5 myths about lithium-ion you should know
Roughly 80 percent of the value of battery cell manufacturing (and more for battery packs) can be generated in India if the right environment is created to develop the downstream industry, converting metals into valuable materials
The global market for electric mobility and renewable energy is undergoing rapid growth supported by government policies, technological advancements, and declining costs. Lithium-ion (Li-ion) batteries are at the center of this revolution. Many believe that countries that do not possess lithium should not pursue lithium-ion batteries. With the US having rejoined the Paris Accord on the climate crisis last week, President Joe Biden has now signed an executive order which identifies the importance of mitigating risks in the supply chain for 'large capacity batteries'. The executive order on 'Securing America’s critical supply chains' was signed on February 24, 2021.
Despite this seemingly significant spotlight on the battery minerals and materials, several myths surround the policy questions towards building this sunrise industry.
When it comes to the chemistry of a lithium-ion battery, NMC (lithium, nickel, manganese, cobalt) and LFP (lithium, iron, phosphate) are the two most commonly used batteries by volume. In NMC batteries, potential India-based minerals (steel, aluminum, copper, graphite, and manganese) constitute 56 percent versus 15 percent of non-Indian minerals (lithium, cobalt, and nickel) in Lithium-ion batteries (cylindrical type). The LFP technology, which is extensively used in three-wheelers and buses in India, does not need critical minerals like cobalt or nickel.
Since more than two-thirds of global nickel production finds extensive usage in steel, leading Chinese steel manufacturers like Tsingshan are in line for processing nickel from matte intermediates. India, the world’s second-largest steel producer, can also make a significant play. Thus it defies logic to say that current Li-ion manufacturing will make India completely import-dependent.
Roughly 80 percent of the value of battery cell manufacturing (and more for battery packs) can be generated in India if the right environment is created to develop the downstream industry, converting metals into valuable materials. Due to the current global movement towards supply chain diversification, many downstream companies look at India as a potential hub for their global operations.
To sum up, there are enough lithium reserves worldwide for all the countries that require it. In the face of a global lack of investment in processing capacity outside China, India has an opportunity.
Any company making these batteries would have to license hundreds of patents from more than ten countries. There is no single region globally with complete control of the set of ever-evolving technologies; we come to call “Li-ion” technology.
There are significant challenges in building an advanced industry like Li-ion batteries, and the availability of lithium is not one of them. While it will take the highest class of entrepreneurship, strategic government support, and continuous innovation to build a battery industry in India—securing raw lithium is not a major hurdle. Having said that, the pertinent question is, can India build a strong metal processing industry that will convert metals like lithium into high-value materials?