The Real Cost of Going Electric: Part 2 – The Battery Problem
In Part 1, we discussed the manufacturing hurdles that stand in front of mass-market adoption of Electric Vehicles (EVs). We concluded that EVs have higher emissions from manufacturing and that they rely on access to renewable electricity in order to offset those increased emissions over the operating lifespan of the car. However, that is when the EVs are compared against Internal Combustion Engines (ICE) vehicles that are burning fossil fuels. When compared against ICE vehicles using Sustainable Vehicle Fuels (SVFs) there is no clear path for EVs to offset their increased manufacturing emissions.
Today, in Part 2 of the series, we are going to take a look at the dirty world of battery manufacturing, as another one of the biggest hurdles facing the widespread adoption of EVs is the availability and sustainability of the materials needed to make their batteries.
The Battery Bottleneck
EV batteries are made of lithium-ion cells, which store and release energy by moving lithium ions between electrodes. Lithium-ion batteries are widely used in consumer electronics, such as laptops and smartphones because they have high energy density, long lifespan, and low self-discharge. However, they also require large amounts of raw materials, such as lithium, cobalt, nickel, and manganese, which are expensive, scarce, and sometimes toxic and flammable.
According to a report by the International Energy Agency (IEA), the global demand for lithium could increase by more than 40 times by 2040 under a scenario where EVs account for just 30% of new car sales (Learn more 1). The demand for cobalt and nickel could also rise by more than 20 times in the same period.
Cobalt Mining Town in the DRC (Image source: 4)
The supply of these materials is also concentrated in a few countries, which poses geopolitical and ethical risks. For example, more than half of the world’s lithium reserves are located in South America’s “lithium triangle” of Argentina, Bolivia, and Chile. More than 70% of the world’s cobalt production comes from the Democratic Republic of Congo (DRC), where child labor and human rights abuses are rampant in the mining sector (Learn more 2). China dominates the refining and processing of these materials, as well as the manufacturing of battery cells.
The Recycling Challenge
Batteries at a factory in Nanjing in China’s eastern Jiangsu province, which makes lithium batteries for electric cars. Photograph: STR/AFP via Getty Images (Image source: 3)
Another challenge facing EV batteries is what to do with them when they reach the end of their lives. EV batteries typically last for 8 to 10 years or 100,000 to 150,000 miles before they lose significant capacity and need to be replaced (Learn More 3). However, only a small percentage of EV batteries are recycled today, which poses a problem for waste management and resource conservation.
Recycling EV batteries is not easy or cheap. It involves complex processes of disassembling, sorting, crushing, leaching, and extracting metals from different components. It also requires specialized equipment, safety measures, and regulatory compliance. Recycling EV batteries can reduce greenhouse gas emissions by up to 70% compared to mining new materials, but it is still not profitable without subsidies or incentives (Learn more 4).
However, recycling EV batteries could become more viable in the future as the volume and quality of retired batteries increase. According to a study by Bloomberg, more than 12 million tons of lithium-ion batteries are expected to retire between now and 2030 (Learn more 5). Some of these batteries could have second lives in stationary energy storage systems before being recycled. Several companies and research centers are also developing new technologies and methods to improve the efficiency and economics of recycling EV batteries.
The Way Forward
EVs have a part to play in the decarbonization of transportation, but we see what kind of impact just a 30% adoption rate would have on the demand for the scarce raw materials we discussed in this article. Instead of trying to push a 100% EV adoption rate narrative, we need to develop alternatives like SVFs that can work with the vehicles and infrastructure we already have while simultaneously reducing dependence on fossil fuels. In conclusion, Woodland BIO believes that our best approach to decarbonizing transportation in a timely manner is to develop multiple solutions at the same time, including SVFs, rather than placing all our eggs in the EV basket.
