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The Skyrocketing Demand for EVs and Their Batteries
Energy Business Review | Monday, April 24, 2023
The world runs more and more on batteries every year. Previously, electric vehicles passed 10 per cent of global vehicle sales and will reach 30 per cent by the end of this decade.
FREMONT, CA: Lithium-ion batteries, a decades-old technology widely used in computers and cell phones, power the majority of EVs today. Since EVs can already go hundreds of miles between charges and are priced close to gas-powered automobiles thanks to years of development, they are more affordable and perform better. New uses for lithium-ion batteries are also being discovered, such as grid electricity storage that can help balance out erratic renewable energy sources like wind and solar.
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There are, however, still many development opportunities. Both companies and academic lab facilities are looking for methods to advance the technology, increasing capacity, shortening charging times, and lowering costs. The ultimate goal is even more affordable batteries that will enable cheap grid storage and significantly longer ranges for EVs.
At the same time, concerns over the availability of essential battery components such as cobalt and lithium are driving a quest for alternatives to lithium-ion chemistry. One thing is certain that batteries will be crucial to the transition to renewable energy, despite the increasing demand for EVs, renewable energy, and battery development.
While it may take longer for some radically new methods of EV batteries to have an influence on the market, advancement in these areas could occur this year. This year's advancement in so-called solid-state batteries is one to watch out for. Solid-state batteries substitute the liquid electrolyte used in lithium-ion batteries and related chemistries with ceramics or other solid materials.
This modification makes it possible to store more energy in a smaller amount of space, potentially extending the driving range of electric vehicles. Solid-state batteries may also move charge more quickly, resulting in shorter charging periods. Solid-state battery proponents assert that by reducing the risk of fire caused by some of the solvents used in electrolytes, which can be flammable, they increase safety.
Although many different chemistries can be used in solid-state batteries, lithium metal is the most likely to be commercialised. But entirely redesigning batteries has proven challenging, and issues with manufacturing and long-term degradation of lithium-metal batteries have emerged. Few companies announced delivering samples to automotive partners for testing, a consequential milestone on the road to getting solid-state batteries into cars.
There are other emerging technologies than solid-state batteries to consider. A considerable departure from the prevalent lithium-ion chemistries is also made by sodium-ion batteries. These batteries have a structure resembling that of lithium-ion batteries, with a liquid electrolyte, however, sodium is used as the primary chemical component instead of lithium.
Although sodium-ion batteries do not increase performance, they may reduce prices since they use less expensive and more generally available materials than lithium-ion chemistries. However, it's unclear whether these batteries will be able to meet demands for EV range and charging time. For this reason, several companies vying for the technology are focusing on less demanding applications like stationary storage or micro-mobility devices like e-bikes and scooters.
The market for stationary grid storage batteries is currently small, roughly one-tenth the size of the market for EV batteries. Different chemistries will probably prevail since grid storage is less affected by size and weight.
Even though they are frequently used nowadays for stationary storage, lithium-ion batteries are not the best choice. While EV batteries are getting smaller, lighter, and faster, fixed storage's main objective is to be less expensive. Different chemistries will probably prevail since grid storage is less affected by size and weight. Since lithium-ion batteries are constantly improving and becoming more affordable, scientists are still working to improve the technology's performance and reduce its price.
Although lithium-ion batteries are constantly improving and becoming more affordable, scientists are still working to improve the technology's performance and reduce its price. The price volatility of battery components, which could force businesses to switch chemistries, is one source of inspiration. The cathode is often one of the more expensive components of a battery, and NMC (nickel manganese cobalt) cathodes are currently the most common kind used in EV batteries. Lithium is the most expensive of the four components, eliminating some or all of them could help minimise expenses. Lithium iron phosphate (LFP), a low-cost cathode material occasionally used for lithium-ion batteries, may experience a breakthrough this year.
The performance of these batteries has been boosted with the recent improvements in LFP chemistry and manufacturing. Owing to this, companies are moving to adopt the technology. From 10 per cent of the global EV market to 40 per cent, the LFP market is growing quickly.
Although cathode chemistries are typically the focus of battery research, anodes are also expected to change. Graphite is the material of choice for most anodes in lithium-ion batteries nowadays, regardless of the cathode composition. However, substitutes like silicon might assist boost energy density and quicken charging.
The development of new technology enables current Lithium-ion batteries to be charged up to five times faster than the maximum rates advised by experts. Compared to current techniques, the system continuously measures a battery's temperature with much greater accuracy. It has been discovered that current batteries can be overcharged without negatively compromising performance or overheating.
Eventually, there will be more and more demand for the key ingredients in lithium-ion batteries, including nickel, lithium, and cobalt.
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