weed control and animal raising practices. 
Some health-conscious consumers gravitate toward organic over conventional products due to concerns about highly processed foods, artificial ingredients, as well as the effects of pesticides, hormones and antibiotics. According to a study by Pew Research, 76% of adults surveyed bought organic foods for their health value, followed by environmental concerns at 33% and convenience at 22%.
But there is conflicting data about whether organic foods are actually healthier and safer. For example, a 2005 report from the University of California Riverside suggests that pesticide residue in organic and conventional crops is too low to have any adverse effects on health. Many experts also agree there’s no significant nutritional difference between organic and conventional crops.
To be sure, experts agree the organic food industry is here to stay.

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Lingerie start-up ThirdLove is hoping to get an even bigger leg up on Victoria’s Secret by launching into activewear.
ThirdLove announced the debut of its workout line, including a sports bra that the company says it has been working on for more than two years.

ThirdLove says it has been working on its sports bra design and fit for more than two years.
Source: ThirdLove

Lingerie start-up ThirdLove is hoping to get an even bigger leg up on its biggest rival, Victoria’s Secret, by launching into activewear.
ThirdLove announced Wednesday the debut of its workout line, including a range of sports bras that the company says it has been working on for more than two years.

ThirdLove said “sports bra” has become the most-searched term on its website in recent months, and CEO and co-founder Heidi Zak saw an opportunity to get into a growing, but highly competitive, activewear market, taking on the likes of Nike, Under Armour and Athleta. Victoria’s Secret has also been investing more in the category, recently debuting a line of sports bras and leggings called On Point.
“It’s a competitive market for sure, but there’s no company that’s saying sports bra for women, first,” Zak said in an interview. “When you say Lululemon, I think leggings. When you say Nike, I don’t think sports bra.”
While ThirdLove is also launching a selection of leggings and women’s workout tops, the centerpiece of this new line are its sports bras. The bra’s design is specific to a woman’s cup and band sizing. Rather than choosing from small, medium or large, women will select their regular bra size, such as a 34B or 32D. ThirdLove’s sports bras also feature an adjustable back strap. Prices range from $45 to $70.
“We aim to be the best sports bras that there is. Not to be mediocre, but to be awesome,” Zak said. “And it’s a growing market, so there’s plenty of room for new competition to come in and take market share.”
Citing data from market research firm NPD Group, Zak said ThirdLove has grown to be the top bra brand on the internet for the millennial demographic, based on sales and market share.

Comfort driving category growth

The company hopes to maintain that position by launching into another hot sector that can provide an additional lever for growth. According to NPD fashion analyst Kristen Classi-Zummo, the sports bra category has been on fire, even during the pandemic, when overall apparel sales took a tumble.
Year-to-date sales of sports bras in the United States have totaled $2.1 billion, up 53% compared from the same period in 2019, she said, citing NPD’s market research. On a year-over-year basis, sales of sports bras are up 48%.
“Comfort features are what’s driving the growth,” Zummo said. “And what a lot of brands are offering with sports bras is an elevated essential that’s not just for function and playing sport. They’re pretty and they’re comfortable.”
There isn’t one dominant retailer in the sports bra market today. Retailers’ private-label brands, taken together, account for about a third of the category’s sales, NPD said. This offers an opportunity for a company to try to get a stronger footing in the space.
As for Victoria’s Secret, which has been trying to appeal to more women by revamping its marketing, launching versatile products like maternity bras and using models of diverse body types, ThirdLove’s Zak said she’s impressed but not yet convinced the lingerie maker’s efforts will work in the long run.
“It is a marked change over the past few months,” she said about her competitor. “You really can see the difference in the model choice, the tone, and even the product launches that they’re going after.”
“It just remains to be seen, is that work authentic to the customer base? How many millions of customers have they lost? It’s hard to get somebody back who left the brand,” Zak added.

A grab for market share

ThirdLove is positioned to be a huge beneficiary of Victoria’s Secret’s struggles. The company has been bold about its rivalry with an industry behemoth in the past, too. In 2018, ThirdLove took out a full-page advertisement in The New York Times in which it issued an open letter slamming derogatory comments that members of Victoria’s Secret’s management team had made toward women.
Zummo has been watching the battle brewing among lingerie start-ups like ThirdLove for legacy players’ market share.
“Direct-to-consumer brands are definitely having an impact,” she said. “We’re seeing a lot of these smaller brands really resonate with an array of different age groups. … They focus on empowerment. They focus on diversity.”
A representative from Victoria’s Secret didn’t respond to CNBC’s request for comment.
Victoria’s Secret was spun out of L Brands in early August and began trading on the New York Stock Exchange as its own public entity. Its shares are down about 21% from an all-time intraday high of $76.
ThirdLove, meantime, is eyeing opening retail stores again, after the company shuttered its only location in New York’s SoHo neighborhood near the start of the Covid pandemic. Zak wouldn’t offer a timeline but said it is likely the company will invest in brick-and-mortar retail.

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