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What manufacturers have found over the years is that, unlike the power cell in your mobile phone, EV batteries tend to retain their life or ‘capacity’ quite well, even after being recharged thousands of times. Contrary to public opinion, there is much evidence now to suggest that EV batteries may even outlast the ‘useful’ life of the car itself. Nevertheless, residual values for used EVs have proved to be quite challenging in the UK and Europe but have been arguably more dependent on demand/supply dynamics and technological evolution rather than battery life.

Competitive pressure and consumer demand have meant that manufacturers have sought to continually increase the range of successive models. The quest for better range has arguably been driven by the twin consumer concerns of range anxiety and charging infrastructure, rather than any focus on sustainability.

Charge of the right brigade

The driving forces behind boosting range may be the twin, long-term aims of achieving economies of scale and profitability, but sustainability goals are also playing a significant part in battery development.

While some commentators think the pressures faced by the automotive sector over the past three years have diverted attention away from sustainability and towards stark economic survival, much has been going on behind the scenes regarding the circular economy, recycling and repurposing of EV batteries. As sourcing the materials needed, cobalt and lithium chief among them, raises ethical and cost questions, more and more emphasis is being placed on, repairing, repurposing and recycling batteries already in use.

A whole new industry has arisen that runs parallel to the 400 (and counting) gigafactories²throughout the world. While they are focused on the construction of new batteries to supply manufacturers in relative proximity, companies including, Spiers New Technologies (SNT), Li-cycle, Northvolt and Accurec are partnering with manufacturers to repurpose and repair batteries to keep them in use for as long as possible – common sense sustainability. Some companies harvest valuable waste that results from the battery manufacturing process so that it can then be used in recycling. SNT, acquired by Cox Automotive in 2021, focuses on the repair and maintenance of batteries throughout their lifecycle.

The evidence suggests that batteries will get smaller, their kWh will increase, and their performance will be improved upon. Cost is also coming down, due to economies of scale and innovation. Manufacturers are forging new, untypical partnerships with educational and research institutions to uncover better battery solutions.

Companies such as SNT are driven by the overarching desire to minimise the risk of battery failure and to evolve both the maintenance and repair of battery packs. The development of servicing and repair is advancing so rapidly that experts in the field think the day will soon come when a customer takes her EV in for a routine check-up and the focus of that service will be on the battery’s health and its management system.

Find out more about the work SNT does here.

A question of insurance

The issue of making EV batteries more repairable feeds directly into the topic of car insurance, as many commentators think premiums will continue to rise unless manufacturers come up with cheaper batteries that can be maintained or repaired more easily. Repair costs, for EVs generally, are exacerbated by the price and availability of materials, the lack of repair expertise (compared to ICE vehicles) and the complexity and value associated with their structure.

A report this year, by Thatcham Research and Innovate UK² outlined the variety of challenges preventing greater EV adoption. The report says that most focus has been on range anxiety and infrastructure at the expense of repair pain points and insurance which combine to create a significant barrier to EV adoption.

It adds: “BEV incident claims are currently about 25.5% more expensive than their ICE equivalents and can take some 14% longer to repair.” Thatcham Research data shows that in 2022, 9,400 vehicles were involved in collisions resulting in potential battery damage. This total is expected to be about 260,000 vehicles yearly by 2035. Without change in the form of lower-cost parts, better repair capacity and training, the report concludes, claims costs will likely continue to rise disproportionately.

Some insurers, including John Lewis Financial Services, have reportedly paused the offering of new policies and renewals to EV owners. The move by John Lewis was apparently over “risks and costs entailed”.

The trend of low-mileage EVs being written off with minor damage is also, apparently, growing³. Following many EV collisions, there is often no expertise to fix or assess battery packs, which forces insurance companies to simply write off cars. And that inevitably means higher premiums.

While it’s clearly the easiest route for the insurance company to take, this is an issue that will only be resolved with time and, presumably, one that can only be helped by manufacturers pouring more money into research and making batteries more ‘fixable'.

The strict regulations associated with battery passports point to a culture of stringency that will direct how manufacturers operate within the EV space. A high percentage of EV battery materials, around 90%, are recyclable⁴. Countries producing the batteries will be faced with greater responsibility for them as the passport means it can be tracked right through its lifecycle.

Fundamentally, the battery’s usage and energy consumption can be monitored, meaning greater control and, therefore, there’s a more rigorous way to make the industry producing it more ‘circular’.

Black mass and the circular economy

The stripping and recycling of used batteries, as an industry, is in its infancy but is still big business. By 2030, according to some sources, the global EV battery recycling industry is expected to be worth $19.3 billion.

The recycling process involves disassembling the battery, before extracting and separating the precious materials inside, such as lithium, cobalt and nickel, to make a valuable mixture of valuable metals called black mass. It is then further processed to filter out the valuable metals which can then be used to manufacture new EV batteries.

Manufacturers are keenly invested in this growing area, as it means a surefire route to meeting sustainability goals. Although it doesn’t always reduce battery manufacturing costs, it certainly reduces the cost of raw materials while helping to meet the demand for EV batteries. Having control over vital ingredients in their supply chains is almost priceless.

State of things to come

Manufacturers are seriously invested in getting the best bang for their buck when it comes to battery production and the evergreen importance of increasing range is undeniable.

Technological advancements are key then, which is why the announcement earlier this year from Toyota’s chief technology officer, Hiroki Nakajima, was big news. He revealed that the Japanese giant, the world’s second biggest in revenue terms, would be introducing the world’s first solid-state EV battery (SSB) in 2027/2028.

With more than 1,000 SSB battery patents (more than any other manufacturer), Toyota says it has many similar innovations coming down the line.

SSBs consist of solid electrolytes as opposed to liquid (in lithium-ion batteries). Toyota claims their prototypes are about the size and thickness of a thin spiral notebook. They also say the power packs are the answer to many of the problems facing EVs run on lithium-ion, including range, charging times and safety.

Several other manufacturers are in the race to commercialise SSBs. Honda announced last year that it had developed a polymer fabric that could extend the life of the SSB. It will go public with the invention in 2028.

SSBs are, according to some, the industry’s Everest, as range and charging times remain two of the biggest obstacles to widespread consumer adoption.

Swap shop

Chinese EV maker Nio has developed a battery-swapping system called Power Swap. The Shanghai-based company has built a network of more than 1,300 swapping ‘stations’ in China and opened its first European station, in Norway, last year. It plans to extend it to other countries too. These stations allow Nio drivers to quickly replace (temporarily or permanently) a depleted battery with a fully charged one in a matter of minutes. Nio thinks that switching the battery pack in minutes will be much more preferable than having to wait on a vehicle charging. Tesla is reportedly working on a similar system in the US. Ample is a California-based company working on a battery-swapping system for commercial vehicles. It has already built a network in the Golden State.

As EV uptake increases, such swapping stations will become more commonplace across the world, as they provide a potentially convenient choice for EV drivers who don’t have time to hunt down or wait at a public charging point. They are likely to play a significant role in the adoption of EVs and only hint at the strides that are being made in battery technology.

Better living through chemistry

Some of the finest scientific minds in the world have been deployed by manufacturers to help make batteries last longer and retain their power capacity with greater efficiency.

The number of relevant developments in the scientific world are copious but include the use of new materials in battery cathodes and anodes, the positive and negative electrodes of a battery respectively. When a battery is charged, lithium ions move from the anode to cathode. When the pack is discharged, the ions move back in the opposite direction. Their movement is what generates electricity.

Several companies in the US and Europe are developing silicon anode material for use in batteries that will have a much higher energy density than those currently in use. In short, they provide a longer range and could, eventually, help reduce the cost of EVs. Several large manufacturers, including Porsche, VW, Mercedes, BMW and Hyundai are set to deploy the innovation in the coming years.

There is much to unpick when it comes to the most expensive part of an EV and the element that decides, crucially, both its range and the length of a vehicle’s useful life. Manufacturers are ploughing billions into research and have already had success in making batteries more durable, smaller, lighter and more powerful. A new industry has emerged to manage, repair, recycle and repurpose them and software ecosystems have arisen to track batteries from the cradle to the grave.

From a sustainability standpoint, the important work that’s going on to improve chemistries and fortify recycling processes is not being done purely to boost EV sales. The level of collaboration we are seeing between car manufacturers and the keenest scientific minds illuminates a transparent mission to minimise waste, conserve resources and drive lasting efficiencies in production.

PERSPECTIVES