Battery Cell Offering for Mid-Market Battery Electric Vehicles

Abstract: The rapid transformation of the automotive industry to electric vehicles is putting immense pressure on not just vehicle manufacturers (OEMs), but the entire battery electric vehicle (BEV) supply chain. This includes lithium-ion battery cells, the current state-of-the-art technology for energy storage in BEVs. The technological development within lithium-ion battery cells, which is greatly driven by the needs of vehicle OEMs, has for the past decade included developing more energy dense battery cells to cater for longer driving ranges as well as cheaper cells to enable electrification of more low-cost segments of passenger vehicles. This thesis has studied the automotive mid-market with the purpose of understanding its needs in relation to a lithium-ion battery cell and what battery chemistries that could satisfy its demand. In addition, the thesis has investigated the outlook for a European premium battery cell producer to be competitive on mid-market cells. From interviews with industry and academic experts, combined with a literature review of relevant research, this thesis found that automotive OEMs are expected to demand a lower-cost battery cell for the mid-market in comparison to cells currently developed for premium BEVs. With the price of the cell being the most important aspect, OEMs are willing to sacrifice energy density and fast charging capabilities to reach an acceptable price level – which is expected to be around 60-80 USD/kWh on cell level by 2030. Regarding materials and technology in the battery cell, the most promising path was identified as reducing (or eliminating) the amount of cobalt in the cathode electrode. This in combination with high recycling ambitions and a simplified, large-scale production was found as an efficient way of reaching lower costs while maintaining adequate cell performance. Lastly, for a European premium battery cell producer to be competitive when diversifying its offering to the structurally attractive market of battery cells to mid- market BEVs, a strategic alignment with prior offering was deemed as a critical, long-term success factor. Furthermore, the thesis found that the greatest chances of reaching this will be to target the high-growth market of upper-mid passenger vehicles.