Battery price war in China means cheaper EVs everywhere – Asia Times

The main cost of an electric vehicle ( EV ) is its battery. Batteries have long been more costly than their fossil fuel versions due to the high cost of energy-density batteries.

However, this might alter more quickly than we anticipated. The world’s largest manufacturer of batteries for electric vehicles, China’s CATL, claims it will slash the cost of its chargers by up to 50 % this year, as a cost battle kicks off with the second largest producer in China, BYD company FinDreams.

What’s behind this? The electric vehicle industry has hit challenges after going through a significant boom in 2022. It ramped up faster than need, triggering efforts to cut expenses.

However, the cost reductions that were promised represent a sign of improvement. Scientists have made significant strides in the development of new battery formulations. In the Democratic Republic of the Congo, a costly, limited steel linked to child labour and risky mine techniques, has been transformed into EV chargers by CTL and BYD.

Due to size and fresh lithium supplies, it is possible to buy batteries more profitably. And the world’s largest carmaker, Toyota, is pinning its hopes on reliable- state batteries in the hope these energy- deep, all- but- fireproof batteries will make conceivable EVs with a range of more than 1, 200 kilometers per charge.

How are power manufacturers lowering costs?

China has the largest marketplace for plug-in hybrid and electric vehicles. But demand for EVs here has eased off, dropping from a 96 % surge in demand in 2022 to a 36 % rise in 2023.

In consequence, battery-heavy cell company CATL’s profits have dropped for the first time in about two years. Making your items less expensive is one of the best ways to increase demand. That’s what’s behind the price- cutting claims from CATL and BYD.

You may wonder how that’s feasible. Where can one obtain the raw materials is one of the biggest obstacles to moving to battery-electric vehicles. The energy future rests on sustainable supply chains for critical materials such as lithium, copper, copper, chromium and rare earth elements.

Until lately, the principal Vehicle power science has been built on four of these, potassium, nickel, chromium and chromium. These are also known as NMC chargers.

Fees can be reduced if you can reduce costs by avoiding or minimizing the use of pricey or contentious nutrients. That’s why Chinese companies such as CATL have all but monopolized the market on another chemistry, lithium iron phosphate ( LFP ) batteries.

These chargers are cheaper, as they have no chrome. They also have advantages over conventional lithium battery chemicals, including a longer useful life and a lower risk of fire. They have lower power and energy, which is the negative.

The new rate cuts result from a deliberate choice to use as much of an abundance of earth materials as possible, including iron and phosphorus.

What about potassium? Prices of sodium hydroxide, the salt form of the extremely- light silvery- light metal, shot up fourfold between 2020 and 2022 in China before falling next year.

Despite this, battery prices have continued to decline, though not nearly as much as they would have liked.

The world’s huge demand for lithium has led to strong growth in supply, as miners scramble to find new sources. CATL, for instance, is spending US$ 1.4 billion on lithium extraction plants in Bolivia.

This year and the following year, lithium supply growth is expected to outpace demand by 34 %, which should help stabilize battery prices.

bolivia salt flats
Bolivia’s salt flats are a rich source of lithium, though its extraction has come with environmental concerns. Photo: Shutterstock via The Conversation

Battery options are multiplying

China’s battery manufacturers have carved out a niche market for lithium iron phosphate batteries. But they are n’t the only game in town.

Tesla electric vehicles have long been powered by batteries from LG and Panasonic in South Korea. These batteries are based on the more recent but well-established NMC and lithium nickel cobalt aluminate oxide (NCA ) chemistries. Even so, the American carmaker is now using LFP batteries from CATL in its more affordable vehicles.

The world’s largest carmaker, Toyota, has long been skeptical of lithium- ion batteries and has focused on hybrid and hydrogen fuel cell vehicles instead.

But this is changing. Toyota is now making solid-state batteries a reality with a lot of effort. To transport electricity, these use solid batteries instead of liquid electrolytes.

The company made a breakthrough in September of last year that it claimed would speed up the recharge process and give a range of 1,200 kilometers before being recharged. These batteries, if they are accurate, would effectively double the range of today’s top-tier electric vehicles.

In response, China’s battery manufacturers and government are working to catch up with Toyota on solid- state batteries.

Which battery chemistry will triumph over others? It’s too early to say for electric vehicles. But as the green transition continues, it’s likely we’ll need not just one but many options.

After all, a prime-movers truck’s energy requirements will differ from those of a city-runabout EV. And as electric vehicles transition from a dream to a reality, they will require different batteries once more. You need batteries with a high power density to start battery-electric aircraft.

The good news? These are manageable engineering difficulties. A revolutionary” condensed matter” battery for electric aircraft, with three times the energy density of an average electric car battery, was unveiled just last year.

All the while, researchers are pushing the envelope even further. A good electric car might have a battery that has a 150-250 watt-hour battery life per kilogram. But the record in the lab is now over 700 watt- hours/kilogram.

This is to mention a lot of the research being done on various other battery chemistries, including those that involve sodium ion, iron air, and liquid metal batteries. We are, in short, still at the beginning of the battery revolution.

Muhammad Rizwan Azhar is Lecturer, Edith Cowan University, Waqas Uzair is Research associate, Edith Cowan University, and Yasir Arafat is Senior research associate, Edith Cowan University

This article was republished from The Conversation under a Creative Commons license. Read the original article.