Lithium News

Most electric vehicles are equipped with an electronic brain that manages day-to-day battery performance and safety. This battery management system, or BMS, includes software that uses algorithms to monitor the overall health of the powerful lithium-ion battery pack.

“The algorithm tells you things like if your battery is doing OK, or how far you can drive before you need to recharge,” said Simona Onori, an assistant professor of energy science and engineering in the Stanford Doerr School of Sustainability. “The problem is that BMS algorithms are designed in ideal laboratory conditions that do not reflect what a battery pack sees in the real world.”

To demonstrate the gap between controlled laboratory testing and actual road experience, Onori and colleagues at Stanford collaborated with researchers at the Volkswagen Innovation and Engineering Center located near the university campus. Their results are published Aug. 18 in Joule.

“Algorithms based on unrealistic driving data are likely to be inaccurate in the field,” said Onori, lead author of the study. “Our goal is to increase the longevity of the battery pack by designing algorithms trained from real-world data.”

Driving styles

Battery management systems in electric cars on the road today routinely record data during braking, acceleration, deceleration, and charging.

“Real-world driving is driver specific,” said study co-author Gabriele Pozzato, a Stanford research engineer. “You might be an aggressive driver, or someone who only partially charges their car. Different styles of driving and charging will result in different trajectories of battery degradation. However, that kind of field data is not included in conventional battery algorithms.”

For the study, Volkswagen provided the Stanford team about 3,750 hours of BMS driving data collected from an all-electric Audi e-tron SUV driven in the San Francisco Bay Area for one year, from November 2019 to October 2020 (Audi is a subsidiary of Volkswagen).

Energy and power

Using the Audi field data, the Stanford team calculated the electrical resistance in the battery pack over the one-year period. These calculations enabled the team to assess two key battery metrics: energy and power.

“Energy gives you the range, or how many miles you can drive with a fully charged battery,” Pozzato explained. “Power is the ability to extract energy quickly. When you accelerate, you want to get access to energy and discharge the battery very fast. The less electrical resistance you have in the battery, the more power you have.”

To calculate resistance, the researchers measured abrupt changes in current and voltage in the battery pack using data from 529 acceleration events and 392 braking events during the year. They also calculated impedance – a measure of resistance during battery charging – by analyzing 53 charging sessions.

“Impedance and resistance are typically considered metrics of battery health,” Onori said. “The more you drive, the more resistance increases. This usually translates into less available power from the battery pack, but that’s not what we saw.”

A more complex pattern emerged when the researchers added seasonal weather data to the mix. They discovered that electrical resistance decreased in cooler months and steadily increased in spring and summer, an indication that battery health improves as temperatures rise.

“Higher temperatures raise battery capacity, so you have this feeling that the car has more energy and that you can drive more miles,” Onori said. “But if you keep using the battery at high temperatures, it will degrade faster. Those are very tricky factors that affect performance. Next year we’ll expand our dataset to a fleet of vehicles to determine exactly how temperature and aging affect each other.”

The lab vs. the road

Automakers rely on conventional BMS algorithms designed in pristine laboratory conditions. Using machine learning, these algorithms typically monitor performance data from a single 4-volt battery cell that continuously charges and discharges at a constant temperature until it dies. But the Audi field data was collected from a 396-volt battery pack powered by 384 cells.

“New algorithms should focus on the entire battery pack and not individual cells,” Onori said. “We want to design algorithms that educate drivers on how to increase the life of the battery pack, which is the most expensive component of the vehicle. For example, you could alert drivers if they are fast-charging too much or accelerating too aggressively. So much can be learned from field data to make BMS algorithms more robust.”

A consortium of Ford Motor Co (F.N) and South Korean companies on Thursday said they would build a C$1.2 billion ($887 million)plant to produce electric vehicle (EVs) battery materials in Becancour, Quebec, a town seeking to become an EV-supply-chain hub, Canada’s industry ministry said.

The consortium includes South Korean partners EcoProBM (247540.KQ) and SK On Co Ltd, according a statement from the ministry. The factory will eventually produce 45,000 tonnes of cathode active materials (CAM) per year for Ford EVs.

Ford in a separate statement described the materials as high-quality Nickel Cobalt Manganese (NCM) for rechargeable batteries that are targeting greater performance and improved EV range.

“This cathode facility will supply the material that goes into Ford’s future EVs in North America, specifically some of our future trucks,” Lisa Drake, Ford vice president for EVs, told reporters.

It is Ford’s first investment in Quebec, although it has operated in neighboring Ontario for more than a century.

Canada’s federal government will provide the consortium with a conditional loan of C$322 million and Quebec will offer the same amount as a partially forgivable loan, the statement said. The factory is expected to be operational in the first half of 2026, creating more than 345 jobs.

This is the latest in a series of construction announcements for Becancour, a town of fewer than 15,000 people on the St. Lawrence River that is shaping up to be an EV-supply-chain hub in North America.

“This is a big vote of confidence in the (EV) ecosystem we’ve been building,” Canada industry minister Francois-Philippe Champagne told Reuters. “This is very significant for Quebec, because as you know the auto sector has been primarily investing in Ontario, but now we have GM, now we have Ford in Becancour.”

General Motors Co (GM.N) and South Korea’s POSCO Future M in May said they would increase production capacity at a chemical battery materials facility whose construction was first announced last year. Germany’s BASF SE (BASFn.DE) is also building a battery materials factory there.

Canada, home to a large mining sector for minerals including lithium, nickel and cobalt, is trying to woo companies involved in all levels of the EV supply chain via a multibillion-dollar green technology fund as the world seeks to cut carbon emissions.

German automaker Volkswagen (VOWG_p.DE) and Stellantis (STLAM.MI), the parent of brands including Fiat and Chrysler, are building multibillion-dollar battery plants west of Quebec in Ontario, the heartland of Canada’s fossil-fuel-powered car industry that has historical trade and production links with the Detroit carmakers.

CATL, the Chinese battery giant and a major supplier to Tesla, has unveiled its latest product that aims to solve electric vehicles’ charging and range limitations. The battery, dubbed Shenxing or “god-like movement,” is able to refuel up to 400 kilometers (250 miles) of range in 10 minutes, Gao Han, chief technology officer of CATL’s e-car division, said at a launch briefing on Wednesday.

That means vehicles powered by Shenxing can drive from New York to Boston (about 215 miles) after just 10 minutes of fast charging. Mass production of the battery is expected to be underway by the end of 2023, with shipping to begin in 2024.

Shenxing claims to be “the world’s first 4C superfast charging LFP battery. “LFP stands for lithium iron phosphate, a type of battery chemistry that Tesla widely adapted in 2021 for its shorter-range cars in place of nickel-cobalt-aluminum.

China is a big proponent of LFP, a technology spearheaded by its renewable energy darling CATL, which topped the global EV battery market with a 35% share in Q1, according to research firm SNE. This type of battery is known for its cheap prices and chemical stability, though it has a lower energy density than other battery chemistries, which is a drag on EVs’ range.

CATL’s extraordinary growth has been buoyed by an EV boom in China over the last few years. But the EV industry is decelerating as government subsidies shrink and consumption contracts amid a post-COVID economic downturn. Meanwhile, the Fujian-based battery manufacturers face heated competition from BYD, the Chinese EV giant that also makes its own battery. In Q1, BYD trailed CATL in second place with a 16.2% share of the global EV battery market.

Electric vehicle (EV) battery prices in China demonstrated stability, with lithium salt prices registering a marginal decline, in July. The prices of EV square ternary cells, LFP cells, and pouch ternary power cells during the month remained relatively consistent with the prior month, positioned at CNY0.73/Wh, CNY0.65/Wh, and CNY0.78/Wh, respectively. This trend comes amid relatively muted demand in the EV sector, according to TrendForce research.

Meanwhile, energy storage batteries witnessed steady market demand. The average price of these batteries dropped by 1% month-on-month (MoM), falling to CNY0.66/Wh, driven by falling prices of LFP cathode materials. Current overcapacity in China’s energy storage battery production is escalating competition, and the trend points to a continuous, albeit slow, drop in prices. Recently, quoted prices for energy storage project bids have dipped below CNY0.6/Wh.

Consumer batteries faced weakening demand in the consumer electronics market in July, leading battery manufacturers to cut back their capacity utilization rates. Nevertheless, a slight uptick in the price of cobalt metal curtailed any significant drop in battery prices, which remained mostly consistent with the previous month. However, LCO battery prices are predicted to continue their downward trajectory in August, given the slow decrease in raw material (lithium salt and cobalt [II, III] oxide) prices, as well as lackluster downstream demand.

TrendForce points out that the Guangzhou Futures Exchange listed seven lithium carbonate futures contracts in July. Despite an initial major decline, futures prices managed a subsequent recovery, yet remained on a downward trend relative to the listing’s benchmark price. This also coincides with a gradual decrease in spot lithium carbonate prices, with July witnessing a 5% MoM fall in average lithium salt prices.

TrendForce believes that structural overcapacity is present to varying extents across most segments of China’s lithium-ion battery industry chain, leading to a downward trend in supply chain prices. Among them, the price of lithium metal, which has the greatest impact on supply chain prices, is gradually stabilizing, reducing the likelihood of significant fluctuations. The listing of lithium carbonate futures has set the trend for spot prices of lithium carbonate over the next six months to a year.

In the short term, the overall price changes in the lithium-ion battery supply chain are expected to stabilize. However, TrendForce does not rule out the possibility of a minor rebound in lithium salt prices during the peak demand period in the fourth quarter.

Last month, China’s Guangzhou Futures Exchange launched its first ever lithium carbonate future contracts, making it the fourth exchange worldwide to offer such contracts. The introduction of these trading instruments is intended to stabilize prices of raw materials to promote the EV industry’s sustainable development. But in that short period of time, Guangzhou Futures Exchange’s new lithium carbonate business has already gained more market activity than competitors such as the London Metal Exchange and Singapore Exchange, thanks to China’s dominance in the global lithium supply chain. China is the largest lithium consumer in the world, and is also home to a  rich lithium reserve of 17.0 megatons of LCE, good for 23% of global reserves.

For decades, the London Metal Exchange has been the global hub for metals trading thanks to a vast network of warehouses outside of China. However, LME is now facing greater competition and damage to its reputation following the historic nickel crisis. Last year, a record-breaking nickel short squeeze sent nickel prices soaring to an astonishing $100,000 per tonne–doubling the previous all-time high over the course of one morning– and plunged the London Metal Exchange into an existential crisis. The LME subsequently closed trading and took the dramatic step of retroactively scrapping $3.9bn worth of trades made prior to the suspension–outlining the nickel market had become disorderly with prices no longer reflecting the underlying physical market.

Interestingly, just like the famous copper squeeze of more than a century ago, the nickel market snafu was largely linked to enormous short positions held by a single man: Chinese metal trader Xiang Guangda, the founder of China-based Tsingshan Holding, the world’s biggest nickel producer. According to Bloomberg, Xiang Guangda, also known as the “Big Shot” for his towering position in the metal industry, held an enormous short position of over 150,000 tons of nickel, more than 5x the 30,000 tons held directly by LME. The remainder was held via bilateral, “over-the-counter” deals with banks led by JPMorgan Chase & Co, and including BNP Paribas SA, Standard Chartered Plc and United Overseas Bank Ltd. Guangda had built up the biggest short position in the metal, and is now facing a hit of nearly $8bn.

The proposal for greater transparency for over-the-counter positions came at the same time as the LME was facing an outcry from users over a proposal to close its open-outcry trading floor, “the Ring,” from which it later backed down. The LME, which since 2012 has been owned by Hong Kong Exchange & Clearing Ltd, is the ultimate decision maker on changes to its rules and consults with market participants, including many big banks. The industrial metals industry relies on LME prices as benchmarks for physical transactions, while financial investors in products like commodity indexes use the exchange’s prices to value their positions.

Australian Threat

It’s, therefore, hardly surprising that hordes of lithium speculators view Guangzhou Futures Exchange as a viable alternative to LME. But it won’t be a walk in the park for GFE to completely steal the show from LME thanks to the latter’s large network of warehouses as well as the use of a currency that is not freely traded.

China’s lithium dominance is likely to continue thanks to challenges being faced by a key rival, Australia.

Australia’s dream to refine lithium hydroxide onshore in a bid to break China’s global battery supply chain dominance is facing a serious threat as local lithium producers have been opting to strike refining deals with major Asian conglomerates. Although Australia is the world’s largest lithium producer, it ships almost all of it to China as low-grade ore where it is refined into a battery-grade chemical. The Australian government has been harboring ambitions to build lithium hydroxide refineries in the country and become less dependent on China.

But local lithium producers have started partnering with Asian companies mostly due to cost issues. Pilbara Minerals Ltd. has partnered with South Korea’s Posco Holdings Inc. to manufacture a highly-refined product in the Asian nation. Liontown Resources Ltd., developer of large lithium mines in Western Australia, has announced an agreement with Japanese trading company Sumitomo Corp. on Monday to explore production of lithium hydroxide in Japan. Back in May, Posco revealed that it was 40% cheaper to build a lithium processing plant in South Korea than Australia thanks in large part to cheaper labor and materials costs.

The current Australian lithium hydroxide refineries–operated by US’-based Albemarle Corp. (NYSE:ALB) and China’s Tianqi Lithium Corp.–have been struggling to meet production targets. Meanwhile, domestic conglomerate Wesfarmers Ltd. is slated to commence production next year.

As we’ve been reporting, Northern Nevada is home to one of the largest known lithium deposits in the country. The Biden administration is taking steps toward harnessing it as a central piece to their national clean energy agenda.

Friday, two senior Biden Administration officials toured and held a roundtable at the University of Nevada, Reno.

President Biden’s Chief Science and Technology Advisor and Director of the White House Office of Science and Technology Policy Arati Prabhakar and Director of the U.S. National Science Foundation Dr. Sethuraman Panchanathan spoke with students and faculty are the university’s Materials and Electrochemical Research Lab.

This week marks one year since the Biden Administration passed the Chips and Science Act.

The “science” aspect of the act is geared toward boosting investments in technology research.

To that end, the National Science Foundation is administering the Regional Innovative Engine program, or NSF Engines to institutions across the U.S. The NSF is in the development phase and have so far given $43 million to 44 institutions including the University of Nevada, Reno.

The University of Nevada, Reno has received $1 million dollars in federal funding. However, if they make it through the development phase and secure the main NSF Engine designation, the university could be looking at getting north of $100 million federal dollars in the next ten years.

It’s a high recognition for the work that has been done, and the work left to be done.

“You’re building the largest lithium mine here. You’re having researchers at the University of Nevada, Reno who are working on the research on aspects of how do we extract, how do we process, how do we recycle. How do we ensure the whole life cycle of lithium based battery technologies,” said Director of the U.S. National Science Foundation Dr. Sethuraman Panchanathan.

The goal of the NSF Engine is to build Northern Nevada into an innovative ecosystem that harnesses the region’s potential lithium power. In a short time, Panchanathan says Northern Nevada could be responsible for delivering lithium batteries to the rest of the country.

In order to do so, the NSF Engine will transform Northern Nevada into an innovative ecosystem that will partner industry, academia, government, non-profits, and civil society – sparking economic development and jobs.

“Building the workforce along with it. How do you build certificate programs to train people. How do you build a minor around lithium battery technologies. All of this is happening right now at the University of Nevada Reno, but in partnership with the entire community,” said Panchanathan.

The two senior Biden officials toured the Paul Laxalt Mineral Research building to meet with students and faculty who are advancing all phases of the lithium battery value chain.

The labs conduct research pertaining to advanced minerals, lithium battery technology, and lithium recycling.

“The things that we learned about were about minerals, and materials, and how to build better batteries, and how to recycle materials, and cleanup waste from industrial processes. And, here we are in Reno, you look around at these ancient hills and the mountains, and there is this direct connection to this work that is being done in these labs,” said Biden Administration Chief Science and Technology Advisor and Director of the White House Office of Science and Technology Policy Arati Prabhakar

The Governor’s Office of Economic Development, or GOED, has played an instrumental role in the success of the advancements brought forward by the science arm of the university.

Since 2015, GOED has given $8 million to the Nevada Center for Applied Research at the university.