Don’t write lithium off yet – more efficient batteries are on the way
September 2, 2019 By News Team (Edit)
From smartphones to laptops, electric vehicles and solar panels, lithium-ion batteries power our world. But the lithium boom appears – on the face of it – to be slowing. Two of the world’s top producers of the metal have seen precipitous drops in profits in the first half of 2019, thanks to China cutting subsidies for electric vehicles and an oversupply of the metal.
The cost of the metal has fallen from $18,000 (£14,700) per metric ton in May 2018 to $10,000 (£8,100) per metric ton this week, according to data from analyst company S&P Platts. However, the fear of a falling market may be overhyped.
“Industry outsiders struggle with the concept of what the lithium price really is,” says Rodney Hooper, an independent lithium industry analyst. “Battery and non-battery grade prices in China have fallen, however the price of OEM-qualified battery-grade lithium [that can be used in phones] outside of China hasn’t fallen materially.”
The drop in prices isn’t ringing alarm bells for the bigger lithium producers, says Marcel Goldenberg, a lithium analyst at S&P Global Platts. “The big companies have said they can push out more volume and keep prices down to see if their competitors can’t produce anymore and might fall, so they can take on a bigger market share.”
However, there is a disparity between supply and demand. “One of the key drivers for lithium uptake is electric vehicles,” says Goldenberg. “While electric vehicle uptake is up, it’s not up as much as the supply side. If we fast-forward, it’s likely to change when we see more exponential growth in electric vehicles.”
The major growth, says Hooper, will come from electric vehicles – which will require high-quality lithium. “Tesla, VW and others all require high spec batteries so that warranties are honoured,” he explains. “If a battery deteriorates, it’s very expensive to replace under warranty.” As a result, car makers are seeking out higher-quality batteries instead.
They’re also after longer-lasting lithium-based batteries. Those are called lithium-metal (or solid state) batteries, which contain pure lithium-metal, rather than ions of lithium in the electrolyte. “Lithium-metal batteries are the ultimate target,” says Zhiao Yu of Stanford University. “It can provide higher energy density, higher energy capacity, a larger voltage range. This is our holy grail.”
Yu and colleagues have developed a new type of coating for lithium-metal batteries that counteract some of its biggest issues. The better-performing batteries are not used because they’re less safe, running the risk of catching fire, and losing their charge much quicker.
