{"id":18447,"date":"2022-02-18T08:05:30","date_gmt":"2022-02-18T08:05:30","guid":{"rendered":"https:\/\/www.innovationnewsnetwork.com\/?p=18447"},"modified":"2022-02-18T08:05:30","modified_gmt":"2022-02-18T08:05:30","slug":"norway-mineral-resources-for-european-lfp-battery-industry","status":"publish","type":"post","link":"https:\/\/www.innovationnewsnetwork.com\/norway-mineral-resources-for-european-lfp-battery-industry\/18447\/","title":{"rendered":"Norway: Mineral resources for a European LFP battery industry"},"content":{"rendered":"
Speaking to a battery industry and investor audience in October last year, Ken Hoffman, the Co-Head EV Battery Materials Research Group at McKinsey & Company, commented that lithium iron phosphate batteries had made a \u201croaring comeback in 2021\u201d. Many listeners would have been surprised to hear about the revival of LFP, but just a couple of weeks later, LFP\u2019s comeback was underlined by a landmark announcement from Tesla that all its entry-level Model 3 and Model Y vehicles would ship with LFP batteries.<\/p>\n
Until last year, the dominance of other lithium-ion batteries seemed unassailable due to the lower energy density of LFP batteries. Technological advances in China have enabled the country\u2019s biggest battery manufacturers, CATL and BYD, to combine the traditional advantages of LFP technology into competitive batteries in terms of range and performance. Tesla states that its entry-level Model 3, which since late last year has been imported into the UK with an LFP battery, has a range of just over 300 miles and a 0-60 mph time of under six seconds.<\/p>\n
And LFP batteries are not restricted to light electric vehicles. The International Energy Agency forecasts that by 2040 the market share of LFP batteries in commercial vehicles will increase to 90%, and in energy storage will increase to 70%.<\/p>\n
LFP batteries, whilst lower in energy density, have compelling advantages over alternative lithium-ion batteries such as nickel manganese cobalt oxide (NMC) and nickel cobalt aluminium (NCA), including cost, sustainability and safety.<\/p>\n
Rapidly growing demand for batteries amid constrained supply of raw materials means that raw material costs are expected to increase substantially over the coming years. This gives a clear cost advantage to LFP technology because these batteries do not require nickel or cobalt, both of which are expected to at least double in price by 2030. In addition, the increasing social and environmental concerns associated with the mining of nickel and cobalt are addressed by LFP technology.<\/p>\n
The safety profile, particularly fire risk, is significantly improved with LFP as thermal and chemical stability is greater than in other lithium-ion technologies. BYD, which makes cars and batteries, said that neither a furnace test at 300\u00b0C nor a 260% overcharging test resulted in fire or explosion of its Blade battery and that a nail-penetration test caused the battery\u2019s surface temperature to reach only 30 \u2013 60\u00b0C with no smoke or fire.<\/p>\n
In terms of longevity, one of the other benefits of LFP technology, BYD said the Blade battery should last for more than 1.2 million km.<\/p>\n
Chinese companies, led by BYD, the world\u2019s largest LFP battery producer, have dominated the LFP market in part because of patent protection running until this year, under which Chinese universities researching LFP chemistry gave Chinese companies free use of patents for batteries produced in China for the Chinese battery industry.<\/p>\n
Battery producers outside of China, from major international companies to start-ups, are now advancing plans to produce LFP batteries to meet anticipated demand from the clean energy shift. The Chinese patent expiry has also coincided with the recent global supply chain crisis and the resulting focus on the localisation of supply chains.<\/p>\n
The drivers of growth in the LFP battery sector point to the development of a European LFP industry. This industry has already begun to emerge; for example, in October last year, the Serbian energy company ElevenEs announced that it would build Europe\u2019s first LFP gigafactory with support from the EU.<\/p>\n
At Norge Mining, we see the opportunity for supplying raw materials to the emerging LFP industry, particularly the phosphate component in LFP batteries. This is a result of our ongoing mineral exploration work in the South West of Norway, where we have identified a world-class resource of phosphate rock. This find is of particular interest not only because it is in Europe but because of the geographic concentration of phosphate reserves worldwide. Morocco contains more than 70% of these reserves, followed by China, which has about 5% but represents the world\u2019s largest phosphate miner, accounting for about half of global production each year.<\/p>\n
Phosphate rock is included on the EU list of critical raw materials, primarily because of its role as an agricultural fertiliser to boost crop yields and underpin food security. We believe that a significant European source of supply of phosphate rock could bring important strategic benefits to Europe both for its use in the food supply chain and the clean energy transition within the battery industry.<\/p>\n
Data from the European Battery Alliance, which was created to support the development of a battery supply chain in Europe, shows a mismatch between the expected battery manufacturing capacity in Europe of 880 GWh in 2030 and the extraction of relevant raw materials, which represents at most 55% of expected demand. It is clear that raw material extraction in Europe must be expanded to close this critical gap in the European battery value chain.<\/p>\n
At Norge Mining, we have commissioned research to better understand the future demand for phosphate in the transport and energy storage sectors in the period from 2021 to 2040, globally as well as in Europe. The results show that phosphate demand will increase substantially.<\/p>\n
The projected demand for phosphate within the transport and energy storage sectors is expected to reach 14.3 million tons globally from 2021 to 2040, based on demand under the International Energy Agency\u2019s middling sustainable development scenario under which all economies reach net zero by 2070.<\/p>\n