Industry Intelligence #6: Essential Insights into the EU Battery Landscape
Rayane Echikr
CI Analyst @EIT Manufacturing | Competitive Intelligence, Green Manufacturing, Industry 4.0, Technology Watch
Greetings everyone,
Welcome to the sixth edition of Industry Intelligence, your go-to newsletter for staying up-to-date with the latest trends in energy and technology. The main goal is to shed light on ways to achieve industrial sustainability and decarbonisation within European #Manufacturing.
In this edition, we'll be diving into the fascinating realm of battery. By exploring miscellaneous use cases, projects, and policies at a European level, I aim to provide valuable insights and actionable knowledge.
If this topic resonates with you, I invite you to join me in exploring the depths of this subject together! Let's embark on this journey towards a greener and more sustainable future.
Technology use-cases:
CATL Unveils Shenxing Plus LFP Battery, Paving the way for 1,000km Range ??
?? At Auto China in Beijing, CATL introduced its latest innovation, the Shenxing Plus LFP #battery, boasting a remarkable range of over 1,000 kilometres for EVs. This battery uses lithium iron phosphate (LFP) cells and promises rapid charging capabilities. Just 8 months after the debut of the original Shenxing battery with a 700-kilometre range, CATL has pushed the boundaries further with the Shenxing Plus. https://shorturl.at/dsLTW??
Vianode Graphite production: LCA reveals low-carbon footprint of 1.9 kg.CO2/eq??
?? Vianode, a Norvegian battery materials company, announced that their industrial-scale production of #graphite boasts a low climate change impact of 1.9 kg CO2 equivalents per kilogram, a 90% reduction compared to conventional methods. https://shorturl.at/CFTU9
China's Powerhouse: Tesla's Electric Empire Thrives with Half of Global Production ??
?? Tesla operates 4 electric car factories globally: in California, China, Texas, and Germany. Among them, Tesla Giga Shanghai in China stands out as a major contributor, consistently producing over half of Tesla's electric cars in recent years. While Tesla doesn't disclose individual plant data, comparing global #production figures with China Passenger Car Association's wholesale vehicle shipment data reveals Giga Shanghai's significance. https://shorturl.at/wRW47
Project
BASF Launches Metal Refinery to Advance Battery Recycling ??
?? BASF has launched its prototype metal refinery for battery recycling in Schwarzheide. Germany. This facility serves as a testing ground for refining processes and #technology optimisation, laying the groundwork for larger-scale operations. By recovering valuable metals like lithium, nickel, cobalt, manganese, and copper, BASF aims to establish a circular economy for battery materials, crucial for the burgeoning electric vehicle market. https://shorturl.at/mrxZ0
IONWAY, a Fresh Entrant in European Battery Materials, Establishes First Production Plant in Nysa, Poland ??
?? Brussels-based IONWAY, the newly-established European electric vehicle (EV) #battery materials producer, has set its sights on Nysa, Poland, as the location for its inaugural Cathode Active Material (CAM) production plant. This strategic choice places IONWAY's facility adjacent to Umicore's existing CAM plant, backed by the influential joint venture of Volkswagen Group-owned PowerCo SE, and Umicore. https://shorturl.at/wACIS
Policy
Navigating Trade Turbulence: Biden's Tariffs & the Global Economic Landscape ??
???President Biden's tariffs on Chinese #goods, including EVs, solar cells, and steel, aim to counter unfair trade practices driven by Chinese subsidies. Doubling or tripling on some items, these tariffs symbolise opposition to China's dominance. As tensions rise and China denounces the move, broader issues of global economic leadership come to the forefront. https://shorturl.at/dxFH4
EU policy, a briefing:
?? Since 2006, battery waste has been regulated under the EU Battery Directive, which was revised in December 2020 due to the rising use of batteries and the associated market, especially EVs.
In 2017, the European Commission launched the European Battery Alliance to implement a potent, sustainable, innovative battery value chain – in order to foster decarbonisation of the transport and energy sector while improving EU competitiveness.
Following this initiative, the EU launched the $ 3.5 billion European Battery Innovation project to cover the whole value chain of batteries from raw materials extraction to design and cell manufacturing, to recycling and disposal.
EU Parliament Adopts New Battery Rules to Drive Sustainability and Circular Economy ??
?? On June 2023, the EU Parliament adopted groundbreaking regulations that will have a significant impact on the design, manufacturing, and recycling of all battery types sold within the EU- a resounding 587 votes in favor, only nine against, and 20 abstentions. These new rules have a profound goal of promoting a circular economy by effectively regulating the entire life cycle of batteries including EV batteries.
Critical Raw Materials Act launched to consolidate EU sovereignty
On 23rd May 2024, the European Commission launched the long-awaited ′Critical Raw Material′ (CRM) Act to guarantee the availability of critical raw materials that are diversified, affordable, secure, and sustainable for the EU. The target is at least 10% of CRM mined in EU mining, 15% of EU needs to be obtained through #recycling, and 40% to be processed in the EU by 2030. The new regulation and Communication and Critical Raw Materials Act′s adoption will foster the Single Market′s advantages as well as external partnerships for the EU to enhance the diversification and resilience of the whole critical raw materials value chain. Moreover, the Act provides an awareness of #circular business models and sustainability, while tumbling the likelihood of disruptions.
Battery capacity in the world and in the EU ?
Battery capacity worldwide ??
? Asian battery cell manufacturers dominate the global market, with all top 10 electric vehicle battery producers in 2022 hailing from China, Japan, and South Korea. China leads with a production capacity of about 1,500 GWh/a. Europe's capacity was around 175 GWh/a by the end of 2023 and could exceed 1,000 GWh/a by 2030 to meet rising demand. This expansion increases the need for machinery and production facilities.
China, South Korea, and Japan have developed a strong mechanical and plant engineering sector tailored to the battery industry's needs, constructing facilities on a gigawatt-hour scale. Asian equipment manufacturers are equipping both Asian and European sites. For instance, SK On and Samsung SDI use South Korean suppliers for their Hungarian facilities, and Norway's Morrow sources 97% of its new production machinery from South Korea.
European battery capacity ??
? Top battery production and risks in Europe: Europe has plans to build at least 22 gigafactories for batteries in the upcoming years, increasing production capacity from 460 GWh in 2025 (sufficient for approximately 8 million electric vehicles) to 730 GWh in 2030. This increase in production capacity would be more than enough to cater to the expected demand for electric vehicles in the European Union.
?? Furthermore, policies aimed at promoting the EV market are resulting in investments in domestic supply chain and manufacturing. Recent investments by companies such as CATL and Tesla in Germany, Northvolt in Sweden and Germany, LG Chem in Poland, and Samsung SKI in Hungary and Austria, among others, have put the European Union in a favorable position to attain autonomy in this vital supply chain of the future.
????Germany, Hungary, and Spain have the largest?battery?cell capacities accounting for 700GWh at risk, while Poland, Sweden, and France faced 20GWh at risk.?#Tesla′s Giga Berlin has the largest volumes i.e. 93GWh, at risk of being delayed in Europe as the company plans to focus cell manufacturing on the US to take advantage of incentives under the Inflation Reduction Act (IRA).
?? The Northvolt Gigafactory in Heide, Germany, presents a medium risk due to only secured funding but the construction has not yet begun along with Northvolt production in the EU may be delayed to prioritise the US expansion. If the?battery?production capacity doesn′t meet expectations i.e. up to 1.8TWh in 2030, the EU will need to import batteries from foreign competitors and lose substantial competitiveness in terms of production but equally in terms of its own climate rules. Here are some infographics to understand the sense of units:?lnkd.in/dR7ASpHR
???According to BloombergNEF, Europe's global market share for new?#investment?in Li-ion?battery?production has drastically decreased from 41% in 2021 to a mere 2% in 2022. Meanwhile, the US and China have experienced significant growth in?battery?investment. On March 14, the EU Commission will release a Net Zero Industrial Act to cope with the $369B US IRA. The Critical Raw Materials Act will also rise to secure strategic projects regarding mining and refining to ensure EU self-sufficiency.
Top EU battery recycling companies
??? Lithium battery recycling facilities are needed online quickly because 1.2 million tonnes of lithium-ion batteries will have reached end-of-life by 2030,?according to Circular Energy Storage. In late 2021, 32 established or planned LiB recycling plants were known for a total recycling capacity of 322,500 tonnes. Europe occupied the second position with a total of 92,000 tonnes whose top players are Eramet, Umicore Valeas, and Redox. Here is an overview of LiB recycling:?https://lnkd.in/dXhwp3Zc