Source: (Blagoeva et al., 2019b), (Crompton, 2000)
This RMIS application focuses on raw materials for batteries and their relevance for the sustainable development of battery supply chains for Europe. The first five sections cover the main trends and some key parameters in supply, demand, stocks and flows and reuse. The last section, in the form of an interactive data viewer contains the latest data from research on for batteries (all chemistries) and the associated materials that are entering, exiting or in use in the EU territory. These pages focus on the current and future trends related to the introduction of lithium-ion batteries for e-mobility. The content will be updated in the future when more information on trends in sourcing and manufacturing of battery primary raw materials and on actual collection and recycling flows becomes available.
A battery is an electrochemical cell that stores energy in a chemical form. The battery can convert this chemical energy to usable electrical energy. Batteries are used in a wide range of applications in our daily life. By means of using different chemical compounds for cathodes and anodes, a discharging process provides electrical current. Ideally, for rechargeable - or secondary batteries - this process is reversible by re-charging and reconverting the materials in the cell to their original state.
A wide range of batteries exist with different chemistries. These contain a wide range of raw materials. For example single use – or primary – batteries are based on various chemistries such as zinc, mercury, manganese and lithium. For rechargeable – or secondary – batteries, the main chemistries are traditional lead-acid based batteries or nickel based batteries, of which nickel-cadmium and nickel metal hydride batteries are best known. The largest volume in weight are lead-acid batteries used in vehicles for starting, lighting and ignition (SLI). Generally speaking mercury batteries and most of the cadmium batteries are forbidden to be placed on the market. Rapidly growing are lithium based chemistries, which were originally used in portable electronic products, are increasingly used in electric vehicles (xEV) recently.
Battery cells are clustered in modules containing a casing for the cells, cooling systems and connectors. For xEV, these modules are subsequently grouped in a so-called battery pack that includes an outside casing, a battery management system (BMS), various sensors, cooling and cables. This is sketched the figure below.
There are many individual materials possibly present in the cell electrodes, electrolytes and separators. When focusing on the inorganic content of the active materials, the most relevant ones are antimony (Sb), cadmium (Cd), cobalt (Co), copper (Cu), graphite (C*), lithium (Li), manganese (Mn), nickel (Ni), lead (Pb), silicon (Si) and zinc (Zn). Of these materials, antimony present in lead-acid batteries in vehicles and energy storage, and cobalt plus natural graphite used in Lithium-ion (Li-ion) batteries are marked as critical in the 2017 list of critical raw materials. Equally, silicon metal is highlighted as critical and considered to improve the energy density of future Li-ion battery types.
Supply chains comprise of several stages, starting from raw materials sourcing, materials refining into chemically active materials, components and cell manufacturing, and when needed a module/pack assembly (e.g. for large-capacity end-products such as electric vehicles and energy storage systems). The most technically complex and costly step along the battery value chain is the cell manufacture.
At the start of the supply chain, there can be specific supply risks related to geopolitical stability in producing countries. For raw materials like cobalt, mine production from the Democratic Republic of Congo (DRC) is associated with unstable political conditions and various business difficulties. According to BGR, last year a share of 15%-20% of the cobalt produced in (and exported from) DRC stem from artisanal and small-scale mining (BGR, 2018). This share fluctuates significantly depending on the actual cobalt price. From a social point of view, working in such mines can expose miners to increased risks of landslide hazards, heavy metals through dust inhalation, food and water contamination and high level of radiations. Poor sanitary conditions and insufficient safety measures in miners’ camps can often be observed. Harsh working conditions and widespread child labour are also reported (BGR, 2017, Ökoinstitute, 2011).
Another supply risk issue relates to positive and negative price peaks affecting the business stability for long term investments in mining and refining capacity in particular. Despite the recent fears of shortages and price volatility, according to some analysts (McKinsey, 2019), the supply of lithium for example is not expected to be an issue for the battery supply chain in the short or medium term. This is due to unused capacity and new mining projects coming online in the near future. This might be different for cobalt and nickel in particular. Not all nickel in the global supply chain is suited for Li-ion battery production. High-grade nickel products are dependent on the production of nickel sulphate, which represents a principal ingredient in NMC (Lithium Nickel Manganese Cobalt Oxide) and NCA (Lithium Nickel Cobalt Aluminium Oxide) batteries. Due to past price collapses, the investments in refining capacity for nickel have been low, threatening the requested supply of nickel class I (with a purity above 99.8%) in particular. More information on this subject is presented here.
Supply is concentrated in the case of global production of natural graphite, which comes predominantly from China. However, synthetic graphite is a viable substitute of natural graphite. Thus, the supply risk for graphite can be considered moderate.
Supply risk also relates to subsequent refining of extracted minerals: for instance, cobalt refineries are rarely located near the source mine sites. Instead, major refiners purchase cobalt concentrate from various mines, ship to their own locations and refine cobalt to a usable form for cathode production. Following large investments made in this sector in China, the majority of cobalt refining takes place there, posing a second level supply risk. Overall, China is the major supplier for around half of the volume of three key raw materials used in Li-ion batteries (i.e. cobalt, nickel and natural graphite). The same counts for lithium refining where European capacity is currently missing altogether. More information on the bottlenecks in the various supply chain stages can be found here.
There are a number of key EU policies and measures documents steering towards a more sustainable supply of battery raw materials:
In 2008, the Commission adopted the Raw Materials Initiative. This initiative sets out a strategy for tackling the issue of access to raw materials in the EU. The strategy has 3 pillars that aim to ensure fair and sustainable supply of raw materials from global markets, sustainable supply of raw materials within the EU and resource efficiency and supply of 'secondary raw materials' through recycling.
The European Innovation Partnership on Raw Materials (EIP-RM) is a stakeholder platform that brings together representatives from industry, public services, academia and NGOs. Its mission is to provide high-level guidance to the European Commission, Members States and private actors on innovative approaches to the challenges related to raw materials. One of the tasks relates to enhancing the EU Raw Materials Knowledge Base and managing the RMIS. Hence the provision of the latest battery raw materials data on RMIS.
Another EIP-RM action relates to the preparation of the EU Raw Materials Scoreboard. Here, specific information related to e-mobility and raw materials in batteries is provided in the Introduction. under the EIP-RM relate to conflict minerals and responsible sourcing as well as R&D related to substitution and new battery chemistries for the future.
The Circular Economy Action Plan (CEAP) was adopted four years ago. This plan covered, amongst others, the improvement of the markets for secondary raw materials (SRM), including recovery of critical raw materials (CRMs) from batteries. This is discussed in more detail in the 2018 JRC report on CRMs and the circular economy. This reports highlights that the EU is relatively well-positioned globally with established existing collection and recycling practices. On the 4th of March 2019, the European Commission adopted a comprehensive report on the implementation of the Circular Economy Action Plan (CEAP).
More information on the EIP, the CEAP and other policy documents and initiatives related to raw materials can be found in the RMIS Policy & Legislation tile.
In 2017, the Renewed Industry Policy Strategy targeted investments in a smart, innovative and sustainable industry for Europe. As one of the actions, a revised list of critical raw materials helps to highlight the needs for the secure, sustainable and affordable supply for the EU manufacturing industry. Several of the CRMs are found in batteries.
As part of the third mobility package of the renewed Industry Policy Strategy, the Strategic Action Plan for Batteries aims, mainly in its first pillar, to support the (primary and secondary) raw materials activities of the Battery Alliance. For Europe, this Strategic Action Plan on Batteries aims to develop a significantly sized European battery cells manufacturing and fully competitive value chain in Europe.
In 2018, a recent overview of raw material developments is highlighted in a specific Commission Staff Working Document - Report on Raw Materials for Battery Applications. Various work streams of the Strategic Action Plan on Batteries are currently being implemented (see Implementation of the Strategic Action Plan on Batteries).
The Batteries Directive 2006/66/EC, is the only piece of EU legislation entirely dedicated to batteries. It establishes rules for batteries placed on the market in the EU regarding their content of hazardous substances and sets specific rules for the collection, treatment, recycling and disposal of waste batteries and accumulators. It seeks to improve the environmental performance of batteries and accumulators and of the activities of all economic operators involved. The Directive is under revision and will take into account technical developments like newer chemistries and applications as well as enhancing circularity further.
For more information, in April 2019, the Commission Report on the Implementation of the Batteries Directive and its impact on the environment and internal market was released, as well as a Commission Staff Working Document regarding the Evaluation of the Directive. More information on the stakeholder consultations and the evaluation roadmap of the Batteries Directive can be found here.
The overall total supply-demand balance depends on many factors. On one hand, the demand for battery raw materials is expected to rise sharply, especially with the market increases of e-mobility. On the other hand, the supply side is anticipating with many new mining and refining projects in the pipeline. The next sections introduce step by step the latest data on the supply and demand and provide more information on recent trends.
Reuse and recycling can have a significant mitigating impact on the material needs for the future and distinct opportunities for Europe to improve circularity and access to secondary raw materials. The stocks & flows section provides information on the market input and outputs as well as accumulation of batteries in Europe.
Currently information on collection and recycling volumes is not yet included. This will be added as a separate new section at a later stage. Further JRC comprehensive assessment of the main supply, demand, stocks, reuse and recycling trends is planned covering all relevant battery raw materials and supply chain stages in the coming year.