national blueprint for lithium batteries and executive

1U.S. DEPARTMENT OF ENERGY OFFICE OF ENERGY EFFICIENCY & RENEWABLE ENERGYInformation Classification: General

National Blueprint for Lithium Batteries and Executive Order High-Capacity Battery Supply Chain Report

David Howell, Vehicle Technologies OfficeSeptember 14, 2021


Vehicle Technologies Office (VTO)

• Net-zero by 2050 requires dramatic energy efficiency and emissions improvements in vehicle and the overall transportation system

• On-Road Vehicles (Light, Medium, Heavy) account for 71% of GHG emissions,

• Deep Electrification, advanced mobility systems, and Clean Grid provide pathway

• Long Haul freight movement, Off-Road, Air, Marine, Rail (25% of GHGs)

• Likely require Hydrogen and Biofuels and advances in combustion efficiency

Mission: Decarbonize transportation across all modes


Global Expansion of Lithium Battery Demand and Manufacturing Capacity is Projected

Figure 2. Global Li-ion EV Battery Demand Projections. Yan Zhou, David Gohlke, Luke Rush, Jarod Kelly, and Qiang Dai (2021) Lithium-Ion Battery Supply Chain for E-Drive Vehicles in the United States: 2010–2020. Source: Argonne National Laboratory ANL/ESD-21/3.

• Numerous projections indicate a significant acceleration of lithium battery demand and production capacity over the next decade.

• The more recent projections indicate the most rapid acceleration.


Figure 3. Cell manufacturing capacities. Source: “Lithium-Ion Battery Megafactory Assessment”, Benchmark Mineral Intelligence, March 2021.

Global Expansion of Lithium Battery Manufacturing is already Occurring

• Lithium-ion battery cell production already poised to significantly expand by 2025

• A ~4X increase in the U.S.

Information Classification: General

For DOE Internal Use Only

President’s Executive Order 14017: America’s Supply Chains: Supply Chain for High-Capacity Batteries

U.S. Department of Energy Vehicle Technologies Office

Summary of Effort

• Four 100-day Supply Chain Reports

• High-capacity Batteries

• Critical minerals

• Semiconductors

• Pharmaceuticals

• Release date June 8, 2021


Vulnerabilities and Opportunities100 Day High-Capacity Battery Supply Chain Report

Up Stream

Vulnerability: Class I nickel, lithium, and cobalt are the primary supply chain vulnerabilities. Opportunity: Significant demand can be met through domestic lithium sources and alternative

means and secondary sources (e.g., increasing recycling, potentially sourcing from mine waste, identify mineral substitutes, etc.).

Vulnerability: The U.S. has a significant deficit in mineral refining and processing Opportunity: Increasing U.S. processing capacity alone, coupled with recycling, would bolster

the supply chain

Down Stream

Vulnerability: The U.S. lags other markets in lithium battery recycling, with less than 5% of lithium-ion batteries recycled each year.

Opportunity: Strong Federal lithium battery recycling policies can offset the need for new mining of critical materials and offer another domestic source of critical materials.

Mid Stream

Vulnerability: The U.S. has less than 10 percent of global market share for capacity across all major battery components and cell fabrication (with cathode and anode production capacity sorely lacking). The U.S. lags other markets for domestic demand of lithium batteries, primarily driven by EV demand.

Opportunity: Market incentives and Federal funding for materials, cell, and pack manufacturing capacity can create the market conditions to catalyze greater private sector investment in this growing market.


Key Recommendations100 Day High-Capacity Battery Supply Chain Report

Strengthen key battery minerals Supplies

Invest in mineral specific strategies with improved environmental/labor standards

Establish a comprehensive recycling policy to drastically increase battery capture and materials recovery

Promote domestic battery materials, cell, and pack production

Incentivize private investment through federal grant processes, tax credits, Federal loans, and leverage existing programs

Invest in the people and innovations

Increase R&D to meet cost goals and decrease critical material dependence

Develop workforce

Stimulate Demand

Create battery demand by electrifying federal, state, and local purchases of vehicles and busses

“Point of Sale” rebates for consumers and other tax incentives


Critical Federal Investments Planned to Implement EO Recommendations

U.S. Department of Energy Vehicle Technologies Office

Battery Material Processing Grants($3 Billion Total over 5 years)

Lithium-Ion Battery Recycling Prize Competition ($10 Million total)

Electric Drive Vehicle Battery Recycling and Second-Life Applications Program ($200 Million Total over 5 years)

Battery Manufacturing and Recycling Grants ($3 Billion Total over 5 years)

Infrastructure Investment and Jobs Act

Battery processing and manufacturing / battery and critical mineral recycling ($125 Million total)

99Information Classification: GeneralU.S. DEPARTMENT OF ENERGY OFFICE OF ENERGY EFFICIENCY & RENEWABLE ENERGY 9

Electric Vehicle Battery R&D (EERE/VTO)

BY 2030, reduce the cost of EV battery cells to less than $60/kWh, and decrease reliance on critical materials, and decrease charge time to 15 minutes or less.

Key Accomplishments• Battery Cost Reduction: Reduced

the cost of EV lithium-ion battery packs to $133/kWh @ 100k packs per year.

• Lithium-Ion Cathode: Reduced cobalt content by ~50%

• Lithium-Silicon: Doubled cycle and calendar life while improving cell energy by ~50%.

• Lithium Metal: Battery500 Consortium lab-scale cell achieved 350 Wh/kg (+75%) & > 500 cycles (10X increase)

• Launched ReCell R&D Center and the Lithium-Ion Battery Recycling Prize: Seven Phase II winners received a $357,000 cash prize and advance to Pilot Scale Demo.


Vehicle Technologies – FY 2022 Highlights and Major Changes

1.Accelerate and Scale-Up lithium Metal Battery R&D

• Reduce EV battery cell cost by 50% to $60/kWh by 2030 to achieve EV cost parity with ICE vehicles

2.Scale Up and Accelerate No Cobalt, No Nickel Cathode R&D

• Mitigate dependence on critical materials such as cobalt and nickel, reducing battery supply chain concerns by 2030

3.Expand Lithium Battery Recycling R&D• Establish a lithium battery recycling ecosystem to

recover 90% of spent lithium batteries and re-introduce 90% of key materials into the battery supply chain by 2030

Expanded Advance Battery R&D (from $115M to $180M)

Solid State Batteries


National Blueprint for Lithium Batteries

Minerals

Battery Materials

Cells/Packs

Recycling

Innovation

By 2030, the United States and its partners will establish a secure battery materials and technology supply chain that supports long-term U.S. economic competitiveness and job creation, enables decarbonization goals, and

meets national security requirements.


Thank You

national blueprint for lithium batteries and executive

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