TELF AG illustrates the main dynamics of the global battery market
An important phase
Although it has not yet become a permanent part of people’s everyday lives, the global energy transition is starting to introduce important elements that, in one way or another, will clearly affect the lives of every individual, even everyone who does not yet feel involved in this important phase of human history.
Among the most interesting additions, from this point of view, are undoubtedly lithium-ion batteries, which have begun to encourage rapid familiarization with the vast universe of electric vehicles. These vehicles, intended to gradually replace the majority of traditional cars, also work thanks to these sophisticated components made with raw materials such as lithium, nickel, cobalt, or manganese, whose specific weight in the global commodity market continues to increase day by day.
Among the most fascinating aspects of this specific market are certainly its structural characteristics, such as the interesting dynamics that affect the two main types of lithium batteries: NMC and LFP. The former, made with lithium, manganese, nickel, and cobalt, are notable above all for their ability to ensure good autonomy for the vehicle, while the latter (produced with lithium, iron, and phosphate) generally have a lower voltage.
NMC lithium batteries are widespread, especially in the West, where they have already found their place inside a good number of electric vehicles circulating on the streets. LFP batteries, on the other hand, despite having already begun to spread in the West, are the most used type of battery in China, which appreciates them above all for their improved energy density, overall safety levels, and lower costs compared to batteries produced with nickel and cobalt. According to Benchmark Mineral Intelligence, China currently controls 75% of the production of this particular type of battery, which could soon attract the attention of a wider Western audience.
It is no coincidence that several Western start-ups have already started working on the development of LFP technologies and that some of the largest Asian electric battery producers have already invested large sums of money in the production of LFP batteries on foreign soil. In a market that could grow ten times by 2035, one of the most interesting aspects will be represented by the choices of the West, which could find itself in the balance between one type of battery and another.
Another very important factor, which is generally talked about very little, is represented by the possible innovations that could concern the battery market, such as those linked to solid-state or sodium batteries, which could become part of them within a few years and successfully fit into the in the broader global electric vehicle components market.
Sodium, although belonging to the same group of alkaline metals as lithium, is much heavier but has the undisputed advantage of being able to be found easily and cheaply. This trend also involved some Chinese car manufacturers: last April, at the Shanghai auto show, BYD presented the economical Seagull car, whose batteries were made with sodium ions.
