The B2B platform for full-electric and plug-in hybrid electric vehicles: Industry News

The 2nd EV Li-ion Battery Forum 2010 takes place this week on 25 - 26 August in Beijing. In the up-run to the event, one of the speakers, Ms Priya Tabaddor from Underwriters Laboratories, has elaborated on expectations for the electric vehicle battery market.  

Priya Tabaddor is the Business Development Manager and leads the Large Battery business at Underwriters Laboratories globally. In the run-up to the 2nd EV Li-ion Battery Forum 2010, she agreed to share her insights gained from long years of experience in the field and to give her perspective on the future of the lithium-ion battery market.

In Ms Tabaddor's view, battery technology based on lithium-ion chemistry is currently the technology of choice for the industry as it offers the best available combination in terms of energy density, size, weight and charge efficiencies. Compared to nickel metal hydride batteries used most recently in EVs, lithium-ion based batteries offer better energy density and charging efficiencies. However, safety, reliability and long-term durability remain concerns. Several studies have shown how internal short circuits within the battery can result in thermal runaway whereby chemical reactions triggered in the cell exacerbate heat release, potentially resulting in a fire of significant consequences.

A further issue is the battery lifespan, especially given the requirement for car batteries to operate in extreme temperature and weather conditions for a minimum of 5-8 years. User requirements for battery recharge rates also pose unique challenges. Conventional 120-V standard outlets will allow for the recharge to be complete in 6-8 hours. 240-V outlets can reduce the charge time down to 2 hours, and three-phase charging can fully charge a battery perhaps in as little as 20 minutes. In comparison to refueling at a conventional gas station, however, each of these options for recharging still seems less attractive.

Asked about trends in battery technology, Ms Tabaddor sees crucially advancing areas in the application of nanotechnology to electrodes, new electrolytes, new separators and new large-scale manufacturing processes. The trends toward smart grid deployment and increasing adoption of renewable resources in the electric utilities industry create new uses for battery storage, thereby enabling battery manufacturers to achieve scale economies in areas such as design and manufacturing.

Will there be enough lithium?

As for the fear of a lithium supply shortage, Ms Tabaddor continued:

The raw material lithium itself does not appear to be supply constrained in the near term. As demand increases and if technologies to recycle the battery material are not adequately developed, either new sources of lithium will need to be found or new battery chemistries will need to be evaluated. For now, it is our belief that industry has to mature before decisions around what battery technology will win or be lucrative can be made. New developments in cell designs and chemistries including lithium-air or solid state batteries are showing promise. These new battery designs are believed to have higher energy density than lithium-ion batteries due to the lighter cathode (oxygen) they use and the fact that the material is readily available.

Also, lithium can be recycled from end-of-life EVs. In the US, Toxco has a lithium recycling program in place and has obtained a grant of $9.5M from the US Department of Energy to develop its lithium recycling operation. If the market for electric vehicles proliferates, other companies with new technological breakthroughs in this area are likely to emerge. An alternative scenario for recycling is to find a “second life application” for used car batteries such as in the area of Community Energy Storage (CES), a term used to describe an approach where battery storage is deployed in communities or street corners to support distributed generation.

When will the prices sink?

The United States Advanced Battery Consortium (USABC) has set a battery cost target of $250 per kWh. Clearly there are challenges in lowering cost while maintaining charge efficiencies, range, reliability and durability, but the industry recognises the importance of lower battery costs for widespread consumer adoption. Standardisation of battery chemistry as it exists for portable battery applications in consumer electronics would allow economies of scale from mass production and resulting price reductions. However, given that significant questions remain around optimal battery design and chemistry, such standardisation appears to be several years in the future.

Is there room for new players?

All major car manufacturers have either acquired important equity stakes in their battery suppliers or forged other very close partnerships for strategic reasons. Considering the very high know-how and technology requirements as well as the already well partitioned battery market, the bar for new entrants is extremely high. Ms Tabaddor believes, however, that the generous growth projections for electric vehicles can support new entrants, which are likely to come from Asian countries. New players such as the Chinese BYD are showing promise and several others in the region are likely to innovate around lower cost manufacturing.

Ms. Tabaddor to conclude:

If car companies wish to lower cost of manufacturing in the long run, they will have to consider a global supply base of battery components, but evaluation of all battery suppliers and their technology in house is an expensive proposition. The need for global standards to evaluate safety, quality, reliability and performance will be critical as will independent, third party resources to support evaluation and testing of products that meets the needs of the industry and ensures safety of vehicles.

Further insights can be expected from the 2nd EV Li-on Battery Forum. cars21.com attends and reports.