New chemistries are required to make the battery sector more sustainable amid growing demand. To become a reality, greater investment and supportive policies need to be put in place, says Kim Grøn Knudsen from Topsoe
The views expressed are those of the author and do not necessarily reflect the position of FORESIGHT Climate & Energy
Supply chain concerns are driving research in cobalt-free batteries
Global demand for batteries has exploded over the past decade. The installed output of lithium-ion batteries alone has gone from 0.5 gigawatt-hours in 2010 to around 525 gigawatt-hours ten years later and this is just the beginning.
For the most common type of battery in use today, Bloomberg is projecting global demand to expand to over 9300 gigawatt-hours in the next decade—a startling 17-fold increase.
As the world progressively swaps from fossil fuel-based power to emissions-free electrification, batteries are becoming a vital storage tool to facilitate the energy transition.
Where countries build out renewable energy sources, batteries can help stabilise the grid. They can also help decarbonise road travel or power homes, but supplying the necessary raw materials is becoming a growing concern.
EYE OF THE STORM
Production of batteries requires a variety of metals including lithium, nickel, manganese and cobalt, among others. Procuring these can be expensive, consequently limiting the pace of electrification.
At the same time, the extraction of these raw materials also brings about a set of complex supply chain challenges.
A number of these metals are considered critical minerals and are essential for a wide range of clean technologies that are expected to significantly increase in demand, as countries and companies commit to ambitious net-zero targets.
These two factors of price and demand are the prerequisites for a perfect storm—especially as production and processing operations of lithium-ion batteries are currently concentrated in a small number of countries. The resulting supply chain vulnerability poses a serious threat to electrification.
BRIGHTER SKIES
A solution needs to be reached to scale up processes and speed up the development of producing batteries that use less critical minerals.
Similarly, the development of rechargeable batteries, which are both cost-effective and utilise resources more efficiently, is a necessary step for increased electrification.
Effectively, we need batteries with lithium-nickel-manganese oxide (LNMO) battery cells or similar features that present the above characteristics.
The absence of cobalt and the relatively low nickel content make LNMO battery cells a more sustainable and cost-effective alternative to today’s mainstream high-nickel lithium-ion battery materials.
There is a dire need for deploying cheaper, safer and more sustainable battery materials and this is a step in the right direction for a brighter future.
WHERE WE NEED TO BE
Fortunately, there is a growing consciousness among industry, investment communities and political bodies that availability, diversification, circularity and de-risking of supply sources are key to unlocking the full potential of batteries in the energy transition.
We see more battery projects being matured in Europe, but until we have established more sources of refined raw materials than from the few regions we see today, we are not anywhere close to material independence.
We still need greater collaboration to support sustainable electrification trends and expand battery applications. Not only will this improve material efficiency, but it will also reduce energy dependence.
And ultimately, what really drives progress is demonstrating how sustainable batteries benefit the everyday life of society when brought to use, for instance, in trains, e-ferries and micro-transport, and any opportunity to display this will be a great catalyst for change.
Supportive government legislation is the plug, and private investment is the charge—to keep the race to net zero alive. It is absolutely vital that these two components are accelerated hand-in-hand.•
If you have a thoughtful response to the opinions expressed here or if you have an idea for a thought leadership article regarding an aspect of the global energy transition, please send a short pitch of 200 words outlining your thoughts and credentials to: opinion@foresightdk.com
Europe will need considerable amounts of energy storage to add resilience to the grid as renewable penetration increases and to support a significant increase in the number of electric vehicles on the road. But recent commodity price rises are affecting costs for lithium-ion battery systems, creating opportunities for a raft of novel storage options
While electric vehicles have proved to be better for the environment than those running on fossil fuel, their production leaves a bigger carbon footprint than making an internal combustion engine equivalent. How batteries for EVs are produced and for how long they last are decisive for making the shift to electric transport as carbon light as possible
Governments are setting ambitious targets for the use of synthetic fuels in the aviation sector. But clarity is still needed before the industry can step up to meet these objectives, says Elena Scaltritti from Topsoe
Electrification of the energy-intensive chemicals sector is not always possible so finding alternative low-carbon processes is climbing the industry's agenda
Limitations on the supply of cobalt will restrict the production ramp-up of today’s lithium-ion batteries
For savvy investors, upstream opportunities in the EV battery market are opening up, driven by forecasts of soaring demand. Raw materials are plentiful, but mining and refining capacity of the minerals needed for high-grade vehicle batteries is under pressure, say market researchers
Leave a Reply