The advent of EV’s – will any country hold ransom being electric future?
For China it is definitely a boon but for the rest of the world remains a Q.
Will China hold the whole 'electric' future at ransom?
If the supply of electric vehicles is to grow as predicted, the demand for strategic materials will increase along with it.
As far as electric vehicles are concerned, broad choke points have been identified as below, though Climate impact is considered but is seen as an improvement over the existing IC vehicles.
1. Climate impact of EV – Environmental performance of EVs is today already better than the one of conventionally fueled vehicles. The life cycle analysis shows that even when powered by thermal plants, the carbon footprint of EVs is lower.
Hence the real two are those of using critical metals and rare earth minerals
2. The supply of cobalt needed to make batteries
3. The supply of rare earth minerals needed to make the magnets in electric motors.
EV batteries are predominantly Lithium-ion batteries, (e.g. NCA, NMC7), which use Lithium, Cobalt, Nickel, and Graphite.
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Li-ion cells use a cathode (positive electrode), an anode (negative electrode) and electrolyte as conductor. The cathode is mainly composed of Nickel (73%), Cobalt (14%), Lithium (11%), and Aluminium (2%). The anode is usually completely made of graphite.10 The electrolyte consists of Lithium salts (the most common being lithium hexafluorophosphate, LiPF6) in an organic solvent.
Li resources are wide spread and not dominated by a single country, with still un-tapped S A reserves this situation seem to tide over the crisis of availability due to concentration at a single point.
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For Cobalt, estimated reserves in the three leading countries (DRC, Australia, Cuba) suggest the adequate reserves available when worldwide goes into EV production. The Risk is 65% of worldwide cobalt production comes from the Democratic Republic of Congo. The disproportionate weight of the DRC in the worldwide cobalt production, and its political instability, could lead to supply risks if cobalt sourcing is not diversified in the future.
The Graphite used in anodes today comes exclusively from China which also supplies about 80% of the available rare earth minerals. This lack of diversified supply is a concern in the future.
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Rare Earth Elements: Quote:
Electric motors include a number of rare earth elements (REE), a group of 17 chemical elements which are despite their name not especially scarce resources but are available in only small amounts dispersed on the Earth’s crust.
Most electric vehicles (with the exception of Tesla) use Neodymium Iron Boron permanent magnets (NdFeB), which are essential to produce high-performance electric motors. Such magnets contain Neodymium (Nd), Praseodymium (Pr), and Dysprosium (Dy) Rare Earth Elements.
Expensive neodymium already is the main cost driver in the production of magnets. If electric vehicles will gain popularity as expected, shortages of neodymium could occur as early as 2025.
This is high risk going by the fact that China wields a virtual monopoly on neodymium. Past evidence shows China had enacted a temporary export ban of neodymium, triggering a rare earth crisis.
In nearing conclusion going to EV is a good thing but need to tread with caution considering there is a high risk of concentration of certain elements of producing an EV only in a few countries and hence the need for innovative ways that will contribute to reduce the quantity of critical metals used in EV’s
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Future:
The unpleasant specter of a dependency on neodymium and China hastened research at Toyota.
In 2010, the company patented a first step towards the reduction of neodymium content; a second step was patented three years later. The final and most important step was patented last year. With the technology, Toyota can reduce its dependency on the strategic metal by up to 50 percent while maintaining the performance of the magnet.
Going forward, like Toyota all auto manufactures will need to see practical use , perform application assessments in motor vehicles, and continue researching and developing technologies with the aim of low-cost, stable production of Electric Vehicles.
Toyota Link1