The Weekly Potential #10
This week in the energy and materials industries: Saudi Arabian electric vehicles, CATL's solid-state batteries, Rivian's new battery cell formats, shortage of transformers, ...
Welcome to the 10th edition of The Weekly Potential, a newsletter providing you insights into the energy and materials industries. This week we are diving into Saudi Arabian electric vehicles, CATL's solid-state batteries, Rivian's new battery cell formats, shortage of transformers, high nickel cathodes, making batteries sustainable and profitable, and more.
In other news, we have reached a milestone: publishing this newsletter for 10 consecutive weeks! Thank you to all the readers!
We have also recently published a deep dive on Toyota’s batteries, if you’d like to see what Toyota is up to.
Let's dive in! 🔋
Lithium Horizons is a reader-supported publication. For deeper insights, including in-depth analysis, the latest developments, and expert insights into the energy and materials industries, subscribe below.
Industry Developments
CEER, Saudi Arabia's first electric vehicle brand, has entered into a strategic partnership with Rimac Technology. This collaboration involves Rimac supplying high-performance, fully integrated Electric Drive Systems for CEER's upcoming flagship range of electric vehicles. Rimac Technology announced earlier this year a strategic partnership with BMW Group, cementing it as a Tier 1 supplier for electromobility. Now, it is poised to support CEER's ambition to revolutionize Saudi Arabia's automotive industry with advanced electric vehicle technology.
Rimac Technology and CEER CEOs shaking hands at the signing ceremony. Source: Rimac Contemporary Amperex Technology Co. Limited (CATL) has moved into the sample validation phase for its all-solid-state batteries. This phase involves testing sulfide-based solid-state batteries aimed at achieving an energy density of 500 Wh/kg (for comparison, best lithium-ion batteries on the market today reach ca. 250 Wh/kg). With substantial investment in R&D, including an expanded team of over 1,000 engineers, CATL is targeting small-volume production by 2027.
Hitachi Energy's CEO, Andreas Schierenbeck, has issued a warning of a significant shortage in transformer supply, attributing it to overwhelming demand driven by the growth in renewable energy projects and data centers supporting AI technology. Schierenbeck highlighted that the transformer industry is facing challenges in scaling up production to meet this surge in demand. Even with substantial investments in manufacturing capacity, like Hitachi's $6 billion commitment over the next three years to expand production and hire more workers, the lead times for transformers have extended from six to eight months to as much as 115-130 weeks, signaling a persistent supply crunch until at least 2026. This situation has led to higher transformer prices and potential bottlenecks in the renewable energy sector, impacting the transition to sustainable energy sources.
L&F, a South Korean battery materials company, has announced plans to scale up the mass production of NMC cathode materials with 95% nickel content. NMC's versatility in adjusting its composition to balance between energy density, cost, and safety has made it a favored choice in the automotive sector. By increasing nickel content, L&F aims to leverage the continued growth in the EV market, where manufacturers are seeking batteries with higher capacities and longer life cycles. The jump from around 80 per cent in an NMC811 battery to 95 per cent could increase the range by 150 kilometres.
Rivian has selected LG Energy Solution for the supply of advanced 4695 cylindrical batteries. The 4695 cells boast six times the energy storage capacity of the previously common 2170 format, allowing for longer travel distances and better space utilization, potentially leading to lower cost per kWh at pack level. These cells are larger than Tesla’s 4680 cells and will be manufactured in LGES’s facility in Arizona, instead of South Korea, to comply with the Inflation Reduction Act.
Paper of the Week
Energy & Environmental Science has published an article about designing sustainable batteries. They argue that traditionally improved sustainability comes with a penalty in terms of cost and performance. However, both sustainability and profitability can be increased by extending battery lifetime and enabling direct recycling, where anode and cathode materials maintain their structure and functionality.
On the Go
Commodity Culture interviewed the COO of EMP Metals, Paul Schubach, on the lithium metal mining and supply. Market seems to indicated that lithium prices could have bottomed.
Read More
Thank you for reading. If you found the post interesting, consider sharing it with your network and subscribing. Such actions help spread the knowledge and support Lithium Horizons.
