Lithium a key component in EV-Battery manufacturing

Market Dynamics

Lithium today is an indispensable element that is helping develop future industries. Lithium-ion batteries in particular is powering  electric vehicles, smartphones and mobile computers, with the promise of its application in renewable energy storage as well. Novel applications such as wearable batteries are also firing up its demand.

Further the growth of many other traditional industries which use Lithium in their process is growing as well.

We expect the demand for Lithium would grow rapidly in the coming years and a supply demand analysis wound be warranted ,

"The main drivers for the growth of lithium can be attributed to the rechargeable battery and ceramic and glass industries."

Accelerating Demand for Electric Vehicles

Stringent Global Regulations

Covid-19 taught the world the power of disruptions and how to manage our lives. 

Business is no longer as usual and will not be in years to come. There are many things that have change permanently. Many polluting industry when stopped functioning, we witnessed nature rejuvenate itself. We could breath cleaner air, drink cleaner water and walk in less crowed world. I have no doubt that we would not like to trace back the same route again.

Automotive industry is responding to this change by adopting quickly non polluting technologies for the vehicles and accelerating their EV launch plans to comply with the increasingly stringent regulations in Europe and China. As per Bloomberg finding,there are 500 EV models that would be available globally by 2022.

Passenger EV Vehicle sales jumped from 0.45 million in 2015 to 2.1 million in 2019 a steep jump many fold. While there has been an overall sluggishness in the auto sector in 2020 due to the pandemic, it is expected to take off again in a rapid pace. provided the impediment in the technology adoption is addressed. Which are - 

• Travel Range
• Safety
• Battery price
• Energy density improvement
• Charging Infrastructure

Although it will take a while to catch-up with China, its dominance would reduce over time. This growth wold drive the Lithium and Cobalt mineral consumption upward. 

However, the overhead costs for producing an EV batteries are still large and economies of scale have not yet been established meaning that the price of the raw materials used in a battery has a limited impact on the overall price of the battery,

One of the factor for the growth of EV-Batteries would be the availability of Cobalt (Co) another element extensively used in EV-batteries. The world is dependent on the Democratic Republic of Congo for supply of this rare mineral, which makes it unpredictable and highly susceptible to political risks. This may impact or impede the EV-battery growth. However, combination of other minerals with Lithium as anode material is being worked out to address this issue.

Increasing Usage and Demand by Portable Consumer Electronics (Batteries)

Global lithium ion battery pack market is expected to grow at a CAGR  >12% - 14% between 2020 and 2028. Lithium ion batteries are highly preferred in commonly used portable electronic equipment, such as laptops, smartphones, digital cameras, and power tools. Due to its high performance opposite other battery technologies, lithium ion batteries are witnessing substantial demand from consumer electronics manufacturers.

As the production of smartphones and other consumer electronic products increases at a rapid pace, demand for lithium ion batteries will also rise in the coming years. Nickel-cadmium batteries are losing their share to more reliable lithium ion batteries. Major lithium ion battery manufacturers are combining lithium with other materials, such as nickel, manganese, and cobalt, to further boost energy density and reliability of these batteries with linger life span. The Lithium-Cobalt-Oxide (LCO) - LiCoO2 with higher energy density is getting more popular with laptops and smartphones. The growing need for automation and battery-operated, portable power tools in other industrial applications will augment the growth of the lithium ion battery pack market as well. With the manufacturing and materials costs of LI-Ion batteries are likely to decline and performance expected to improve further this will be the material of choice.

Emergence of newer technology: More Power, Excellent Flexibility

Emergence of newer and newer products would require differently designed batteries and flexible batteries are one such marvel. There has been a breakthrough in flexible Lithium ion battery and now wearable electronics are finding new applications in healthcare monitoring, intelligent textiles, smartphones, Global Positioning System (GPS) tracking, and the Internet of Things (IoT).

The problem has always been the bulk of the lithium ion battery needed to power such devices. Now, researchers at The Hong Kong Polytechnic University (PolyU) have developed a highly flexible, high-energy Textile Lithium Battery that offers more stable, durable and safe energy supply for wearable electronics.

These new developments will drive the usage of Lithium.

Rising Demand from the ceramic and glass-making Industry

• Glass: including container glass, flat glass, pharmaceutical glass, specialty glass (used in touch screens) and fiberglass. These glass products are designed for durability, corrosion resistance and for use at high temperatures where thermal shock resistance is important. The addition of lithium increases the glass melt rate, lowers the viscosity and the melt temperature providing higher output, energy savings and moulding benefits.
  
  Advanced Glass market worldwide is projected to grow by US$42. 6 Billion, driven by a compounded growth of 9. 2%. Laminated Glass. Further, as per Globenewswire study it is poised to surpass US$ 320 billion by 2026. The growth of glass manufacturing market is fueled by significant use of glass in automobile and construction sectors. Notably, mounting environmental concerns and recyclability of glass have made glass as an alternative for plastic. The growth in the building and construction industry with the rapid growth in residential and commercial construction would boost the demand for laminated glass.
  

• Ceramics: including ceramic bodies, frits, glazes and heatproof ceramic cookware. Lithium lowers firing temperatures and thermal expansion and increases the strength of ceramic bodies. The addition of lithium to glazes improves viscosity for coating, as well as improving the glaze’s color, strength and luster.
  
  The global ceramics market size is expected to reach USD 407.72 billion by 2025, according to a new report by Grand View Research, Inc. Advancement in 3D printing technology coupled with its rising application in dental implants is anticipated to drive the ceramics industry market growth.

• Specialty Applications: It includes induction cook tops and cookware. Lithium’s extremely high co-efficient of thermal expansion makes these products resistant to thermal shock and imparts mechanical strength.

Growth in other Industry
Lithium chemicals are also used in a variety of other applications including:

• Lubricants: lithium is used as a thickener in grease ensuring lubrication properties are maintained over a broad range of temperatures.
• Aluminum Smelting: the addition of lithium during aluminum smelting reduces power consumption, increases the bath electrical conductivity and reduces fluorine emissions.
• Air Treatment: lithium is used as an absorption medium for industrial refrigeration systems and for humidity control and drying systems.
• Pharmaceuticals: lithium is used in the treatment for bi-polar disorder as well as in other pharmaceutical products.
• Steel Castings: The addition of lithium to continuous casting mold fluxes assists in providing thermal insulation and lubricates the surface of the steel in the continuous casting process.
• Iron Castings: In the production of iron castings, such as engine blocks, lithium reduces the effect of veining, thereby reducing the number of defective casts.

Thus the growth across the industry shall put pressure on the demand for Lithium led by automobile segment.