Competition driving innovation in Lithium-ion battery market

Electric vehicle battery and wiring (fires)
EV battery (Image: Shutterstock)

Competition in the EV sector is driving Lithium-ion battery innovation, according to Dr Jawahar Nerkar, Magnis Energy Technologies director of battery technologies, who believes growing demand can also be a catalyst for a more circular economy in the Li-ion cell industry.

Through its Tanzanian graphite mining project, and US-based graphite Anode Active Material plant and Lithium-ion battery operation iM3NY, Magnis Energy Technologies is at the forefront of the graphite industry which is being propelled by the demand for Li-Ion batteries for electric vehicles (EVs).

Related article: Australia’s Magnis to supply graphite for Tesla batteries

“The electrification of the transportation sector alone is expected to account for 80% of the global battery demand by 2030,” Dr Jawahar says.

“EV manufacturers are competing to provide consumers with optimum range vehicles powered by high-capacity, high-energy density, safe, sustainable, and cost-effective Lithium-ion batteries. To do this, EV manufacturers are forming strategic partnerships with innovative Li-ion battery manufacturers, who in turn, are employing advanced battery chemistries, battery pack designs, and processing technologies in their batteries.”

Dr Jawahar observes that competition-driven innovation is pushing battery manufacturers to utilise next-gen materials such as Ni-rich cathode materials and higher loading of silicon in graphite composite anode in batteries to enhance energy density, while next-gen technologies offering fast charging capability are also sought.

“The commercial viability of alternative high-energy density technologies such as high-voltage cathodes, lithium-sulphur, solid state electrolytes, and lithium metal anode is being explored,” Dr Jawahar says.

“At the same time, solvent-free Dry Electrode Manufacturing and Cell to Pack battery assembly are being pursued as processing and cell engineering battery technologies respectively.

The demand for EVs and Lithium-ion batteries is increasing graphite demand which is poised to surpass the capacities of existing graphite mines, with supply forecasted to be in deficit by 2025 according to Macquarie’s Graphite Market Outlook.

“Irrespective of a battery’s cathode chemistry over the coming decade, graphite will remain the predominant AAM in Li-ion batteries, therefore securing the supply of these critical components to meet demand and mitigate production delays is crucial,” says Dr Jawahar, who believes enabling a circular lithium-ion battery economy will reduce the burden on securing raw materials and improve inefficiencies.

“Scrap and waste formation, a major Li-ion battery process inefficiency, will benefit from the adoption of more sustainable solutions such as recycling and repurposing battery components.”

Energy use and environmental impacts are significant issues in upstream lithium-ion battery production.

“The majority of battery raw material production is takes place in China, with the refinement dependent on energy and toxic-chemical intensive processes predominantly powered by fossil fuels,” Dr Jawahar says.

“Using renewable energy sources over conventional power sources across the whole Li-ion battery supply chain can help mitigate these inefficiencies.”

Government policy plays a crucial role in the development of the lithium-ion battery sector. International policies including the US Inflation Reduction Act, the US Bipartisan Infrastructure Law, the EU Green Deal, Canada’s Critical Minerals Strategy, and India’s FAME II Strategy are bolstering the international market. For companies under the US Inflation Reduction Act, financial incentives are dependent on non-Chinese graphite being used in projects, driving continued global opportunities for graphite mining and Li-ion battery development.

Related article: New membrane tech promises cleaner, cheaper, faster lithium

“Like the US Inflation Reduction Act and the European Commission’s incentives, Australian Federal agencies should investigate equivalent incentives for domestic battery cell manufacturing,” Magnis chair Frank Poullas says.

“Supporting businesses across all sectors of the lithium battery value chain will attract investors with certainty around the viability of the commercial scale manufacturing. Supportive international trade agreements that will benefit Australian manufacturers’ access to North American, European and Asian markets also warrant discussion.”


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