NAATBatt 2024 ... Muthu's view !
Muthukumaran Sivaraman, PMP
Vision - 100% Clean energy transportation | EV Charging Infra Solutions | Energy Transition Strategist | Passionate Sustainability Advocate
NAATBatt is a tightly knit industry event tailored for professionals within the High Voltage Battery Industry, spanning Electric Vehicles (EVs), Battery Energy Storage Systems (BESS), and related sectors throughout the value chain. Before delving into the specifics of the event and my key takeaways, it's evident that this will become an essential recurring event on my calendar.
For those familiar with my discussions on the Battery Value Chain, the concepts of upstream, midstream, and downstream players are likely familiar. The event mirrored this structure. Below, McKinsey & Company's view outline the high-level overview of the diverse value streams and the corresponding organizations involved in this intricate process. Let's discuss each topic briefly and lessons learnt.
Mining & Refining (Upstream)
The Role of Raw materials in the battery economy is getting challenging in critical minerals extraction and processing.
The ability to meet net Zero goals will demand by 2040
The demand and supply chain is getting critical. Below is a view from Benchmark Mineral Intelligence on how many Auto OEM's are trying to meet the demand. Auto OEMs led raw material sourcing is currently driven by supply chain. The level of capital engagement can be either by Direct sourcing or investment.
There are many innovations happening as we speak on this sector. Like the company Impossible Metals Inc. which is exploring Non-mined metals. The concept of Deep sea mining to dive cost down.
Why Deep sea ? Is it a sustainable practice for sea life (might need to do more due diligence). but from a resource availability perspective
Ni - Sea Floor : 306 Metric tons Global Land Reserve : 95 Metric tons
Co - Sea Floor : 94 Metric tons Global Land Reserve : 7.5 Metric tons
Ni - Sea Floor : 7,706 Metric tons Global Land Reserve : 1,504 Metric tons
Even though I didn't see a lot of companies in the refining space, ReElement Technologies stood out with their value proposition of powering ores and recycled materials.
Who Dominates the raw material supply today : CHINA. We interpreted at least 10 different industry reports. The message is single handedly this. The below report from BloombergNEF explains it all.
But the good news is the Industry is still innovating as we speak. Even though Ambient -temp Lithium (Li-Ion) is the main technology there are diverse Cell technology and potential solutions researched and developed everyday.
Quick view from the lens of Stanley Whittingham (a nobel laureate in chemistry). It was a honor to meet him and discuss Research trends and needs for future in High Energy density Battery technology.
Midstream Production (Active material, Cell, Pack)
This is the area of maximum concentration in North America today. To start with a very good news Battery pack prices have fallen 90 % in the last decade. This makes it affordable and make cheaper Electric Vehicles (EV) possible.
With the encouragement in price reduction, Production is key to this success. The manufacturing process is much complicated than any other the auto industry has encountered after Henry ford's moving assembly line innovation. Below is the picture from Bob Galyen which explains it all. As I work with many Giga factories coming up in North America its profound and complicated.
Lots of enablers showcased to accelerated the battery industry to be successful with innovative digital tools, Process Automation, Simulation, Safety, Closed-loop control, yield improvements, quality and smart equipment's.
These are just to name few of the another 300 organization demonstrated their capabilities on the battery midstream process.
With the all the process innovations and improvement the next few years of building capacity in North America focus will be on meeting the Average production cost. Below is the Volume-weighted average pack price of different global regions by BloombergNEF. Definitely lots of work to be done here.
领英推荐
Downstream (Inuse, Reuse and Recycle)
Last, but definitely not the least topic. So much attention and industry players in this space.
Like someone said "America innovates China replicates Europe regulate". There are many policies around the global, especially in Europe to ensure circularity in the battery space. Below is the EU cathode recycled material supply 2025-2035.
On this theme, to ensure circulatory and 4R are focused on 3 major things
Digital Enablement:
This is where me and my team is focused more time on these days. Enabling a Sustainable led digital solution to enhance traceability, resilience and circularity. Battery passport is a regulatory push from EU to ensure ESG compliances.
Need for a comprehensive Battery lifecycle management is emphasized, Components like
are different stream of business model emerging in this sector.
Longer Lifecycle's (1st/2nd Life)
Auto OEMs are heavily inventing and reinventing on 1st life Lifecycle space. Like Stellantis creating Stellantis_SUSTAINera as a business unit. 日产 setting up 4R organizations are very pivotal in this area.
Additionally a whole ecosystem of 2nd life around Collection logistics, Intake inspection, Diagnostics, repair, End-of line testing, reuse into ESS and micro mobility solutions.
Safety is the priority on this 2nd life. UL Solutions and others are trying to establish standard to address EV and ESS battery safety needs
Recycling Innovations:
This is a very important area for world sustainability powered by a circular battery supply chain.
Lots of innovation in
One of my favorite company in this space Redwood Materials is establishing a closed loop business with regional supply and lowest environmental footprint.
The below is basically the least 10 ways to participate in recycling of EV batteries.
North America supply of recycled materials expected to increase. Production of scalable critical materials from Black Mass. Below is the regional facilities and offtakers.
Conclusion
I know it's a late publish ! Time is getting scarce and reprioritization took it this weekend to complete. However, NAATBatt event proved to be a pivotal gathering for professionals in the High Voltage Battery Industry, offering insights and discussions that are indispensable for navigating the complexities of this rapidly evolving sector. The event highlighted the critical importance of collaboration and innovation across the entire battery value chain, from upstream mining and refining to midstream production and downstream reuse and recycling.
With the growing demand for batteries across various sectors such as Electric Vehicles and Energy Storage Systems, the need for sustainable practices and supply chain resilience has never been more urgent. The presentations and discussions underscored the industry's commitment to addressing these challenges through technological advancements, regulatory compliance, and strategic partnerships.
As I reflect on the wealth of information and connections gained from this event, it's clear that the future of the battery industry lies in continuous innovation, environmental responsibility, and collaborative efforts towards achieving a circular economy. I look forward to applying these insights in my work and contributing to the ongoing progress and sustainability of the battery industry.
A global talent into lithium-ion batteries
1 年Thanks for mentioning Airgas !