Consumer Discretionary

Evolution Of Battery Technology For The Emerging Global EV Market

<p style="text-align: justify;">As the EV future barrels into the passenger vehicle market, it is transforming the global battery industry toward large-scale, commercial manufacturing operations that are supported by emerging regionalized supply chains. &nbsp;</p><p style="text-align: justify;">&nbsp;</p><h2 style="text-align: justify;"><span style="font-size: 14pt;">Market Trends of Electric Vehicles&nbsp;</span></h2><p style="text-align: justify;">Global sales of 6.6 million electric vehicles in 2021 consumed over 280 GWh of Lithium-Ion battery cells valued at almost 30 B USD. This is double the EV Battery market of 2020.&nbsp;</p><p style="text-align: justify;">The phenomenal growth rate of EV production since 2018 motivates evolving battery designs and chemistries as auto OEMs compete for EV market share in the nascent market. &nbsp;</p><h2 style="text-align: justify;">&nbsp;</h2><h2 style="text-align: justify;"><br /><span style="font-size: 14pt;">Recent Technology&nbsp;</span></h2><p style="text-align: justify;">Electrolyte solutions are evolving toward mixtures with additives that extend battery life by suppressing or limiting the detrimental effects of side reactions. Si-rich anodes and Ni-rich cathodes are replacing "conventional" lithium electrode chemistries based on graphite anodes and cobalt-rich mixed transition metal oxides - driving down the cost of energy storage materials and improving energy density. &nbsp;</p><p style="text-align: justify;">Solid-state electrolytes of various forms enable liquid-free technologies with lithium metal anodes to eliminate low-temperature failure modes, even as liquid electrolytes that are compatible with lithium metal and high-voltage cathodes emerge.&nbsp;</p><h2 style="text-align: justify;">&nbsp;</h2><h2 style="text-align: justify;"><span style="font-size: 14pt;">Conclusion&nbsp;</span></h2><p style="text-align: justify;">Today, the EV Battery space is growing faster than ever with a host of market, product development, and industry dynamics as supply chains, installation of manufacturing capacity, and innovation drive the auto industry into electrification.</p><p style="text-align: justify;">&nbsp;</p><p style="text-align: justify;">&nbsp;</p><p style="text-align: justify;"><span style="font-size: 10pt;"><em>This article was contributed by our expert <a href="" target="_blank" rel="noopener">Ron Turi</a></em></span><br />&nbsp;</p><p style="text-align: justify;">&nbsp;</p><h3 style="text-align: justify;"><span style="font-size: 18pt;">Frequently Asked Questions Answered by Ron Turi&nbsp;</span></h3><p style="text-align: justify;">&nbsp;</p><h2 style="text-align: justify;"><span style="font-size: 12pt;">1. How do emerging regionalized supply chains affect the manufacturing and distribution of Lithium-Ion Battery Cells in the global EV market? </span></h2><p style="text-align: justify;">In the region, incentives have a significant impact, as demonstrated by the EU Commission that addressed underwriting every industrial step in the EV battery life cycle and more recent /more intense support by the US Inflation Reduction Act that has already buoyed the supply chain development and planned production of EV cells in North America. &nbsp;</p><p style="text-align: justify;">&nbsp;</p><h2 style="text-align: justify;"><span style="font-size: 12pt;">2. How do advancements in battery technology impact the overall sustainability and environmental impact of the EV industry?&nbsp;</span></h2><p style="text-align: justify;">An excellent example of the simultaneous improvement in cost-effectiveness, performance, sustainability, and lessening of environmental impact is the incremental increase of silicon content in otherwise graphitic anodes. &nbsp;</p><p style="text-align: justify;">Similar incremental improvements in CAM and other LIB cell components narrow the gap with the larger, step-change technology changes such as lithium metal anode and solid-state electrolyte. &nbsp;&nbsp;</p><p style="text-align: justify;">&nbsp;</p><h2 style="text-align: justify;"><span style="font-size: 12pt;">3. What is the current state of infrastructure for electric vehicles, and what needs to be done to support the growth of the market?</span></h2><p style="text-align: justify;">Increasing the EV cell manufacturing base is a major task for automakers and their EV Cell maker partners. EV charging infrastructure is likewise expanding as a self-sustaining market for equipment makers/leasers but also for a growing number of utilities that regard EV Charging as a secure future revenue stream. &nbsp;</p><p style="text-align: justify;">&nbsp;</p><h2 style="text-align: justify;"><span style="font-size: 12pt;">4. How do EV manufacturers balance the competing demands of energy density, cost, and safety in developing new battery chemistries and designs?&nbsp;</span></h2><p style="text-align: justify;">Indeed, the complexities of EV Cell and EV Battery design incorporate many facets that often result in contradictory directions. The ultimate decisions rest with the automaker and its risk tolerance for a combined set of safety, performance, and value characteristics in the context of vehicle type and fleet-wide objectives considering competitive products. For example, the BYD Blade uses LFP with fewer cooling elements to achieve higher energy density for an LFP pack while retaining its intrinsic safety advantage. The modularity and ease of installation provide further specific design advantages - although none are optimized for extremes as many other EV Battery makers do.&nbsp;</p><p style="text-align: justify;">&nbsp;</p><p style="text-align: justify;">&nbsp;</p><p style="text-align: justify;">&nbsp;</p>
KR Expert - Ron Turi

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