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The Sticking Point for EVs… Lithium

By Ted Nelson ecomii.com
August 31, 2009
File under: Economy, Electric

lithium.jpg

Electric vehicles (EVs) have been anointed as the green cars of the future, gaining support from the federal government, auto industry, and Silicon Valley. Some EV and PHEV (plug-in hybrid electric vehicle) models are already available, with many more set to launch in the coming years.

However, EVs and PHEVs are not expected to overtake the internal combustion engine in the short-term. Part of this is due to the fact that it’s hard to change the status quo. Part of it, though, is related to price and manufacturing costs. And around half of an EVs manufacturing cost comes from its lithium ion battery. Mass adoption of EVs depends largely on improving the competitiveness of their batteries.

The demand for lithium is rising as the number of battery applications for the material rises. It is used in cell phone batteries and other electronics, and now increasingly in vehicles. As demand rises faster than supply, price increases.

The supply of lithium is limited by both geological and political factors. Lithium is a finite natural resource: only so much of it exists in the world. It is unclear whether increasing demand for the metal will exhaust the world’s lithium reserves or lead to new discoveries (as was the case with oil).

Half of the world’s known lithium supply is located in Bolivia, where nationalist leader Evo Morales is determined to keep foreign hands off of his lithium (ironically, his lithium industry will be funded largely by Venezuela…).

If peak lithium throws a wrench in the burgeoning lithium economy, there is still hope for the EV. (Other fuel sources, such as biofuels, oil, and even hydrogen will of course be competing for market share with EVs in the meantime.)

PHEVs

PHEVs rely on smaller batteries with less storage capacity. This limits how far they can travel on electricity (the Chevy Volt, for example, will go a meager 40 miles on electricity alone), but allows for an unlimited range by complimenting the electric battery with a traditional internal combustion engine.

If PHEVs gain mass market acceptance before pure EVs, as many auto industry insiders believe, this will limit the pressure on lithium somewhat compared to pure EVs.

Leasing

One school of thought is to sell EVs, but only lease their batteries. This will decouple the cost of the vehicle from its energy cost: consumers can compare the cost of the battery (plus the electricity used to charge it, which costs little) to the price of gasoline, instead of just looking at the higher price tag of EVs compared to traditional models.

Another advantage of this approach is that 80% of a lithium ion car battery’s useful life comes after it is no longer strong enough to be used in a vehicle. Car makers can find profitable ways to use the batteries after their leases expire. A few companies experimenting with battery leasing include Think Car, Project Better Place, and Nissan.

Alternatives to lithium

A simple answer to the problem of lithium scarcity: don’t use lithium. Using a more abundant metal in EV batteries would sidestep the issue completely. Toyota has invested in researching zinc-air batteries. However, these batteries are not rechargeable. At the moment there is no substitute to lithium that can compete as both rechargeable and light weight.

 
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1  Comment
  1. ohiojim
    September 3, 2009 8pm EDT

    I’m fully convinced that the Next Big Thing in auto technology will be either cellulosic ethanol (maybe biomass, whatever) or hydrogen. As battery chemistries rely on rare, expensive materials I think EVs are an interim technology that won’t last too long.

    unless we get fusion power first, that is.

 
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