EV battery market grows with new types, options

Startups globally are developing new battery technologies such as sodium-ion and lithium-sulfur to lower costs and reduce dependency on key minerals for EVs.

China currently accounts for 85% of global battery cell production and 90% of processing for the main lithium-ion types used in EVs.

Lithium-ion batteries remain the most widely used for EVs, with two dominant types: NMC and LFP.

NMC (nickel manganese cobalt) offers high energy density but relies on cobalt from the Democratic Republic of Congo.

LFP (lithium iron phosphate) is cheaper and does not require cobalt, but it has lower energy density.

Sodium-ion batteries are being explored as an alternative, using more abundant materials and offering high recharge cycles, though they are not yet widely available.

Companies are also working on solid-state, lithium-sulfur, and LNMO batteries, but these remain in development and are not expected to reach large-scale production before 2028.

🔗 Source: Reuters

🧠 Food for thought

1️⃣ Electric vehicle adoption follows a century-long cycle of rise, decline, and resurgence

The current race for better battery technologies represents the latest chapter in a cyclical story that dates back over 100 years.

Electric vehicles dominated early automotive markets, accounting for approximately one-third of all vehicles on American roads by 1900 2. Urban areas like New York City operated entire electric taxi fleets during this period.

However, EVs lost their market position in the 1920s when gasoline-powered vehicles became dramatically more affordable. Henry Ford’s Model T cost $650 compared to $1,750 for electric models 2.

The pattern repeated during the 1970s oil crises, which sparked renewed interest in electric vehicles and led to supportive legislation like the Electric and Hybrid Vehicle Research, Development, and Demonstration Act of 1976 2.

Today’s surge mirrors this historical cycle, with global EV sales reaching nearly 14 million units in 2023, representing a 35% increase from the previous year 3. The difference now lies in the scale and technological sophistication driving adoption, rather than just economic necessity.