Critical minerals and cell chemistry technology evolution roadmap

EVreporter recently hosted an insightful webinar focussed on Battery materials and the Lithium-ion battery value chain. Venkat Rajaraman, CEO of Cygni Energy, made an impactful presentation on minerals critical to a clean energy future, their global distribution, the status of the current value chain and its geopolitical implications.

Critical minerals – It’s a zero-sum game

The mining of critical and rare earth elements can be described as a “zero-sum game” in which a handful of countries [Figure-1] exert control in a market characterized by limited global reserves, intense global competition due to scarcity and uneven distribution, and increasing global demand. This competition for control over these resources sometimes results in geopolitical tensions. Additionally, there is a growing concern about environmental degradation caused by mining activities. Achieving sustainable access to these essential resources while taking into account their environmental impact is of paramount importance.

Figure 1:  Critical Minerals – Zero-Sum Game

Critical minerals for clean energy products

Critical minerals are pivotal in clean energy products, and there are 16 such minerals to consider. The Weighted Coverage Concentration Index [Figure 2] helps identify those minerals that are utilized in a broader array of clean energy products.

Figure 2: Critical Minerals for Clean Energy Future

Additionally, understanding production demand projections for these minerals by 2050 is crucial. In Quadrant 1, we find medium-impact minerals like neodymium, vanadium, and indium, which have essential applications in wind turbines, electric vehicle motors, alloys for automobiles, and solar panels. These minerals are relatively less impacted by demand when compared to others. Quadrant 2 contains high-impact minerals, with lithium standing out as vital for energy storage, experiencing the highest demand growth. Quadrant 3 features high-impact, cross-cutting minerals, exemplified by aluminium, crucial for both energy generation and storage technologies, and it is expected to witness substantial demand growth. Finally, Quadrant 4 involves cross-cutting minerals like copper, zinc, manganese, and molybdenum alloy, which, although not experiencing as dramatic demand growth as those in Quadrant 2, will continue to be in demand, irrespective of evolving technologies in clean energy products due to their essential roles.

Critical mineral processing and China

The processing of critical minerals for lithium batteries has become a focal point in the global energy transition, and China’s dominance in this arena has triggered geopolitical considerations around the world. China presently controls a significant portion of the critical mineral supply chain, particularly for rare earth elements and lithium. This has raised concerns among other nations, prompting them to devise their own geopolitical strategies to secure access to these vital resources. Countries are actively diversifying their sources of critical minerals, encouraging domestic mining and processing, and forging international partnerships to reduce their reliance on a single dominant supplier. This competition for resource access underscores the strategic importance of critical mineral processing as nations aim to ensure their energy security and bolster their positions in the evolving clean energy landscape.

Lithium-ion cell chemistry – Technology evolution

The next 10-15 years promise to be a game-changer for electric mobility. In this period, we can anticipate significant advancements in the composition of cathodes, anodes, electrolytes, and separators within lithium-ion batteries [Figure 3]. Cathode materials are likely to shift towards higher nickel content, offering increased energy density and improved thermal stability. Anode materials, on the other hand, may increasingly incorporate silicon or lithium metal, further boosting energy storage capacity.

Enhanced solid-state electrolytes will contribute to safer and longer-lasting batteries as they replace the traditional liquid electrolytes prone to leakage and thermal runaway. Meanwhile, separator materials will evolve to facilitate faster ion transport while maintaining thermal resistance. These innovations collectively promise extended driving ranges, faster charging times, and enhanced safety standards, propelling electric mobility into a more sustainable and efficient future.

Figure 3: Lithium Cell Chemistry – Technology Evolution
Source: The Future of Battery Technology Report, S&P Global

Battery passport

Ensuring the traceability and sustainability of critical minerals, particularly in the context of Lithium Batteries, is paramount. The concept of the Battery Passport, championed by the Global Battery Alliance (GBA), serves as a significant stride toward this goal. GBA, a global public-private platform comprised of over 150 organizations, has set a lofty objective: to facilitate the widespread adoption of sustainable EV and storage batteries by the year 2030.

This Battery Passport, in a broader context, represents a standardized documentation system meticulously monitoring vital battery information, including composition, origin, manufacturing processes, and environmental impact. Its core purpose is to deliver enhanced transparency to consumers and stakeholders, thereby illuminating the intricate environmental and social dimensions of batteries. Ultimately, adopting a version of this Battery Passport in India holds great promise, as it stands to promote and solidify responsible and sustainable practices in the nation’s burgeoning electric mobility sector.

India’s Mines and Minerals Bill, 2023

The Mines and Minerals Bill of 2023 in India represents a comprehensive effort to revamp and modernize the nation’s mining sector. This bill introduces significant reforms, including opening up opportunities for private players, identifying 30 key minerals for strategic development, and establishing a joint venture company known as KABIL (Khan Bidesh India Limited). It also lays the groundwork for creating a Center of Excellence for Critical Minerals (CECM). The primary objectives of this bill encompass promoting transparency, attracting foreign investments, and fostering sustainable mining practices. It achieves these goals by streamlining licensing and approval processes, introducing competitive bidding for mineral concessions, and instituting a National Mineral Index to regulate mineral prices, all while making profound changes to existing mining laws in the country.

Cathode evolution

The evolution roadmap for lithium-ion battery cathode materials over the next 10-15 years promises transformative advancements in energy storage technology. Researchers and industry leaders are striving to develop cathode materials that offer higher energy density, increased cycle life, and improved safety. This journey involves transitioning from the prevalent lithium cobalt oxide (LCO) and lithium iron phosphate (LFP) cathodes towards emerging materials like lithium nickel manganese cobalt oxide (NMC), lithium nickel cobalt aluminium oxide (NCA), and solid-state batteries. NMC cathodes, for example, are expected to see continuous refinement, with higher nickel content versions providing enhanced performance. Moreover, innovations in silicon anode materials, sulfur-based cathodes, and solid-state electrolytes are poised to unlock even greater potential for lithium batteries, paving the way for more efficient and sustainable energy storage solutions to meet the demands of an electrified future.

Summary

In India’s battery materials sector, there is a clear path forward encompassing various aspects. To ensure demand assurance, steps should include:

• Effectively implementing the Extended Producer Responsibility (EPR) targets and scheme

• Digitizing waste management to ensure proper accounting of critical minerals

• Establishing robust battery collection channels through partnerships

• Implementing battery traceability systems for monitoring used batteries

Policy support measures should involve providing Production-Linked Incentives (PLI) for establishing critical mineral processing and refining units and specifying guidelines for the transportation, labelling, and handling of used Lithium-ion Batteries (LiBs).

On the financing front, initiatives should comprise relaxing import restrictions on critical minerals and scrap materials, offering incentives like viability gap funding to make Lithium battery recycling economically viable, and encouraging domestic and overseas exploration, mining, and refining of critical mineral resources.

Lastly, in terms of research and technology, there should be a focus on developing high-performance LiB electrodes using earth-abundant alternatives, studying battery degradation and creating diagnostic technology to assess a battery’s reusability, and establishing new laboratories for expedited validation and sample checks.

The author can be reached at venkat@cygni.com.

Also Read: Cygni Energy raises INR 100 crores in Series B investment