Siemens Energy dealt a huge blow after major faults found in wind turbines: Siemens Gamesa — a subsidiary of Siemens Energy — has found a “substantial increase in failure rates of wind turbine components” that could cost the company over EUR 1 bn, Reuters reported on Friday. The technical issues identified will affect 15-30% of the more than 132 GW worth of turbines used in wind plants worldwide. Siemens Energy’s shares plunged over 37% on Friday after the company “scrapped its [net income] forecast and warned that costly problems at its wind turbine unit could last for years,” according to CNBC. Gamesa is one of the largest suppliers of wind turbines in the world.

REMEMBER- Gamesa and other wind turbine makers had already been facing major hurdles over the last few years, including rising maintenance costs, supply chain risks, rising inflation, and reduced power installations, all of which have contributed to the sector’s growing losses.

Egypt wind plants at risk? Gamesa is a major player in Egypt’s wind energy sector, and is involved in the 500 MW Gulf of Suez wind farm — formerly known as the Ras Gharib wind plant — the 250 MW West Bakr wind farm, and the 220 MW Gabal El Zeit 2 wind project in the Gulf of Suez.

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Lithium iron phosphate (LFP) batteries are gaining traction globally as an alternative to commercial lithium-ion batteries, Reuters reported last week. Two of the world’s largest automakers, Toyota Motor and Hyundai Motor, have announced plans to equip their future vehicles with LFP batteries, and seven EV battery manufacturing facilities in the US have pledged USD 14 bn for LFP production, including US giant automakers Ford and General Motors. Tesla and Rivian are reportedly considering similar investments, according to the newswire. Commercial lithium-ion batteries are also known as NMC batteries due to the battery cell being made of a combination of nickel, manganese, and cobalt.

LFP vs. NMC batteries: LFP is becoming the more attractive battery choice partly due to environmental and geopolitical concerns given that their production “does not use nickel or cobalt — two metals in dwindling supply and often questionably sourced,” battery make EcoFlow explains. LFP batteries are also more stable and less prone to thermal runaway and overheating issues, making them a safer choice, EcoFlow adds. Lithium-ion batteries, however, have a one-up on LFPs in storage power per unit of volume or weight, but the addition of manganese has enabled them to hold more energy than previously possible, Reuters cited Toyota as saying.

Morocco is preparing to ride the wave: Morocco’s state-owned OCP Group — which mines phosphate, manufactures phosphoric acid, and produces fertilizer — plans to develop 20k tons of fluorine and 30k tons of other specialized chemicals to be used in the production of lithium iron phosphate batteries by 2027.

OTHER STORIES WORTH KNOWING ABOUT THIS MORNING-

• Payment company Mastercard has launched a global project to recycle credit and debit cards, which should prevent bns of cards in circulation from ending up in landfills. (Reuters)