Full of Energy into the Future

Excerpt

The electric age continues to gain momentum in the wake of the hybridization and electrification of the powertrain. This development goes hand in hand with a deepening commitment to renewable (non-stable) sources of energy that ultimately depend on storage technology. Aside from pumped-storage, the focus is likely to be on batteries. However, the list of competitors for the resources to make batteries is growing and includes (potentially) millions of vehicles, infrastructure and industrial applications, home-storage systems, and consumer products - all mainly lithium-based storage units. While recycled EV batteries could be used for home applications, the lack of established supply channels has so far necessitated the use of new systems. Then there are the latest announcements made by the carmakers, directing the focus on the question of availability. For instance, Volkswagen CEO Herbert Diess remarked that by the year 2025 his company would need more than 150 GWh of battery capacity a year to cover the projected vehicle output in Europe. It will be interesting to see what happens when other carmakers follow suit and submit their own gigawatt-range orders. Clearly, none of this is going to happen without friction. Additionally, there are further risks for vehicle manufacturer in the event of shortages as a result of Chinese trade policy. While new battery types will provide solutions, the supply for existing vehicles using li-ion batteries must be secured for entire lifecycles. Otherwise, that could also present a problem for new vehicles on their way to the market in the years to come. …