the discovery stories change your mind. just a click away, find out best document trees on you to see the world, the subscribe. now to dw talking entry, the, it's a balancing act. we have to reinvent our economy to avoid the climate crisis. well, also making ends meet the coming, greener, more modern and more autonomy is. it's the challenge that dominates our global economy. it's also what we will be looking into in this episode of made

t w's business magazine. molly vina. welcome to this show. and these are the stories we will be exploring. homegrown batteries, the business of helping europe become independent from china. greener cruising, we need the taxi drivers, switching to a bikes in uganda. and cleaning up an age old industry can still be carbonized. at the heart of every electric vehicle is a battery, a lithium ion battery to be exact, are passed to climate neutrality wouldn't work without the naturally the need for these batteries is skyrocketing in 2019 global demand was at 134 gigawatts hours. today, the world needs more than 5 times as much battery energy and in 2030 demand is

projected to be 25 times. what it was in 2019 to currently, china is needing most of those needs. it produces more than half of the world's rechargeable batteries. now europe wants to catch up, and it's betting on us. we just started up to make it possible. north bolt has already accepted orders, worth 50000000000 euros along its customers or automakers like folks on the m. w. scan. you in volvo. now the business wants to expand. it's building. it's 1st german factory. sweden natural paradise to northern europe. but also a high tech center for email ability and car batteries or large deposits of critical raw materials needed for e car batteries here. an advantage for north bolt? a battery manufacturer with massive expansion plans. okay, i'm gonna, i'm gonna hook it up. i am an error and i'm is north pole chief environmental

officer. of course she drives an electric car and i'd like to hear from her what the products actually look like. in particular, of the battery cells that are company produces for electric vehicles and has a coffee. so you put them together next to each other. so as you can see, and the 1st we've been modules, which is a smaller, um, uh, uh, components where we just put the sales next to each other. and then they put them on in the system and we add to the electronics. and the, the system that controls the batteries and decides to what temperature they need for optimal charging or how they should be charged and discharged at different speeds. in order in sweden, there's already a giga factory, the size of 200 soccer fields for up to 4000 employees. and the plan, annual production of batteries for $1000000.00 electric vehicles. production takes place in what are called clean rooms with different batteries, cells being manufactured for each car maker. the onboard computer in the car

controls how batteries are discharged as evenly as possible. and it's a charging station. it regulates the charging, so the cars charged as far as possible, about 50 percent within a half an hour. the creative thinking in teamwork are important to the company nor thoughts. lab near stock home has 1000 employees alone. one of them is project manager mario. so you're in ski, i think it's super exciting on next week. i think of best 3. first of all, that's a very complex product with different people that have to collaborate to really make this happen at scale. it's the engineers from all different disciplines. it's of course, business backgrounds, it's production people that you know, everyone needs to come together to really deliver to make this common mission come to life. last year, 1500000 electric vehicles registered across europe. from here,

they are planning to new giga factories in norway and germany. north bolt is expanding globally, investing several 1000000000 euros. no, but it's important because it's much we design and build the battery cells. but we also build the battery factories, and this is what we are here for. we have here to enable this translation with sustainable battery production on giga scale in europe. so we are homegrown and we want to keep them in so many we want to be in the from please, and show that you can do this in a sustainable way. nor thoughts, major investors into the german car manufacturers, bmw and v w. 4 also customers the we have the premium segment in europe. so the really find brands are on our, on our customers sheets. and when you do high performing factory says you need to

compete with the, you know, the car is running into 100 kilometers per hour. there are huge deposits of critical raw materials in the scandinavian countries. this is a competitive advantage for north salt because the company needs large quantities of magnesium and cobalt nichols have battery production in the old batteries are also recycled using a shredding process, which is important for the environmental balance. and the factories must be powered by electricity from renewable sources, which is the only way to produce green car batteries. and that's the basis the crash course to why you're doing that. how is it going? good. yeah. yeah. there are also production sites in the us. poland and portugal, and all of them rely on recycled raw materials to the engineers are currently working in optimizing the recycling production processes or as a such man, they want to develop processes here. then we can use in any hub in the germany or

poland and where battery packs from the o williams or from the end of life, can come back to us and be automatically disassembled and discharged. and then eventually become those nice to buy 2 materials. if we saw the giga factory in northern sweden is already being expanded again. it will soon look like this in germany to where i dig a factory will go into operation by the end of 2025. total investment will come to 4500000000 euros. the demand is huge and growing, ditching, harmful combustion engines is not just a priority in europe. e mobility is on the rise in african countries as well. that's also due to rising fuel prices. and the focus isn't just on electric cars. east scooters are driving the trend in uganda, for example. they curve emissions of course, but they also help combat air pollution. an important factor for those who live in

kampala you've gone to us capital. the city ranks among the world's most polluted metro pulse, but there are also plenty of other reasons. e bikes are becoming popular in the country. henry new ammonia operates a gasoline powers motorcycle taxi about about a and yukon to rise and fuel prices have been shipping away at his income were not including the dog, where before i used to earn up to 50000 ugandan shillings. now it's just the $30000.00. the recent rise and fuel prices has really hurt my income. but not all of his colleagues are feeling. the pinch moves that have a new toner, converted his boat about a to a battery electric model. while gasoline prices have gone up, the price to swap out a battery has remained constant. the well that done take you to bring back when fuel prices began to rise. i just made the switch to an electric

light combined and then dumb, open you up and go for dante. he is a big one. i don't need to buy fuel anymore. i would use i just swap batteries and nobody could even walk up. now i can take on jobs that my colleagues on gas powered bikes turned down due to cause on volume on opium. some of even accused me of unfair competition. do i do this a good while not be tell out on the streets. the electric motor bike isn't much more pleasant ride and many customers love how clean and her quiet it is. he's always assignments. it doesn't make a lot of noise. you feel peace while on on the right, so it's nice, but the electric motor bikes is still relatively new and uganda with it's literally catching on as an added incentive that you gone to and government has eliminated

import duties and electric motor bikes. environmental is welcome to move as a step toward a cleaner mobility. and i believe it will help us a lot as our new open country as we get into though we still have a lot of challenges that thing from that link to supply or do they choose to how there's not enough fields that enclose option. so if you need to, i don't that it will be the t, then that means that we need more distribution or supply. sometimes we'll look to see the henry new ammonia hoops that one day. you'll also be able to swap his gasoline engine for an electric one. as 4 moves that have a new toner. oh, he's glad that you found an affordable solution to save on fuel costs can help protect the environment's. fits in carbon isn't just a priority form ability. our industry also needs to lower its c o 2 emissions that

includes the very product that made industrialization possible in the 1st place, steel, the process of making steel is incredibly energy intensive. that's why steals, often seen as one of the most challenging products to be carbonized, nevertheless, is production is on the rise around the globe and 1950. 210000000 tons of steel were produced annually by 2050. the world is projected to produce 10 times that and it makes sense. wind turbines, after all, aren't made of paper. but how can still become fit for the future in the way we make steal hasn't really changed. and over 150 years, around 70 percent of iron is produced in traditional blast furnace as before it's refined into steel. this generates a lot of c o 2 for every ton of steel around 2 tons of carbon dioxide. one alternative is to replace comb with green hydrogen that eliminates the blast

furnace replacing it with a more climate friendly want, like an electric arc furnace. instead of c o 2, ordinary water vapor is produced. this process can reduce emissions by up to 80 percent. the result is what's known as green steel. the fact that coal fired last furnace is turning iron or into iron requires very high temperatures, up to 2000 degrees celsius. for more, that uses a lot of energy. and energy is also the biggest cost driver for steel manufacturers . in 2000, the big steel producers were still in europe and north america. china has left them behind. it's now produced 54 percent of the world steel. india has almost have double it's production. at the very top is the chinese state and china

bowl group therapy and company. personal or mental based and luxembourg isn't 2nd place. followed by 5 other groups from china and one age from japan and south korea . in 10th place this type of steel from india, the china bowl group wants to switch to green steel and become carbon neutral by 2050 arsel norma, tall from luxembourg, has announced the same. one difference, however, is that the company is suffering under europe's high energy prices. last fall, it had to cut production at for german signs. a consequence of the orange of credit . the company is not giving interviews at the moment, but there has been talk of investing elsewhere, such as north and south america, where energy is less expensive. are still r, my town has been operating in brazil for a number of years. the country is rich and roll materials, including hired or the and

perhaps more importantly, for 80 percent of its electricity comes from renewables. the country has the cheapest when the energy and the americans are so learned motel now wants to invest in a giant wind farm and does cover almost 40 percent of his electricity needs in for sale by 2030. it's not over yet. ok, but i thought this is a great opportunity because to produce green hydrogen, huge renewable energy. so that's specially solar, wind and vital power. and brazil is a leader here in the bookstore and mexico. i can tina and sheila and we have the many of the necessary natural resources in the ground, the air and the land for renewable energy producing more green hydrogen. it's not just for steel production for the end of the month for the dental. so for that, we'll see that sort of what, what does that mean for your own? people are afraid that the continent will be left behind as a location for heavy industry taking jobs and prosperity with it. in germany,

companies pay $6.00 times as much for a kilowatt hour of electricity as in brazil. but perhaps there is a way out the energy intensive. iron production is only one part of the value chain . steel is produced and the 2nd step, what we should do in the future is but it is that the import iron units of this bill i think, is a political challenge. and also sort of an emotional challenge for, for the mythologies and not having to hire making on site. this is the emotional, but it's, it doesn't really make any difference in terms of a possibility or so for the order secure to supply for the operators is a relatively small part of the ration, but such ideas aren't very popular in europe. the european union wants to offer incentives to encourage industry to invest in green technology. germany is also planning to support energy intensive companies with billions of bureaus and subsidies and the coming years alongside our alarm adults with

a group is also likely to benefit from this soon. both companies are investing in hydrogen powered plants in germany for iron production. if you get a lot of subsidies, you might stop, it should go in europe and them there is a huge challenge to get the competitive pricing on the electricity price. does the have risk project in sweden, for example, aims to bring the 1st truly fossil free steel to market from 2026, using green hydrogen, and a more claimant friendly electric furnace. a ton is expected to cost around $300.00 more than conventional steel price aside our individual plans even enough to make a difference in the green transformation. the steel industry produces around 8 percent of global c o. 2 emissions. and many companies are not very transparent when it comes to their climate targets according to a study. but one thing is clear, dirty coal fired blast furnace is have to go and more efficient methods are needed

to produce green steel. so what else can be done to transform the steel industry? i would also say that's one of the important piece is missing, is the creation of a demand for green steel. so if there's a care demand for green steel companies would also be more willing and more attracted to invest $56.00. the fact is, the world population is growing, and the demand for steel is also enterprise. new technologies and research will be key to producing green steel on a large scale. but strategic considerations about where steel should be produced are also important. countries like brazil, for example, could increase their iron production. well, europe could, for example, important higher and expand steel production and preserve jobs. but it's not even clear whether european companies will want to relocate production. after all,

thanks benefit greatly from filling in some subsidies and the you bought the subsidies themselves are controversial such as possible and they could even hinder the transition to green steel. ready ready ready and now we'll get personal. how do you prefer to go on vacation? sure. if you're traveling across the world, taking a plane might be the only choice, but most of the time flying is not a must many trips could just as well be done by train. it's an option that's becoming easier and easier here in europe nights range, for example, or having a renaissance on the continent. that means vacationers can travel from brussels to vienna, nice to moscow or madrid to lisbon without meeting c o. 2 easy trained travel is why some european countries have started banning short hall flights. but will a flight embargo really make a difference for the environment? it's the windows, i'll click on the slide from wesley island and scroll to the bottom of west street . in 15 seconds. i took a quick easy make my board. this is

a show this commercial flight on the was kind of of golf and extreme example. but so many flights, almost as necessary, an absurd, especially on the european continent. but more and more people are flying and emissions are going up with them. so some countries i'm bringing in them for those has officially band the short distance domestic flights in an effort to cut the countries carbon emissions. thanks for john is possible enough to know about us by trading and others. i looked into phone, but not everybody's a fan of the been doing the work. so what is your ground salt on the slides? and what does this work? the combinations of disease, commercial roots in europe also that off of the shows the flight to be measured in buffalo not takes only an hour and a half. and when you add the time it takes to get to the airport deal security, the entire thing can take much longer than the trade. in fact,

one of the busiest sites with in europe can be done by train and on to 6 hours. yet 1800000 people fly just between the 2 spanish cities, each. each passenger that flies even economy is responsible for up to 8 times more emissions then they would be if they had taken the 3 and of course line freedom 12 can prove many times more than the us and one for them to accept the space and emissions that could be said by menu. let's see what a slide costs from london to vienna next week. it's 25 new rows. that's nothing. and no, it doesn't change. and the cheapest ticket for next week is 322 was you come down in a 2nd to me the slice being so cheap is actually part of a deliberate design. we identified with 14 different types of subsidies that are forwarded to us. you might, you include carbon dioxide as a subsidy because we know it has a cost per allies,

don't pay for it in any age. and we have many, many different types of subsidies, such as the fact that they don't pay video to text on international flights. for instance. there's also kind of thing tax exemption and you're also actually paid tax on the stay within your car. what you're doing. they definitely have to fly changing this setup within the government's international aviation authority, lobby's, amending the new declaration law and called in markets. so dining flights on certain roots is just easier in front of the original plan was to band flights along each national route. but also much protest from the airline industry and lobby groups. it was watered down to change. the industry argues that this done would make a difference, which in ways true, this particular done only got 2.6 percent of domestic flight emissions in front. but if you want to make people stop flying short distances, signing is one thing that have to also be attractive. alternatives for people

why is nationally seen roots are quite good and a lot of your problems are to be starts at the bottom. there are different gauges in neighboring countries, different electrifying systems, different, same control systems, which means you likely need to change trains. and you also need to book each legs separately as each country has its own system. but change is happening under the e green do. the autopay and commission has been working on better connecting the world and integrating really with roads. what's the reason the efforts and sweden some show toll roads have already disappeared? because traveling my train of road has become more attractive and my favorite developments nights trainings are coming back of the good. so with all this, how effective is banning shortwell flights of saving a mission? we can see that 87 percent seen in germany that less than 600 kilometers long

on less than 6 hours in travel time. by the way, that a sanchez looked at a host of actual savings of carbon and now the emissions if these do it's a substitute sense. so in the most of the scenario we would save around 2 percent of c o 2 emissions from those emission generated in those and $87.00 goods. this could go up to 22 percent of a majority of flights for a band. but since that's one very realistic at the moment, we're still looking at around 2 percent this is really a saving the dentist you lose. but on the other hand, clearly shows they'll immunizations of the sort of measures. there are a few factors. that's good. bush savings even below 2 percent. if only some apple, it's done slice between each other. passengers could just do the different efforts nearby, or they could connecting slides via a different the boat. this give me more shotwell flights on those routes and more

emissions overall. this is more likely to be the case for business travelers than those on holiday. and then most shotwell sites in europe don't have a chain alternative building. these would also add c o, 2 emissions now. but it's really the long term we need to be looking at. because here's the thing about aviation. why don't accounts for less than 3 percent of overall emissions, right. so by 2050, it's predicted to pick up one quarter of the global coughing budgets. so one way or another we have to go to the emissions. the question is benz the way to go is sort of again the western idea of freedom and democracy, your competition is same or that this has been one of the key aspects of the construction of the european union. bonds is not they don't really work. and that's why, you know, he is way, it's important that we work, you know, most certainly way this into is making trains more attractive, cheap,

but it gets better connection simpler booking systems decks. and carol seen on that on slides. and there is a need for your reply to porch, so this doesn't backfire for the moment. uh, short old bands essentially useful because this and they, they show that the government can do something that they take action that they are not looking on. and it's clearly avoidable. to, to emit, then there is an option for governments to help in the introduced stage. the bulk of the problem is stand alone her flights. but until we can fly on clean a fuse, we can start cutting emissions where we can whether it's turning an entire industry on a ted or a smaller step, like taking a train to your next vacation destination changes. and the way our world ticks are happening every day. and every one of us has a choice to be a part of the transformation. that's it for this episode of may dw,

as business magazine. i'm not easy, not. thank you for watching the, [000:00:00;00] the

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