As battery costs decline, electric vehicles (EVs) are gaining traction, bolstered by government support. However, India’s EV ecosystem requires tailored battery solutions for its two- and three-wheelers.
The global shift toward electric vehicles has surged, largely due to remarkable advancements and a drastic drop in battery prices—from approximately $1000 per kilowatt-hour a decade ago to below $100 today. This significant reduction, along with regulatory incentives like subsidies, has made EVs more accessible and attractive in various markets.
Yet, the rise of electric vehicles masks considerable regional differences, particularly in India, where two- and three-wheelers dominate the vehicle landscape. These vehicles pose unique challenges for battery technology, including cost efficiency, compact design, and the ability to function under diverse environmental conditions—from extreme heat to high moisture and dust levels.
This context invites a closer look at alternative battery chemistries that can cater to India’s specific needs. Innovations in this field could significantly influence the future of the EV landscape in India and beyond.
Additionally, lithium batteries are pivotal for advancing technology in industries such as automotive, renewable energy, and stationary storage. However, they rely heavily on minerals like lithium, cobalt, manganese, and nickel, which are unevenly distributed worldwide, presenting substantial geopolitical challenges.
Lithium Batteries and Geopolitical Challenges
Lithium batteries, pivotal in the tech energy storage sector, propel innovation in automotive and renewable energy industries. Their production depends on critical minerals such as lithium, cobalt, manganese, and nickel. This article examines the geopolitical ramifications of this dependency and potential solutions.
These essential minerals are concentrated in a few countries. The ‘lithium triangle’ in Latin America and Australia are major lithium sources, while the Democratic Republic of Congo (DRC) dominates cobalt reserves. Nickel is similarly confined to specific global areas. This concentration creates a zero-sum scenario — limited supply versus rising demand — escalating geopolitical tensions.
Countries like India, reliant on mineral imports, confront these challenges. Despite potential deposits in regions such as Jammu and Kashmir, these are still underdeveloped and do not alleviate current supply issues. Nations face the tough choice of securing enough minerals or innovating to lessen dependency.
In response, India has enacted reforms under the Mines and Minerals Act to strengthen its stance. These include opening mining to private entities, listing 30 critical minerals, and increasing transparency in the mining bid process. Additionally, India’s strategic joint venture, KABIL (Khanij Bidesh India Ltd), aims to secure international mining bids, marking progress in overcoming mineral dependency.
As global demand for lithium batteries escalates, securing these minerals has become critical, highlighting the need for technological innovations that decrease reliance on these scarce resources. This situation underscores the strategic significance of these minerals, and the innovative steps countries must take to secure their technological future.
Evolution In Battery Technology
Lithium batteries, crucial in today’s technology, comprise essential components like cathodes, anodes, and electrolytes. The cathode is key, evolving to boost battery performance by shifting from a Nickel-Manganese-Cobalt (NCM) formula to higher nickel contents, moving from a balanced 333 mix to an 811 formula that favours more nickel. This change aims to achieve higher energy densities.
Anode technologies are also advancing, transitioning from graphite-based to silicon-rich graphite and further to pure silicon and metal anodes like lithium. These developments aim to enhance energy capacities and efficiency in future batteries.
Electrolytes are evolving from liquids to semi-solid and solid forms. Solid electrolytes, crucial in next-generation solid-state batteries, enhance safety by eliminating flammable components, marking significant safety and performance improvements.
Battery chemistries are diversifying to suit different applications. For instance, Low Energy Vehicle (LEV) batteries may prioritise energy density over longevity, while stationary uses like telecommunications opt for batteries with lower energy density but higher cycle life and reduced costs. This specialisation leads to customised battery chemistries tailored for specific applications, optimising performance and cost-effectiveness.
In the broader context, the battery chemistry landscape is evolving, incorporating materials like lithium iron phosphate (LFP) and exploring new chemistries like lithium-sulphur and sodium-ion. These developments not only reflect rapid advancements in battery technology but also emphasise the strategic importance of adapting to market and environmental needs.
As we progress, the interplay of chemistry innovation and application-specific design will continue to shape the future of battery technology, heralding a new era of energy solutions.
Decline In Lithium Cell Costs
The cost of lithium battery cells has significantly decreased over recent years; a trend expected to persist. Currently, nickel-manganese-cobalt (NMC) cells cost about $65 per kilowatt-hour, and lithium iron phosphate (LFP) cells are around $55 per kilowatt-hour, down from over $100 per kilowatt-hour about three years ago.
Several factors drive this price reduction. Decreased mineral prices, an oversupply due to higher production capacities, and a supply-demand imbalance, especially in Europe and the U.S., have all pushed prices down. Industry forecasts predict NMC cell costs will stabilise between $60 and $65 per kilowatt-hour, and LFP costs will remain around $50 to $55 per kilowatt-hour for the decade. This decline is expected to boost electric vehicle (EV) adoption, increasingly without reliance on government subsidies, driven by the falling costs of battery packs.
China dominates these market dynamics, controlling over 80% of the mineral processing market and 70% of global lithium production capacity. This dominance sets most pricing benchmarks based on Chinese production costs, which are generally lower than those in Europe or the U.S.
Technological innovations are accompanying these economic changes. The industry is shifting from traditional LFP and NMC chemistries to newer options like nickel-cobalt-aluminium (NCA), sodium-ion, and lithium-manganese-iron-phosphate (LMFP). These developments mark strides toward more efficient, cost-effective, and diverse battery technologies, enhancing application range and sustainability.
Continuing through this decade, the ongoing decrease in lithium battery cell costs, coupled with technological advancements, is set to transform the energy storage and automotive sectors, expediting the shift to more sustainable energy solutions.
Improving Battery Technology
Advancements in anode materials, moving from graphite to silicon-enhanced graphite and eventually to pure silicon and lithium metal, highlight the push to improve energy density and efficiency. On the cathode side, there is a shift from traditional nickel-manganese-cobalt (NMC) to lithium-sulphur, aiming for higher energy and lower costs.
Electrolyte technology is also advancing, transitioning from organic liquids to gel or polymer semi-solids and finally to solid-state electrolytes, significantly boosting safety and performance. Similarly, separator technology has evolved from polyphenol to cellulose and non-woven materials, enhancing battery stability and efficiency.
However, no single battery chemistry yet meets all the desired criteria—cost-effectiveness, high energy density, long cycle life, and superior safety. For example, while NMC 811 offers high energy density, it performs poorly at high temperatures, limiting its use. Conversely, lithium-iron-phosphate (LFP) excels in cycle life but lacks in energy density.
Looking ahead, solid-state batteries are seen as a promising solution, potentially exceling in all key parameters, though much of this technology remains experimental. Currently, options like sodium-ion batteries have reached the commercial stage.
Due to active research and development, forecasts indicate that battery chemistry could change significantly in the next five years. While no ‘perfect’ battery exists yet, continuous innovation is vital for addressing the diverse and growing demands of global energy storage.
The ongoing advancements in battery technology not only promise better performance and safety but also underscores the vibrant nature of this research field. These developments may soon lead to batteries surpassing current expectations and sustainably power our future.
The Future of Energy Storage
The battery technology landscape is rapidly evolving, with sodium-ion batteries becoming increasingly significant, particularly in warmer climates like India. Known for their strong performance in extreme temperatures and under high-power applications, sodium-ion batteries have a lower energy density than lithium-iron-phosphate (LFP) batteries, necessitating larger packs. Nonetheless, their development is advancing, with multiple variants in early production and ongoing research to enhance their viability.
Advancements in anode materials such as lithium titanate (LTO) and silicon anodes are also pivotal. LTO anodes are prized for their safety and longevity, excelling in cold environments with rapid charging, although higher costs and lower energy density limit their adoption. Silicon anodes, bonding with four lithium ions compared to carbon’s, promise a significant increase in energy density, potentially up to 3,500mAh/g. However, challenges like volume expansion during charging and high development costs remain.
On the cathode side, the high cost of lithium, accounting for over 60% of cathode costs, has prompted research into more affordable alternatives.
Sodium-ion batteries offer several advantages beyond performance. Their production from abundant sodium reduces dependency on volatile and costly lithium supplies. They can also be manufactured using existing lithium-ion processes, making them about 30% cheaper than traditional lithium-ion batteries. Additionally, they can be safely discharged to zero and transported without risk.
Sodium-ion batteries maintain over 90% of their capacity even at temperatures as low as minus 10 degrees Celsius, ideal for harsh climates in regions like Ladakh and Rajasthan. The environmental impact of sodium-ion batteries is lower due to less intensive sodium extraction and easier end-of-life recycling.
As the market grows, companies like Reliance are ramping up sodium-ion battery production to boost commercial viability. These efforts, alongside ongoing innovations in battery technology, are set to revolutionise the energy storage and automotive and stationary storage sectors, making sodium-ion batteries a key player in a sustainable energy future.
The Complex Engineering of Battery Packs
While the focus on batteries often centres on the cells, the complexity of battery packs, comprising over 80 different sub-components, is frequently overlooked. These battery packs are more than just containers for cells; they are intricate assemblies crucial for operational efficiency.
Central to a battery pack’s complexity is the battery management system (BMS), which includes microcontrollers and over 100 active and passive components. The BMS is essential for monitoring and managing the battery’s health and functionality. Modern BMSs are evolving beyond internal hardware to become integrated, cloud-based systems with advanced analytics and remote management capabilities.
The design of a battery pack also heavily involves semiconductor and software technology alongside chemistry. Safety components like thermal materials and breather valves are vital for maintaining stability under various conditions. The pack’s electrical architecture, including connectors, fuses, and busbars, is fundamental for safe and reliable power distribution.
There is a growing emphasis on enhancing battery software capabilities. Today’s BMSs handle tasks like cell balancing. They are advancing to incorporate predictive functionalities through machine learning and AI, enabling the creation of a battery’s digital twin for real-time adjustments based on operational needs.
Battery technology advancements are swiftly evolving, focusing on higher energy densities and quicker charging times, emphasising sustainability. Innovations are increasingly using abundant materials and reducing carbon footprints, with emerging chemistries like sodium-ion and lithium-sulphur promising greater energy capacities and more efficient charging solutions.
As global interest in EVs accelerates, tied closely to advancements and cost reductions in battery technology, it’s clear that the future of transportation is electric. A decade ago, high battery costs limited EV adoption; now, with prices dipping below $100 per kilowatt-hour, EVs are becoming increasingly accessible and famous worldwide. This surge is supported by governmental incentives and regulatory measures aimed at fostering sustainable transportation. Yet, the global shift towards EVs masks regional variations, notably in India, where the focus may be more on two-wheelers and three-wheelers, which require different battery solutions suited to local needs and conditions. As battery technology evolves, addressing these diverse demands will be crucial in shaping a sustainable, electrified future on a global scale.
| Enhancements in NMC battery formulations |
| Advancements in nickel-manganese-cobalt (NMC) battery technology focus on increasing nickel content while reducing cobalt. This strategy enhances energy density but also affects other key performance metrics. Energy density: Current NMC 811 batteries achieve between 275-300 Wh/kg. Safety and cycle life: Safety levels are lower and cycle life shorter in high-nickel NMC 811 compared to NMC 532. Cobalt reduction: Efforts to decrease cobalt use address its high cost and critical supply and ethical mining issues, enhancing sustainability. Continuous improvement: Manufacturers have recently extended the cycle life from 1500 to 2000 cycles. Ongoing improvements in NMC technology demonstrate a promising trajectory toward higher performance and reduced reliance on critical minerals, signalling a robust future for battery technology in various applications. |
This article is put together from a tech talk session at EFY EXPO 2024, PUNE by Venkat Rajaraman, Founder/CEO, Cygni Energy. Transcribed and curated by Nidhi Agarwal, Technology Journalist at EFY.
