Report on Recent Trends in EV Battery Technology

Abstract

Future progress in hybrid and battery vehicles heavily relies on the optimization of involved
battery components. Attention must specifically be given to the material composition and surface
coatings of the electrodes as well as the electrolyte used to maximize energy output, while also ensuring
safety. The energy output of the most promising battery, the Li-ion battery (LIB), must result in driving
ranges, which can compete with the 600 km driving range of combustion engine (ICE) vehicles.
Consequently, ongoing research activities in cell chemistry, electrode surface engineering, electrolyte
engineering, and engine lubrication offer the greatest opportunity in achieving these goals. Battery
technologies are an essential catalyst to unlock growth and new advances in sectors such as electric
vehicles (EVs), electronic devices and battery energy storage (BES) for renewable energy. The
increasing reliance on battery storage is driving enormous demand – overall, battery applications are
expected to become a $90 billion-plus market by 2025, up from $60 billion in 2015.

Current Status
Lithium-Ion Batteries
Lithium-ion batteries are currently used in most portable consumer electronics such as cell phones and
laptops because of their high energy per unit mass and volume relative to other electrical energy storage
systems. They also have a high power-to-weight ratio, high energy efficiency, good high-temperature
performance, long life, and low self-discharge. Most components of lithium-ion batteries can be
recycled, but the cost of material recovery remains a challenge for the industry. Most of today's all-
electric vehicles and PHEVs use lithium-ion batteries, though the exact chemistry often varies from
that of consumer electronics batteries. Research and development are ongoing to reduce their relatively
high cost, extend their useful life, use less cobalt, and address safety concerns in regard to various fault
conditions.

Nickel-Metal Hydride Batteries

Nickel-metal hydride batteries, used routinely in computer and medical equipment, offer reasonable
specific energy and specific power capabilities. Nickel-metal hydride batteries have a much longer life
cycle than lead-acid batteries and are safe and abuse tolerant. These batteries have been widely used
in HEVs. The main challenges with nickel-metal hydride batteries are their high cost, high self-
discharge rate, heat generation at high temperatures, and the need to control hydrogen loss.

Lead-Acid Batteries
Lead-acid batteries can be designed to be high power and are inexpensive, safe, recyclable, and
reliable. However, low specific energy, poor cold-temperature performance, and short calendar and
lifecycle impede their use. Advanced high-power lead-acid batteries are being developed, but these
batteries are only used in commercially available electric-drive vehicles for ancillary loads. They are
also used for stop-start functionality in internal combustion engine vehicles to eliminate idling during
stops and reduce fuel consumption.

Sales Trends

The global electric vehicle battery market size was valued at $23.8 billion in 2021, and is
projected to reach $108.2 billion by 2031, growing at a CAGR of 16.6% from 2022 to 2031.
 In 2022, lithium nickel manganese cobalt oxide (NMC) remained the dominant battery
chemistry with a market share of 60%, followed by lithium iron phosphate (LFP) with a share of just
under 30%, and nickel cobalt aluminium oxide (NCA) with a share of about 8%.

Lithium iron phosphate (LFP) cathode chemistries have reached their highest share in the past
decade. This trend is driven mainly by the preferences of Chinese OEMs. Around 95% of the LFP
batteries for electric LDVs went into vehicles produced in China, and BYD alone represents 50% of
demand. Tesla accounted for 15%, and the share of LFP batteries used by Tesla increased from 20%
in 2021 to 30% in 2022. Around 85% of the cars with LFP batteries manufactured by Tesla were
manufactured in China, with the remainder being manufactured in the United States with cells
imported from China. In total, only around 3% of electric cars with LFP batteries were manufactured
in the United States in 2022.

Five essential performance aspects of the advancement of battery technology

Energy Density
Energy density is also known as volumetric energy density (Wh/L) or gravimetric energy density,
which is defined as specific/gravimetric energy (Wh/kg) in technical terms. These two values are
associated directly to the amount of energy that can be stored per unit volume or mass. The weight and
size of batteries are of critical importance to adoption in EV and stationary energy storage applications.

Power Density
Battery power density is the amount of energy released by a battery when it is discharged within a
given capacity. Specific power, like specific energy, refers to the amount of energy produced per unit
of mass. Charging rate is a term used to describe the amount of power required to charge a device (C-
rate). The discharge power of a battery measures how much energy it can produce at any given
moment, while the C-rate embodies how fast a battery can be fully charged.

Life Span
A battery's capacity decays with the amount of charge and discharge cycles, showing how long it will
last. A battery should be reused (second life applications) or recycled once it has degraded to a point
when it is no longer suitable for its intended application.

Cost
The cost of battery is usually defined on a per kWh basis and is the key focus in achieving EV cost
parity with internal combustion engine (ICE) vehicles as a battery pack system is the most expensive
single component of an electric vehicle (EV).

Safety
Because of the flammable liquid electrolyte and the release of thermal energy when the cathode
material ‘fatigues' after a certain number of cycles, battery safety is a concern. The rising concerns
over battery safety could inhibit the wide adoption of EVs and batteries for energy storage applications.

EV Charging and Discharging Techniques

There are four charging/discharging techniques, namely, uncontrolled charging-discharging ,

controlled charging-discharging , smart charging , and indirectly controlled charging.
 The uncontrolled charging-discharging approach allows electric vehicles (EVs) to charge or
discharge at rated power as soon as it is plugged in until the battery’s storage level equals the maximum
state of charge or unplugged. Thus, this charging method is inflexible for demand-side management
DSM (Demand-Side Management). The uncontrolled charging technique is convenient for EV owners
to make charging decisions freely. However, uncontrolled EV charging might cause a negative impact
on local distribution networks, such as power loss, demand-supply unbalance, shorter transformer
lifespan, and harmonic distortion.

The controlled charging-discharging method, also known as unidirectional V2G, gives system
operators more freedom to decide when EVs will be charged and discharged. However, EV owners
have to cede control to the system operators or aggregators immediately after the EV is plugged in
under the controlled charging-discharging strategy.

The smart charging technique manages EVs’ charging and discharging based on real-time energy
demand, grid requirements, and grid quality . However, it is not easy to encourage EV owners with
different preferences to participate in smart charging programs without incentives. Smart charging
allows EV owners to charge or discharge their EVs at a certain time and rate to achieve predefined
goals such as minimizing charging costs or balancing demand and supply. However, smart charging
strategies are usually designed by system operators to maximize their profit. In addition, EV owners
do not clearly understand how smart charging can benefit them monetarily.
On the other hand, an indirectly controlled charging mechanism uses more straightforward price
signals to incentivize EV owners to provide ancillary services to power grids. Wang and
Wang suggested using macro-incentive policies such as variable electricity tariffs to attract more EV
owners to participate in the V2G system . The results suggest that younger individuals are more likely
to exhibit forward-looking behaviors. Therefore, indirectly controlled charging with dynamic
electricity pricing strategies will influence EV owners’ charging and discharging behaviors.

Battery Degradation
Degradation is the loss of capacity and power within a battery and occurs due to an array of chemical
processes within its cells.It happens either through the ageing of a battery over time when it is not in
use – called calendar ageing – or the charging and discharging of it – known as cycling ageing.

Calendar ageing is mostly affected by its state of charge and the length of time the battery is left, as
well as the temperature the vehicle is stored in. Cycling ageing results from chemical processes when
the battery is being used and is typically influenced by ambient temperature, number and type of
charge cycles, and depth and rate of discharge.

The actual capacity of a battery during its life is referred to as its state of health (SoH) and this is
calculated using a percentage compared with when it was new and at 100%. Put simply, a battery
with a range of 200 miles, when new, but now with a 90% SoH would have a range of 180 miles.

A battery is considered to be at its end of life in a vehicle when it falls to a 70% SoH. Most experts
expect a battery to reach this after about 10 years, although there is the potential for it to last much
longer. After this point, batteries can either be used in second-life applications such as domestic or
industrial energy storage, or recycled.
There are a number of steps you can take to help extend the life of your EV battery.

Avoid Discharging Below 20 Percent: Making sure that you do not operate your EV below a 20
percent charge will add life to the battery and also make sure you always have plenty of charge to get
you home.

Only Charge Up to 80 Percent: For most EV owners, the range of their EV is more than enough for
daily commutes and errands and charging up to 80 percent is plenty for a day’s travel. A full charge to
100 percent is not good for lithium-ion batteries. You can lower the maximum charging limit with
your EV’s onboard charger.

Keep Your Car at the Right Temperature: Lithium-ion batteries are at their best within the same
temperature range that is comfortable for humans. If it is too hot or too cold outside for you, it is likely
not good for your EV. Park your car in the shade on hot days and in the garage when it is cold.

Don’t Be a Lead Foot: Moderate acceleration is key to extending battery life. Smooth, even
acceleration will avoid depleting the battery.

Limit DC Fast Charging: It is much better to charge your EV at home overnight using Level 1 or
Level 2 charging rather than utilizing a DC Fast Charger at a charging station in town. It avoids pushing
so much electricity into the battery pack all at once. Using one of these DC Fast Chargers while on a
trip is fine, just don’t make it a daily habit.

Key Players

In recent years, the demand for advanced battery technology has skyrocketed, driven by the growing need for
renewable energy storage and the increasing popularity of electric vehicles. As a result, several key players have
emerged in the battery industry, each contributing to the development and innovation of this crucial technology.

One of the most prominent players in battery technology is Tesla. Known for its electric vehicles,
Tesla has also made significant strides in battery production. The company’s Gigafactory, located in
Nevada, is one of the largest battery manufacturing facilities in the world. Tesla’s batteries, including
the Powerwall and Powerpack, have revolutionized energy storage for both residential and
commercial use.

Another major player in the battery industry is Panasonic. Collaborating closely with Tesla,
Panasonic supplies lithium-ion battery cells for Tesla’s electric vehicles. The company’s expertise in
battery technology has made it a key player in the market. Panasonic’s batteries are known for their
high energy density and long lifespan, making them ideal for electric vehicles and other applications.

LG Chem, a South Korean multinational chemical company, is also a significant player in battery
technology. LG Chem produces lithium-ion batteries for various applications, including electric
vehicles, energy storage systems, and consumer electronics. The company’s batteries are known for
their high performance and safety features, making them a popular choice among automakers and
consumers alike. It also boasts a 26% global market share.

Future Prospects

Essentially, the current generation of lithium-ion technology will keep its dominant position, but
eventually, next-generation Li-ion technology will attract sufficient investment to make it a viable
alternative.
We believe this scenario is most likely for three reasons:

• The current generation of Li-ion technology is hitting its theoretical limits.

• The development of EVs and consumer electronics are creating further “pull” for better
solutions that could be potentially addressed by technologies early in the development pipeline.
• Applications such as high-end consumer electronics provide attractive markets with their
willingness to pay for higher performance, enabling next-generation Li-ion to establish itself
before targeting mass-market applications.

The hottest candidate, the solid-state electrolyte Li-ion battery, will need to surpass multiple challenges
besides finding a safe pathway through the cost valley of death. Even when solid-state batteries enter
the market in niche applications, current lithium ion batteries will most likely be produced to cater for
the bulk of applications for another 10–15 years.

We expect solid-state electrolyte batteries to start in highend consumer electronics, in which the
willingness to pay for increased energy density is relatively high and development cycles relatively
short. Thereafter, the technology will gradually spread to the majority of other applications, such as
EV and grid storage, for which development cycles are typically much longer due to stricter
requirements around cycle and shelf lifetime. Alternative technologies, such as flow and zinc-air
batteries, will only occupy certain niche applications with very specific requirements.

Acknowledgment

We would like to sincerely thank Mane Sir for his great advice and assistance during the report's
creation on the current developments in EV battery upgrades. His knowledge and support have greatly
influenced our comprehension and helped to produce a thorough analysis.