Battery Metals

With electric scooters popping up in cities around the globe, people are wondering — for many reasons — if they’re actually safe. Earlier this week Lime announced it had recalled Segway Ninebot scooters it operates, and restricted charging to only its own facilities because of a “potential issue” in “early versions of the scooter that could cause a fire risk.

The only problem is that Segway released its own statement on Friday, suggesting that failure to properly monitor scooters for damage and properly maintain them could be the issue. Segway VP of global business development Tony Ho told the Washington Post that “We actually went to all of our shared scooter partners, and so far we’ve found that only the Lime operation has had fire incidents.”

In a statement (PDF), said that 80 percent of “shared scooters” in use came from one of its three Ninebot factories and suggested its own explanation for the discrepancy: ” Considering the fact that the management and maintenance of shared scooters and the identification of damaged vehicles highly rely on the operators, we strongly recommend that operators strengthen their capability of fleet operation and maintenance to avoid potential safety problems caused by the improper use of damaged vehicles.” Now the companies have said they’re working “closely” to answer questions about any malfunctioning batteries.

Carbon fiber is primarily used for its light weight, and prized for its strength and stiffness. But when Leif Asp looks at the material, he sees an opportunity to make it do double duty in a way that could drastically improve the efficiency of cars and airplanes.

“The battery is a structural parasite,” says the engineer and professor at the Chalmers University of Technology in Sweden, meaning it adds weight and saps efficiency, without contributing to the physical strength and structure of the car that it’s powering. But what if the vehicles were built out of batteries?

That’s where Asp is really going with this technology. He wants to see cars, planes, boats, even smartwatches and other consumer electronics made of a material that acts both as the body and the energy source—something known as a “structural battery.” A car incorporating structural batteries could weigh up to 50 percent less than a typical EV that has heavy lithium ion batteries packed underneath it, says Asp.

It’s not news that carbon fiber has electrochemical properties. Like graphite, the material is, in certain configurations, capable of conductivity. Researchers from the Chalmers University of Technology have applied for a U.S. patent on a battery made from carbon fiber, but actually bringing one to market has proven tricky for the small number of people studying the idea. New research from Asp’s team has identified a particular aspect of the material that makes its potential use as structural batteries a lot more realistic.

All carbon is not created equal, however, and different types of carbon have different properties that make them applicable to different uses. Asp’s goal is to understand what behaves how, and why, and apply that to structural applications.

“The carbon fibers that are available on the market, they have been made for structural applications or made for electrical applications,” he says. Structural applications are what we’re most familiar with, from the carbon that makes up bicycles and other strong, lightweight products, but electrical components are sometimes made of the material too, albeit a different type. He believes there’s carbon that can do both.

In their latest research, Asp and his collaborators compared three composites and examined them through electron microscopy and laser spectroscopy. They built the fiber into batteries, looked at the size and orientation of the crystals of carbon atoms bonded together in them, and compared the stiffness, strength and electrochemical properties of the different materials. Smaller crystals, with more disoriented structure, tend to be more electrochemically reactive — that is, they are more able to take up, store and release electrons, and thus act as batteries. However, these types of carbon are less stiff than those with crystals that are longer and lined up. (Either way, they’re very small; Asp compared fiber with crystals from 18 to 28 angstroms to crystals from 100 to 300 angstroms, and an angstrom is one ten billionth of a meter.)

Using a carbon fiber that sacrifices some stiffness to achieve better conductivity may not be a problem, because the material was still stiffer than steel, and capable of carrying a structural load. It also won’t hold a charge as efficiently as traditional batteries, but then, if most of the car is made up of the stuff, it won’t have to because the overall efficiency will still be greatly increased. Industry partners like Airbus, which has been working with Asp since 2015, refer to this as “mass-less energy storage.”

Still, it’s technology that’s a long way from being practical — potentially decades, says Adrian Mouritz, executive dean of the school of engineering at RMIT University in Melbourne. Mouritz also works on structural energy storage using carbon fiber, but his work embeds lithium ion batteries within sandwiches of carbon, helping to carry some of the structural load and reducing the dead weight of batteries, though not as extensively as Asp’s version.

“The approach we’re taking, the composite material is already proven, the battery itself is already proven. All we’re trying to prove is the integration of the battery into the composite, which is a much smaller step to take,” says Mouritz. “Leif’s is … more technically complex, but its benefits in the longer term are going to be stronger. It still just requires a lot more research and development to optimize the materials and design of the actual system.”

Asp and his lab are working to make it viable already. Early research (2014 and prior) modified carbon fibers, introducing a sheath of laminated polymer electrolytes that helps the fiber store and release ions more efficiently, in the same way that a lithium ion battery uses an intervening electrolyte.

“For this to fly, of course, would be a long time away,” says Asp. He is working with Airbus to produce a demo, for release next year, which replaces interior lights and cables with structural carbon fiber. Though the greater weight savings could be in eliminating the need for fuel, which Mouritz says accounts for one third or more of an airline’s operating budget, the Airbus demo will be an illustration that the technology is viable.

Mouritz sees the technology being applied to luxury autos and Formula 1 racecars first, and wide adoption in the consumer market once the price comes down and the reliability is confirmed. “If you can lightweight your aircraft, if you can lightweight your automobile, the actual net cost savings of this is in the hundreds of millions if not in the billions of dollars,” he says.

“The other thing, of course,” Mourtiz adds, “is, if I’m reducing my fuel burn, I’m actually reducing my greenhouse gas emissions.”

Greenworks Commercial unveiled new professional-grade OPE vehicles at the 2018 GIE+Expo for professional landscapers and consumers who shop in the independent dealer channel. Expanding on its successful introduction of Lithium Z Zero Turn Mowers this past summer, the new Greenworks fleet now will include new mowing vehicles in the family of lithium-ion-powered OPE vehicles, plus the company’s first line of lithium-ion-powered Utility Terrain Vehicles. Greenworks will now offer more lithium-ion powered outdoor vehicles in their line than any other company in the industry, ensuring a safe, emission-free solution for every type of end-user for any outdoor maintenance need.

Greenworks Commercial is introducing several new lithium-ion powered cutting vehicles to complement the award-winning Lithium Z 60R and 48S. First, the company will build upon its commercial-grade Lithium Z zero turn family, with the introduction of a 52-inch 52R Ride-on mower that offers the same pro-level performance and run-time in a slightly smaller, nimbler package. In addition, the company will introduce a 52-inch 52S Stand-on model offering the same versatility and performance of the 48S with a 4-foot larger cutting deck. The 52R and 52S will offer users up to 4 1/2 and 6 hours of cutting time, respectively.

Just like their predecessors, the newest members of the Lithium Z family offer the ultimate in zero-turn radius maneuverability, zero gas and zero emissions. All four models are powered by an 82-volt 13.8kW lithium-ion battery and feature three 1.5KW Brushless Blade Motors and two 1.7KW Brushless Drive Motors, delivering pro-level cutting speed and power, offering a true gas replacement. All of Greenworks Commercial’s zero turn mowers utilize batteries that have been UL-certified for safety.

In addition to the new mowing vehicles in Greenworks Commercial’s family of lithium ion-powered OPE vehicles, the company also unveiled its first line of Utility Terrain Vehicles at the 2018 GIE+Expo, as well. The new Greenworks Commercial Stealth and Greenworks Commercial Stealth HD UTVs offer users the ability to navigate the roughest of terrain while hauling all the tools and materials needed to complete any task. With a payload capacity of 500 pounds and towing capacity of 1,500 pounds, these versatile, rugged, side-by-sides offer the ideal balance of utility and performance. Powered by a 13.8kwh 80V lithium-ion battery, AC Rated 7.5kw motor, both the Stealth and Stealth HD can reach top speeds of 35 miles per hour on a variety of terrain from forests to farmland to swampy hunting grounds and go up to 90 miles on a single charge. Greenworks’ Stealth family of UTVs will be offered with a wide range of options to customize performance for whatever mission the user wants to accomplish.

“We were absolutely blown away by the industry’s reception for our first Lithium Zs earlier this summer,” said Tony Marchese, director of independent retail–Greenworks North America. “As impressive as those machines are, we realized that we were really just scratching the surface in terms of the versatility that lithium-ion vehicles can bring to the OPE industry. We will now offer the broadest and safest line in the industry – and we are proud to showcase many of these products this week at GIE to let attendees put them to the test in the outdoor demo area. With vehicles for mowing, towing and hauling we will have an option that can help everyone.”

All of Greenworks Commercial’s lithium-ion OPE vehicle fleet comes standard with a two-year frame warranty and three-year battery and motor warranty.

Copper prices have dropped 18% in recent weeks, creating a long-term opportunity to get in on some cheap copper-mining giants with generous dividend payouts. Their prospects will depend on a major technological transition: the move from gasoline-powered to electric vehicles.

“If you’re bullish on global growth over the next 18 to 24 months, you have to own copper-related assets, especially since current prices aren’t high enough to fund new-mine development,” says Adam Johnson, founder and author of the Bullseye Brief financial newsletter. “Longer term, and this is key, rising electric-vehicle production will shift the entire demand curve since EVs require multiple times the copper content of internal-combustion engines.”

Investors should consider buying shares of a handful of European-based miners: Rio Tinto (ticker: RIO), Glencore (GLEN.UK), and Anglo American (AAL.UK). All are diversified, but they’re also among the largest copper miners. Better yet, they have hefty dividends of 5%, 5.1%, and 4.7%, respectively.

The stocks are cheap relative to the main U.S. rival, Freeport-McMoRan (FCX), which trades at almost 14 times next year’s earnings and has a measly 1.8% dividend. Rio Tinto shares trade at a P/E around 11; Glencore’s and Anglo American’s at less than 10. And Rio Tinto announced a $3.2 billion share buyback earlier this month. That news “reinforces our positive view of Rio’s capital returns potential,” said a recent report from U.K. broker J.P. Morgan Cazenove.

Meanwhile, New York research firm CFRA says it expects the return on equity for Glencore to move above its recent average level. The firm also sees the potential for meaningful cost reductions to improve margins at Anglo.

Besides the favorable valuations, these stocks will benefit from the switch to electric vehicles. To make these cars and trucks, manufacturers will require an additional 1.7 million metric tons of copper each year by 2027, according to the International Copper Association. Battery-powered EVs use an average of 183 pounds of the metal versus between 18 and 49 pounds for conventional cars, according to data from the Copper Development Association. The difference is even starker for buses. A bus running with a hybrid electric and diesel engine needs 196 pounds of copper, but a fully electric-powered bus requires 814 pounds. Charging ports for electric cars also need copper.

Even without EVs, the market isn’t producing enough newly mined copper to keep up. Global mined production totaled 20 million tons last year, versus demand of 23.8 million tons, according to data from the International Copper Study Group. The deficit typically gets filled through recycled metal or a drawdown of inventories. Moreover, auto-related demand hasn’t yet peaked, and major increases in mined supply can take years to develop.

Mining is risky. The industry has long been highly cyclical, with deep troughs and high peaks. The recent surge in the greenback presents headwinds to prices, which are dollar-denominated. Mines can also get disrupted by earthquakes, asset forfeiture, and environmental calamities.

Still, the shift from fossil-fuel-powered vehicles to electric-powered ones looks set to be a secular, long-term trend from which mining company shares should benefit. During the 2008 recession, usage of refined copper fell by less than 1%, or 148,000 tons, according to ICSG. However, usage of copper in EVs and associated hybrid vehicles is expected to add more than 200,000 tons to demand this year, which will rise steadily for the next decade, according to a 2017 study commissioned by the International Copper Association.

WA will be able to produce precursor chemicals for battery cathodes but won’t be able to drive the production process much further, a new report into the lithium battery supply chain claims.

The report, released in Perth on Friday by the Chamber of Commerce and Industry WA and Australian Venture Consultants, hosed down suggestions WA could become a hub of battery manufacturing.

The report said WA mines most of the metals needed for the nickel-manganese-cobalt lithium-ion batteries emerging as the dominant design for electric vehicles.

However, because countries like China, Japan and South Korea have been making lithium-ion batteries for two decades at a lower cost than Australia it was unfeasible it could break into the global market.

The speakers at the report’s launch echoed those sentiments and said the state should aim to develop the precursor chemicals for battery cathodes, which would still extract a lot of value from the lithium-rich rocks miners pull out of WA dirt and bring plenty of high-paying white-collar jobs.

Squeezing money from rocks

Neometals managing director Chris Reed said by processing the lithium and other battery metals they extracted they doubled the economics of their operations and jobs created.

But producing cathode materials was the limit and would be for the next 10 years.

Neometals has a 13.8 per cent stake in the Mt Marion Lithium mine 40km south-west of Kalgoorlie and plans to build a small lithium hydroxide plant near it.

“I believe most of the value is captured if you indeed alloy lithium, nickel, cobalt, manganese or aluminium into a cathode material. I think that will probably be job done for us,” Mr Reed said.

“I think if we’re downstream processing upstream concentrates we’ll probably double the number of jobs hanging off the mine.”

BHP Nickel West already has a nickel refinery in Kwinana, south of Perth, but asset president Eduard Haegel also signalled his company’s intention to be involved in the supply chain by making nickel sulfate and cobalt sulfate, which are integral to modern lithium-ion batteries.

But he said Australia needed a “champion” battery company to invest in a facility that created precursor cathode materials

“It’s clearly not going to be an Australian company because we have no Australian champions in this space,” he said.

“Its an expensive environment but so too is Sweden and Northvolt is setting up a competitor to Tesla batteries there.

“If we don’t have our own national champion in this space then clearly we need to inspire a Panasonic or a Samsung. I don’t know if its possible but I certainly think it’s a worthy thing to explore.”

Lots of jobs but no one to fill them

Training was again brought to the fore as an issue facing the lithium sector.

Mr Reed said Neometals had gone to the WA School of Mines to offer scholarships to metallurgists, but came up empty-handed.

“We need to catch (the students) at the back end in a couple of years,” he said.

“I said: ‘can you get me a panel of possibly four candidates?’ They said three.

“I said: ‘well we’re offering four scholarships could you possibly get four?’ They said no there’s only three students.

“That will be a challenge.”

Treasurer Ben Wyatt said globally the mining industry was facing a skills shortage.

“Perhaps we need to have a better understanding of the demands of students coming through and perhaps include in those courses and some other angles that might attract more students going in them,” he said.

Lithium could potentially overtake gold as the second highest-paying royalty revenue to the WA government behind iron ore.

Mr Wyatt said the government was “not looking at any change to the royalty structure at the moment.”

More than half of the world’s cobalt comes from the Democratic Republic of the Congo (DRC). A 2017 USGS report described the DRC as a risky place for doing business and possessing a substantial risk of civil war. Cobalt ore from the DRC is typically shipped to China for processing to meet the growing demand for the material in the cathodes of lithium ion batteries, locking in a near-monopoly on these vital materials.

Now, chemical giant BASF has selected Harjavalta, Finland as its first production location to supply battery materials to the European automotive market. The plant will be constructed adjacent to the nickel and cobalt refinery owned by Norilsk Nickel (Nornickel). It will not only mine and process cobalt, but also develop nickel and cobalt containing cathodes for the expanding European electric vehicle (EV) market.

Access to European Markets

“The co-location of BASF’s new plant and Nornickel’s metal refinery in Harjavalta will enable unparalleled access to a local nickel and cobalt supply,” said Jeffrey Lou, senior vice president, battery materials at BASF, in a company press release. “Our high-nickel cathode materials are key to delivering enhanced energy density and vehicle range to our customers. With this world-scale production facility, BASF will be able to serve the European e-mobility growth strategies of key OEMs and cell suppliers with reliable supply and close collaboration.”

The investment is part of a BASF €400 million ($462 million USD) plan that was announced last year. It builds upon the initial battery-grade cobalt production that started in Harjavalta in 2018. Currently, about 3% of the world’s cobalt production comes from Finland. Start-up for the new plant is planned for late 2020 and will enable the supply of 300,000 battery-electric vehicles per year. The BASF plant in Harjavalta also will use locally generated renewable energy sources, such as hydroelectric, wind, and biomass, addressing recent reports that present-day lithium ion battery production plants are fossil-fuel intensive.

The Role of Cobalt

Traditionally, cobalt has been used in electronics and in the superalloys used in jet turbines. Its use in the cathodes of lithium ion batteries has been growing steadily and today, roughly half of the cobalt produced worldwide is used in batteries. The battery demand for cobalt is expected to grow dramatically in the coming years as more electric vehicles and grid storage battery systems come online.

In a lithium ion battery, the cathode electrode stores the lithium ions through electrochemical intercalation—a process by which the lithium ions are inserted into or removed from lattice sites within the cathode material structure. The role of the transition metal element in the cathode is to compensate for the charge when the lithium ion arrives or departs. Compounds chosen for cathodes are commonly oxides made from transition metals, such as nickel, cobalt, copper, iron, chromium, zinc, or manganese, which have the ability to change valence to maintain neutrality.

The addition of cobalt enhances the structure so that it can withstand about 60% of the lithium to be removed before the structure begins to change over long periods of time. This allows the battery to behave in a predictable manner. Small amounts of cobalt in the material help the rate performance—the rate at which power is delivered. Electric vehicles need to have batteries that accept lithium ions at a high rate during charging and deliver lithium ions at a high rate during discharge. Although there is significant effort underway to eliminate cobalt from lithium ion cathodes, it appears that about 10% cobalt appears to be necessary to enhance the rate properties of the battery.

Directly from the Mine

Most EV batteries are sourced from Chinese and Korean suppliers. One objective of the new partnership in Finland is turning raw materials from the mine directly into usable battery cathode materials. These can be shipped to a local battery cell manufacturer at a lower cost than they might be sourced from remote overseas suppliers. “With the investment in Harjavalta, BASF will be present in all major regions with local production and increased customer proximity, further supporting the rapidly growing electric vehicle market,” said the president of BASF’s Catalysts division, Kenneth Lane, in a BASF press release. The company said that it is also evaluating additional locations in Europe for the construction of new production plants for battery materials.