The challenge of acquiring sufficient quantities of cobalt, a base element used in lithium-ion batteries, is an ongoing threat for their production ramp-up, says Tejs Vegge from the Department of Energy Conversion and Storage at Denmark’s Technical University. Most li-ion batteries derive their high energy density from the energy discharge process facilitated by application of a cobalt oxide cathode. The batteries contain more cobalt than lithium.

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“If we’re to use the lithium-ion chemistry we have today for stationary storage systems on a global scale, we’re going to run short of cobalt. The resource limitations mean that li-ion is not a never-ending, scalable solution. The lack of cobalt will put a limit on how far prices can come down,” he says.

From Benchmark Mineral Intelligence, analyst Caspar Crawles agrees. “Security of supply is a major concern for many cathode and cell manufacturers. The supply chains for the minerals are currently under a lot of strain, and this is at a time when electric vehicles are really yet to take off,” he says.

“We are already in a situation where Benchmark is forecasting deficits in both the lithium and cobalt markets by 2021, so the supply of these critical minerals could potentially impact the amount of cells that can be produced,” Crawles adds.

Cobalt is mined in several countries, including Australia, Chile, Indonesia, China and Peru, but 64% of the global resource lies in the Democratic Republic of Congo, a politically unstable country where child labour is a major concern.

Li-ion battery producers are working to reduce the amount of cobalt employed in the storage and discharge process.

TEXT Henrik Bendix