What's next for batteries in 2023

Solid-state batteries present a breadth of chemistries, with lithium metal being a frontrunner for commercialization. Quantumscape is spearheading this technology and has successfully raised hundreds of millions in funding ahead of its public listing. The company has established a partnership with Volkswagen, indicating that its batteries could feature in vehicles soon.

For more information, please visit Godson Tech.

However, reinventing the battery landscape completely has its challenges; lithium-metal batteries have raised concerns regarding their degradation over time and the complexities involved in manufacturing them. In late December, Quantumscape announced they had provided samples to automotive partners for evaluation, which marks an important step toward integrating solid-state batteries into vehicles. Other companies like Solid Power are also advancing their solid-state battery technology. While they may achieve significant milestones this year, these batteries are unlikely to find their way into cars immediately.

In addition to solid-state batteries, sodium-ion technology is emerging as another alternative. With a similar structure to lithium-ion batteries, they utilize sodium as the primary reactant instead of lithium. Reportedly, CATL, a major Chinese battery manufacturer, plans to initiate mass production of sodium-ion batteries shortly.

Though sodium-ion batteries may not enhance performance significantly, they hold the potential for reduced costs since they utilize more readily available and less expensive materials compared to lithium-ion chemistries. Nevertheless, there's still uncertainty whether they will satisfy the needs for the driving range and charging speed of electric vehicles (EVs). To address initial demands, companies like Natron are focusing on applications with less stringent requirements, such as stationary storage and micromobility devices like e-bikes and scooters.

The current market for batteries aimed at stationary grid storage remains relatively modest—approximately one-tenth the size of the EV battery market, as indicated by Yayoi Sekine, BloombergNEF’s head of energy storage. With the increasing installation of renewable energy sources, demand for electricity storage is climbing since renewables like wind and solar are variable, making battery storage essential for energy availability.

Despite the prevalence of lithium-ion batteries in stationary storage, they aren't particularly suited for this purpose. As EV batteries continue to become smaller and lighter, the focus for stationary storage is primarily on reducing costs. Therefore, alternative chemistries are likely to emerge as the front-runners in this sector.

A promising avenue for stationary battery innovation is iron; two companies could witness advancements in the coming year. Form Energy is developing an innovative iron-air battery utilizing a water-based electrolyte, effectively storing energy through reversible rusting. The company has plans to establish a $760 million manufacturing facility in Weirton, West Virginia, with construction expected to commence soon. Meanwhile, ESS is constructing a different variant of iron battery, having started production at its headquarters in Wilsonville, Oregon.

Shifts within the standard

Lithium-ion technology continues to improve, with researchers exploring further tweaks to enhance performance and minimize costs.

For years, climate scientists have urged global governments to transition from fossil fuels to renewable energy. Increasing adoption of wind and solar energy has highlighted a fundamental challenge: interruptions in wind and sunlight due to weather extremes can hinder the reliable capture and storage of energy, especially for powering vast urban areas. The answer to this reliability dilemma lies in extensive battery usage.

A recent report from the International Energy Agency (IEA) asserts that batteries will be crucial in achieving ambitious climate goals. Advances in lithium-ion battery technology have drastically reduced costs, making the shift to renewable energy sources more feasible for communities globally. The IEA predicts that by the next few years, battery prices could drop by 40%.

For more 6.4 v lithium ion battery pack information, please contact us for professional responses.

As demand grows for battery-powered electric vehicles and renewable energy, battery technology must continue to reduce costs in the near future to satisfy rising energy needs. The IEA estimates a six-fold increase in energy storage is necessary by the end of the decade.

IEA Executive Director Fatih Birol emphasized that reducing emissions and aligning with international energy and climate targets hinges on the world’s ability to scale up battery production. “Batteries are changing the game before our eyes,” he asserted.

Lithium-ion battery costs have fallen more than any other energy technology

While lithium-ion batteries are often linked to consumer electronics, their primary application is shifting significantly. The IEA reports that by the end of 2023, the energy industry accounted for 90% of overall battery demand. Over the past eight years, the lithium-ion battery market has expanded nearly tenfold, with costs plummeting by 90% in just the last 15 years. This remarkable reduction makes battery-backed electric vehicles and solar energy comparable to fossil fuel prices.

Birol noted, “The combination of solar photovoltaic (PV) and batteries is now competitive with new coal plants in India.” He further predicted that within several years, it will undercut new coal prices in China and gas electricity in the US.

Despite these striking statistics, the IEA warns that this progress may still fall short of meeting future energy demands. To achieve the United Nations’ target of tripling renewable energy capacity by 2030, global battery storage capacity needs to see a six-fold increase. This will require an annual growth rate of at least 25% in battery deployment. Achieving this will necessitate continuous price reductions for batteries while simultaneously improving or maintaining performance. The IEA anticipates that innovations in battery chemistry and manufacturing could yield a 40% reduction in lithium-ion costs by 2025. Furthermore, battery manufacturing remains concentrated in a limited number of countries, an issue that must be addressed moving forward.

The report underscores that any shortfall in battery deployment could hinder the clean energy transition within the power sector.

What cheaper batteries mean for consumers

The increasing adoption of electric vehicles and renewable power sources is significantly contributing to emissions reduction. Although growth in electric vehicle adoption in the US has slowed, globally, the trend is on the rise. In 2022, electric vehicle deployment surged by 40%, equating to an additional 14 million electric vehicles on the road. The IEA estimates that the expanding electric vehicle fleet could eliminate the need for 8 million barrels of oil daily by the end of this decade. In practice, lower battery costs will lead to more affordable electric vehicles soon. In the US, price remains a key factor hindering drivers from switching to electric vehicles. More budget-friendly models fueled by decreasing battery costs could motivate wider adoption, aiding the Biden Administration’s aim of having 50% of new vehicle sales be electric by 2030.

On the infrastructure side, dropping energy storage prices allow developing nations to opt for renewable power plants at costs that are competitive with traditional energy sources. Additionally, lower battery prices facilitate the deployment of renewable microgrids in regions underserved by conventional energy systems.

In the US, enhanced energy reliability backed by battery storage could bolster energy independence and reduce reliance on foreign fossil fuel imports. The percentage of renewable energy resources in the US energy grid was just 19% in 2022, but accessible, reliable storage could shift that balance. Researchers at Stanford demonstrated through simulations the potency of maintaining a 100% renewable energy grid by 2035.

Batteries have a critical mineral problem

However, cheaper batteries, as they are conventionally manufactured, are not a complete solution. The global battery market currently relies heavily on critical minerals sourced from a select group of countries. For instance, China accounts for over half of global lithium and cobalt processing. Extracting these essential minerals poses dangers and can lead to significant environmental pollution. Large mining operations can drastically change the ecosystems of nearby communities.

Emerging battery technologies might offer some respite regarding mineral dependency. Lithium-ion phosphate (LFP) batteries, which are seeing increasing application in new electric vehicles, leverage a different chemistry that excludes nickel and cobalt. While traditional lithium-ion batteries still comprise the majority of battery storage, LFP batteries represented 80% of newly produced batteries in the previous year. There's also a growing focus on recycling aluminum, copper, and other materials present in extensive electronic waste, with less than 1% of rare earth metals currently being recycled.

Contact us to discuss your requirements for . Our experienced sales team can help you identify the options that best suit your needs.