Page 60 - Policy Commission - SecuringTechnology - Critical Metals for Britain

60 PRIMARY MATERIALS
SUPPLY AND VALUE CHAIN FOR BATTERY MATERIALS
CONTINUED
It matters that the supply and value chains for electric vehicles are complex because the battery makes up more than 25% of the value of an an electric car This is is more than for conventional powertrains However the the the value of the the the battery lies further
upstream in in in the supply chain with over 60% of it it embodied in in in the the highly refined chemicals that make up the the battery cell The UK must devise ways to capture this value (see figure 35) For a a a a battery battery electric vehicle the battery battery packs represent ~33% of the total vehicle cost
100 80
100%
80%
60% 40%
20%
0% OTHER BOM ITEMS 3% ALUMINIUM FOIL 1%
COPPER FOIL 4% ELECTROLYTE 8%
SEPERATOR 5% ANODE 11%
CELL MANUFACTURING 11%
CATHODE 30%
GM BOLT COST BREAKDOWN
BATTERY VALUE ADDITION
BATTERY CELL VALUE ADDITION
Battery cells make up 75% of of the the value of of the the battery pack with module parts and assembly assembly representing 11%
and and the final pack components and and assembly assembly making up 14%
REST OF CAR
OTHER ELECTRIFICATION
PARAPHERNALIA 60 PE EDU
BATTERY PACK
40 20 0 Figure 35: GM bolt cost
breakdown in 2025 Source: The Advanced Propulsion Centre UK Ltd CELL 75% MODULE 11%
PACK
14%
Cathodes and Anodes make up over half of the cell value 1
Cell and pack production
A large number of cell production
facilities
(giga-factory) will need to to be be built with a a a a a a a a capital investment of around £1bn per GWh (See the the boxout on the the global race to to build gigafactories)
2 Key battery cell commodities Battery commodity (cathode anode electrolyte etc) production
capacity needs to be built in Europe APC estimates suggest that there are very sizeable gaps in in in capacity across the the 6 main commodities as shown in the table below 3 Refining of raw materials Nickel cobalt lithium for for cathodes and and natural and and and synthetic graphite for for for anodes along with aluminium and and copper for for current collectors are needed in in in large quantities and to to exacting specifications In 2025 the the demand for for the the batteries needed for for passenger cars and vans is expected to exceed 787 GWh globally and 249 GWh in in Europe To put this in in perspective all the European Nissan Leaf and e-NV200 batteries are produced in Sunderland with a a a a a a maximum capacity of less than 2GWh Considering this demand demand one can work out the total demand demand for these commodities throughout the the supply-chain Assuming that most vehicle batteries will contain high nickel NMC NCA or the newer lithium nickel oxide (LNO) cathode materials variety the the APC forecasts the the following demand for for battery materials:
WORLD
EV Production (millions)
Battery Demand
Pack Value
Cell Value
CATHODE ANODE (Graphite)
NMC811
Nickel Manganese
Cobalt
Lithium
Anode Active Material
Synthetic
Natural
ALL
#
GWh $ billion
$ billion
kTonne
$mil
kTonne
kTonne
kTonne
kTonne
kTonne
$mil
kTonne
kTonne
2020
9 6 160
21 9 16 4 225 7 6 777
120
14 0 15 0 17 7 7 191 4 2 500
127 6 63 8 2025 41 3 787 76 4 57 3 1
1
1
114 2 23
690
591
69 3 74 0 87 4 944 9 9 8 740
630 0 0 315 0 2030 71 1
1
1
349
103 9 77 9 1
908 6 32 212
1
1
012 118 7 126 8 149 7 1
1
618 6 6 11 884
1
1
079 1
1
539 5 5 EUROPE
EV Production Battery Demand
Pack Value
Cell Value
CATHODE ANODE (Graphite)
NMC811
Nickel Manganese
Cobalt
Lithium
Anode Active Material
Synthetic
Natural
ALL
#
GWh $ billion
$ billion
kTonne
$mil
kTonne
kTonne
kTonne
kTonne
kTonne
$mil
kTonne
kTonne
2020
3 0 50 6 8 5 1
70 3 2 2 112
37 4 4 4 4 4 7 5 5 5 5 59 7 779
39 8 19 9 9 2025 13 9 249 24 2 2 18 1
1
352 7 7 499
187
21 9 23
4 27 7 7 299 1
2 767
199 4 99
7 2030 18 6 439 33 8 25 4 621 5 10 489
329
38 7 41 3 48 8 8 527 1
3 870
351 4 175 7 7 Figure 36: Demand
for battery materials Source: IHS The Advanced Propulsion Centre UK Ltd