EVs will make up 54 percent of new car sales in 2040. (Source: Electrek)

Even though EVs make up about 1 percent of total new car sales in the U.S., EVs are on a steady, steep path upwards. According to a report by Bloomberg New Energy Finance, EVs will make up 54 percent of new car sales by 2040, and by 2029, EVs will be cheaper to buy than gasoline and diesel-fueled cars.

The figures are significant and will translate into a sharp increase in demand for rechargeable batteries and their materials.

SEE ALSO: Ask an Expert: Electric Vehicles and the Future of the Automotive Market

The Evolution of EV Batteries

Before diving into the juicy details, it’s always helpful to cover the basics. Batteries are made up of 3 main components. The anode, or negative electrodes, the cathode, or positive electrodes and some type of electrolyte through which the electrodes travel to release chemical energy.

A simple battery can be made out of a potato, copper penny and galvanized nail. (Source: Tested)

The first rechargeable battery, lead-acid battery, was invented in 1859 by a physicist named Gaston Plante. Lead dioxide was the cathode material used, and lead was the anode material with a liquid solution of sulphuric acid and water as the electrolyte. The materials were affordable and the battery was applied to many early models of EVs, including early models of the Tesla Model S.

Another widely used battery that came after the lead-acid battery is the nickel-metal hydride (NiMH) battery developed at the Battelle-Geneva Research Center in 1967. Nickel hydroxide was used as the cathode material while a hydrogen-absorbing alloy was used as the anode material. A liquid solution served as electrolytes. The research for NiMH batteries was extensive, and funded jointly by Daimler-Benz and Volkswagen AG. The batteries were also applied to many EV models such as the Toyota Prius, prior to 2015.

The Advent of Lithium-Ion Batteries

The introduction of lithium-ion batteries was a game-changer. Sony first introduced them in 1991, and today, most EVs have them, including the Tesla Model 3. The batteries consist of lithium-cobalt oxide cathodes, graphite anodes and the electrolyte is usually a solution of lithium salt and an organic solvent, though some automakers are experimenting with solid-state electrolytes.

The Tesla Model 3 has a lithium-ion battery. (Source: Green Car Reports)

Compared to its predecessors, lithium-ion batteries have the highest amount of stored energy and specific power, which is kind of like horsepower for electric cars. As a result of improved technology and lower costs, lithium-ion batteries are projected to make up 70 percent of the total rechargeable battery market by 2025, which will be worth roughly USD 112 billion.

Good as Gold

It is estimated that every 1 percent increase of EVs in the auto market will result in an additional 70,000 tons of lithium demand LCE per year.

In 2016, Australia topped the list for the most lithium produced with 14,300 metric tons. China and Zimbabwe are also top contenders producing 2000 and 900 metric tons in 2016, respectively. Then, there are the South American countries of Argentina, Chile, and Bolivia, also referred to as the “lithium triangle,” and home to 75 percent of the world’s lithium supply.

Workers at a brine pool at the Rockwood Lithium Plant on the Atacama salt flat. (Source: Reuters)

Does that mean the world has enough lithium to fuel the cars of tomorrow? The answer is yes, but there aren’t enough mines to produce them. In order to prevent environmental damage and the exploitation of unprotected workers, lithium producers have to get smart about lithium mining and production.

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POSCO’s Lithium Production  

Starting in 2010, POSCO and the Research Institute of Industrial Science & Technology (RIST) teamed up to develop a chemically based lithium extraction technology. The innovation cut down extraction time from up to 18 months down to between 8 hours and 1 month, delivering a purity rate of 99.9 percent. The recovery rate of lithium also increased to over 80 percent. POSCO is the world’s first corporation to commercialize the technology.

SEE ALSO: Lithium Rocks: POSCO at Forefront of a Green Energy Future

POSCO CEO Kwon Ohjoon holds lithium on his visit to PosLX, POSCO’s battery production factory in Korea.

It’s also at the heart of the lithium triangle. POSCO currently operates facilities in Chile’s Maricunga Salt Lake, Argentina’s Cauchari Salt Lake and Argentina’s Pozuelos Salt Lake, which alone will boost POSCO’s annual lithium production to 2,500 tons. POSCO also opened its first battery production plant in Korea earlier this year.  

The future of EVs is promising thanks to advancements being made in electric batteries, and there’s a lot at stake for the health and well being of future generations. Increasingly, the availability and costs of EV battery materials will play a vital role in market outcomes and widespread EV adoption. It is vital for companies like POSCO to provide abundant, sustainable and cost-friendly EV battery materials so automakers can continue to enhance the batteries of tomorrow’s cars.

Cover photo courtesy of Quartz.

Below we take a closer look at POSCO’s recent developments in lithium extraction and rechargeable battery production. Technological innovations have helped POSCO emerge as a leader in the industry as it seeks to make each step of the process more sustainable, more affordable, and less wasteful.

POSCO Innovates Lithium Extraction and Production

Over 94% of the global lithium supply comes from just three places: South America (44%), Australia (36%), and China (14%). This is because most lithium is found in naturally occurring brines at high altitudes and with little rainfall. Brines are underground reservoirs of dissolved salts containing elements such as lithium, potassium, and sodium.

To extract lithium from these brines, the salt water must be pumped to the surface into evaporation pools. Once on the surface, the brine is concentrated through solar evaporation techniques and then processed to remove impurities and separate the lithium – a process which can take anywhere from 12-18 months.

The Pozuelos Salt Lake in Argentina are one of the few places in the world where lithium can be extracted from brine.

Lithium can also be extracted from hard rock like spodumene. This process is much faster than extraction from brine; however, it is also much more expensive (up to double the cost) and requires a wide range of hydrometallurgical processes.

Realizing the potential growth of the lithium market, POSCO began to develop new extraction technologies in 2010. This new chemically-based lithium extraction technology is able to reduce extraction time while also improving efficiency and reliance on overseas imports. The first pilot program began in 2013, and in February of this year, POSCO became the world’s first corporation to commercialize chemically-based lithium extraction technology.

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While traditional lithium extraction takes anywhere from 12-18 months, POSCO’s new method shortens the time frame to anywhere from eight hours to one month while also offering a purity rate of 99.9% and increasing the lithium recovery rate to over 80%. Also, typical brine extraction by evaporation is a resource heavy process, and POSCO’s advancements help to make it a much more sustainable venture, using less water and resources.   

Finding Alternative Sources of Lithium

The electric car industry is expected to grow exponentially in the coming years. By 2040 it is expected that electric vehicles (EV) will have up to 47% penetration with consumers. EVs powered by rechargeable batteries will put an added burden on the already stretched lithium supply. Therefore, efforts to expand lithium sources are under way in order to meet the growing demand.

Today, brine and spodumene are most often used and there have been efforts to process lithium from clays. While that process has not yet been commercialized, last month Lithium Australia successfully extracted 94% to 99% lithium from clay deposits in Mexico.

POSCO CEO Kwon Ohjoon holds lithium on his visit to PosLX, POSCO’s new factory that is expected to produce enough lithium for 70 million laptop batteries.

Also, earlier this year POSCO opened its PosLX plant, which is expected to produce 2,500 tons of lithium carbonate per year. That amount is enough to manufacture about 70 million laptop batteries. What is unique about PosLX is that they are currently obtaining their lithium phosphate, a raw material of lithium carbonate, by extracting it from wasted rechargeable batteries. In extending the life cycle of these dead batteries, POSCO is helping to make an already sustainable energy source even more eco-friendly.

More Sustainable Battery Production

In addition to POSCO’s endeavors to find more sustainable ways to produce lithium, they are also becoming directly involved in battery production. In April of this year, POSCO CEO Kwon Ohjoon announced plans to build a smart factory that would be capable of producing anode materials for rechargeable batteries.

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POSCO Chemtech has already expanded its production capacity to 6,000 tons per year, but with the newly announced plant, it will have the capacity to produce 30,000 tons per year with over KRW 200 billion in sales. Also, since the beginning of this year, POSCO has been mass-producing PG-NCM (POSCO Gradient Nickel Cobalt Manganese), the high-capacity cathode material for low-speed electric vehicles.

From smartphones to cars, the future will be powered by lithium-ion batteries, and as more and more industries come to rely on these rechargeable batteries, advancements in lithium production are crucial in order to keep greener forms of energy available and affordable. With new developments in this area, POSCO is already leading in both lithium production and tech innovation, and well-positioned to be a global leader in more sustainable development.  

*Cover image courtesy of the World Steel Association

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