Electric cars’ core technology are composed of three parts: battery. electric control and motor. Other than the electric control based on IGBT tech, battery and motor are both heavily rely on key raw material. In another words, if you want to win the competition of the EV sales market, you have to ensure the raw material supply chain…
Battery: Lithium-ion batteries are expected to be the most widely applied technology for EVs in the future. One of the main raw materials used to produce the batteries is lithium, a light metal substance. Other necessary materials include the metallic elements cobalt, manganese and nickel.
Other than lithium, which could be found in many areas of the world, cobalt and nickel are relatively difficult to be acquired. The largest known supply of cobalt is in the Democratic Republic of Congo, and the top nickel supplier is Indonesia. These two material supply chains are controlled by military governments, which made them really unstable.
Motor : Most EVs rely on permanent-magnet synchronous motor. Compared with asynchronous motor, PMSM’ advantages are lower consumption of energy, smaller and lighter, also has higher output efficiency, could help EV upgrade its capability.
PMSM use permanent magnet, made of Neodymium, Praseodymium, and Dysprosium. These rare-earth metals are mostly originated from China. Mining and refining process of REEs could pollute environment thru its by-product, therefore western countries stopped mining many years ago. China is then become the rare earth element elephant, and their share of global production is up to around 90%.
Because of the supply of these raw materials are quite unstable, more easily acquired new material research are coming for the battery production…
Sodium-ion battery: new type of rechargeable battery analogous to the lithium-ion battery but using sodium-ions as the charge carriers, which is cheaper and easily acquired.
LFP battery with energy density enhancement: Although energy density is lower than that of NCM/ NCA battery types, LFP battery has many merits, like lower cost, high safety, low toxicity , long cycle life and cobalt-free.
Enhanced version further applies the technology of CTP (cell-to-pack), in which cells also perform a structural role, saving weight and increasing energy density.
Last year a mining company from China bought Congo biggest cobalt factory, to directly supply cobalt to battery factories in China.
Solid-state battery is one battery tech that uses solid electrodes and a solid electrolyte, instead of the liquid or polymer gel electrolytes found in lithium-ion or lithium polymer batteries. Western companies found their lithium-ion battery technology is way behind Asian countries by now, they tried to use solid-state battery to “corner overtake” Asian countries .
Most of the nickel used to produce EV batteries are from mining operations in Indonesia, Russia and China. To avoid nickel shortage someday, let’s take Hyundai as an example… They joint-venture with LG to build a battery factory right in Indonesia, and plan to start mass production from 2024.
Due to lots of nickel needed in NCM/NCA lithium battery, many companies try to develop nickel-free LFP battery instead, although its performance may be inferior.
Two years ago United States Government decided to work with Australia and Ireland, said they will seek to mine and process more nickel, cobalt, and other rare earth metals and at the same time, start mining works at home land, to avoid being controlled by China. With less dependence on supply from other countries can help nations avoid high prices and availability issues.
EU also unite many countries. Research institute and battery companies, to set up a European Raw Materials Alliance (ERMA), try to work with Canada and African countries, seek to mine and process more rare earth metals.
Why are European countries acting so quickly?
As we can see, China and USA already largely control the supply chain. Industry also estimates the demand for lithium could rise to more than 60 times, rare earth metals to 10 times, and demand for cobalt also rise to 15 times by 2050.