Companies that produce high-efficiency batteries are important in the transition period from internal combustion engines to electric drive systems. This is relevant for extending the range of electric vehicles. LG Chem, Samsung SDI and EV battery maker SK Innovation are on the rise due to global demand for EV batteries. The most famous in China is the Ningde era, which has risen rapidly in a short period of time under the trend of the arrival of electric vehicles.
LG Chem has supplied batteries to Volkswagen, Samsung SDI has supplied batteries for the all-electric version of the Volkswagen Golf, BMW 530e and Porsche Panamera Hybrid. SKInnovation produces batteries for the Kia Niro EV. Due to the unstable supply and demand situation and the price of raw materials, the profitability of various battery companies is also different.
However, cobalt mines needed for battery production are being upgraded to become a national strategic resource. The United States and the European Union have regulated cobalt as a controversial mineral and prevented companies from mining minerals in disputed areas. At present, all countries are protecting their own ecological environment, and the same is true in China. As a major producer of cobalt, China is almost monopolizing cobalt ore resources.
Internal combustion engine vehicles are increasingly emitting soot, and environmentally friendly vehicles are attracting attention. The city of Milan, Italy has decided to ban cars below the Euro 4 emission standard in mid-January. Major cities in Germany ban cars below the Euro 5 standard from entering the city centre. Higher fuel costs are also favored by more efficient, environmentally friendly cars. As we enter the second half of the year, oil prices are rising. Some governments have decided to cut fuel taxes by 10% this year to stimulate the economy as fuel prices continue to weigh on households.Also read:https://www.aimeno.com/lithium-battery-pack/193.html
Eco-friendly hybrid and electric vehicles are a rapidly growing market in an era requiring high operating costs and constraints on gasoline vehicles. In recent years, hydrogen fuel electric power is becoming a new type of environmentally friendly vehicles, but hydrogen fuel vehicles are also equipped with large-capacity batteries.
Lithium is an important raw material for lithium-ion batteries, but cobalt is also an important additive for lithium-ion batteries. The interior of a Li-ion battery consists of the electrolyte and the positive (+) and negative (-) electrodes. Graphite (carbon) is placed on the cathode and lithium metal oxide (LiMO2) is placed on the anode (+). Most of these batteries use lithium cobalt oxide (LiCoO2) as the anode material. Also add cobalt. However, EV battery makers have been hurting production following recent spikes in the price of rare metals such as cobalt and lithium.
The most important batteries in environmentally friendly electric vehicles are produced by world-renowned companies. This includes South Korea's LG Chem, Samsung SDI and SKInnovation which are supplying batteries to the world outside of China. LG Chem signed a battery supply contract with Volkswagen on April 4. LG Chem also supplies batteries to the Hyundai Kona and Nissan's second-generation E+ models. The NiroEV is equipped with batteries from SKInnovation. Samsung SDI supplies batteries for the VW e-Golf, BMW 530e and Porsche Panamera hybrid.
On September 28 last year, the price of cobalt fell to $62 a kilogram. But as of March 30 this year, the international trade price of cobalt was $94 per kilogram, the highest level on record. The volatility is still very large. A few years ago, the price of cobalt did not exceed US$30 per kilogram, but since the fourth quarter of 2017, the price has risen to US$60 per kilogram. It is because cobalt is the most important raw material for making batteries, and the current demand for electric vehicles is much higher than production. There are a lot of people waiting to make an appointment to buy an electric car. Automakers are also helpless.
In addition to electric cars made in China and batteries made in China, Panasonic also makes a lot of batteries. LGChem ranked second, Samsung SDI ranked fourth, and SKInnovation ranked sixth. Thanks to the Chinese government's subsidy policy, electric vehicle and battery production companies have developed rapidly. The Ningde era is one of the well-known battery production companies. BYD's independently operated battery factory can achieve a scale of 50Gwh in 2020. Tesla's joint venture battery factory with Panasonic in GigaFactory, Nevada, USA has an annual output of 20GWh.Also read:24V 100Ah LiFePO4 Lithium Battery
At present, China has formulated policies to protect the development of domestic mineral products. And exports are also restricted. The development of battery manufacturers and new energy vehicle companies that have received government subsidies is also smoother than that of foreign-funded companies that have not received many subsidies. And Chinese battery manufacturers have also set their sights on the European and Indian markets.
China owns a lithium mine in Inner Mongolia, and Chinese companies already own cobalt mines in Congo. The current lithium situation Global supply is stabilizing. But more than half of the cobalt on the planet is stored in Congo. At present, Chinese companies have mined cobalt ore in Congo and shipped it to China for further processing, so China has obtained a stable supply of cobalt, while other battery manufacturers have no choice but to see the price of cobalt continues to rise. Therefore, many battery manufacturers are developing technology to extract cobalt from waste batteries.
As demand for EVs increases, high-efficiency batteries command the highest prices among EV components. But so far, it is not easy to ensure a stable supply, so many companies are still trying to reduce the use of cobalt and replace it with other non-metallic materials, but no matter what, under the current circumstances, China has the upper hand .