Sodium ion batteries may make EVs far more affordable, says report
The materials, which will be used in such Sodium-ion batteries, can be fabricated in-house. Hence, the batteries would be a live example of ‘Make in India’ and ‘Make for India’.
Sodium-ion batteries are slowly finding their way into the Electric Vehicle (EV) market as lithium-ion batteries have turned out to be too costly for lower-priced EVs due to the difficulty in mining the metal.
With an energy density profile similar to that of lithium iron phosphate or LFP batteries, several companies have started looking at this emerging technology as a cost effective and eco-friendly way of meeting the electrification needs of India.
This could add to the momentum that the Indian auto market has already seen in terms of electrification. India seeing a proliferation of EV models launched by both major automakers as well as start-ups and new entrants.
However, while government subsidies have helped make EVs successful in the scooter segment, in other segments, the high cost of batteries — which account for around 40% of the cost of an electric car — have proven to be a drag in other segments.
Limitations of lithium batteries
Currently, automakers prefer lithium EV batteries due to their high energy density — basically, more stored-up power per kilogram. However, its adverse effect on the environment has always been a limitation.
Other than these two factors, lithium batteries can also be somewhat volatile.
There are two chemistries in lithium-ion batteries – Nickel Manganese Cobalt (NMC) and Lithium Iron Phosphate (LFP) – based on the other materials used in the battery.
“NMC has higher energy density but is more volatile and hence, unsafe. A needle test is used to check battery safety. In this test, a long needle is inserted into the battery, shorting it. This simulates an electric vehicle or EV getting into an accident,” said the analysts from Incred Equities.
“When this test is performed on NMC batteries, they explode. When the same test is applied to LFP batteries, they discharge a noxious gas but don’t explode,” it added.
Also, although the impacts of extracting lithium are considerably lower than for oil and gas, mining lithium does have environmental costs.
Another limitation with the increased need for lithium-ion batteries is the fact that the demand is outstripping supply.
“In 2020, 37% of lithium demand was from EV batteries. It is estimated that by FY2030, 80% of lithium demand will be from EV batteries,” said the analysts.
“Global supply of mined lithium will be inadequate to service demand just from batteries alone. In the absence of mined lithium, lithium-ion batteries would witness an increase in prices. This would make low-end EVs unaffordable for customers and end up stifling the electrification of the transportation sector. Thus, adequate sodium-ion battery production is effectively a prerequisite for the EV boom to continue,” it added.
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