With millions of electric cars on the road today, the automotive industry is changing, and the need to manage end-of-life batteries is becoming more pressing. End-of-life battery management helps keep materials in circulation while decreasing reliance on mining. Experts say the time is now to begin planning for battery management.
Lead-acid batteries
The batteries used in electric cars are one of the most expensive components of these vehicles. As their capacity and power diminish over time, they must be replaced at some point. According to IDTechEx, 6 million battery packs will retire annually by 2030. The solution, experts say, is to recycle them and extract the raw materials they contain.
New battery regulations will require manufacturers to recover at least 70% of their battery material, and to ensure that the metals used in batteries are recovered to a high standard. This includes a 95% recovery rate for lead, nickel, and cobalt, and a mandatory minimum percentage of recycled content in new batteries by 2030.
While electric cars are much more environmentally friendly than gas cars, the manufacturing process for batteries is very energy intensive. This contributes to millions of tonnes of carbon emissions annually. One study found that reusing batteries from electric cars could cut those emissions by 60 million tonnes a year. The cost of a new battery pack varies greatly depending on its type, size, and make. Premium batteries can cost up to $200.
Panasonic is one of the largest manufacturers of EV batteries. The company has been a supplier to Tesla for several years, and its Nevada facility is expanding to meet the growing demand. Panasonic also plans to expand its EV battery factory by 2021. This company is producing EV batteries at a rate of more than 200,000 per year.
The global auto industry is committed to a transition to electric vehicles. Several companies are already investing heavily in EVs, and many more are planning to sell as many as possible by 2030. Ford, for example, has a goal of selling 50% of electric cars globally by 2030.
The batteries used in electric cars use a massive pack of lithium-ion batteries. Compared to the lead-acid batteries in conventional combustion engines, these batteries are lighter and have a longer life. They are also more reliable. Each lithium-ion battery has thousands of individual cells that are connected together. These cells are charged by electricity and discharged by the electric car.
Lithium-ion batteries
The battery recycling industry is a multibillion dollar industry with many challenges to overcome, but it also has tremendous opportunities. According to a report published by Greenpeace East Asia, battery recycling could provide energy to global data centres, China’s 5G infrastructure, and energy storage projects.
In the near future, the demand for lithium-ion batteries will outpace production capacity. The cost of these batteries is already one of the most expensive parts of an EV, and lowering the cost of these batteries will be a boon for the decarbonization agenda in advanced economies.
There are a wide variety of battery pack designs, with varying sizes, chemistries, and formats. Moreover, battery manufacturers are designing them specifically for automotive OEMs, which increases the difficulty of refurbishing them. By 2025, there could be more than 250 types of EVs on the road, and up to 15 manufacturers will be involved in battery manufacturing.
Lithium-ion batteries are more safe than many other battery alternatives. However, manufacturers have to take extra precautions to ensure safety. For example, electric vehicle manufacturers have built in charging safeguards to protect lithium batteries during repeated rapid charging sessions. The batteries used in EVs can also be used to power buildings and homes. Moreover, battery energy storage systems can store the energy produced by electric vehicles.
Once the battery reaches the end of its useful life, it can be recycled for minerals and critical materials. Second life applications of lithium-ion batteries can extend their lifespan and buy EV batteries an extra decade or so. Second life applications can also help recycle industries catch up.
Recycling lithium-ion batteries is also a challenge. Lithium-ion batteries do not decompose easily and have to be disposed of differently than conventional batteries. They are difficult to recycle, and require special packaging and processing. In addition, lithium-ion batteries pose a fire risk.
The second-life battery industry faces a number of challenges, but it can be enabled by targeted action from industry players. Many forward-looking players and industry associations are taking steps to address these challenges.
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