Formula E the electric vehicle racing series lost about $29 million last year

Formula E the electric vehicle racing series lost 26.4 euros or about $29 million US during the fiscal year ending on July 31st 201 according to a financial statement filed with the United Kingdom's Companies House registry.

Results are for Formula E's fourth season

The results were for the fourth season that started in late 2017 and ended with two races in New York City. The previous year Formula E races lost 20.8 million euros or about $23.2 million. The year before that its losses were 35.2 million euros or about $39 million.

The Formula E races are now in their fifth season even though some critics thought it would never last this long when it was launched in 2014. The races are overseen by the same governing body as the Formula One races. The series has used a different venue from dedicated tracks instead using temporary street circuits often built in or near the center of major cities.

Major automakers have participated in Formula E races

Major auto manufacturers such as Renault, Audi, BMW, and Nissan are already involved in Formula E racing. Soon Mercedes-Benz and Porsche will join in. In spite of losses Jaguar has also invested heavily in the racing series: "Troubled auto maker Jaguar Land Rover (JLR) has committed $40 million to its team in the electric-powered Formula E race series according to its latest financial statements." However, this is cheap compared to Formula One costs where teams on an average spend about $250 million per season over the last decade.

In spite of losses Formula E races still attract investment

The Formula E races have lost more than $168 million since they began. Yet CEO of Formula E, Alejandro Agag has been able to keep investments coming in and there has been no rush to take money out. Formula E is running much like some Silicon Valley startups and it seems to work.

While still in a loss position for now, season four of Formula E saw a doubling of attendance from the previous season to $476,000. TV viewing also increased from 223 to 330 million.

The new second generation race car has also increased interest in the races. The new car is faster, can race longer, and has a unique design. The new car made its debut in season five that started last December.

The future

While at some point investor's will expect some return on their investment that point has not been reached yet. Agag is finding new sources of funds that could bring Formula E out of the red. The fourth season experienced a huge jump in revenue from promotions and licencing income of about $47 million. The company had sponsorship deals with well-known brands such as Heineken and Bosch.

One of the big promoters of Formula E is Saudi Arabia. Formula E signed a 10-year deal with the Saudis to hold races there. The value is around $260 million according to one person who knows about the deal.

Previously published in Digital Journal

Belgian company to recycle electric race car batteries

The all-electric car racing series Formula E is not just attempting to improve the performance of electric cars (EVs) but also to produce cleaner and more efficient EVs.

Formula E races

Wikipedia describes the races: "Formula E, officially the ABB FIA Formula E Championship, is a class of auto racing that uses only electric-powered cars. The series was conceived in 2011, and the inaugural championship started in Beijing in September 2014. The series is currently in its fifth season. It is sanctioned by the FIA. Alejandro Agag is the founder and current chairman of Formula E Holdings."

Formula E announced last month that it has entered a partnership with the Belgian-based recycling company Umicore. Formula E will collect all its used batteries from its racing teams and send them to Umicore where they will be sorted and dismantled. Umicore will then put them through their proprietary smelting and hydrometallurgical process that will recover all the metals from the batteries.

Organizers of the Series E claim the metals are recyclable again so they can be made into new batteries many times over.

Battery recycling a key issue for EV manufacture

EV batteries are a large part of the materials used in manufacture of EVs. The production of the batteries consumes many scarce resources actually more than gas engine vehicles according to automakers. While driving EVs uses less energy than gas or diesel vehicles, battery recycling will also help them to minimize resource consumption in their manufacture as well.

Up to now EV makers have been searching for ways to reuse EV batteries that no longer function to drive the vehicles. Some are being used for solar storage or in charging stations. As EV's are relatively new on the market there is not a huge supply of used batteries that would make recycling programs profitable.

Umicore is one of just a few recyclers of EV batteries around the world. BMW has also made arrangements to recycle batteries from its i3 EV. Several countries where EVs are already quite prevalent have regulations that make EV automakers responsible for ensuring that their EV are reused or recycled so that they do not become part of the waste stream. If Umicore's recycling program is successful this will make EVs an even more attractive alternative to gas and diesel vehicles.

Umicore

Wikipedia says of Umicore: " Umicore N.V.. formerly Union Minière, is a multinational materials technology company headquartered in Brussels, Belgium.Formed in 1989 by the merger of four companies in the mining and smelting industries, Umicore has since reshaped itself into a more technology-focused business encompassing such areas as the refining and recycling of precious metals and the manufacture of specialised products from precious metals, cobalt, germanium, zinc, and other metals...Battery Recycling is a second business unit, focused on the recycling of spent rechargeable batteries from laptops, mobile phones, and hybrid electric vehicles."

Umicore now generates most of its revenues from clean technologies such as recycling, emission control catalysts, materials for rechargeable batter,s and photovoltaics. Umicore is ranked as one of the Global 100's "Most Sustainable Companies in the World:" In 2013 it was the top-ranked company. The company has won an award for its breakthrough technologies for recycling lithium-ion batteries and other initiatives.