HOW DID THE LI-ION BATTERY SET OFF A TECHNOLOGY REVOLUTION?

THE CONTEXT: Recently, the Union Minister of Road Transport and Highways said rapid strides in technology and green fuel will reduce the cost of electric automobiles, bringing them at par with petrol-run vehicles in two years. Also, the 2019 Nobel Prize for Chemistry was awarded to John B. Goodenough, M. Stanley Whittingham, and Akira Yoshino for working towards the development of practical lithium-ion batteries.
In this context, this article analyses the scope of the Lithium-Ion Battery Market: Industry Trends, Share, Size, Growth, Opportunity, and the way forward.

THE EXPLANATION

What is a lithium-ion battery and how does it work?

  • A lithium-ion battery is a type of rechargeable battery that is charged and discharged by lithium ions moving between the negative (anode) and positive (cathode) electrodes. (Generally, batteries that can be charged and discharged repeatedly are called secondary batteries, whereas disposable batteries are called primary batteries.)
  • Because lithium-ion batteries are suitable for storing high-capacity power, they are used in a wide range of applications, including consumer electronics such as smartphones and PCs, industrial robots, production equipment, and automobiles.

Lithium-ion Battery – Applications

⦁ Electronic gadgets
⦁ Tele-communication
⦁ Aerospace
⦁ Industrial applications
⦁ Lithium-ion battery technology has made it the favorite power source for electric and hybrid electric vehicles

SIGNIFICANCE OF LI-ION BATTERIES IN THE CONTEXT OF THE ELECTRONIC MARKET

According to the Ministry of Commerce and Industry, India imported lithium cells and batteries – including rechargeable li-ion type devices – worth INR 8,984 crore in the last fiscal year (2020-2021). This figure consisted of INR 173 crore of non-rechargeable lithium devices and INR 8,811 crore of lithium-ion products.
China and Hong Kong were the chief sources of imports with China shipping 72.73% of the lithium-ion products imported by India and 32.05% of the non-rechargeable lithium cell devices. Hong Kong products accounted for 23.48% and 37.32% of those respective markets.
Indian lithium battery demand is expected to surge with the products used in renewable energy storage facilities and electric vehicles as well as data centers and consumer electronics. According to other data, the Indian lithium-ion battery market reached a value of US$ 2.1 Billion in 2021.

THE DOMESTIC PUSH

Recently, the Geological Survey of India has taken up seven other lithium exploration projects in Karnataka, Arunachal Pradesh, Andhra Pradesh, Chhattisgarh, Jharkhand, Jammu and Kashmir, and Rajasthan.

The reason: The ancient igneous rock deposits in the region (a by-product of large-scale volcanic activity in the Deccan plateau millions of years ago) hold the first traces of Lithium ever to be discovered in India

MAJOR IMPACTS ON E-VEHICLES: A POTENTIAL ALTERNATIVE TO REDUCE THE COAL DEPENDENCY

One of the major factors driving the rising demand for Lithium-Ion batteries is the growing popularity of electric cars. Rising EV sales across the country, particularly in the 2- and 3-wheeler segments, have boosted the demand. Lithium batteries have transformed how they are utilized due to their advantages over lead-acid batteries.

By 2030, the market for electric vehicle 

power packs are expected to reach $300 billion, with a large secondary market of more than 2.5 million e-rickshaws and 4,00,000 lead-acid battery-powered two-wheelers now on the road.

The most expensive component of an electric car is the lithium-ion battery, which accounts for 40-50 percent of the total cost. With the growing use of electric vehicles in our transportation system, the demand for Li-ion batteries for EV applications is expected to soar. Other uses, such as renewable energy integration with the grid, will raise Li-Ion battery demand in addition to electric vehicles.

According to government projections, India would require a minimum of 10 GWh of Li-ion cells by 2022. By 2025, it will be around 60 GWh, and by 2030, it will be around 120 GWh.

Environmental Aspect:

  • According to the World Air Quality Report 2021, published by Swiss Organization -IQ Air where it stated “India was home to 11 of the 15 most polluted cities in Central and South Asia in 2021. Delhi saw a 14.6% increase in PM2.5 concentrations in 2021, with levels rising to 96.4 µg/m3 from 84 µg/m3 in 2020.
  • It also highlighted that sources of PM2.5 “include internal combustion engines, power generation, industrial processes, agricultural processes, construction, and residential wood and coal burning.
  • According to a Government source, by 2030, nearly three-fourths of Indian two-wheelers and all new cars are expected to be EVs (electric vehicles). It will significantly reduce the dependency on coal and reduce pollution significantly.

MERITS OF LI-ION BATTERIES

Compared to their lead-acid counterparts, lithium-ion batteries are much lighter, more efficient, and have more power storage. These batteries are widely used commercially in mobiles, laptops, and other electronic equipment.

High energy density: High energy density is one of the chief advantages of lithium-ion battery technology. With electronic equipment such as mobile phones needing to operate longer between charges while still consuming more power, there is always a need for batteries with a much higher energy density.

For example, NiMH batteries would not be able to provide the charge capacity required for a modern smartphone. Using Nickel Metal Hydride battery technology, a smartphone would not last long enough, especially if the battery needed to keep within the same size constraints.

In addition to this, there are many power applications from power tools to electric vehicles. The much higher power density offered by lithium-ion batteries is a distinct advantage. Electric vehicles also need battery technology that has a high energy density.

Self-discharge: One issue with many rechargeable batteries is the self-discharge rate. The rate of self-discharge of Li-ion cells is much lower than that of other rechargeable cells such as Ni-Cad and NiMH forms. It is typically around 5% in the first 4 hours after being charged but then falls to a figure of around 1 or 2% per month.

Low maintenance: One major lithium-ion battery advantage is that they do not require maintenance to ensure their performance.
Ni-Cad cells required a periodic discharge to ensure that they did not exhibit the memory effect. As this does not affect lithium-ion batteries and cells, this process or other similar maintenance procedures are not required. Likewise, lead-acid cells require maintenance, some needing the battery acid to be topped up periodically.

Cell voltage: The voltage produced by each lithium-ion cell is about 3.6 volts. This has many advantages. Being higher than that of the standard nickel-cadmium, nickel-metal hydride, and even standard alkaline cells at around 1.5 volts and lead-acid at around 2 volts per cell, the voltage of each lithium-ion cell is higher, requiring fewer cells in many battery applications. For smartphones, a single cell is all that is needed and this simplifies the power management.

Variety of types available: There are several types of lithium-ion cells available. This advantage of lithium-ion batteries can mean that the right technology can be used for the application needed. Some forms of lithium-ion battery provide a high current density and are ideal for consumer mobile electronic equipment. Others can provide much higher current levels and are ideal for power tools and electric vehicles.

DEMERITS OF LI-ION BATTERIES

Fire Risk: Lithium-ion batteries, whether they are used in cars or electronic devices, can catch fire if they have been improperly manufactured or damaged, or if the software that operates the battery is not designed correctly.

The major weakness of lithium-ion batteries in electric cars is the use of organic liquid electrolytes, which are volatile and flammable when operating at high temperatures. An external force such as a crash can also lead to chemical leakage.

Protection/battery management system required: Lithium-ion cells and batteries are not as robust as some other rechargeable technologies. They require protection from being overcharged and discharged too far. In addition to this, they need to have the current maintained within safe limits. Accordingly, one lithium-ion battery disadvantage is that they require protection circuitry incorporated to ensure they are kept within their safe operating limits.

Aging: One of the major lithium-ion battery disadvantages for consumer electronics is that lithium-ion batteries suffer from aging. Not only is this time or calendar dependent, but it is also dependent upon the number of charge-discharge cycles that the battery has undergone.

Often batteries will only be able to withstand 500 – 1000 charge-discharge cycles before their capacity falls. With the development of Li-ion technology, this figure is increasing, but after a while, the battery may need replacing and this can be an issue if they are embedded in the equipment.

Cost: A major lithium-ion battery disadvantage is its cost. Typically, they are around 40% more costly to manufacture than Nickel-cadmium cells. This is a major factor when considering their use in mass-produced consumer items where any additional costs are a major issue.

Developing technology: Although lithium-ion batteries have been available for many years, they can still be considered an immature technology by some as it is very much a developing area. This can be a disadvantage in terms of the fact that the technology does not remain constant. However as new lithium-ion technologies are being developed all the time, it can also be an advantage as better solutions are coming available.

GOVERNMENT INITIATIVES TO PROMOTE ELECTRIC VEHICLES

  • India is the fourth-largest auto market globally, and some estimates suggest there are close to 170 active investors in the country’s EV start-up ecosystem.
  • To promote the adoption of EVs, the Department of Heavy Industry formulated a FAME India Scheme (Faster Adoption and Manufacturing of (Hybrid and) Electric Vehicles in India) in 2015.

The government has launched the following initiatives to Promote Electric Vehicles in India:

  • Under the new GST system, GST on EVs is reduced from 12% to 5% against the 28% GST rate with up to 22% for conventional vehicles.
  • The government has proposed the exemption of registration fees for battery-operated/electric vehicles to promote eco-friendly vehicles in the country.
  • The Ministry of Power has also allowed the sale of electricity as a ‘service’ for electric vehicles’ charging. It will attract investors into the charging infrastructure.
  • Also, The government has granted an exemption to battery-operated transport vehicles and vehicles that run on methanol and ethanol fuels from the requirements of the permit.
  • The Ministry of Road Transport and Highways has allowed 16-18 years to obtain driving licenses to drive e-scooters.
  • Lithium wars: Battery makers are also seeking to take advantage of the ₹18,100-crore production-linked incentive (PLI) scheme to manufacture lithium-ion cells within the country. In such a scenario, securing lithium supplies will play a critical role in the pivot towards a greener economy.

THE CONCLUSION: The use of Lithium-ion batteries is the future of a greener and eco-friendly environment. The use of lithium-ion batteries helps in cutting down the pollution level and improving the air quality. Energy storage and mobility are going to be the most popular concept in India as they won’t only save us costs but also have a huge positive impact on climate change. With the introduction of different government initiatives, the Indian Government is also trying to promote the use of batteries for a secure future. Having a manufacturing unit in India will help in cost reduction and increase employment.
Along with the batteries being manufactured, they can be recycled and reused too, decreasing the usage of gas and leading to an increase in pollution levels. For a better future, we need to start working today and have a clear vision toward the goal.

THE MAIN PRACTICE QUESTIONS:

  • The Noble Prize in Chemistry of 2019 was jointly awarded to John B. Goodenough, M. Stanley Whittingham, and Akira Yoshino for working towards the development of practical lithium-ion batteries. How has this invention impacted the everyday life of human beings?
  • What are the present challenges before the transition of shifting to e-vehicles? How do emerging technologies provide an opportunity for reducing coal dependency?