The surging prices and demand for lithium-ion batteries (LiBs) are a matter of concern for their end-use markets such as critical infrastructure, automotive electrification, renewables, and other smart devices. What makes LiBs a preferable choice is their longer life spans, faster charging, size customizability, low self-discharge rate, and extended run times.
Exhibit 1
Surging LiBs prices and demand
The LiB value chain requires stability, cost competitiveness, and efficiency at each stage to meet the growing demand. Global demand for LiBs is projected to grow from $ 41.1 billion in 2021 to $102.4 billion by 2030, with a CAGR of 12.3% (Exhibit 1). Although the recycling of LiBs is gaining momentum due to initiatives by companies such as Umicore, CATL, and Aqua Metals, it still has quite a few limitations and challenges that must be addressed in the times to come.
Exhibit 2
Altering cathodes to meet demand
One of the most critical components in a LiB is its cathode. The cathode materials determine the density, voltage, and capacity of a cell, and thus play an important role in LiBs production and packaging cost. The cost of cathode materials is less than the cost of anode materials in total LiBs packaging (Exhibit 2) so its modification is a more cost-effective approach to reduce battery costs.
The cathode of typical LiBs comprises cobalt, lithium, nickel, manganese, aluminum, copper, graphite, and a few other materials in different ratios (Exhibit 3). Lithium and cobalt have been the most preferred active components in cathode cells, but price hikes are leading the search for cheaper alternatives. This is pushing companies to make batteries with lower lithium content to make up for the shortage in supply while maintaining pricing (Exhibit 4).
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