![]() In contrast, there are adequate supplies of lithium and iron, two key elements in LFP batteries. “The dependence on one country for cobalt supply poses risks and uncertainties to the value chain,” a producer of precursor materials source said.Įarlier this month, the Federal Consortium for Advanced Batteries in the United States published a document calling for the elimination of cobalt and nickel from battery cathodes by the end of this decade “to reduce US battery manufacturing dependence on scarce materials, or those controlled by unreliable partners.” The scarcity of battery metals, especially cobalt, is another crucial factor for the battery supply chain when considering a cobalt-free battery technology.Ībout 70% of the world’s cobalt is mined in the Democratic Republic of Congo (DRC), while the cobalt supply chain is looking for responsible sourcing in light of the unregulated artisanal mining activities in various locations. Fastmarkets’ price assessment for nickel sulfate, min 21%, max 22.5% cobalt 10ppm max, exw China, was 33,500-34,500 yuan per tonne on June 25. The corresponding price for nickel sulfate has ranged between 22,750 yuan and 36,500 yuan per tonne in the past two years. Moving into 2021, the price jumped by 67% in the first two month of the year before falling by nearly 28% in mid-May.įastmarkets’ latest price assessment for cobalt sulfate, 20.5% Co basis, exw China, was 74,000-76,000 yuan ($11,451-11,760) per tonne on Friday June 25. The price for cobalt sulfate in China fell by nearly 76% between April 2018 and July 2019, and then was rangebound at 40,000-60,000 yuan ($6,190-9,284) per tonne between August 2019 and December 2020, according to Fastmarkets’ data. In the context of similar performance in energy density and driving range, the cost of the whole battery patch using LFP units is about 15-18% lower than for an NCM 523 (Ni:Co:Mn 5:2:3) or NCM 622 installation, according to a source with an automotive manufacturer.īut the cost gap between LFP and NCM batteries might vary depending on the absolute prices of nickel, cobalt and lithium, a source with a battery cathode materials producer said.įurthermore, since an LFP battery does not require any cobalt or nickel, OEMs and battery manufacturers are not subject to the price volatilities affecting those metals, which are essential for different configurations of NCM batteries. In addition to its safe performance because it is less vulnerable to thermal runaway, the lower cost of an LFP battery is its best selling point. This change in battery chemistries was encouraged by the appealing incentives and government guidance available at the time.īut a more recent cut in EV subsidies in the country, and OEMs’ attempts to minimize their exposure to volatile cobalt and nickel prices, has restored the favor being shown toward LFP batteries since 2020. In the second half of the past decade, most original equipment manufacturers (OEMs) in China shifted to NCM lithium-ion batteries in an attempt to achieve higher battery energy density. The higher the energy density an EV battery has, the greater the driving range of the vehicle on a single charge. LFP batteries are among the earliest well-developed electric vehicle (EV) battery technologies in China, and are well known for their stable and safe performance, despite their overall low energy density compared with NCM batteries. Some market sources noted that it was the first time in three years that the former has exceeded the latter in terms of output. ![]() The output of lithium iron phosphate (LFP) batteries in China surpassed that of nickel-cobalt-manganese (NCM) units in May 2021. The situation has also raised questions about whether the change in sentiment would be mirrored outside China.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |