sustainable and affordable options for their communities.
Lithium-Ion Batteries
Battery Production Most of the world’s EV battery supply is manufactured in Asia. The top five battery companies are China’s Contemporary Amperex Technology (CATL), Japan’s Panasonic Corporation, China’s BYD, South Korea’s LG Chem LTD, and South Korean’s Samsung SDI. Less than 3% of the global demand for EV batteries is supplied by companies outside of China, Japan, or Korea. Even battery manufacturers that originate in countries outside of these three eventually tend to move to these countries, because of existing infrastructure and low permitting costs. Despite this geographic concentration of battery production, car manufacturers, policy makers, and potential battery suppliers have powerful economic and strategic incentives to strengthen local battery production. In areas of high demand, such as Europe and the United States, dependence on Asian battery manufacturers puts auto manufacturers at a disadvantage with competitors that are closer and better able to access battery supply. The emergence and spread of COVID-19 has negatively influenced the battery supply chain, decreasing supply and increasing prices, and causing logistical and production delays. In February 2020 alone, the price for lithium hydroxide increased by more than 3%. With the supply chain located far from consumers, these complications will further affect battery production oversight.
Source: Let’s Talk Science
The most popular type of electric vehicle battery is made of lithium-ion. In this type of battery, the lithium flows between the anode and the cathode, which generates charge. In 1980, the American physicist John Goodenough invented the current lithium battery model in which the lithium travels from one electrode to another as a positive ion. This was a groundbreaking invention, as lithium is very light and also has a large electrochemical potential. This innovation meant this new battery could be extremely powerful while staying compact, which is central to increasing an EV’s range and performance. Lithium-ion has a low self-discharge rate, which allows the battery to retain maximum stored energy for many years. Unlike other battery alternatives, lithium-ion batteries do not require any active maintenance, which reduces consumer cost. Weaknesses of Lithium-Ion Batteries Despite its many strengths, lithium-ion batteries are far from the perfect choice for EVs. They are expensive to build and install relative to a gasoline powered engine. Because of the lithium and cobalt in the battery, lithium-ion production costs are still 40% higher than nickel batteries – one of the main lithium-ion alternatives. Cobalt is also a finite resource, so eventually over-mining will become a problem.
EV Battery Benefits, Challenges, & Trends
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