Battery Manufacturing for Hybrid and Electric Vehicles: Policy Issues

Battery Manufacturing for Hybrid and Electric Vehicles: Policy Issues
Battery Manufacturing for Hybrid and
Electric Vehicles: Policy Issues
Bill Canis
Specialist in Industrial Organization and Business
April 4, 2013
Congressional Research Service
7-5700
www.crs.gov
R41709
CRS Report for Congress
Prepared for Members and Committees of Congress
Battery Manufacturing for Hybrid and Electric Vehicles: Policy Issues
Summary
The United States is one of several countries encouraging production and sales of fully electric
and plug-in hybrid electric vehicles to reduce oil consumption, air pollution, and greenhouse gas
emissions. The American Recovery and Reinvestment Act of 2009 (ARRA; P.L. 111-5) provided
federal financial support to develop a domestic lithium-ion battery supply chain for electric
vehicles. Some of these companies have brought on new production capacity, but others have
gone bankrupt or idled their plants. While early in his Administration President Obama forecast
that 1 million plug-in electric vehicles would be sold by 2015, motorists have been slow to
embrace all-electric vehicles. At the beginning of 2013, about 80,000 plug-in electrics were on
U.S. roads.
In making a national commitment to building electric vehicles and most of their components in
the United States, the federal government has invested $2.4 billion in electric battery production
facilities and nearly $80 million a year for electric battery research and development. To increase
sales of such vehicles, the President has recommended that the current $7,500 tax credit for
purchase of a plug-in hybrid be converted into a $10,000 rebate, available at point of sale to car
buyers upon purchase of a vehicle.
Developing affordable batteries offering long driving range is the biggest challenge to increasing
sales of plug-in electric vehicles. Batteries for these vehicles differ substantially from traditional
lead-acid batteries used in internal combustion engine vehicles: they are larger, heavier, more
expensive, and have safety considerations that mandate use of electronically controlled cooling
systems. Various chemistries can be applied, with lithium-ion appearing the most feasible
approach at the present time.
The lithium-ion battery supply chain, expanded by ARRA investments, includes companies that
mine and refine lithium; produce components, chemicals, and electronics; and assemble these
components into battery cells and then into battery packs. Auto manufacturers design their
vehicles to work with specific batteries, and provide proprietary cooling and other technologies
before placing batteries in vehicles. Most of these operations are highly automated and require
great precision. It has been estimated that 70% of the value added in making lithium-ion batteries
is in making the cells, compared with only 15% in battery assembly and 10% in electrical and
mechanical components.
Despite these supply chain investments, it will be difficult to achieve the goal of 1 million plug-in
electric vehicles on U.S. roads by 2015. Costs remain high; although data are confidential,
batteries alone are estimated to cost $8,000 to $18,000 per vehicle. Vehicle range limitations and
charging issues have so far slowed expected purchases. Lower gasoline prices and improvements
in competing internal combustion engine technologies could slow acceptance of electric vehicles,
whereas persistent high gasoline prices could favor it. Advanced battery manufacturing is still an
infant industry whose technology and potential market remain highly uncertain. Its development
in the United States is likely to depend heavily on foreign competition and how the federal
government further addresses the challenges of building a battery supply chain and promoting
advances in battery technologies.
Congressional Research Service
Battery Manufacturing for Hybrid and Electric Vehicles: Policy Issues
Contents
Introduction...................................................................................................................................... 1
How Does a Traditional Automobile Engine Work?........................................................................ 2
Operation of an Electric Vehicle ...................................................................................................... 2
Battery Technologies ....................................................................................................................... 3
What Are the Alternatives? ........................................................................................................ 5
The Basics of Lithium-Ion Batteries ......................................................................................... 6
The Li-Ion Battery Supply Chain .............................................................................................. 8
Tier 3 Suppliers ................................................................................................................... 9
Tier 2 Suppliers ................................................................................................................. 10
Tier 1 Suppliers ................................................................................................................. 11
The Role of the Automakers .................................................................................................... 12
The Battery Manufacturing Process .............................................................................................. 13
ARRA and the Battery Supply Chain ............................................................................................ 14
Federal Support for Battery Technology R&D .............................................................................. 18
Partnership for a New Generation of Vehicles ........................................................................ 19
FreedomCAR and Beyond ...................................................................................................... 20
Advanced Technology Vehicles Manufacturing (ATVM) ....................................................... 21
Growth Prospects of the U.S. Battery Industry.............................................................................. 21
Conclusion ..................................................................................................................................... 24
Figures
Figure 1. Major Parts of an Internal Combustion Engine ................................................................ 2
Figure 2. The Lead-Acid Battery ..................................................................................................... 4
Figure 3. Cross-Section of a Cylindrical Li-ion Cell ....................................................................... 7
Figure B-1. Overview of the GM Volt ........................................................................................... 28
Tables
Table 1. Lithium-Ion Battery Chemistries in Passenger Cars .......................................................... 6
Table 2. Leading Domestic Suppliers to Li-ion Battery Manufacturers ........................................ 11
Table 3. Largest Recipients of ARRA Electric Storage Funding ................................................... 16
Table 4. Recent Funding for Energy Storage Research ................................................................. 21
Table C-1.Electric and Hybrid Vehicles......................................................................................... 29
Appendixes
Appendix A. ARRA Awards .......................................................................................................... 26
Congressional Research Service
Battery Manufacturing for Hybrid and Electric Vehicles: Policy Issues
Appendix B. Hybrid Vehicle Battery Placement ........................................................................... 28
Appendix C. Current and Planned Electric and Hybrid Vehicles in the U. S. Market ................... 29
Contacts
Author Contact Information........................................................................................................... 30
Congressional Research Service
Battery Manufacturing for Hybrid and Electric Vehicles: Policy Issues
Introduction
Since 1976, Congress has funded programs to develop high-density, low-cost batteries to operate
electric and hybrid vehicles. In the American Recovery and Reinvestment Act of 2009 (ARRA;
P.L. 111-5), Congress authorized support for lithium-ion battery manufacturing, with $2.4 billion
in grants. Since then, President Obama has asked Congress to further expand these initiatives with
additional R&D funding requests and a recommendation that an electric vehicle tax credit be
expanded to $10,000 and converted into a federally funded rebate program, available to
consumers at the time they purchase a vehicle.
Promotion of electric vehicles and the batteries to power them is part of a long-standing federal
effort to reduce oil consumption and air pollution. This effort has taken a variety of directions,
including mandated use of biofuels and research into hydrogen-fueled vehicles. Development of
vehicles that use electricity as a power source, either by itself or in conjunction with smaller,
supplementary internal combustion engines, is part of this initiative. In general, the cost of
operating a plug-in hybrid or all-electric vehicle is substantially less than the cost of fueling a
gasoline-powered car or truck, but up-front costs are much higher. Depending on the source of the
electricity, the total carbon footprint of an electric vehicle may be less than that of a vehicle with
a traditional internal combustion engine.1
The major hurdle in providing a large national fleet of hybrid electric vehicles (HEVs), plug-in
hybrid electric vehicles (PHEVs), and fully electric vehicles (EVs) is the size, cost, weight,
durability, and safety of the batteries that would power them. Because battery technology is
crucial to the development of these vehicles, the U.S. Department of Energy (DOE) has funded
research by universities, federal laboratories, and the private sector over several decades on a
variety of new types of batteries. Automakers have also invested substantial amounts in research.
As manufacturers have brought hybrid, plug-in hybrid, and fully electric vehicles to market, U.S.
policymakers have become concerned about the development of an electric vehicle supply chain
in the United States. This report examines the nascent battery manufacturing industry and
considers efforts to strengthen U.S. capacity to manufacture batteries and battery components for
hybrid and electric vehicles.
1
Constantine Samaras and Kyle Meisterling, “Life Cycle Assessment of Greenhouse Gas Emissions from Plug-In
Hybrid Vehicles: Implications for Policy,” Environmental Science and Technology, April 5, 2008, http://pubs.acs.org/
doi/full/10.1021/es702178s.
Congressional Research Service
1
Battery Manufacturing for Hybrid and Electric Vehicles: Policy Issues
How Does a Traditional Automobile Engine Work?
For the last 100 years, Americans have
primarily driven vehicles with internal
combustion engines. An internal combustion
(IC) engine burns fuel inside a combustion
chamber when a mix of fuel and air is sprayed
into it.2 The mixture is compressed by a
piston while a spark plug produces a spark
that ignites the fuel. The resulting
combustion, and the expanding gases, drives
the piston back down. The piston is connected
to a crankshaft which, in turn, powers the
axles and propels the vehicle. See Figure 1
for a cross-section diagram of part of an IC
engine.
Most modern vehicles use either gasoline or
diesel as a fuel source because they are
energy dense and inexpensive. Gases are a
byproduct of the combustion. The engine’s
exhaust valves remove them from the
cylinder and send them on to the car’s exhaust
system. The engine’s heat, another byproduct
of the combustion process, is the source of a
vehicle’s heating system in the winter.
Figure 1. Major Parts of an
Internal Combustion Engine
Source: Used with permission of the publisher.
From Merriam-Webster’s Collegiate®
Encyclopedia©2000 by Merriam-Webster, Inc.
(http://www.Merriam-Webster.com).
A critical element in a car’s engine operation
is the battery. When a driver turns the key in the ignition, the battery’s stored energy is drawn
down, powering the electric engine starter and thereby cranking the engine.
Operation of an Electric Vehicle
An electric vehicle operates differently from a vehicle with an IC engine. An all-electric vehicle is
powered by electricity with a large, rechargeable battery, an electric motor, a controller that sends
electricity to the motor from the driver’s accelerator pedal, and a charging system. These parts of
an electric vehicle replace the IC engine, fuel tank, fuel line, and exhaust system in a traditional
car.3 While the IC engine is central to the operation of a traditional vehicle, it is the rechargeable
battery that is central to the operation of an electric vehicle.
All-electric vehicles recharge their batteries by plugging them into a household electrical outlet or
a special charging station. As discussed later in this report, there are different kinds of electric
2
Not all engines have internal combustion. For example, steam engines burn fuel outside the engine.
J.D. Power and Associates, How Do Electric Cars Work?, August 10, 2012, http://autos.jdpower.com/content/articleauto/bZFLBlW/how-do-electric-cars-work.htm.J.D Power and Associates is a California-based marketing and
information services company which includes automotive forecasting.
3
Congressional Research Service
2
Battery Manufacturing for Hybrid and Electric Vehicles: Policy Issues
vehicles. Some are all-electric and others are hybrids, with small electric motors and small IC
engines (using both electricity and gasoline as a fuel). Some of the hybrids can be plugged in for
recharging, and others, such as the original Prius, are recharged from their gasoline engine and
other internal systems.
Battery Technologies
Batteries are a form of energy storage. They store and release energy through electrochemical
processes. All battery technologies have two fundamental characteristics that affect battery
design, production, cost of operation, performance, and durability:
•
Power density is the amount of energy that can be delivered in a given period of
time, affecting how fast a vehicle accelerates, and
•
Energy density is the capacity to store energy, affecting the range a vehicle can
travel.4
There is generally a trade-off between these two characteristics: some battery technologies have
higher power density with a correspondingly lower energy density and vice versa. For vehicle
applications, it is desirable to have both high power density and high energy density to compete
with the high power and energy density of gasoline and other petroleum-based fuels. Battery
alternatives to gasoline power have so far not achieved this parity and are heavy, large in size, and
costly.
The first rechargeable lead-acid battery5 was invented in France in 1859.6 By the 1880s, French
inventors improved the design, which in turn enabled the development of new types of electric
automobiles at the beginning of the 20th century. Auto manufacturers, however, soon discovered
that the lead-acid battery is better suited for supporting IC engines than for powering vehicles.
There are a number of reasons why this 19th-century technology has been the battery of choice
around the world for so long. Lead-acid batteries are simple, inexpensive to manufacture, and
based on a technology that is widely understood and easily duplicated. Relatively small in size,
the batteries fit easily in the engine compartment, are durable and dependable, and require
virtually no maintenance. Most importantly, they provide sufficient bursts of energy to start
engines, while recharging over many cycles. In addition, 98% of lead-acid batteries are recycled,
among the highest recycling rates for any manufactured product, thus minimizing the
environmental impacts of disposal.
The typical automotive lead-acid battery is encased in a durable plastic casing. It generates 12
volts of electricity through six interconnected compartments (called cells), each of which contains
4
Heavy batteries that take up a lot of space are not suitable for most light vehicles as space is needed for passengers,
cargo, and the other mechanical and electronic components. Battery density is measured in both volume (kilowatt
hours/liter, kWh/l) and weight (kilowatt hours/kilogram, kWh/kg) terms.
5
Benjamin Franklin is often credited with developing the term “battery” for referring to a group of charged glass
plates, borrowing a military term for weapons that operate together as one unit. He developed such a battery that
gathered an electrical charge and stored it until discharge. “‘Electrical Battery’ of Leyden Jars, 1760-1769,” Franklin
and Marshall College, The Benjamin Franklin Tercentenary, http://www.benfranklin300.org/frankliniana/result.php?
id=72&sec=0.
6
“Lead-Acid Battery Information,” Battery Council International, http://www.leadacidbatteryinfo.org/resources.htm.
Congressional Research Service
3
Battery Manufacturing for Hybrid and Electric Vehicles: Policy Issues
16 metal plates, set in an electrolyte solution of water (65%) and sulfuric acid (35%). The internal
cell plates and separators are shown in Figure 2. The positive anode side of each plate is coated
in lead oxide; the negative cathode side in lead. As electrons move from the anode, they generate
up to 2 volts of electricity within each cell. The cells are arranged in a series so that the electricity
passes from one cell to the other, making the charge additive. By the time the charge has passed
through each of the six cells, 12 volts of electricity are discharged through the terminals on the
top of the battery to start the car and run the other automotive components.
How a Traditional Car Battery Works
Click on the camera icon or paste or type the footnote URL in your browser to watch this video. Most cars
use lead-acid batteries, and they are one of the important components in any vehicle. Understanding how a lead-acid
battery works in today’s vehicles is a good foundation for understanding how other types of batteries function in
hybrid and electric vehicles. This Internet video shows how the chemicals in the battery generate electricity and use
that energy to ignite the engine and operate windshield wipers, CD players, and other accessories. The video also
shows how the internal combustion engine recharges the lead-acid battery so it remains ready to crank the car every
day.7
Figure 2. The Lead-Acid Battery
Showing Internal Components
Source: Reprinted with permission from Exide
Technologies.
Once the gasoline-powered engine is started,
it not only powers the pistons in the engine,
thereby moving the car forward, but through
the alternator8 it also provides recharging for
the battery. In this process, the chemical
process that created electricity is reversed: a
flow of electrons moves backwards from the
cathode toward the anode, restoring the
chemicals on the plates to their original
position. This ongoing process of charging
and recharging the battery takes place
automatically as the car is being driven.9
The lead-acid battery has been the standard
battery technology for most of the past
century, but because of its low energy density,
it is poorly suited for electric vehicles. A 2010
DOE report noted that batteries have been
“too costly, too heavy, too bulky and would
wear out too soon.”10 Were a group of leadacid batteries placed in a hybrid or all-electric
car, they would take up an inordinate amount
of space and would add exceptional weight to
7
This video may be viewed at http://www.youtube.com/watch?v=4IgHj2Uim_0 (viewed on March 26, 2013).
The alternator is an important intermediary attached to the engine that converts power from the gasoline engine into
electrical energy to operate accessories and recharge the battery.
9
If a motorist leaves a light on in the car or otherwise turns off the engine while continuing to draw down the battery,
in time the battery will not function because the reversible charging described above will not occur. In this event, the
battery will need to be charged by an external battery charger to restore its electricity-generating capacity.
10
U.S. Department of Energy, “The Recovery Act: Transforming America’s Transportation Sector,” July 14, 2010.
8
Congressional Research Service
4
Battery Manufacturing for Hybrid and Electric Vehicles: Policy Issues
a car.11 Accordingly, new kinds of batteries are being developed that offer higher power and
energy densities for these types of vehicles.
What Are the Alternatives?
Given the shortcomings of lead-acid batteries, researchers have sought better battery technologies
since the 1970s. One of the first commercially feasible technologies12 automakers adopted was
the nickel metal-hydride (NiMH) battery. Because it has greater energy density and is lighter than
a similarly powerful lead-acid battery, NiMH batteries became the choice for early hybrid
vehicles. They are used in many hybrid vehicles today, including the Toyota Prius and Honda
Insight.13 Toyota announced in 2009 that after testing alternatives, it would continue using NiMH
batteries in many of its hybrid vehicles.14
A second technological approach involves improvement of lead-acid batteries.15 Recent federal
research grants were given to two U.S. lead-acid battery manufacturers to advance use of leadcarbon in batteries and to further work on an “ultrabattery” that could replace NiMH with a more
efficient, lower-cost alternative.16
A third technology is the “Zebra”17 battery, using sodium-nickel chloride chemistry. These
produce 50% more energy than NiMH and, according to some manufacturers, as much as some
lithium-ion batteries.18 These so-called “hot” batteries have operating temperatures up to 360
degrees (F) and reportedly perform well in very hot and very cold climates.19
11
Lead-acid batteries weigh three to four times as much per kilowatt hour (kWh) as lithium ion batteries. The Li-ion
battery in the small THINK City car is 15% of the car’s total weight; a comparable lead-acid battery pack would
account for 50% or more of the car’s weight. “Americas: Clean Energy: Clean Storage,” Goldman Sachs, June 27,
2010, p. 11.
12
This report focuses on battery technology, but the topic of energy storage includes research on ultracapacitors, which
store electric energy in electric fields instead of electrochemically (as in batteries). Research funded by DOE and at
major universities seeks to make ultracapacitors more compact through application of nanotechnology, and thereby
more likely to be utilized as electric vehicle storage units in the future.
13
The GM EV1, Toyota RAV4-EV and the Ford Ranger EV also used NiMH batteries when they were sold in
California under that state’s original Zero Emissions Vehicle mandate. (Although the original GM EV1 used lead-acid
batteries, GM converted to NiMH in later models.) “Electrification Roadmap,” Electrification Coalition, November
2009, p. 75, http://www.electrificationcoalition.org/reports/EC-Roadmap-screen.pdf.
14
“Toyota Remains with Nickel after Lithium Prius Test,” Bloomberg.com, September 14, 2009,
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aI7Ov7Jyo2nU. The Prius PHV (a plug-in hybrid) and
the electric version of the RAV-4 both use lithium ion batteries, while the previous Prius models continue to use
NiMH.
15
In hybrid vehicles, the NiMH batteries provide power to the electric motor, while a lead-acid battery provides
ignition and other starting functions.
16
“The Potential Impact of Hybrid and Electric Vehicles on Lead Demand,” International Lead and Zinc Study Group,
March 2010, http://www.eurometaux.org/DesktopModules/Bring2mind/DMX/Download.aspx?TabID=57&Command=
Core_Download&EntryId=304&PortalId=0&TabId=57 and East Penn Manufacturing Inc.,
http://www.dekabatteries.com/default.aspx?pageid=1372.
17
It is called a Zebra battery because the initial work on this form of battery chemistry was conducted by a South
African in 1985 as part of a research program dubbed the Zeolite Battery Research Africa project, or ZEBRA.
18
The energy (by weight) of NiMH batteries is 30-80 Wh/kg; for Zebra batteries it is 100 Wh/kg, for lithium-cobalt
oxide batteries it is 100 Wh/kg and for lithium-phosphate, 150 Wh/kg. “Cell Chemistry Comparison Chart,” Woodbank
Communications, http://www.electropaedia.com, http://www.mpoweruk.com/specifications/comparisons.pdf.
19
The Norwegian electric vehicle company THINK produced small cars and delivery vehicles; until its bankruptcy in
(continued...)
Congressional Research Service
5
Battery Manufacturing for Hybrid and Electric Vehicles: Policy Issues
The most prominent major new battery technology is based on lithium, a naturally occurring and
lightweight metal20 used in laptop computer batteries. Li-ion batteries have high energy and
power densities. Because lithium is lightweight, it can be fabricated into large battery packs for
use in hybrid and electric vehicles. An important characteristic of lithium is that it is reusable and
can be extracted from depleted batteries and recycled for use in new batteries. Ford Motor Co.
began using only lithium ion batteries in its hybrids in 2012.21
There are several types of lithium-based battery technologies available for commercial
application; not all automakers are using the same approach. While the types of chemistries22
shown in Table 1 differ, they have similar energy and power densities.
Table 1. Lithium-Ion Battery Chemistries in Passenger Cars
Some Major Lithium-Based Technologies in the United States
Types of Cathodes
Developers
Vehicle Application
Nickel, cobalt, and aluminum
(NCA)
Johnson Controls, Panasonic
Mercedes Benz S400 Hybrid,
Tesla Model S
Manganese
LG Chem, NEC
Chevrolet Volt, Nissan Leaf
Iron-nano-phosphate
A123 Systemsa
Fisker Karma,b Chevrolet Spark
Nickel, manganese, and cobalt
(NMC)
EnerDel
THINK City electric vehiclec
Source: “Electrification Roadmap,” Electrification Coalition, November 2009, and data supplied by
manufacturers.
Notes: Each technology is paired with lithium.
a.
A123 Systems filed for bankruptcy in 2012 and changed its name to B456 Systems on March 22, 2013.
b.
Fisker suspended production of the Karma in July 2011. Mark Loveday, “Fisker Karma Production Restart
Still a ‘Couple of Months’ Away,” Inside EVs, March 6, 2013.
c.
THINK City vehicles were initially sold for fleet use by the state of Indiana. The company declared
bankruptcy in 2011.
The Basics of Lithium-Ion Batteries
Li-ion batteries share five basic structural components with lead-acid batteries: cathode, anode,
separator, electrolyte solution, and a durable case. Li-ion batteries, like many other batteries, also
have a safety structure in light of potential chemical leakage and flammability. Figure 3 shows a
cross-section of a lithium-ion cell in cylinder form. An anode is the point on the battery where
current flows in from outside; the cathode is the point where the current flows out of the battery.
(...continued)
2011, it offered both zebra and Li-ion battery options for its vehicles. See http://blog.cleanenergy.org/files/2009/12/
about-think-and-think-city_incl-techspecs.pdf.
20
In chemistry’s periodic table, lithium is the lightest metal.
21
John Addison, “New Ford Electric Car and Hybrid Car Choices,” www.cleanfleet.report.com, (2012),
http://www.cleanfleetreport.com/ford-focus-electric-car-2012/.
22
These four lithium-based technologies are described in “Electrification Roadmap,” Electrification Coalition,
November 2009, pp. 84-86.
Congressional Research Service
6
Battery Manufacturing for Hybrid and Electric Vehicles: Policy Issues
During electrical discharge, lithium in the anode is ionized and emitted, along with electrons, into
the electrolyte. The ions and electrons move through the porous separator and into the lithium
metal oxide cathode, where the electric current they have produced is discharged.
Li-ion battery cells can also be manufactured in rectangular shapes using gel as the electrolyte,
and then encased in laminated film. Rectangular cells can be more efficient because their shape
means more finished cells can be assembled in a battery pack, increasing the density of the
battery.23 The main parts of the cell and their functions are the following:
•
Cathode. As described in Table 1, there are four major types of materials that can
be used in making the cathode of a Li-ion cell. Regardless of the material, it is
pasted on aluminum foil and pressed into a suitable shape and thickness.
•
Anode. Graphite and carbon are generally used as the basic materials and are
pasted on copper foil, then pressed into shape.
•
Electrolyte. A mixture of lithium salt
and organic solvents, such as ethyl
methyl carbonate or propylene
carbonate, the electrolyte increases
the mobility of Li-ions to improve
battery performance. Lithium
polymer batteries use a viscous gel as
the electrolyte to reduce the chance of
leaks, which are more likely with
liquid solvents.
•
Separator. This is a porous membrane
that prevents the cell’s anode and
cathode from coming into contact
with each other. Made of either
polyethylene or polypropylene, it also
provides a safety function, purposely
melting down and preventing ion
transfers if a cell heats up
accidentally.
•
Figure 3. Cross-Section of a
Cylindrical Li-ion Cell
Source: Marcy Lowe et al., Lithium-ion Batteries for
Electric Vehicles: The U.S. Value Chain, Duke University
Center on Globalization, Governance &
Competitiveness, November 4, 2010, p. 32.
Safety elements. Li-ion batteries can
overheat, so they are built with safety vents, thermal interrupters, and other
features, such as a center pin to provide structural stability, to prevent short
circuits. Lead-acid and NiMH batteries are less prone to short-circuiting because
their electrolyte solution is not flammable. In rare cases when a Li-ion battery
does short-circuit, battery temperatures can increase by several hundred degrees
in a few seconds, potentially leading to a chain reaction that could destroy the
battery and cause a fire.24 Automakers also build a computer-controlled, liquid
23
Marcy Lowe, Saori Tokuoka, Tali Trigg, and Gary Gereffi, Lithium-ion Batteries for Electric Vehicles: The U.S.
Value Chain, Duke University Center on Globalization, Governance & Competitiveness, November 4, 2010, pp. 31-33.
24
There have been a number of fires caused by Li-ion batteries, in vehicles, computers, and, most recently, airplanes.
Several Volt batteries caught fire after the National Highway Traffic Safety Administration (NHTSA) ran crash tests;
Fisker and Mitsubishi vehicles owned by consumers have experienced battery fires. Li-ion batteries being used in a
Boeing 787 Dreamliner passenger aircraft caught fire in January 2013. In 2006, Sony laptops were recalled because of
(continued...)
Congressional Research Service
7
Battery Manufacturing for Hybrid and Electric Vehicles: Policy Issues
thermal cooling and heating system to maintain battery temperatures in a safe
range and to monitor other elements of the battery’s performance.
•
Canister. A steel or aluminum can houses each Li-ion cell. The cells are
assembled into a battery pack for final use. The Chevrolet Volt, for example,
contains 288 rectangular cells in its 6-foot-long battery pack.25
Battery packs containing Li-ion cells are much larger than a conventional lead-acid battery. In the
Chevrolet Volt, the battery pack is 6 feet long, weighs 435 pounds and is arranged in a T-shape
that sits under the center of the passenger cabin, as shown in Appendix B.
Automakers have not disclosed the costs of the Li-ion batteries they use. As discussed later in this
report, the batteries reportedly cost from $375-$750 kWh,26 making a 16 kWh battery cost as
much as $12,000. Fully electric vehicles with a longer driving range would need as much as 35
kWh, meaning that the batteries alone would cost more than many vehicles now on the road.27 To
travel 300 miles on battery power, it is estimated that vehicles would need a capacity of 100 kWh
of stored electric power.
The Li-Ion Battery Supply Chain
Because they are lightweight and have relatively high energy intensity, Li-ion batteries have been
used predominantly in a range of small consumer products that are manufactured mainly in Asian
countries, so many Li-ion battery manufacturers have located production in Asia.28 Automotive
batteries are one of the fastest-growing applications. Navigant Research, a private firm formerly
known as Pike Research, forecasts that the worldwide market for lithium-ion batteries in light
duty transportation will grow from $1.6 billion in 2012 to almost $22 billion in 2020,29 and that
“the Asia Pacific region will continue to be the global leader in both Li-ion production and
consumption in the transportation industry, with support by major governments for aggressive
goals in plug-in vehicle (PEV) production, creation of charging infrastructure, and incentives for
consumer purchases.”30
(...continued)
concerns over Li-ion battery fires. In 2008, a military mini-submarine was destroyed when its Li-ion battery exploded
during charging.
25
http://www.chevrolet.com/volt-electric-car/faq.html.
26
Kilowatt hour.
27
By comparison, a 10-gallon tank of gasoline contains about 360 kWh of energy, according to Carnegie Mellon
University researchers. Ching-Shin Norman Shiau, Constantine Samaras, Richard Hauffe, and Jeremy J. Michalek,
“Impact of Battery Weight and Charging Patterns on the Economic and Environmental Benefits of Plug-In Hybrid
Vehicles,” Energy Policy, February 2009, http://www.cmu.edu/me/ddl/publications/2009-EP-Shiau-Samaras-HauffeMichalek-PHEV-Weight-Charging.pdf.
28
Marcy Lowe et al., “Lithium-ion Batteries for Electric Vehicles,” p. 6.
29
Navigant Research, Electric Vehicle Batteries, January 2013, http://www.navigantresearch.com/newsroom/lithiumion-batteries-for-electric-vehicles-will-reach-22-billion-in-annual-market-value-by-2020.
30
Pike Research, Pike Research forecasts automotive Li-ion battery market to grow to almost $22B in 2020; China to
become global leader in production by 2015, January 11, 2013, http://www.greencarcongress.com/2013/01/pike-libs20130111.html.
Congressional Research Service
8
Battery Manufacturing for Hybrid and Electric Vehicles: Policy Issues
Japan and South Korea held an estimated 80% share of global production of advanced Li-ion
batteries in 2010; China, 12%; others, nearly 6%; and the United States, about 2%.31 While
ARRA sought to spur development of a U.S. electric vehicle supply chain, many of the recipients
of stimulus grants have not prospered, as discussed later in this report. Although present demand
for Li-ion vehicle batteries is low, it is still possible that U.S. market share could increase in the
next decade if demand for electric and plug-in hybrid vehicles increases. (Navigant estimates that
worldwide electric vehicle sales will reach 3.8 million annually by 2020.)32
The potential demand for Li-ion automobile batteries may encourage creation of a domestic
battery supply chain. In ARRA, Congress encouraged this development with $2.4 billion of grants
for battery manufacturing facilities.
There are several market factors that may favor the creation of a domestic supply chain. First,
most U.S. auto plants practice just-in-time manufacturing, with key suppliers located near the
assembly plants they supply. Automakers may want their Li-ion battery suppliers near their plants
as well. In addition, the heavy weight of large Li-ion batteries for cars and light trucks makes it
more cost-effective to assemble those batteries near the motor vehicle assembly plants where they
will be used, rather than transporting them for thousands of miles.
The Li-ion battery assembly plants, however, are only the final link in a lengthy supply chain33
that includes research and development, raw material search and mining, manufacture of
equipment to make Li-ion batteries and cases, assembly of the batteries and electronics
themselves, marketing, financing, shipping, and customer service. Much of this supply chain did
not exist in the United States prior to the passage of ARRA.
A 2010 report on the Li-ion battery supply chain by Duke University’s Center on Globalization,
Governance & Competitiveness (CGGC)34 divides the Li-ion supply chain into four levels. The
automakers are the first level. Tier 1 suppliers are generally larger supplier firms that directly sell
to the automakers. Tier 2 and 3 suppliers often supply the Tier 1 supplier with components.
Tier 3 Suppliers
There are a number of Tier 3 U.S. suppliers of lithium compounds, electrolyte solutions, and
graphite (used on anodes). Two of the world’s largest suppliers of lithium are U.S.-based FMC
Lithium and Chemetall Foote, a division of Rockwood Holdings. Chemetall alone supplies over a
third of all lithium used in the world, sourcing it from brine deposits in Chile and ore from a mine
in North Carolina.35
31
Marcy Lowe et al., “Lithium-ion Batteries for Electric Vehicles,” pp. 18-19.
Navigant Research, Electric Vehicle Market Forecasts, January 2013.
33
For a short video explaining how lithium is mined and processed into a product for use in batteries by one
manufacturer, see http://www.youtube.com/watch?v=5Dlfakh_NJY.
34
Marcy Lowe et al., “Lithium-ion Batteries for Electric Vehicles,” p. 29.
35
Chemetall also operates a small brine pool operation in Silver Peak, NV. South Korea and Japan, which do not have
their own domestic lithium sources, have developed technology to extract lithium from sea water and plan to have such
facilities operating in a few years. This would provide a third source for lithium (in addition to brine pools and ore) and
could affect the world price for the mineral. “South Korea Plans to Extract Lithium from Seawater,”
http://www.smartplanet.com, January 20, 2011. It has been estimated that there are 230 billion tons of lithium in sea
water. “Lithium Occurrence,” Institute of Ocean Energy, Saga University, Japan, http://www.ioes.saga-u.ac.jp/ioes(continued...)
32
Congressional Research Service
9
Battery Manufacturing for Hybrid and Electric Vehicles: Policy Issues
According to the Mineral Information Institute, “most lithium is recovered from brine, or water
with a high concentration of lithium carbonate. Brines trapped in the Earth’s crust (called
subsurface brines) are the major source material for lithium carbonate. These sources are less
expensive to mine than rock such as spodumene, petalite, and other lithium-bearing minerals.”36
While U.S. firms have a strong foothold at this level of the supply chain, most of the raw material
comes from abroad, although sites in Nevada37 are being developed to supply the U.S. market.
It is estimated that the United States has approximately 760,000 tons of lithium. The
resources in the rest of the world are estimated to be 12 million tons. The United States is the
world’s leading consumer of lithium and lithium compounds. The leading producers and
exporters of lithium ore materials are Chile and Argentina. China and Russia have lithium
ore resources, but it is presently cheaper for these countries to import this material from
Chile than to mine their own.38
Industry analysts say there is no shortage of lithium in the foreseeable future and that by 2020,
there may be excess supply, driving down prices and undermining investments by current
producers.39
In addition to lithium, manganese, nickel, cobalt, copper, and aluminum are used in different
forms to make Li-ion batteries. While there are diverse sources for most of these minerals, some
are concentrated in a few locations that could have implications for supply or pricing. For
example, more than a third of the world’s production of cobalt comes from the Democratic
Republic of Congo, and some rare earth minerals used in producing electric vehicle components
are mined primarily in China.40
U.S. suppliers have strong positions in the manufacture of several other basic materials used in
battery manufacturing. Novolyte makes electrolytes at its Baton Rouge, LA, plant, and a
Honeywell facility produces high-quality lithium salt for use in electrolytes.41 Future Fuel
Chemical in Batesville, AR, produces graphite components used in anodes.
Tier 2 Suppliers
Moving up the supply chain, the Tier 2 suppliers provide components and chemicals for Li-ion
cells, as well as electronics used in the final battery packs (see Table 2). U.S. firms included in
this part of the supply chain are Celgard, the world’s third-largest producer of separators, as well
(...continued)
study/li/lithium/occurence.html.
36
“Lithium,” Mineral Information Institute, http://www.mii.org/Minerals/photolith.html.
37
Nevada Mining Association, July 2012, http://www.nevadamining.org/nvmablog/2012/07/31/the-diversification-ofnevada-mining-lithium/.
38
“Lithium,” Mineral Information Institute, http://www.mii.org/Minerals/photolith.html.
39
“Lithium Ion Batteries, The Bubble Bursts,” Roland Berger Strategy Consultants, October 2012,
http://www.rolandberger.us/media/pdf/Roland_Berger_Li-Ion-Batteries-Bubble_20121019.pdf.
40
China disrupted the world rare earth market in 2010 when it suddenly suspended shipments to Japan, affecting
Japanese automakers’ vehicle production. For a discussion of the rare earth issues, including the impact on the auto
industry, see CRS Report R42510, China’s Rare Earth Industry and Export Regime: Economic and Trade Implications
for the United States, by Wayne M. Morrison and Rachel Tang.
41
Honeywell’s electrolyte R&D was conducted at its Buffalo, NY, facility; the electrolyte solution is manufactured in
Metropolis, IL.
Congressional Research Service
10
Battery Manufacturing for Hybrid and Electric Vehicles: Policy Issues
as DuPont and Applied Materials. ConocoPhillips and Superior Graphite produce active materials
and binders used for anodes. 3M, Dow Kokam, and SouthWest NanoTechnologies make active
materials, binders, and carbon electric conductors for cathodes.
Table 2. Leading Domestic Suppliers to Li-ion Battery Manufacturers
Selected Tier 2 Producers
Tier 2 Supplier
Facility Location
Celgard
Charlotte, NC
DuPont
Chesterfield County, VA
Applied Materials
Santa Clara, CA
ConocoPhillips
Houston, TX
Superior Graphite
Bedford Park, IL
3M
St. Paul, MN
Dow Kokam
Midland, MI
SouthWest NanoTechnologies
Norman, OK
Texas Instruments
Dallas, TX
Atmel
San Jose, CA
Maxim Integrated Products
Sunnyvale, CA
H&T Waterbury
Waterbury, CT
Source: Department of Energy, FY 2012 Progress Report for Energy Storage R&D, January 2013,
http://www1.eere.energy.gov/vehiclesandfuels/resources/vt_es_fy12.html and independent news reports.
Electronics developed for Li-ion batteries are similar to those used in consumer goods, and are
used to manage various battery functions. They check the voltage and cell balance and monitor
and report charging status. Chips are also used to monitor and regulate the temperature of the Liion battery so it does not overheat. Texas Instruments, Atmel, and Maxim Integrated Products are
among the electronics and controls companies that produce electronic components. Other
components used in the battery include the steel or aluminum can, which houses the Li-ion cell
(made by H&T Waterbury); insulators; safety vents; gaskets; and center pins.
Tier 1 Suppliers
Tier 1 suppliers put all the pieces together into a battery. The cell and battery-pack manufacturers
are the most visible part of the U.S. electric battery supply chain, but this stage has been the
weakest link. Prior to ARRA, only one company—Indiana-based EnerDel—had operated a
domestic high-volume anode and cathode coating and cell manufacturing facility. Many U.S.
pack manufacturers still import cells. For example, the Li-ion cells used in the in GM Volt’s
batteries are made by LG Chem in South Korea, shipped to Michigan, and made into batteries
there.42
42
“LG Chem Announces $303 Million Investment to Build Volt Battery Plant in Michigan,” General Motors press
release, March 12, 2010, http://gm-volt.com/2010/03/12/lg-chem-announces-303-million-investment-to-build-voltbattery-plant-in-michigan/.
Congressional Research Service
11
Battery Manufacturing for Hybrid and Electric Vehicles: Policy Issues
This is the part of the supply chain that has received significant federal subsidies through ARRA
to jump-start U.S. production, as described in the following section. The firms that are building
Li-ion manufacturing capacity in spring 2013 include LG Chem; Johnson Controls; A123
Systems43; and Dow Kokam.
These U.S-based facilities compete with Asian facilities that have been making and marketing Liion batteries for consumer products in large volumes for decades, including BYD, Hitachi, NEC,
Panasonic, Samsung, and Toshiba. U.S. makers of Li-ion vehicle batteries will need to achieve
high-volume production to realize economies of scale and drive unit costs down. Achieving
adequate volume may remain a challenge for the Tier 1 suppliers in the United States in light of a
highly competitive marketplace for battery packs.
Researchers at the Massachusetts Institute of Technology highlighted the central role of scale in
vehicle electrification:
Manufacturing is key to achieving a commercially successful EV battery pack. Low cost is
only achieved in large-volume, highly automated factories. This raises two issues. Successful
development of EVs requires attention to both R&D and manufacturing of battery systems.
Understanding possible economies of scale in manufacturing is an important aspect of
battery technology development since manufacturing cost is decisive in the ultimate
economics of EVs. Second, battery manufacturing will not necessarily occur in the country
that creates the battery technology. This is an especially vexing political question in the US
where it is widely believed, perhaps correctly, that high-technology manufacturing of
products such as batteries is taking place abroad, especially Asia, despite low labor content.
Both issues have implications for the government role in supporting EV development.44
The Role of the Automakers
The Tier 1 suppliers deliver batteries to the automakers for final assembly into vehicles. The
automakers’ role is quite different from that with traditional lead-acid batteries, which are simply
dropped into a vehicle’s engine compartment and connected to the electrical system. In
manufacturing hybrid and fully electric vehicles, the automakers provide additional critical,
proprietary technologies that mesh the battery’s output with the vehicle’s overall operation. GM
has highlighted one such technology application in its Chevy Volt:
“Three different systems are used to regulate the temperature of the coolant,” said Bill
Wallace [GM’s Director of Global Battery Systems]. “When the Volt is plugged in and
charging in cold weather, an electric heater at the front of the battery pack is used to warm
the coolant and pre-heat the battery. During normal operations, the coolant is passed through
a heat exchanger at the front of the car, while a chiller in the air conditioning circuit can be
used to dissipate heat from the battery when temperatures really climb.”
The management system monitors feedback from 16 thermal sensors arranged throughout
the battery pack to maintain a spread of no more than 2 degrees centigrade from the optimal
temperature across the pack.45
43
A123 Systems changed its name to B456 Systems in March 2013.
“Electrification of the Transportation System,” sponsored by the MIT Energy Initiative, April 8, 2010, p. 4,
web.mit.edu/mitei/docs/reports/electrification-transportation-system.pdf.
45
“Cooling Fins Help Keep Chevrolet Volt Battery At Ideal Temperature,” GM News Release, February 14, 2011,
(continued...)
44
Congressional Research Service
12
Battery Manufacturing for Hybrid and Electric Vehicles: Policy Issues
Automakers are integrally involved in the design and production of Li-ion batteries for their
vehicles. As GM observed, “the Volt’s battery pack design is directly coupled with the vehicle
design to assure complete integration between the battery pack and the vehicle.”46 This means
that the automaker’s decision as to which battery to procure will be in effect for a prolonged
period, perhaps the life of the vehicle model, as a battery designed for one vehicle may not
function optimally in another. Some automakers have entered joint ventures or partnerships with
battery manufacturers. The batteries for the Nissan Leaf all-electric vehicle are sourced from a
Nissan partnership with NEC, for example, and Toyota has a battery joint venture with Panasonic.
These arrangements may benefit the battery manufacturers by permitting large-volume
production, but may also tie the battery manufacturer’s fate to the success of a single vehicle
manufacturer.
U.S. automakers appear to have rejected such corporate alliances, deciding instead to shop for
batteries for particular models. For example, General Motors sought competitive bids before
selecting South Korea-based LG Chem for its Volt Li-ion battery, reportedly over A123 Systems,
which at the time was U.S.-owned.
The Battery Manufacturing Process
Li-ion batteries have generally been produced in Asia, near manufacturing sites for batterydependent portable consumer products. But the transition from small, consumer-goods batteries
to larger batteries for motor vehicles may well open the door for new entrants into the industry. In
the motor vehicle industry, according to one analyst, “extended cycle life, high specific energy,
and safety in extreme conditions—necessitate much tighter tolerances on material and
manufacturing specifications, and often require a fundamental rethinking of core battery
technology.”47 This implies that the companies that have been most successful in manufacturing
Li-ion batteries for consumer products will not necessarily dominate the automotive market.
The first step in manufacturing a battery is to procure the lithium, which is mined primarily in
Chile. The mineral is refined into a white powder (lithium carbonate) at Chilean plants and
shipped as either a powder or as 11-pound ingots to Tier 2 or 3 manufacturers.
The Tier 2 and 3 suppliers convert the ingots or powder into lithium metal that is used in battery
cells. This is a highly automated process requiring great precision. The manufacturers apply an
extrusion process to the ingot and flatten it into a more manageable piece of metal which is
1/100th of an inch thick and 650 feet long. Eventually, the metal, rolled even thinner (1.25 miles
long), will produce over 200 batteries. Because the lithium metal strip can stick to itself, a soft
film is laminated to it so it can be further wound into spools.
(...continued)
http://media.gm.com/content/media/us/en/news/news_detail.brand_chevrolet.html/content/Pages/news/us/en/2011/Feb/
0214_battery.
46
Energy Storage Research and Development, Annual Progress Report 2010, U.S. Department of Energy, Office of
Energy Efficiency and Renewable Energy, January 2011, p. 26.
47
“The Lithium Battery Opportunity: More Than Meets the Ion,” Source: PRTM (Pittiglio Rabin Todd & McGrath),
http://www.prtm.com/StrategicCategory.aspx?id=4002&langtype=1033.
Congressional Research Service
13
Battery Manufacturing for Hybrid and Electric Vehicles: Policy Issues
At this stage, the lithium is divided into individual cells, heated at a high temperature for 90
minutes, and then tested for electrical transmission capabilities. A punch machine cuts out cells in
the sizes needed for their application (automobiles, cell phones, laptops, etc.).48 It has been
estimated that 70% of the value added in making Li-ion batteries is in the development and
manufacture of the cell itself (compared with, for example, only 15% in the assembly of the
battery and 10% in electrical and mechanical components).49
The individual cells are packaged carefully and shipped to a Tier 1 fabrication plant, where they
are sprayed with molten metals that will establish the anodes and cathodes of the battery cell. The
cathodes, as shown in Table 1, are especially important in the battery function, because there are
different options for their chemical composition and they have unique characteristics which each
manufacturer has developed and may have patented. Some cathode manufacturers may partner
with companies that specialize in producing advanced cathode materials. As the battery industry
develops, Tier 2 battery component plants may be built adjacent to the Tier 1 facilities, as
geographic proximity is generally seen as a competitive advantage in the supplier-automaker
relationship.50
Tier 1 manufacturers and automakers assemble the individual cells, fabricate the modules, and
assemble all components from Tier 2 and 3 suppliers into battery packs ready for placement in a
motor vehicle. Battery packs have 250-500 cells. GM chooses to do the final battery pack
assembly at its Brownstown, MI, plant, giving it more control over how the battery pack interacts
with the vehicle’s overall power system. As one analyst noted, “the fact GM is keeping 100% of
the battery integration in-house illustrates the centrality of the battery in electric vehicles.”51
ARRA and the Battery Supply Chain
In 2009, ARRA provided $2.4 billion in stimulus funding to support the establishment of Li-ion
battery manufacturing facilities in the United States.52 At the time it was enacted, the Obama
Administration asserted that ARRA investments may lower the cost of some types of electric car
batteries by 70% by the end of 2015, enabling the production of as much as 40% of the world’s
advanced vehicle batteries in the United States.53 In August 2009, DOE announced that it would
fund 48 new advanced battery manufacturing and electric drive vehicle projects for PHEVs and
EVs in over 20 states, stating, “the grantees were selected through a competitive process
conducted by DOE and are intended to accelerate the development of U.S. manufacturing
capacity for batteries and electric drive components as well as the deployment of electric drive
48
The discussion of Li-ion battery making is sourced from “Lithium Cell Manufacturing,” BatteryEducation.com, June
11, 2010, http://www.batteryeducation.com/2010/06/lithium-cell-manufacturing-part-3.html.
49
“PRTM Analysis Finds Li-ion Battery Overcapacity Estimates Largely Unfounded, with Potential Shortfalls
Looming,” Green Car Congress, March 22, 2010, http://www.greencarcongress.com/2010/03/prtm-20100322.html.
50
Geographic proximity of supplier facilities to the final assembly plants is generally known as “Just In Time”
inventory management and manufacturing.
51
Lyndon Johnson, “Cadillac ELR to be Unveiled at NAIAS,” www.TechnologyTell.com, December 28, 2012,
http://www.technologytell.com/in-car-tech/873/cadillac-elr-to-be-unveiled-at-naias/.
52
The Obama Administration has stated that the $2.4 billion ARRA investment has been more than matched by private
sector investments in the same facilities. “One Million Electric Vehicles by 2015,” February 2011 Status Report, U.S.
Department of Energy, p. 5, http://www.energy.gov/news/documents/1_Million_Electric_Vehicle_Report_Final.pdf.
53
“The Recovery Act: Transforming America’s Transportation Sector,” U.S. Department of Energy, July 14, 2010.
Congressional Research Service
14
Battery Manufacturing for Hybrid and Electric Vehicles: Policy Issues
vehicles to help establish American leadership in developing the next generation of advanced
vehicles.”54
DOE provided $1.5 billion in grants to accelerate the development of a domestic battery supply
chain, including
•
$28.4 million to develop lithium supplies;
•
$259 million to produce Li-ion cell components such as cathodes, anodes,
separators, and electrolyte solution;
•
$735 million to make cells using diverse chemistries such as iron phosphate,
nickel cobalt metal, and manganese spinel;
•
$462 million for pack assembly facilities; and
•
$9.5 million for a lithium recycling facility.
Appendix A provides detail on these grants. The seven largest grants, totaling more than $1.2
billion—half of total grant funding—went to the companies in Table 3.
The remaining ARRA funding for new electric battery development was allocated for two related
goals: (1) $500 million was provided for U.S. production of electric drive components for
vehicles, including electric motors, power electronics, and other drive train components; and (2)
$400 million for purchase of several thousand PHEVs for demonstration purposes, installation of
a charging station network, and workforce training related to transportation electrification.55
54
Energy Storage Research and Development, Annual Progress Report 2010, U.S. Department of Energy, Office of
Energy Efficiency and Renewable Energy, January 2011, p. 9.
55
“DoE Announces $2.4 Billion for U.S. Batteries and Electric Vehicles,” Press Release from U.S. Department of
Energy, Office of Energy Efficiency and Renewable Energy, August 5, 2009, http://apps1.eere.energy.gov/news/
daily.cfm/hp_news_id=192.
Congressional Research Service
15
Battery Manufacturing for Hybrid and Electric Vehicles: Policy Issues
Table 3. Largest Recipients of ARRA Electric Storage Funding
In Millions of U.S. Dollars
Company
Amount
Johnson
Controls
$299.2
Purpose
2013 Update
Produce nickel-cobalt-metal
battery cells and packs and cell
separators
Plant in Holland, MI, was the first
in the United States to
manufacture Li-ion cells and
complete hybrid battery systems.
Pack assembly began in 2010 and
cell production in 2011; it has
two shifts, with third being hired.
A123 Systemsa
249.1
Produce iron-phosphate cathode
powder and electrode coatings;
fabricate cells and battery packs
Two plants in Michigan produce
components for GM and other
customers. Filed for bankruptcy
in 2012; non-military assets
acquired by Chinese auto parts
maker, Wanxiang.
Dow Kokam
161.0
Produce manganese cathodes
and lithium-ion batteries
Production of cells at Midland,
MI, plant began in November
2012.
LG Chem
(Compact
Power)
151.4
Produce separators and lithiumion polymer batteries cells
Plant in Holland, MI, was built,
but no cells or batteries have
been produced as of spring 2013.
It was originally planned that GM
would source its Volt Li-ion cells
from this plant instead of from
LG Chem plants in Korea.
EnerDelb
118.5
Produce lithium-ion cells and
packs
Produced cells at its Indiana
facility in 2011. Filed for
bankruptcy in 2012 after its main
vehicle customer, THINK City
cars, went out of business; assets
were bought by a Russian
investor.
General Motors
105.9
Produce high-volume battery
packs for the Volt; cells will be
from LG Chem and others.
Produces battery packs for the
Volt with cells imported from LG
Chem in Korea.
Saft Americas
95.5
Produce Li-ion cells, modules,
and battery packs.
Opened Jacksonville, FL, plant in
2012 to make batteries for
stationary uses, trucks, and race
cars.
Source: Energy Storage Research and Development, Annual Progress Reports 2010 and 2012, U.S. Department of
Energy, Office of Energy Efficiency and Renewable Energy, January 2011, Appendix A, and news reports.
a.
Changed name to B456 Systems on March 22, 2013.
b.
EnerDel is a wholly owned subsidiary of Ener1, Inc.
Congressional Research Service
16
Battery Manufacturing for Hybrid and Electric Vehicles: Policy Issues
The Obama Administration has contended that ARRA spending had an immediate impact in
transforming the U.S. advanced battery industry. In a statement issued in January 2011, when
Vice President Joe Biden visited the Ener1 battery manufacturing facility in Mt. Comfort, IN, the
U.S. Department of Energy (DOE) said ARRA would increase U.S. advanced technology battery
manufacturing capability from two plants and a 2% global market share to more than two dozen
manufacturers and a projected 40% of the world’s EV batteries by 2015, and that it would cut the
cost of batteries in half by 2013.56 DOE reports that the cost of Li-ion batteries dropped from
$1,000/kWh in 2008 to $500/kWh in 2012. DOE seeks to lower the cost to $300/kWh by 2014
and $125/kWh by 2022.57
In February 2013, the DOE inspector general issued a report concerning the ARRA grant to LG
Chem, identifying $106 million in “inappropriate” payments to the company. In congressional
testimony in March 2013, Inspector General Gregory Friedman said that the grant language did
not require a transfer of manufacturing from LG Chem’s Korean operations to the new Michigan
plant, although that was the intention of the grant.58
Moving beyond ARRA, President Obama has outlined several initiatives that could make electric
vehicles more affordable, calling on Congress to
•
Raise the tax credit for electric vehicles to $10,000 and make it a rebate from the
dealer available to a car buyer at the time of purchase.59 The Administration
argues that a rebate would encourage more Americans to buy electric vehicles if
they did not have to wait to file their tax return to realize the savings. Automobile
dealers, many of whom oppose it, would be integral to this plan as the rebates
would be made available at point of purchase.60
•
Raise R&D investment in electric drive, battery, and energy storage technologies.
The President’s FY2012 budget proposed to increase funding for the DOE
Vehicles Technologies program from $304 million to $588 million, with a goal to
“move mature battery technologies closer to market entry through the design and
development of advanced pre-production battery prototypes.”61 Instead, Congress
authorized $328 million. For FY2013, the Administration requested the program
56
“Vice President Biden Announces Plan to Put One Million Advanced Technology Vehicles on the Road by 2015,”
Press Release from U.S. Department of Energy, Office of Energy Efficiency and Renewable Energy, January 26, 2011,
http://www.energy.gov/10034.htm.
57
Energy Storage Research and Development, Annual Progress Report 2012, U.S. Department of Energy, Office of
Energy Efficiency and Renewable Energy, January 2013, p. 5.
58
Department of Energy, The Department of Energy’s Management of the Award of a $150 Million Recovery Act
Grant to LG Chem Michigan Inc, OAS-RA-13-10, February 8, 2013, http://energy.gov/ig/downloads/departmentenergys-management-award-150-million-recovery-act-grant-lg-chem-michigan-inc.
59
The Congressional Budget Office (CBO) reports that the lifetime costs of an electric vehicle are higher than those of
a vehicle with an internal combustion engine or of a hybrid, even with a federal tax credit. CBO says the federal tax
credit would have to be set at $12,000 to equalize the lifetime costs. CBO estimates that the current $7,500 tax credit,
together with other electrification grant programs and the Advanced Technology Vehicle Manufacturing program, will
have a budgetary cost of $7.5 billion through 2019. Congressional Budget Office, Effects of Federal Tax Credits for the
Purchase of Electric Vehicles, September 2012, p. iii.
60
The National Automobile Dealers Association (NADA) opposes this proposal because, it says, dealers would have to
finance the tax credit and wait many months for government reimbursement.
61
“Budget Highlights, Department of Energy, FY 2012 Congressional Budget Request,” p. 31,
http://www.cfo.doe.gov/budget/12budget/Content/FY2012Highlights.pdf.
Congressional Research Service
17
Battery Manufacturing for Hybrid and Electric Vehicles: Policy Issues
be funded at $420 million, a 28% increase over FY2012.62 DOE’s budget request
states that the FY2013 activities “focus on meeting the President’s 2015
electrification goal, and addressing key program goals through 2020 and
beyond.”63
•
Establish a $2 billon energy trust fund that uses revenues from offshore oil and
gas leases to support development of cars and trucks powered by electricity,
biofuels, and natural gas.
In addition, the Administration launched the EV Everywhere Challenge, committing $50 million
of federal funds to “set technical goals for cutting costs for the batteries and electric drivetrain
systems, including motors and power electronics, reducing the vehicle weights while maintaining
safety, and increasing fast-charge rates.”64 As part of this program, DOE is also sponsoring the
Workplace Charging Challenge, with a goal of achieving a tenfold increase in the number of U.S.
employers offering workplace charging in the next five years.65
Federal Support for Battery Technology R&D
Congress first acted to support electric and hybrid vehicle technologies in 1976, when it
established a demonstration project that was to lead to the federal purchase of 7,500 electric
vehicles.66 The legislation was vetoed by President Gerald Ford on the grounds that it was
premature to demonstrate vehicle technologies before adequate batteries had been developed, but
Congress overrode his veto. This law initiated DOE’s hybrid and electric vehicle research and
development program. Recognizing that advanced technology vehicles were only as good as the
batteries that would propel them, DOE began a research program to improve existing—that is,
lead acid—battery technology and to study what were then advanced concepts of battery
chemistry, such as sodium sulfur and lithium iron metal sulfides.
A number of electric demonstration vehicles were produced in the following years by Ford,
General Motors, and American Motors, but Congress realized in 1978 that producing so many
demonstration vehicles quickly was unrealistic. It stipulated a new schedule, mandating the
introduction of only 200 vehicles in 1978, 600 in 1979, and more in the 1980s. However,
President Ronald Reagan cancelled the program in 1981,67 basing the decision in part on a critical
1979 General Accounting Office report. GAO asserted commercialization would require a major
effort to improve electric vehicle technology, strengthen the electric vehicle industry, establish a
62
Department of Energy, FY 2013 Congressional Budget Request, Volume 3, February 2012, p. 185,
http://www.cfo.doe.gov/budget/13budget/Content/Volume3.pdf.
63
Ibid., p. 179.
64
Department of Energy, President Obama Launches EV-Everywhere Challenge as Part of Energy Department’s
Clean Energy Grand Challenges, March 7, 2012.
65
More than 25 employers have signed up to provide electric charging stations for their employees, including 3M,
Coca Cola, Duke Energy, and Verizon. Department of Energy, EV Everywhere Workplace Charging Challenge,
http://www1.eere.energy.gov/vehiclesandfuels/electric_vehicles/workplace_charging.html.
66
The Electric Vehicle Research, Development, and Demonstration Act of 1976, P.L. 94-413.
67
Gijs Mom, The Electric Vehicle: Technology and Expectations in the Automobile Age, Johns Hopkins University
Press, 2004, p. 271.
Congressional Research Service
18
Battery Manufacturing for Hybrid and Electric Vehicles: Policy Issues
new market, and create an infrastructure to support it. It found that the private sector
demonstration project was premature and urged refocusing of government R&D.68
In subsequent years, DOE continued research on vehicle energy storage options. In 1990,
California mandated that zero emission vehicles be sold by major automakers, ushering in new
interest in hybrid and electric vehicles. The Energy Policy Act of 1992 (P.L. 102-486) directed
DOE to develop a research, development, and demonstration project for fuel cells and electric
vehicles.
DOE has provided support to the research programs of the U.S. Council for Automotive Research
(USCAR), which was established in 1992 as the U.S. motor vehicle industry’s research
consortium on advanced vehicles.69 USCAR houses the U.S. Advanced Battery Consortium
(USABC), focused on research and development of battery technologies.70
Partnership for a New Generation of Vehicles
In 1993, the Clinton Administration expanded the scope of advanced vehicle research by
establishing the Partnership for a New Generation of Vehicles (PNGV).71 This initiative was a
public-private partnership between the federal government and USCAR. Its goals were to (1)
leverage federal and private sector resources to develop advanced manufacturing technologies,
within 10 years; (2) produce near-term improvements in automobile efficiency, safety and
emissions; and (3) triple vehicle fuel efficiency from the average 1994 level to 80 miles per
gallon,72 while still meeting all environmental regulations and keeping the cost affordable.
A top priority of the program was to develop advanced auto manufacturing technologies that
would spawn production of vehicles with low gasoline consumption and emissions. PNGV
officials believed that if such vehicles were attractive commercially, then they would sell in high
volumes, driving down costs. While PNGV supported work on a broad range of manufacturing
technologies and products, such as new lightweight materials and new fuels, a prominent aspect
of the program was the decision of the automakers to seek to build diesel-powered, hybridelectric vehicles (HEV) through this program. Consequently, PNGV’s focus included research
and development of advanced energy storage systems for use in HEVs.
Battery research under PNGV was focused primarily on NiMH and Li-ion batteries because these
technologies were thought to offer the best prospects for performance, cost, durability, and safety.
In a review of PNGV in its final year of 2001, the National Research Council (NRC) of the
National Academy of Sciences reported that while the new batteries were not ready for
widespread use, “The soundness of choosing these [NiMH and Li-ion] systems for development
68
The Congress Needs to Redirect the Federal Electric Vehicle Program, Report to the Congress by the Comptroller
General, April 9, 1979, GAO Report EMD-79-6, http://archive.gao.gov/f0302/109041.pdf.
69
Its members are GM, Ford, and Chrysler and its goal has been to foster intercompany cooperation on advanced
technology vehicles, thereby reducing R&D costs, http://www.uscar.org/guest/index.php.
70
http://www.uscar.org/guest/view_team.php?teams_id=12.
71
PNGV was established by administrative action, not legislation. Several federal agencies participated in PNGV,
including the Departments of Commerce, Energy, Defense and Transportation; Environmental Protection Agency
(EPA); National Science Foundation, and NASA.
72
PNGV began its work in 1994 and used vehicles of that year as its benchmark.
Congressional Research Service
19
Battery Manufacturing for Hybrid and Electric Vehicles: Policy Issues
is confirmed by the substantial progress made by PNGV toward most of these targets and the
commercial use by all Japanese HEVs of either NiMH or Li-ion batteries.”73
FreedomCAR and Beyond
The Bush Administration revamped PNGV administratively, as there was no statutory basis for it.
In its place, it established in 2002 a similar initiative with more of a focus on commercial as well
as passenger vehicles and on fuel cell research: the FreedomCAR and Fuel Partnership within
DOE.74 USCAR was still the private sector partner, but other federal agencies that had been part
of PNGV, such as the Department of Commerce, were no longer involved. In addition, five major
oil companies, including ExxonMobil and Chevron, joined the research effort to develop more
efficient IC engines focused on hydrogen fuel cells and, eventually, hybrid electric vehicles. Two
utilities, DTE Energy (Detroit) and Southern California Edison, also joined the Partnership.
As with PNGV, the new initiative included an energy storage program, called “FreedomCAR and
Vehicle Technologies,” or FCVT. It built on the research base of predecessor programs with
industry-government technical teams. About 61% of the federal research funding was spent on
work at the national laboratories, 35% on industry research, and 4% on university and other types
of research.75 Its goal was to demonstrate that high-power Li-ion batteries would be able to meet
the performance targets for hybrid electric vehicles. Over three-fourths of FCVT’s spending was
directed toward development of high power density batteries for near-term use in hybrid vehicles.
The remainder supported long-term exploratory research to find the high energy density
technologies for a second-generation Li-ion system that would be appropriate for use in electric
vehicles.
The Obama Administration has continued DOE’s Vehicle Technologies research and development
program in addition to promoting battery manufacturing. Current research76 emphasizes reducing
the cost and improving the performance of Li-ion batteries and assessing new materials for
cathodes, such as manganese oxides and iron phosphates. These may eventually offer cheaper and
more stable alternatives to lithium cobalt oxide, contributing to cost reductions for electric
vehicles.
Table 4 shows federal spending on battery and battery-related research and development since
2002. Between 2008 and 2012, federal spending on battery research increased by 86%.
73
Review of the Research Program of the Partnership for a New Generation of Vehicles: Seventh Report, National
Research Council, 2001.
74
The FreedomCAR and Fuel Research Program is centered in the Office of Energy Efficiency and Renewable Energy
(EERE) at the U.S. Department of Energy.
75
“Review of the Research Program of the FreedomCAR and Fuel Partnership,” National Research Council, 2010,
p. 148.
76
In 2012, the U.S. government had 39 different battery and energy storage research programs managed by six
different agencies, including DOE and the Department of Defense. Pike Research, Emerging Battery Technologies,
February 2013, http://innovationews.com/energy/pike-research-new-battery-technologies-will-address-energy-costand-cycle-life-issues/.
Congressional Research Service
20
Battery Manufacturing for Hybrid and Electric Vehicles: Policy Issues
Table 4. Recent Funding for Energy Storage Research
Annual Appropriations, in Millions of Nominal U.S. Dollars
Fiscal Year
Amount
2002
$24.1
2003
21.6
2004
22.3
2005
22.5
2006
24.5
2007
40.9
2008
48.3
2009
69.4
2010
76.2
2011
93.9
2012
89.9
2013a
157.9
Source: U.S. Department of Energy, Office of Energy Efficiency & Renewable Energy (EERE).
a.
FY2013 DOE request.
Advanced Technology Vehicles Manufacturing (ATVM)
Congress established the ATVM program at DOE in 2007 to help raise fuel economy standards
for vehicles and to encourage domestic production of more fuel-efficient cars and light trucks.
ATVM is authorized to award up to $25 billion in loans, funded by a $7.5 billion appropriation to
cover the loan subsidy costs. To date, five companies have received $8.4 billion in loans,
primarily for work on hybrid and electric vehicles: Fisker, Ford, Nissan, Tesla, and the Vehicle
Production Group. The program has $16.6 billion of loan authority remaining. For a discussion of
this program, see CRS Report R42064, The Advanced Technology Vehicles Manufacturing
(ATVM) Loan Program: Status and Issues, by Brent D. Yacobucci and Bill Canis.
Growth Prospects of the U.S. Battery Industry
The U.S. battery industry will grow only as fast as the hybrid and electric vehicle market. There
has been significant interest in new types of vehicles, as shown by the list of current and future
hybrid and electric vehicles in Appendix C. Nearly all automakers are offering some type of
electric vehicle, and a small but dedicated consumer base is increasingly purchasing some form of
electric car or pickup truck. In 2012, more than 434,000 hybrid and more than 52,000 electric
vehicles were sold in the United States. Combined, these partial and total electric vehicles
comprised 3.38% of sales in 2012, up from 2.37% in 2010.
In his first term, President Obama set a goal of having 1 million fully electric vehicles on the road
by 2015. In February 2011, DOE issued a report stating that “leading vehicle manufacturers
Congressional Research Service
21
Battery Manufacturing for Hybrid and Electric Vehicles: Policy Issues
already have plans for cumulative U.S. production capacity of more than 1.2 million electric
vehicles by 2015, according to public announcements and news reports.”77 However, DOE’s past
projections of annual electric vehicle sales have proven optimistic, and the goal of 1 million
electric vehicles sold by 2015 appears ambitious.78 Nonetheless, the Administration seems to
remain committed to its pledge, as the DOE budget for FY2013 states that “the FY 2013 [Vehicle
Technologies program] activities focus on meeting the President’s 2015 electrification goal.”79
In addition to the level of federal support, these other factors will influence the development of a
domestic advanced battery industry:
•
Cost. There is a consensus that the current cost of electric batteries is too high.
Most automakers have not said how much their batteries cost “because of
proprietary information, and battery companies may sell batteries below cost in
order to gain market share.”80 Battery costs are commonly expressed in kilowatt
hours (kWh). Recent reports indicate that Li-ion batteries cost about $500/kWh,
which would mean the 16kWh Volt battery would cost $8,000 and the 24kWh
Leaf battery would cost about $12,000.81 (The 2013 Volt retails for $39,145, and
the 2013 Leaf for $28,100.)82
If production of batteries were to increase substantially, then economies of scale
could drive these costs down, as could research breakthroughs. The U.S.
Advanced Battery Consortium has a mid-term target of $250/kWh and a longerterm goal of $100/kWh.
•
Charging. Electric vehicles will need to be recharged as often as every day,
depending on how far the cars are driven. Current charging applications using
standard 110-volt household current (called Level 1 charging) can take over 12
hours. Homeowners can install more powerful charging stations at home, but a
240-volt charging station (Level 2) would still require a car to charge for six
hours or more. At commercial 440-volt charging stations (Level 3), a driver
would have to leave the vehicle for 30 minutes if its battery is depleted. In
addition, the driving range of an electric vehicle drops if many accessories, such
as air conditioning, are used, potentially requiring more frequent recharging. A
related issue is the availability of charging stations to service electric vehicles.
77
“One Million Electric Vehicles by 2015: February 2011 Status Report,” U.S. Department of Energy, p. 2,
http://www.energy.gov/news/documents/1_Million_Electric_Vehicle_Report_Final.pdf.
78
The report is based on the findings of a Transportation Electrification Panel held in spring 2010. The panel consisted
of experts from several universities, Argonne National Laboratory, Ford Motor Company, and the Center for
Automotive Research; other contributors were from General Motors Company, Nissan Motor Company, EnerDel, and
the Electric Drive Transportation Association. “Plug-in Electric Vehicles: A Practical Plan for Progress, The Report of
an Expert Panel,” School of Public and Environmental Affairs, Indiana University, February 2011, p. 27,
http://www.indiana.edu/~spea/pubs/TEP_combined.pdf.
79
Department of Energy, FY 2013 Congressional Budget Request, Volume 3, February 2012, p. 179.
80
National Research Council, Transitions to Alternative Vehicles and Fuels (Washington, DC: The National
Academies Press, 2013), p. 26.
81
Ibid., p. 26, footnote 13.
82
Prices quoted are 2013 Manufacturers Suggested Retail Prices (MSRP) from their respective corporate websites,
before a $7,500 federal tax credit is applied. http://www.chevrolet.com/volt-electric-car/features-specs/trims.html and
http://www.nissanusa.com/electric-cars/leaf/versions-specs/.
Congressional Research Service
22
Battery Manufacturing for Hybrid and Electric Vehicles: Policy Issues
DOE counted 5,612 charging stations accessible to the public as of March 2013.83
In March 2013, ChargePoint and ECOtality, which together handle about 90% of
U.S. public car charging, announced a joint venture to make access to chargers
easier for motorists.84
•
Range. Many vehicles with IC engines can travel over 350 miles before needing
a refill of gasoline. Vehicles with electric motors have a shorter range, which may
cause some consumers to avoid purchasing them. The U.S. Environmental
Protection Agency (EPA) estimates that the Leaf can travel 73 miles before
recharging, and the Volt, 37 miles. (The Leaf is an all-electric vehicle; the Volt
also has a small gasoline tank that extends its total range to 379 miles.) Ranges
are lower if the heater or air-conditioning is used extensively, as the power for
these accessories is drawn totally from the battery. However, improvements in
regenerative braking systems, which provide power for the vehicle and
simultaneously recharge the battery, may extend range.85
•
Price of gasoline. Sustained high gasoline prices would be expected to spur
stronger demand for fuel-efficient vehicles, including hybrid and electric
vehicles.
•
Improved IC engine technology. A number of low-cost vehicles with IC engines
now tout fuel efficiency of 40 miles per gallon (mpg) or more. They include the
Chevrolet Cruze, Hyundai Elantra, Ford Fiesta, and Ford Focus. The hybrid
Toyota Prius is rated at 51 mpg. The most fuel-efficient cars with IC engines sell
from just under $14,000 to $23,000, well below the current cost of either the Volt
or Leaf, even after the $7,500 federal tax credit.86 Improved fuel efficiency in IC
engines may reduce the attraction of electric vehicles.
•
Subsidies by other governments. The U.S. government is not alone in wanting to
establish a Li-ion battery supply chain. Governments in Japan, South Korea, and
China are providing similar incentives. Japan is currently the leader in
manufacturing of advanced automobile batteries, although its industry is modest
given the low level of global demand.87 South Korea has announced a $12.5
billion investment in the “Battery 2020 Project,” which seeks to make that
country the dominant battery manufacturer in the next decade. China has a
similar national policy and is reportedly investing $15 billion over the next
decade.88
83
Department of Energy, Electric Vehicle Charging Station Locations, http://www.afdc.energy.gov/fuels/
electricity_locations.html.
84
Rebecca Smith, “Hybrid Car Charging Stations Team Up,” Wall Street Journal, March 7, 2013.
85
Regenerative braking systems are used on other hybrids, such as the Toyota Prius and Tesla Roadster, and on electric
bicycles and even trolley cars. “How Regenerative Braking Works,” HowStuffWorks.com,
http://auto.howstuffworks.com/auto-parts/brakes/brake-types/regenerative-braking.htm.
86
“Gas Mileage: 40 MPG is the New 30,” CBSMoneywatch.com, February 7, 2011. The Volt retails for $40,280; the
Leaf for $33,720.
87
Marcy Lowe et al., “Lithium-ion Batteries for Electric Vehicles,” p. 37.
88
“Germany Frets About its Car Industry,” Wall Street Journal, February 28, 2011.
Congressional Research Service
23
Battery Manufacturing for Hybrid and Electric Vehicles: Policy Issues
European manufacturers have generally favored further improvements in IC engines, and there is
a greater acceptance of diesel engine fuel economy technology than in the United States.
Europeans, however, are seemingly beginning to embrace electric vehicles. German Chancellor
Angela Merkel said at a 2011 auto forum that “if we want to remain the world leader in
automobiles, then we have to be at the forefront of electromobility.”89 BMW, Daimler, and
Volkswagen all have electric vehicles ready for market, as shown in Appendix C. But the poor
performance of European auto sales since the end of the recession is having an impact. According
to a New York Times report, BMW has been reemphasizing conventional technology and
downplaying the prospects of electric vehicles.90
Conclusion
Without action by the U.S. government in 2009 through ARRA, there would be little likelihood
that the United States would have any foundation in the Li-ion battery supply chain. Automakers
have been clear that minus those incentives to build plants here, they would have sourced many
cells straight from plants in Asia. As shown in Appendix C, nearly all automakers are offering
electric vehicles, and some of the federal and private investments made since the recession have
increased capacity in the domestic battery supply chain. GM Chairman and CEO Dan Akerson
told an audience in March 2013 that “the era of using electricity to help improve performance and
fuel economy is already here and the trend is only going to grow.”91
Electric vehicles are still in their infancy, and there is a gap between the Administration’s goal of
having 1 million electric vehicles on the road by 2015 and consumer demand for such vehicles.
Sales of both GM’s Volt and Nissan’s Leaf have fallen short of the manufacturers’ initial
forecasts, but when hybrid vehicle sales are added to the mix, vehicles able to run on battery
power are gaining in popularity.
Two major obstacles may stand in the way of the United States creating a significant electric
vehicle industry based on a domestic electric battery supply chain. First, there is intense
international competition, both in vehicles and in the batteries to power them. Whatever their
long-run prospects, electric vehicles and batteries are unlikely to be profitable for manufacturers
in the near term. Some have called for additional government support and public education so that
alternative-vehicle fuel systems such as hybrid and electric vehicles are more readily deployed,
and the benefits of the cleaner environment they may create are more widely understood and
accepted by consumers.92 Given that capacity outstrips current demand for both vehicles and
advanced batteries, the point at which a domestic battery industry could stand on its own, without
federal support, cannot be predicted.
Secondly, to attain broader consumer acceptance and thereby build the scale to drive down
production costs, battery technology needs to advance further to address cost, range and
recharging issues. It remains uncertain that Li-ion batteries will be the ultimate solution. As a
recent academic report asserted:
89
Ibid.
Jack Ewing, “BMW, Hedging Bets on Electric, Stresses Fuel Efficiency,” New York Times, September 18, 2012.
91
Doug Cameron, “GM’s Chief Touts Electric Vehicles,” Wall Street Journal, March 7, 2013.
92
National Research Council, Transitions to Alternative Vehicles and Fuels, pp. 158-159.
90
Congressional Research Service
24
Battery Manufacturing for Hybrid and Electric Vehicles: Policy Issues
Lithium-ion batteries may never have adequate energy density to independently power a
household’s primary multi-purpose vehicle. Although there have been significant
improvements in battery technology since the 1990s, policymakers should consider a large
increase in federal R&D investments into innovative battery chemistries, prototyping and
manufacturing processes.93
Advanced battery manufacturing is still an infant industry whose technology and potential market
remain highly uncertain. Its development in the United States is likely to depend heavily on how
the federal government further addresses the challenges of building a battery supply chain and
promoting advances in battery technologies.
93
“Plug-in Electric Vehicles: A Practical Plan for Progress, The Report of an Expert Panel,” School of Public and
Environmental Affairs, Indiana University, February 2011, p. 66.
Congressional Research Service
25
Battery Manufacturing for Hybrid and Electric Vehicles: Policy Issues
Appendix A. ARRA Awards
Recovery Act Awards for Electric Drive Vehicle Battery and Component Manufacturing Initiative
Applicant
DOE
Award (in
Millions of
Dollars)
Project
Locations
Technology
Cell, Battery, and Materials Manufacturing Facilities
Johnson Controls, Inc.
$299.2
Holland, MI
Lebanon, OR
(Entek)
Production of nickel-cobalt-metal battery cells and
packs, as well as production of battery separators (by
partner Entek) for hybrid and electric vehicles.
A123 Systems, Inc.
$249.1
Romulus, MI
Brownstown,
MI
Manufacturing of nano-iron phosphate cathode
powder and electrode coatings; fabrication of battery
cells and modules; and assembly of complete battery
pack systems for hybrid and electric vehicles.
KD ABG MI, LLC (Dow
Kokam)
$161
Midland, MI
Production of manganese oxide cathode / graphite
lithium-ion batteries for hybrid and electric vehicles.
Compact Power, Inc.
(on behalf of LG Chem,
Ltd.)
$151.4
St. Clair, MI
Pontiac, MI
Holland, MI
Production of lithium-ion polymer battery cells for the
GM Volt using a manganese-based cathode material
and a proprietary separator.
EnerDel, Inc.
$118.5
Indianapolis, IN
Production of lithium-ion cells and packs for hybrid
and electric vehicles. Primary lithium chemistries
include manganese spinel cathode and lithium titanate
anode for high power applications, as well as
manganese spinel cathode and amorphous carbon for
high energy applications.
General Motors
Corporation
$105.9
Brownstown,
MI
Production of high-volume battery packs for the GM
Volt. Cells will be from LG Chem, Ltd. and other cell
providers to be named.
Saft America, Inc.
$95.5
Jacksonville, FL
Production of lithium-ion cells, modules, and battery
packs for industrial and agricultural vehicles and
defense application markets. Primary lithium
chemistries include nickel-cobalt-metal and iron
phosphate.
Exide Technologies
with Axion Power
International
$34.3
Bristol, TN
Columbus, GA
Production of advanced lead-acid batteries, using leadcarbon electrodes for micro and mild hybrid
applications.
East Penn
Manufacturing Co.
$32.5
Lyon Station,
PA
Production of the UltraBattery (lead-acid battery with
a carbon supercapacitor combination) for micro and
mild hybrid applications.
Congressional Research Service
26
Battery Manufacturing for Hybrid and Electric Vehicles: Policy Issues
Recovery Act Awards for Electric Drive Vehicle Battery and Component Manufacturing Initiative
Applicant
DOE
Award (in
Millions of
Dollars)
Project
Locations
Technology
Advanced Battery Supplier Manufacturing Facilities
Celgard, LLC, a
subsidiary of Polypore
$49.2
Charlotte, NC
Aiken, SC
Production of polymer separator material for lithiumion batteries.
Toda America, Inc.
$35
Goose Creek,
SC
Production of nickel-cobalt-metal cathode material for
lithium-ion batteries.
Chemetall Foote Corp.
$28.4
Silver Peak, NV
Kings Mtn., NC
Production of battery-grade lithium carbonate and
lithium hydroxide.
Honeywell International
Inc.
$27.3
Buffalo, NY
Metropolis, IL
Production of electrolyte salt (lithium
hexafluorophosphate (LiPF6)) for lithium-ion batteries.
BASF Catalysts, LLC
$24.6
Elyria, OH
Production of nickel-cobalt-metal cathode material for
lithium-ion batteries.
EnerG2, Inc.
$21
Albany, OR
Production of high energy density nano-carbon for
ultracapacitors.
Novolyte Technologies,
Inc.
$20.6
Zachary, LA
Production of electrolytes for lithium-ion batteries.
FutureFuel Chemical
Company
$12.6
Batesville, AR
Production of high-temperature graphitized precursor
anode material for lithium-ion batteries.
Pyrotek, Inc.
$11.3
Sanborn, NY
Production of carbon powder anode material for
lithium-ion batteries.
Waterbury, CT
Manufacturing of precision aluminum casings for
cylindrical cells.
H&T Waterbury DBA
Bouffard Metal Goods
$5
Advanced Lithium-Ion Battery Recycling Facilities
TOXCO Incorporated
$9.5
Lancaster, OH
Hydrothermal recycling of lithium-ion batteries.
Source: Energy Storage Research and Development, Annual Progress Report 2010, U.S. Department of Energy,
Office of Energy Efficiency and Renewable Energy, January 2011, Appendix A.
Notes: These grants total $1.5 billion out of the $2.4 billion appropriated through ARRA (The remaining $900
million was used for production of electric drive components, installation of charging stations, and training
related to vehicle electrification.)
Congressional Research Service
27
Battery Manufacturing for Hybrid and Electric Vehicles: Policy Issues
Appendix B. Hybrid Vehicle Battery Placement
Figure B-1. Overview of the GM Volt
Source: General Motors; reprinted with permission from General Motors Company.
Note: The Li-ion battery is the T-shaped object that sits below the floor of the car and between the two front
seats.
Congressional Research Service
28
Battery Manufacturing for Hybrid and Electric Vehicles: Policy Issues
Appendix C. Current and Planned Electric and
Hybrid Vehicles in the U. S. Market
Table C-1.Electric and Hybrid Vehicles
Available Plug-In Electric Models
Coda Automotive, Coda Sedan
Ford C-MAX ENERGI
Ford Fusion ENERGI
Ford Focus Electric
Honda Fit EV
Mitsubishi iMiEV
Nissan Leaf
Smart For Two
Tesla Model S
Toyota Prius Plug-In
Toyota RAV-4 EV
Wheego Electric Cars, Inc., Life
Announced Plug-In Models and Concept Cars
Audi A3 e-tron
Audi A4 and Q7 Plug-in Hybrids
BMW i3 and i8
Cadillac ELR
Chevrolet Spark
Fiat 500e
Fisker Atlantic
Infiniti LE
Mercedes - Benz B-Class electric
Mercedes - Benz S-Class Plug-In
Mercedes - Benz SLS AMG Coupé Electric Drive
Mitsubishi Outlander Plug-in
Porsche 918 Spyder PHEV
Porsche Panamera Plug-in Hybrid
Suzuki Swift PHEV
Tesla Model X
Toyota eQ
Volkswagen Golf EV
Volkswagen Passat PHEV
Volvo V60 Plug-In Hybrid
Hybrid Vehicles
Acura - ILX (2013)
Audi - Q5 Hybrid (2013)
BMW - ActiveHybrid 3 (2013)
BMW - ActiveHybrid 5 (2013)
BMW - ActiveHybrid 7 (2013)
BMW - ActiveHybrid 7 (2012)
Buick - LaCrosse Hybrid (2012)
Buick - Regal Hybrid (2012)
Cadillac - Escalade 2WD / AWD (2013)
Cadillac - Escalade Hybrid (2012)
Chevrolet - Silverado 1500 Hybrid (2012)
Chevrolet - Silverado C / K 1500 (2013)
Chevrolet - Tahoe 1500 Hybrid (2012)
Chevrolet - Tahoe 2WD / AWD (2013)
Ford - C-MAX (2013)
Ford - Escape Hybrid FWD/4WD (2012)
Ford - Fusion (2013)
Ford - Fusion Hybrid (2012)
GMC - Sierra 1500 Hybrid (2012)
GMC - Sierra C / K 1500 (2013)
GMC - Sierra C / K 1500 (2013)
GMC - Yukon 1500 Hybrid (2012)
GMC - Yukon 2WD / AWD (2013)
GMC - Yukon Denali 2WD / AWD (2013)
Honda - Civic Hybrid (2012)
Honda - CR-Z Hybrid (2012)
Honda - CRZ (2013)
Honda - Civic (2013)
Congressional Research Service
Kia - Optima Hybrid (2012)
Lexus - CT 200h (2013)
Lexus - CT 200h (2012)
Lexus - ES 300h (2013)
Lexus - GS 450h (2013)
Lexus - GS 450h (2012)
Lexus - HS 250h (2012)
Lexus - LS 600h L (2013)
Lexus - LS 600h L (2012)
Lexus - RX 450h (2013)
Lexus - RX 450h (2012)
Lincoln - MKZ (2013)
Lincoln - MKZ Hybrid (2012)
Mercedes-Benz - S400 (2013)
Mercedes-Benz - S400 Hybrid (2012)
Nissan - Altima Hybrid (2012)
Porsche - Cayenne S Hybrid (2013)
Porsche - Cayenne S Hybrid (2012)
Porsche - Panamera S Hybrid (2013)
Porsche - Panamera S Hybrid (2012)
Toyota - Avalon (2013)
Toyota - Camry (2013)
Toyota - Camry Hybrid (2012)
Toyota - Highlander (2013)
Toyota - Prius C (2013)
Toyota - Prius Hybrid (2012)
Toyota - Prius V (2013)
Volkswagen - Jetta Hybrid (2013)
29
Battery Manufacturing for Hybrid and Electric Vehicles: Policy Issues
Honda - Insight (2013)
Honda - Insight (2012)
Hyundai - Sonata (2013)
Hyundai - Sonata Hybrid (2012)
Infiniti - M35h (2013)
Infiniti - M35h Hybrid (2012)
Kia - Optima (2013)
Volkswagen - Toureg Hybrid (2013)
Toyota - Highlander Hybrid (2012)
Toyota - Prius (2013)
Source: Vehicles available in 2012 and planned for 2013-2014. Electric Drive Transportation Association, March
2013, based on DOE and industry sources.
Author Contact Information
Bill Canis
Specialist in Industrial Organization and Business
[email protected], 7-1568
Congressional Research Service
30
Was this manual useful for you? yes no
Thank you for your participation!

* Your assessment is very important for improving the work of artificial intelligence, which forms the content of this project

Download PDF

advertisement